Draft Merchant Shipping (General Lighthouse Authorities) (Increase of Borrowing Limit) Order 2026

Greg Smith Excerpts

Tuesday 24th February 2026 General Committees

[Greg Smith (Mid Buckinghamshire) (Con)]

It is always a pleasure to serve under your chairmanship, Sir Desmond.

I am generally cautious about borrowing beyond our means, but on every organisation significant costs are sometimes imposed that require capital spending. The general lighthouse authorities have been looking after our seafarers for hundreds of years and do critical work to maintain their safety and welfare. Even though they may no longer have the same number of almshouses to maintain, or responsibilities for mariners’ widows and children to fulfil, they still play an enormous role in maintaining the operational network of aids to navigation around the United Kingdom and the Republic of Ireland. It is a tremendous legacy of British maritime history, and given the importance of the maritime sector, it is right that the GLAs have the resources they need to ensure safe passage for vessels.

In this case, I am aware that the draft order relates to a programme of vessel replacement needed due to many of them reaching the end of their service life. Having working vessels is of course an expense it is necessary to meet if the GLAs are to operate effectively, but can the Minister assure us that the types of vessel procured will be cost effective and that there will be no onerous procurement criteria that could increase costs?

I understand that there is no direct provision for UK Government funding, but that the Department for Transport covers the financial risk of the GLAs defaulting on their repayments. As the former maritime Minister said in the debate on the 2024 Order,

“This…does not expose the Treasury or the Department, because these are effectively loans to be paid back.”—[Official Report, Fifth Delegated Legislation Committee, 30 October 2024; c. 6.]

Although I am sure that the Minister is confident in the GLAs’ ability to manage their finances, in increasing the borrowing limits through 10 statutory instruments, has any assessment been made of the financial security of the organisations? For example, I understand that the minimum general lighthouse fund cash reserves are set at £20 million to cover costs. While the current level is greater than that sum, will the Treasury need to make any changes? Has the Department for Transport engaged with the lighthouse authorities to ascertain their confidence in paying back the borrowing? Has the potential long-term impact on light dues been assessed? Avoiding increases business costs is critical, and I am sure we want to avoid imposing a greater financial burden on shipping businesses.

The general lighthouse authorities have centuries of history, illustrating—some might say illuminating—their effectiveness in upholding the safety of mariners. It is essential that the Government act as the steward of this history and ensure that they remain operationally and financial viable.