FAIR, constructive and a vibe that there is a willingness to solve the backdated port rates issue.

That was the assessment of DFDS Tor Line managing director Jens Nielsen, following an initial meeting with representatives of the recently re-organised Department for Communities and Local Government last night.

As a key part of the Humber Dock Rating Group, he was joined by fellow members of the shipping community in Westminster as talks continue to seek and abolition of the ruinous rating system triggered by failings by the Valuation Office Agency.

The meeting came just 24 hours after North East Lincolnshire's two MPs, Grimsby's Austin Mitchell and Cleethorpes' Shona McIsaac, put the case to the Prime Minister and key Cabinet figure John Denham.

Mr Nielsen, who is being forced to cut his Immingham workforce by 10 per cent as the company faces up to a £10-million bill under the amended and re-valued system, said: "We presented our proposal and while there we had a good discussion around it. We have agreed that both parties will continue to work on it and look at it a bit further, and then get back together.

"There was a feeling there was a willingness to find a solution for the matter. We are not building up too much hope, it is important to realise there a number of obstacles, but it was a fair hearing and constructive.

"We would like to say we are moving forward for definite, but we are somewhat encouraged by the meeting and it seems to be the case that the Government would like to see a workable solution for both sides being found."

As reported, revaluations for 2005 were only handed to businesses last year, with scores of firms having already paid under an agreement with Associated British Ports. So far the Government has refused to budge, and North East Lincolnshire is now collecting from those who are not appealing under a fast-track system.

Coun Andrew De Freitas, leader of North East Lincolnshire Council and Liberal Democrat prospective parliamentary candidate for Grimsby said: "We need the Government to draw a line under this. It should be suspended forthwith so local authorities can revert to collecting sensible business rates and not have this dragging on and on. It is not good for business, for this area it is very bad news."

This week has also seen the launch of a £2-billion rate relief consultation aimed at easing the burden of the 2010 revaluations.

Port operators want to see any changes held off until next year to allow them to be worked into budgets and business plans.

Of the consultation, Victoria Ayling, Conservative prospective parliamentary candidate for Grimsby, said: "This is just a confusing waste of money. Why not just scrap the retrospective ports rates hikes? This is just another quango in the making yet local jobs are being lost. This will not save jobs or firms struggling to pay the new rates just another load of spin."

Ms McIsaac added: "We need to find out how long the consultation will take and when any relief would come into force. If councils could hold off sending out the backdated demands, then the combination may provide us with the lifeline that businesses need.

"The Valuation Office Agency made serious errors in the revaluation exercise. There was gross unfairness in evaluating a business in 2008 and then backdating the bill to 2005 when the companies concerned had paid their rates via the fee they gave to the port owners."