Radical legislation at ports could see 3,000 jobs lost

Oct 1 2008 by Barry Turnbull, Liverpool Daily Post

THE Government’s move to revamp the business rating system for ports could cost 3,000 Merseyside jobs, it has been estimated.

It has also been warned businesses with a combined turnover of £400m are in danger of becoming insolvent, according to a report from local port lobby group Mersey Dock Rating Group.

The firms most at risk employ 3,000 staff, the port group warns.

Merseyside is just one of 55 UK ports affected by radical changes to legislation. Nationally, business leaders are predicting the potential loss of businesses worth up to £20bn and job losses of over 150,000.

The Mersey Dock Rating Group has been formed by local port based firms campaigning for a change to the legislation. The group represents 70 local businesses affected by the new system.

David Pendleton, business development director at local ports industry association Mersey Maritime, said: “This move is a very real threat at a time when Merseyside’s maritime sector is undergoing a significant revival. While everyone understands the need to pay fair rates, we are appealing to the Government to withdraw the requirement for backdated bills, which could devastate many smaller operators.”

Kieran Hall, managing director of Birkenhead-based Denholm Handling, said: “We have been trading here for 20 years and at this site we turnover £2m and employ 22 people. Not only that, but our wider business provides £2m haulage income to subcontractors and we spend £300,000 a year on local hired labour. We are just one of 70 businesses affected, which shows the potential ripple effect on the local economy from these demands. I have spoken to several established companies which believe they may have no option but to close.”

Ken Kirk is managing director of port operations company, Stanton Grove, which turns over £7m and employs 50 people at Seaforth. He said: “The delay in implementing these plans means that some businesses are likely to receive rates demands that are higher than their annual turnover.

“There is no reasonable way that people could plan for these retrospective bills and they should be scrapped. As well as the threat to businesses, this could drive investment away from the port and from Merseyside.”

The Mersey Dock Rating Group has been given the support of Transport Select Committee chairman and local Liverpool Riverside MP, Louise Ellman, who has condemned the backdated rates demands as “grossly unfair. Ms Ellman said: “I hope we can see some common sense applied here. This is an important issue and the consequences could be devastating.”

The group has also appealed to local authorities to avoid issuing new rates bills until the situation has been addressed, as once bills are received, company directors may be forced to close down rather than trade insolvently.

Liverpool City Council deputy leader, Flo Clucas, has agreed to work with the group‘Financial crisis is worst I’ve seen’ says ex-president.

According to Mr Pendleton, the group also wants to find out why consultation with the affected businesses has not taken place.

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