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The Parliamentary Under-Secretary of State for Scotland (Iain Stewart)
It is a pleasure to serve under your chairmanship for, I believe, the first time, Ms Ghani—a very great honour. I congratulate the hon. Member for East Lothian (Kenny MacAskill) on securing the debate, although I take issue with the rather gloomy picture he paints of ports and the wider maritime sector in Scotland. I shall address why I take a different view in a moment.
Ports are the heartbeat of our global goods exports. We expect that global maritime trade volumes could treble by 2050 and we will be ready to play our part, including by reforming our ports regulations to ensure we support our ports to continue to grow and excel in a competitive global environment. The economic opportunities in the maritime sector are huge, including driving up exports and creating high-paying jobs across the country, with specific benefit to coastal communities.
The goal is for the UK to cement its already strong position and thrive as a world-leading maritime nation at the cutting edge of technology, innovation and maritime services, underpinned by effective, responsive and best-in-class regulation. Our policies on levelling up, building back better and our transition to net zero are crucial to gain the economic benefits for our ports and increase the prosperity of our country. Those policies provide successful examples of the engagement between the Government and the private sector. It is encouraging to see how successful Scottish businesses, ports and academic institutions have been in the recent clean maritime demonstration competition—a clear signal of Scotland’s drive and ambition to innovate.
I do not accept the hon. Gentleman’s assertion that there is somehow a conflict of interest in the owners of Forth and Clyde ports also owning other ports in the UK. One thing we are keen to see is the extension of—a very difficult phrase to say—short sea shipping. Do not say that in a hurry.
Ms Nusrat Ghani (in the Chair)
I would say to the Minister that, as the previous maritime Minister, all those words used to flow quite easily for me. He may continue.
Iain Stewart
I am very grateful for your sage advice, Ms Ghani. The transportation of goods around the UK shoreline will be an increasingly important part of transport connectivity in this country.
I would also point to the investments that are being made to increase our port capacity. The hon. Member for East Lothian may be aware that, as part of the Glasgow city deal programme, considerable investment will go into Greenock to upgrade the ocean liner facilities and make sure that the port remains a key destination for international and domestic cruises.
The hon. Gentleman touched on shipbuilding in Scotland, which is renowned for its rich shipbuilding heritage, spanning centuries. It remains the location of a significant proportion of the UK’s shipbuilding capacity. The refreshed national shipbuilding strategy, published in March, was an important milestone for the industry. Scotland will benefit from the Government’s shipbuilding spend—£4 billion across the UK over the next three years—and the renewed focus on this industry. The shipbuilding pipeline in the strategy provides industry with certainty and a clear setting out of the Government’s policy and procurement ambitions. Looking at the Royal Navy alone, in the short term for Scotland, the shipbuilding pipeline sees eight Type 26 frigates being built by BAE Systems on the Clyde, sustaining some 1,700 jobs, and five Type 31 frigates being built at Rosyth by Babcock, supporting around 1,250 jobs. There are of course many other opportunities for Scottish shipyards and suppliers, and this clarity on the Government’s future requirements should provide confidence for industry’s order books. It should also create enough volume to encourage industry to invest in facilities, infrastructure and innovation, which will bring ever-increasing rewards.
The refresh is wider than defence; it is about systems and subsystems, ports, offshore wind and more. By broadening the scope of the strategy, more companies across Scotland will benefit. The focus on improving skills should be welcomed, as this is an area where we all recognise the importance of getting it right. We fully support the ongoing engagement between Whitehall and the devolved Administrations on how to make a meaningful difference in the area, which will ensure that the initiatives already under way, including with local universities and apprenticeships, can thrive.
Alongside the refresh, the Maritime Capability Campaign Office, which unites the defence export and civil maritime capabilities in one unit, will help to build on Scotland’s export success in military ships and designs. It will champion exports and investments, unlocking opportunities for our world-class shipbuilding industry to export its innovative technologies, services and designs around the globe. The export variant classes of the Type 26 and Type 31 have already been successfully marketed and sold overseas, including to Australia, Canada, Indonesia and Poland.
The hon. Member for East Lothian tempted me to go down the path of commenting on the Ferguson Marine shipyard. I will resist the temptation to make political points, but it is one area where we might agree on the analysis of the situation.
Let me turn specifically to port regulation. The Government are currently consulting on the repeal of the EU port services regulation and associated statutory instruments. This retained law was designed and implemented with EU public sector ports in mind. It is the Government’s view that the provisions in the PSR are sufficiently covered in the UK by commercial practice within the framework of domestic law. Now that we have left the EU, we have the opportunity to review the regulation and to consider what is appropriate for the highly competitive UK ports sector, and I look forward to seeing the outcomes of that consultation this summer.
One area of UK-wide policy that I have not touched on yet, and which will be of enormous benefit in Scotland, is freeports. We are delighted to see the expansion of the freeport programme across the UK. In Scotland, we have seen the landmark agreement between the two Governments on the establishment of two green freeports, with up to £52 million of funding from the UK Government. I cannot go into any specifics at the moment, as there is a competitive process under way, but I am confident that the expansion of the UK freeport scheme in Scotland will bring great benefits, including regeneration of communities, the creation of high-quality jobs and support in the transition to a net zero economy.
In closing, I would like to reflect on the importance of ports to the heritage, economy and people of Scotland. From our historic industrial past to the thriving sector of today, ports have a leading role in the defence of the nation by developing world-class technology and innovation, and providing high-quality jobs. Now we look to the promise of tomorrow and the opportunities to be realised for our workers, for exports, for our communities and for our green future. I think we can all agree that our ports have been, and will continue to be, essential to the fabric of the nation and the success of the economy. The Government want to ensure that we maximise our capabilities across the sector through effective regulation, innovative practices and a focus on spreading economic benefits to all corners of the United Kingdom.
Question put and agreed to.