UK Maritime Industry

Melanie Onn Excerpts

Thursday 12th January 2017 Westminster Hall

[Drew Hendry]

That is fine. I am happy to speak now, so thank you very much, Mr Walker. It is a pleasure to serve under your chairmanship. I congratulate the right hon. Member for Orkney and Shetland (Mr Carmichael) on securing this important debate. I agree with the praise that he has given to seafarers and to the contribution that they make not only to island communities, but to coastal communities in Scotland and around the UK.

The Minister said that the right hon. Gentleman’s comments struck a chord. I hope some of mine will strike a chord as well, and I hope my questions will be answered, although I must give warning that I have many questions, so perhaps saving them might be the best thing to do. This is about the future of the UK maritime industry, and the right hon. Member for Orkney and Shetland (Mr Carmichael) said it was about leadership. He is right: the future needs a vision and a plan—for employment, fair conditions, business and safety, as well as to attract young people and, especially, correct the lack of young women in the industry.

To begin with employment and fair conditions, I join the right hon. Member for Orkney and Shetland in being delighted that there is now an agreement in principle to end the long-running issue about the freight vessel serving the Northern Isles. The new charter basis will allow the wage issue to be resolved and crew members will be paid the minimum wage. The new arrangements come into effect next month, which is to be welcomed. I shall not go through the details, which he covered.

[Melanie Onn (Great Grimsby) (Lab)]

I thank the hon. Gentleman for raising the important question of the number of women employed in the industry, because there is a significant shortage. The right hon. Member for Orkney and Shetland (Mr Carmichael) raised the matter of vacancies, training and how much more effort could go into bringing more women into the industry. I have seen in the Humber ports a number of women playing an important and valuable role in the portside industry.

[Drew Hendry]

I welcome that comment, and will talk some more about such opportunities.

The wage deal that has been struck adds to the CalMac public sector contractor deal that runs in Scotland; it was named the Living Wage Foundation’s Scottish champion in 2016. Let us be straight about it: fair pay and conditions attract people to the industry and we should support that. All seafarers should have the national minimum wage, as my hon. Friend the Member for Glasgow South West (Chris Stephens) mentioned. However, while the RMT and Nautilus International have welcomed the actions in Scotland, they have sounded a code blue over the health of the Maritime and Coastguard Agency in the UK. They say that it is in crisis over current rates of recruitment and retention:

“In the view of the Maritime unions, it is no exaggeration to say that the MCA is in crisis. At current rates of recruitment and retention it will soon reach the stage where maritime safety is compromised because the regulator simply does not have sufficient number of qualified staff to discharge its core statutory duties, particularly vessel safety surveys and inspections.”

They also say that they are

“disappointed that the Government rejected the Transport Select Committee’s recommendation for ‘an independent review of how the Maritime and Coastguard Agency will successfully take on new responsibilities without a proportionate increase in its resources.’.”

I join them in that disappointment over those opportunities.

While I am talking about the MCA, I want to mention that at the moment it has the final say over ship-to-ship transfers in the Moray firth. I hope that the Minister will take on board the strength of feeling of the communities around the coast in my constituency and those of my colleagues about the order for ship-to-ship, and that he will consider that we have many times called—and still do—for power over that to be devolved to the Scottish Parliament.

The UK Government will need to get their act together on employment opportunities. According to their own transport figures—this relates to recruitment—more than half of UK seafarers are over 41 years old. Only 3% are women. Women make up only 28% to 30% of uncertified officers and ratings, and the bulk of those jobs are in catering. Men take up almost 100% of the engineering jobs. Brexit will no doubt pose challenges, but we should also consider that a high number of EU nationals are employed. For example, Polish people alone make up 16% of non-UK holders of certificates of equivalent competency for the UK shipping industry.

Things will not be helped, either, by the approach that is taken to looking after cadets. I was involved in trying to arrange the rescue of cadets from the Hanjin Louisiana, when the ship was moored offshore because the company had gone into administration. Four young cadets from Scotland were trapped on board for well over a month, with supplies scarce and not knowing what was going to happen. They were stuck there with limited communication, through email only. The UK Government were slow to get into action and attempt to look after them.

To move on to the maritime sector plan for business, as the right hon. Member for Orkney and Shetland mentioned, a great deal of the economy is affected by shipping. The hon. Member for Isle of Wight (Mr Turner) mentioned the complexities that we will face in the future. Peter Karlsen of Norbulk Shipping has said:

“The shipping industry in the UK will view the referendum result negatively, as does most business. It is a potential disruption to trade, movement of goods and labour. We are facing years of complex negotiations to divorce ourselves from the EU.”

He continues:

“Whether it remains as attractive to foreign investors or entrepreneurs, especially from the EU, to establish and conduct business here is uncertain.”

A lot needs to be done to put confidence into the UK maritime industry.

Of course, there are questions: what is to be done about freedom of movement, migrant workers, a customs union, and rights to operate in domestic trades of EU members who maintain flag-based cabotage restrictions? Will there be slower turnarounds that affect volume? I could go on and talk about employment law and contract. There are many questions but no answers yet and the clock is ticking. Of course in Scotland our preference is to stay in the single market and maintain a customs union. That is what we should do.

I want to conclude with some points about the MCA and safety. There is a long-running issue in the west of Scotland in particular as to emergency towing vessels. Two are required in the north of Scotland. One should be berthed in Stornaway to cover the west coast, the Northern Isles and, in particular, the Minches. We have had near things with the MV Parida, the oil rig the Transocean Winner famously coming to ground off the coast, and even HMS Astute, a nuclear submarine, running aground off Skye. We need to make sure that action will be taken, and there will not be another six years of ignoring communities and their representatives.

I want to finish with some questions. As to the towing vessels, when will the UK Government stop ignoring the needs of the people who work and live in, and know, the west of Scotland, and the many warning incidents that have been racked up, each edging closer to the possibility of a disaster? What lessons will they learn from the Hanjin Louisiana incident, and will they ensure cadets’ rights under the maritime labour convention the next time such an incident occurs? Would they take action or make representations to shipowners and flag states if there was evidence of seafarers being mistreated, or of the contravention of MLC-ILO measures? What plans do they have to tackle the recruitment and retention problem in the MCA? What initiatives are they taking or have they planned with respect to the incredible age and gender imbalance in UK shipping?

--- Later in debate ---

[The Minister of State, Department for Transport (Mr John Hayes)]

With great pleasure, Mr Walker. As I looked around the Chamber during this debate, I felt spoiled for choice because so many of my favourites are here. The hon. Member for Poplar and Limehouse (Jim Fitzpatrick) springs to mind, as does the hon. Member for Luton North (Kelvin Hopkins), my hon. Friend the Member for Isle of Wight (Mr Turner), the hon. Member for Great Grimsby (Melanie Onn) and, not least, yourself, Mr Walker.

Among those favourites stands proud today the right hon. Member for Orkney and Shetland (Mr Carmichael), who introduced the debate. He worked with me in Government and I know that he cares as passionately as I do about this subject—unsurprisingly, given the people he represents. When he introduced the debate he was right to emphasise the significance of the maritime sector to our economy, as well as to his constituents. The sector contributes £13 billion to the United Kingdom. It supports more than 100,000 jobs in thousands of different businesses. Just as much as that, and perhaps more, it is an area in which Britain—indeed, the United Kingdom—stands proud, because the quality of what we do in the sector is world renowned and widely admired across a range of services.

As has been said repeatedly, this is not the first time that I have done this job; it is my second visit to the Department for Transport as Shipping Minister. By the way, all ministerial jobs are visits—no more than that—as it is very important to recognise. None the less, when I was there the first time I initiated the maritime growth study to which the right hon. Gentleman and others have referred. He was very generous about it too, if I might say so. The reason for the study is that it seemed really important that we had a stocktake of our maritime circumstances and our maritime future. However, since then we have had the debate on the European Union. I will not digress by saying that the result was, for me, a dream come true, but it certainly changes our maritime future. It is therefore important that we review that growth study. I have put into place a stocktake of the study itself, which is currently taking place, so that we can consider its very helpful recommendations in the context of Brexit.

[Melanie Onn]

I thank the right hon. Gentleman—my dueting partner on occasions—for giving way.

[Mr Hayes]

I wasn’t going to mention it.

[Melanie Onn]

I just share it widely. On the point about embracing that opportunity, as he sees it, the Minister will be aware that the Humber is the UK’s busiest trading port. That is something that my hon. Friend the Member for Kingston upon Hull East (Karl Turner) will be equally as proud of as I am. It really is critical to hundreds of directly employed jobs and thousands of indirectly employed jobs as well. There is a sense that ports and maritime have been somewhat left behind in the past. Is part of this opportunity about putting ports at the heart of industrial strategy for the UK going forward?

[Mr Hayes]

Yes, that is a very well made point. The hon. Lady is right to say that we perhaps understated the significance of the maritime sector. This is a point that the chairman of the all-party parliamentary group for maritime and ports and former Shipping Minister, the hon. Member for Poplar and Limehouse, made in his contribution and has made previously. Part of the role of the Shipping Minister is to champion the sector; to speak loudly and repeatedly about its significance. The hon. Lady is right that it does not just affect the places where our ports are situated; it affects the whole of our economy. Some 95% of the goods that we purchase from abroad, and the things that we send to foreign countries, go through our ports. As the representative for Grimsby, she will know how important that is.