Oral Answers to Questions

Debate between Stephen Hammond and Penny Mordaunt

Wednesday 18th April 2018 Commons Chamber

[Penny Mordaunt]

Ensuring that we have good access is critical to whatever work we do in Rakhine and our prime concern is to stop any initial violence. Our main effort to help the Rohingya is ensuring that we are as prepared as we can be for the cyclone season that is about to hit Cox’s Bazar.

[Stephen Hammond (Wimbledon) (Con)]

T6. I welcome the Prime Minister’s statement yesterday on malaria that we will remain committed to the fight, and the hosting of today’s summit. However, with the United Nations saying that progress on malaria is now at risk, what influence will the Secretary of State use on Commonwealth countries and others to ensure that the fight continues?

Oral Answers to Questions

Debate between Stephen Hammond and Penny Mordaunt

Monday 18th January 2016 Commons Chamber

[Penny Mordaunt]

We do a huge amount of operational and practical work, such as on Baltic air policing. We have also been very active through our diplomatic channels, through both NATO and the EU, to hold Russia’s feet to the fire on these issues. Progress is being made. There has been recent progress, with fewer violations of the ceasefire. We will continue to act both practically and diplomatically.

[Stephen Hammond (Wimbledon) (Con)]

4. What assessment he has made of progress in the international campaign against Daesh.

Sulphur Regulations

Debate between Stephen Hammond and Penny Mordaunt

Wednesday 18th June 2014 Westminster Hall

[Stephen Hammond]

The hon. Gentleman is right to be concerned. If he waits a few minutes I will tell him directly what the Government have done and are doing now.

The idea that is being put forward today, namely that these are new regulations and a crunch is coming—there is not; there is a date for implementation coming—is not supported by all of the chamber’s own members. On the contrary, some members of the chamber belong to the Trident Alliance, which is a coalition of shipping owners and operators who share a common interest and do not share the views being put across.

I accept that shipping is not the only source of pollutant emissions, but without the controls, polluting emissions from ships will grow significantly because of the reductions made by other modes of transport: unless action is taken, by 2020 shipping will account for more than half of all sulphur emissions in Europe.

As everyone has recognised, the limits undoubtedly pose challenges for shipowners, particularly for those whose ships operate predominantly or exclusively in an emission control area. The Government appreciate that some shipowners, and ferry operators in particular, have raised concerns about the cost of complying with the new limits. From our discussions, we are conscious that the impacts are not spread evenly, and that routes for multipurpose vessels—those carrying both passengers and freight—are likely to see the highest costs. We also recognise the importance of ferries and jobs.

Throughout the whole process we have therefore sought to implement the sulphur limits in a way that maximises the opportunity for the industry to minimise the economic impact. I became shipping Minister in 2012, and immediately in October of that year and again in 2013 I chaired round-table meetings of industry stakeholders, including from shipping, the ports, abatement technology—more colloquially known as scrubbing technology—oil refining and logistics sectors, to consider how we could make sure that people could work to comply with the regulations in a way that minimised regulation and cost. As a direct result, we commissioned a survey to look at the economic costs to industry.

[Penny Mordaunt]

I thank the Minister for what he has done with the shipping sector. Whatever the sector needs, whether it be incentives or a boot up the backside, that work needs to carry on. Does he recognise that it is not just the sector itself that is affected, but the ports and jobs connected to ports? In Portsmouth we are putting a lot of money into our commercial port. Will he give us an assurance today that our ambitions—whether on ferries, cruise liners or freight—will be able to be met if the directive is implemented?

[Stephen Hammond]

I certainly hope to be able to do that by the end of my speech, and to explain some of the things we are doing. Portsmouth, like so many other places, including Hull, has a booming port industry. There is a renaissance, particularly in my hon. Friend’s port and in my home town of Southampton, from where there are huge exports, the like of which would not have been dreamed of 15 years ago. That is a tribute to the port industry, which is now a great success.

As a direct result of the round-table discussions, which were also about commissioning work on the economic costs, I immediately contacted the Secretary-General of the IMO and made exactly the point that the hon. Member for Kingston upon Hull East made: we must not wait for a review of the 2020 regulations, but should start a review immediately. I persuaded the IMO that it should start the review promptly following the implementation of these regulations.

Another outcome of the meetings is that the Government are looking at ways of helping the industry. My officials have been working closely with the UK Chamber of Shipping—which is why I am so disappointed—for a considerable period. We have solicited an assurance from the European Union that it will meet individual ferry operators who approach it to discuss a route to compliance. I accept that there are important issues to address, but both those things are a major step forward in helping the industry with the prospect of the regulatory burden.

One question is whether, as ships are encouraged to use fuels with a lower sulphur content, there will be sufficient fuel available. That is why the review is so important. It is equally important to look at other issues. Do we have an opportunity not to implement the sulphur limits? No, we do not because we would fail to meet international treaty obligations. More than that, we consistently spoke to EU fellow nations, none of which was prepared to deflect or move away from the time scales. If we do not implement the new limits, non-compliant UK-flagged ships will still be subject to enforcement action at UK ports. We do not have the opportunity or option of avoiding the limits. We cannot delay implementing the limits even on vulnerable routes. There is no exemption and that is why we have worked with the EU to allow ferry operators to discuss flexible implementation.

We held extensive discussions with other north European states that will be affected by the limits that will apply in the North sea. We pressed for exemptions for vulnerable routes, but there was no support from other members. The Government have not only pressed the case for ferry operators directly with the EU, but negotiated with other countries.

Shipowners have the option of installing scrubber technology or the exhaust gas cleaning system and we have been working with them on the cost of those systems. I recognise that significant capital is required and the Department is exploring the scope for securing EU finance under the trans-European network programme and affordable capital from the European investment bank for shipowners and ports that want to benefit from investment in that green technology.

The hon. Member for Kingston upon Hull East referred to a possible modal shift from sea to road and the identification of total fuel costs. Again, we are consulting on draft UK legislation. Part of that consultation is directly about the cost, but if we look at whether the implementation of the 0.1% sulphur limit will lead to a rise in costs for motorists, even if every ship in the emissions control area used 0.1% sulphur fuel rather than the abatement technology, we see that would still be less than 10% of the total market for middle-distillate diesel fuel. There will be a potential cost for motorists, but it will not be as great as stated. It is highly unlikely that every ship will use that. Many will use the scrubbing technology and I hope that the Government will be able to secure EU finance to enable shipowners to make transitional arrangements.

We have also been discussing with the industry our plans for applying a much more pragmatic approach to enforcement. It is important that enforcement is consistent and fair. My officials have already discussed with other member states and the Commission how to ensure a fair and consistent approach throughout the EU, so that services from UK ports are not unfairly disadvantaged.

It is important to look beyond compliance with the limits in the control area. I have been working closely with the Secretary-General of the IMO on the availability of 0.5% sulphur fuel in 2020, which will be the next challenge. l am pleased with the leadership that the UK has shown. We have been prominent, with the support of the Dutch and the Americans, in ensuring that the IMO is committed to engaging constructively and undertaking an early review.

There is no doubt that the sulphur limits are coming in in 2015 and prospectively in 2020. However, if the review shows that the fuel is not available, I will certainly negotiate with the IMO to push that limit back because it would be unfair to impose that on the industry. This Government and, to give them credit, the previous Government have worked with the industry to find ways of mitigating the cost and the regulatory burden and to ensure that jobs in this country are protected. That is why we are working to secure finance and transitional arrangements for people to implement scrubbing technology.

I hope that I have been able to reassure my hon. Friends and the hon. Gentleman that the Government, unlike the image that might have been presented, are taking the matter extraordinarily seriously. We have done so during my time in office and before. We have actively worked to support British shipping and the all-important jobs that come with it.

Question put and agreed to.