Cruise Industry

Kirsty Blackman Excerpts

Wednesday 22nd September 2021 Westminster Hall

[Kirsty Blackman (Aberdeen North) (SNP)]

Thank you very much for your excellent chairing of this debate, Mr Efford. I thank the hon. Member for Southampton, Itchen (Royston Smith) for securing the debate.

I think my colleagues from Scotland, the right hon. Member for Orkney and Shetland (Mr Carmichael) and my hon. Friend the Member for Inverclyde (Ronnie Cowan) missed a trick: they did not talk about their UNESCO world heritage sites, nor did they talk about the quality of their coffee, which I am sure is truly wonderful, in Orkney and Shetland and in Inverclyde—as well as in Aberdeen, of course.

I also did not expect that we would be talking about Disney songs, so I will hold myself back from bursting into song. I could not think of an appropriate maritime song to sing, but I am sure my children will correct me later and tell me I have missed one—probably from “Moana” or “The Little Mermaid”.

Rather than focusing on covid, I want to talk and think about pre-covid and post-covid, what the cruise industry will look like and the benefits it will have for our communities. It is undoubtedly a massive success story. Between 2014 and 2019 we saw 90% growth in cruise ship calls and passenger numbers in Scotland. That is a staggering increase, and it shows the increase not only in the popularity of cruise ships, but in the ability of Scottish ports to take those cruise ships in and of Scottish communities to ensure that we provide the best possible services.

In Scotland, the cruise industry supports more than 800 employees and generates around £23 million gross value added for the Scottish economy. It also extends the tourism season in Orkney and Shetland. However, the key thing for me and for the SNP is that sustainable cruise tourism development must be the overarching requirement. I appreciate the different situation that Southampton and even Inverclyde find themselves in, in that they are cruise ports and less destinations—I am sure Inverclyde is a destination and so is Southampton, but they are involved in servicing the industry more than, say, Orkney and Shetland.

We need to ensure that the tourism that we see from cruise ships and cruise passengers benefits those local economies, and that local economies see the plus points of that. We have seen issues around Scotland with things such as the North Coast 500, which is excellent but has brought problems as well as positive benefits to those areas. We must ensure that we strike that balance for local communities.

Cruise ship stays make up 15% of overnight tourism volume in the highlands and islands, but they represent a much lower percentage of the overnight tourism spend there. I understand that that is the nature of cruising; that is how it works. However, we cannot see a race to the bottom between Scottish or British ports trying to allow cruise ships to come as cheaply as possible, without people visiting their local areas. We must see the benefit to those local areas. Although having cruise passengers on an island or in a community in Scotland is a great thing, it can also be unsettling for the residents and that local services are more stretched as a result. We need to make sure that balance is struck.

The harbour in Aberdeen is split between my constituency, Aberdeen North, and Aberdeen South. A new harbour is being built in Aberdeen South that will be able to accommodate 300 metre vessels with a maximum 10.5 metre draught. Before that was being built in my city, I did not know a huge amount about the cruise industry or how it worked for local communities. I continue to be concerned that areas around the new harbour in Aberdeen—among of the more deprived communities in the city—will not gain from the new harbour and cruise ships in the way that I would like them to, given what they have had to give up for it to be built, with the number of road closures and work that has been going on. I would like to see those communities benefit.

My hon. Friend the Member for Inverclyde mentioned the culture quarter, and we need to support local communities in doing that, to ensure that cruise ship visitors can spend money in the local area. That is what we need to see: the economic benefit coming to those areas as a result.

[Mr Carmichael]

The hon. Lady touches on something very important. The capacity for cruise ship passengers to spend money when in port is very often determined by the terms of the contract that they have with the cruise ship. That is why I say that in rebuilding the industry and looking at the impact it has on different parts of the country, we need that sense of partnership. We need our communities to be talking and to be able to influence the ships, as well as the other way around.

[Kirsty Blackman]

I absolutely agree, and I thought that the right hon. Gentleman’s speech was very thoughtful on that matter. He has really thought about the needs of his community. That is why I stressed that we must not have a race to the bottom. We do not want our ports fighting over who can give the cheapest terms because that will only hurt our communities; it will mean that our communities do not see the benefit. It would be much more positive if they worked together, both as local communities and in a more overarching strategic way, as he said.

It is really unfortunate that we have not had much co-operation between the UK and Scottish Governments on green ports, in particular when we have been clear about the key things that we want: a focus on net zero and a focus on the real living wage. It is completely reasonable to say that people working in and around green ports, cruise ports or any other kind of port should be paid the real living wage. One of the biggest concerns that I hear, in particular on—slightly off topic—oil and gas supply vessels, is that people are not paid appropriately because they are on tickets from other countries and therefore they are paid less.

We need to make sure that we bear down—I do not like that phrase—on that and reduce the number of people not being paid a wage that they can live on. We need to ensure that we have laws and rules to fix that problem in a maritime way, and that the people working in ports are paid the real living wage, not the national living wage. It is such an important industry, and it is one that will continue to grow. We need to make sure that we see the benefits for the people working directly in the industry and for the communities seeing the visits.

People travelling on cruise ships get to visit some of the most inaccessible places across the UK—no offence to the right hon. Member for Orkney and Shetland. They get to visit places that cannot be reached by hopping on a bike or a train. It is really important that the people who are travelling on these ships and the cruise companies recognise that these communities are fairly rural and cannot necessarily deal with that influx without support. This is a really positive industry; it is a massive success story, particularly for Scotland and its more rural communities. I would like to see it continue to grow, but we probably need to work more with local communities to ensure that they see its benefits.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Transport (Robert Courts)]

It is a real pleasure to serve under your chairmanship, Mr Efford. As is often the case when we discuss our wonderful maritime sector, we have had a debate that has been incredibly interesting, inspiring, thought-provoking, amusing, musical, well-informed and above all passionate, and it is an honour to respond to all the hon. and right hon. Members who have made speeches. I congratulate my hon. Friend the Member for Southampton, Itchen (Royston Smith) on securing this timely debate. I know this topic is close to his heart; it is to mine too, and I am keen to debate it with other Members today, particularly during Cruise Lines International Association Cruise Week.

As I have got to know the sector, I have been struck by its incredible variety. We have seen this outlined and explained in the speeches today: the majesty of the large cruise ships; the family ships; the small, boutique exploration ships. It is for this reason that the cruise industry is at the heart of the UK’s maritime identity. More than that, we have seen today that it is a part of the human desire to explore. It brings enormous cultural and social benefits to the country and to the people who cruise, but it also brings identity. The phrase used by my hon. Friend the Member for Southampton, Itchen, with regards to the ever-changing landscape of Southampton, particularly struck me, as we see what this means to his constituency. The value of the sector to the economy is significant and undeniable. Prior to the pandemic, it supported over 82,000 jobs. CLIA estimates that passengers and crew spent £486 million at ports of embarkation and call in 2017. We have heard from hon. Members of the effect that the industry had.

Unlike the hon. Member for Wythenshawe and Sale East (Mike Kane), I am not going to fall into the trap of debating what is the most important cruise destination or port in the UK. There are all manner of beautiful, interesting and amazing places to visit. I always enjoy listening to the hon. Member for Strangford (Jim Shannon), and he did an amazing job in selling his constituency. I am delighted to report that I have been to his constituency and need no persuading of its wonders, but I very much look forward to visiting again as soon as I can. We heard very powerfully from him of the effect that the cruise industry has on Belfast and his constituency.

As we heard from my right hon. Friend the Member for Romsey and Southampton North (Caroline Nokes), every cruise passenger who passes through the terminal is an opportunity for coastal communities all over the UK; from Orkney to Thurrock, Manchester to Northern Ireland, Aberdeen to Inverclyde, to Southampton—we have really seen that today. In particular, it provides opportunities that areas that have been disadvantaged can make the most of. I have been struck by some of the comments made today by hon. Members; I am very keen to work together with councils, and with the devolved Administrations, to ensure that every community benefits. As the hon. Member for Strangford says, we are better together, and I am keen to do everything I can to help.

That is why it has been so devastating that the cruise industry has been at a standstill for over a year. I have also seen the very moving and sad sight of the great ships moored offshore; it is a sight that I hope not to see again, but it made an impact on me. The cruise industry was an early victim of the covid-19 pandemic. We all saw the stories of outbreaks on vessels that were splashed across the papers at the beginning of the pandemic. However, as my right hon. Friend the Member for Romsey and Southampton North pointed out, operators, industry and Government worked very closely together to take action to repatriate over 19,000 UK nationals from vessels around the globe. The UK also facilitated the repatriation of over 13,000 crew members from cruise ships to their home nations, and encouraged other nations to do the same.

The impact of the pandemic on the cruise industry was considerable; we had to find a way forward. My Department brought teams across Whitehall to work together. I emphasise that for a good reason—it really was working together. I pay tribute to the sector; to its stoicism, as was referred to earlier, and to how it put the safety of passengers and crew at the heart of everything it did. I also pay tribute to my team at the Department of Transport, for whom this has been a labour of love. They have worked passionately with the industry to be able restart the sector. That was possible because the industry worked very quickly to produce the comprehensive set of protocols, through the UK Chamber of Shipping, that we have already heard about today. They have been recognised by the International Maritime Organisation as good practice globally. It is a significant achievement for all those involved, and to the industry’s credit that these were produced so quickly, and that they are substantial. Operators submit to an external verification process to achieve hospital-grade infection prevention certification. Indeed, one of the external verification providers that we have heard from as part of the restart process has assured us that in some cases cruise ships have outperformed hospitals. My right hon. Friend the Member for Romsey and Southampton North is right to point out the extraordinary facilities that exist on some of these ships—I have seen some of them—because there really are hospitals on board. That is quite incredible.

So we have seen a phased return of cruising. I was delighted to see the first domestic cruise setting sail from Southampton in May. The attitude of the sector—this positive, outward-going, constructive, go-getting attitude—has really been shown by the creation of a new domestic market for cruising. Customer appetite has been phenomenal and I am absolutely delighted that passengers have experienced the beauty of the UK’s coastline—all around the UK, as we have heard today—despite the summer weather that we have had, which has perhaps been suboptimal, to say the least.

The Department for Transport led the global travel taskforce, of course, and as part of that I led a ministerial task and finish group for cruise restart, to oversee the measures put in place and to ensure that we could restart and restaff in a safe way. I thank my colleagues from the Foreign, Commonwealth and Development Office, the Department of Health and Social Care, and the Department for Digital, Culture, Media and Sport for their diligent work, and for working together with me in restarting cruise in a safe way. I cannot say how delighted I was that the first international cruise started again in August from Liverpool, where the hon. Member for Wythenshawe and Sale East and I were the other day. That is a real testament to the extraordinary work that has gone into enhancing the resilience of the sector from Government and industry working together.

Nevertheless, I of course recognise that this long suspension of the industry has had a significant financial impact. We heard that most clearly from my hon. Friend the Member for Thurrock (Jackie Doyle-Price), who chairs the all-party parliamentary group on maritime and ports. She very powerfully explained that the financial impact on the sector has been significant. Again, I pay tribute to the sector’s stoicism. However, the impact has not only been felt on the cruise sector itself but on ports, on the wider supply chains and on local communities, from Southampton to Strangford, and from Manchester through to Thurrock. The right hon. Member for Orkney and Shetland (Mr Carmichael) talked about tour guides, which is a very good example of how local small industries really benefit from the cruise industry.

That aspect is particularly important, of course, for my hon. Friend the Member for Southampton, Itchen. Last week, he and I were both at the unveiling of the fifth cruise terminal at Southampton, the absolutely beautiful new Horizon terminal. It is a state-of-the-art building, equipped with shore power to reduce emissions from cruise ships in port, and it is the result of investment by Associated British Ports with the Government and the Solent local enterprise partnership. That visit was particularly significant for me, because one of the first visits I made after being given this job, within just one or two days, was to Southampton, and almost a year to the day later I revisited the same site and saw that incredible new facility.

Of course, we have heard that there are many other new facilities elsewhere. We have heard from the hon. Members for Inverclyde (Ronnie Cowan) and for Aberdeen North (Kirsty Blackman) about the investment that is being made in their part of the world, including the £350 million expansion in Aberdeen, which includes space for cruise. That is very welcome.

When we look to the future, such investment encapsulates everything that is best about the sector. It is looking to the future, reaching for new standards and looking for goals that are common across the whole of maritime, as we heard in the debate last week. I saw that for myself when I visited the Iona, which is P&O’s newest and most environmentally friendly ship, in Southampton a couple of months ago. It is an incredibly impressive vessel and really shows how the industry is going the extra mile to make itself more environmentally friendly.

Of course, we have the transport decarbonisation plan. Shore power, as we see at that new fifth cruise terminal in Southampton, is a major part of that, because it reduces emissions, meaning that ships do not have to run their generators in port, which will help communities in areas such as Aberdeen or Southampton, Itchen, and help to ensure a greener and cleaner environment for all. This winter, we will consult on how Government can support wider deployment as we transition to net zero.

Of course, cruise is also a major part of levelling up, which is central to this Government’s agenda, to ensure that we have direct investment from the cruise sector in port towns and cities, creating local jobs and initiatives to improve air quality in those constituencies.

[Kirsty Blackman]

I am really pleased to hear about the focus on net zero and the amount that the Minister is able to say about what the cruise industry is doing; that is excellent. On the employment issues that have been raised, we are really clear that people should be paid the real living wage, but if he is not willing to go that far, can he at least confirm that he believes people should be paid the national living wage if they are working on cruise ships that are docking in British ports?

[Robert Courts]

I am grateful to the hon. Member for raising that point. We are always interested to see what more we can do to raise standards for those who work in this most wonderful of sectors. Last year, I signed into law the regulation that meant that the majority of those who work in UK waters are paid that minimum wage, which means that the attractiveness of using seafarers from elsewhere is much reduced. However, I will of course continue to look at what else we might be able to do. We want to make sure that the UK is an excellent place to invest in, and to bring more cruise ships, more seafarers, more jobs and more money into this area. We will continue to support the safe resumption of cruise.

I will make one or two other points before I invite my hon. Friend the Member for Southampton, Itchen to sum up the debate. Making sure that crew changes are managed efficiently and safely is key, and I am pleased to note that cruise companies already implement their own vaccination policies and report very high levels of fully vaccinated passengers, but it is also a matter for seafarers. It has been very difficult to access vaccination for seafarers, because it is complex. We have worked very closely together, and I want to thank the NHS for making clinics available, particularly Solent NHS Trust. That trust has been incredibly impressive, even sending NHS staff onboard to ensure that seafarers are reached, which will clearly have a major impact.

A number of Members have mentioned the seafarers earnings deduction, and I will say a word or two about that. Clearly, the UK has been under extraordinary financial pressure over the past 18 months. A large percentage of UK seafarers are working internationally, and of course being eligible for the seafarers earnings deduction can make an important difference to their financial wellbeing and ability to support families. Unfortunately, the global suspension of the cruise sector has meant that seafarers, through no fault of their own, have been unable to meet or maintain the eligibility requirements for accessing SED. The industry has warned that this will have a significant impact on those seafarers, as all right hon. and hon. Members will realise. My predecessor and I have both engaged extensively with the Treasury on the matter. The effect of it has been difficult to quantify, but I hope that a clearer picture will emerge with the resumption of international cruises. I look forward to working with industry to provide further data to help Government make an informed decision on what further action, if any, they are able to take.

[Kirsty Blackman]

That is a really important point for a significant number of all of our constituents. The Minister has said that he has had talks and that things may be going forward, but if he will undertake to write to us and let us know what is happening with this issue in future, I would really appreciate it.

[Robert Courts]

The substantive point of the comment that I made was about the data—in particular, the clearer picture of the impact—and I can certainly write to hon. Members if that would be helpful, so that they can understand what data is required. I can certainly look at that once it is provided.

In summary, I thank all hon. Members who have taken part in today’s debate. It has been a long and challenging 18 months for cruise, and I cannot express enough times my delight that with co-operation across Government and the industry, this incredibly valuable sector has been able to restart. As we have heard, prior to the pandemic, cruise was one of the fastest-growing sectors of the tourism industry worldwide, and was of huge importance to Britain and the public. As ships sail from our shores again, I want the sector to feel confident that the UK is a great place to do business, and for it to bring more ships and more jobs, and more for our communities all over our United Kingdom.