The Parliamentary Under-Secretary of State for Transport (Mr Robert Goodwill)
I congratulate the hon. Member for North Ayrshire and Arran (Katy Clark) on securing this important debate, which gives us a useful opportunity to discuss the issues. I was pleased to hear her examples of how unions and employers are working together in the common interest.
I should draw attention to my entry in the Register of Members’ Financial Interests and declare an interest as a shipowner. I hasten to add that we only ever employ British crew members on the MV Coronia.
As an island nation, we have a long maritime tradition—from our Royal Navy and our historic maritime universities to the many museums that record our maritime history—but shipping is not just part of our past; it is a vibrant and dynamic part of our present and our future. It is worth up to £14 billion a year to our economy, and it is steadily growing, despite increasing competition from abroad. The maritime sector provides employment for about 250,000 people; 95% of goods by volume entering and leaving this country are handled by our ports; and London remains the largest maritime centre for professional, business and financial services in the world. The maritime industry is vital to many areas of the UK, not least Scotland, as the hon. Lady is well aware, and my own county of Yorkshire—indeed, shipbuilding still happens in Whitby, the home of Captain Cook, in my constituency—both of which have contributed to the success of our shipping industry. In fact, gross tonnage has more than trebled on the UK shipping register in the past decade.
If the sector is to carry on thriving and to build on its position as a global maritime leader, it needs to attract a new generation of seafarers. Historically, there has been a decline in the number of UK seafarers, as the hon. Lady said, so the Government have made it a priority to train seafarers to the highest standards to help reverse that decline. Maritime training is of particular importance to the Government. There will be a substantive item about it at the next ministerial maritime round table on 31 March 2014.
We are committed to support for the maritime training programme to attract talented and skilled individuals into the industry. The scheme, which has a budget of more than £15 million a year, played a key role in doubling officer numbers between 1998 and 2011. We work closely with the Merchant Navy Training Board, the Maritime Training Trust, the Maritime Educational Foundation and other maritime bodies. We are currently working with the Merchant Navy Training Board to consider how maritime apprenticeships and the support for maritime training programme are aligned.
We are equally committed to the UK’s tonnage tax regime, which requires each shipping company to recruit and train one officer trainee each year for every 15 officer posts in its fleet. That was the first scheme to build in a training commitment, and to pump fresh blood into the sector each year. In addition, employers must consider employment and training opportunities for ratings.
In an excellent example of industry in the round working together, the UK Chamber of Shipping, the National Union of Rail, Maritime and Transport Workers, and Nautilus International put forward a proposal earlier this week that would allow ratings to be included formally in the training option as part of meeting the tonnage tax minimum training obligation. That proposal is currently being given serious consideration by Ministers. Tonnage tax has been particularly successful in creating a competitive environment for shipping in the UK and bringing new investment to this country. It recognises the industry’s need for certainty on taxation to help businesses plan for the future.
We also support apprenticeships and are training a new generation of ambitious people to become the skilled and dedicated seafarers and professionals of the future. To boost further seafarer numbers, we have extended the availability of apprenticeships for maritime occupations. Apprenticeships are an excellent entry point for young people interested in a maritime career, giving them the chance to develop and practise their skills by working alongside experienced mariners. They also provide the opportunity to gain valuable qualifications to set youngsters up for their future career.
In my constituency, the Whitby fishing school offers a range of innovative training courses, including an apprenticeship programme for the next generation of fishermen and women. I am pleased that apprenticeships are once again becoming an integral part of the maritime training offer.
In England, maritime apprenticeships are available at intermediate and advanced levels. They cover a range of specialisations within the sector, including engineers, deck hands, and officers of the watch in the Merchant Navy. Launched in 2012, the new apprenticeship framework was developed for the sector by the Maritime Skills Alliance and issued by Skills for Logistics. In its first year, it resulted in 30 new apprenticeships for ratings, and that figure is set to grow steadily over the next few years, helping to address some of the current skills shortages in the sector. Similar apprenticeships are available in Scotland and Wales.
I understand that there has been a specific issue with the maritime apprenticeship programme in Scotland, where there were difficulties matching apprenticeships to training providers. Eventually, as we have heard, alternative provisions had to be found on Tyneside. Skills responsibilities, including apprenticeships, are devolved to Scotland, and do not fall under the remit of the Departments for Transport or for Business, Innovation and Skills. However, I have made some inquiries and understand that the sector is working hard north of the border to resolve any issues so that the problem does not arise again.
In England, developing a framework that met the rigorous requirements of our apprenticeship legislation was quite a challenge and we had to work hard with the sector to ensure that the framework complied with the specialised nature of maritime regulations, employment and training. Legislation requires that apprentices are employed, but many trainees in the maritime sector are treated differently from other apprentices. For example, rather than being employees, share fishermen take a percentage of the proceeds from the sale of the catch.
Under the requirements of the convention on standards of training, certification and watchkeeping for seafarers, trainee maritime cadets must be counted as supernumerary and therefore cannot be employed. Nevertheless, apprenticeship legislation allows exceptions to that employment requirement in specific circumstances, which are called alternative completion conditions. Those conditions are set out in secondary legislation and any additions must be debated in both Houses. Exceptions are allowed only after thorough consideration. Officials worked closely with the maritime sector to ensure that specific jobs were able to benefit from that exception.
The first set of alternative completion condition regulations came into force in May 2012 and included occupations within the sea fishing industry. The regulations were amended following a second round of debates last July to include apprenticeships within the Merchant Navy. A robust case for inclusion was made, and it was agreed unanimously for both levels. However, the need for regulations meant there was a delay between the publication of the framework and Merchant Navy apprentices being able to register and begin their training.
We have also been working to make sure that training meets the needs of maritime employers. The entrepreneur Doug Richard conducted a review of the entire apprenticeship system in England in 2013. He found that current apprenticeships do not always meet employer needs or expectations. As a result, we are changing the way that schemes are developed, assessed and funded. In future, employers will have a bigger role in developing and assessing new apprenticeship standards, which means that the industry will have greater scope to develop programmes that meet its specific needs.
The hon. Lady mentioned offshore employees and the specific issue facing CalMac, Stena and others when employers undercut pay and conditions. Of course, the primary problem to which attention has been drawn is the national minimum wage legislation. Although employees can bring an employment tribunal-type case, seafarers may fear dismissal in those cases. I know that the unions involved have written to the Department for Business, Innovation and Skills and copied the letter to the Under-Secretary of State for Transport, my hon. Friend the Member for Wimbledon (Stephen Hammond), who has responsibility for shipping. We all await the response to that letter with interest.
In conclusion, one of the key strengths of UK shipping is its people. If we want to maintain our position as a global maritime leader, we need to recruit a new generation of people who can take the industry forward. Today’s apprentices are tomorrow’s leaders. That is why we are so committed to maritime training and to making high-quality apprenticeships available in a wide range of skilled jobs. That is why we will continue to work with the industry to increase the number of youngsters choosing a shipping career.
Question put and agreed to.