Port fees may rise 12 p.c.

Press, 26 July 1986, Page 3

Port fees may rise 12 p.c.

Port charges at Lyttelton could rise 12 per cent when the Government’s plans to tax the Lyttelton Harbour Board’s land and income come into effect in April. The Harbour Board’s general manager, Mr lan Brokenshire, said the tax could boost wharf charges 40c a tonne unless expenses were reduced or trade through the port was increased. Spending had already been cut as much as possible, he said, and the prospects for Increased trade were gloomy because of the downturn In shipping throughout the world. “Quite obviously in these circumstances the imposition of taxation will require the Harbour Board to review its level of charges,” he said. The board would have to pay about $160,000 in-

land tax when it was implemented. However, income tax would be a bigger problem if the board could not write off interest paid on loans for capital projects as an expense, before tax liability was decided, he said. At present the board needed to make a profit of $1 million a year to make sufficient loan repayments. The profit would have to double to pay income tax and repay loans if the board could not write off interest charges owed, said Mr Brokenshire. Submissions were being made to the Government about the impact of the proposed tax and talks were being held with Inland Revenue Department representatives to establish the circumstances for tax liability.