Wreck Removal Convention Bill

Lord Greenway Excerpts

Friday 10th June 2011 Lords Chamber

[Lord Greenway]

I very much agree with what the noble Lord, Lord Mackenzie, has just said. Having debated these matters with the noble Lord, Lord Berkeley, for many years, we all know where his concerns lie, particularly in regard to expenses put on the ship owner through the payment of light dues.

The convention is quite clear, as has been said, in that it will require ships over 300 gross tonnes to carry wreck removal insurance and the onus of wreck removal is firmly placed on the registered owners of those ships. The instances where a ship might fall through the net, so to speak, will be very much reduced in future. As has been said, I think the possible cost to the General Lighthouse Fund will certainly be lower.

As far as I can make out, the amendments limit the options open to the Secretary of State, compared with what he has today. The Secretary of State and his representative—SOSREP—are well known to the general lighthouse authorities. They have worked together over many years and those authorities have been marking and removing smaller wrecks for 150-odd years, so they have some experience in this matter. It would be wrong to try to bypass that experience by getting the Government to appoint independent salvers to do a job; for example, they would not necessarily have the experience of marking the wreck in the first place. There is an argument for maintaining continuity in dealing with the marking of wrecks and their possible removal by one source that is used to dealing with them.

The memorandum of understanding was mentioned by the noble Earl, Lord Caithness. That is certainly something where I think many of these concerns can be thrashed out. I echo what the noble Earl said in asking the Minister whether he can give us an update on how that is proceeding. As I said before, there is already close co-operation between the Government’s representative and the general lighthouse authorities. The harbour authorities are perhaps slightly different. Some of the smaller ones would not have the necessary vessels to cope with removing a wreck, but there is absolutely no question of the general lighthouse authorities using this Bill to extend their fleet with newer and larger ships. I think that that is a red herring.

I emphasise that the cost to the General Lighthouse Fund, over quite a number of years of removing wrecks, is very small. I have a figure of 0.004 per cent, and that went up to 3.2 per cent only as a result of the one-off exercise of the removal of the German First World War U-boat from the Dover Strait, when the Government required Trinity House to do that and it had to appoint separate salvage contractors.

I will mention one final point. The point of the Secretary of State being able under the Bill to direct harbour authorities or general lighthouse authorities to remove a default wreck is so that they can recover their costs. Without that direction, which in effect makes them agents of the state, they cannot recover them. That is an important point.

[Lord Rosser]

My Lords, I will make only one or two comments about the amendments tabled by my noble friend Lord Berkeley. I do so in the context of repeating that we welcome the Bill.

My noble friend raised again the issue of the possible high level of costs that might have to be borne in the event that, contrary to requirements, a ship is not insured, the insurance does not cover the full costs or there is a lengthy delay in the insurance money being paid after the costs have been incurred. I sense from what my noble friend said that this could be an issue particularly for some harbour authorities because of their financial reserves. I am aware that in the Second Reading debate, the Minister said that the Government were of the opinion that the provisions of the Bill would ensure that the risks of a shortfall in expenditure would be significantly less for bodies such as harbour authorities than they are now. The Minister referred later in the debate to a memorandum of understanding between the respective parties that would be agreed prior to the entry into force of the International Maritime Organisation's International Convention on the Removal of Wrecks.

There have been discussions already between my noble friend Lord Berkeley, the Minister and the noble Baroness, Lady Stowell of Beeston. I am sure that those discussions have been both appreciated and useful. I simply ask the Minister and the noble Baroness whether there is scope for further discussions with my noble friend Lord Berkeley on the issue that he has raised, and in particular whether any wording could be incorporated in the memorandum of understanding that might at least mitigate or lessen the concerns that have been expressed on this issue by my noble friend.