Seafarers’ Wages Bill [Lords]

John McDonnell Excerpts

Monday 19th December 2022 Commons Chamber

[John McDonnell (Hayes and Harlington) (Lab)]

Most of the points of detail have been raised by other Members, so I will not focus on those. I will vote for the Bill, but—I am not being party political here, because when it comes to the treatment of seafarers, I have been critical of every party that has been in national Government—the Bill is a mouse, and I do not think that it is a mouse that is going to roar. That is my worry about it.

I was pleased at the cross-party anger about P&O’s behaviour. I had expected that to result in a real opportunity to tackle the way in which seafarers are treated, and not just by P&O but historically. I have checked Hansard, and the first time I raised in the House the application of the minimum wage to seafarers was in the 2002-03 Session, which was 20 years ago. I blame the Chamber of Shipping, which has been mentioned, and its influence on successive Labour, Conservative and coalition Governments. Time and again, we have pointed out what is technically, in employment terms, a feudal relationship with many seafarers and the way they are treated. It is also a neo-colonialist relationship, given the recruitment practices across the globe. It is a level of exploitation that we would not tolerate in any other sector. People are working long hours in unsafe conditions, on low pay and with limited training. When they complain, they are replaced by labour that is brought to this country from across the globe. They are severely exploited.

Every time we have debated the issue and the Chamber of Shipping has realised that the game is up and that change is necessary—largely through public opprobrium, as happened with P&O, though perhaps not on the same scale in the past—successive attempts at reform by this House have resulted in a standard strategy to be pursued, which is that the Chamber of Shipping, working with the Government, obfuscates, seeks to limit change and the effectiveness of that change, and drafts trench warfare in legislation.

I will give a few examples. In 2002 I said that we should ensure that the minimum wage applied to seafarers in this country on the basis of the Race Relations Act 1976. When lobbying on the Race Relations Act, the shipping industry secured an exemption—the only sector that gained such an exemption. As a result, it was able to exploit workers. We ran a campaign and the Government put their hands up and said, “We accept that there is a wrong here, so we will ensure reform.” That reform was that people could be discriminated against based not on their race but on their nationality. What is the difference? That was the change in legislation.

From 2007 to 2009 we ran a campaign and I raised the issues in this House. When we sought to give some form of legal protection to people, we were told that they could have that legal protection only if they had employment links to this country—and that was ill defined. It just went on like that. I have example after example of us campaigning for reform and being met with obfuscation and the drafting of trench warfare, and the reform was largely frustrated. It just went on like that.

I raised the issue of accommodation charges in 2014. Again, the argument was that the charges would be relatively limited and that there would be no major impact on the seafarers. The companies then started increasing the charges and they got to ludicrous levels. What could the seafarers do? They had no choice over where they were going to sleep at night. They could not hire a separate boat to sleep on. The companies were ripping them off.

I can remember about 40 of us turning up to a Statutory Instrument Committee thinking that we had achieved a major victory—it was wonderful—whereby the minimum wage was going to apply to British waters. We all thought that meant territorial waters, but then there was a change of definition and we found that it applied only to internal waters—which just about applies to the Norfolk broads, to be honest.

That is what has happened year after year. I have had 20 years of this, so Members will understand my sense of frustration that leads to anger. That is why I think this Bill is a mouse. We will work together to improve it—that is what we will do. We will try to eradicate the loopholes that have been set out by virtually every Member who has spoken so far, including on the number of times a port is used, the way in which measures are enforced and the way in which the surcharge is defined. The Government cannot leave the definition of the surcharge to the harbour authorities. There will be another race to the bottom because they will want to attract companies to use their harbour on the basis that their surcharge is so low. Let us work together as a House to resolve those issues with this mouse of a Bill.

The Bill does not solve the problem of fire and rehire. I was with the hon. Member for Dover (Mrs Elphicke) in Dover. I think she has misunderstood what was going on in the RMT office. My right hon. and learned Friend the Member for Holborn and St Pancras (Keir Starmer) was receiving a briefing from the RMT that was offered to the Prime Minister and the leaders of other parties as well. I was in the room at the time, and there was no plotting or anything like that. It was about trying to ensure that points were raised in this House so that the Government could act more effectively.

[Mrs Elphicke]

I have notified the right hon. and learned Member for Holborn and St Pancras that I will be raising this issue. I was in that meeting along with a member of my team. It was very clear that what I was observing was not a conversation with the Labour leader but a conversation led by the Labour leader about what might happen the following week, including some very disparaging references about the Transport Minister, my hon. Friend the Member for Bexhill and Battle (Huw Merriman), whom he sought to embarrass. I appreciate the perspective of the right hon. Member for Hayes and Harlington (John McDonnell) and I recall him being there.

[John McDonnell]

We were both in the same room, but I suppose that it is like people witnessing an accident, in that there will be different interpretations. By no means was I calling the leader of the Labour party’s conversation an accident—that would be grounds for expulsion.

The Bill does not outlaw fire and rehire. That was used by P&O, whose example was followed very quickly by Heathrow airport in my constituency. If this Bill is the first stage of a reform package, we need to see the rest of it pretty promptly. That means not just introducing minimum wage legislation but looking at the wider exploitation of seafarers, including accommodation charges and safe crew levels. I am really worried. My hon. Friend the Member for Kingston upon Hull East (Karl Turner) mentioned the Herald of Free Enterprise disaster. Time and again, evidence is emerging that the exploitation of seafarers is not just about wages, but about how few seafarers there are on any particular ship and how the training they receive does not guarantee safety. Therefore, we need legislation to be introduced rapidly to ensure that seafarers are not only properly paid but properly trained, and that any ship that sails around our ports has an adequate number of crew on board.

At some stage—this applies to the overall debate as well as to this Bill—we will have to have another discussion about the regulation of the sector. This Bill relates to how it abides by payment of the minimum wage. I do not believe that the concept of harbours levelling the surcharge and then it being implemented or, I suppose, inspected by the Maritime and Coastguard Agency is going to prove effective. That is a division of responsibility and I do not think it will work.

As other hon. Members raised earlier, the idea that a ship or company can simply be excluded from operating out of a particular harbour will not prove effective either. We must demonstrate seriousness of purpose, which is why the unions are arguing for detention of the ship when there is a refusal to abide by the measures that are going through in this Bill.

I hope that we will rapidly hear a report on the progress of the seafarers’ charter, which I thought would be included in the first legislation that we saw to attack the issues around seafarers and P&O in particular. I would also like to have had some strong evidence of the agreements that are coming forward in the cross-country negotiations taking place on these issues; can we have that in the new year? I also throw in that it is not just about the wages earned week by week, month by month, but about pensions, which are another form of wages. Seafarers’ pensions have been eroded over the years and, as a result, it is difficult to attract people to the job because of low pay, lack of pensions, insecurity and, to be frank, unsafe working conditions.

My final point comes back to the Chamber of Shipping. I am angry that, throughout the whole period that these activities have been taking place, when low pay has been inflicted on seafarers and their pensions have been under attack, shipping companies have taken £2 billion in tax relief from tonnage tax—in fact, they have laughed all the way to the bank. The tonnage tax has failed, and it has not produced the jobs that we were promised or encouraged the companies to behave as dutiful employers. I urge the Government to bring forward the whole programme of legislation that was promised as part of the development of the nine-point plan, as well as the seafarers’ charter, early in the new year. Unless we have that, there will be no secure employment and the long-term future of the sector will be at considerable risk.

--- Later in debate ---

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

I thank hon. Members for all their contributions and join the hon. Member for Wythenshawe and Sale East (Mike Kane) in commemorating, 41 years on, the memory and service of the eight RNLI lifeboatmen from Mousehole who operated the Penlee lifeboat.

I think that everyone in the Chamber agrees with my hon. Friend the Member for Thurrock (Jackie Doyle-Price), who put it bluntly by saying that all of us, especially at this time of year, are reliant on those who operate our ports and bring everything into our country. Ninety-five per cent of all of our trade travels by boat, and a lot of that comes into her constituency. That is why it is so important to all of us that we see the Bill progress.

I thank my hon. Friends the Members for Witney (Robert Courts) and for Dover (Mrs Elphicke) and, across the political divide, the hon. Members for Kingston upon Hull East (Karl Turner) and for Easington (Grahame Morris), who all made the point that everyone in the House was shocked by the behaviour of P&O earlier this year, and they have come together in wanting to do something about it. It was particularly gratifying to see both the Secretary of State and the hon. Member for Plymouth, Sutton and Devonport (Luke Pollard) supporting the legislation and wanting to see good standards and raised standards not only through the Bill but through the Government’s nine-point plan.

I am glad that those on the Opposition Front Bench broadly welcome the Bill, as do the SNP representatives. I just point out to the SNP Front Bench that the RMT did meet my hon. Friends in the Department on Thursday. We are always happy to engage with unions and anybody else who is interested in bringing things to a head in that regard.

The hon. Member for Glasgow East (David Linden) was also very kind to praise the Government for dragging the French to start looking at issues in this space. I am glad that he is supporting those of us on the Government Benches who are leading our European partners forward on legislation in this space. More broadly, I am delighted that everyone across the House is supporting where we are going, including the hon. Member for Strangford (Jim Shannon), whose voice it is always a pleasure to hear.

I think we can all agree that the Bill is not a silver bullet, but it is a starting point, as my hon. Friend the Member for Witney said. I pay tribute to previous Ministers, including him and my right hon. Friend the Member for Welwyn Hatfield (Grant Shapps) who brought it forward. I look forward to picking up on many of the issues raised at later stages if I cannot address them at the Dispatch Box today.

I want to turn first to my hon. Friend the Member for Milton Keynes South (Iain Stewart), the Chair of the Transport Committee, who raised three points. First, on the International Labour Organisation, the measures in the Bill will be stronger than what it has brought forward. They are compatible with the ILO, but they will be stronger than what it has as a baseline. On which is the best body—the harbour authorities or the Maritime and Coastguard Agency—the MCA will have the power to investigate and prosecute offences under the Bill. It is responsible for the enforcement role, although port operators will collect the moneys. He made another important point on minimum wage corridors. We are looking at that across the piece at the moment. I mentioned France, but we are looking at other European counterparts for where we can have routes to really drive forward standards for workers across the country.

[John McDonnell]

Will the Minister give way?

[Mr Holden]

I have only eight minutes, but I will give way once.

[John McDonnell]

Will the Minister write to us with some form of timetable on the agreements and when they will be ready?

[Mr Holden]

I would be delighted to update the right hon. Gentleman at a future point. We can perhaps go into that further in Committee. If he raises it at that point, we can perhaps take it further from there.

Those were the three points raised by my hon. Friend the Member for Milton Keynes South. I want to touch on a few more points.

One main point was the concern, expressed by many hon. Members including the hon. Member for Weaver Vale (Mike Amesbury), about the potential for port hopping. The key thing is that the Secretary of State has the power to direct anybody who is trying to abuse the system.

On the civil investigation and the ongoing matters mentioned by the shadow Secretary of State, the hon. Member for Sheffield, Heeley (Louise Haigh) relating to P&O, I think we can all agree about Mr Hebblethwaite—the way that he has tret his workers is totally unacceptable. Given the ongoing civil action, it would be inappropriate for the Government to comment at this time. However, after that point I will be happy to comment further.

I want to draw Members’ attention to the broader issue regarding the Government’s nine-point plan. My hon. Friend the Member for Thurrock made a point about global standards, which was picked up by my hon. Friend the Member for Hendon (Dr Offord). We want to see them leading the world with the highest standards possible.

The right hon. Member for Hayes and Harlington (John McDonnell), my hon. Friends the Members for Thurrock and for Dover, the hon. Member for Easington and my hon. Friend the Member for Witney all mentioned training and quality. They are part of the seafarers’ charter, which we want to see driven further forward.

On rostering, an important point mentioned by the hon. Members for Kingston upon Hull East and for Weaver Vale, and my County Durham neighbour the hon. Member for Easington, we have commissioned an independent assessment of rostering and I look forward to its conclusions.

Offshore wind was mentioned by several hon. Members, including Members from Scotland. Under article 2 of the National Minimum Wage (Offshore Employment) Order, on working in connection with the exploration of the sea or subsoil, basically if you are in the UK’s exclusive economic zone, there is a difference between that and the continental shelf. I look forward to further debate on that in Committee. It is a technical area, which is worth us looking at further.

The Bill marks great progress on the Government’s nine-point plan. It is a step forward, delivering a suite of measures to improve seafarers’ protections and welfare. It is not a silver bullet and will not solve every problem, but it will incentivise operators to pay fair wages, particularly for those with the closest ties to the UK, and recognise the pivotal role that they play in the movement of the UK’s goods and services. It will drive best practice.

Beyond the Bill, the UK will continue to be a leading voice on the international stage as the home of the International Maritime Organisation. That proximity will help us to work more closely with counterparts across the seas in driving forward better standards, as we have already seen from the reaction of France, Denmark, Belgium and other continental neighbours. We will continue to make progress on the rest of the nine-point plan and will work with our international partners to ensure a fairer deal for seafarers.

I wish you a merry Christmas, Madam Deputy Speaker, but I shall save my merry Christmases for the rest of the House until tomorrow evening when I reply to the Adjournment debate.

Question put and agreed to.

Bill accordingly read a Second time.

Seafarers’ Wages Bill [Lords] (Programme)

Motion made, and Question put forthwith (Standing Order No. 83A(7)),

That the following provisions shall apply to the Seafarers’ Wages Bill [Lords]:

Committal

(1) The Bill shall be committed to a Public Bill Committee.

Proceedings in Public Bill Committee

(2) Proceedings in the Public Bill Committee shall (so far as not previously concluded) be brought to a conclusion on Tuesday 17 January 2023.

(3) The Public Bill Committee shall have leave to sit twice on the first day on which it meets.

Consideration and Third Reading

(4) Proceedings on Consideration shall (so far as not previously concluded) be brought to a conclusion one hour before the moment of interruption on the day on which those proceedings are commenced.

(5) Proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion at the moment of interruption on that day.

(6) Standing Order No. 83B (Programming committees) shall not apply to proceedings on Consideration and Third Reading.

Other proceedings

(7) Any other proceedings on the Bill may be programmed.—(Mike Wood.)

Question agreed to.

Seafarers’ Wages Bill [Lords] (Money)

King’s recommendation signified.

Motion made, and Question put forthwith (Standing Order No. 52(1)(a)),

That, for the purposes of any Act resulting from the Seafarers’ Wages Bill [Lords], it is expedient to authorise the payment out of money provided by Parliament of—

(1) any expenditure incurred by virtue of the Act by the Secretary of State, and

(2) any increase attributable to the Act in the sums payable by virtue of any other Act out of money so provided.—(Mike Wood.)

Question agreed to.