Seafarers’ Wages Bill [Lords]

Debate between Lia Nici and Richard Holden

Tuesday 7th February 2023 Commons Chamber

[Mr Holden]

I think the hon. Lady is incorrect on this point. We are talking about someone based overseas who visits a UK port once a week for a matter of hours and who may be operating in the territorial waters of another country for the overwhelming majority of their working time. This would be similar to someone employed under a British lorry driver’s licence going over to do deliveries in another country as well. There is this idea that we would suddenly change things for those few hours that people were perhaps at a UK port, but that would be inconsistent with our obligations and it raises real issues associated with our interactions with other port operators, particularly across the North sea, and with our friends and allies in Europe, who are looking at similar legislation. We have been working on that with our European partners. We are already in conversations with the French on this issue and on others. The UK is leading the way on legislation in this area of regular services, but we have to do it in such a way that it also fits with international maritime law. We also need to ensure that we are on the same page as our friends and partners across the continent.

[Lia Nici (Great Grimsby) (Con)]

To clarify something that my hon. Friend said earlier, is the point of the measure not to avoid a situation where, as we saw with P&O Ferries, a company is effectively making a choice whether to employ British people working in British waters on the acceptable living minimum wage, or to make wholesale redundancies so that it can bring in low-paid workers, and quite often low-paid foreign workers?

[Mr Holden]

My hon. Friend makes an important point. That is the crux of this legislation. We are trying to address the operators who regularly access UK ports on those short straits routes. What we are not trying to do is pass legislation for people who are perhaps in UK waters for a matter of hours a week, the benefit of which is relatively minimal anyway, because they are in international waters, or in the waters of a foreign country, for the majority of the time. The impact of that would be seen as relatively negligible.

Let me move on from that point. I think I have explained very clearly the UK Government’s position. The implications of the extension to once a week for port calls would place a huge burden, the effects and benefits of which are difficult to ascertain, and appear to be incredibly minimal.

Clearly, the Bill focuses on the short sea services, justifying the seafarers’ connection to the UK and therefore a UK equivalent level of pay protection. To reduce the frequency that services must call at UK ports before coming into scope of the Bill’s requirements to include weekly services would dilute the concentration of the Bill in protecting those seafarers. In any event, the time in our waters spent by seafarers who call only weekly would be so short that it would have very little effect, while hugely widening the scope of the Bill to container services, which may have very little connection to the UK.

New clause 2 would ensure that the Government produce a report on implementation and monitoring within six months of the Bill being passed. The same new clause was introduced in Committee and I am afraid that the Government’s position has not changed. Many of the areas that such a report would cover are out of scope of the narrow focus of the Bill. We have acted quickly and decisively with the Bill to prevent operators of regular services to the UK being able to replace seafarers with those being paid less than an equivalent of the national minimum wage. Furthermore, it would be impossible to measure due to any indirect impact. Six months from a Bill becoming law is far too soon for a report to be of any use. We would still be in the process of developing secondary legislation in order to bring the Bill into full force.

In Committee, we discussed each provision of the new clause in detail, and Baroness Vere also discussed the provisions of a similar amendment at length in the other place. The points that I made in Committee are unchanged, so I will not repeat them, but I will provide an update to the House on various aspects that the report would cover.

Subsections 2 (a) and (b) request the reporting of the impact of the Act on roster patterns, pay, pensions and future plans to legislate in these areas. We do not have plans to legislate more than is necessary, but that does not mean that we are not taking action on areas beyond the matter of minimum pay, which we all know is not the only aspect of seafarers’ welfare that requires attention. As part of the seafarers’ protection nine-point plan, we will launch a new seafarers charter to improve the long-term employment and welfare conditions of seafarers. It includes a wide range of employment protections that is currently covered in the Bill. The Government are committed to delivering a voluntary seafarers charter in the near future. They will act legislatively only where it is proven that it is appropriate to do so. The impact of the charter and the need to provide a legislative basis will be continuously reviewed, and it is not necessary or desirable to constrain ourselves to committing to any action on a strategy on these timescales. The charter will be published very soon. We are working closely with the French Government, who are also developing their own version of the seafarers charter. We are commissioning independent research into roster patterns to ensure that we have a strong evidence base to support policy on this subject. The French Government are also doing their own research, and we are liaising closely with them to share our learning and further build a robust evidence base in this important area.

On subsection 2(d), with regards to a strategy for monitoring the establishment of minimum wage corridors, the Government appreciate the interest in this area and we are working hard to seek agreement on how the UK and our near European neighbours can collaborate on the international stage to improve seafarer welfare. As part of that, we are exploring the creation of minimum wage-equivalent corridors.

I am pleased to say that the French Government deposited a Bill in their National Assembly on Wednesday 1 February. Their Bill aims to ensure that seafarers working on certain cross-channel ferry services between the UK and France will also benefit from pay protections while in specific parts of French territorial waters. We will continue to work together on our respective pieces of legislation to ensure that we maximise the benefit to seafarers. In addition to our work with France, we have begun our engagement with the Crown dependencies.

Seafarers' Wages Bill [ Lords ] (Second sitting)

Debate between Lia Nici and Richard Holden

Committee stage
Tuesday 17th January 2023 Public Bill Committees

[Mr Holden]

Just before we finish, I want to say that it is a pleasure to have served under your chairmanship this afternoon, Ms Harris. We are both virgins on the Bill Committee Front Benches in our respective ways, under the supreme guidance of Mr Davies, which has been superb.

The new clause would create criminal offences for directors of companies operating a service to which the Bill applies where the service is operated inconsistently with an equivalence declaration or the operator has failed to comply with a request for a declaration. While I understand and share the anger against some of the bosses who, as my hon. Friend the Member for Dover mentioned, carry out such underhand employment practices, introducing such offences to the Bill would not improve its effectiveness. There is already a robust compliance mechanism that will provide a severe disincentive against operators that pay less than the national minimum wage equivalent.

[Lia Nici (Great Grimsby) (Con)]

This is the Seafarers’ Wages Bill, and I think we all agree, across the House, that further action and other Bills are needed. However, this Bill will be a disincentive to companies that think they can act improperly and take on cheap foreign labour rather than looking after staff on a proper minimum wage or more. That is exactly what the Bill is meant to do.

[Mr Holden]

My hon. Friend makes a very sensible point. The Bill is a big step in the right direction in delivering for seafarers and countering some of the issues we have seen.

It will already be a criminal offence for operators to operate a service inconsistent with a declaration, and we do not think it is necessary for directors to be held personally liable for that offence. It would not be appropriate for directors to be guilty of an offence of failing to provide a declaration, as there is no obligation for them to do so. While the intention is that surcharges will be a sufficient disincentive against operators failing to pay at least the national minimum wage equivalent, it is open to operators not to provide an equivalence declaration, in which case surcharges will be imposed.

The existing compliance mechanism of surcharges for failure to provide a declaration and the criminal offences for operating inconsistently with a declaration will have considerable financial and reputational implications for operators. I do not think anybody here today can say that P&O Ferries has not experienced a reputational impact—not only that, but a legislative impact—from its behaviour over the last few years. Personal liability for directors is therefore not necessary.

I want to leave one thought in the minds of hon. Members on both sides of the Committee. The Insolvency Service is currently undertaking a civil investigation, which, among other things, will assess various individuals’ fitness to be directors.