Draft Maritime Transport Access to Trade and Cabotage (Revocation) (EU Exit) Regulations 2019

Karl Turner Excerpts

Tuesday 29th January 2019 General Committees

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

It is always a pleasure to see you in the Chair, Mr Walker, and to serve under your chairmanship. As the Minister has mentioned, this instrument revokes legislation related to trade and cabotage that the UK will no longer benefit from, or be subject to, when we leave the European Union. All the regulations will either be revoked completely or replaced by existing UK law.

The instrument effectively takes away—albeit indirectly —the legal implementation of our signing of the OECD shipping principles for access from third countries’ flagged ships for international shipping, which is council regulation 4057/86 of 22 December 1986 on unfair pricing practices in maritime transport. Without a direct UK replacement, doing so would be a backwards step, and the instrument does not make clear how or when a replacement will be introduced.

Council regulation 3577/92 applies the principle of freedom to provide services to maritime transport within member states—that is, maritime cabotage. My understanding is that the instrument states that that principle will be retained in UK law, but does not adequately explain how. For example, it does not make clear the timeline between revocation of the EU regulation and its retention in UK law. What impact will the instrument have on public contracts that use that regulation that are currently out to tender? Again, the instrument does not cover that.

The explanatory memorandum states:

“The UK Government has agreed with its Scottish and Welsh counterparts to draft”

amendments to the Scotland Act 1998 and the Government of Wales Act 2006. Will there be wider consultation on the draft regulations with trade unions, passenger groups and other stakeholders? The instrument does not make that clear at all.

Given that the Government refuse to rule out a disastrous no-deal Brexit, I wonder whether the Minister call tell us what assessment has been made of what the removal of cabotage rights will mean for UK shippers in a no-deal scenario. Have the Government made any attempt to negotiate guarantees for the extension of maritime cabotage rights with the EU in a no-deal situation? Are the Government seeking to agree reciprocal cabotage rights for EU and UK shippers as part of our longer-term relationship with the EU? Has the Minister spoken to her EU counterparts about the possibility, and is she confident of achieving that objective? Without real clarification of those points, I will struggle to say that the Opposition can support the instrument.

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[Ms Ghani]

I am grateful to the hon. Members for Kingston upon Hull East and for West Dunbartonshire for their contributions, which underline the importance of the maritime sector to the UK’s trading capacity and success. It is important that people understand that, despite revoking EU legislation, the UK will still operate a liberal cabotage regime. That means shipping companies registered in EU member states will still be able to operate in the UK as they do now, so very little will change.

Competition was mentioned. After exiting the EU, the UK will have a robust competition regime, overseen by the Competition and Markets Authority, and will be able to take trade remedies action in its own right under the aegis of the World Trade Organisation. If hon. Members have concerns about what may or may not happen in a no-deal scenario—obviously, this instrument is intended to ensure that we have everything in place for such a scenario—I suggest that they support the Prime Minister’s deal.

The hon. Member for Kingston upon Hull East mentioned consultation with unions. We undertook extensive consultation, not only with the UK Chamber of Shipping but with the Scottish and Welsh Governments. We can discuss many issues, but we need to ensure that, in a no-deal scenario, we continue doing business as we do today. That is what this statutory instrument is about.

[Karl Turner]

On consultation, have there been any discussions with the National Union of Rail, Maritime and Transport Workers, which represents many crew members on vessels?

[Ms Ghani]

I thank the hon. Gentleman for that question. We are not only blessed with the International Maritime Organisation, across the water, but the maritime sector is a global sector and one that we take very seriously. Only last week, we launched “Maritime 2050”, working with all stakeholders. We communicate with as many agencies as we can. We want to do what we can to ensure that the maritime sector in the UK continues to be as robust as it is.

I turn to cabotage. The draft regulations will make no practical difference to cabotage arrangements in UK waters. Operators from EU or non-EU countries will be able to continue to provide cabotage services as they do now. However, EU operators will no longer have guaranteed rights, which operators from other countries similarly do not have in UK waters. Such rights would not be reciprocated for UK operators in EU waters, so it is reasonable for us to revoke them.

[Karl Turner]

I am afraid the Minister did not answer my question. The question is, what discussions has the Minister had with the Rail, Maritime and Transport union, which happens to be the biggest trade union in the sector, representing seafarers in this country? It seems incredible to me that the Government have not had any discussions with the RMT union. Will she be clear about that quite simple point?

[Ms Ghani]

What is incredible is that the RMT did not update the hon. Gentleman to say that we did indeed speak to it recently. The union made it very clear that this piece of legislation does not adversely affect its practical interests in any way. Perhaps that is the incredible piece of information that he can take back to the RMT.

The changes made in the draft regulations are appropriate. They will remove from the UK statute book regulations that would otherwise be retained after EU withdrawal. They are fully supported by the Government, and I commend them to the Committee.

[Karl Turner]

I am afraid that I am not at all persuaded by what the Minister said. For that reason, the Opposition cannot support this draft instrument.

Question put.