Draft Maritime Transport Access to Trade and Cabotage (Revocation) (EU Exit) Regulations 2019
(Limited Text - Ministerial Extracts only)
Read Full debateThe Committee divided: - Ayes: 9 / Noes: 8 - Question accordingly agreed to.
The Parliamentary Under-Secretary of State for Transport (Ms Nusrat Ghani)
I beg to move,
That the Committee has considered the draft Maritime Transport Access to Trade and Cabotage (Revocation) (EU Exit) Regulations 2019.
It is a pleasure to serve under your chairmanship, Mr Walker, in this oasis of calm on this ordinary Tuesday afternoon. The Department for Transport has conducted intensive work to prepare for the UK’s departure from the EU, which includes ensuring that our statute book continues to function. The Department plans to lay about 65 statutory instruments before exit day; I believe that 44 of those have already been laid.
The regulations before the Committee revoke EU legislation that would otherwise be retained in UK law under the European Union (Withdrawal) Act 2018. For the most part, that legislation would be redundant after we leave the EU; it would have no effect. For example, Council regulation 4058/86 is about anti-competitive measures taken by non-EU countries. It allows member states to ask the European Commission to co-ordinate retaliatory action against such countries. That remedy will not be available to the UK when we are no longer a member state.
EU regulation 3577/92 gives member states rights to provide maritime cabotage with another member state. For the information of hon. Members, I should say that “cabotage” in this context is essentially the operation of ships between two UK ports, or one-port operations to and from an offshore site. If we do not revoke that regulation, it will be retained in UK law, which would mean that member states would continue to have cabotage rights in UK waters but UK vessels would no longer have such rights across EU waters.
It is important to say that the UK has no intention of restricting cabotage by EU vessels in UK waters. By removing the statutory rights provided in the regulation, we are simply putting EU vessels on the same footing as vessels from other countries: that is, they will continue to be able to operate cabotage without any express statutory right.
In preparing this legislation, the Department has discussed the scale of activity with the UK Chamber of Shipping. In practice, relatively little cabotage is undertaken by UK-flagged vessels in EU waters. Furthermore, a number of EU countries have an open approach to cabotage, as do we. We expect there to be very little change in the provision of cabotage by UK operators in EU waters after the UK leaves the EU, and these regulations do not change that position.
There is also no reason to believe that the regulations will have any effect on service provision by EU operators in UK waters. As I mentioned, the UK has no intention of restricting cabotage: we believe that an open approach promotes competition, leading to better and more efficient services. However, the UK does not intend for member state cabotage rights to continue to be expressly guaranteed in UK legislation.
The changes made by these regulations are appropriate to ensure that on exit day, the UK statute book does not contain regulations that are redundant. The regulations are fully supported by the Government, and I commend them to the Committee.
Ms Ghani
I am grateful to the hon. Members for Kingston upon Hull East and for West Dunbartonshire for their contributions, which underline the importance of the maritime sector to the UK’s trading capacity and success. It is important that people understand that, despite revoking EU legislation, the UK will still operate a liberal cabotage regime. That means shipping companies registered in EU member states will still be able to operate in the UK as they do now, so very little will change.
Competition was mentioned. After exiting the EU, the UK will have a robust competition regime, overseen by the Competition and Markets Authority, and will be able to take trade remedies action in its own right under the aegis of the World Trade Organisation. If hon. Members have concerns about what may or may not happen in a no-deal scenario—obviously, this instrument is intended to ensure that we have everything in place for such a scenario—I suggest that they support the Prime Minister’s deal.
The hon. Member for Kingston upon Hull East mentioned consultation with unions. We undertook extensive consultation, not only with the UK Chamber of Shipping but with the Scottish and Welsh Governments. We can discuss many issues, but we need to ensure that, in a no-deal scenario, we continue doing business as we do today. That is what this statutory instrument is about.
Karl Turner
On consultation, have there been any discussions with the National Union of Rail, Maritime and Transport Workers, which represents many crew members on vessels?
Ms Ghani
I thank the hon. Gentleman for that question. We are not only blessed with the International Maritime Organisation, across the water, but the maritime sector is a global sector and one that we take very seriously. Only last week, we launched “Maritime 2050”, working with all stakeholders. We communicate with as many agencies as we can. We want to do what we can to ensure that the maritime sector in the UK continues to be as robust as it is.
I turn to cabotage. The draft regulations will make no practical difference to cabotage arrangements in UK waters. Operators from EU or non-EU countries will be able to continue to provide cabotage services as they do now. However, EU operators will no longer have guaranteed rights, which operators from other countries similarly do not have in UK waters. Such rights would not be reciprocated for UK operators in EU waters, so it is reasonable for us to revoke them.
Karl Turner
I am afraid the Minister did not answer my question. The question is, what discussions has the Minister had with the Rail, Maritime and Transport union, which happens to be the biggest trade union in the sector, representing seafarers in this country? It seems incredible to me that the Government have not had any discussions with the RMT union. Will she be clear about that quite simple point?
Ms Ghani
What is incredible is that the RMT did not update the hon. Gentleman to say that we did indeed speak to it recently. The union made it very clear that this piece of legislation does not adversely affect its practical interests in any way. Perhaps that is the incredible piece of information that he can take back to the RMT.
The changes made in the draft regulations are appropriate. They will remove from the UK statute book regulations that would otherwise be retained after EU withdrawal. They are fully supported by the Government, and I commend them to the Committee.