Merchant Shipping (Standards of Training, Certification and Watchkeeping) (Amendment) (EU Exit) Regulations 2019

Baroness Randerson Excerpts

Monday 18th March 2019 Lords Chamber

[Baroness Randerson (LD)]

My Lords, I thank the Minister for her explanation.

The first of these two SIs relates to training standards in the industry and is based on EU directives 2008/106/EC and 2012/35/EU. The EU-wide process for the recognition of certificates has been very important—indeed, fundamental—in raising safety levels in an industry where international crews are the norm. In 2016, as the Explanatory Memorandum helpfully tells us, 3,410 UK seafarers had certificates enabling them to work in EU and EEA-registered vessels. The SI adopts the usual procedure, replacing “EU Commission” with “Secretary of State”.

It will not surprise the Minister to hear that I am concerned about the reduction once again in transparency in the process because the SI gives the Secretary of State responsibility for the withdrawal of recognition of parties to the STCW convention where standards are not met. What is the procedure by which the Secretary of State will come to that conclusion? Who will advise the Secretary of State? Will there be any right of appeal? We are replacing a well-established, well-understood European process with a process bathed in mystery. Perhaps the Minister could explain whether any further regulations will set out the process and where any advice might be given to the Secretary of State.

The Joint Committee on Statutory Instruments drew this SI to our attention because of its impact on seafarers. The UK will continue to recognise the certificates it currently recognises but there is no guarantee of the EU recognising our certificates in future. The 2005 directive established certificates of competency; each seafarer must have one, and have it endorsed by the flag state of the vessels on which they want to work. These are known as certificates of equivalent competency. Once the European Commission has approved a third country, other member states can, but are not obliged to, accept seafarers from that third country on their ships. That is an unusual discretion. How does it work in practice? How has it worked in practice until now? Is there a record of seafarers from a recognised third country not being accepted on ships from other EU countries? If there are cases where that has happened, which countries have chosen to exercise this power of discretion? Have we always accepted those certificates?

I am sure the Minister can see where I am going with this. My concern is that once we become a third country our seafarers may find themselves excluded by some EU countries, even though the European Commission has agreed to accept our certificates as compliant with STCW.

There is also my usual concern about how we keep up with the flow of information as the EU changes its standards. It is fine to say that we will hitch ourselves to the current standards, but keeping up with the list of countries recognised by the EU might be more complex than it seems. In this SI, the Secretary of State is given the power to add to or subtract from the list of recognised countries, so I ask the same questions again about that power. What will be the system for this? Where will be the transparency? Who will give the Secretary of State advice? I am even more concerned, because as usual there has been no consultation on this, and it involves individual seafarers. Although companies can be expected to keep abreast of all these changes, individuals should not be expected to have to do so.

I turn to the SI on passenger rights. Officials working in the Department for Transport must be losing the will to live during this whole process. As things descend into farce, it is probably difficult to keep abreast of the pace of these things, but I have to say that this is an unusually opaque Explanatory Memorandum. I draw noble Lords’ attention to paragraphs 2.8 and 2.9, which introduce us to the bunkers and Athens conventions in terms that suggest we chat about them over our cornflakes, so familiar are they to us all. I really grappled with this one; I raise this because if I have misunderstood it, it is because bits of it are particularly complex.

In practical terms, this SI seeks to continue current arrangements on passenger rights and on insurance. I have a technical question for the Minister. In the EU rules on this, the compensation for when things go wrong is currently dictated in euros. It is converted to sterling at the rate for the year ended 31 December 2017. Why are we using something pretty historical for this? It makes it look rather outdated before we start.

Once again, there has been no consultation on this. I want to make an important point in relation to the comments on small business. One after another of these SIs say that there will be minimal impact and only familiarisation costs to SMEs. I am beginning to be extremely concerned that, within each sphere—here we are on maritime—individual businesses are expected to absorb and to familiarise themselves with a number of SIs, not just one. The pace of change for them is adding up to something substantial, and the Government have not consulted them on it.

I also want to ask my usual question: how will the Government keep up with changes that happen in the EU on this? Passengers’ rights are very dear to people’s hearts. If there is any shadow of thought that we in this country have inferior rights, passengers would be extremely angry—and rightly so. Therefore, I am keen that we know how the Government intend to keep pace with change. What will be the process by which the Secretary of State makes decisions to change things when necessary? On whose advice would he act?

[Lord Tunnicliffe (Lab)]

My Lords, there is a certain disadvantage in following the noble Baroness, Lady Randerson: she has usually nicked most of my points. I will therefore highlight only a couple.

Paragraph 3.2 of the Explanatory Memorandum states that,

“EU recognition of United Kingdom certificates will be at the discretion of Member States”.

Clearly, here we have a non-reciprocal situation, where we are providing rights to the EU and it is not necessarily reciprocating. Will the Minister explain the processes the Department for Transport intends to carry forward? Is there reciprocity, as we desire, or will it have to be done state by state? Can it be done through some comprehensive agreement with the EU? What efforts are being made at the moment to try to get a reciprocal agreement?

I share the concern of the noble Baroness, Lady Randerson, about the Secretary of State. To be even-handed, I should say that that is any Secretary of State—one is tempted to ponder on this one in particular, but I will set that to one side. I could not find it in the Explanatory Memorandum, but I may have overlooked it: what political oversight is there in the exercise of the Secretary of State’s powers? If there is none, how can there be transparency in the process? To pick up the noble Baroness’s point, how will he be advised?

Turning to the very important issue of passengers’ rights, although the Explanatory Memorandum is a document in the public domain, it is not one dear to people’s hearts, whereas Hansard is. Paragraph 7.1 of the Explanatory Memorandum seems to say that passengers’ rights will be identical. Will the Minister tell us in plain language that they will be identical, so that it can be included in the formal record?

On paragraph 7.3, I share the view about opaqueness. It talks first about EU member states that are not state parties to the Athens convention. Elsewhere, one got the impression that all EU member states were parties now to the Athens convention. Of the member states, which are not parties to the convention? It tells us little about how the Athens convention works and gives appropriate support and assurance to passengers. Will the Minister spell out what the convention does for passengers? I know it limits compensation, but how does it ensure that compensation will be paid? I recognise that the answer to that might be rather complex, so I am content for the Minister to write to me on that subject.