MERCHANT SHIPPING (LIGHT DUES) (AMENDMENT)
REGULATIONS 2009 (SI 2009/1371)
Summary: These Regulations propose a significant
rise, amounting to an increase of 35% over 2 years, in the tonnage
levy made on ships that is used to fund lighthouses. Although
this is the first increase since 1993, Lord Berkeley has written
to the Committee to express the shipping industry's concerns about
so large an increase in the levy in the present economic climate,
in particular about the potential impact on UK ports, as the charges
may encourage ships to use foreign ports instead. Lord Berkeley
is also sponsor of a Private Member's Bill, the Marine Navigation
Aids Bill, which proposes that the UK's lighthouses should be
managed separately from the Irish Lights. The Minister has undertaken
to conduct a review of the way the service is funded with his
Irish counterpart.[1]
These Regulations are drawn to the special attention
of the House on the ground that they give rise to issues of public
policy likely to be of interest to the House.
1. The Department for Transport (DfT) has laid
these Regulations under section 205(5) of the Merchant Shipping
Act 1995, together with an Explanatory Memorandum (EM) and Impact
Assessment (IA).
2. The running of the General Lighthouse Authorities
and the maintenance of the aids to navigation under their management
in the UK and Eire is funded by a tonnage levy on ships using
UK and Irish ports. These Regulations propose a significant increase
in the amount and frequency of the tonnage levy made on ships,
amounting to an increase of 35% over 2 years. However this should
be considered against the background of four previous cuts in
the rate, making this the first increase since 1993. As the fund
was previously in surplus, DfT, at the request of the industry,
lowered the rates by 10% three years ago. Now, due to falling
investment income and the unfavourable exchange rate of the pound
against the Euro, the level of the fund has fallen to unsustainable
levels and an increase in charge must be made to maintain the
service.
3. The shipping industry has concerns about so
large an increase in the levy in the present economic climate,
in particular about the potential impact on UK ports, as the charges
may encourage ships to use foreign ports instead. Lord Berkeley,
has written to the Committee to explain industry's concerns (see
Appendix). Lord Berkeley is also sponsor of a Private Member's
Bill, the Marine Navigation Aids Bill, which proposes that the
UK's lighthouses should be managed separately from the Irish Lights.
The Minister has undertaken to conduct a review of the way the
service is funded with his Irish counterpart.[2]
During an adjournment debate on 2 June he gave a report on progress
(an extract is attached at the Appendix).
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