Seafarers' Wages Bill [ Lords ] (First sitting)

Gavin Newlands Excerpts

Committee stage
Tuesday 17th January 2023 Public Bill Committees

[The Chair]

Copies of written evidence that the Committee receives will be made available in the Committee Room and will be circulated to Members by email.

We will now begin line-by-line consideration of the Bill. The selection and groupings list for today’s sittings is available in the room. It shows how the clauses and selected amendments have been grouped together for debate. Amendments grouped together are generally on the same or a similar issue. Please note that decisions on amendments do not take place in the order in which they are debated, but in the order in which they appear on the amendment paper. The selection and groupings list shows the order of debates.

Decisions on each amendment, and on whether each clause should stand part of the Bill, are taken when we come to the relevant clause. A Member who has put their name to the lead amendment in a group is called first; other Members are then free to catch my eye to speak on all or any of the amendments in that group. I ask Members to stand in the normal way if they want to speak on a particular amendment, including the SNP spokesman as well—that would be really helpful. A Member may speak more than once in a single debate.

At the end of a debate on a group of amendments, I shall call the Member who moved the lead amendment again. Before they sit down, they will need to indicate if they wish to withdraw the amendment or seek a decision. If any Member wishes to press any other amendment in a group to a vote, they will need to let me know in advance.

Clause 1

Services to which this Act applies

[Gavin Newlands (Paisley and Renfrewshire North) (SNP)]

I beg to move amendment 42, in clause 1, page 1, line 10, leave out “any kind” and insert “every description”.

This amendment would bring the definition of ship into line with that under the Merchant Shipping Act 1995.

[The Chair]

With this it will be convenient to discuss the following:

Amendment 67, in clause 1, page 1, line 11, at end insert—

‘“place in the United Kingdom” includes energy installations within the UK Exclusive Economic Zone.’

Clause 1 stand part.

Amendment 43, in clause 2, page 1, line 14, leave out paragraphs (a) and (b) and insert—

‘(a) who is employed or engaged in any capacity on board any ship providing a service to which this Act applies,

(b) whose employment or engagement on board the ship is carried out in relation to the provision of the service, and’.

This amendment would bring the definition of seafarer into line with the definition of “seaman” under the Merchant Shipping Act 1995.

Clause 2 stand part.

Amendment 48, in clause 4, page 3, line 18, leave out “or its territorial waters” and insert

‘, its territorial waters, or within the Renewable Energy Zone as specified by The Renewable Energy Zone (Designation of Area) Order 2004.’

This amendment would ensure that seafarers engaged in work supporting offshore wind installations are covered by Act.

[Gavin Newlands]

It is a pleasure to see you in the Chair, Mr Davies, and to lead this worthy but anaemic debate. On that basis, I hope that the Minister will be generous when discussing the amendments before us. The amendments are in my name and that of my hon. Friend the Member for Glasgow East.

A couple of these amendments are straightforward. Amendment 42 would change the definition of a ship or vessel, and amendment 43 would ensure consistency in the definition of a seaman. The amendments are intended to ensure that the legislation aligns with existing definitions of both “seaman” and “ships” in the Merchant Shipping Act 1995. I thank the Law Society of Scotland for highlighting these issues.

Having differing definitions in law between the Bill and existing legislation for no apparent good reason—although we will hear what the Minister says—does not seem to be a particularly efficient route to go down. After all, the workers that the Bill is intended to cover are already seamen under current definitions and, on the face of it, the Bill does not aim to change that.

Similarly, if there is already a legal definition of a ship in statute, it seems useful to maintain that definition here. Indeed, when the Bill was in the House of Lords, Baroness Vere made a similar point in relation to the definition of a harbour, pointing to the existence of the Harbours Act 1964. Therefore there should be no reason why a similar principle cannot apply in this case. If there are good reasons why a new definition specifically relating to the provisions in the Bill is needed, I will be happy to hear it, but logic would suggest that using the existing definitions would be far simpler.

Amendments 67 and 48 are designed to deal with the fact that workers operating in the renewables industry, which will be increasing exponentially in the coming years, are currently excluded from the Bill. There are two methods of dealing with that under the amendments. They relate to the UK exclusive economic zone and to the renewable energy zone. The exclusive economic zone almost entirely matches the renewable energy zone, save for an area just under 200 miles north-west of Cape Wrath and more than 100 miles north of North Rona. Because our proposal is aimed particularly at protecting those seafarers engaged in work supporting renewables installations in UK waters, it seemed more appropriate to try to use the renewable energy zone rather than the EEZ, but we have given both a try. If the Minister wants to accept either, I will be perfectly happy with whichever one he chooses.

At the moment, the Bill’s extent is limited to the UK and its territorial waters—that is, the 12 nautical mile limit. That excludes the EEZ and REZ, which go to 200 miles. Our proposal would simply ensure that ships and seafarers engaged in work to support renewables installations were not inadvertently omitted from enjoying legislative protection simply because those zones are not listed in the Bill while territorial waters are referred to.

I note that the Minister in the Lords, Baroness Vere, had to correct the record after incorrectly stating that these workers were already covered by national minimum wage legislation. Workers in the oil and gas industries are entitled to national minimum wage protection. It would be ludicrous if their colleagues doing the same difficult and dangerous job, but supporting renewable industries, were denied the right to protections and to national minimum wage equivalence. This is, on the face of it, a fairly minor proposal. However, it would help to protect thousands of workers—a number that we hope will grow hugely over coming years—and would ensure that renewables were not just better for the planet but better for our workers.

[Grahame Morris (Easington) (Lab)]

Would it be convenient to discuss amendment 67 at this point, Mr Davies?

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[Mr Holden]

I thank the hon. Member for his point. Everybody will be covered if on a boat that moves to and from those platforms at least 120 times a year, but the expansion of the UK’s exclusive economic zone to cover that area would bring, as other hon. Members have said, particular complexity regarding international maritime law. I will come to that when we address the amendments to clause 2.

[Gavin Newlands]

I hear what the Minister is saying—that workers will be covered under the Bill if they visit a harbour 120 times or more per year—but that might not be the case for some. Clearly, the hon. Member for Easington and I are not going to get what we desire in this Committee this morning. Would the Minister commit to the Department for Transport looking at this issue six months after the passage of the Bill to see who is actually being covered by the legislation?

[Mr Holden]

I will happily write to the hon. Gentleman before Report with any further details.

For the reasons I have set out, we cannot accept amendment 67, but I do understand the concern about the national minimum wage entitlement for workers on energy platforms in the EEZ. Offshore wind farms and the renewables sector are critical to meeting our net zero target. The Department for Business, Energy and Industrial Strategy regularly reviews the national minimum wage legislation to ensure that it is fit for the current workforce and businesses. We hope that this national minimum wage equivalence legislation will also reflect those changes over time as well.

[Mr Holden]

I thank my hon. Friend for that intervention—[Interruption.] I did not quite catch what the hon. Member for Glasgow East was saying from a sedentary position. My hon. Friend the Member for Ynys Môn raises some important points. I know she has been a massive campaigner, whether on that nuclear power station in her patch or, as she has raised more specifically today, on the issues around the freeport and the port of Holyhead, which is crucial for our work across the Irish sea. I can confirm to her that the sector is incredibly important, and we recognise how important such jobs are for her community and for coastal communities around the country. That is one of the reasons we are bringing forward this legislation today.

Clause 2 sets out what is meant by a non-qualifying seafarer. This is a person who

“(a) works on a ship providing a service to which this Act applies”—

as defined in clause 1—

“(b) whose work on the ship is carried out in relation to the provision of the service, and

(c) who fails to qualify for the national minimum wage in respect of that work merely because, for the purposes of the National Minimum Wage Act 1998, the person does not work, or does not ordinarily work, in the United Kingdom.”

Paragraph (c) clarifies why they are referred to as “non-qualifying”—they do not meet the criteria—and that is why they need the protection that this Bill provides.

I appreciate that the intention of amendment 43 is to bring the definition of seafarer into line with the definition of “seaman” under the Merchant Shipping Act 1995, as is the intention of the amendments to clause 1 in the name of the hon. Member for Paisley and Renfrewshire North. However, it is vital that we maintain consistency with the terms used in other employment legislation, such as the National Minimum Wage Act 1998 and the National Minimum Wage Regulations 2015. That is where the terminology in the Bill comes from.

There is a risk of incorrect interpretation if we were to accept the amendment, as it may lead to the Bill being interpreted differently from other employment legislation, which is not our intention. Therefore, we need to retain the word “work” in this Bill, rather than moving to “employed or engaged”, as the amendment seeks. There are lots of different connotations of the word “employed” in particular. I hope the hon. Member for Paisley and Renfrewshire North can see from what the Government are proposing that we do intend to cover all the issues he raises.

Amendment 48 seeks to extend the application of the Bill to the exclusive economic zone. Although we hope that appropriate wage rates will extend beyond our waters—indeed, we are having international conversations with partners, particularly those around the North sea, to try to ensure that—this Bill has been carefully calibrated after thorough consultation to focus on work undertaken close to the UK as part of ensuring that the Bill does not interfere with rights and obligations under international law, in particular the United Nations convention on the law of the sea. However, as discussed on amendment 67, seafarers on services from UK ports to offshore wind installations in the EEZ would be covered by the Bill for the portion of their journey that takes place in UK territorial waters, provided that the service calls at a UK port 120 times a year.

[Gavin Newlands]

I thank the Minister for his comprehensive response. I hear what he is saying on the definitions. The amendments on the definition of vessel and seafarer were intended as probing amendments to ascertain why there was a difference. We will keep an eye on any potential unintended consequences, but I will withdraw the amendment. I am disappointed by what the Minister said about those in the offshore renewable industry. I hear what he said: he thinks that they will be covered. He has promised to write to me before Report; if the issue is not dealt with satisfactorily, we may well revisit it on Report. However, on the basis of his answers and his promise, I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Clause 1 ordered to stand part of the Bill.

Clause 2 ordered to stand part of the Bill.

Clause 3

Power to request declaration

[Mr Holden]

I beg to move amendment 1, in clause 3, page 2, line 3, leave out subsections (1) to (3) and insert—

“(1) Subsection (2) applies where a harbour authority has reasonable grounds to believe that ships providing a service to which this Act applies will enter, or have entered, its harbour on at least 120 occasions during a relevant year.

(2) The harbour authority must, within such period as is determined by regulations, request that the operator of the service provide the authority with a national minimum wage equivalence declaration (in the rest of this Act, an ‘equivalence declaration’) in respect of the service for the relevant year.

(3) The duty under subsection (2) is subject to any direction given by the Secretary of State under section 11(2)(a).

(3A) A harbour authority which fails to comply with subsection (2) is guilty of an offence and liable on summary conviction to a fine not exceeding level 4 on the standard scale.”

This is the first of a number of amendments concerning national minimum wage equivalence declarations. Taken together, they impose a duty on harbour authorities to request declarations (as it stands, the Bill confers a power to do so). Declarations are to be requested in respect of years determined by regulations and must be provided within a period set out in regulations. Also, as a drafting change, “national minimum wage equivalence declaration” is abbreviated to “equivalence declaration”.

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[Mr Holden]

I thank my hon. Friend for those points. They are particularly important. I do not think that we would be here today if it was not for her huge campaigning efforts on behalf of her constituents in relation to the awful actions of P&O. I absolutely agree with her that how this is implemented must be taken into account. I am sure that her port will be consulted as part of the broader consultation as regulations are brought forward, and I urge her and other interested hon. Members to take part in the consultations as we move forward.

Amendment 1, tabled in my name, turns the discretionary power to request an equivalence declaration into a mandatory duty—this is quite an important change, which hon. Members mentioned at earlier stages—where the harbour authority has reasonable grounds to believe that ships providing a service will enter, or have entered, its harbour on at least 120 occasions during a relevant year. Reasonable grounds may include a service’s schedule in previous years, or may arise from the normal communications that a harbour authority would have with operators using its ports.

The period within which a harbour authority must request an equivalence declaration will be determined by regulations, which will come forward. A harbour authority that fails to comply with its duty to request an equivalence declaration will be guilty of an offence and liable on summary conviction to a fine not exceeding level 4 on the standard scale. The duty will be subject to directions made by the Secretary of State, which I will discuss in further detail when we come to clause 11, which has an important bearing on this aspect of the legislation.

This amendment is part of a larger set of amendments that will also make the formerly discretionary powers for harbour authorities to impose surcharges, and to refuse access to their harbour, into duties, which is something that Opposition Members raised extensively at earlier stages. As things currently stand, where a harbour authority does not exercise its powers in the circumstances provided for in the Bill, the Secretary of State has powers to direct harbour authorities to do that. We want to see it turned into a duty because, through continued engagement with port stakeholders, we have been informed that harbour authorities are unlikely to exercise their powers without being directed to, and the direction-making power actually was intended as a back-up power and was not intended to be used as the primary means of ensuring that the regulations are met and a minimum wage equivalent is paid. It would be a significant administrative burden on the Department if every instance had to have an imposition from the Secretary of State, and that would undermine the effective functioning of the legislation.

The change from discretionary powers to duties will strengthen the Bill by ensuring that harbour authorities must request declarations, impose surcharges and refuse access to their harbour where appropriate, without requiring the intervention of the Secretary of State at every juncture. The intention is that we will ensure that operators of services in the scope of the Bill are made subject to the requirements, and the process will be made simpler for harbour authorities.

Amendments 2 and 5, tabled in my name, are consequential on amendment 1. Amendment 2 expands the existing power in clause 3(4) by adding a new paragraph that allows regulations to make provision

“as to the period within which equivalence declarations are to be provided”

by operators. Where an operator does not provide an equivalence declaration within that period, the harbour authority must impose surcharges under the new clause 2. This ensures that the point at which their duty begins to apply is clear to harbour authorities.

Amendment 5 makes provision for declarations to relate to a fixed relevant year, starting on a date to be set out in regulations. Providing a fixed relevant year will ensure that harbour authorities and operators are all working to the same period, providing consistency and certainty for harbour authorities to comply with their duties, reducing administrative burdens and making enforcement much more straightforward.

[Gavin Newlands]

On amendment 5, was any thought given to the possible unintended consequence of setting a specified date in regulation, namely that it might allow operators to consider means of circumventing the legislation through port hopping? As was passed on to me, it is Nautilus’s belief that, for that reason, it should be a 12-month rolling period. Has the Department considered that?

[Mr Holden]

The hon. Gentleman makes a fair point. I will come to the broader concerns around port hopping that hon. Members have raised at previous stages. We do not think it will be an issue. I will come back to the hon. Gentleman at a later stage; if he continues to have an issue, perhaps he can raise it then.

Amendment 5 makes provision for declarations in a fixed year. These amendments are therefore necessary to ensure the effective functioning of the Bill, and will do just that.

Amendments 3 and 4, tabled in my name, abbreviate

“national minimum wage equivalence declaration”

to “equivalence declaration”—that is all. This is a minor drafting change intended to improve the Bill by simplifying a frequently used term.

Amendments 39 and 40 to clause 14 are consequential on amendments 1 and 5, and give the phrases “equivalence declaration” and “relevant year” the same meaning as in clause 3.

Amendment 7, tabled in my name, allows for equivalence declarations to be provided before, during or after the year to which they relate, and for declarations to relate to part of a year. The amendment will prevent any gaps in coverage in declarations and requires harbour authorities to request a declaration whenever it becomes clear to them that a service is in scope of the Bill. A harbour authority must request a declaration from an existing service before the relevant year starts if it has reasonable grounds to believe that a ship will call at its harbour 120 times during the year. In the event that, part way through a year, a harbour authority has reasonable grounds to believe that ships providing the service will have entered the harbour at least 120 times, it must request a declaration part way through that year, or at the end of the year if it was not clear until that point.

Amendment 6 removes subsections (5) and (6) of clause 3, which provide for the offence of operating inconsistently with an equivalence declaration. New clause 1 provides for an offence adapted to the proposed new system for equivalence declarations. Amendment 6 and new clause 1 therefore also cater for the fact that an equivalence declaration may, as a result of amendment 7, be provided before during or after the relevant year to which it relates.

Subsections (2)(a) and (3)(a) of new clause 1 mean it will be a criminal offence to operate a service inconsistently with a declaration from the start of the relevant year or at the time a declaration is provided during a relevant year. This will ensure that the new offence covers all circumstances in which an equivalence declaration may be requested, and provides legal certainty to operators as to when they may be guilty of an offence.

Clause 13 provides definitions of “harbour” and “harbour authority” that align with the definitions in the Harbours Act 1964 in England, Wales and Scotland, and the Harbours Act (Northern Ireland) 1970 in Northern Ireland. This will ensure consistency with existing legislation and help to clearly identify the relevant authorities for the purposes of the Bill. The clause also currently provides that where there is more than one harbour authority in respect of a harbour,

“the Secretary of State may by direction specify which of them is to be treated as the harbour authority in respect of the harbour”

for the purposes of the Bill. This provision is intended to avoid any uncertainty as to which is the relevant harbour authority for a particular harbour, and avoid multiple harbour authorities exercising powers in respect of a single service, which will help to ensure that the Bill’s provisions are applied consistently and effectively.

[Gavin Newlands]

I thank the Minister for giving way once again. Perhaps I should have intervened slightly earlier, as I have a query about amendment 7. The amendment allows for declarations to be made for part of the year. As it stands, declarations relate to 120 visits a year. If it is a partial year—say six months, for ease—will it still be 120 visits over those six months, or will it be a pro rata number of visits for that partial period?

[Mr Holden]

My understanding is that it is for the whole year. The schedules for these operators are based on a whole year; it is very rare that they are not. These are big operations that do not dip in and out. They are not easy to set up; they often involve long-standing arrangements with port authorities, and are based on the whole year. However, if the hon. Gentleman would like to write to me following this sitting, I will obviously respond to any particular issues or examples he wishes to raise.

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[David Linden]

I am grateful to the hon. Gentleman for making that point, which gets to both the nub of the issue and a source of real concern for me. He is right to talk about the colander effect, and not making the legislation sufficiently tight means that in many cases companies will exploit the measure, as has he eloquently outlined. Let us be honest: the legislation was introduced because a company sought—within the law—to exploit people, and it would be a dereliction of duty by the House and by the Committee if we did not seek to tighten the Bill in such a way as to ensure that industry cannot get away with using such practices.

[Gavin Newlands]

My hon. Friend has referred to the House of Lords, but on Second Reading in this place, the Secretary of State said in terms of the number of visits to harbour:

“We think the definition in the Bill at the moment will capture the vast majority of the services we wish to capture.”—[Official Report, 19 December 2022; Vol. 725, c. 66.]

The Secretary of State referred to “the vast majority”, but this relates to the national minimum wage. Why should we be happy with a majority, rather than ensuring that all employees get the minimum wage?

[David Linden]

Even if people were not around last night, it will not come as a huge surprise that the Government are not particularly wild about standing up for workers’ rights. We on this side of the Committee happen to be of the view that we should be doing everything we can to try to support workers—[Interruption.] The hon. Member for Crewe and Nantwich chunters. I am more than happy to give way if he wants to stand up and speak. If he wants just to make a wee bit of noise behind the Minister, he is welcome to do so.

We support returning to the stricter criterion of 52 calls per year, which is what amendment 45 seeks to do. This is a key test of the Government’s commitment to seafarer welfare, and they failed in the Lords when they narrowly defeated Lord Tunnicliffe’s amendment that aimed to restore the criterion of 52 annual harbour calls.

National minimum wage and domestic employment law are difficult to enforce and apply in the maritime sector. That is why employers such as Stena Line, which employs UK crew on international routes from UK ports in Cypriot-registered vessels, enter collective bargaining agreements with domestic maritime trade unions. The UK Chamber of Shipping estimated that up to 45 major ferry routes served the UK economy in 2020, but that is subject to change. For example, P&O closed Hull-Zeebrugge in October 2021, but DFDS opened an unaccompanied freight service between Sheerness and Calais earlier that year.

In my view, the Bill should cover crew working for operators of containers, bulk carriers, cargo ships and vessels working in the offshore energy supply chain, as well as ferries. In 2018, the RMT estimated that extending the national minimum wage to cover domestic and offshore energy routes would bring 13,000 seafarer ratings into scope. The impact assessment for the Bill estimates only the cost to employers, not the number of seafarers who would be covered by the Bill.

I am concerned that the Government have dismissed out of hand the unions’ concerns over avoidance techniques. Port hopping, as we often refer to it, remains a genuine avoidance technique that becomes far easier to use the more frequently a vessel calls at a UK harbour. At 120 calls per year, it would be far easier for operators to make minor changes to scheduled port calls in order to avoid the legislation. A threshold of 52 calls, which was in the Government’s original proposals, would be far tighter. It was changed only after consultation with industry, although the trade unions supported 52 calls. I go back to the point that if the Bill is about protecting workers—the very workers who were so cruelly shafted by P&O—then it is incumbent on the Government to listen to the voices of those workers and trade unions, not the voices of industry. That is the whole reason we are here.

Disappointingly, the Minister in the Lords, Baroness Vere, was unconvinced that that avoidance technique could be used. She said:

“I do not think operators would play switcheroo with UK ports because, frankly, their customers would not put up with it.”—[Official Report, House of Lords, 26 October 2022; Vol. 824, c. 1506.]

The translation of that is, once again, “Leave it to the markets. The markets will dictate.” If we have learned anything over the course of the last few months in this House and during the P&O debacle, it is that simply leaving it to the markets is not a great idea. I am not reassured that the logistics market will self-regulate. The recent merger between Cobelfret and Seatruck Ferries, two operators who have been paying seafarers below national minimum wage on regular international services from UK ports for years, frankly, also increases the prospect of avoidance techniques.

I hope that has outlined just some of our concerns on the issue. For those reasons, I will formally seek to divide the Committee and vote against Government amendment 1.

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[Mike Kane]

I rise to speak in favour of amendment 63 and new clause 8. My hon. Friend the Member for Wakefield gave specific examples of deductions made by Irish Ferries and P&O; as he said, this is all about compliance. In his nine-point plan, the right hon. Member for Welwyn Hatfield (Grant Shapps), now the Business Secretary, pledged to involve His Majesty’s Revenue and Customs in ensuring compliance with minimum wage legislation, but the Bill does not include a direct role for HMRC, which is the only expert in minimum wage compliance. That is like delegating something to a port and harbours board, to the Maritime and Coastguard Agency or to anybody, but it is not the Government taking responsibility for the matter. That clearly must be addressed, and I ask the Minister to address it. Port operators are not experts in minimum wage compliance or in establishing whether the minimum wage is being properly enforced.

Maritime and Coastguard Agency officials will need to be trained in labour market enforcement issues, and HMRC national minimum wage enforcement officials will need to be trained in seafarer and maritime employment practices and law. What provision is there in the Bill for that? I do not see much at all. However, the Department for Transport told the trade unions that His Majesty’s Revenue and Customs has stated that there is no disproportionate risk of seafarers not being paid the national minimum wage. If this is not enforced properly, it is wide open, and I think most Members with any common sense will think it is wide open. On 24 March, Peter Hebblethwaite, the former chief executive officer of P&O Ferries, openly admitted to a joint sitting of the Transport Committee and the Business, Energy and Industrial Strategy Committee that P&O Ferries was paying an average well below the national minimum wage. How does clause 5 tackle what Peter Hebblethwaite said to this House?

Amendment 63 would ensure that an inspector may request from His Majesty’s Revenue and Customs or the Maritime and Coastguard Agency such information as is necessary to ensure that the operator is compliant with the national minimum wage. Further, complaints of non-payment of the national minimum wage have been consistently submitted to His Majesty’s Revenue and Customs. [Interruption.] I am slightly interrupted by the right hon. Member for South Holland and The Deepings—that will be His Majesty’s Revenue and Customs on the phone right now, agreeing with my comments to the Committee. Complaints have been submitted by the RMT on behalf of foreign seafarers, but the third-party process does not require His Majesty’s Revenue and Customs to report back on the outcome or progress in investigating those complaints. How will we, as elected Members, and the industry see how the measures in the Bill progress once they have been implemented by Parliament? There is no provision for that. Amendment 63 would ensure a timescale for response of 14 days, so that the outcome of the measures in the Bill will be crystal clear and transparent.

[Gavin Newlands]

I rise to support amendment 63. Given the stroppy point at the end of the Minister’s last contribution, I reassure him—[Interruption.] Oh, it was a humorous point; well, that is for each individual to judge. I point out to the Minister that the right hon. Member for Epsom and Ewell (Chris Grayling) has been retained as the Scottish Government’s ferries tsar from now on, so we will not have to worry about that. For the purposes of Hansard, that was sarcasm, lest I have to correct the record at a later date.

The point that has just been made is essentially this: as the Bill currently stands, the Government are hiding behind harbour authorities by expecting them—and with the amendments before us, now compelling them, under fear of prosecution—to carry out the enforcement work. Given the complex nature of the issues we are dealing with, I understand what the Government are doing, but maritime employment rules and minimum wage rules are complicated.

The Maritime and Coastguard Agency will need to be trained in labour market employment issues. HMRC employment enforcement officials responsible for enforcing the minimum wage will need training in seafarer and maritime practices and maritime law. Additional resourcing and time will potentially be needed to make this work. The MCA is responsible for the enforcement of the Bill’s powers, but is not named or listed in clause 6 or anywhere else. A dual role for the MCA and HMRC national minimum wage inspections must be clearly established, otherwise the Bill could have unintended consequences for qualifying seafarers’ existing national minimum wage rights.

The nine-point plan included a specific action to ask HMRC to dedicate UK national minimum wage resource to the maritime sector. The Department for Transport has told trade unions that HMRC has since stated that there is no disproportionate risk of seafarers not being paid the national minimum wage. I have no clue how it has come to that conclusion, given everything that has gone on, and that statement is despite Peter Hebblethwaite’s open admission to the joint Select Committee on 24 March that P&O ferries are now paying an average well below the national minimum wage, not to mention the evidence amassed by the RMT and detailed in annex 2 to its briefing.

The Government should consider using redundant Brexit customs processing facilities built at great expense in ports that host operators and vessels in scope of this Bill to provide bases for the inspectors from the MCA, HMRC and the International Transport Workers’ Federation, which will assist in the enforcement of the legislation. The MCA and the ITF perform essential port state control functions to protect and uphold minimum international seafarer welfare standards in the maritime labour convention. It is for that reason that we support new clause 8 in the name of the hon. Member for Easington.

I suspect the Government may not accept the new clause, but it would be pretty obscene if we were to see evidence of nationality-based pay discrimination. We very much support the new clause. I hope the Minister is generous, for a change.

[Grahame Morris]

I support the arguments put forward by my colleagues on the Front Bench. Will the Minister give some clarification? I noted what I thought was an assurance in his comments. Our amendment 63 is an attempt to make the enforcement process clearer, in terms of ensuring that the inspectors have the requisite not just powers but information, from HMRC in particular, in order to carry out the task that the Bill assigns to them. I wonder whether the Minister could clarify—maybe I am missing something; I heard him say that it would be the Maritime and Coastguard Agency that would be the inspectors. Could that function be delegated to the harbour authority or to staff of the harbour authority acting on behalf of the MCA? I would appreciate if he could clarify that point in his summing up.

Nationality-based pay discrimination is the elephant in the room. We must get to grips with it. I realise that the issue is incredibly complicated because of international treaties, but we need to get to the kernel of the issue because this is what is happening. Unscrupulous ferry operators in the sector are displacing UK-based seafarers on a “fire and rehire” basis, which Labour finds anathema.

There were Conservative MPs who were incandescent at the tactics employed by P&O Ferries on 17 March—St Patrick’s day—in that terrible action it took. We must see if we can address that, and the hon. Member for Paisley and Renfrewshire North made a good suggestion about using the expertise from the International Transport Workers’ Federation as part of the collective effort, particularly where the issues relate to seafarers from overseas. I wonder if the Minister might consider not only that, but the suggestion to use the facilities that were built—at some cost to the public purse—for the Brexit customs processing facilities and consider whether those not being used adequately could also be used for that purpose.

[Mr Holden]

I would like to provide some clarification on the points made initially by the hon. Member for Easington. The Maritime and Coastguard Agency is the relevant enforcement agency, not the harbour authority. Furthermore, it would be unlawful to delegate powers in this space to harbour authorities, so I wanted to make that clear. In response to a point made by the hon. Member for Paisley and Renfrewshire North, the Maritime and Coastguard Agency does not need to be named in the Bill because it enforces on behalf of the Secretary of State. This is normal drafting for Government agencies that are subsidiaries of Departments.

The Department has obviously engaged extensively with HMRC on this issue. The truth is, as this is not enforcing national minimum wage legislation but trying to get the national minimum wage equivalent, the amount of information that HMRC holds in respect to many of these people is either nil or incredibly limited, as many of them will not be UK taxpayers. HMRC has been clear that it is happy to share anything it can to make enforcement easier, but it is not in the exact same space. HMRC already enforces national minimum wage for seafarers who qualify for it, but within this legislation we reflect that much of that falls out of the normal scope of UK legislation.

[Gavin Newlands]

On that point, if I can refer back to the point I made in my speech, does the Minister agree with HMRC—despite all the evidence to the contrary: not just P&O, but many other operators—that there is no disproportionate risk of seafarers not being paid the national minimum wage? Does he think that that is credible?

[Mr Holden]

Sorry, could I ask the hon. Member what the disproportionate risk was in reference to?

[Gavin Newlands]

Of seafarers particularly not being paid the national minimum wage compared to other sectors.

[Mr Holden]

Part of the issue here is that we are trying to address the national minimum wage equivalence. This is beyond normal UK territorial extent, which is the issue at stake here, which is why we are doing legislation that goes beyond our normal boundaries and does butt up against some of those international maritime obligations that we have, whether that is the case for inland ferries or anything else within the UK. I am not an expert on what HMRC has said, but I assume that what it has said is correct. I imagine there are other elements in the broader economy, where perhaps there are greater language barriers and piecework, where HMRC targets the normal national minimum wage legislation and where it sees the greatest abuses. That is why I am sure HMRC is quite clear in its thinking.

I urge Members, based on what I have said in response to the amendments, to withdraw them, and, if not, to support the Government and vote down the Opposition’s amendments.