Seafarers’ Wages Bill [Lords]

Debate between Luke Pollard and Mark Harper

Monday 19th December 2022 Commons Chamber

[Mr Harper]

We think the definition in the Bill at the moment will capture the vast majority of the services we wish to capture. We think that defining that in the way that we have makes it more difficult for people to avoid than it would be if we were very specific about types of vessels, for example. I am conscious that a number of people wish to speak in this debate, so I will make a bit of progress before taking any further interventions.

We said from the start that where new laws were needed, we would create them, that where legal loopholes—which the hon. Gentleman referred to—were cynically exploited, we would close them, and that we would strengthen employment rights. That is why the Bill is important. Operators of regular services to the UK will be required to pay their crew a decent wage if they want to access our ports, and it will remove the incentive for other, unprincipled firms to drag down pay for seafarers with close ties to the UK.

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 and in our territorial waters are not entitled to the same as other workers simply because they work on an international, rather than a domestic, service. The Bill will fix that particular issue. I recognise that there are other issues that people wish to deal with, but the Bill deals with that. It does not amend the National Minimum Wage Act 1998, but it makes provision for seafarers on services in scope of the Bill to be paid at least a rate equivalent to the national minimum wage.

Since March, we have consulted extensively with the industry to make sure the measures we are discussing are workable. Those discussions have been productive and are continuing. As was just alluded to, the legislation will apply to international passenger or freight services that call at UK ports on at least 120 occasions in a year, which equates to 72 hours on average. Harbour authorities will be empowered to request declarations from operators of services to confirm that they pay their seafarers no less a rate than that equivalent to the national minimum wage. If they do not provide that declaration when requested, harbour authorities will have the power to impose a surcharge, or may be directed by the Secretary of State to do so. It will not be a profit-making exercise for harbour authorities. They may only use the money raised from the surcharge for the discharge of their functions or for provision of shore-based seafarer welfare facilities.

We hope the surcharge is never required. The point of it is to be a disincentive to operators paying low wages. It will be set at such a rate that it does not make financial sense for operators to underpay staff. If they do not pay the surcharge when it is levied, harbour authorities will be empowered to deny access to the port. That will not be an onerous responsibility for harbour authorities; beyond accepting the declarations, they will not be responsible for checking the details of seafarers’ pay. The enforcement role will be carried out by the Maritime and Coastguard Agency, which will undertake inspections and investigations and, if necessary, prosecute offending operators.

[Luke Pollard (Plymouth, Sutton and Devonport) (Lab/Co-op)]

I am curious about denying access to ports. What consideration has the Secretary of State given to granting powers to detain a ship in port? Denying an operator access to a port may simply mean that it moves to a different port of the United Kingdom; detaining a ship would mean much greater risk for the operator, which will surely mean greater compliance.

[Mr Harper]

We judge that the risk of operators moving to or operating out of a different port is relatively small. The routes on which they operate are the profitable ones, so ceasing to operate on them would not make business sense. We think that denying access to a port is a proportionate response to the problem, so we have settled on that measure as the appropriate solution.

We will draw up regulations and guidance setting out further details of how the legislation will work. They will be subject to consultation to ensure that our measures are practical and effective and that people cannot avoid them. Feedback from the industry has been crucial throughout the process. Ferry operators told us that inclusions or exclusions based on type of service would create market distortion and ambiguity, so the only specific exclusion in the Bill is for

“a service that is for the purpose of leisure or recreation, or…a service provided by a fishing vessel.”

--- Later in debate ---

[Mr Harper]

The hon. Gentleman makes a very good point that illustrates why I will have legal powers to enforce whether a port levies the surcharge: to deal with any issues where there is a conflict. He makes a perfectly fair point, and we have thought about how to deal with it.

Our analysis shows that the arrangement that we have set out will capture the vast majority of ferries to the UK, but without including services such as deep-sea container services or cruises. Those services will remain out of the Bill’s scope, because they do not call at UK ports frequently enough that the seafarers working on board could be said to have sufficiently close ties to the UK.

We will continue to engage with industry throughout the passage of the Bill. We intend to consult on regulations and supporting guidance, which will include setting the framework within which harbour authorities will set their tariffs for surcharges and the method of calculating the national minimum wage equivalent rate.

It is important to remember that the Bill is just one part of a wider plan to protect seafarers’ welfare. It will not solve all the issues brought to light by P&O Ferries’ actions, but it is an important step. That is why we continue to discuss seafarer protections and welfare with a range of close European partners, including discussions about the creation of minimum wage equivalent corridors to encourage the payment of fair wages on entire routes. To continue to improve the protection of working conditions for seafarers, we are developing the voluntary seafarers’ charter.

[Luke Pollard]

There has been a race to the bottom, with P&O Ferries creating a toxic culture, but not all ferry companies are doing the same. Brittany Ferries operates out of Plymouth; it provides a significant lifeline route between Plymouth, Roscoff and Santander that is vital for our exports of agriculture and fisheries products. Does the Secretary of State agree that it is not about P&O Ferries alone? There are examples of good practice among UK ferry operators; it could well be improved, but it is good practice. The race to the bottom that P&O Ferries started is not one in which all UK and French ferry operators want to participate.

[Mr Harper]

The hon. Gentleman raises a very good point. The point of the Bill and the nine-point plan is to ensure that ferry operators that want to operate in a responsible way are not forced out of business or forced to drop their standards by unscrupulous operators. He also makes the point that services to Plymouth are incredibly important; speaking as a south-west Member of Parliament myself, I want to make sure that they can continue.