Deep Sea Mining Bill

Sheryll Murray Excerpts

Friday 24th January 2014 Commons Chamber

[Kerry McCarthy (Bristol East) (Lab)]

I beg to move amendment 1, page 5, line 32, insert—

‘In section 5 (Protection of the marine environment) leave out sections (1) and (2) and insert—

“(a) In determining whether to grant an exploration or exploitation licence the Secretary of State must not grant a licence unless and until it can be demonstrated that there are no indications for likely irreversible and or significant adverse effects as defined by the United Nations’ General Assembly / UN Food and Agricultural Organisation on the marine ecosystems and communities impacted by one or more of these operations. The absence of any such indications must be demonstrated through full and transparent prior environmental impact assessments and strategic impact assessments, which are required to be publicly evaluated and reviewed.

(b) In determining whether to grant an exploration or exploitation licence the Secretary of State must take into consideration the environmental definitions and designations of international bodies, including but not limited to the Convention on Biological Diversity (CBD) scientific criteria for ‘Ecologically or Biologically Significant marine Areas (EBSAs)’, the CBD guidance for the design of representative networks of Marine Protected Areas (MPAs), and the food and Agricultural Organisation (FAO) criteria for the identification of ‘Vulnerable Marine Ecosystems’ (VMEs) and any other related treaties which may come into force.”.’.

The amendment seeks to improve the environmental requirements of the licences that come through the UK state system. I thank the World Wildlife Fund UK for its help in drafting the amendment, which it stresses is not “wildly ambitious”. It does not express environmental ideals that are impossible to achieve, but it is consistent with environmental definitions in existing international treaties.

The deep seas are poorly understood ecosystems and no one knows exactly what is down there. The findings of environmental assessments are not shared, so scientists and non-governmental organisations do not know whether there are things that are new, rare, endangered, or indeed that could be used for other extractive purposes—for example, the pharmaceutical industry might well be interested in what is on the sea bed.

I was concerned that on Second Reading some Government Back-Bench Members who did not see a need to improve environmental safeguards were working on a misguided assumption that, as one said, the environmental effect of mining is not permanent

“and the habitat will return to its normal state after the mining ceases in an area.”—[Official Report, 6 September 2013; Vol. 567, c. 610.]

As we discussed in Committee, however, without better measures in place to protect deep sea ecosystems, mining could cause irreversible damage or have serious adverse effects on marine communities, specifically hydrothermal vent communities, which were only discovered in 1977, and seamounts, which have taken 10,000 years to develop and have low resilience to change. As home to the largest reservoir of marine genetic resources, hydrothermal vent communities are of huge interest to science and pharmaceutical companies, some of which have patents on their products. Mining could destroy those resources before they are understood or even discovered.

The amendment would reverse the burden of proof in section 5 of the 1981 Act, in line with the precautionary principle that if there are indications of likely but uncertain significant adverse environmental impacts, an activity should not be authorised to proceed. The amendment would require environmental impact assessments to be carried out before exploration or exploitation takes place, and for the process to be transparent so that it can be publicly evaluated. That would also address the serious weakness in the system that if a contractor considers the environmental risk of mining to be too high prior to the environmental impact assessment, that concession could still be offered to another contractor.

Greater transparency in the system would also help to address weaknesses in monitoring the compliance of companies with environmental regulations and the terms of licences. It is difficult, as one can imagine, to make site visits in deep sea areas to ensure that work is carried out correctly, and the current process is not properly independent of contractor influence. NGOs will not know whether an activity authorised by licence is damaging, and it would be up to the contractor to stop and self-assess.

I was pleased that in Committee, the Minister—on that occasion the Minister for Europe—confirmed that the Government want a coherent system between the International Seabed Authority’s regime and other international treaties. The amendment also seeks to align the Bill better with environmental definitions and designations of international bodies, which the Bill currently does not consider. For example, the Food and Agriculture Organisation’s committee on fisheries defines vulnerable marine ecosystems in the high seas where bottom fishing cannot take place. Those include breeding grounds for orange roughy, which are often fished for around hydrothermal vents—the same areas that could be open to deep sea mining.

Although the Bill’s promoter, the hon. Member for North East Cornwall, has said—

[Sheryll Murray (South East Cornwall) (Con)]

I just want to make the hon. Lady aware that my constituency is South East Cornwall.

[Kerry McCarthy]

I am terribly sorry. South East Cornwall is written in my notes, so I do not know why I said North East Cornwall—territorial ambitions do not stop at the deep seas.

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[Kerry McCarthy]

The hon. Gentleman makes a valid point. Indeed, my understanding is that at the moment a company does not even need a licence to explore. Ideally, we would want everyone to go through the ISA regime, and a respectable and reputable company would want to do that and follow the correct procedures, but I understand that there is nothing stopping them doing that. It is an ideological debate that we could have at great length in relation to many different areas of policy. We could look at labour terms and conditions, for example, or health and safety rules. I do not think that we should be involved in a race to the bottom—actually, perhaps that is exactly what we are talking about. We want to ensure that the UK sets an example by requiring companies to act responsibly. Our natural resources are incredibly precious, and I think that we should be taking the lead in trying to ensure that we protect the environment.

The timing of the Bill is slightly strange, as was the timing of the 1981 Act. The Act was introduced a year before the United Nations convention on the law of the sea was finalised, although it then took about eight years to come into effect. The ISA will look at its regulations, which will obviously apply on a wider basis, next year, so in some ways the Bill pre-empts that. Perhaps there could have been better co-ordination. It is also slightly strange that we have been talking about updating the 1981 Act since 1982, so it has taken an awfully long time to reach this point. I think we need to drive the agenda forward. I accept that we do not want to disadvantage British companies, but we want to ensure that there is a reputable and reasonable regime in place.

The Government have said that

“the environmental protections in section 5 of the 1981 legislation have proved entirely sufficient, as have the inspections”,

but only two licences have been issued so far, both for exploration. Exploitation of resources is an entirely different matter, and the very purpose of the Bill is forward thinking, to cover licences for exploitation that is at least five years away. In the case of oil and gas, which it will also open the doors to, it is still further away in the future.

If the amendment is made, I do not think that it would make the regime overly burdensome. As I have said, the proposal is moderate and consistent with other international designations. However, it would boost one of the Government’s reasons for introducing the Bill, which is to help to increase the UK’s influence in current negotiations and in determining standards, as I said to the hon. Member for Bury North (Mr Nuttall). I appreciate that the ISA regulatory framework is of greater importance because it applies to all deep sea mining, not just those activities that get sponsorship from the UK. In which case, let us apply the environmental standards that we would like to see agreed in the negotiations, rather than keep the 1981 version. They are workable standards that we hope will be applied at ISA level to enable sea bed mining to go ahead without causing irreparable damage. As I mentioned, I did not get a direct response from the Minister in Committee on the level of environmental safeguards that the Government are seeking to get common agreement on during the ISA negotiations, although I was pleased that he made it clear that the international framework can and should be improved, as can section 5.

[Sheryll Murray]

I thank the hon. Member for Bristol East (Kerry McCarthy), who, along with her colleagues the hon. Members for Brent North (Barry Gardiner), for Stoke-on-Trent North (Joan Walley), for Scunthorpe (Nic Dakin), for North Ayrshire and Arran (Katy Clark), for Inverclyde (Mr McKenzie) and for Edinburgh North and Leith (Mark Lazarowicz), and the hon. Member for Brighton, Pavilion (Caroline Lucas), tabled the amendment. I know that they all feel strongly about the need to protect the environment.

Coming, as I do, from what I consider to be the beautiful county in Cornwall, I of course sympathise strongly with those hon. Members. [Interruption.] The Minister indicates that I might come from the second most beautiful county, so perhaps I should have referred to the wider south-west. Furthermore, I come from a fishing background, so I know well the impact that pollution can have on fishermen and their livelihoods. I also know that in some of the areas that the Bill relates to it would be very difficult to fish for species such as orange roughy, as the hon. Member for Bristol East indicated.

Since I have been in charge of the Bill, I have learned a lot about deep sea mining. In particular, I have become very conscious of the importance of environmental conditions, which will have to be taken into account once deep sea mining becomes a reality. Of course, we are looking only at exploration. I understand that the UK has issued one licence for exploration, and another one is going through, but exploitation, as the hon. Lady mentioned, is a long way off. I know that the Government are very aware of environmental issues and am sure that they will keep to their commitment to ensure the application of the highest environmental standards. I can assure Members on both sides of the Chamber that I, too, will be very astute to ensure that happens.

Section 5 of the 1981 Act will not be amended by the Bill, except for technical changes to include references to Scottish Ministers. I believe that that is a real benefit to Scotland and the United Kingdom. Section 5 already includes provisions to ensure that protection of the marine environment is taken into account, and indeed is at the forefront of the Secretary of State’s mind, when licences are issued. While I sympathise with the hon. Lady’s concerns, I do not think the amendment is necessary. I understand also that the Minister will raise some technical objections to it and that the Government will not support it. In those circumstances, I hope that she will not press the amendment, so that the Bill can make progress.

[The Minister of State, Foreign and Commonwealth Office (Mr Hugo Swire)]

I was interested to hear some of the suggestions made this morning, as I have attended some, although not all, of the consideration of the Bill as it has made progress. The Government completely understand the sentiments that have led the hon. Member for Bristol East (Kerry McCarthy) and the hon. Member for Brent North (Barry Gardiner) to table the amendment —the hon. Gentleman is not in his place today, but he has been an assiduous attendee previously. The Government are committed to ensuring that the highest environmental standards are followed when exploration and exploitation of the deep sea bed take place. As the hon. Lady said, we are often—pardon the pun—in uncharted waters: this is new and exploratory, so environmental considerations need to be at the forefront of our proposals.

As hon. Members will know, the Government were approached 18 months ago by a major commercial company, Lockheed Martin, to sponsor its application to explore for minerals on the deep sea bed. When we received that approach, we took great pains to ensure that the environmental standards were the best that could be devised. The Department for Environment, Food and Rural Affairs was closely involved, as were two eminent scientists from outside the Government. When the application reached the council of the International Seabed Authority, the environmental aspects were generally praised by delegations. At the meeting of the council last year, when the first discussion of the possible shape of future regulations took place, the Government made it clear that they would expect those regulations to incorporate environmental provisions of the highest standards.

The British Government have already spoken and acted in a manner that will ensure that the highest environmental standards are adhered to, and I know that the need to protect the natural environment has universal support across the House. However, the Government cannot support the amendment, and I shall try to explain why.

Section 5 of the 1981 Act, to which the hon. Member for Bristol East and my hon. Friend the Member for South East Cornwall (Sheryll Murray) referred, already includes clear provisions on the need to protect the marine environment. I know that on Second Reading the hon. Member for Brent North suggested that section 5 might not be sufficiently up to date, but we do not believe that to be the case. Section 5 is worded in a general manner and can accommodate changes to environmental perspectives.

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[Sheryll Murray]

I beg to move, That the Bill be now read the Third time.

This is a good Bill and an important one for the UK economy. It is also timely. As my hon. Friend the Minister mentioned, in 2012 the UK sponsored its first licence application to the ISA for a UK company to explore the deep sea for polymetallic nodules in the Pacific ocean. No one has learned more than I have about not only polymetallic nodules and cobalt-rich crusts but polymetallic vents and how some of them are dead, while others are smoking and look like they have their own ecosystems—those are the ones we all want to protect.

The UK Government sponsored the last licence issued under the 1981 Act, but that Act is restricted to exploration for polymetallic nodules; it does not allow exploration for other things, which is why it is essential that it be updated. As the hon. Member for Bristol East (Kerry McCarthy) mentioned, the Act predates the UN convention on the law of the sea and the subsequent implementing agreement on part 11 of the convention on deep-sea mining. In some small, niche areas, it is not entirely consistent with the convention, such as on the enforcement of decisions on sea bed disputes in the chamber of the International Tribunal for the Law of the Sea, established under the convention.

It is important for the UK that we put our legislation in good order, not least because we are strong proponents of the convention. It is also important economically. As many UK companies have expertise in the area, it could provide many benefits to the UK economy. I was delighted, therefore, that in Committee we extended the Bill to cover Scotland, which also has a lot of expertise gained through our exploration and exploitation of North sea oil. It will also benefit my own part of the country in the south-west and south of England. Plymouth university and Southampton university have departments looking into and gaining a lot of expertise in this area, which is unknown to many of us.

Sea bed mining has enormous potential. Scientists know that lying on the sea bed, at great depths, are valuable new sources of nickel, copper, cobalt, manganese and rare earth elements. These metals are being mined to extinction on land, so we need to find new sources. Metals such as nickel, used in superalloys, cobalt and manganese, used in energy storage technology, which will obviously benefit everybody, and rare earth elements, which are strategically important, are used in low- carbon technology, lasers, sub-conductors and many telecommunication applications. There are large quantities of these metals, and it is right that the UK benefit from its share of this groundbreaking new technology, which I hope will benefit UK companies considerably.

On 11 March last year, the Prime Minister attended an event at the ExCeL centre celebrating the granting of an exploration contract by the ISA to the UK. He spoke of the benefits to the UK and of the supply chain jobs likely to be created across the UK. As I mentioned, he said that jobs could be created not just in Plymouth and Southampton but in Portsmouth, Bristol, Liverpool, Newcastle and Aberdeen, in sectors such as engineering and the manufacture of high-tech remotely operated underwater vehicles and ship stabilisation systems. He also said that that was estimated to be worth up to £40 billion to our economy over the next 30 years. At this point, I should correct some information that I gave in Committee: I said that it would be worth £30 billion by 2030.

The Prime Minister welcomed the identification of more than 80 United Kingdom companies with relevant expertise with which the UK contractor might be able to work. He also welcomed the industry workshop event that had been arranged to follow the ceremony of the granting of the contract.

I thank the Government and individual Ministers for supporting my Bill, and I thank experts in the Department who have taught me an awful lot about deep-sea mining—about a world that lies at an even greater depth than that in which my late husband used to tow his fishing nets. I also thank the staff of the Public Bill Office for assisting me again. This is the second time I have spoken on Third Reading of a private Member’s Bill: I did so last year as well.

I can assure Members that deep-sea mining is not fracking, and does not involve any of the techniques that are associated with land-based mining. Specifically, deep-sea mining for polymetallic nodules involves no excavation of rock. It involves no use of explosives, and the nodules lie on the sea bed very much like the fish that my husband used to harvest in his nets. The techniques that are used to mine the nodules are likely to involve scooping or vacuuming them up. I do not pretend that the process will be environmentally neutral, but it is potentially less environmentally damaging than land-based mining for the same minerals.

[Kerry McCarthy]

I appreciate what the hon. Lady is saying about the mining of polymetallic nodules—she may well be about to deal with this point, which I believe she covered on Second Reading—but are not the additional forms of exploration and exploitation allowed by the Bill potentially more environmentally damaging, given that they would involve a great deal more than just scooping nodules off the sea bed?

[Sheryll Murray]

The hon. Lady is obviously psychic. I was indeed about to deal with that point.

Mining for polymetallic sulphides and cobalt-rich crusts is a different matter, because it would involve the excavation of rocks. Mining for those minerals is even further off than mining for polymetallic nodules, and in that context the principles that might apply to nodules would have to be considered again. I am determined, and I know that the Government are determined, to ensure that the highest environmental standards will be applied to any exploitation of the minerals to which the hon. Lady has referred, and she has implied that she shares that determination. I can inform her that international regulations governing the exploration of those minerals have been agreed and were in place in advance of the issuing of any exploration contracts, and that various regulations have continued to be reviewed and updated in the light of new developments and considerations.

I think that I speak for both this Government and previous Governments in saying that the United Kingdom prides itself on taking a close interest in these matters. We have observed that interest since the passing of the 1981 Act. The Bill updates and modernises our existing legislation following the ratification of various treaties. The United Kingdom was one of the first states to sponsor a commercial company to undertake exploration, and I trust that we shall be able to demonstrate the highest regard for international law by passing my Bill.

This is a good Bill, and it is important for the United Kingdom’s economy. It is all the better now following the passing of amendments to extend its provisions to Scotland. We engaged in some interesting and thought-provoking discussions on Second Reading and in Committee, which were all the better for the points raised by the hon. Member for Bristol East. There is clearly a common understanding of the fact that the exploitation of minerals in the deep sea is beyond any state’s jurisdiction, and will inevitably take place in the future. It is, therefore, important for the United Kingdom to be at the heart of it, and to assist the development of international regulations on deep-sea mining. I am glad that the Bill appears to have general cross-party support, and I hope that that support will continue in the other place.

I am sure that my hon. Friend the Minister will be able to deal with some of the technical aspects of the Bill when he sums up the debate.

[Kerry McCarthy]

I do not intend to speak for long. Let me begin by congratulating the hon. Member for South East Cornwall (Sheryll Murray). It is always challenging to take a private Member’s Bill through all its parliamentary stages, not least when the Bill contains as much technical detail and covers as many new areas as this one. However, I understood from the hon. Lady that this was her second experience of the process. She is a great deal luckier than I have been, because in my nine years as a Member of Parliament, I have never been successful in the ballot for private Members' Bills.

We on the Labour Front Bench do not oppose the Bill, because we accept that deep sea mining is inevitable. We could not prevent or even delay it even if we wanted to. We agree with the Government and the hon. Lady that it is important for the United Kingdom to be at the forefront of the benefits to be had from the industry. However, we want to be at the forefront not just because of the business opportunities afforded to the UK, but in order to be able to determine standards for ourselves rather than leaving it to others who may not consider environmental protection as important as we do.

I understand that the Government conceded privately that the Bill was not needed quite yet, and perhaps was not quite ready. A number of amendments in Committee extended its provisions to Scotland because discussions had not yet taken place. We accept that this Bill is a work in progress, but we think that it is, perhaps, a little bit rushed. It could perhaps have been dealt with as a Government Bill. We know the Government have supported it from the outset and, given that we have very little legislation going through Parliament at the moment, we had an ideal opportunity to discuss this as a Front-Bench Bill on the Floor of the House with several days of debate.

[Sheryll Murray]

May I clarify a point the hon. Lady has made? This Bill was going to be presented with or without Scotland measures. The amendments to include Scotland were introduced because that would be of great benefit. It is my Bill and I am leading it through, and it would have been presented without Scotland measures if necessary.

[Kerry McCarthy]

My point was not specifically about the Scottish amendment. I was just using that as one example to make my point. The discussions with Scotland took place, or were finalised, after the Bill had been introduced. My understanding was that the Government had conceded that, and, because the ISA regulations are being debated next year and because of other developments, the Bill might be slightly premature and a little bit rushed. It might have been given more consideration. We are where we are now, however, in terms of the parliamentary process. I hope the other place has the opportunity to scrutinise the Bill in detail and perhaps make further amendments that would improve it.

I want to make one further point, which arose from the Committee discussions. It remained unclear how the finances of this will work and whether the UK would in fact get a share of the profits. We have been told that this is very much about wanting the UK to benefit from being in the vanguard of the exploration. As has been mentioned, the Prime Minister has claimed that sea bed mining could be worth a staggering £40 billion to the UK economy over the next 30 years, although I have not seen any detailed analysis to support that estimate.

I appreciate that it is slightly jumping ahead of even where the ISA is currently at, because it has not drafted its regulations yet, but the issue of operator profits is critical to this debate. I understand that the UK would benefit from corporation tax from those UK companies or foreign companies, such as Lockheed Martin, with UK subsidiaries which get sponsored by the UK, although once their profits have been understandably offset by their exploratory costs and the costs of environmental assessments, this amount could be quite limited. Certainly in the case of UK subsidiaries, profits may go to the parent company, but unlike the tax regime on North sea oil revenues, the British Exchequer will not be plugged into the profits, as the riches of the sea bed do not belong to the UK; they belong to what is described as the “common heritage of mankind” and those resources do not belong to any one state, and no one state would have the right to claim ownership.

Returning to my point about this Bill being slightly premature, I understand that there are discussions about a possible sovereign wealth fund, created from a fee that could be charged on output. That could be used for the benefit of developing countries, but again discussions on this are at an early stage and we do not yet know much about it. Again, I would have liked to have had more clarity on this. More than 30 years have passed since we last considered legislation on this topic with the 1981 Act. Given that it has taken us so long to get to the point where we are revisiting the matter, I would have liked to have had more clarity on that issue and on the environmental issues. We are where we are, however, and I hope when the Bill gets to the Lords there can be more clarity. We will support the Bill at this stage, however, because we think that if deep sea mining is to go ahead, there ought to be some sort of licensing system in place.

[Mr David Nuttall (Bury North) (Con)]

It is a pleasure to follow the hon. Member for Bristol East (Kerry McCarthy), who speaks from the Opposition Front Bench. She raised an interesting point about what would happen to the proceeds of mineral exploitation, and it deserves further consideration because the situation is not as straightforward as it was with North sea oil. We should examine exactly how this country will be able to benefit. Are we going to benefit directly, or jointly with other countries across the globe?

I rise to support the Bill. I supported it on Second Reading, and I thank my hon. Friend the Member for South East Cornwall (Sheryll Murray) for piloting it through to Third Reading. To do that once is quite an achievement, but to do it twice is particularly remarkable, and she should be congratulated on that, and on succeeding in the ballot twice.

[Sheryll Murray]

My hon. Friend may be interested to know that the reason I believe I was selected twice was because I used the same number twice: 336. Our first fishing boat which we had brand-new was FY 336. I do not want anybody to steal that number in future ballots.

[Mr Nuttall]

When I enter the ballot next year, if I get into the Lobby before my hon. Friend, I will specifically not choose 336, and I will urge all Members on both sides of the House to try to avoid that number because it has obviously brought my hon. Friend great success. I know it is particularly poignant for her.

The deep sea bed is one of the last unexplored areas of our world. In previous centuries mankind has gone off exploring the world in pretty much an unregulated and uncontrolled manner, but that is not the way the modern world operates. It is right that in the 21st century before mankind goes digging around on the deep sea bed causing who knows what sort of damage, a framework needs to be put in place to ensure that the exploration is carried out in a carefully controlled manner and causes as little damage as possible to the delicate ecosystems of the deep sea bed. The plethora of international agreements and our own domestic legislation seek to do that.

There is a danger, however, that in putting together our own domestic legislation, we put in place licence conditions that companies see as too onerous, too complicated and too prescriptive, and consequently those companies will not come to the UK to obtain their licence approval; they will go to countries whose legislation is, perhaps, less prescriptive than ours.

[Sheryll Murray]

My hon. Friend makes a good point. Does he also agree that there is the potential of companies moving their whole operations from the UK to other countries?

[Mr Nuttall]

There is that risk if exploration companies decide and form the opinion that our legislative framework is too onerous, prescriptive and complicated. I hope that that is not the case. Certainly, it would not have my support or the support of the Government or anyone in the House if we felt that it was the case. There is a delicate balance to be struck between trying to protect the environment, maximising revenues and encouraging exploration for the benefit of mankind. They are all worthy things to do, and the Bill in its own way seeks to strike that careful balance. It is not an easy task to pull off, because if we go too far in one direction, we will upset something else. There is a balance to be struck between mankind exploiting for the benefit of us all the resources that are in the deep sea in the other parts of the world and protecting the environment that is down there. I sincerely hope that this Bill will receive its Third Reading and that when it reaches the other place, it will have a speedy passage. I wish it well.

[Mr Swire]

I wish to put on record my thanks to my hon. Friend the Member for South East Cornwall (Sheryll Murray)—and not, as she was erroneously called, the hon. Member for North East Cornwall. I think North Cornwall currently belongs to our coalition partners, but I am sure that at the next general election she, like all of us in the south-west, will be doing everything to ensure that if she does not actually personally occupy that part of Cornwall, there will be a member of the same party who does. It is worth putting on the record that it is the only seat in Cornwall—[Interruption.] There is of course St Ives, which is extremely vulnerable to the Conservative surge.

[Sheryll Murray]

My right hon. Friend will wish to know that, currently, our coalition partners hold St Ives, St Austell and Newquay, and North Cornwall. The Conservatives currently hold—

[Madam Deputy Speaker (Dawn Primarolo)]

Order. The hon. Lady will resume her seat. Before the Minister continues, let me say that that has nothing to do with the Third Reading of this Bill. I know that it is Friday and that the right hon. Gentleman and the hon. Lady are looking forward to getting back to Cornwall, so if we could concentrate just on the Bill I would be a very happy Deputy Speaker.

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[Sheryll Murray]

With the leave of the House, I just want to put on the record once again my thanks to the Minister and the Department’s helpful officials. I am also very grateful for the help I received from the Public Bill Office and thank the hon. Member for Bristol East (Kerry McCarthy) for her contribution.

Question put and agreed to.

Bill accordingly read the Third time and passed.