Marine Training and Employment (River Thames)

Ed Davey Excerpts

Friday 22nd October 2010 Commons Chamber

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Mr Edward Davey)]

I congratulate my hon. Friend the Member for Bermondsey and Old Southwark (Simon Hughes) on securing the debate. It is typical of him that, having made a promise to his constituents at the time of the general election, he is already mounting a very effective campaign. I hope that, working with the Mayor of London and others, he will be able to achieve his aims.

It has always been a privilege to work with my hon. Friend. I have campaigned with him in his constituency, and it is quite humbling to knock on doors and find that, apparently, everyone knows Simon and has been helped by him. He is held in huge regard by his constituents, and, of course, by many in the House. When I worked as an adviser to the Liberal Democrat party before being elected to Parliament, I worked with him on issues such as the environment and employment. It therefore comes as no surprise to me that he is currently campaigning for employment on the River Thames for his constituents.

I hope that my hon. Friend will forgive me if I cannot answer every point that he has raised, not least because some were directed at the Department for Transport—although I shall try to assist to a small extent—but also because I am standing in for the Minister for Further Education, Skills and Lifelong Learning, my hon. Friend the Member for South Holland and The Deepings (Mr Hayes). However, I hope that I can reassure him about some of the issues that he mentioned, and, indeed, encourage him in his campaign. As he said, I represent a London constituency that borders the Thames. Indeed, I live five minutes from the Thames, where there is a small boatyard, Harts Boatyard, as well as a firm called Turk Launches and many pleasure and leisure activities.

My hon. Friend’s point about the river’s potential for improving our economy was extremely well made. I share his interest in how we can harness the river's considerable potential to fuel economic growth and provide jobs, especially for our young people, in the marine industries. As he said, the Thames already plays a significant role in the economy of London and the south-east. The port of London, for example, is estimated to contribute £3.7 billion a year to the economy. As he said, the port handles over 50 million tonnes of cargo, from fuel to food, cars to containers. It sustains people in a diverse range of employment—manufacturing workers, cargo handlers, drivers, warehouse staff and ships' agents, to name but a few.

In addition, the Thames is growing in importance as a means of transporting commuters and indeed tourists around London. According to Transport for London, the number of passenger journeys has risen substantially in just two years—from 2.75 million in 2006-07 to 3.9 million in 2008-09. That confirms the need for investment in skills, so that that growing activity can be serviced in the way my hon. Friend talked about.

I am sure that my hon. Friend is aware that there are ambitious plans to increase the Thames area's already substantial economic contribution. The London Gateway scheme, headed by DP World, is delivering £1.5 billion of inward investment to build a new deep-sea container port and Europe's largest logistics park. The development, at Stanford-le-Hope in Essex, is the most significant port development in the UK in the past 20 years. London Gateway is the single largest job-creation project in the UK today. It is expected to deliver 36,000 direct and indirect jobs, and contribute around £3.2 billion to the UK economy. Those are developments that I am sure my hon. Friend will welcome.

It is essential that we equip people, particularly our young people, with the skills that they will need to take advantage of those and other job opportunities in the marine industries along the Thames. World-class skills are the bedrock of sustainable economic growth. That was why I was pleased that in the comprehensive spending review this week the Chancellor of the Exchequer announced increased funding for apprenticeships. The Government will boost spending on adult apprenticeships by up to £250 million by the end of the CSR period to create an additional 75,000 apprenticeship places. I hope and believe that the creation of new jobs and apprenticeships in marine industries in the River Thames basin can benefit from that investment.

The Maritime Skills Alliance, a sector body that works to increase training opportunities within the sector, has recently developed a level 2 maritime apprenticeship. Many of the MSA's members operate along the Thames and it will be encouraging them to offer the apprenticeship to new recruits.

Port Skills and Safety, the industry body that includes the Port of London Authority among its members, is developing a level 2 stevedoring apprenticeship, which it hopes to implement soon. North West Kent college, based at Gravesend, will be a major provider of these new maritime apprenticeships, as well as offering bespoke courses to meet the needs of specific companies. Of course we should not forget the 2012 Olympics and the opportunities that the games will create. Transport for London expects that river transport will play an important role in taking spectators to and from venues. All those opportunities and developments within the apprenticeship sector will speak to my hon. Friend’s desire to provide those skills to his constituents, so that they can have jobs along the Thames.

[Simon Hughes]

I am encouraged and it is helpful to get these things on the record. I hope that colleagues in Government will be positive about promoting and boosting those things. I hope that my hon. Friend the Minister might reflect on the fact that one of the things that we still need to do is to provide sites for shipbuilding and boatbuilding. Most of the vessels—the Queen Elizabeth was launched by the Queen the other day—are built abroad now, rather than in this country. If we have the skills and traditions, with the space available, we should seek to build more of our own river-based and other ships here, rather than having to buy them abroad and only maintaining them here.

[Mr Davey]

Although I cannot promise my hon. Friend that we will have a rebirth of the shipbuilding industry on the Thames to the extent and capacity that he has talked about, I share his view that we must support companies that are connected with those issues—repair stations, boatbuilders and manufacturers—so that we can develop that skilled work force. As my hon. Friend is probably aware, the Greater London Authority is working with the Port of London Authority to identify sites for new boatyards, and although they may not be of sufficient size and capacity to accommodate international ocean-going liners, we certainly hope and expect they will be successful in delivering new sites.

The National Apprenticeship Service has identified manufacturing and engineering as two of its target sectors. It will be working with employers and training providers to make additional apprenticeship places available where there is local demand both in the Thames area and nationally. These various initiatives are a good start, but more can be done, which is what my hon. Friend is striving to achieve. I therefore welcome the news that next week NAS London, the GLA and the Sector Skills Council for Science, Engineering and Manufacturing Technologies are meeting to discuss exactly this issue. My hon. Friend’s debate is therefore timely.

Local authorities also have an important role to play in working with local businesses to generate new economic opportunities for their areas. That is why we are introducing local enterprise partnerships, putting in place a structure that will support this vital collaboration and enable boroughs such as Southwark to work with their businesses to focus on economic priorities, including unlocking the untapped economic potential of the Thames.

My hon. Friend and the hon. Member for Vauxhall (Kate Hoey) talked about boatmen’s licences, and I know from discussions I have had with my own constituents who work on the Thames that there has been concern about the changes to the regulations in recent years. My hon. Friend and the hon. Lady will know that these changes arose in part from a need to react to changes in a European Union directive, and this has not been without its challenges. It would be wrong for me to go into too much detail because I am not the Minister with responsibility, but I will ask colleagues at the Department for Transport to respond in detail to the concerns raised. I am not sure whether there is an easy or quick solution, but the fundamental point that has been made is that we must not allow regulations to get in the way of our making sure our young people can have careers on the river, and navigate its dangerous waters safely in the service of Londoners and the many people who visit our capital city. Everyone knows that we have to put health and safety right at the heart of our strategy for using the Thames—my hon. Friend better than anybody given the work he did after the tragedy of the sinking of the Marchioness. We must work with trade unions and local authorities to try to ensure that we have a sufficient supply of boatmen who can provide that critical service. Without their skills we will not be able to make the most of the economic potential of the river; they are central to our strategy for unlocking that. My hon. Friend is absolutely right to focus on the skills element, therefore.

It is of relevance that the Government are taking bold steps on apprenticeships. We have made it a central part of a very difficult spending review to ensure that apprenticeships, further education and adult education remain as strong as possible despite the difficult financial situation. That speaks to a number of agendas including social justice as well as the one my hon. Friend talked about. He has always strongly argued that the FE sector often provides training and education opportunities that other parts of our education system do not, in that, along with adult education, it gives people a second chance. He is right to highlight that.

I hope that I have given my hon. Friend at least some cause for hope. I and my colleagues across the coalition will be very happy to work with him to try to make sure that his campaign is successful. The coalition is committed to building the economy and spreading economic opportunity both on the Thames and across London and the country.

Question put and agreed to.