MEPs weigh in on Port Rating row (Colne Valley Liberal Democrats)

Colne Valley Liberal Democrats <info@colnevalleylibdems.org.uk>

MEPs weigh in on Port Rating row

January 16, 2009 12:50 PM
Originally published by Diana Wallis MEP

Immingham The three Liberal Democrat MEPs representing the northern regions of England have written to John Healey MP asking for a rethink on the controversial plans for an increase in rates for ports in the region.

The local Liberal Democrat MEP, Diana Wallis, whose constituency includes Hull, Grimsby, Immingham and other ports, has been joined by fellow Lib Dem MEPs Chris Davies, (North West) and Fiona Hall (North East) in writing to John Healey.

In the letter, the MEPs point out that trade from the ports could be lost to continental ports such as Rotterdam and that the rate hike could also move freight from sea to air, making global warming worse.

Diana Wallis said, "Competition between ports for European trade is good but the UK Government have just imposed an extra cost on British ports that their continental cousins won't have to pay. At a time when the credit crunch is making life difficult for small businesses, the Government should not be adding to the burden."

Andrew Finfer, the legal adviser to the businesses campaigning for fair port rates, said:

"I am grateful to the three MEPs for their letter John Healey in support of the campaign to achieve a fair and equitable solution to the immediate problems facing port occupiers."

Text of letter:

To: John Healey MP, Minister of State (Local Government)

Re: The rating revaluation of statutory ports in the United Kingdom

As the Liberal Democrat MEPs representing the three northern regions of England we are writing to give our support to those who oppose the rating revaluation of statutory ports in the United Kingdom and would ask you to reconsider this. We are concerned that the impact of this revaluation will particularly threaten the competiveness of the ports in or regions of the North-east, the North-West and Yorkshire & the Humber.

Two issues in particular concern us.

Firstly, we believe that the rating revaluation will bring about extra costs and thus an increasing burden for ports on the east coast of England. We believe these rising costs will see competition being lost to other EU ports which are in direct competition, not least to Rotterdam. The evidence provided by research into maritime logistics is that port cargo handling charges is one of the key determinants of competitiveness.

Secondly, we are concerned that higher charges in UK ports will force more and more goods to be transported by air. International air freight traffic has increased substantially over the past few years particularly in the transportation of foodstuffs - air miles increased by 31 per cent in 2006 compared with the previous year and has grown by 37 per cent since 1992. Air freight is the highest emitter of CO2 per tonne of food and is responsible for 11 per cent of emissions.

Given these particular issues we would ask you to strongly reconsider the rating revaluation of statutory ports exercise.

Yours sincerely,

Chris Davies MEP, Liberal Democrat, North West

Fiona Hall MEP, Liberal Democrat, North East

Diana Wallis MEP, Liberal Democrat, Yorkshire & the Humber