Southampton's business leaders condemn port tax rise

The Daily Echo has been campaigning against the proposed increase in the tax, known as light dues, which finishes its key consultation phase on Monday.

Business leaders from across Hampshire have called on the Government to abandon the plan and are now hoping their voices have been heard.

It is feared that if the proposals are given the green light, shipping companies will cut the number of visits to Southampton, threatening the futures of many of the 12,000 people in the region reliant on the port for work.

Docks bosses have said it feels like the industry is “under attack”

from the Government and warned major shipping lines could switch to cheaper foreign rivals.

Light dues fund the country’s network of lighthouses and ships are taxed by weight. Mr Fitzpatrick is proposing the rate climb from 35p a net tonne to 41p, and the level which the rate is payable rise from 35,000 tonnes to 50,000 tonnes. Finally, he suggests ships be liable for the dues on the first nine calls per year as opposed to the first seven currently.

Almost all the Southampton cruise industry will be liable for the full increase with ships such as Royal Caribbean’s Freedom of the Seas and Cunard’s Queen Mary 2 comfortably big enough and frequent UK callers. Most container ships and vehicle handling vessels – Southampton’s other two main business sectors, would also incur the full rise.

Anger has also been fuelled by revelations that UK light dues pay £16m towards Ireland’s lighthouses, while on the Continent, light dues don’t exist at all.

Doug Morrison, port director, said: “It’s a major issue for us.

The whole of the industry is up in arms. The big ships would go to the Continent and only the small ships would come to the UK.

“To attack the industry and that’s what this is looking like, is nonsensical.”