Marine Navigation Aids Bill [HL]

Lord Reid of Cardowan Excerpts

Friday 21st January 2011 Lords Chamber

[Lord Berkeley]

I am grateful for that show of support. However, in many ways things have moved on on the navigation aids front. There has been progress, with developments, and I believe that it is a good idea to bring the Bill forward again.

I remind noble Lords that I introduced the Bill last year because, in the previous year, the Government of the time had increased light dues—the dues that ships pay to enter any British port—by 67 per cent, which in the middle of a recession I thought was a bit steep, to say the least. I can go through all the reasons for that, but I think that it is enough to say that they can be found in the Hansard of a year ago. I maintained then, and still do, that such an increase is frankly unaffordable. We are talking about a unique structure, where the Government set the charges for ships based on what the three general lighthouse authorities say that they need, and the ship owners have to pay up.

The main problem arises when you compare that with all the cost-cutting that the Government are making at the moment. There have been some enormous cost-cutting measures, which we have been debating here and will continue to debate, particularly in the Public Bodies Bill. Basically, the Government are saying, “You have to cut the costs. Do it how you like but this is the way that it is going to end up”. Uniquely, I think, in this case, the Government still set the charges but the taxpayer does not pay; the ship owner pays. I shall repeat just one quotation that I read out a year ago from Stephen Bracewell, the chief executive of the Harwich Haven Port Authority. He said that, as a result of the increase in the light dues,

“no less than four major container services have ceased calling at the Haven Ports”.

That is a pretty serious change to ship movements, involving a loss of revenue and a loss to the economy.

In the ensuing year, I have consulted a number of people and organisations about this light dues issue. The problem is still as bad, but I believe that there are simpler solutions. I have come across a number of examples elsewhere of how costs have been slashed for maintaining the lights, which of course has resulted in lower charges. The best example that I found was in Australia. A couple of weeks after my Second Reading speech last year, I received an e-mail from someone in Australia whom I did not know saying that he had been reading Hansard the previous night. I felt chuffed about it but I wondered why someone in Australia would be reading my speech in Hansard. However, the person concerned had been the director of the Australian lights authorities and, over the past 10 years, had achieved a saving of 50 per cent in the maintenance of the lights all the way round Australia. I went to Australia in April and arranged to meet him. I was extremely impressed with him because he also knows the UK waters very well. He was adamant that similar savings could be made here and a number of his articles were published in Lloyd’s List. One of the elder brethren at Trinity House, Michael Grey, wrote in saying that Australia was nothing like the UK. He said that it was a square country and needed only a lighthouse at all four corners. I am exaggerating slightly, but it was that kind of thing. Mr Davidson responded by saying that he knew all about the UK waters and that he stuck by his arguments.

I also heard more recently that the Hong Kong authorities are reducing light dues by 20 per cent. They are bringing in similar efficiencies. I understand that in many of the old colonies, shall we say—they are now independent—where a similar structure of lights occurs, there is the potential to make similar reductions.

Since last year, the new Government have made a lot of progress and I am pleased that they have. First, they have made progress on what we have come to call the Irish question. Since 1922—or since for ever, actually—ships entering UK ports have contributed to the cost of maintaining the lights around the Republic of Ireland. I remember putting down a Starred Question about that a few years ago. The noble Baroness, Lady Crawley, answered it by saying that the Irish Government were not keen to negotiate. Well, they wouldn’t be, would they, if they would have to spend somewhere between £15 million and £20 million more because ships coming into British ports no longer had to contribute to the maintenance of the lights around Ireland. After all, they do not contribute to the lights around France, Belgium, Germany or anywhere else.

The present Shipping Minister, Mike Penning MP, has reached agreement with the Irish Government to stop this transfer of funding by the end of this Parliament. I certainly welcome that. He will need all the support that he can get given the state of the Irish economy. I believe that the Irish Minister whom he met a week or two ago resigned yesterday, so I hope that the agreement will still stand.

The Government have also finally started to tackle the costs of running the three lighthouse authorities around the coast. I understand from a letter from the Lights Advisory Committee that the Government have set the GLA the target of making cuts of 17 per cent over the next five years. That is welcome—it is a major step forward—but they could go further. Anyone in the position of being a monopoly supplier, effectively government-funded in the way that it operates, could cut costs a lot more.

I have already written to the noble Earl, Lord Attlee, and other speakers whose names were on the list when I wrote the letters to tell them that, if the Bill is given a Second Reading by the House today, I will introduce amendments to make it much simpler. These amendments would do two things. They would require the Government to reduce light dues for ships entering the UK ports by codified reduction targets annually for a five-year period—probably by 50 per cent in five years, which is achievable. I would also support the present Shipping Minister in his work in dealing with the Irish Government by requiring the Government to cease payments by a certain date.

[Lord Reid of Cardowan]

My Lords, I know from my time at the receiving end as Transport Minister that my noble friend is extremely knowledgeable and an assiduous campaigner on these issues—rightly so, given their importance to a seafaring and trading nation. Is he in a position to estimate the deleterious effect on trade of such a large increase over a short period of time, even if only in very round figures?