BIFA supports Cameron on UK port rates solution

Peter Quantrill, director general of BIFA said: ‘Cameron met with affected firms that, like many BIFA members, will have to pay heavily for this disastrous tax change. He described it as an inept policy that will lead to thousands of jobs being lost and called on Brown to rescind it. We agree that the government must use the Finance Bill or the Business Rates Supplements Bill currently before Parliament to stop this iniquitous tax imposition that can only harm our country at a time when it is looking for a way out of this economic downturn.’

Solicitor Andrew Finfer, a partner at Schofield Sweeney solicitors in Yorkshire, working on behalf of the Humber Docks and Mersey Dock Rating Groups comes out in favour of keeping the 2005 levels until the re-evaluation in 2010. ‘In the meantime, the VOA can sort out the mess it has caused by completing the rating revaluation in time for 2010.’ Mr Finfer adds.

The proposed solution offers two key benefits. It will immediately remove the threat of insolvency from hundreds of port businesses and it will save the Government an estimated £94 million.

As a result of the VOA’s actions, businesses in the UK’s 55 statutory ports are facing backdated rates demands totaling millions of pounds. Some individual operators, who have already received backdated demands, are facing bills of several million pounds, which it is impossible for them to pay and which will lead to certain closure of their businesses.

Leaders of businesses based in British ports estimate that, unless the ratings crisis is tackled by the Government, the industry faces the potential loss of business worth up to £20 billion and job losses of over 150,000.

Tony Woolrich, managing director of NW Trading Ltd, the company hosting the meeting said, ‘David Cameron’s visit here today indicates that, at last, the problem facing port based businesses is being taken seriously at the highest levels. We are grateful to Mr Cameron and the many other MPs from all parties who have given their time and their backing to this cause. There is now a real political will to implement an equitable solution.’

The Secretary of State, Hazel Blears, has the ability to adopt this solution and remove the current, unworkable situation which was implemented in the Pre Budget Report last November. The Humber Docks and Mersey Dock Rating Groups are urging the Government to accept their proposal and undo the mistakes that have already been made, which are causing unbearable financial pressure to port based businesses.

David Pendleton, business development director at Mersey Maritime Ltd said, ‘Following discussions with the Treasury, the Department for Communities and Local Government, port operators and port occupiers, we believe that this solution will provide Government with the revenue it requires while safeguarding businesses and much needed jobs during this very difficult time. The port industry is a vital economic driver not only to the Merseyside economy but also to the national economy and David Cameron’s visit to support the port related industries on the issue of port rates clearly demonstrates that he recognises this too.’