Wreck Removal Convention Bill

Debate between Earl of Caithness and Lord MacKenzie of Culkein

Friday 10th June 2011 Lords Chamber

[Lord MacKenzie of Culkein]

My Lords, in short, these amendments are about leaving the obligation for the removal of wrecks by default with the Secretary of State. That effectively means leaving the taxpayer with the liability. Clearly, ship operators have to be concerned about costs—and rightly so. However, the Bill—unless I have misread it and I do not think I have—is not, as was recently alleged in the shipping newspaper Lloyd’s List, about shifting the financial burden for the removal of wrecks to shipping. As I understand the Bill, it is about maintaining the status quo as regards unrecovered costs. If the Bill becomes an Act, it will not make any difference so far as unrecovered costs are concerned. An uninsured ship could go down in a conservancy area or a harbour authority area and there would be exactly the same situation as that which pertains at the moment.

As the Bill provides that there will be a mandatory requirement, for the first time, that all vessels over 300 gross tonnes have wreck removal insurance and there is strict liability on the ship owner to remove that wreck, it is highly unlikely that there will be any increased costs to the General Lighthouse Fund or to harbour conservancy authorities. I know that my noble friend Lord Berkeley is understandably concerned about the cost to a small harbour authority if an uninsured vessel requires removal after an accident, but Section 255J states clearly that the UK ship or a foreign-owned ship may not enter or leave the UK port. In default of that, the master or operator of a vessel is guilty of an offence.

So it is more likely in future, that that requirement will be widely known by all ship owners and operators and much less likely that uninsured vessels will seek to enter our ports. I agree that it would be useful if the noble Earl could say something about small harbour authorities, which unlike, for example, Southampton, Felixstowe or Clyde Port, may not have the funds to effect removal in the unlikely event of an uninsured casualty which is a hazard to navigation. Overall, it is much more likely that the introduction of the convention will lead to reduced costs, to the benefit of the General Lighthouse Fund and, thus, to ship owners.

While some wrecks and strandings are beyond the control of any ship operator or ship master, far too many of them are a consequence of negligence. Casualties arise from one or more of causes such as poor navigation, poor watchkeeping practice, and underqualified officers. We know that it is possible to have people with fake qualifications on the bridges of ships. We have undermanned bridges. There are problems with alcohol and fatigue and, not least, inadequate maintenance. In that connection, in 2009-10, the Marine Coastguard Agency found that 1,265 vessels had safety issues and had to detain 59 of them until matters were put right. Sir Alan Massey has reported that there was insufficient rigour in some of those investigations. He is in a position to put that right. If the Bill is enacted, I hope that he will do so and that there will be proper examination of certificates. Of course, that would ensure that ships without those certificates do not come into our ports.

However, where maritime accidents occur in the circumstances that I described, it is quite wrong that the taxpayer should be expected to be the insurer of last resort, and therefore wrong to seek dilution of the clause, as proposed in my noble friend's amendment. It is for shipping operators and owners to be properly insured and for them to arrange prompt removal of any wreck that is a hazard to navigation. I have not the slightest doubt that most shipping companies—good ship operators—will be properly insured.

The requirement for mandatory ship insurance is long overdue. It is a valuable addition to maritime safety and should be supported. I recognise my noble friend's concerns but I hope that, having listened to the debate in Committee, he will feel able to withdraw the amendment so that we can give the Bill safe passage.

[The Earl of Caithness]

My Lords, I apologise to your Lordships for not being here for Second Reading, but I have read Hansard carefully. Having just listened to the noble Lord, Lord MacKenzie, I have no doubt that the noble Lord, Lord Berkeley, should be a great deal happier than he appears to be. The noble Lord, Lord Berkeley, said nothing new in moving his amendment today to what he said at Second Reading. Anyone who reads Hansard will see that, at Second Reading, he said that he was very satisfactorily answered by the noble Lord, Lord Greenway, and, in particular, by my noble friend Lord Attlee. If the noble Lord, Lord Berkeley, cares to refresh his memory of the Second Reading debate, he will find the words of my noble friend Lord Attlee, who said that,

“the Bill maintains the status quo”.—[Official Report, 13/5/11; col. 1134.]

The noble Lord, Lord Berkeley, wants to do nothing more than transfer existing liability on to taxpayers, as the noble Lord, Lord MacKenzie, has pointed out. He has wrapped it rather cleverly with harbour authorities this time, but we know that the real beef of the noble Lord, Lord Berkeley, is the GLAs. He does not like them, and we are all used to that. I do not think I am alone in getting slightly concerned about this. It reminds me of the wolf story; he has been going on about GLAs for so long. He has been answered very properly and correctly, but I am no longer certain when he is being serious or when he is playing another agenda that I do not know about. That slightly perturbs me. If my noble friend Lord Attlee could comment on the MOU, which was mentioned at Second Reading, that might help to reassure the noble Lord. An update on that would be helpful.