Transport

Debate between Grahame Morris and Richard Holden

Monday 17th July 2023 Ministerial Corrections

[Grahame Morris (Easington) (Lab)]

Can I ask the roads Minister about the lower Thames crossing project? In particular, what steps is the DFT taking to ensure that companies such as Murphy Group respect basic workers’ rights to join a trade union when bidding for major transport contracts?

[Mr Holden]

The Minister of State, Department for Transport, my right hon. Friend the Member for Hereford and South Herefordshire (Jesse Norman), who is the Minister for the future of transport, met Murphy Group this week.

[Official Report, 13 July 2023, Vol. 736, c. 491.]

Letter of correction from the Under-Secretary of State for Transport, the hon. Member for North West Durham (Mr Holden).

An error has been identified in my response to the hon. Member for Easington (Grahame Morris).

The correct response should have been:

Oral Answers to Questions

Debate between Grahame Morris and Richard Holden

Thursday 13th July 2023 Commons Chamber

[Mr Holden]

I thank my hon. Friend for his work in this area and across a number of areas in transport. We are looking in depth at driver welfare, including providing extra lorry parks and more secure facilities, and grants are due to be announced in the summer.

[Grahame Morris (Easington) (Lab)]

T7. Can I ask the roads Minister about the lower Thames crossing project? In particular, what steps is the DFT taking to ensure that companies such as Murphy Group respect basic workers’ rights to join a trade union when bidding for major transport contracts?

[Mr Holden]

The Minister of State, Department for Transport, my right hon. Friend the Member for Hereford and South Herefordshire (Jesse Norman), who is the Minister for the future of transport, met Murphy Group this week. The Government remain committed to the lower Thames crossing as part of the responsible decisions taken to help meet inflationary pressures and balance the nation’s books. We will be rephasing construction on the LTC by two years, as this will allow more time to take into account stakeholder views and to ensure that there remains an effective and deliverable plan that is in the best interests of taxpayers.

Seafarers’ Wages Bill [Lords]

Debate between Grahame Morris and Richard Holden

Tuesday 7th February 2023 Commons Chamber

[Mr Holden]

It is a pleasure to report to the House, to move Government new clause 3, to speak to the other amendments and to be able to listen to the important debate we will have on the Bill’s remaining stages. Over the past few months, the Bill has been subject to scrutiny and debate not only in Committee but through the ongoing debate in this House and in the other place. I am pleased that we are moving forwards together towards seeing this important legislation on the statute book and seafarers seeing the benefit of increased wage protection. I will first introduce the new clause and a number of the amendments introduced by the Government.

The first group—amendments 5, 6, 7, 9, 10 and 23 —relates to the powers to request information from harbour authorities to monitor their compliance with their duties under the Bill. New clause 3 provides the Secretary of State with the power to require harbour authorities to provide information for the purpose of establishing whether, or to what extent, they are complying with their duties under the Bill. In practice, this power will be used by the Maritime and Coastguard Agency. Subsection (2) of the new clause provides an indicative list of the sort of information the MCA might require in order to establish whether a harbour authority is complying with its duties, including information about equivalence declarations and surcharges. It will be an offence for a harbour authority to fail to provide the information required in the manner and within the period specified by the Maritime and Coastguard Agency, to provide false or misleading information, or not to inform the Secretary of State within four weeks if the information becomes false or misleading. The penalty for this offence is an unlimited fine in England and Wales and a fine not exceeding level 5 in Scotland and Northern Ireland.

This new clause is necessary following amendments made in Committee that mean that harbour authorities are now under a duty to request declarations, impose surcharges or refuse access to their ports in the circumstances set out in the Bill. It is a criminal offence for a harbour authority to fail to comply with these duties. The new clause will therefore ensure that the Maritime and Coastguard Agency has the necessary information to carry out its enforcement role and to bring prosecutions if necessary, in line with its powers of enforcement of operators in clause 6.

Government amendments 5 and 23 and subsection (3) of new clause 3 all relate to savings for data protection regulation, making it clear that the Bill is not intended to override any existing data protection obligations. Subsection (3) of new clause 3 provides that a requirement to provide information

“does not require a harbour authority to provide information to the extent that doing so would cause the authority to breach the data protection legislation”.

The data protection is defined by amendment 23 as having

“the same meaning as in the Data Protection Act 2018”—

that is, all relevant UK data protection legislation.

Amendment 5 makes it clear that the data protection saving in clause 6(3) applies in relation to the UK’s data protection legislation as well as to the data production laws of other countries or territories. In new clause 3(3) and clause 6(3), the amendments clarify that in determining whether the provision of information would cause a breach of the data protection laws, the requirement imposed by subsection (1) of the clause is to be taken into account. This is to make it clear that the disclosure of information may be authorised when pursuant to a legal obligation.

It is an offence under clause 6(5) of the Bill for an operator to fail to provide information required to the Secretary of State or, in practice, the Maritime and Coastguard Agency. However, at present clause 6 does not specify the time within which this information is to be provided, as several hon. Members pointed out in Committee. Amendments 6 and 7 will therefore make it explicit that the Maritime and Coastguard Agency can specify the period within which the information must be provided, and that it is an offence for the operator to fail to provide the information within that period and in the manner specified. The same applies for requests for information from harbour authorities under new clause 3. These amendments will provide greater clarity for harbour authorities and the Maritime and Coastguard Agency.

Amendments 9 and 10 are linked to new clause 3 in that they extend MCA enforcement powers in consequence of Government amendments made in Committee to impose duties and corresponding criminal offences on harbour authorities. These amendments will extend the powers in clause 7 for inspectors to board ships or enter premises for the purpose of establishing whether harbour authorities are complying with their duties or to verify information provided under new clause 3. These amendments will allow the MCA properly to enforce the duties on harbour authorities and to bring prosecutions where necessary if the duties are not being complied with.

The next group of Government amendments relate to new offences for false and misleading declarations. As currently drafted, an operator commits an offence under clause 5 in two broad circumstances: first, where it provides an equivalence declaration and the service is operated inconsistently with that declaration at the time that it is provided, or from the beginning of the relevant year if that is later; and secondly, where an operator provides a declaration and subsequently starts to operate the service inconsistently with the declaration and fails to notify the harbour authority of that fact within four weeks.

Clause 5 does not currently cover circumstances where a declaration is provided during or after the relevant year, and the service was operated inconsistently with the declaration for a period of that year in the past, such that the declaration is false or misleading at the time it is provided. This is why I have tabled amendments 2 and 3, which create a new criminal offence where an operator provides a declaration that is false and misleading in so far as it concerns the operation of the service before the declaration was provided.

Amendments 4 and 8 are consequential on this new offence and extend the Secretary of State’s enforcement powers to include establishing whether a declaration is false or misleading. In practice, enforcement will be carried out by the Maritime and Coastguard Agency. Amendment 4 extends the purposes for which the Maritime and Coastguard Agency may require an operator to provide information under clause 6 to include establishing whether an equivalence declaration is false or misleading in so far as it concerns the operation of the service before the declaration was provided.

Amendment 8 extends the power in clause 7 to provide that inspections of ships or premises may be carried out for the same purpose. Related to that, amendments 11 to 14 provide that harbour authorities must impose surcharges on an operator if they have reasonable grounds to believe that an equivalence declaration provided by the operator is false or misleading about the time before the declaration was provided. That mirrors the approach taken when an operator provides a declaration and the harbour authority has reasonable grounds to believe that the service is or was being operated inconsistently with that declaration, ensuring that surcharges are imposed in both circumstances.

Taken together, these amendments strengthen the enforcement of the Bill and will mean that operators that seek to pay their seafarers a rate lower than the national minimum wage equivalent cannot avoid the consequences through such dishonest means.

[Grahame Morris (Easington) (Lab)]

I am grateful to the Minister for these amendments, as the issues to which they relate were raised by Opposition Members in Committee and on Second Reading. What is the position on the fines? Does he remember our discussion about whether level 4 fines are enough of a deterrent? A level 5 fine is unlimited and may be a greater deterrent, although the Secretary of State will still have discretion on whether to apply it.

[Mr Holden]

I was about to address those amendments. After the hon. Gentleman and other hon. Members raised this in Committee, I said that I was looking at it.

--- Later in debate ---

[Mr Holden]

Well, 120 is what has been discussed broadly in the past few weeks. Opposition Members have tabled no amendment for any proposal except 52 or 120. That is why we are discussing 120. A once-a-week service could be in the UK’s waters for a matter of hours every week, when the minimum wage equivalence would apply, and it may be calling at multiple foreign ports before it gets here. Obviously, questions of international maritime law start to arise in those circumstances, as do our relationships with other countries, which are looking at this and at where these ships may operate from.

[Grahame Morris]

We have to agree to disagree on this point. The National Union of Rail, Maritime and Transport Workers has estimated that the 2020 legal extension of the national minimum wage equivalent entitlement to all seafarers on domestic routes and on routes from UK ports to offshore oil and gas installations, which are not included in the scope of the Bill, would benefit a maximum of 13,000 seafarers—I refer to ratings grades—regardless of the number of port calls. So the issue of port calls is fundamental to whether this Bill will be fit for purpose—in other words, whether it will meet the Government’s basic requirement to protect UK seafarers on these short sea routes.

[Mr Holden]

I will come later to the hon. Gentleman’s point about offshore workers in the energy sector. If the proposal were 52 weeks, we would be including services that were in UK waters for only a matter of a few hours a week. We think that would be a disproportionate measure and it would not address what we are trying to address, which is short-service ferry operations. They are the major point of concern. If we include other services, we move swiftly into international maritime law.

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[Grahame Morris]

I am grateful to the Minister for giving way. I wish him every success in his bilateral negotiations with the French Government and other seafaring nations. Let me turn to the point made about the litmus test of the success of this Bill. Without placing in the Bill the seafarers charter, which addresses not just minimum wage equivalence but roster patterns and all the other things that allowed rogue employers such as P&O Ferries and Irish Ferries to commit the terrible action that took place almost a year ago, would this Bill prevent such action? I am afraid that the answer is no. It fails the litmus test.

[Mr Holden]

I do not agree with the hon. Gentleman; I do not think that the Bill fails the litmus test at all. It is clear that what we are trying to do is protect seafarers with major connections to the UK, and that is exactly what the Bill does.

On the personal liability of directors, the existing criminal offences in the Bill will have serious commercial and reputational impacts, particularly now that we have included unlimited fines, so I do not think that the new clause is necessary. Plus, the Insolvency Service is currently undertaking a civil investigation into the P&O situation, which shows that these things can be addressed, as set out in the Company Directors Disqualification Act 1986. I request that the new clause be withdrawn.

On the role of the Maritime and Coastguard Agency, I would like to assure the House that new clause 5 is unnecessary. The Bill does not refer to the MCA by name. That is because it is an executive agency of the Department for Transport and will be covered by the legislation.

In relation to amendment 30, we seek to make energy installations within the UK exclusive economic zone a

“place in the United Kingdom”

for the purposes of the Bill. The key point here is that we understand the concern in this space. Offshore wind farms and the renewable sector are critical to meeting our targets. The Department for Business, Energy and Industrial Strategy regularly reviews the national minimum wage legislation to make sure that it is fit for purpose in the current situation. We hope that that will be covered in that.

Similarly, turning to amendments 31 and 32, we hope that pension entitlements and deductions for food and accommodation will be covered in the seafarers charter, which will be brought forward shortly. Although we support the intention of the amendments, it is right that the detail, particularly on food and accommodation, is set out in secondary legislation, which is where we intended it to be, in order that we get it right for this complex matter. We will hold a public consultation on the draft regulations before the Bill receives Royal Assent.

I believe that I covered the refusal of access exceptions in amendments 36 and 37 extensively in Committee, which made it very clear that we are in a very sensible place on both those issues.

I thank hon. Members for their contributions to this debate. I hope that it is clear from my responses that I have been open to amendments and that the amendments tabled by the Government have also made that clear. I understand that some Members would have liked us to have gone further, but the scope of the Bill has been intentionally tightly drawn to target action on the specific issue of wages for seafarers with close ties to the UK. We introduced this Bill at great pace following the P&O scandal, and it is by keeping the Bill tightly focused that we have been able to take such prompt legislative action. The Government have, however, still been progressing their nine-point plan for seafarers’ protection, and I hope that Members will welcome the progress that we have made, particularly in our co-operation with the French Government on these issues.

The compliance and enforcement mechanisms of the Bill have been carefully designed, and I hope that hon. Members will note the improvements that have been made both on Report and in Committee, which include suggestions from them. The compliance process is a carefully drawn balance between harbour authorities and the MCA on behalf of the Secretary of State. We have been engaging actively with ports and stakeholders and will continue to do so as we develop secondary legislation. We are confident that the combination of surcharges, refusal of access and criminal offences will ensure that operators pay seafarers on services in the scope of the Bill at least the national minimum wage equivalent. I am pleased that the Bill has reached this stage in its passage and look forward to seeing it on the statute book.

[Mike Kane (Wythenshawe and Sale East) (Lab)]

I rise to speak to new clause 2, which stands in my name and those of my hon. Friends. The new clause would ensure that the Bill contains sufficient checks and balances so that it does what it is intended it does. We support the premise of the Bill and have suggested amendments to strengthen it. We do not want a toothless Bill that is wide open to abuse by bad bosses. The Bill attempts to address the problems of seafarer welfare and is intended to cover services with close ties to the UK that make regular port-to-port international voyages and arrive on our shores throughout the year.

The Bill is not merely about pay; it is also about conditions, pensions and roster patterns. It is the first piece of primary legislation on this subject since the Merchant Shipping Act 1995. Its scope must be broadened and protections put into the Bill. The easiest way to measure the efficacy of the Bill is to require the Government to report on the additional conditions, specifically those relating to the seafarers welfare charter. Regrettably, that charter, which is the Government’s preferred option for setting minimum conditions for rostering, pensions and other aspects of seafarer employment, has been voluntary and progress has stalled. The Minister said that he is co-operating with the French, which is good to hear, but as my hon. Friend the Member for Easington (Grahame Morris) said, the Bill clearly fails the litmus test. We have to move on this issue: the Bill is toothless without the charter, and the Minister should come back to the Dispatch Box and say that he will move on it, or at least give some sort of guarantee of when the charter will come into force.

Seafarers' Wages Bill [ Lords ] (First sitting)

Debate between Grahame Morris and Richard Holden

Committee stage
Tuesday 17th January 2023 Public Bill Committees

[The Parliamentary Under-Secretary of State for Transport (Mr Richard Holden)]

It is a pleasure to serve under your chairmanship today, Mr Davies, and I thank all right hon. and hon. Members present for taking part. It was particularly gracious of the hon. Member for Wythenshawe and Sale East, and indeed the hon. Member for Kingston upon Hull East, to note the complexities around international maritime law relating to this piece of legislation. I will address some of those points a little bit further when I address some of the amendments later on.

Broadly, the Bill will play an important role in improving seafarers’ welfare and working conditions, and I am pleased that, today, we are taking another step towards it becoming law. There is broad support for the Bill, and I hope that during the course of our discussion, I will be able to address colleagues’ concerns and questions relating to the amendments. I have tabled several broader amendments in my own name: while they may appear great in number, the majority of them—as Members will see when we go through them—are consequential on a small number of changes to the Bill that will improve the functioning of the legislation.

To address hon. Members’ concerns, following on from our continued stakeholder engagement, particularly as we develop our secondary legislation, we have identified some areas of the Bill that would benefit from the improvements made by our amendments. As hon. Members have said, the Bill was introduced at pace to respond quickly to P&O’s disgraceful treatment of its seafarers. It is right that we continue to listen to stakeholders and examine how the Bill will function, and I make no apology for taking every opportunity to ensure the right outcome for seafarers.

Clause 1 sets out the services to which the Bill will apply, namely services for the carriage of persons or goods by ship, with or without vehicles, between a place outside the United Kingdom and a place in the United Kingdom. In other words, the Bill applies to international services, as the majority of seafarers on domestic services between places within the UK will be entitled to the UK minimum wage under existing legislation.

[Grahame Morris]

I recognise that this is a complex piece of legislation and that trying to understand its finer points is quite testing, but could I seek a point of clarification in relation to apprentices? As I am sure the Minister will recall, when Peter Hebblethwaite, the chief executive of P&O Ferries, dismissed those 800 seafarers, he also dismissed the apprentices. Will the Minister indicate whether the wage bands in the UK national minimum wage, to which clause 2 refers, will apply to apprentices as well as the hundreds of directly employed seafarers? The apprentice wage is £4.81 per hour, which does not seem like a princely sum to me.

[Mr Holden]

I thank the hon. Member for raising that point. The banding is an issue that we will address fully through the UK national minimum wage equivalence in the regulations that will come forward at a later stage. We intend for it to mirror the national minimum wage in the UK, and will set that out through secondary legislation. There are exemptions for services provided by fishing vessels and services for the purpose of leisure or recreation, in line with other maritime employment legislation and to account for the different remuneration practices in those areas.

--- Later in debate ---

[Grahame Morris]

I do not mean to be picky, but can I just point out a contradiction? The scope of the Bill covers seafarers who are working on the continental shelf on oil and gas installations and the servicing of those, but not seafarers who are in the offshore wind turbine energy sector or those working on the continental shelf. It seems a contradiction to leave out that whole section of seafarers.

[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.

--- Later in debate ---

[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.

[Grahame Morris]

I hope this intervention does not prejudice the fact that I would like to speak to amendment 67, which stands in my name and that of a number of colleagues.

--- Later in debate ---

[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.

--- Later in debate ---

[Grahame Morris]

On that specific point, I am sure the Minister can clear up the issue I want to raise. The surcharge relates to ports and harbour authorities competing with one another. Will the surcharge be consistent or will it vary from one port and harbour authority to another?

[Mr Holden]

That will be clarified through the tariff regulations, which we will introduce. It will depend on the nature of the ship and the size of it, but we aim for consistency in terms of different vessels in different areas, and a tariff will be established.

The clause provides a power to make regulations that will make provision to—

[Grahame Morris]

rose—

[Mr Holden]

I hope that what I am about to say will answer the hon. Gentleman’s question. The clause will make provision for publication of a determination to impose surcharges; set out how the imposition of a surcharge is to be notified to the operator; set out the period within and the manner in which a surcharge must be paid; and make provision for notification of a surcharge to the Secretary of State and publication of the fact that a surcharge has been imposed. Surcharges paid under the clause may be retained by the harbour authority for the delivery of any of their functions, or for shore-based welfare facilities for seafarers.

I turn to Government amendments 13, 14, 16, 17, 19 and 20. As with the Government amendments to clause 3, these amendments, along with the amendments introducing new clauses 2, 3 and 4, will make the previously discretionary powers of harbour authorities to impose a surcharge mandatory duties, and set out the circumstances in which these duties should be exercised.

As discussed in relation to clause 3, from our continued engagement with port stakeholders we have been informed that harbour authorities are unlikely to exercise their power to impose a surcharge unless directed to. The direction-making power was intended as a back-up power and was not intended to be used as the primary means. However, this is all part of addressing that issue and ensuring the effective functioning of the Bill.

New clauses 2, 3 and 4 therefore set out the circumstances in which a harbour authority is under a duty to impose a surcharge. In summary, new clause 2 sets out surcharges to be imposed when an equivalence declaration is not provided in time; new clause 3 sets out when a declaration relates only to part of a year; and new clause 4 sets out when a service is operated inconsistently with a declaration.

Amendment 13 amends clause 7 to remove the discretionary power for harbour authorities to impose surcharges, which is now replaced with the new duties set out in new clauses 2, 3 and 4. As a result, there is no need for regulations that make provision as to the publication of a determination to impose surcharges and that will be removed by amendment 17. Subsections 1 to 4 of clause 7, which are removed by amendment 13, are replaced by new clauses 2, 3 and 4, which provide for duties to impose surcharges and the circumstances in which those duties apply. Amendment 14 is consequential on amendment 13.

Amendment 16 provides that a duty to impose a surcharge is subject to direction-making powers of the Secretary of State under clause 11, as amended by amendments 32 to 34, to not comply with their duties or to comply with their duties in a particular way. I will discuss the powers of direction in greater detail when we come to clause 11. It also provides that a harbour authority that fails to comply with a duty to impose a surcharge is guilty of an offence and liable, as previously mentioned, on summary conviction to a fine not exceeding level 4 on the standard scale. As with the offence for not requesting a declaration, this will be enforced by the Maritime and Coastguard Agency and is essential to ensure that the Bill functions properly.

Amendment 19 provides for regulations to make provision requiring a harbour authority that has imposed a surcharge to notify the Secretary of State if the surcharge is not paid in the required timeframe. It is necessary for the Secretary of State to be aware of circumstances where harbour access is likely to be refused, in order to monitor the operation of the Bill, take steps to mitigate disruption caused by the refusal of access if necessary, which will be pertinent in relation to very busy sea lanes, and consider if a direction should be issued to the harbour authority under clause 11(2), as amended by amendments 32 and 33, in circumstances where the refusal of access might cause damage to key passenger services or national resilience. Amendment 52 is consequential on amendment 44 to clause 3.

This group of amendments also relates to clause 8 of the bill, which provides a process for the making of objections to surcharges imposed by harbour authorities under clause 7. As the Bill currently stands, an interested party may make an objection to a harbour authority’s determination to impose a surcharge, the tariff of surcharges specified by a harbour authority, or the imposition of a surcharge or its amount.

The Secretary of State will then consider the objection and any representations made and may decide to approve the decision to which the objection relates, or to direct the harbour authority to revoke the determination, revise the tariff, revoke the imposition of a surcharge, or increase or decrease the amount of the surcharge. The Secretary of State will communicate the decision to the harbour authority and the objector and publish it online.

The Secretary of State may also direct the harbour authority to repay any surcharges required as a result of a decision under this clause. If a harbour authority does not comply with a direction given by the Secretary of State under the clause, they will be guilty of an offence and liable on summary conviction to a fine not exceeding level 4 on the standard scale. It should be noted that where an objection has been made to a harbour authority’s determination to impose a surcharge, an interested person cannot make another objection to that same determination. I shall respond to other amendments as they are moved.

Seafarers' Wages Bill [ Lords ] (Second sitting)

Debate between Grahame Morris and Richard Holden

Committee stage
Tuesday 17th January 2023 Public Bill Committees

[The Parliamentary Under-Secretary of State for Transport (Mr Richard Holden)]

I thank everybody for coming back. I am sorry that my speed of speaking was so swift earlier; I shall try to keep these comments at a more temperate pace. I will pick up on a couple of points from hon. Members, then enter into a little more of the briefing.

Tariffs or surcharges will be set by each harbour authority, but they will be in accordance with the regulations made under clause 7. As the hon. Member for Paisley and Renfrewshire North said, we also hope that the surcharges will never be required, but we need to have them to ensure proper practice. Opposition amendment 50 seeks to set out in the Bill how the surcharge is to be calculated. Currently, the Bill provides that harbour authorities will set the tariff of surcharges in accordance with the regulations. It is important that the surcharges disincentivise operators from not providing equivalence declarations, and we agree that surcharges should be high enough to act as a disincentive. We will consult on the levels of the tariffs to be set in the regulations. We do not want to commit to setting the level in the Bill, but please be assured that we are going to take everything into consideration in the drafting of the regulations.

Amendments 51, 52 and 56 seem to be designed to take responsibility for setting the surcharge away from the harbour authorities. Harbour authorities have been given this duty given their proximity to operators as their customers. The tariff must be set in accordance with regulations, but harbour authorities are well placed to determine within those regulations what the surcharge should be in each case. However, we will consider this position further before Report.

Amendment 53 would remove the option for harbour authorities to keep the surcharge for any of their functions, and would mean that moneys would be transferred to the Secretary of State for disbursement . The Bill already allows moneys to be spent by the harbour authority for the purpose of shore-based welfare facilities. I can see that to make the Secretary of State an intermediary places great faith in the speedy actions of the Government in all cases, but there is a possibility that this transaction would put a significant administrative burden on the Department were it to be dealt with on a case-by-case basis and would delay seafarers seeing the benefit of this money.

Amendments 54 and 68 would remove the harbour authority’s ability to spend moneys collected from the surcharge on the discharge of their functions. This is not intended to be a profit-making mechanism, but I am happy to review this function as intended before Report, because we need to ensure the surcharge is high enough to act as a disincentive.

Amendment 65 would remove the power to make regulations providing for the notification of a surcharge to the Secretary of State. The power to make regulations providing for the notification of the surcharge to the Secretary of State is an important mechanism to deter non-compliance. The mechanism of the Bill relies heavily on the monitoring of enforcement, and, as the imposition of the surcharge is a duty under the Bill, it is important that the Secretary of State is notified in this process.

I understand the importance of making it clear that it is the imposition of the surcharge that must be notified to the Secretary of State. I have thus tabled Government amendment 18, which provides for notification to the Secretary of State of the imposition of a surcharge. I hope colleagues are reassured by that.

[Grahame Morris]

I am grateful for the explanation. The Minister said amendment 65; did he mean amendment 64 in relation to the powers of the Secretary of State to set regulations? Can the Minister have a quick look at that? It is a point that in the earlier clauses he had indicated he was going to look at again before Report, so that we have a consistent level set by the Secretary of State in regulation. Could the Minister clarify that?

[Mr Holden]

The hon. Member is quite right. I should have been referring to amendment 64. What I was referring to in that section was Government amendment 18, which relates to Opposition amendment 65. I am about to come on to amendment 64; I did try to reference the hon. Member’s comments earlier, but I will come on to them now.

Amendment 64 would require the Secretary of State to make regulations setting out a national tariff of surcharges, as I indicated earlier, removing any role for harbour authorities in setting surcharge tariffs. The surcharge is an important mechanism to deter non-compliance, and the Government consider it reasonable and proportionate for harbour authorities to play some role, alongside the national tariff setting under clause 7. It is envisaged that a schedule of rates for the surcharge will be set by the harbour authority with reference to the estimated difference between the amount that seafarers are paid and the amount they would have been paid if they had qualified for national minimum wage. This is expected not to be an exact calculation, but to be based on estimates of the number of seafarers involved. The detail of how that will be worked out will be set out in regulations, and we will work closely with industry to ensure we get it right. It is important that surcharges are relevant to the circumstances of the service in scope, and harbour authorities are well placed to make that call given their proximity to services. We have, however, heard the concerns raised by the ports industry and others, so we will consider the matter further ahead of Report.

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[Mr Holden]

It is a pleasure to serve under your chairmanship, Ms Harris.

As currently drafted, clause 9 allows harbour authorities to refuse access to a harbour if an operator has not paid a surcharge as required in accordance with the Bill. The provision is intended to incentivise payment of surcharges and to make payment a condition of access to UK harbours. There are exceptions where a harbour authority may not refuse access: in cases of force majeure; where there are overriding safety concerns; where there is a need to reduce or minimise the risk of pollution; or where there is a need to rectify deficiencies on the ship.

[Grahame Morris]

The Minister is being very helpful. Will he list the categories that fall under, or explain how he would describe, “force majeure”? He mentioned a couple of categories. Is that an exhaustive list?

[Mr Holden]

I will happily provide the Committee with a full list ahead of Report stage. We are talking about serious incidents where life is at risk, but I am happy to write to the hon. Gentleman with further detail.

The method of communicating refusal of access will be set out in regulations. The clause provides that nothing in section 33 of the Harbours, Docks and Piers Clauses Act 1847 prevents refusal of access to a harbour under this section. Access can be refused, irrespective of whether an objection has been made under clause 8. This revision is a key tool in ensuring compliance with the policy intention of the Bill.

The amendment imposes a mandatory duty on harbour authorities to refuse access to a harbour, instead of a discretionary power to do so, as I mentioned earlier with regard to implementing the surcharges. As with those amendments to clauses 3 and 7, the reason for the amendment is to ensure the effective functioning of the Bill so that harbour authorities do not simply wait to be directed by the Secretary of State.

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[Mr Holden]

Clause 10 specifies that in England, Wales and Northern Ireland, proceedings relating to offences under the Bill will be prosecuted by the Secretary of State. In practice, the Secretary of State will do so through the Maritime and Coastguard Agency. In Scotland, all criminal prosecutions are brought by the Lord Advocate.

This provision ensures that there is a clear and consistent process for the prosecution of offences under the Bill, and that such proceedings are handled by the appropriate Government agency. The clause is a critical component of the Bill’s enforcement mechanism and it will help to ensure compliance with its provisions.

Clause 11 as drafted will give the Secretary of State the power to give guidance to harbour authorities on how to exercise their powers under the Bill. The clause also allows the Secretary of State to issue directions to harbour authorities, requiring them to exercise or not exercise their powers under the Bill or to exercise them in a particular way.

[Grahame Morris]

The Minister is being patient and I appreciate that. Will he clarify the difference between “guidance” and “direction”? I ask because, on an earlier clause, we agreed that harbour authorities will now have a duty rather than a power. I wonder whether the Secretary of State’s “guidance” is a weaker term than a “direction”. Will he explain the difference?

[Mr Holden]

As drafted, the Bill is weaker, and that is why we are replacing the provisions with a duty in all these areas, in order to strengthen the requirement. Whether, in some such areas, it was “guidance” or other wording, there will now be a “duty”. That makes the Bill harder, ensuring that the harbour authorities have to do things.