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Port Business Rates

It is a delight to speak under your chairmanship, Mr. Benton. I am grateful for the opportunity to have this short debate on port business rates, but appalled by the fact that it is still necessary to do so. To outline the position quickly, Parliament decided in 2003 that all companies operating at our ports would pay business rates in the same way as other businesses. Previously, some of them had paid an unspecified amount, in lieu of rates, in the fees to their landlords, such as Associated British Ports in Goole. That change was to begin in 2005. That in itself was not particularly controversial, and as I have often said, none of the affected companies that I have spoken to have ever said that they are not willing to pay their taxes in the same way as others. However, none of them, and I would guess none of us, foresaw what was to come. The Valuation Office Agency failed to assess the companies before 2005, and by the time that the liabilities were beginning to appear, it was 2008 and not only were rate bills due but there was backdating to 2005. During that period, of course, the companies had continued to pay, via their fees to their landlords, and it is accepted by all that there is no legal recourse for the recovery of that money. Indeed, Associated British Ports made it clear in a meeting with me that it had no intention of making any repayments, as its own overall liability had been increased, even if that was not true specifically at Goole. Companies had to pay rates for a second time for years for which the accounts had been signed off, and there was a new liability to be paid as well. In addition, there was huge concern that the rateable values were wrong and the figures were much too high. That was raised with the Government at the time by several hon. Members who represent ports. I am delighted that my hon. Friend the Member for Cleethorpes (Shona McIsaac) is present for the debate, along with the right hon. Member for Haltemprice and Howden (David Davis)—whom I regard as a friend on these occasions and who continues to share an interest in this matter and, indeed, in the port of Goole, which borders his constituency. Many of us made the point at that time that we were deeply concerned about where the situation was heading. The Government offered some assistance. Their response was to announce that the historic debt could be paid, interest-free, over an eight-year period and that there would be a fast-track appeal process, through the Valuation Office Agency, when there was doubt whether the rateable value was correct. There is much more I could say about that, but this is a relatively short debate. I want only to say that that offer was not as helpful as it sounds.