Perfect storm

Nose-to-the-grindstone civil servants have dutifully prodded, probed and consequently revalued business rates for port operators with little reference to the changing financial climate. Had they raised their collective heads but once in the last year they would surely have noticed the extraordinary operating environment for ports around the world, not least in the UK.

With lines consolidating routes, bulk ships heading for lay-up and cargo volumes taking a battering, these bills pose a very real threat to the UK’s port’s industry.

P&O in Hull has been hit with a backdated bill for £5m, a whopping 500% increase in rates, while Rix Petroleum also in Hull faces arrears of approximately £1m and an on-going annual bill of over £300,000, which will almost certainly lead to job losses.

Our special news feature on Page 17 explains the chain of events that led to the issuing of the first tranche of backdated bills in October, with many more threatened.

While the whole sorry issue came to a head in a public inquiry last month – putting a virtual brake on the exercise until ministers are properly consulted – its smacks of closing the door after the horse has bolted.

This whole exercise clearly demonstrates the lack of value placed on the very important contribution that port businesses make to a nation’s economy. That’s not just a monetary value, but a people value as well. Mersey Maritime puts 150,000 jobs at risk nationally combined with the potential loss of business worth up to £20bn under this backdated rates debacle. Not figures to sneeze at.

Had there been a little, dare I say, joined up thinking up on high this sorry affair might have been avoided. After all, it’s not that UK port businesses object to rate rises, but they rightly object to extortionate bills that cannot be paid in one tax year. You can only set aside so much for contingency; and honestly now how can you plan for a ‘contingency’ that totals half your annual turnover? It’s simple, you can’t.