Port of Southampton

Caroline Dinenage Excerpts

Wednesday 18th January 2012 Westminster Hall

[Caroline Dinenage (Gosport) (Con)]

I congratulate the right hon. Member for Southampton, Itchen (Mr Denham) on securing this debate at such a critical juncture. The strong attendance by MPs from across political parties and the south of England is testimony to the urgency with which we must address the future of Southampton port. It is an issue of great consequence, not only to Southampton, but to the economic future of the region and the success of UK plc.

I do not intend to repeat the difficulties that have plagued attempts by the port of Southampton to develop container capacity since 2007—the right hon. Gentleman has already eloquently outlined the tortuous tale of mishaps and deliberate obstructions. I wish only to underline the immense frustration that it has taken more than four years to reach this unsatisfactory juncture. After more than four years of mistakes by the relevant authorities and meddling by a commercial rival, Associated British Ports still does not have permission to develop capacity at the port. It is right to look to the future, but we must be mindful of past delays that must seem utterly baffling to most people. ABP’s commitment to developing the port of Southampton should be a shining example of private investment fuelling economic growth, trade and jobs.

The port of Southampton is one of the region’s economic powerhouses, and as the MP for Gosport, which is just down the road, I know how vital it is for my constituents not only because of the employment that it provides, but because one job at the port generates four or five further jobs. The proposed development of capacity for container ships should by now have cemented the port’s position in European-Asian trade, secured jobs and bolstered the economic might of the UK. It is vital to stress that all those things can be achieved by private investment of well over £100 million, and there is no need for Government support.

If the MMO fails to act decisively, or if commercial rival Hutchison Ports again seeks legal obstructions, there is a real possibility that the international success of Southampton port will be undermined and up to 2,000 jobs put at risk. I have spoken in the Chamber previously about the pockets of deprivation that are found on the south coast, and we cannot afford to put those jobs at risk.

As the hon. Member for Southampton, Test (Dr Whitehead) pointed out, a new generation of container ships is on the horizon. If Southampton is not allowed to act within the coming months, those ships might well pass it by. I therefore wish to reiterate calls for the MMO to act with speed and precision at the end of the consultation and for Minsters to ensure that it has the resources and expertise to do so. The Government are committed to securing growth and jobs through private investment and we must not—I hate to use this pun—miss the boat in Southampton.

--- Later in debate ---

[Dr Thérèse Coffey (Suffolk Coastal) (Con)]

It is a pleasure to serve under your chairmanship, Mr Gray. I intend to refer to many of the comments that have been made about the actions of Hutchison Ports, rather than to proselytise about the benefits of Felixstowe, which are already well known in the House.

Associated British Ports is an investor in the Suffolk ports of Ipswich and Lowestoft, as well as in Southampton. I want to reinforce the point that my hon. Friend the Member for Harwich and North Essex (Mr Jenkin) made about consistency and a level playing field. I commend the right hon. Member for Southampton, Itchen (Mr Denham) on his advocacy of the port of Southampton. As I mentioned in my intervention, companies that we represent are entitled to expect that Government agencies act within the law, and when they do not, it is reasonable to challenge them. The MMO suffers from the sins of its predecessor, but that happens with Governments, agencies and companies, which have to deal with the hand they are given. The MMO fell down initially in accepting the decision and subsequently admitted that it had acted unlawfully, so the order was granted.

The hon. Member for Southampton, Test (Dr Whitehead) pointed out some of the challenges of onshore distribution using the rail and road networks, which have received a lot of investment, as my hon. Friend the Member for Romsey and Southampton North (Caroline Nokes) alluded to. The right hon. Member for Southampton, Itchen was not able to answer for the fact that ABP did not consult organisations such as Network Rail, the Department for Transport rail department or the Highways Agency when considering the land-side environmental impact assessment of its application. I am sympathetic to ABP’s point that it relied on the advice of the Marine and Fisheries Agency at the time, and hindsight is a great teacher. I am surprised that ABP relied on a fisheries agency to provide full planning advice and did not use its own advice to ensure that it had covered every aspect of the planning application, because it is experienced in doing such things.

My hon. Friend the Member for Gosport (Caroline Dinenage) mentioned meddling by a commercial rival. Let me provide a parallel example of what might happen if the law on regulation was not applied consistently. If the Football League brought in transfer conditions that Southampton football club had to apply, but Portsmouth was allowed not to follow the regulations, I can imagine the rows between Southampton and Portsmouth supporters. Members of Parliament would be equally frustrated about the lack of even-handedness. Although I appreciate that the emotions involved in football do not stretch to the technicalities of a planning application, the same issues are involved. Commercially, we want a consistent response from Government agencies.

[Caroline Dinenage]

I am in favour of any positive discrimination that involves Portsmouth football club. We are talking about the economic benefit to the whole of the UK. Leaving aside any commercial rivalries or geographical disputes, we have to look at jobs, economic prosperity and income, which are important for the future of UK plc.

[Dr Coffey]

I understand that perspective entirely, and I will address it briefly.

My hon. Friend the Member for New Forest East (Dr Lewis) has been inconsistent in his argument. He was very generous to Hutchison, especially regarding its advice on Dibden bay, which I remember well because I lived in Hampshire at the time. Again, the argument is about consistency, and ABP and Hutchison are united in saying that nobody objects to Liverpool’s having a cruise terminal, but it should be on equal terms. Both port operators share that position. I do not, therefore, accept that we are talking about different things, although the joy of being a politician is that our greatest competence has to be dealing with paradox.