Friday 6th September 2013

(10 years, 8 months ago)

Commons Chamber
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Philip Davies Portrait Philip Davies
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My hon. Friend makes a good point, and I hope that such detailed questions, which go way beyond my sphere of expertise, will be covered by the Minister. He has much more expertise in these matters than me, and I have hopes that he will be able to cover much of this ground in more detail than I could.

Environmentalists are also concerned about pollution of the deep sea, which they say is likely to occur from deep-sea mining activities as the ocean currents may carry sediments and toxic pollution far from the area of mining activities to areas of fishing, which would potentially have a terrible impact on fishing levels. However, it is worth quoting from a magazine that I am sure is read by many Members called Mining Weekly—I am sure you are a regular reader of it, Mr Speaker, so you will be able to correct me if what I say is wrong. The environment principal and marine ecologist for De Beers, Dr Patti Wickens, said:

“An environmental-impact assessment was undertaken in the early 1990s to assess the impact of offshore diamond mining on the seabed in Namibia. It was found that while mining activities alter the nature of the seabed landscape or habitat, this effect is not permanent.”

We should bear that point in mind: there may be some changes, but they will not be permanent, and the habitat will return to its normal state after the mining ceases in an area. I hope that gives comfort to those with concerns.

Russell Brown Portrait Mr Russell Brown (Dumfries and Galloway) (Lab)
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I agree to a certain extent with what the hon. Gentleman says, but what if the damage is so significant that the environment cannot repair itself as he blandly indicates? Is there not a real risk that damage may not be reparable?

Philip Davies Portrait Philip Davies
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I am grateful to the hon. Gentleman for giving me more credit than I am due. I was not claiming anything; I was merely quoting what a principal marine ecologist said. I would not wish the hon. Gentleman to think that was my theory. I would not want to claim credit for what Dr Patti Wickens said in Mining Weekly. I can only refer him to her if he wants to argue the case. I suspect he will get much further if he argues the toss with her rather than me. I will leave on the record what she said, however, and people can make their own minds up as to whether the hon. Gentleman or Dr Patti Wickens knows more about this subject. That is a judgment we will all have to make at some point.

The deep-sea bed is defined in the schedule as an

“area of the sea bed situated beyond the limits of national jurisdiction of the United Kingdom or any other State”.

The main marine mineral content of interest is manganese nodules, manganese crusts and seafloor massive sulphides. Two metallic mineral resources of the deep-sea floor incorporate dissolved metals from both continental and deep ocean sources. One of these is what my hon. Friend the Member for South East Cornwall—and, I think, my hon. Friend the Member for Bury North (Mr Nuttall)—described as golf ball-sized polymetallic modules. I have heard them described as “golf-to-tennis” ball size, but I am not sure whether there is any mileage in arguing about the size, as we know what we are talking about here.

These nodules precipitate from sea water over millions of years on sediment that forms the surface of the deep ocean. It is understood that they require the undisturbed conditions which are found in areas of the deepest oceans. That serves to highlight again the environmental point that the undisturbed conditions are what is important. To clarify:

“Polymetallic massive sulphides are types of minerals discovered in the oceans in 1979 that were previously known only from deposits that have been mined on land since pre-classical times for copper, iron, zinc, silver and gold.”

Rather than get bogged down in all the science, which my hon. Friend the Member for Bury North covered in some detail, I will focus on some of the impacts of this proposed legislation and ask some questions, which I hope the Minister may be able to answer.

The history is important. The oceans had long been subject to a freedom of the seas doctrine, a principle dating back to the 17th century essentially limiting rights and jurisdiction over the oceans to a narrow belt of sea surrounding a nation’s coastline. The rest of the seas were proclaimed to be free to all. That seems to me to be a sensible doctrine. It has been challenged by some countries, however, which have tried to claim the rights to certain seas beyond what international agreement indicates.

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Russell Brown Portrait Mr Russell Brown (Dumfries and Galloway) (Lab)
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It is a privilege to follow the hon. Member for North East Somerset (Jacob Rees-Mogg). With you having appeared on the scene, Mr Deputy Speaker, I thought that he was about to take a second crack at the whip—

Lindsay Hoyle Portrait Mr Deputy Speaker (Mr Lindsay Hoyle)
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He would have been all at sea.

Russell Brown Portrait Mr Brown
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I suspect that he would have been.

I congratulate the hon. Member for South East Cornwall (Sheryll Murray) on introducing her private Member’s Bill this morning. Like many others in the House, I fully understand her passion for all things maritime. She is steeped in the very issue. The Bill would amend the Deep Sea Mining (Temporary Provisions) Act 1981. Like one or two others in the House this morning, I knew very little about deep-sea mining until I discovered that I would be at the Dispatch Box this morning. I thank the House of Commons Library for producing a standard note, which has been used by other Members this morning and which was my starting point.

I want to make clear my interest in the environment and that I make a monthly contribution to the WWF, but I say to those on the Government Back Benches that that does not colour my position. It is a contribution that I make to the WWF, not one that it makes to me. It does not lobby me in any shape or form; let me be frank about that.

I had breakfast this morning with an expert, my hon. Friend the Member for Ellesmere Port and Neston (Andrew Miller), who is chair of the Parliamentary and Scientific Committee. Members present may be interested to know that the committee will undertake a programme of work during the autumn and bring in experts to examine the issue of deep-sea mining. Back Benchers who have spoken this morning may wish to attend those sittings.

Just because we cannot see something does not mean it is not precious. There is much going on down in the depths of the seas and oceans, and as I said earlier, if we do things in a radical way we could do damage that can never be repaired. I believe that we should explore—I do not know whether exploitation is the right word, because it worries me—what could be of benefit to mankind. That is what this is all about: we have explored space, so why not explore the depths of the oceans as well?

We must, however, be measured in our approach. My hon. Friend the Member for Brent North (Barry Gardiner) completed a quote that the hon. Member for Bury North (Mr Nuttall) gave earlier by pointing out that we have to be “reasonably practicable”. As a trade unionist, I know that the Health and Safety at Work etc. Act 1974 is littered with the term “reasonably practicable”.

I would like to think that we have moved on since the Deep Sea Mining (Temporary Provisions) Act 1981, which is the very reason why the hon. Member for South East Cornwall has proposed the Bill. It is 30-odd years later and I know that the hon. Member for Bury North will be wondering why the Labour party has changed its mind. We need clarification—perhaps the Minister will provide it—on how many applications have been made for licences and how many have been refused, and on the important issue of how we will police the companies that have secured them. I will not be anywhere near as radical as the hon. Member for North East Somerset, because I think we need some kind of control over what is happening. Our environment is precious not only to us, but to those who will come after us.

David Nuttall Portrait Mr Nuttall
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On the question of policing, does the hon. Gentleman think that the present provision in section 11 of the 1981 Act, which gives the Secretary of State the power to appoint inspectors to assist in the execution of the Act, is satisfactory?

Russell Brown Portrait Mr Brown
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I thank the hon. Gentleman for that intervention. It raises the question of how the inspectors carry out their work. It brings to mind the old adage, “Out of sight, out of mind.”

Barry Gardiner Portrait Barry Gardiner
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I am sure that my hon. Friend will understand that the provision of inspectors relates more to the other functions under the 1981 Act, whereby certain minerals could be made available to the Secretary of State and the Government for inspection so that there was a clear understanding of the quantities and qualities of the minerals that were being mined. I think that that is the inspection regime that was envisaged in section 11, not going down to the sea floor and seeing how the mining was being carried out.

Russell Brown Portrait Mr Brown
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My hon. Friend is absolutely right to provide that distinction. Again, without wishing to put pressure on the Minister, perhaps he will be able to give the history of what has been done.

Greenpeace, as quoted in the standard note, draws attention to

“the rapid increase in license applications being made to the International Seabed Authority to exploit the mineral resources found in international waters.”

It also states:

“If seabed mining is allowed to go ahead without a comprehensive system of environmental protection in place we may be destroying species forever before they have even been scientifically described.”

The hon. Member for South East Cornwall gave an explanation of what Greenpeace is talking about. There are things down there that have not yet been determined or detected.

Let me make it absolutely clear that the Opposition will not oppose the Bill. However, as was said earlier, we would like certain parts of the schedule to be improved. The Bill is about the protection of our environment and the opportunity to use the resources that are there for this nation—I am sure that the hon. Member for North East Somerset would agree with that. We should be able to fully utilise what lies in the murky waters of our seas and oceans, but we must consider the manner in which that is done.

David Nuttall Portrait Mr Nuttall
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I am listening carefully to the hon. Gentleman. Does he think the primary responsibility for the crucial task of setting the level of environmental protection should lie with this House or the ISA?

Russell Brown Portrait Mr Brown
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At the end of the day, we are passing legislation that must meet the needs of mining companies and other businesses not just in this country, but elsewhere. We should definitely be looking at what best meets the needs of the UK, but we cannot ignore what is going on internationally.

To conclude, I wish the hon. Member for South East Cornwall well in taking the Bill through Committee. I do not know whether her Back-Bench colleagues who are in the Chamber today will assist her with it as it progresses to its next stage, but if Opposition Members in the Committee table amendments—I know that only one has turned up today to take part in the debate—I hope that she will take them on board, because they will be intended not to destroy it but to improve it. I wish her well in the Bill’s next stage.

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Alistair Burt Portrait Alistair Burt
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Thank you, Mr Deputy Speaker.

The procedures for handling applications to explore for minerals on the deep sea bed are set out in the regulations adopted by the authority—one set for each type of minerals, polymetallic nodules, polymetallic sulphides and cobalt-rich crusts. The applicant makes an application to the authority, and pays the fee of $500,000. But as we have indicated, there is a certificate of sponsorship from the state party concerned; it is stipulated in the convention that all applications must be sponsored by a state party.

Because of the concerns voiced about environmental protection, I have taken the liberty of obtaining a copy of the two applications for licences that we have made under that sponsorship. The House will be pleased to know that in both, the issue of environmental standards is put forward by a representative of the United Kingdom, who makes the application on behalf of the company being sponsored. So environmental protection is at the heart of the application that is made by the United Kingdom when sponsorship applications are made.

Russell Brown Portrait Mr Russell Brown
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For clarity, would the Minister be prepared to put copies of those documents in the Library for other Members to inspect, should they wish?

Alistair Burt Portrait Alistair Burt
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I do not know yet, because these are applications relating to commercial companies. I will check. My understanding is that when the application is made to the ISA, there is a nomination process which is led by a speech or a recommendation by the representative of the sponsoring state, to explain that it backs the application. So the document relates to a specific company. I genuinely do not know whether these are public documents. If they are, I do not think there would be any problem, but I must check.

However, I do not think there would be any problem in my reading out the appropriate section in one of the applications. It states:

“As was made plain last year—and indeed the United Kingdom has said on a number of occasions in the Assembly and the Council—the United Kingdom is committed to ensuring the highest environmental standards for companies which it sponsors under Part XI.”

Again, our experts have looked at the application by this particular company and are entirely satisfied that the company will be applying the highest environmental standards. I know from my personal contacts with the company that they feel equally strongly about the need to do so.

So not only is there a pledge on behalf of the United Kingdom Government, and accordingly we can be held to that, but there is a recognition, because it is a narrow field and people know one another, of the importance of it personally to those involved. I say that simply to give a sense of how seriously environmental protection is taken; the House need not be worried that it is glossed over in any way.

The standard clauses for exploration contracts granted by the ISA are also covered by published documents, which set out what environmental monitoring is necessary. Those documents are available. We might talk to the Library about making any of these documents available before the Committee, so that Members will see what the ISA says, what we say, and so on. I hope that that will help.

Having made the sponsored application, the applicant makes a presentation to the legal and technical commission of the authority. As I have said, in the case of applications sponsored by the United Kingdom, the Government send representatives to speak during the presentations in the legal and technical commission, to demonstrate not only our support for the applications but the responsibility that we take as a Government for them. I hope that is reassuring. After approval by the legal and technical commission, the applications are forwarded to the council.

We were very pleased that the first application sponsored by the UK was successfully approved by the International Seabed Authority in 2012, and that the contract between the British company and the authority was signed earlier this year. The second application was put to the legal and technical commission this year, although, disappointingly, it was not approved by the commission because of lack of time. We hope, however, that the application will be approved by the commission next year. We are convinced that it is a first-class application.

I would like to pay tribute to the staff of the International Seabed Authority, particularly its Secretary General, Mr Odunton of Ghana, and his deputy, Michael Lodge, who is British. We have found them knowledgeable and helpful, and we have enjoyed a fruitful working relationship with them over many years.

My hon. Friend the Member for South East Cornwall rightly referred to an event in March this year to mark the signing of an exploration contract granted by the International Seabed Authority to a UK-registered company. That licence, for the exploration of polymetallic nodules, is in an area of the mid-Pacific ocean at depths of around 4 km below sea level. The Minister for Universities and Science, my right hon. Friend the Member for Havant (Mr Willetts), who spoke at the event, called the new venture a

“huge vote of confidence in the UK”,

and declared that we have the skills and technology to make it a success. As a number of colleagues have said, we want the United Kingdom to be a world leader in this regard. He talked of how the decision to grant a licence reflected British technological strengths in areas such as marine engineering and marine science, and how it would give British companies and British scientists the opportunity to undertake groundbreaking work in fields such as deep sea biology.

The 1981 Act was sufficient to do the job—to ensure the UK Government had sufficient jurisdiction and control over the UK company in order for it to sponsor its first application in 2012. Now we want to ensure that British companies are able to take up the opportunities available to explore for different mineral types—the point made by the hon. Member for Brent North—namely polymetallic sulphides and cobalt-rich crusts, and we want to ensure that we are fully compliant with UNCLOS.

The Bill is really about the balance between commercial companies’ need to find the resources that the world seeks and environmental protection. It is also about saying, “The United Kingdom is open for business in this sphere.” We can say to any company that seeks the United Kingdom’s sponsorship of an application for polymetallic sulphides or cobalt-rich crusts, “Yes, we can sponsor your application.” But at present, without this Bill, because of the changes in technology, if they were applying for minerals outside the scope of the legislation, we would have to turn such companies away. That is why the change is necessary. The Government simply do not believe that that would be the correct position for our country to be in. At its heart, the Bill is designed to enable the United Kingdom to take advantage of the opportunities that this new, emerging and very exciting technology offers us.

As we have discussed this morning, the Bill is quite a technical measure, with all the substantive amendments to the 1981 Act being set out in a schedule to the Bill. I could say a good deal about each of the amendments, but that might stretch the patience of the House, so I will not go through them in any great detail. We have covered a lot in the interventions and discussions that we have had. The point to make is that the Act is being brought up to date in relation to the sort of minerals that are now available for exploitation and in relation to changes in the law. It deals with some of the technical aspects relating to Scotland and other jurisdictions, but it keeps at its heart the need to balance commercial opportunity with environmental protection, which has already proved to be successful. But none of us is naive, and none of us can forget that there are states that operate differently. Without being absolutely certain that international regulation will follow the sort of intentions that we in this House would have, the Government will not be happy. In our dealings with the ISA, we will look to ensure that that works its way through.

The amendments in the schedule refer to changing definitions of the minerals to be exploited, appropriate dates for corresponding contracts with the ISA, the tightening up of the licences, and ensuring that reciprocal recognition is brought up to date. They provide for important work to be done to arbitrate disputes and deal with the international tribunal for the law of the sea and to ensure that it is relevant in relation to this work. They remove redundant terms and bodies and ensure that the terms used in the Act are up to date.

As we have heard, despite the Bill’s title and the 1981 Act, no mining or exploitation has been conducted in the deep sea by a UK company or any other company. Even with the most optimistic outlook, this is probably five years off for polymetallic nodules and longer for other mineral types.

The International Seabed Authority developed regulations for the exploration of polymetallic nodules some 10 years ago. To date it has issued 13 contracts and is in the process of issuing more. They are all for areas in the Clarion-Clipperton fracture zone in the equatorial north Pacific ocean, except for one in the central Indian basin of the Indian ocean. Exploration regulations for polymetallic sulphides were agreed in the past few years, with the authority issuing contracts to China, Russia, Korea and France, and cobalt-rich crust regulations were only agreed in 2012, since when there have been only a couple of applications.

Of the total of 23 contracts awarded or pending, over half were submitted in the past few years. That gives an indication of how the pace of interest and demand has changed, which is another reason why my hon. Friend the Member for South East Cornwall has proposed this Bill at this stage and why it is important to support it and make progress.

At this year’s annual meeting, the ISA’s council discussed a paper on the process towards development of a regulatory framework for the exploitation of polymetallic nodules. As I have said, so far the activity in relation to deep-sea mining has been confined to exploration, but the time for exploitation—that is, mining—is coming. I know that the secretariat to the authority is acutely aware of the challenges that will be posed by the development of regulations for the exploitation of polymetallic nodules. It has, therefore, sensibly engaged a well-respected team of consultants to look at the issues. I have here a copy of the consultants’ report, which is on the authority’s website. It sets out clearly and carefully the issues with which the authority will have to grapple. It is entitled, “Towards the Development of a Regulatory Framework for Polymetallic Nodule Exploitation in the Area”, and I commend it to the House and to colleagues who have expressed their interest in the affair today.

It is worth reiterating two points that the UK made clear in our statement. First, we emphasised that polymetallic nodule exploitation must be conducted in accordance with the highest environmental standards. Secondly—I believe we were alone in the states that spoke to make this point—we called for full engagement with all stakeholders, including contractors, technology providers and non-governmental organisations, in the development of a regulatory regime. I hope that that is of interest to the House and its needs.

I repeat those points because they are essential and lie at the heart of our approach. It is only by working together to develop a regime that we will be able to strike the right balance between protecting the environment and encouraging commercial enterprises. Stakeholders need to pool their knowledge and expertise, including that in the economics of deep-sea mining, the technology available and the biology of the environment involved, in order to begin to understand the full picture and reach the best solutions. We see environmental NGOs as important contributors in that process. Officials already engage with NGOs at authority meetings. I had a meeting with officials in advance of this Second Reading debate and have promised more consultations in advance of future meetings. We see this as an ongoing collaboration.

The Government believe that, given the advances in technology, a likely increase in future demand for mineral resources and a steady if not increasing cost for those resources, deep sea-bed mining is inevitable. It is a question of when, not if. In other words, deep-sea mining is going to happen and we could not stop it even if we wanted to. The fact that companies have started to take up exploration licences from the ISA when previously they were the domain of research institutes is a sign of a new phase in development. A UK-registered company is one of those that have taken up a licence and it is our clear intention to be at the forefront of this emerging industry. It is important that the UK should be in that position. This is an opportunity for us to ensure that our values, particularly in the protection of the environment, should be taken into account.

We believe that this Bill, modest though it is in some ways, is a crucial stepping stone in ensuring that the United Kingdom can be in the right place to influence developments. We believe that, as a responsible sponsoring and licensing state, we will be able to fulfil our obligations to ensure that the highest environmental standards are adopted and applied by our licensees in the work that they carry out. I can also assure the House that we will make use of our leadership role as a sponsoring state to try to ensure that the best possible practices are adopted when the ISA develops a regulatory regime for mining.

In conclusion, the Government believe that the Bill will signal our support for and readiness to uphold UNCLOS, provide leadership in calling for and upholding the highest possible environmental standards, and ensure that the UK aims to make the most of the opportunities offered by this increasingly important industry. I cannot commend the House enough for the attention it has paid to my hon. Friend the Member for South East Cornwall’s Bill and I cannot commend her enough for proposing it. I look forward to taking it further with the consent of the House, with the intention of maintaining the balance we have all strived to achieve in the past few years.