Seafarers’ Wages Bill [HL]

Baroness Vere of Norbiton Excerpts

2nd reading
Wednesday 20th July 2022 Lords Chamber

Moved by

[Baroness Vere of Norbiton]

That the Bill be now read a second time.

[The Parliamentary Under-Secretary of State, Department for Transport (Baroness Vere of Norbiton) (Con)]

My Lords, earlier this year, P&O Ferries shamefully sacked almost 800 members of its workforce, without notice and without consultation. At that time, the Transport Secretary responded with a nine-point plan, aiming to prevent companies from benefiting further from such underhand and unacceptable moves. This legislation is part of our response. It is important to stress that this is but one part of the plan, which covers much wider aspects of seafarer welfare that do not require legislation.

This Bill delivers on the Secretary of State’s commitment to deliver on the first point of the nine-point plan: changing the law so that seafarers with close ties to the UK are paid at least an equivalent to the UK national minimum wage while they are in UK waters. Quite simply, it is unacceptable for companies such as P&O Ferries to lay off hard-working employees, with no notice and no consultation, only to replace them with less costly workers. This legislation will remove the incentive for other operators to follow suit and ensure that all seafarers will receive the equivalent of the national minimum wage in UK waters, preventing a race to the bottom that would damage this vital industry.

Under the existing national minimum wage legislation, not all seafarers who regularly call at UK ports are currently entitled to the UK national minimum wage. It cannot be right that seafarers who frequently work in the UK are not entitled to the same remuneration as other workers simply because they work on an international, rather than a domestic, service. In every practical sense, the seafarers who work on routes such as Dover to Calais are working in the UK, and they should not face exploitation by unscrupulous employers who seek to use this gap in the law to avoid paying fair wages.

The purpose of the Bill is to right this wrong. It will do this by making access to UK ports conditional on operators of frequent services providing evidence that the seafarers on board are paid a rate equivalent to the UK national minimum wage for time spent in UK waters. This will bring hundreds of millions of pounds of extra pay to thousands of seafarers over the next 10 years.

It is important to note that this legislation does not amend the National Minimum Wage Act. It instead refers to “national minimum wage equivalence”. I should point out that the Bill has been the subject of a public consultation, where we invited views on both its scope and the proposed compliance process. We have taken enormous care to consider the consultees’ views and have taken these into account in designing the new legislation.

The legislation will apply to services calling at UK ports at least once every 72 hours, on average, throughout the year. This equates to 120 times a year. The operators of such services will be required to provide a declaration to the relevant harbour authority that they are paying their seafarers no less than a rate equivalent to the national minimum wage. This rate will be calculated according to regulations made using powers in the Bill.

This scope definition has been carefully designed to ensure that it includes those seafarers who have close ties to the UK. We listened to those in the industry who told us that inclusions or exclusions based on service type would create market distortion and ambiguity. Fishing and leisure or recreation vessels are therefore the only specific exclusions retained on the face of the Bill. Our analysis shows that this definition captures, for example, the vast majority of ferries on the short straits, without including services such as deep sea container services or cruises. These less frequent services remain out of scope as those seafarers cannot be said to have as close a link to the UK. This definition has been formulated to account for the complexity of categorising vessel and service types, and to ensure that those seafarers with the closest ties to the UK are captured. We will continue to engage with industry throughout the passage of the Bill, and through consultation on the subsequent secondary legislation and guidance.

Ports are our main contact point with these vessels. In order to keep focused on this domestic link, the legislation will make access to ports ultimately conditional on compliance with its requirements. Harbour authorities will be empowered to request declarations from operators within scope that confirm they will pay their seafarers a rate equivalent to the national minimum wage. If they do not comply with the requirement, harbour authorities will be empowered to levy a surcharge against those operators, or they may be directed to do so by the Secretary of State. The purpose of the surcharge is to ensure that not paying the national minimum wage equivalent is not a financially viable option for the operator.

We intend to consult on regulations and guidance on the framework within which the level of the surcharge will be calculated and the exercise of the harbour authorities’ powers in due course. The harbour authority may retain such money as may be raised in this way for the discharge of its functions or for the provision of shore-based seafarer welfare facilities. We are clear that this will not be a profit-making exercise.

On non-payment of a surcharge, the harbour authority will be empowered to deny access to the port, either of its own volition or by direction from the Secretary of State. We intend these powers to provide sufficient deterrent to ensure compliance by operators. We have engaged extensively with the ports industry on this role, and while we accept that this will be an extra administrative burden on ports, we are satisfied that it is proportionate and effective, particularly taking into account the resources and capabilities of the ports and their existing transactional relationship with visiting vessels.

I am clear that this is not an enforcement role for the harbour authority. Beyond accepting declarations, they will not be responsible for checking that operators are complying with the requirement to pay national minimum wage equivalence. This enforcement role will be fulfilled by the Maritime and Coastguard Agency, or MCA, which will undertake inspections and investigations. It will also be empowered to prosecute operators who are found to be operating inconsistently with a declaration or who do not comply with investigations. Those found guilty of an offence will be liable to a fine on summary conviction.

As I stated earlier, this Bill is only one part of the Government’s nine-point plan to improve seafarer welfare. We are clear that this legislation will not solve all the issues brought to light by P&O Ferries’ actions, but it is an important step, and it is the right one to take given the parliamentary time available. The Bill is inevitably of limited application as we cannot legislate outside UK jurisdiction and therefore cannot make provision for time spent outside UK waters. This is why we are discussing bilateral minimum wage corridors with other countries to encourage the payment of fair wages on the entire route. As part of the plan, the Department for Business, Energy and Industrial Strategy will bring forward a new statutory code on so-called fire and rehire when parliamentary time allows. The Department for Transport is also taking steps to encourage more ships to operate under the UK flag, and to improve the long-term working conditions of seafarers beyond pay protection. So, although this legislation is concerned only with wages, the Government remain focused on the whole gamut of seafarer welfare and taking non-legislative steps to make much-needed improvements. This legislation is vital as part of our efforts to ensure that hard-working seafarers, who play a critical role in our economy, can no longer be mistreated or exploited by unscrupulous employers.

In closing, I also recognise that some noble Lords may have a slightly more nuanced reason for participating in today’s proceedings: a hugely experienced and deeply committed parliamentarian and public servant will be making his valedictory speech. I know that this House, and so many people beyond it, hold my noble and learned friend Lord Mackay of Clashfern in the highest esteem, and we are incredibly grateful for his many years of service to our country. I am looking forward to contributions from noble Lords on the retirement of my noble and learned friend and, of course, to their wise words on the Bill before your Lordships’ House today. I beg to move.

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[Baroness Vere of Norbiton (Con)]

My Lords, the Bill is clearly not the star of the show today. We have heard so many wonderfully warm words, and I was touched by so many of them, not only from my noble and learned friend Lord Mackay but from all noble Lords who paid him tribute. But I must at least try to get the House back to focus on the Bill, and that is what I intend to do.

I am very grateful to all noble Lords for their contributions and, as ever, I feel a letter coming on. We will try to get it out as soon as we can. I do not know that it will be before recess, but perhaps by the end of next week. I will try valiantly to answer as many of the questions raised as possible. I know that we will be heading into Committee on the Bill on, I think, 5 September, so it will be upon us before we know it. Thinking about it over the recess might be a very wise idea.

I cannot agree with the noble Lord, Lord Tunnicliffe, that the Bill is too narrow. We must balance that with the statement of the noble Baroness, Lady Scott, who said, “Oh, the Government are always reaching for legislation”. That is what we are trying not to do in this case; we are reaching for this legislation because it is necessary and fills a gap, but many of the other things we will be delivering in our nine-point plan do not need legislation, so we will not put them in legislation. Noble Lords know that we are overwhelmed with legislation; do not even get me on to secondary legislation, which we must also make sure is completely fit for purpose so that we do not end up overregulating and having too many debates on things that, frankly, do not need legislating. I am content with the scope of the Bill and the extent to which it applies.

There is always that very interesting balance in maritime between the Government being very focused on domestic priorities, for the protection of domestic workers operating with very close ties to the UK, and what is an extremely international market for maritime but which is governed by international laws, conventions, agreements, all sorts of things that make up the maritime ecosystem. We are very clear that we do not want to be upsetting that ecosystem and we are content that this Bill does not do that. We are also very clear when it comes to, for example, access to ports in an emergency or for the welfare of the people on board, a vessel would never be barred from entering a port in such circumstances. Therefore, I am content that this reaches that appropriate balance between the domestic priorities and the broader maritime framework, which is set mostly internationally.

The noble Lord, Lord Tunnicliffe, asked why there was no longer a harbours Bill. There was a name change. It is nothing more significant than that. I was expecting something called a “harbours something-or-other”, but there was a name change and, lo and behold, we are calling it something which much better reflects the intention, since our target is the seafarers, not the harbours. We are all after the people, and therefore it was quite right that we changed the name.

I think that I have covered the issues raised by the noble Lord, Lord Mountevans, as well. I take his point, and he is hugely experienced regarding our international reputation. As we have set out in our nine-point plan, we will be working with international partners. We will not be putting this in the Bill because it is not within our gift to deliver it. That does not mean that we will not work extremely hard; at the moment we are engaging with eight European countries on seafarers protections and welfare more generally, and to explore the creation of the minimum wage equivalent corridors. I do not say that this will necessarily be easy, but there are many like-minded seafaring nations which would want to see certain agreements being reached. Discussions are currently at an early stage, but we are pursuing them as a matter of priority.

A number of noble Lords mentioned the conflict that might exist between ports’ commercial interests and their statutory duties. We are clear that we must be cognizant of that but also, because the Secretary of State has the power to issue directions, it is the case that in the event of any doubt that those two things were not being performed correctly, I am afraid that the MCA and probably the Secretary of State would have things to say. However, I must reiterate that when it comes to the ports, we do not really want them to do very much at all. By the time that we have passed the secondary legislation for the declarations, the declarations will be standard, they will have been consulted on, and we will have discussed them with the various stakeholders, so it will be a very transactional relationship. They have a transactional relationship with visiting vessels already, so it is just one more cog in that particular transactional relationship.

Therefore, the ports will not be performing any sort of enforcement function at all. I note the comments from my noble friend Lord Balfe but, as I said, we are quite clear on what we want the ports to do. I look forward to talking through the secondary legislation when we discuss the process in more detail. If we get the secondary legislation right, if the process is really effective, then the role of ports will be minimised.

The noble Baroness, Lady Bakewell, asked about the term “non-qualifying seafarers”. This is going to get a little complicated, because we are trying to capture non-qualifying seafarers; they do not qualify for the national minimum wage and we want to make them qualify for the equivalent, which we are setting up. We want all workers on vessels with close links to the UK to be covered. I reassure the noble Lord, Lord Tunnicliffe, that we are focused on improving the rights of seafarers, both in the UK and by working with international structures.

The noble Lord, Lord Mann, mentioned some quite broad elements around workers’ rights and pay and conditions. The Bill seeks to amend the law in a limited and specific way. I will come back to this again and again in Committee: it is about workers with close ties to the UK, in UK waters. That is our focus in getting the Bill through Parliament. He mentioned a Bermuda judgment on pensions, but he is testing my knowledge so I will have to write on that matter.

I sense that we may have some discussions in Committee on the question of services as well. We considered all sorts of different frequency definitions, various types of vessel and the sorts of services they offer. It all got bogged down very quickly and could have ended up causing significant distortions to the market, as people try to change what their vessel does to fit into a different category. We do not want that; we are after simplicity here. We really are.

We decided on 120 days, which is equivalent to once every 72 hours, because we felt it was the right balance between workers on board having a close tie to the UK—I will come back to that a lot—and capturing as many of the vessels that we want to capture. We have analysed past data, which suggest that a large majority of ferry services would be captured in this scope. DfT statistics suggest that, had the policy been in effect in 2019, approximately 98% of passenger ferry voyages would have been captured and 70% of non-passenger ferry voyages carrying freight would have been in scope. Very few bulk, container and other such services would have fallen in scope—for example, for 1999, 7% of fully cellular container voyages to and from UK ports and a tiny proportion of the dry/liquid bulk services would have been in scope. I think we have the right balance.

The noble Lord, Lord Berkeley, mentioned cruises. If it is a UK cruise that stays in UK waters, it will be paying the minimum wage, because that is already in the regulations. However, if the cruise ship is going far away, it will not be covered, because it does not have close ties to the UK, is not back and forth or visiting our shores very frequently. That is the distinction we have made.

[Lord Berkeley (Lab)]

I am very grateful for the noble Baroness’s comments. She spoke about ships that do not have close ties to the UK, but we are talking about workers on those ships and whether they have close ties. It would be helpful if she could define that now or in writing.

[Baroness Vere of Norbiton (Con)]

Is it not really about the service? We cannot legislate for UK workers working in international waters or in any country in the world. That is what we must balance here. If we wanted to include cruises, we would have to include every vessel that pops into UK waters. The administration of that would blow up; it is not going to work. We will debate this in Committee, but I think we have reached the right balance. I do not know that noble Lords will be able to convince me that we have not, but I am willing to let them try.

I turn briefly to enforcement, which is a really important point. This is where the MCA will step up to enforce the system as a whole. We expect the cost of enforcement to be about £359,000 over 10 years. That is a relatively small amount in the context of the work of the MCA, because it can be done alongside its many other inspections.

The framework around the surcharges will be set out in secondary legislation. The noble Baroness, Lady Bakewell, was concerned about the ports setting the surcharge, but they will not. If a port for whatever reason had a ship approach and thought, “That’s a friendly ship; we’re not going to charge it a surcharge”, the Secretary of State could direct it to charge the surcharge. That gets round the issue where you might have a port and a ferry service operated by the same operator. The Secretary of State’s beady eye will be there to make sure that it does as it should.

I will come to the point made by the noble Lord, Lord Tunnicliffe, about minimum fines. The noble Lord, Lord Shipley, raised a point about a port being an enforcement authority; it definitely is not going to be. The noble Baroness, Lady Scott, asked about criminal charges. It will be for the ship operator, which is standard for maritime, to suffer any penalties relating to the Bill.

I am going to finish off with my favourite topic—secondary legislation. I think someone said “good”; I am not sure who it was. I am really offended, but I am going to talk about secondary legislation just so we can suffer a little longer. This is important because I have noted that Grand Committee is on 15 September, and we will not have full draft regulations by then. I am sort of thinking that this is probably not the worst idea in the world. We will have detailed policy notes, but as we go through Committee and debate the sorts of things we are proposing to put into secondary legislation, I think having detailed policy notes will be sufficient to aid our thinking, and issues may certainly come up in the discussion that we may want to reflect in the regulations or perhaps draft the regulations in a slightly different way.

I believe I have covered some of the questions asked by noble Lords today.

Bill read a second time and committed to a Grand Committee.

Seafarers’ Wages Bill [HL]

Baroness Vere of Norbiton Excerpts

Committee stage
Wednesday 12th October 2022 Grand Committee

[Lord Tunnicliffe (Lab)]

My Lords, the amendments in this group relate to the territorial scope of the Bill and the vessels to which this legislation applies. Seafarers across the board deserve proper compensation for their work and I welcome the opportunity to consider whether the Bill, in its present form, achieves this. To this end, I hope the Minister will clarify that all workers on the vessels listed in these amendments are already covered. When we landlubbers think of seafarers, we often picture those who directly control vessels, but the definition is incredibly wide and covers everyone from cleaners to the administrative staff on board. I hope the Minister comments on the Government’s approach to supporting better wages and conditions for all seafarers.

Amendment 5 in my name is a probing amendment and it is key. It seeks information from the Minister on the state of negotiations, particularly those with France and the Republic of Ireland, on the corridor concept. This Bill, which we support, is one small step towards addressing the issue of seafarers’ terms and conditions.

I respect what my noble friend Lord Berkeley just said but, at the end of the day, if these international conventions have achieved utopia for seamen, I would hate to see hell. Wages seem incredibly, unacceptably low in an international world. Perhaps that is not so true in the wider world, but they seem unacceptably low in Europe. I hope the Government put all possible energy into negotiations with other European states to establish these corridors. It sets a precedent for the worldwide consideration that seafarers deserve a better deal than they are getting.

Amendment 23 would prevent the refusal of harbour access where doing so would break international maritime law. In any situation in which harbour access is refused, in framing the appropriate guidance, a Government must have considered the safety and environmental implications of refusal. It moves to the general view that we must work on the international agreements in parallel and seek to ensure, as does the amendment in the name of the noble Baroness, Lady Scott, that the various conventions not only exist but are universally and even-handedly implemented.

[The Parliamentary Under-Secretary of State, Department for Transport (Baroness Vere of Norbiton) (Con)]

My Lords, I am grateful for the careful consideration of this Bill by all noble Lords. I reiterate what I have already said to noble Lords in private sessions: the Government are listening to concerns and will endeavour to answer in full all the questions raised by your Lordships today. I suspect that some will certainly be in writing, and I may well try to develop on some on some of the things I am able to say today so that we have full information as we head towards Report.

I sense that there are slightly differing views around the Committee, where some people want this to go much further and others are very cautious. Of course, both of those views potentially risk the Bill itself. I therefore just want to make sure that everybody has as much information as I can get out, particularly around the Government’s intent with the Bill and why it is drafted as it is. Noble Lords will have heard the previous Secretary of State speak about the nine-point plan many times, which was in response to the P&O decision that was made back in March. We recognise that this Bill is narrow in scope and potentially also in effect, as we cannot legislate outside UK territorial waters. It is none the less an important part of the nine-point plan that this sits hand in glove with the other work that we are doing to improve the welfare of seafarers to make sure that their terms and conditions are as good as they can be.

The amendments in this first group cover territorial scope and international law and I will try to address them in turn. Amendment 1 from the noble Lord, Lord Hendy, seeks to probe the application of the Bill in various circumstances. I completely accept the way that he introduced this and that he had intended some separate amendments that were deemed to be out of scope. It is worth making sure that the different groups of seafarers who he identified in his amendment are indeed covered. To look at it in more detail, on proposed new subsection (1A)(a), seafarers working or ordinarily working in the UK, including UK internal or territorial waters if the vessel is not exercising a right to innocent passage, are already entitled to the national minimum wage. That stems from Section 1(2)(b) of the National Minimum Wage Act 1998 and Article 2 of the National Minimum Wage (Offshore Employment) Order 1999. That change is therefore unnecessary, and I think the noble Lord would agree.

On proposed new subsection (1A)(b), voyages to or from the Crown dependencies would already be in scope of this Bill under the service definition in Clause 1. Of course, I recognise at this point that the UK Government can legislate only in the waters of the UK; therefore, it would be a similar circumstance as one would have, for example, with a journey to France.

On proposed new subsection (1A)(c), under Article 2 of the National Minimum Wage (Offshore Employment) Order 1999, a worker working or ordinarily working in connection with the exploration of the seabed or subsoil or the exploitation of natural resources in the UK sector of the continental shelf is treated as if they are working, or ordinarily work, in the UK. Those workers are therefore already entitled to the national minimum wage, so, again subject to the caveat about UK territorial waters, those workers are covered—ditto those who are working on services to offshore renewable energy installations. Again, I note that some of those may be far away from UK territorial waters. I hope that that reassures the noble Lord.

I note the point raised by the noble Lord, Lord Tunnicliffe, that it is not only the people who are in control of the ship. When I think about this, I do not think about the people in control of the ship but of all the other people on board, who do the really important day-to-day tasks that are sometimes forgotten. I accept that this is about making sure that we cover everybody on board, and I am satisfied that we do.

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[Lord Tunnicliffe (Lab)]

My Lords, this is a useful set of amendments to clarify some of the points. I hope that the Minister will either be able to provide that clarification or, if she wants to worry about the syntax of her reply, supply it in a careful letter.

I have two amendments in this group. Amendment 10 seeks to replace 120 with 52 in Clause 3(3), so I sit alongside my noble friend Lord Berkeley and the noble Baroness, Lady Scott. My noble friend made a persuasive case for 50, as opposed to 52, and I will need considerable persuasion not to press this point on Report, unless the Minister is able to create a very powerful argument that there would be unintended consequences from that.

Amendment 36 seeks, in essence, to stop the effects of the Bill being, in a sense, destroyed by repeated regulations. Surely the Bill’s minimum requirements are in the primary legislation, and the adjustments to them should really be only upwards, not reducing the requirements.

I also join the noble Baroness, Lady Scott, in her concern about the DPRRC’s concerns. In my day, if it produced a recommendation, we used to shake in our boots and recognise that some deal or other had to be made with it because of the authority it carried. Once again, I hope the Government will recognise the authority and wisdom of that committee and accede to its suggestions.

[Baroness Vere of Norbiton (Con)]

My Lords, I am again grateful to noble Lords for sharing their thoughts on this group of amendments. The thrust of the amendments in this group is very much around probing the scope of the Bill in terms of the services and ships to which it applies. As the noble Lord, Lord Tunnicliffe, noted, I will write. I do not think he was implying that my oral replies are not carefully thought through—maybe he was—but the letter will be perfect. Noble Lords should await further information in the letter, but I will try to cover as many points as I can.

I look at this borderline, grey-area conversation that noble Lords are having, and at the back of my mind I keep thinking, “What sort of an operator are you if you will go to a different port in order to drop your frequency down to be just under or over any particular target so that you don’t have to pay your seafarers the national minimum wage equivalent in UK waters?”

[Baroness Randerson (LD)]

P&O?

[Baroness Vere of Norbiton (Con)]

Well, because of that we will come on to why it is so important that the Bill refers to services rather than ships; otherwise, quite frankly, you could do that, and all sorts of very interesting things. I will try to go through some of the amendments and think carefully about how we make sure that we reassure operators and trade associations about what a service is. Indeed, there is a question about what a harbour is. The good thing is that we have a definition of a harbour, in the Harbours Act 1964 and the Harbours Act (Northern Ireland) 1970. That is what a harbour is, so I will put that one to bed.

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[Lord Berkeley (Lab)]

I just want to comment on the Minister’s last statement, which was very helpful. I think she needs to recognise that the maritime industry has probably got very good PR, but some of what goes on on the ships is highly dubious. I have been honorary president of the United Kingdom Maritime Pilots’ Association for about 25 years—heaven knows why so long, it is very nice of them—and I hear stories about what pilots find when they get on the ships. It is not just that the pilot ladder might break, which sadly does happen occasionally, but that there is a language problem within the ships, or that the master sometimes cannot control the crew and that they will do anything to save tuppence ha’penny. So, I appreciate what she is saying, and in a normal business, she is probably right, but in this sector, it may not be the ferry or the short-haul freight services, but we have to recognise that every penny seems to count and usually it is very bad for some of the crew.

[Baroness Vere of Norbiton (Con)]

Of course, the noble Lord has much more experience aboard such vessels than me, and I will take his word about some of the conditions on ships. Indeed, we heard during Covid how what happened on ships was very distressing for some people and extremely disappointing. I take all of that on board but I go back to: I cannot fix the entire world today but what I can fix is what is before the Committee in terms of the scope of this Bill.

The noble Lord, Lord Berkeley, mentioned specific types of services, such as coasters—which apparently take English clay around the coast, et cetera—and cruise ships. This is why it is so important to do this based on the service and its frequency rather than what it is actually providing. Coasters might be caught but if they are doing only domestic work they will be caught anyway because they are in UK waters and they are caught if it is port to port within the UK, but if they are doing a run frequently—say three times a week across to France—they will be caught, and I do not see why they should not be. I have no problem with that. Let us catch them. The people working on such vessels most likely have close ties to the UK and those vessels clearly have close ties to the UK because they dock here so frequently, so it does not matter where the ship is flagged or where the employment contract is. It is the fact that it spends a lot of its time in UK waters and enters UK ports on a very frequent basis. This frequency is important.

I note that two noble Lords have tabled amendments to go down to 52 occasions from 120. We looked at this very carefully during the consultation. My current view—and of course we are going to go away and consider this—is that 52 would catch too many vessels that we did not intend to catch and would be overreach in terms of the current settlement with the international shipping community. Again, we might be entering the sort of territory where the unintended consequences would be quite significant. I go back to the fact that this is a narrow Bill, it has a narrow scope, it does a very specific thing, and I would like it to do that specific thing on services which dock here 120 times a year.

Amendments 7 and 8 refer to this issue of “a harbour”, “the harbour” or “harbours”. We have established what “a harbour” is—so that is done—and we are very clear that the service is to a particular harbour. It is not to “a harbour” within the UK because Calais-Dover is not the same as a service running from Calais to any other harbour. The route is specified. It is the same route, not using the same ships, high frequency to a specific harbour. We think that is quite clear.

The noble Baroness, Lady Randerson, asked for a definition of “close ties”. I do not think I will ever be able to get to that but we have been able to define what a “service” is. Those services have close ties. It is descriptive language to define what these services are, but it is merely that. It is not something that will be legally defined and taken forward.

[Baroness Randerson (LD)]

Do I understand, then, that the Government are unable or unwilling to define “close ties”?

[Baroness Vere of Norbiton (Con)]

The Government are very willing to define what these services are and, by implication, those have close ties to the UK. I can probably come up with lots of other clever descriptors to define these sorts of services. A large container ship stopping at the UK once a month does not have close ties to the UK; it is an international container ship, shipping around wheat or whatever it might be shipping. We can think of some other language, but once we have nailed what the service is, where it goes, how frequently it goes and which ships it utilises, then we have defined it. That is it, we are done. That is the definition that works legally because it has hard boundaries and can be fairly well defined, I think.

I absolutely appreciate that Amendment 27 is a probing amendment. We intend to provide guidance to harbour authorities, and that guidance will be consulted on. We can define what the service is but we need to help harbour authorities to fully understand those definitions. We will consult with the industry to make sure that there is absolute clarity. I would not say that the guidance should be put on a statutory footing; that is not entirely necessary in this particular case.

I turn finally to Amendment 37. I have of course seen the DPRRC report. It was published only a few days ago so I beg your Lordships’ leave just to say that, at this stage, we are considering what is in it. We are taking it very seriously; I reassure the noble Lord, Lord Tunnicliffe, that we take all DPRRC reports very seriously. We will publish our response to it before Report so noble Lords will have the opportunity to peruse that. I have no doubt that we will be able to have further conversations about that.

[Lord Tunnicliffe (Lab)]

Will the Minister be answering on Amendment 36?

[Baroness Vere of Norbiton (Con)]

I absolutely shall cover Amendment 36. My apologies, I slightly went off-beam so I thought I had already covered it.

Regarding Amendment 36, the clause as drafted does not allow a Government to amend or reduce the overall extent of services in scope of the Bill. It provides only that regulations may make different provisions for different cases, including for different descriptions of service to which the Bill applies or non-qualifying seafarers. This power cannot be used to amend the Bill and is not intended to be used to alter the scope of the Bill. I slightly thought that I would need to come back to this particular issue to make sure that noble Lords are in agreement as to what we are trying to achieve here. I will give that further consideration.

[Baroness Scott of Needham Market (LD)]

I am grateful to noble Lords for their comments and to the Minister for hers. This set of amendments really comes down to the practicalities of statutory harbour authorities trying to manage this legislation, which, we have to recognise, is taking them into a completely new area of endeavour. They are comfortable with environmental and shipping things but we need to remember that this is new. Uncertainty at this stage about fundamentals, such as ships and services and what close ties are, is quite concerning. I hope that the Minister will ensure as a matter of urgency that the conversations that ought to take place with the harbour authorities will take place fairly soon so that we can clear up some of these issues and put them in a position where they feel a little more comfortable with what they are being asked to do.

With that, I beg leave to withdraw my amendment.

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[Lord Tunnicliffe (Lab)]

My Lords, I will speak on the two amendments in my name in this group, but I commend the other amendments to the Minister’s study, because it is important to achieve clarity on some of these issues.

On Amendment 25, my original involvement with these sorts of issues was in an analogous industry—transport—where I was a shop steward and subsequently an industrial relations manager. In the crew situation, issues with roster patterns and pensions are every bit as important as wages. The way that rosters are handled in particular can have a serious impact on remuneration and a massive impact on quality of life. It is important that there is a proper impact report on these issues, ideally within 90 days.

This leads on to Amendment 26, because this and other issues would be much enhanced if we could develop a proper relationship with the trade unions. The importance of this from the point of view of the trade union movement is exemplified by an appeal—for want of a better term—to the International Labour Organization from the general secretary of Nautilus; the general secretary of the RMT, Mick Lynch; the general secretary of the TUC, Frances O’Grady; the acting general secretary of the European Transport Workers’ Federation; the general secretary of the International Transport Workers’ Federation; and the general secretary of the International Trade Union Confederation. I read those out to emphasise that this is a heavy coalition of the trade union movement. Their appeal is set out in a document that I hope the Minister has seen, which centres on what happened at P&O. It helps one to understand how broad detailing and managing the employment conditions of crew is and how important it is to get a hold of this to make sure that crews are properly looked after, both in their remuneration and conditions of work. I therefore commend Amendment 26 to the Minister.

[Baroness Vere of Norbiton (Con)]

My Lords, this third group of amendments is broadly concerned with the relationship of this Bill to the domestic national minimum wage. The noble Lord, Lord Hendy, has already decided that Amendment 3 is not necessary; I agree with him so, if noble Lords agree, I shall just move on.

Amendment 13, also in the name of the noble Lord, Lord Hendy, relates to the calculation of the national minimum wage equivalence and deductions. We have been clear that this will be covered by regulation and is not for the Bill. This also allows us a little more flexibility decades hence, should changes need to be made. Nevertheless, Section 2(5)(c) of the National Minimum Wage Act 1998 does not prohibit deductions from pay of costs for providing seafarers’ accommodation, food or water, but simply provides for regulations on the matter. We will very much be matching up.

Regulations under the Bill will need to be consistent with the provisions within the Maritime Labour Convention, or MLC, whereby requiring seafarers to meet the cost of food and water is expressly forbidden. We therefore do not need to amend the Bill to account for this. Perhaps the noble Lord might remind the RMT about that, if it feels that seafarers out there are being charged for those things. That is clearly and expressly forbidden.

Regarding deductions for accommodation, under the National Minimum Wage Regulations 2015, employers on domestic services are permitted to apply a reduction of up to £8.70 per day in respect of the provision of living accommodation, without that affecting the assessment of the worker’s pay for national minimum wage purposes. The MLC does not make express provision for reduction for accommodation, and shipping industry practice is not to charge seafarers for accommodation. It is not our intention that operators should be encouraged to make such reductions for accommodation to reduce their overall wage fee, so we will be considering this in the regulations in due course.

--- Later in debate ---

[Lord Tunnicliffe (Lab)]

My Lords, I have a couple of amendments in this group. The first is Amendment 12, which would create a minimum fine of £1 million. Whether that is the right figure, I am not sure, but the real concern is about the size of the owners; I believe that P&O’s owners have made $721 million in the past six months. There is a real risk that, if businesses of this size take an almost doctrinal opposition to the measure—the P&O debacle showed such a doctrinal opposition to reasonable conditions on board ships—a fine that is not substantial becomes just a cost of business. That would be regrettable; I am sure that it is not the Government’s intention but I would value some feedback from the Minister. How does one assure oneself that the fines are sufficiently large to impinge on the decision-making of these companies? There is a concern that good companies do the right thing anyway. The trouble is that we have a very real example in the recent past of one of these companies not doing the right thing; that is what provoked this legislation.

The second area concerns naming the inspector or inspectors. I tabled my amendment here to draw out how the world will know that this is happening. Organisations that have either a principal inspector or someone like that as a named individual are so much clearer as to who will be held to account for appropriate levels of activity. As a minimum, I hope that the Minister will be able to give me a feel for how quickly inspectors will be appointed and how many of them there will be, as well as assure us that there is adequate inspection capability. We know that this whole issue of minimum wage enforcement is pretty difficult in a land situation; at sea, it will be much more difficult to get the details to know whether an offence or the wrong charge has been committed.

With that, I come to the amendments in the name of the noble Baroness, Lady Scott, regarding the Secretary of State having the authority to determine the tariff, which will really be a fine. I think that harbour authorities are about harbours. I can see why they perhaps must be drawn in at one level but when it comes to becoming a policeman, in essence, that is what the state should be doing. I agree with the general thrust that this should be the Secretary of State’s responsibility.

Finally, I hope that the Government will give careful consideration to the amendments addressing the DPRRC’s concerns.

[Baroness Vere of Norbiton (Con)]

My Lords, this fourth and final group of amendments is concerned broadly with incentives, enforcement and compliance. There is a wide range of amendments herein. It has been helpful to have this discussion today.

I will start with Amendment 4, with which the noble Lord, Lord Hendy, seeks to make requesting a national minimum wage equivalent declaration a duty rather than a power that can be used with some discretion. The payment of national minimum wage equivalent would be a condition of port entry and so should be a matter for the harbour authority to decide. Furthermore, by making this a “may” rather than a “must”, we are allowing for flexibility in circumstances where there might be overlapping harbour authorities, for example where a vessel transits through one harbour authority’s area of jurisdiction to call at a port within another harbour authority area of jurisdiction. There may be other circumstances that noble Lords can think of where it is not necessary that this declaration is shared every single time. It should be noted that the Bill provides the Secretary of State with the power to direct harbour authorities to request a declaration, so there are necessary safeguards against harbour authorities not discharging this function properly.

--- Later in debate ---

[Lord Tunnicliffe (Lab)]

The noble Baroness promised to write letters. Will it be a common letter to all of us?

[Baroness Vere of Norbiton (Con)]

Yes. I tend to do one letter addressed to all noble Lords present. A copy will be placed in the Library. It will be lengthy, but it will be set out by topic and cover, with as much detail as I can, things that I have not been able to cover today and any additional information that would be helpful to noble Lords.

[Lord Hendy (Lab)]

My Lords, I am grateful to all noble Lords who have spoken in the debate, and to the noble Baroness for her explanation and response to the points raised in this group of amendments. I am very grateful in particular that she will look again at the Delegated Powers and Regulatory Reform Committee’s recommendations. I should have said earlier that I am a member of that committee.

I wonder whether, having heard the almost unanimous view expressed this afternoon about the effective delegation of authority to harbour authorities, the Government would be prepared to look at that a little further. Having said that, I beg leave to withdraw my amendment.

Seafarers’ Wages Bill [HL]

Baroness Vere of Norbiton Excerpts

Report stage
Wednesday 26th October 2022 Lords Chamber

[Lord Tunnicliffe (Lab)]

My Lords, to make some general comments, we welcome the Bill. I think everybody has been shocked by P&O’s behaviour, but this goes a bit deeper than that. I had no idea how badly seamen are paid. It is disgraceful. This is clearly a worldwide problem, and there are problems with addressing it from a singular point of view.

I also object to the criticism of my noble friend by the noble Lord, Lord Forsyth, because this has been a normal Bill. We could not vote in Grand Committee for the usual conventional reasons. It was well debated—the noble Lord would know that if he had been present. Essentially, Amendment 2 is a judgment about degree, and we come to a different judgment than the Government. While we support the Bill in general, we have amendments where we think that a little finesse will make it more effective. A weekly service is the sort of thing that should be within the scope of the Bill. While we will not press Amendment 1, we will support the noble Lord if he wants to press his Amendment 2 to a Division.

[The Parliamentary Under-Secretary of State, Department for Transport (Baroness Vere of Norbiton) (Con)]

My Lords, I am very grateful for all contributions on this first group. I appreciate the support from Members on my own side; it is always good for the Minister to know that there are a range of views and that people are thinking about the Bill and taking it seriously—it is a very serious Bill.

The noble Lord, Lord Tunnicliffe, mentioned the welfare of seafarers. He is absolutely right and there are mechanisms, which the UK is deeply embedded in and has been for a very long time, which work internationally, as many noble Lords will know, to try to improve the conditions and pay of seafarers. However, that is not under discussion today. As pointed out by the noble Lord, Lord Greenway, this is an important part of the nine-point plan that Ministers set out earlier in the year, but the Bill is narrow in scope and effect. That is for many reasons but a key one is that we have to be mindful of the extent to which we are legislating; we have to be mindful that we do not overreach, because that might have some very serious unintended consequences that we would later regret. That is why, throughout the drafting of the Bill, we have had at the front of our minds not only international law but our international obligations; that is critical. Although I accept that there are many things that noble Lords would very much like to do for seafarers—and that, probably, on the face of it, I would like to do too —the reality is that, as a Government, we have to be sensible and potentially a bit boring. We must stay in our lane and make sure that we do not overreach, because the consequences would be very significant.

There are two amendments in this group. The first brings back the old chestnut of “the harbour” versus “a harbour”. I am grateful to the noble Lord, Lord Berkeley, for enabling that discussion once more. I cannot go much further than I went in Committee; I just state that it is absolutely important that unless we say “the harbour”, we cannot define what a service is. A service is from one point—the point—to another point. It is of great regret that the word “a” crept into the letter, but noble Lords can imagine that that was the overarching ambition: from a point overseas to a point in the UK, but “the harbour” within a place overseas and a place in the UK. Because we have defined it that way, from “the harbour” to “the harbour”, we capture the high-frequency services that, let us recall, can be serviced by any vessel—you can put another vessel in when one is off being maintained or whatever—but it is always between two specified harbours.

The second part of that definition—the harbour to the harbour—that is very important is

“120 occasions in the year”.

That, essentially, defines a service that has close ties. The second point about this is that unless you define it as “the harbour” to “the harbour”, it would be incredibly difficult to enforce the Bill, because the Bill relies on one harbour authority being responsible for monitoring and enforcement. Individual harbours may be able to anticipate that a particular service will call in its harbour 120 times a year, perhaps because that service has been doing so for years, if not decades. That harbour authority may not be able to anticipate whether a particular operator has services to other ports, so how would the enforcement and monitoring work in those circumstances?

The noble Lord, Lord Berkeley, brought up an example about, I think, a former Transport Secretary and ships that could be brought in to operate services, but he reinforced the point I am trying to make: it is not about the ships or the specific seafarers on a particular service; it is the service itself that we must make sure falls within the Bill’s scope.

I am content that we have defined the scope well. I am a little disappointed that I have not given sufficient explanation such that the noble Baroness, Lady Randerson, is content, but I feel that we are there and have clarified exactly what would happen. In response to concerns raised about services suddenly deciding to go to another port so that they do not have to pay seafarers a fair wage, as I said in Committee, I do not think that would be commercially viable. I do not think operators would play switcheroo with UK ports because, frankly, their customers would not put up with it. I do not think that point works.

I hope the noble Lord will withdraw the amendment to change “the harbour” to “a harbour”. It would make the entire Bill not worth the paper it is written on, and it would not function in the way that I know the noble Lord wants it to function.

I turn now to Amendment 2, which seeks to decrease the threshold frequency from 120 times a year to 52. The figure of 120 was arrived at following very thorough and extensive consultation and bilateral discussions with industry and other stakeholders. We have looked incredibly carefully at the patterns of services, noted by the noble Baroness, Lady Randerson, and at maritime traffic data by type to reach the figure in the Bill. The scope of the Bill captures services calling 120 times a year on purpose. It is a very specific number that balances the need to maintain close ties with wanting to do the very best we can for seafarers.

The rationale is clear. It covers the vast majority of passenger ferries, including ro-pax, non-passenger ferries and ro-ro services calling at the UK. Critically, it focuses the Bill on short sea services, which justifies the connection to the UK and therefore the UK-equivalent level protection of pay. We do not want to bring into scope some of the high-frequency deep sea container services. That would not be our intention at all and, as my noble friend Lord Forsyth mentioned, would completely change the scope of the Bill and would go against the Government’s intention.

For the UK to impose pay requirements for seafarers on foreign-flagged ships that call at its ports only once week would risk being seen as an overreach by international partners. It would weaken the justification for the UK taking legislative action. As my noble friend Lord Forsyth said, we must tread with care. I appreciate that the noble Lord’s intention is to protect as many seafarers as possible, but the Government can justifiably legislate only for those with close ties to the UK. To seek to do more could risk making the Bill inoperable and could damage the UK’s reputation internationally.

[Lord Berkeley (Lab)]

My Lords, I am grateful to all noble Lords who have taken part in this short debate and to the Minister for her reply. To some extent, these issues were discussed in Committee and many of us suggested to the Minister that there were questions, which the Chamber of Shipping has clearly raised with other noble Lords, about the legality of this from an international shipping point of view. The Minister convinced us—well, she said there was no problem and she thought it would be all right and within scope. The only difference, therefore, is how many times a service goes into a port before it ceases to cause an international problem? I do not know the answer to that, but I cannot believe that, if it is all right to have 120 visits a year, it is somehow illegal to have 52.

The noble Baroness also raised the question of foreign-flag ships. I thought we had established that it applied to any ship, regardless of what flag, so I do not think the foreign flag comes into it at all.

I am grateful to my noble friend Lord Hendy for setting out in more detail what the RMT has sent us, but seafarers who are operating on a service where the cook gets paid £2 an hour might look askance at sea- farers who are getting the national minimum wage because they happen to be going on a short sea crossing where P&O had caused some problems earlier this year. It does not seem logical to me.

--- Later in debate ---

Moved by

[Baroness Vere of Norbiton]

3: Clause 3, page 2, line 17, leave out paragraph (a)
Member’s explanatory statement
In response to the report of the Delegated Powers and Regulatory Reform Committee in relation to the Bill, this amendment removes a power to restrict the circumstances in which national minimum wage equivalence declarations may be requested.

[Baroness Vere of Norbiton (Con)]

My Lords, the thrust of the amendments in this group is to consider the delegated powers in the Bill. I will speak to the first amendment, in my name, and return to the remainder when I have heard contributions from noble Lords. Amendment 3 addresses a concern raised in the report by the Delegated Powers and Regulatory Reform Committee, the DPRRC. The amendment removes the power in Clause 3(4)(a) to make regulations that make provision restricting the circumstances in which harbour authorities may request that operators of shipping services provide national minimum wage equivalence declarations.

After reflecting on the comments of the committee, and representations made by noble Lords on this point in Committee, I agree that the power as drafted could have been exercised in a way that had broad effect to amend the application of the Bill, with limited parliamentary scrutiny. That had not been the intention of the clause when it was included, but, after some consideration, the Government are satisfied that the removal of this power would not have any impact on the operability or policy intention of the Bill. I beg to move.

[Baroness Randerson (LD)]

My Lords, I stand to speak to the amendments in my name and that of my noble friend Lady Scott: Amendments 6, 7, 8 and 9 in this group. We are pleased to see that the Minister has responded to comments from the Delegated Powers and Regulatory Reform Committee, and that her amendment addresses some of the issues that it was concerned about. Our amendments also address their comments, and the Government do not seem to have taken all of the committee’s comments on board. That concerns us.

Clause 11 gives the Secretary of State power to give directions to harbour authorities, requiring them to do—or not to do—a number of things. The DPRRC concluded that this was

“a completely open-ended power”

and pointed out that this could modify the whole Bill by directions which are not subject to any form of parliamentary scrutiny. The Government accepted this argument in relation to Clause 3 and put in an amendment, so my question is this: why is the same principle not applicable to Clause 11? I made the point earlier this afternoon that the Bill is, in my view, poorly constructed. I genuinely think that it is quite possibly an error, rather than a considered decision by the Government, that has led to their failure to rectify Clause 11, because there is no logic to making the effort with Clause 3 but not making the effort with Clause 11.

As the Bill stands, the Government are hiding behind harbour authorities by expecting them to do the enforcement work. I understand the points the Minister made in the various debates in that regard, but at the same time the Government want to retain all the ultimate power. That is not satisfactory. It overrides Parliament’s role and parliamentary democracy. It is an abuse of government power and it is bad law.

So my question to the Minister is: will the Government consider responding to and taking on board the rest of the DPRRC’s comments and, at a very late stage—at the last moment—ensuring that there are amendments in line with its comments? If she feels that the Government really cannot do that, will she give an undertaking in this House that they will not depart from the Bill’s basic script and intention—because there is a fear that that could happen, given the very wide-ranging power they are giving themselves in the Bill?

--- Later in debate ---

[Lord Tunnicliffe (Lab)]

I thank the Minister for Amendment 3. Moving on to Amendments 6, 7, 8, 9 and 10, I am more sympathetic with the Government than any of the previous speakers. These sorts of powers are necessary. Arguably, the way pressure is put on harbours to do the right thing is wrong, but it is the way the drafters of the Bill have chosen.

I wish the Government would get back to the tradition of doing what the DPRRC says, which way back, when I sat on those Benches, we did. However, none of those things will probably happen and, certainly, I do not feel it is an issue over which we would support dividing the House. I would, however, recommend that the Minister allay some of the fears that these clauses have provoked, by reading into the record the statement made to the DPRRC on 25 October, particularly, from the bottom of the page in the report:

“The policy intention is that this power would only be used in the following circumstances”


and all those circumstances, to the end of that document. In the best Pepper v Hart frame, the world would then have easy access to those limitations, much improving the likelihood of the Government sticking to those limitations. Of course, if she wants to amend the document more fully, I would not be averse to her bringing this back at Third Reading. However, I can tell from her demeanour there is not a prayer of that, so would she agree to putting those assurances into the record?

[Baroness Vere of Norbiton (Con)]

I will indeed take option A from the noble Lord, Lord Tunnicliffe. I accept that we do not want our powers to be overreaching. I believe there is a good justification for these powers, and I will happily read into the record the circumstances in which the Government believe it would be justified to use these powers.

I will quickly address the amendment from the noble Lord, Lord Berkeley. I do not believe he will press it to a vote because it would remove all of Clause 11 and then it would remove the guidance for the harbour authorities, so it would be incredibly messy.

Let us focus on the second element of the concerns from the DPRRC. We have very carefully reflected on its recommendations. We have looked very carefully at the powers of direction for the Secretary of State in Clause 11. We have concluded that to remove them would significantly reduce the effectiveness of the Bill. These powers of direction form an important part of the compliance mechanism under the Bill. Without that power of direction given to the Secretary of State, there will be no means of correction if the harbour authorities do not exercise their powers under the Bill, or if they exercise their powers inappropriately. Given that noble Lords have raised concerns about potential conflicts of interest between harbour authorities’ commercial interests and statutory functions, these powers also provide a safeguard against this risk. I assure noble Lords that the power is not intended to have general effect to allow the Secretary of State simultaneously to direct all harbour authorities to exercise or not to exercise their powers under the Bill, or to exercise them in a particular way. Nor is it intended to modify the character of the Bill itself by means of direction.

--- Later in debate ---

[Lord Tunnicliffe (Lab)]

My Lords, there is quite a good case for the noble Baroness’s amendment, but I accept that the Government have, I hope, expended an awful lot of effort working through the intricacies of how this will happen. I fear that passing the amendment at this point would unduly stop this extremely important Bill’s progress. I hope that the Government’s judgment is correct, and that they come back very rapidly with emergency legislation if it proves to be incorrect.

[Baroness Vere of Norbiton (Con)]

My Lords, the amendment in this group in the name of the noble Baroness, Lady Scott of Needham Market, relates to the refusal of access. The refusal of access is one way in which we establish the provision of national minimum wage declarations as a condition of access to ports. If this were replaced by a power of detention by the MCA, this would become a punitive measure and go beyond the voluntary mechanism envisaged by the Bill. Detention of vessels is a disproportionate and inappropriate mechanism in these circumstances. Detention of ships can also carry a significant cost to the port by blocking a berth, which is not the case if they are refused access.

The noble Baroness, Lady Randerson, has previously expressed concerns that refusal of access is unworkable as it might result in ships mid-passage being unable to dock, but this is not how the Bill will work in practice. By virtue of the high-frequency requirement, all services captured are almost certain to be on short routes, and access refusal would take place before a ship has set sail from the origin port. As set out under Clause 9, we will set out in detail in the regulations how the harbour authority is to communicate refusal of access, which will ensure that sufficient notice is given to prevent this possibility happening and to provide notice for users of the service to make alternative arrangements. We will of course be consulting closely with the ports on these draft regulations.

As an additional safeguard, the Secretary of State has a power to direct the harbour authority as to how or whether it discharges its power to refuse access, which will ensure that access is not denied where it would cause damage by disrupting key passenger services and supply chains critical for national resilience.

[Lord Berkeley (Lab)]

I am grateful to the Minister but I have a quick question. She said in reply to the noble Baroness, Lady Scott, who moved this amendment, that if the amendment were accepted it would cause a significant cost to the port. If there is significant cost to the port in Dover by this not happening, what about the cost to the port in Calais, or do we not worry about that because it is foreign? It is the same issue, just at the other end of the route.

[Baroness Vere of Norbiton (Con)]

The noble Lord is absolutely right. It would be costly to the ports and disruptive to passengers.

[Baroness Scott of Needham Market (LD)]

I thank the noble Baroness for that reply, which was not wholly unexpected. I happen to think that the Government are wrong. Being an optimist at heart, I still hope that, by the time this gets to the Commons, there will have been an outbreak of reality and that we might come up with something different, in not just this but other parts of the Bill. If not, then the next amendment that we come to discuss, which is about monitoring, will be really important. With that, I beg leave to withdraw the amendment.

--- Later in debate ---

[Lord Balfe (Con)]

My Lords, I will say a couple of words. This clause is a typical “Let’s have a review” clause. In 90 days, it could do nothing at all, of course, because by the time the Act has commenced nothing at all will have happened. We have a failing in this House, and in legislature generally, that we tend to pass Acts and then forget them; they just pass away into the distance. I would welcome it if the Minister could give us some assurance that there will be monitoring of this Act and that we will be looking to see where it goes.

A subject such as this seems to be an ideal one for an inquiry in about a year’s time as to how the Act has affected the industry. I suspect that it will have very little effect on pensions, for instance, and we might well wish to look at a stronger charter overall. Could the Minister assure us that her department will keep this under review? Perhaps some noble Lords could decide in time that it might be a subject that should be looked at by a special committee of this House.

[Baroness Vere of Norbiton (Con)]

My Lords, this final group contains one amendment in the name of the noble Lord, Lord Tunnicliffe. I have listened very carefully to what the noble Lord had to say and to all noble Lords who participated in this debate.

In my response I will have bad news and then good news. First, I will address why the amendment as it stands is not appropriate. As my noble friend Lord Balfe pointed out, I am afraid that after 90 days, to coin a phrase, nothing will have changed. There will not be regulations in place, the guidance will not be in place and there will be little, if anything, actually to report on. Therefore, the fundamental premise of having a report in 90 days will, unfortunately, not achieve what the noble Lord is looking for.

Looking at the detail of the amendment, proposed new subsection (2)(a) goes back to the point that my noble friend Lord Balfe made. It is true that we pass laws but we do not forget about them; there is always the process of the post-implementation review, but we would have to wait five years for that. I accept that that is a long way away and possibly not ideal, but it would cover pensions and pay. I will retain the position that to cover rostering would be a challenge because there are many different impacts on rostering. It may be that we can decouple them but I would not want to make that commitment now.

Proposed new subsection (2)(b) goes beyond the implementation and monitoring of the Bill. I understand that noble Lords wish to probe the UK Government’s plans for legislation, but I cannot say that we currently have plans to legislate further than is necessary. I have already noted that we must tread with caution, but we are already taking action on the areas beyond the matter of minimum pay, which, as I think noble Lords will all agree—indeed, as I agree—is not the only aspect of seafarer welfare that requires attention.

Noble Lords, including the noble Lord, Lord Hendy, mentioned the seafarers’ charter; I will get an update for him on where we are with it. In government terms, if the latest version was published in August, that is not as bad as I feared; I thought the noble Lord might have said April. But I will provide a written update afterwards on where we are and what the next steps are, because that is incredibly important.

Turning to proposed new subsection (2)(c), we always engage with the unions and recognise the importance of doing so. We have discussed the Bill with the unions. I do not feel that a written strategy of union engagement would be helpful; it would not be flexible enough and may miss things or include things that are no longer appropriate, and it would mean that we would be too constrained. I am absolutely sure that noble Lords would be the first people to write to me if they felt that unions were somehow being cut out of discussions.

Proposed new subsection 2(d) refers to

“a strategy for monitoring the implementation of”

bilateral wage corridors. Again, I appreciate the noble Lord’s interest in this important area and we are working hard to seek agreements. However, publishing a strategy for the implementation of a bilateral wage corridor may in itself be counterproductive, as many noble Lords discussed in Committee. These corridors will be memorandums of understanding and backed up by domestic legislation in each country, so their implementation will be different in different countries. Proposed new subsection (2)(d) would be a step too far in the current circumstances.

On proposed new subsection (2)(e), we do not consider that the Bill’s proposals interfere with rights and obligations under international law, including the United Nations Convention on the Law of the Sea, or UNCLOS. We therefore would not deem it necessary to state as much in the Bill.

In potentially better news, although I cannot commit to legislating for a report, I can reassure noble Lords that we are currently looking at governance structures to deliver Maritime 2050. Noble Lords will know about that very important document; it sets out the Government’s vision and ambitions for the future of the British maritime sector. This governance structure will include the delivery of the nine-point plan. Furthermore, the Government are planning annual joint industry and government progress reports—it is almost as though my noble friend Lord Balfe read my notes beforehand. Every year we will have an annual joint report between the industry and government. It will include progress on the nine-point plan, implementation of the Bill, the seafarers’ charter and an update on bilateral wage corridor negotiations. I feel that is pretty much what noble Lords are looking for. On the basis of this reassurance, I hope the noble Lord feels content to withdraw his amendment.

[Lord Tunnicliffe (Lab)]

I almost feel that the noble Baroness totally agrees with me but not quite enough. The amendment is meant to be helpful—it is helpful. I note that she more or less said that virtually everything in the amendment was right. I just want this in the Bill, so I feel that I have to divide the House on this point.

Seafarers’ Wages Bill [HL]

Baroness Vere of Norbiton Excerpts

3rd reading
Monday 7th November 2022 Lords Chamber

Moved by

[Baroness Vere of Norbiton]

That the Bill do now pass.

[The Parliamentary Under-Secretary of State, Department for Transport (Baroness Vere of Norbiton) (Con)]

My Lords, in moving that the Bill do now pass, I would like to reflect for a couple of minutes on the Bill and its passage. This legislation, although necessarily limited in scope, is a key part of the Government’s nine-point plan to improve seafarer welfare and working conditions. The Bill delivers on the Government’s commitment to ensure that employees with close ties to the UK are paid at least the equivalent of the national minimum wage while they are working in the UK or its territorial waters.

I reiterate the Government’s intention to continue working closely with ports, the shipping sector and unions as the Bill continues its passage through the House of Commons and, crucially, as we develop secondary legislation. We are very grateful to stakeholders for their constructive engagement and interest in the legislation so far and are keen for this to continue.

I will also take this opportunity to clarify a point I made in Committee about seafarers servicing oil and gas platforms. I had previously stated that seafarers on services to offshore renewable energy installations were also covered by virtue of Article 2 of the National Minimum Wage (Offshore Employment) Order 1999. I would like to correct the record and confirm that they are not entitled to the national minimum wage under existing legislation but are considered to already be in scope of the Bill if calling at a UK port more than 120 times per year.

As ever, I thank the noble Lord, Lord Tunnicliffe, and the noble Baronesses, Lady Scott of Needham Market and Lady Randerson, for their constructive approach to each stage of this Bill and to all other noble Lords who contributed, many of whom brought deep and specific expertise. Last but definitely not least, I pay tribute to the work of the parliamentary counsel as well as the House staff, the Bill team, my excellent private office, and my noble friend Lord Younger for his support.

[Lord Tunnicliffe (Lab)]

My Lords, I will comment briefly. The Bill is an important first step in the nine-point plan. I am very pleased that the Minister has reiterated her commitment to proceed on that plan; we all wait to see early progress. I will be studying the words relating to the clarification. I thank her and her support staff for the way that she has conducted the Bill. I do not have as many people to thank on my side, but I thank my adviser—who wrote some excellent speeches that the House heard—for supporting this work, and all noble Lords who took part.

Seafarers’ Wages Bill [HL]

Baroness Vere of Norbiton Excerpts

Consideration of Commons amendments
Tuesday 21st March 2023 Lords Chamber

64: Page 10, line 1, leave out subsection (6)

[Baroness Vere of Norbiton (Con)]

My Lords, I begin by expressing my gratitude to all noble Lords for their thoughtful consideration of this important legislation. As the Bill progressed through your Lordships’ House and the other place, the Government listened carefully to concerns raised by parliamentarians, and we engaged further with stakeholders. The amendments before your Lordships’ House today address many of the concerns raised and ensure that the Bill is effective and enforceable, simple to apply and delivers its intended benefits to seafarers.

The amendments to be considered today may appear numerous, but many are minor and technical. The amendments can be considered according to four themes: switching powers to duties; clarifying matters around equivalence declarations; switching the duty for setting a surcharge from the harbour authority to the Secretary of State; and, finally, changes to regulations, guidance and directions, most of which come from the previous three themes.

I turn to the first set of amendments, which change the previously discretionary powers of harbour authorities to request declarations, impose surcharges and refuse access to harbours to mandatory duties. Through continued engagement with port stakeholders, we were informed that harbour authorities would be unlikely to exercise their discretionary powers without being directed to do so. Therefore, this change from discretionary powers to duties will strengthen the Bill.