Deep Sea Mining Bill (Ways and Means)

Lady Hermon Excerpts

Tuesday 15th October 2013 Commons Chamber

[The Minister of State, Foreign and Commonwealth Office (Mr Hugo Swire)]

I beg to move,

That, for the purposes of any Act resulting from the Deep Sea Mining Bill, it is expedient to authorise:

(1) the imposition of charges in connection with licences granted as a result of the Act, and

(2) the payment of sums into the Consolidated Fund.

The House debated the Bill on Friday 6 September and it received its Second Reading unopposed. I pay tribute to my hon. Friend the Member for South East Cornwall (Sheryll Murray) for her work on the Bill thus far and to Members from across the House who took part in the debate. The former Under-Secretary of State for Foreign and Commonwealth Affairs, my hon. Friend the Member for North East Bedfordshire (Alistair Burt), signalled the Government’s support for the Bill on Second Reading, and in order for the Bill to progress to Committee it is necessary for a Ways and Means resolution to be agreed by the House.

As I have said, this motion allows for charges to be imposed in connection with licences granted as a result of the Act. Under the Act, licences would be granted for the exploration or exploitation of any of the certain mineral types for which the International Seabed Authority has regulations—currently, those are polymetallic nodules, polymetallic sulphides and ferromanganese cobalt-rich crusts. The licence would be specific to a particular area of the deep sea bed and it would not have effect until the ISA issued a corresponding contract to the same applicant. The application fee for an exploration licence currently stands at £10,000.

[Lady Hermon (North Down) (Ind)]

Have mining companies expressed any interest in exploiting the deep sea bed around the coast of Northern Ireland? The Bill extends to Northern Ireland but not to Scotland, as is helpfully explained in the explanatory notes.

[Mr Swire]

I am not aware that there has been any such interest, but, as the hon. Lady says, the new licensing regime applies to Northern Ireland as much as it does to anywhere else. Of course, all this motion is doing is committing the Bill to Committee, where she will have a chance to use her forensic powers of examination to tease that and other information out.

As I was saying, the application fee for an exploration licence stands at £10,000. The company then pays an annual fee for three years to continue to hold the licence; those fees are £15,000 for the first year, £25,000 for the second year and £25,000 for the third year. Those are substantial sums; indeed the fee for an application to the ISA is $500,000. Those involved are not small-scale companies but businesses that are prepared to make significant investments in the search for minerals on the deep sea bed. Two licences have been issued under the Deep Sea Mining (Temporary Provisions) Act 1981, and should this Bill become law we hope it will encourage other companies to apply. The fees go into the Consolidated Fund. The ability of the UK Government to issue these licences, in a manner that is fully compliant with international law, will ensure that British companies benefit from the opportunities available in this new industry. The country as a whole will benefit, too.

--- Later in debate ---

[Lady Hermon]

I was particularly struck by the Minister’s phrase that the Bill will benefit “British companies” and allow them to exploit the deep sea bed. The Bill runs to only two clauses, but does it contain a clause that I have not noticed which reduces those who can mine the deep sea bed around England, Wales and Northern Ireland—but not Scotland—to British companies only?

[Madam Deputy Speaker (Dawn Primarolo)]

Order. Before the Minister answers, it may be helpful if I remind the House that we are not discussing the Bill. This is about the charging regime for the licences; the debate is on the Ways and Means motion. I fear that we are in danger of debating the Bill, which would not be in order this evening. I know that the Minister is trying to keep in order.