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Port Business Rates

The Treasury Committee made the point well that the Valuation Office Agency, which is a Government agency, has let down the ports and the companies badly. Even at this late stage, it has a duty to ensure that everyone is asked to pay on the basis of a fair rateable value that is comparable to others. It should be borne in mind that some companies in the ports have always paid business rates in the normal way, and it is important that all the companies should have a level playing field. My experience is that a number of companies have been given rateable values that are completely out of kilter with the businesses that they run and the properties that they use. Paying is putting them into immediate difficulties, but they face the further long-term unfairness of continuing to be unfairly rated compared with some of their competitors. Scotline's chief executive, Peter Millat, said in a press statement issued after the company went into liquidation that if the revaluation had been more timely the company would not have folded and no jobs would have been lost. It is truly unbelievable that the agency should have taken so long when so much was at stake and that, despite many warnings about the declining position, the Government should have allowed it to happen on their watch. The problem affects not only Scotline; other companies are hanging on, waiting for something to happen or for sensible revaluations to reduce their liabilities. I spoke earlier about East Riding of Yorkshire council, but I am aware also of the efforts that have been made by Hull city council and North East Lincolnshire council, which cover all the Humber ports—although I realise that the problem affects not only them. They have held off as long as possible and have tried to do the best that they can to support the industries in their areas, but they, too, are now under pressure. To put this into context, we should consider how much it is costing the UK economy. I was grateful to receive a briefing before the debate from the Federation of Small Businesses. It estimates that those companies are being chased for more than £33 million and that 150,000 jobs in UK ports are in jeopardy as a result. I turn to what we might hope and expect my hon. Friend the Minister to do. In some respects, I feel sorry for her, as it all happened before she took over her present brief. However, as a colleague once said to me, "That's why you get a car." She comes from the Department for Communities and Local Government, which has offered the limited assistance that we have so far secured. I guess that she shares my despair at the way the agency has acted and how the promise of a fast-track procedure simply raises a laugh whenever it is mentioned locally. I have had private and public meetings about this, but we should be candid about it: DCLG would like to do more but cannot persuade the Treasury. I mean no offence to my hon. Friend the Minister, but I took the matter up directly with the Chancellor last week. I explained to him the difficulties that we were having and my belief—I do not think that I am wrong—that that is where the block is to be found. It is fair to say that my right hon. Friend was unaware of the reality of what had happened to Scotline, and especially about the cut in liability made after it went out of business. He offered to speak to his officials, and I sincerely hope that that will enable the Government to move matters forward. Too many jobs are at risk to do nothing. My personal view is that retrospective rates should be cancelled; as companies cannot get their money back from their landlords, they will be paying twice. The agency should be made to finish all revaluations as an immediate priority, and councils should impose no financial penalties in respect of non-collection during this period, which should have a short but fixed time scale. If companies still have outstanding liabilities, there needs to be a deal to ensure that they cannot be placed in a position where they could go out of business through no fault of their own. The problem has attracted strong support from all parties. I note from today's Grimsby Telegraph that Lord Bates, Opposition spokesman for the DCLG in the other place, has issued a statement saying that the Conservative party is in favour of a moratorium. Although that does not cancel the retrospection, it nevertheless offers a breathing space while rational decisions are made. At the very least, it would be a sensible start. The Government should respond in a similar way, content in the knowledge that other political parties would support them. The Government need to act as soon as possible. The clock is ticking; companies are folding; jobs are going. The Minister and her colleagues need to deliver. The problem is caused by their actions and their agency, and they need to resolve it.