LEGISLATION is on its way to the statute book to erase the backdated port rates totalling £19 million across Grimsby and Immingham.

Local Government Minister Bob Neill was back on the Humber yesterday to tell businesses and council leaders what the Conservative- Liberal Democrat coalition was doing to lift the ruinous burden imposed by the previous administration.

And he told how his team are working on the details ahead of what he hopes will be a 2011 passing of the Decentralisation And Localism Bill, with the issue having been the first matter he dealt with on becoming a Government minister.

He also revealed the moratorium currently in place to stop local authorities chasing payments will be extended "for as long as it takes" to get the new law passed.

Having addressed a delegation from North East Lincolnshire in the Port Of Goole, Mr Neill told the Telegraph: "The key thing was to confirm the legislation requirement to revoke the backdated rates will be part of the Localism Bill, announced in the Queen's Speech.

"The second thing was to confirm that in the budget the Government has made available £175 million to force that commitment.

"At a time when we are having to reduce public spending, we were able to technically pump back £175 million into the sector. It was really strong evidence of the support for the ports and industry. I am very conscious this was about jobs and ports are a real priority when it comes to the UK economy, with Grimsby, Immingham and the Humber the largest concentration of them all." Mr Neill told how 59 properties owned by companies in North East Lincolnshire can now look forward with confidence after the £19 million charge was effectively wiped away.

It follows changes in the charging system that were delayed by the Valuation Office Agency, in some cases for three years from 2005 to 2008, while businesses still paid under a previous arrangement.

The Grimsby Telegraph has been a major voice in the campaign, bringing it to the public's attention.

"It has been very nice to feel we have been able to deliver on something we have been working on," Mr Neill said, adding: "We will extend the moratorium for as long as it takes to get the new legislation through." There to hear the detail was leader of North East Lincolnshire Council, Andrew De Freitas, who has been praised by industry for holding off collections when it became a clear political issue in the run up to May's General Election.

Councillor De Freitas said: "We are now hoping to have a clear steer from Government. The promise we have had is we will get a letter which will make quite clear what is collectable and what is not.

"The new Government has taken the matter seriously and I am delighted with that. For more than two years now, we have had this unjust situation which should never have happened and I am highly delighted for businesses in North East Lincolnshire, which would have possibly either pulled out of the area or gone into receivership." Of the authority's position throughout, he said: "I am pleased we did what was right at the time and held off. We could have taken enforcement action months ago."

The pace of the action was key for business. For Jens Nielsen, managing director of DFDS Tor Line, the Immingham-based company that employs 500 and was facing £10 million of charges, it was a perfect birthday present.

He said: "It is very positive, and confirmation of the signals received. I am impressed with the speed in which they are doing this."

Andy Dixon, of Freshney Cargo Services in Grimsby, said: "The Conservative-Liberal Democrat coalition has done exactly what it committed to do."