UK Maritime Sector

Debate between Lord Beamish and Robert Courts

Thursday 16th September 2021 Westminster Hall

[The Parliamentary Under-Secretary of State for Transport (Robert Courts)]

It is very good to see you in the Chair, Sir George. It is also a great pleasure to follow the hon. Member for Wythenshawe and Sale East (Mike Kane), who always manages to quote poetry in his speeches and make me feel a very flat speaker in contrast.

I congratulate the right hon. Member for North Durham (Mr Jones) on securing this truly timely debate on the UK maritime sector. He speaks with enormous enthusiasm, experience and expertise on the matter, and I am grateful to him for everything that he has put before us today. I entirely share his passionate enthusiasm for the sector and agree that it has a very bright future. I thank him for his comments. As it happens, I agree with a great deal of what he said—not quite everything, but a great deal.

[Mr Kevan Jones]

Careful—the reshuffle is not over yet. [Laughter.]

[Robert Courts]

That is a good and timely point. The Government will be relieved to know that we do not agree on quite everything.

I can think of no better moment to discuss this issue than during London International Shipping Week. The right hon. Member is absolutely right that, to quote another of his phrases, the maritime sector is not some “quaint” industry that plays a historic role in our past. This is very much an issue of the present, as we see in London International Shipping Week, which is the second-biggest international gathering this year, I understand, after COP26. It is the highlight of the maritime year and shows that not just the capital but the whole of the UK is the best place in the world to do maritime business.

Maritime business is very varied. As my hon. Friend the Member for Totnes (Anthony Mangnall) rightly pointed out, services are a major part of it as well. It is, of course, seafarers and shipbuilding, but it is also the much wider services side of things. He is quite right to draw attention to that.

I reassure my hon. Friend the Member for Waveney (Peter Aldous) that he need not fear: the maritime sector is not overlooked and never will be, certainly for as long as I am in this position. I appreciate that I do not know how long that will be, as everyone would say. Perhaps the greater reassurance is that, for as long as the Prime Minister, for whom this is also a major priority, is here, the sector will not be overlooked.

I start with the issue of decarbonisation, which has clearly been a major part of the debate today. I would suggest that this country is leading the way on this. We have announced the winners of the clean maritime demonstration competition, a £20-million fund to develop novel zero-emission technologies. It is the biggest competition of its type that the Department for Transport has run, so I ask hon. Members to bear that in mind. The right hon. Member for North Durham mentioned hydrogen; my hon. Friend the Member for Thurrock (Jackie Doyle-Price) mentioned Windship. They have asked for demonstrators, essentially. That is what we are seeking to do: to decide and demonstrate what the likely technology is going to be.

We can disagree—we will have to agree to disagree—on whether this is turning point, but I suggest that it is a welcome way forward. I know that hon. Members all accept that, and London International Shipping Week is a great time to showcase the competition. It shows the innovation that is required and that exists, and it also the investment that we are putting into it from both industry and Government—it is key that it is a partnership. We hope that the demonstrators will be a springboard for bolder projects that are yet to come.

It is absolutely clear that there is no shortage of ambition in the sector with regards to greening the sector. That is important for the two reasons that hon. Members have stated: for emissions, clearly, but also, as the hon. Member for Glasgow South West (Chris Stephens) said, for protecting the environment—cleaner in both senses. He is quite right to draw attention to that, and I am grateful to him for doing so.

I will spend a little bit longer talking about shipbuilding, which has been a major part of today’s debate. Shipbuilding will very much be a part of our next chapter. The UK has a long, illustrious shipbuilding heritage. The hon. Member for Strangford (Jim Shannon), who is no longer in his place, spoke movingly and vividly of Harland & Wolff, and the hon. Member for Glasgow South West spoke passionately for Govan, one of the great shipyards of the UK. Together, we have built some of the greatest, most iconic vessels that have ever graced the waves. Shipbuilding remains an integral part of our manufacturing sector, sustains thousands of jobs across the UK and brings millions into the economy, as we have heard.

[Mr Jones]

Will the Minister give way?

[Robert Courts]

Once I have agreed with the right hon. Gentleman one more time, if I may. He asks whether we believe that we will become a world-leading shipbuilder. Yes, we will.

[Mr Jones]

Will the Minister inform the House whether he has any indication of when the refresh of the national shipbuilding strategy will be produced? I know that is in the hands of the Ministry of Defence, and the MOD’s idea of summer—or any season, frankly—bears no relevance to anything that we would think, but I would appreciate some indication because the industry is keen to get on with it.

[Robert Courts]

I cannot give the right hon. Gentleman the precision he would like, but it will be before the end of the year. I hope that provides some indication of going forward.

The industry has historically suffered around productivity and under-investment, and we need to become more competitive on the international stage. Government support is, of course, vital to achieving that aim. It is key that we work in partnership with the sector to reinvigorate its fortunes and those of the wider supply chain, which we have heard so much about today. With that in mind, the new post of shipbuilding tsar—who is, of course, the Secretary of State for Defence, as the right hon. Member for North Durham knows—has been created. That is to support UK industry to enable it to step up and become more productive and innovative. As part of that, a vital step forward has been announced this week: the creation of the National Shipbuilding Office.

The right hon. Member for North Durham spoke of the Carrier Alliance. He is quite right that it has been a fantastic project and that it showcases the best of the UK, but I would suggest that it is also slightly different, given that it is a once-in-a-generation major product. We are looking at something that requires ongoing, routine investment in shipyards and that leaves a legacy, because we need to build on the legacy of the shipyards to have that drumbeat of ships that we all wish to see and to provide that for the future.

That is what the National Shipbuilding Office is looking to do. It will be the strategic centre driving this change across Government and the industry. In other words, it will do precisely what my hon. Friend the Member for Waveney rightly asked for—as, indeed, did the hon. Member for Strangford—and avoid the siloing that my hon. Friend the Member for Thurrock rightly referred to.

That is what the National Shipbuilding Office is intended to do. It is to bring together all the Departments that hon. Members have referred to, but then add industry to ensure that it is a key team effort. That will, of course, support innovation—to ensure that skills are also aligned—and the supply chain. It will outline the vision for the UK’s shipbuilding enterprise, and the strategy that I referred to in answer to the intervention from the right hon. Member for North Durham.

A good example of the way the country can showcase its real innovation is the new national flagship, which is a sign of the Government’s determination to support prosperity, jobs and skills in the UK shipbuilding sector. The right hon. Gentleman mentioned Wights, the shipyard company on the Isle of White. I was at the boat show in Southampton yesterday, and met with RS Sailing, which is developing a green, electrically powered, rigid inflatable boat, and with the marine division of Barrus and Bruntons Propellers—highly efficient propeller technology—to give a few examples. The Society of Maritime Industries event, earlier this week on HMS Albion, brought together all those industries, and others.

Companies such as that, with technology such as that, could be showcased in this new national flagship, which is a sign of the Government looking to provide a showcase for technology, and be part of the drumbeat of ships, so they would understand when the Government were procuring new vessels. A major part of that is the MOD’s Type 31s and Type 26s, all the way through to our naval support vessels. However, we also have civilian vessels—ice patrol, ocean surveillance, and, of course, research. The RRS Sir David Attenborough is the latest example of those very high-quality ships being produced by the UK. A new fleet of Home Office cutters is also being considered, should funding be confirmed, with the intention of securing UK value for that.

I will talk about the DFT’s fleet for a moment, too. That fleet is often overlooked, although it is one of the largest civilian fleets. It is operated by our general lighthouse authorities to ensure that navigational aids remain operational in all circumstances, and that seafarers are made aware of dangers such as wrecks. That role is often understated, but it is terribly important, as the right hon. Member for Orkney and Shetland (Mr Carmichael) might agree; I am sure it is important in his constituency. I will take the opportunity to thank everyone who works for Trinity House, the Northern Lighthouse Board, and Irish Lights, for their professionalism in extremely difficult times, and for keeping people safe. We are also commencing projects to build new vessels for Trinity House and the Northern Lighthouse Board. Both will go out to formal tender shortly.

A great deal of vessels, in terms of number and breadth, are available in the Government’s pipeline, and there is no reason for that not to include fishing, as my hon. Friend the Member for Waveney rightly pointed out.

I will say a word or two about skills. Skills are clearly part of the Government’s levelling-up agenda and a massive part of the industry. Today, as we also heard from my hon. Friend, the Maritime UK coastal powerhouse event takes place. Coastal communities are very much part of levelling up and of the industry we are discussing today. We need to ensure, as my hon. Friend the Member for Totnes rightly pointed out, that we have the skills we need not just to recover from covid-19, but to look to the future and to ensure we have the skills we need for the industry. That is a key part of the Maritime 2050 strategy, which the Department produced about two years ago. It brings together, in conjunction and consultation with industry, the plan for the future.

A key part of that plan is the Maritime Skills Commission. Professor Graham Baldwin was appointed as chair, alongside 18 commissioners, and it has £300,000 in funding. One of its recent focuses has been green skills, to which my hon. Friend also drew attention. The Seafarer Cadet Review was also published in June.

I am grateful that hon. Members mentioned East Coast College and South Devon College, which are looking at STEM—science, technology, engineering and maths—skills in their own ways in their parts of the world. That is critically important work, close to all our hearts.

My comments must be slightly constrained by the fact that a spending review has been announced recently. The Government will announce how we will continue to invest in public services, and the Department for Business, Energy and Industrial Strategy is working up a business case for a home shipbuilding credit guarantee, which is part of the spending review considerations. We continue to look at what other financial support might be available to work jointly with industry.

The hon. Member for Glasgow South West asked me about public procurement. There was a Green Paper, and those responses are being considered by the Cabinet Office. The DFT will continue to review the tonnage tax regime.

I am conscious that my speaking time is running out, although there are a great many other things I would like to talk about. My hon. Friend the Member for Totnes rattled off a list of things, each of which could make for a great debate in its own right—flag, tax, supply chain. I would love to have debates on those subjects; maybe he will apply for some. I do not suppose it is my job to encourage the holding of debates, but I just have.

I should also give a plug to the debate on the cruise industry scheduled for next week, which I am sure my hon. Friend the Member for Thurrock will attend if she possibly can. I appreciate the support of and constructive criticism from all Members. We have had an interesting, helpful and constructive debate.

Armed Forces Pay

Debate between Lord Beamish and Robert Courts

Wednesday 1st November 2017 Commons Chamber

[Mr Jones]

I find that remarkable. The hon. Gentleman is letting down his constituents by not supporting what we are arguing for, which is a fair deal on pay for members of our armed forces. If I were in his shoes, I would be making sure that I did.

The last Labour Government, during which I served in the Ministry of Defence, had a proud record of accepting the recommendations of the pay review body every single year. For example, the increase was 3.7% in 2001 and 2002 and 3.2% in 2003, and that goes right up to 2010, when the increase was 2%. However, this Government have put in an artificial cap, completely ignoring the pay review body, and it was remarkable to hear the Minister say that that does not matter because people are receiving increments. I am sorry—this may be the trade union official in me coming out here—but where someone starts affects where they end up. A 2% incremental increase may mean an increase in pay, but a 2% increase on the basic level of pay is a damn sight bigger, and we need to recognise that.

Something else that cannot be forgotten is this idea that armed forces pensions are, as I think someone said, gold plated and generous. However, people do not recognise that that is taken into account by the pay review body. I also want to remind the Conservatives that if I had sacked armed forces personnel or made them compulsorily redundant weeks away from their retirement date when I was in charge, I would have been rightly condemned. That is just another example of a Conservative Government saying one thing, but doing another. Making people compulsorily redundant is astounding.

As for the independence of the pay review body, it is clear that the Government have completely ignored its recommendation, but things are even worse than that. The previous Prime Minister David Cameron sacked the head of independent pay review body in 2013 because he did not like what it said about the X factor and pay increases. The Government have not just ignored the pay review body; they have interfered in the independent process. Conservative Members may say that pay is not important, but I am yet to meet anyone in life who does not think that getting a decent reward for their efforts is important to them.

Alongside that, we have seen declining morale. One of the Conservative Government’s betrayals is that they say, “We stand up for the armed forces.” Well, the armed forces stood at 191,710 personnel in 2010, but that is now down to 149,366. The situation is worse than that, however, because there are artificial caps on numbers in the individual services, including the Navy, which is leading to real deployability problems. Ships are not sailing because they do not have the crews. As I said, the Conservatives say that they stand up for the armed forces, but if they genuinely want to do that, they should pay people accordingly and recognise the efforts and sacrifices that individuals make on our behalf. Empty words are fine, but actions in government are different. I am proud that the Labour party—not just in the last Labour Government, but throughout its history—has always stood up for our armed forces by supporting personnel and by ensuring that our country is defended.

[Robert Courts (Witney) (Con)]

That last Labour Government, for which the hon. Gentleman presumably has some responsibility, left a £38 billion black hole in the defence budget. By contrast, this Government are increasing defence spending. Does he accept that he has some responsibility for that and that the Conservatives stand up for the armed forces?

[Mr Jones]

I thought the Cameron Kool-Aid had been dispensed with. That figure was plucked out of thin air. I recommend that the hon. Gentleman look at the 2010 National Audit Office report that says that there would be a £6 billion so-called black hole over the next 10 years. The Conservatives dishonestly tried to give the impression that there was a £38 billion black hole to be met in 2010. Both the right hon. Member for North Somerset (Dr Fox) and the right hon. Member for Runnymede and Weybridge (Mr Hammond), his successor as Defence Secretary and now Chancellor, miraculously got rid of that black hole within 18 months and said that it had been plugged—do not ask me how they did it. If they could get rid of a £38 billion black hole in less than 18 months, they are in the wrong job. That was complete nonsense. The hon. Member for Witney (Robert Courts) should stop repeating things that are just not true. I give the Conservatives credit for their great job of changing the narrative at the time, but the actual facts are different.

[Robert Courts]

Will the hon. Gentleman give way?

[Mr Jones]

No, because I am about to finish. I suggest that the hon. Gentleman looks at the black hole that exists in the current Government’s procurement plan. I am not suggesting that it is an in-year black hole; this is about the 10-year equipment plan. The hon. Gentleman may want to look at that, the NAO report and the excellent report out today on how the Government are cannibalising equipment. Please look at the details.

I will finish with a non-partisan point. Everyone across the House recognises the dedication and service of the members of our armed forces, and they deserve that recognition. In just over a week’s time, we will remember those who made the ultimate sacrifice, and there is a consensus across the House of support for our armed forces, but if we are to support and recognise the sacrifices they make, they need to be paid and resourced at an acceptable level.