UK Maritime Industry

Martyn Day Excerpts

Thursday 12th January 2017 Westminster Hall

[Martyn Day (Linlithgow and East Falkirk) (SNP)]

It is a pleasure to serve under your chairmanship, Mr Walker. I thank the right hon. Member for Orkney and Shetland (Mr Carmichael) for initiating the debate. I confess that before my election, I had little real knowledge of the modern industry, but I have been steadily learning from my contacts and visits to Forth Ports Grangemouth. I have also attended trips on to ships with the local seafarers mission, which I cannot praise enough for doing such a fantastic job in supporting workers, and I have had talks with and briefings from the RMT and Nautilus, as well as haulage contractors in my area. I am grateful to all those bodies for assisting me during the past 18 months.

Grangemouth is of course Scotland’s largest container port. It is also Scotland’s largest port, with the site covering 386 acres. Grangemouth lies at the centre of Scotland’s industrial heartland. It is situated midway between the main Scottish cities of Glasgow and Edinburgh and is served by the M9 motorway, with links to the national motorway network, and is also well rail-linked.

Approximately 9 million tonnes of cargo are handled through the dock facilities each year. With about 150,000 containers and as much as 30% of Scotland’s GDP going through the port, it is the UK’s largest feeder port and the only one that exports more than it imports. Locally, Forth Ports employs some 200 people within the port and supports a further 1,000 jobs within the port estate. Therefore, the industry’s significance to my constituency cannot be overstated, although it may often be overlooked by those driving past the gates.

Almost no topic can be debated nowadays without some reference to the issues surrounding Brexit, and this debate is no exception. The maritime industry plays a major role in helping to facilitate the wider freedom of trade in goods. Given the volumes and patterns of freight, leaving the EU will have implications for the shipping sector. One specific concern is about UK flag ships losing their right to operate in the domestic trades of those EU member states that maintain flag-based cabotage restrictions. The economists Oxera have said that changes to the costs of trade with the EU are

“likely to affect the volumes and patterns of freight activity at ports, while the need for new customs checks on imports and exports is likely to cause considerable congestion at UK and mainland European ports.”

Given the nature of the work at Grangemouth, that is a real concern, although any negative impact could clearly be mitigated through European economic area membership or free trade agreements. The industry’s importance to our countries’ ability to trade worldwide and not just with Europe is key, especially with more than 90% of all trade being handled through our ports. Given that we are an island nation, that is not likely to change, but it leads to questions about how it is done and the role of seafarers, without whom that trade just would not be possible.

The role of seafarers is perhaps the most concerning aspect of the maritime industry. Since 2011, the number of UK ratings has declined by 25%, while the number of UK seafarers has decreased by some 13%. That portends a very serious risk of loss of skills and may even threaten the viability of our home-grown industry, unless training and employment rates improve significantly. That skills deficit is set to be compounded further by future retirals of an increasingly ageing workforce. I would like to take this opportunity to commend the work of the RMT and its SOS 2020 campaign to highlight that threat to the UK seafarers skills base.

While we face that decline in skilled seafarers, there is in fact a global surplus of ratings, with many of the ratings in the international shipping industry coming from cheaper-wage economies. That is compounded by exploitative practices by some operators, which abuse the complexities of the national minimum wage regulations and pay scandalous rates of pay to some seafarers. That has been much commented on today, so I will just add my disappointment that many seafarers are not receiving a fair wage. Confusion and complexity surrounding the NMW needs to be addressed by the Government. In particular, the meaning of the term “ordinarily working in the UK” needs to be made crystal clear. I would welcome hearing from the Minister how that can best be achieved and how the situation whereby there are current cases of two people working on the same ship and doing the same job but being paid different amounts based largely on nationality can be addressed.

My trade union contacts have flagged up with me the following issue, which highlights the point succinctly and demonstrates the international dimension. The Norwegian international flag register is the second register for Norway. It is not allowed to cabotage in Norway and does not pay tax there. I am told that these ships are among the worst offenders. The majority of these ships operating from Aberdeen stay in the UK permanently, with some not having left for more than 10 years. They have on board Norwegian nationals who receive Norwegian rates of pay, but non-Norwegians are employed on what has been described to me as “peanuts”. The fact that such issues can be so clearly identified must mean that solutions are not beyond conception. I look forward to the Minister’s summing-up.

[Mr Charles Walker (in the Chair)]

Thank you very much, colleagues, for your conciseness and your co-operation. The hon. Member for Great Grimsby (Melanie Onn) could have had two minutes, but she would prefer to ask the Minister a question. It will obviously be up to the Minister to decide whether to take that intervention, but I know that the hon. Lady would like to ask a question as opposed to making a speech. The Front Benchers will have 11 minutes each, which will allow the mover of the motion to have two minutes at the end.