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10:00am Friday 12th June 2009 in News
By Gareth Lewis, Business Editor
PLANS to hit port firms in Southampton with a £3.6m back taxes bill may now be scrapped after a crucial House of Lords decision.
Just hours after it emerged the Government was to hike shipping taxes, peers threw beleaguered port firms a lifeline. They voted against backdating rates.
The Lords voted to amend a Bill in a step which could stop the Government making firms bear the burden of its own errors in calculating the rates.
Although the amendment, which was passed by 184 to 124 votes, still faces a number of obstacles before becoming law, it was hailed as a “positive step” for port businesses.
City bosses were anxiously waiting to see how the 24 affected Southampton companies will cope with the unexpected extra debt as recession hits the UK.
Companies from car carriers to cargo handlers are faced with paying the huge sum, totalling £3,610,788.12. It is what the taxman said was now owed for the period stretching back to 2005 after the Government changed the way the way rates are calculated. It is over and above any money already paid before the changes and does not include docks owner ABP’s rates, which total about £9.8m, a sum the company claims has nearly doubled in just four years.
Nationally, the changes are reckoned to cost business £33m and put 150,000 jobs at risk.
Port bosses have branded the steep rise “unfair”, while city politicians attacked its timing, coming just as firms are feeling the pinch of the economic slowdown.
A spokesman for docks owner ABP declined to comment due to uncertainty about the impact of the Lords’ decision.
Roger Thornton of shipping agents Wainwrights said: “It is good news for the port industry in general. It is ironic it comes in the same 24 hour period as the appalling news about light dues.
“Clearly there’s a lot of port operators around the country and including some in Southampton that this is welcome news for. It does have to go for a third reading but it is a positive step.”
Comments(13)
southy
says...
11:53am Fri 12 Jun 09
IanRRR
says...
2:29pm Fri 12 Jun 09
southy wrote:Who cares, so long as it stops the docks losing the trade that puts money in our pockets in the first place. Well done, you Lords!
well some one going to pay for this lost off tax. probley end up coming out off the ordinary people pockets.
Ben Doone
says...
2:42pm Fri 12 Jun 09
southy wrote:southy
well some one going to pay for this lost off tax. probley end up coming out off the ordinary people pockets.
southy
says...
3:06pm Fri 12 Jun 09
Shame889
says...
3:26pm Fri 12 Jun 09
southy wrote:You do realise that income tax paid by individuals is far from the only revenue the government has, right?
well some one going to pay for this lost off tax. probley end up coming out off the ordinary people pockets.
Ben Doone
says...
4:29pm Fri 12 Jun 09
southy wrote:Southy
yes ben it all ways comes back on the ordinary people. dont matter if a company or groups of companys have a massive profits sitting in there bank accounts that not going to be used at any time soon they all way past it on to the next one down, insted off saying for the good off the ecommony lets soak it up so the buck stops there. no they will pass it on and that even go's for governments.
southy
says...
7:58pm Fri 12 Jun 09
southy
says...
8:57pm Fri 12 Jun 09
Ben Doone
says...
11:26am Sat 13 Jun 09
southy wrote:Southy
no ben capitalism only benifits the well off, the not so well off loses out all the time. yes its fair enough company to make a profit, but a lot off them are to greedy, then they wonder why people stop buying there products. or what ever they got to offer. a capitalist system only works for so many years then crashes each time its bigger than the last one, then it gos so far you hit the big one and out off the **** comes one off the 2 ex-streams. we seeing the start off this all ready. the ordinary people will only go so far then they start to kick back.
southy
says...
3:54pm Sat 13 Jun 09
Doctor Drutta
says...
12:15am Mon 15 Jun 09
veracity
says...
9:39am Mon 15 Jun 09
southy wrote:suppoze i will have to comment on your lkatest ramblings
you right about capitalism has been a round a very long time its the oldest ecomony going, a socialist ecomony is the newest, and it seems to work better than a capitlist ecomony, you take the difference between china and russia both was full communist countrys, russia went capitalist while china went socalist. russia went for the worse, they sold off off there state own industry they have now got high employment, state corruption, poverty is on a alarming rise, crime in also going up fast, so much so some off the old states off russia that broke away that they are returning back to communist by the voting system. then you look at china who kept there state owned nationalize industry, low unemployment, poverty thats is still falling, crime also falling, state corruption is very low when you compear it with a capitalist world. the wealth off this country is shared out. capitalist system dont the money stays with a few.
the ordinary people are those at the bottom those who will only get a state pension or those that will only get a small private pension, like your self, commercial greed can amount to any thing has long it for them selfs. they dont care about any one else, most dont even care about what will happen to the great grand kids, for them its here and now and dont care about tomorrow. take abp look how much profit they make after the share holders got there part, and the tax man got there part, and the bit put to one side for development, they still want more they cut jobs, when they really should be thinking well we have this spare cash lets employ a few more people and share it more fairly and make the place run smother and faster.
you know the chineeze can turn round a ship in 2/3 of the time it takes here, all because they would prefere to have more people working on the quay side and ships than in the offices. the uk has to many cheifs and not enough indains.
just look at my self, i earned my money, me not being greedy person so i psss it on to the next person in line to give him a chance to earn his money, but still there if needed to cover or explain how to do some thing. whats the point in earning millions off pounds your not going to spend it in your life time.
we are only better off because in what our parents and grand parents belive in and what they done, and that was socialist thinking, if it was't for them in like forming the trade unions and true labour party, not like what we had blair and brown they are both torys. most people off today have forgotten thst and where they really came from, and thats all because since the 1980's they had greed brain washed into them. they for gotten how to share, and its this we need to get back to before its to late because next time it will not be a recession it will be a full blown depression worse than the one in the 1920's
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Linesman says...
10:19am Fri 12 Jun 09
Lords!
Could there be a conflict of interest?
Do they have to declare an interest when they vote?