Shipowners outraged by light dues hike

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Janet Porter - Tuesday 24 February 2009

 

SHIPOWNERS have reacted with fury to a planned rise in light dues that would lift the maximum charge for calling at a UK port to £20,500 for the biggest vessels, an increase of almost 70%, 
The Department for Transport is proposing a hike of 6 pence per net registered to n to 41 pence in light dues that cover the cost of providing navigational aids around the British Isles. 
Shipping companies that have been lobbying hard for a cut or freeze in the levy were nevertheless braced for a 4 pence upwards adjustment, but were stung to hear of a possible 6 pence increase from July 1. 
“This is a catastrophic blow for shipping at a very difficult time for the industry,” Independent Light Dues Forum spokesman Mark Watts said today. 
“The damage to Britain’s maritime interests will last for many years to come.” 
Repercussions would spread beyond the shipping industry to the wider economy, with a threat to jobs, he continued. 
This setback comes at a time when the entire UK maritime community is calling for a more coordinated approach to shipping at government level, particularly after the damage caused by continued uncertainty over tonnage tax, and the decision to impose a £30,000 levy on non-domiciled residents that has already driven some shipowners away from Britain. 
Chamber of Shipping president Martin Watson also recently expressed concern over the threat to UK shipping services and fleet deployment of high light dues. 
Moves to raise the levy come at a time when Singapore has promised to cut the fee because depressed shipping industry conditions, and is also setting out its stall as a global maritime hub to rival London. 
Explaining its case for an increase, the DfT said the General Lighthouse Fund would incur an estimated shortfall of £21m next year, while a recent decline in its investment portfolio had reduced the capacity of the fund to defer or spread increases in light dues. 
As well as the proposed increase that would only be confirmed after consultation, the DfT also wants to lift the tonnage cap from 35,000 to 50,000 tonnes. That move would hoist the maximum charge per call from £12,500 at the moment to £20,500. 
Furthermore, the voyage cap will be raised from seven to nine voyages, a move that will particularly affect ferries. 
The announcement came just shortly before a private members bill is due to be finalised today, that will call for both an end to the controversial subsidy to Ireland towards the cost of navigational aids, and an inquiry into the three lighthouse authorities that cover the British Isles, and which shipowners want to see amalgamated. Lord Tony Berkeley has agreed to sponsor the Bill. 
The ILDF argues that merging Trinity House, which is responsible for navigational aids around the coasts of England and Wales; the Northern Lighthouse Board for Scotland; and the Commissioners of Irish Lights, would generate sufficient savings to dispense with the need for higher light dues. 
In a statement on the planned amendment to light dues, the DfT said it would “continue negotiations with the Irish government aimed at reaching a new lasting agreement for funding the work of the Commissioners of Irish Lights in providing a whole of Ireland aids to navigation.” 
The subsidy to Ireland is considered unreasonable even by those who support the continued independence of Trinity House and the Scottish board.