Port tariff rise deferred to July 1 [1]
Monday, May 2, 2005 - 10:00. Updated on Saturday, March 15, 2014 - 19:29.
A 25 per cent increase in Nuku'alofa's port tariffs due to start on April 1 has been deferred until July 1 by the Nuku'alofa Port Authority.
The change of heart came about following a meeting between representatives of the Tonga Port Agents Stevedores and Shipowners Association and Hon. Dr Feleti Sevele, the Minister of Labour, Commerce and Industries.
The Association believed that increased tariffs would impact directly on the consumer prices, and may cause cruise ships to reconsider calling into Tonga.
Peter. Corbett, the Secretary of the Stevedores and Ship-owners Association, pointed out that a 25 per cent increase in the cruise vessel tariff would mean a rise from $2000 to $5000 per vessel and it could cause cruise lines to reconsider the economic viability of calling into Tonga.
In a letter of April 21 to Lupeti Vi, the General Manager of the Ports Authority, he asked them to reconsider the tariff increase, because of, "the impact that this increase will eventually have on freight rates and consumer pricing, as in due course these increases will inevitably be passed on to the consumer through increased freight rates."
Peter said the Association would like the proposed 25% increase to be deferred indefinitely.
The announcement of the 25% rise in ports tariff had come only a day before the Government launched a new 15% Consumption Tax, which came into effect on April 1.
See also: Surprise 25% Tongan Port Tariffs rise, no joke on April Fool's Day [2]