GOVERNMENT ministers have dealt a new blow to Merseyside businesses fighting to save thousands of jobs under threat from backdated ports rates bills running into millions.

Waterside firms say they are dismayed that a Lords’ amendment, which could have paved the way to resolving the crisis, has been blocked by the Government’s invocation of the 17th-century “privilege amendment” to thwart a further debate in the Commons.

Merseyside business leaders said the Government concession of allowing eight years to pay the back-dated rates increase is an offer of little more than “tea and sympathy” to their plight, but say they are confident that a further Lords amendment could force the Commons to properly debate the issue.

They say if not, thousands of jobs and hundreds of millions of pounds’ worth of investment could be lost to the area.

They have now written to Lord Mandelson, Secretary of State for Business, Innovation and Skills, arguing that, by refusing to have the debate, the Government is “putting its own interests before the interests of the UK economy”.

It has acknowledged that the Valuation Office Agency had undercharged port companies, yet is still refusing to debate the amendment, part-drafted by solicitors working on behalf of the Mersey Dock Ratings group, which argued that where a mistake had been made, it would not be the responsibility of those not at fault to bear the financial burden.

Tony Woolrich, of North West Trading, based at Birkenhead, added that he had had to reduce the workforce by 20% as a result of the crisis.

He added: “It’s as a direct result of this. We’re faced now with a £2m back-dated bill which makes you look at business and cost and see where you can take cost out.

“We are bitterly disappointed by the Government’s decision to use this antiquated procedural device to stop this issue being considered on its merits.”