§ Mr. MoateTo ask the Secretary of State for Transport (1) what action he intends taking to ensure a more reliable system of forecasting light dues revenue in the future, in view of the unexpected interim increase in September;
(2) to what level it is his objective to reduce the liquid reserves of the general lighthouse fund by March 1992 and by 1993; and what effect the recent increase in light dues will have on the level of the general lighthouse fund's reserves;
(3) what was the state of the liquid reserves of the general lighthouse fund at the financial year end over each of the last five years;
(4) what forecasts of trade through British ports during 1991–92 were used when determining the levels of light dues in April 1991 and September 1991, respectively;
(5) what have been the increases in light dues in both money and real terms, together with the annual percentage increases over the last five years;
(6) what representations he has received from ports and shipping interests regarding the commercial disadvantages imposed on them by the levy of light dues; and what plans he has for the transfer of light dues to central Government funding;
(7) whether the recent change in light dues regulations, whereby only one chargeable voyage is incurred within a 30-day rolling period, has affected the spread of the receipt of revenue through the year; and whether this factor was taken fully into account before the interim increase in light dues was decided upon;
456W(8) what were the reasons for the interim increase in light dues imposed on shipping using British ports in September 1990;
(9) why his Department's methods of forecasting revenue from light dues did not indicate that the 6.7 per cent. annual increase in April would prove insufficient.
§ Mr. McLoughlinMy right hon. Friend regrets the need for the additional increase in light dues from 1 September, which was necessary to secure the original revenue objective for 1991–92 and to protect the viability of the general lighthouse fund. The increase took account of the changes in the basis of payment made in April of this year.
Reforms made to the dues system between April 1989 and April 1991 have added to the difficulties of forecasting annual revenue. The changes introduced this spring posed the greatest uncertainty, but they have assisted payers generally by spreading the dues liability more evenly over the year and, in many cases, relieving the shipowner of some voyage payments altogether. Now that the main reforms have been implemented, I expect revenues to settle to a more predictable pattern. Trade patterns have only a limited bearing on the forecasts, given the basis of dues collection.
On the liquid reserves of the general lighthouse fund, the Department proposed in 1988 an interim objective of reducing these to £10 million (1988 prices) by the end of 1993. The level planned for March 1992 is about £20 million, allowing for the recent increase, but may fall below this. The reserves stood at £21.9 million on 15 October. The lights finance committee will shortly be reviewing what considerations should determine the level of the reserves for 1993 and beyond. At the end of the following financial years the liquid funds stood at:
£ million 1986–87 27.8 1987–88 30.3 1988–89 32.9 1989–90 33.3 1990–91 31.5 The information on light dues increases over the last five years is as follows:
Basic tariff (cargo) (per NRT ton) Total annual revenue (all vessels) Cash 1991–92 prices Cash 1991–92 prices Pence Per cent. pence £ million £ million 1987–88 34.6 45.6 56.1 73.9 1988–89 31.2 -10 38.3 51.3 62.9 1989–90 30.6 -2 35.3 47.1 54.3 1990–91 30.0 -2 321 44.8 47.9 1991–92 April 32.0 + 6.7 32.0 145.0 145.0 September 35.0 + 9.4 35.0 1 Estimate. Note: The tariff comparisons do not fully reflect reforms to the regulations implemented over the last three years.
Port and shipping interests have frequently made representations that the cost of navigational aids should be borne by the Exchequer, but the Government have no plans to make these a charge on the taxpayer.