A BUSINESS leader has slammed Government plans to impose massive tax increases on ships coming into the Port of Southampton.

Some of the port’s biggest customers could see their tax bills soar by 67 percent and it is feared many may defect to a cheaper foreign rival.

This comes after changes to the way port rates are collected have left 25 of the city’s port firms with a tax bill worth of £3.75m.

The controversial plans have been attacked by Sally Lynskey, Business Southampton boss, who put the port at the centre of a summit about economic growth in the area.

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She said: “It is incredible that the Government would consider these proposals.

“It is quite possible that some shipping companies may switch to other European ports in light of these changes.

“The timing couldn’t be worse and could cause economic turmoil.”

She went on to say the Government should reconsider its plans and ensure that Southampton was on a level playing field with other European ports.

She will also be lobbying Labour MP for Southampton Test Alan Whitehead who sits on Port-City Futures Southampton committee with her.

The latest bombshell has sparked fears of further job losses among the 12,000 working in the ailing industry with the global recession costing the waterfront half its car handling business and container volumes down at least ten per cent.

Under the new proposals drawn up by Transport Minister Jim Fitzpatrick major Southampton client CMA CGM would face a tax hike of £1.5m a year and the port’s biggest car handling firm Wallennius Wilhelmsen would be hit for an extra £300,000.

It is feared companies may decide to use rival ports like Rotterdam, in Holland, or Le Harve, in France, only sending cheaper “feeder” vessels to Southampton.

This would mean a rise in the cost of transporting goods into the UK and port boss Doug Morrison told the Daily Echo this would mean job losses.

He went on to say the increase in tax, known as light dues, seemed to be an attack on the industry.

The new proposals would see the tax rate rise from 35p a net tonne to 41p and the cap up to which the rate is payable rise from 35,000 tonnes to 50,000.