Seafarers' Wages Bill [ Lords ] (Second sitting)

Natalie Elphicke Excerpts

Committee stage
Tuesday 17th January 2023 Public Bill Committees

[Mr Holden]

I thank hon. Members and welcome the spirit of amendment 58, which aims to provide urgent welfare facilities when they are needed. The Government believe, however, that those would be covered by clause 9(3), under which crew would be provided with access to urgent medical or welfare facilities or to undertake other emergency measures. We support the intention behind the amendment; in urgent cases concerning safety, a ship should be able to access the harbour under the framework that we have set out. Where an incident was not safety-related or related to the welfare of the crew and was therefore not covered by the force majeure exception, the ship would not be permitted access to the harbour.

[Mrs Natalie Elphicke (Dover) (Con)]

The concern, and I am pleased to hear the Minister has some sympathy for it, is that we do not want seafarers caught in the middle of the bad behaviour of bosses. I appreciate that the provision to which he draws our attention relates to that, but will he further consider whether that needs to be broader to protect seafarers?

[Mr Holden]

Members on both sides of the Committee are raising a similar issue about welfare. As an additional safeguard, the Secretary of State has the power to direct a harbour authority not to comply with its duty to refuse access. That will ensure that access is not denied—this has to be in rare circumstances for the Bill to work—where it would cause damage by disrupting key passenger services and supply chains. There are rare instances in which the Secretary of State has an overriding power, but on the broad swathe of trying to provide welfare, our view is that that is covered already under clause 9(3).

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[Mike Kane]

Indeed. Given the track record of shameful companies such as P&O, we have to change.

My final concluding remarks, Ms Harris, are to thank you for your excellent chairing for the first time in such a Committee. I also thank Mr Davies for his excellent deliberations as Chair this morning, and the Minister, because the Bill was brought to the House in the right spirit, for trying to do something. Members across the Committee recognise that, and I thank all those who participated and contributed. With that, I also thank staff at the Department for Transport and the Clerks of the House.

[Mrs Elphicke]

It is to be noted that new clauses 5 and 7 concern reports about whether more needs to be done. I think we agree across the Committee and more widely that what happened in the P&O case was a spark to firm action going forward.

We touched on the issue of roster patterns earlier on, but I want to address it specifically. We know it is something the Maritime and Coastguard Agency has looked at on the short straits. For me, the new clauses do not address the fundamental question of who will be responsible for ensuring appropriate and safe working conditions on that route. That responsibility sits with the MCA, but concerns have rightly been raised about individual operations, and new clause 5 will not go any way to addressing those particular concerns. I think the bilateral agreements being discussed may form a route to looking at some of the issues, particularly those that apply to the route between Dover and France.

Turning to pensions and wages more broadly, this is the first piece of legislation of its type. There are a number of mechanisms in this place, including the Transport Committee, which has shown to be diligent in its support of not just the P&O workforce but transport matters more generally. There are additional forums in this place that provide the correct routes and opportunities to assess whether this legislation is reaching its objectives and intent.

On new clause 7, it is important that the remuneration of affected seafarers is assessed and considered. I have been encouraged during discussions I have had on remuneration with DFDS, which operates on the Dover-Calais route, to hear that it embraces the opportunity to have these conversations about improving conditions for seafarers. But as regards the Bill, part of the nine-point plan is a comprehensive approach to tackling this issue following the appalling actions of P&O. Overburdening the Bill with additional requirements for statutory reports and assessments may actually delay the important work we all have to do—be it bilateral or voluntary agreements or other options.

[Karl Turner (Kingston upon Hull East) (Lab)]

I am interested in why the hon. Lady thinks putting the requirement to report into a statutory format would create a delay. How on earth does she believe it would delay anything?

[Mrs Elphicke]

I thank the hon. Gentleman for his question. Let me explain. This Bill is a piece of legislation that has been brought forward very quickly—in a number of months. I think we would all agree with that, considering the time that things take in this place, but it has a number of journeys to continue on. The first reports under the proposals here would take some time—within six months for the first report. This work is ongoing with the Department right now. I do not want to wait six months. What happens if France says, “Let’s not conclude the bilaterals. Let’s wait for your report.” It is absolutely right that Transport Ministers and the Secretary of State keep us updated and that they are accountable in this place to us all, as they are through the Transport Committee and on the Floor of the House, to make sure that the legislation does what it says, but I do not want to be waiting on a report for six months or a year; I want action now for the workers on the short straits.

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[David Linden]

The hon. Member is spot on. The reality is that this gentleman factored in that he would appear before a Select Committee, that it would be uncomfortable and that he would probably have to get some crisis comms advice. I rather suspect that Peter Hebblethwaite is walking around waving the fact that he has been able to withstand all this pressure from Parliament as a feather in his cap. He will see it as some sort of virtue that he can sell to future employers. The hon. Member is absolutely spot on: the fact that there is no personal liability means that these kinds of directors will behave with impunity.

New clause 9 does not mandate Members to vote for a report. It mandates us, on a moral basis, to vote for action to ensure that a company director who was as egregious as Peter Hebblethwaite can never again get away with that. Members of this House have a responsibility to stand up for their constituents. On that basis, I have tabled the new clause.

[Mrs Elphicke]

I wish to speak about this new clause, because we are all of the view that Peter Hebblethwaite should not be allowed to be a director. I made a formal complaint to the Insolvency Service on directors disqualification for the whole of that board. The Insolvency Service has still not completed its civil proceedings, although it has said that it is not minded to take criminal proceedings. It is clearly unacceptable that company bosses are allowed to act in that way and that directors disqualification does not apply.

This is a specific Bill dealing with a specific set of circumstances. I would like the relevant Department to look at why the Company Directors Disqualification Act 1986 and the criminal obligations in the Insolvency Service did not apply to this specific case. I have made representations to the appropriate Ministers accordingly.

I completely agree with the sentiments expressed by the hon. Member for Kingston upon Hull East, except his view that the Government have not taken any action. Throughout the P&O situation, we have walked literally shoulder to shoulder in support of people.

[Karl Turner]

I think the hon. Lady misunderstood what I said; perhaps I was not clear enough. I did not say that the Government have not taken action. Of course they have—we have a Bill. That is a start. It is not strong enough by any stretch of the imagination, frankly, but it is a start, and I commend the Ministers who were responsible for putting it together on an incredibly speedy timescale. However, the fact is that the calculation was made that the Government would turn a blind eye. That is the suggestion that I put to the Committee, and I think it is right. That was the reality of it—that nothing would happen.

[Mrs Elphicke]

I thank the hon. Gentleman for that intervention. That is clearly rubbish, because the Government at the time, including the then Secretary of State, my right hon. Friend the Member for Welwyn Hatfield (Grant Shapps), took immediate action—action that no one expected to be taken—as did the Minister at the time, my hon. Friend the Member for Witney. I was involved directly in that action along with the then Secretary of State, the then Prime Minister and a number of Government Ministers, including my hon. Friend the Member for Witney, in relation to this issue. That action is the reason why we have the nine-point plan and why we have the Bill.

Opposition Members will always say that whatever the Government do does not go far enough. However, I have to say, in representing the people in Dover who were specifically affected by P&O, that I am very proud of the action that we have taken across the Chamber and so far in this House. I want to see the Bill put on the statute book at pace.

[David Linden]

The hon. Lady is talking about the importance of taking action. Other than a pretty toe-curling Select Committee appearance and a couple of bad media interviews, the only action I have seen so far is that Peter Hebblethwaite has received a promotion. He is still able to act as a company director, so for the sake of the hon. Lady’s constituents, I ask her to reflect on the fact that until such a time as Peter Hebblethwaite is unable to act as a director and get away with such behaviour in future, that action will not be enough.

[Mrs Elphicke]

As I said, I do not think that Peter Hebblethwaite should be a director and I am taking steps to ask the Insolvency Service to remove him.

[Karl Turner]

rose—

[Mrs Elphicke]

I will come back to the hon. Gentleman in a moment. What we have seen with P&O is why I think the right place for tackling this is through the Department for Business, Energy and Industrial Strategy, which I have been encouraging to look at this issue. P&O did not do this once or twice, but three times: it promoted someone to be chief executive who did what the bosses wanted, and then that person either got a payout and got moved on, or got a payout and got promoted. We have seen a pattern of behaviour where people at the senior level have been rewarded for doing what is in the owners’ interests, to the detriment of the company as a whole. We need to look at that, because that pattern of business behaviour is very clear on the face of it and it ought to have been clear to Companies House. We should look at that in relation to not just P&O, but other companies.

[Karl Turner]

I am sorry that the hon. Lady thinks what I said was “clearly rubbish”. The point that I was making—I will try to be calm—is that there was no deterrent. That should be the test. If she is satisfied that the Bill will deter all the bad employers from potentially following suit and making the same calculation—that things cannot be affected in a way that deters them from taking such terrible actions—that is fine, and she is content with the Bill. My point is that the Bill does not provide a deterrent, but the new clause proposed by the hon. Member for Glasgow East definitely does by making that director personally liable.

[Mrs Elphicke]

I think we have already explored how adding the odd report here or there will not be the game changer that is needed to ensure that acts like this do not happen again. That is why the Bill is part of an overall strategy and a nine-point plan, as the Government have set out.

New clause 9 would go considerably further than the obligations that already apply to non-compliance with the minimum wage regime. That regime includes criminal and civil penalties, so I do not think that the new clause would sit with the existing provisions on the statute book for civil and criminal liability in relation to the minimum wage regime. It is important that enforcement is effective and that it works. New provisions should fit in with existing legislation, and not conflict with or confuse it.

I fully share the sentiment of making those responsible for P&O—not just Peter Hebblethwaite but other directors on the board—personally criminally responsible, but unfortunately the new clause does not get us to that position. Personal liability is not just about wages; we need to ensure that there is appropriate liability and responsibility for the very serious issues that we have discussed with respect to safety at sea. Although I support the sentiment behind the new clause, I do not think that it would achieve the objectives that have been expressed.

[Karl Turner]

I had not intended to speak, but I am afraid that I have been motivated by the hon. Member for Dover to say a few words. I am confused. I am not trying to be awkward or to put her under any particular pressure, but I am truly confused by her suggestion that the new clause does not fit, as I think she said, with minimum wage legislation. Frankly, that is just nonsense. She will have to answer to her constituents who go on those ferries day in, day out—passengers, not crew.

The tragedy is that, because of what P&O Ferries did, the crew are exploited foreign workers. The passengers are probably worried, as I would be if I was travelling on one of those ferries, about seafarer fatigue. They are probably worried about the fact that people are doing 17 weeks with very few rest breaks. They are working seven days a week, for 12 and 13 hours a day, and might be charged for accommodation and grub. That is the problem that people will foresee. Respectfully, the hon. Member should think carefully about not supporting the new clause. It is no good saying that she respects the sentiment; she ought to agree with the new clause and vote with the Opposition.

[Mrs Elphicke]

I thank the hon. Gentleman for giving way, and I ask for a bit of latitude in responding. It is disappointing that Opposition Members are determined to get their headlines and try to make a point of difference. They are trying to say that we on the Government Benches are not working for the people and the seafarers when we are the people leading this legislation. I was clear that the new clause does not go so far as to work for safety. On rosters, asking for a report is not a serious attempt to deal with the issue. We know that a serious attempt will mean the rosters being dealt with outside this legislation. The Minister has set out issues in relation to—

[The Chair]

Order. We need to get back to the new clause.