WESTMINSTER RECEPTION FOR PORT RATES ISSUES
General, 10 Dec 2008
Reception to be hosted in Parliament to Discuss Port Rates Issue between MPs and Affected Businesses
A reception to discuss the problems caused by the current port rates issue is to be held at the House of Commons on Monday 15 December.
Claire Curtis-Thomas, MP for Crosby, who is sponsoring the event said: "This whole issue is of great concern to the many MPs and constituent businesses affected not just by the ongoing liability but the huge backdated rates bills these companies now face. Liverpool has been one of the hardest hit port areas, along with the Humber, and it threatens many businesses and jobs at a time when we can ill afford to lose either. "
"The reception I am sponsoring will give a chance to MPs, affected businesses and local authority leaders to discuss the situation in detail, face to face, and put forward a workable solution that guarantees continuity of businesses, employment and government revenue."
The reception is a timely reminder to Government, following the Pre Budget Report Announcement by chancellor Alistair Darling, that Government have made provision for the backdated rates to be paid over the next eight years.
Kieran Hall, Managing Director of Denholm Handling and member of the Mersey Dock Rating Group said, "Whilst we recognise that the Government is seeking to help businesses by spreading out the backdated payments over the next eight years, simple business accounting reasons mean this just won't work. Once the rates bill arrives, the liability has to be recorded on the company's balance sheet. If the bill is greater than the company reserves, then the company becomes insolvent regardless of when the liability has to be paid. This is the likely scenario for most of the 678 companies affected"
He added: "Those companies that do survive will find their balance sheets are adversely affected and it may well present them with difficulties in gaining additional finance for expansion in an already difficult lending environment, as lenders will see their increased liabilities as an increased risk."
"This was pointed out to ministers some three weeks before the PBR, so we were somewhat surprised that that the Government went ahead and announced a system they had been told was unworkable," Mr Hall added.
David Pendleton, Business Development Director for Mersey Maritime said, "We are grateful for Mrs Curtis-Thomas' help in organising this reception. It help us further raise the profile of a very serious issue facing a large number of businesses in what is a strategically important industry to the UK. The basic fact is that these businesses should not have this liability in the first place and should now be working with the VOA in preparing their businesses for the 2010 rate book and not fighting the threat of insolvency."
ends
Notes to Editors
The Maritime Sector is one of the key growth sectors which make up the Merseyside Sector Development Programme (SDP). These sectors are identified and supported by The Mersey Partnership, Government Office North West and the Northwest Regional Development Agency as vital for the future economic growth of the Liverpool City Region.
For further information/Interviews, please contact:
David Pendleton/Annette Parker
Mersey Maritime
Tel: 0151 647 4747
Mobile: 07919 558 396/07919 558 397
Forthcoming Maritime Related Events 02/02/2010 - 'FACE-2-FACE'
