PARLIAMENTARY DEBATE
Seafarers’ Wages Bill [Lords] - 7 February 2023 (Commons/Commons Chamber)

Debate Detail

Contributions from Sir John Hayes, are highlighted with a yellow border.

Consideration of Bill, as amended in the Public Bill Committee
Brought up, and read the First time.

Mr Richard Holden

The Parliamentary Under-Secretary of State for Transport

I beg to move, That the clause be read a Second time.

14:12:10

Mr Speaker

With this it will be convenient to discuss the following:

New clause 2—Implementation and monitoring—

‘(1) Within six months of this Act being passed, the Secretary of State must publish a report on the implementation of, and monitoring of the effects of, this Act.

(2) The report must include—

(a) an assessment of the impact of this Act on—

(i) roster patterns,

(ii) pensions, and

(iii) wages of seafarers;

(b) a statement as to whether further legislation will be introduced by the Government as a result of the findings of the assessment under paragraph (a);

(c) a strategy for engaging with trade unions for the purposes of monitoring the implementation of this Act, including in reference to conventions of the International Labour Conference;

(d) a strategy for monitoring the establishment of minimum wage corridor agreements with international partners of the United Kingdom, insofar as any such agreement ensures that any non-qualifying seafarer is remunerated for UK work at a rate that is equal to or exceeds the rate that would otherwise be required under this Act;

(e) an assessment of the interaction between this Act and existing international agreements or international maritime law, including reference to any litigation that has arisen as a result of this Act.

(3) The report must be laid before each House of Parliament.’

New clause 4—Directors of companies operating services to which this Act applies: personal liability for non-compliance of operator—

‘(1) A director of a company operating a service to which this Act applies (the “operator”) commits an offence where the operator has committed an offence under—

(a) section 5(1); or

(b) section 6(5)

of this Act.

(2) A person guilty of an offence under subsection (1) is liable—

(a) on conviction on indictment, to a fine, or

(b) on summary conviction, to a fine not exceeding the statutory maximum.

(3) Where a person is guilty of an offence under subsection (1), the court may make a disqualification order against that person if that person is registered as a director of any company registered in the United Kingdom.

(4) The maximum period of disqualification under subsection (3) is 15 years.’

New clause 5—The role of the Maritime and Coastguard Agency—

‘(1) The Secretary of State must prepare a report on the role of the Maritime and Coastguard Agency (MCA) in enforcing the provisions of this Act.

(2) The report in subsection (1) must include assessments of—

(a) the extent to which the MCA has sufficient resources to undertake such enforcement, and

(b) the efficacy of such enforcement.

(3) The Secretary of State must lay this report before both Houses of Parliament before the end of the period of twelve months beginning with the day on which this Act is passed.’

Government amendment 1.

Amendment 30, in clause 1, page 1, line 9, after “Act” insert—

‘“place in the United Kingdom” includes energy installations within the UK Exclusive Economic Zone.’

Amendment 24, in clause 3, page 2, line 5 , leave out “120” and insert “52”

Government amendment 25.

Amendment 31, in clause 4, page 3, line 30, at end insert—

‘(c) pension and other payments to be made that formulate a part of seafarer remuneration in relation to a service to which this Act applies.’

Amendment 32, page 3, line 40, at end insert—

‘(9A) The national minimum wage equivalent must not be adjusted to account for accommodation, food, or other items exempted from being charged to seafarers under international convention.’

Amendment 40, page 3, line 42, leave out from “Kingdom” to end of line and insert

‘, its territorial waters and the UK Continental Shelf.’

This amendment would ensure that the legislation is in line with the existing regulations providing entitlement to the NMW for seafarers working from a UK port to an offshore oil and gas installation on the UK Continental Shelf and returning to a UK port.

Amendment 33, page 3, line 42, leave out “or its territorial waters” and insert

‘, its territorial waters, or within the Renewable Energy Zone as specified by The Renewable Energy Zone (Designation of Area) Order 2004.’

Government amendments 2 to 7.

Government motion to transfer clause 6.

Government amendments 8 to 10.

Government motion to transfer clause 7.

Government amendments 11 to 15.

Amendment 34, in clause 11, page 8, line 9, after “regulations” insert

‘, where the minimum surcharge to be imposed on an operator shall be no less than 300 per cent of the difference between the amount calculated as the national minimum wage equivalence for the operator and the amount in total paid by that operator’

Government amendments 16, 26, 17, 18, 27, 19 and 20.

Amendment 36, in clause 13, page 10, line 15, at end insert—

‘(e) where there is need to provide crew with access to necessary welfare facilities or undertake crew repatriation.’

Government amendment 28.

Amendment 37, in clause 15, page 10, line 30, after “may” insert

‘following consultation with relevant stakeholders’

Government amendment 29.

Amendment 38, in clause 16, page 11, line 11, leave out subsection (3) and insert—

‘(3) A statutory instrument containing (whether alone or with other provision) regulations made by a Minister of the Crown under any of the following provisions may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament—

(a) section 3 (power to request declaration);

(b) section 4 (nature of declaration);

(c) section 7 (imposition of surcharges);

(d) section 9 (refusal of harbour access for failure to pay surcharge).

(3A) Any other statutory instrument containing regulations made by a Minister of the Crown under any provision of this Act is subject to annulment in pursuance of a resolution of either House of Parliament.’

Amendment 41, page 11, line 11, leave out subsection (3) and insert—

‘(3) A statutory instrument containing regulations under this Act may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament.’

Government amendments 21 to 23.

14:13:42

Mr Holden

It is a pleasure to report to the House, to move Government new clause 3, to speak to the other amendments and to be able to listen to the important debate we will have on the Bill’s remaining stages. Over the past few months, the Bill has been subject to scrutiny and debate not only in Committee but through the ongoing debate in this House and in the other place. I am pleased that we are moving forwards together towards seeing this important legislation on the statute book and seafarers seeing the benefit of increased wage protection. I will first introduce the new clause and a number of the amendments introduced by the Government.

The first group—amendments 5, 6, 7, 9, 10 and 23 —relates to the powers to request information from harbour authorities to monitor their compliance with their duties under the Bill. New clause 3 provides the Secretary of State with the power to require harbour authorities to provide information for the purpose of establishing whether, or to what extent, they are complying with their duties under the Bill. In practice, this power will be used by the Maritime and Coastguard Agency. Subsection (2) of the new clause provides an indicative list of the sort of information the MCA might require in order to establish whether a harbour authority is complying with its duties, including information about equivalence declarations and surcharges. It will be an offence for a harbour authority to fail to provide the information required in the manner and within the period specified by the Maritime and Coastguard Agency, to provide false or misleading information, or not to inform the Secretary of State within four weeks if the information becomes false or misleading. The penalty for this offence is an unlimited fine in England and Wales and a fine not exceeding level 5 in Scotland and Northern Ireland.

This new clause is necessary following amendments made in Committee that mean that harbour authorities are now under a duty to request declarations, impose surcharges or refuse access to their ports in the circumstances set out in the Bill. It is a criminal offence for a harbour authority to fail to comply with these duties. The new clause will therefore ensure that the Maritime and Coastguard Agency has the necessary information to carry out its enforcement role and to bring prosecutions if necessary, in line with its powers of enforcement of operators in clause 6.

Government amendments 5 and 23 and subsection (3) of new clause 3 all relate to savings for data protection regulation, making it clear that the Bill is not intended to override any existing data protection obligations. Subsection (3) of new clause 3 provides that a requirement to provide information

“does not require a harbour authority to provide information to the extent that doing so would cause the authority to breach the data protection legislation”.

The data protection is defined by amendment 23 as having

“the same meaning as in the Data Protection Act 2018”—

that is, all relevant UK data protection legislation.

Amendment 5 makes it clear that the data protection saving in clause 6(3) applies in relation to the UK’s data protection legislation as well as to the data production laws of other countries or territories. In new clause 3(3) and clause 6(3), the amendments clarify that in determining whether the provision of information would cause a breach of the data protection laws, the requirement imposed by subsection (1) of the clause is to be taken into account. This is to make it clear that the disclosure of information may be authorised when pursuant to a legal obligation.

It is an offence under clause 6(5) of the Bill for an operator to fail to provide information required to the Secretary of State or, in practice, the Maritime and Coastguard Agency. However, at present clause 6 does not specify the time within which this information is to be provided, as several hon. Members pointed out in Committee. Amendments 6 and 7 will therefore make it explicit that the Maritime and Coastguard Agency can specify the period within which the information must be provided, and that it is an offence for the operator to fail to provide the information within that period and in the manner specified. The same applies for requests for information from harbour authorities under new clause 3. These amendments will provide greater clarity for harbour authorities and the Maritime and Coastguard Agency.

Amendments 9 and 10 are linked to new clause 3 in that they extend MCA enforcement powers in consequence of Government amendments made in Committee to impose duties and corresponding criminal offences on harbour authorities. These amendments will extend the powers in clause 7 for inspectors to board ships or enter premises for the purpose of establishing whether harbour authorities are complying with their duties or to verify information provided under new clause 3. These amendments will allow the MCA properly to enforce the duties on harbour authorities and to bring prosecutions where necessary if the duties are not being complied with.

The next group of Government amendments relate to new offences for false and misleading declarations. As currently drafted, an operator commits an offence under clause 5 in two broad circumstances: first, where it provides an equivalence declaration and the service is operated inconsistently with that declaration at the time that it is provided, or from the beginning of the relevant year if that is later; and secondly, where an operator provides a declaration and subsequently starts to operate the service inconsistently with the declaration and fails to notify the harbour authority of that fact within four weeks.

Clause 5 does not currently cover circumstances where a declaration is provided during or after the relevant year, and the service was operated inconsistently with the declaration for a period of that year in the past, such that the declaration is false or misleading at the time it is provided. This is why I have tabled amendments 2 and 3, which create a new criminal offence where an operator provides a declaration that is false and misleading in so far as it concerns the operation of the service before the declaration was provided.

Amendments 4 and 8 are consequential on this new offence and extend the Secretary of State’s enforcement powers to include establishing whether a declaration is false or misleading. In practice, enforcement will be carried out by the Maritime and Coastguard Agency. Amendment 4 extends the purposes for which the Maritime and Coastguard Agency may require an operator to provide information under clause 6 to include establishing whether an equivalence declaration is false or misleading in so far as it concerns the operation of the service before the declaration was provided.

Amendment 8 extends the power in clause 7 to provide that inspections of ships or premises may be carried out for the same purpose. Related to that, amendments 11 to 14 provide that harbour authorities must impose surcharges on an operator if they have reasonable grounds to believe that an equivalence declaration provided by the operator is false or misleading about the time before the declaration was provided. That mirrors the approach taken when an operator provides a declaration and the harbour authority has reasonable grounds to believe that the service is or was being operated inconsistently with that declaration, ensuring that surcharges are imposed in both circumstances.

Taken together, these amendments strengthen the enforcement of the Bill and will mean that operators that seek to pay their seafarers a rate lower than the national minimum wage equivalent cannot avoid the consequences through such dishonest means.

Lab

14:20:42

Grahame Morris

Easington

I am grateful to the Minister for these amendments, as the issues to which they relate were raised by Opposition Members in Committee and on Second Reading. What is the position on the fines? Does he remember our discussion about whether level 4 fines are enough of a deterrent? A level 5 fine is unlimited and may be a greater deterrent, although the Secretary of State will still have discretion on whether to apply it.

14:21:01

Mr Holden

I was about to address those amendments. After the hon. Gentleman and other hon. Members raised this in Committee, I said that I was looking at it.

Lab

14:21:27

John McDonnell

Hayes and Harlington

I welcome the introduction of a criminal offence, but I wonder who will be prosecuted and held liable in that instance. Will it be a company director? At what level of the decision-making process will an individual be held liable? I would be happy if the Minister secures wisdom and inspiration over the next few minutes.

14:21:37

Mr Holden

I will address that point later in my speech.

On the point raised by the hon. Member for Easington (Grahame Morris), I agreed in Committee to consider raising the maximum penalty for harbour authorities guilty of failing to comply with their duties under the Bill—I think the right hon. Member for Hayes and Harlington (John McDonnell) was also referring to this—from a level 4 fine to an unlimited fine in England and Wales, or a level 5 fine in Scotland and Northern Ireland. On reflection, I decided to do so. That is why the Government tabled amendments 25, 26, 28 and 29 and subsection (6) of new clause 3.

These amendments will bring the penalties into line with those for service operators that commit an offence under the legislation. As hon. Members will remember, we discussed in Committee the possibility of a harbour authority also being an operator, which would create a discrepancy. We know that the reputational impact clearly did not stop P&O Ferries doing what it did, which is why we have this Bill.

To answer the right hon. Member for Hayes and Harlington, the fines will be levied on the company, and they will be unlimited fines, except in Scotland and Northern Ireland, where level 5 fines are limited by legislation—the devolved Administrations in Scotland and Northern Ireland have not yet changed their legislation, so it will be up to them to mirror these changes. This will send a strong message that harbour authorities must comply with their duties under legislation. I thank the noble Lord Tunnicliffe for his interest in the level of fines when the Bill was considered in the other place.

Amendment 1 adds a regulation-making power to clause 1 to allow the Secretary of State to specify matters that must or must not be taken into account in determining whether provision for the carriage of persons or goods between two places by ship on two or more journeys constitutes a single service. Amendments 21 and 22 provide that this power is subject to the affirmative procedure.

The Bill applies to services for the carriage of persons or goods by ship, with or without vehicles, between a place outside the UK and a place inside the UK. The concept of service is not defined in the Bill, but it will be a question of fact whether ships on the same route are providing the same service, which will need to take account of all the circumstances of the particular case.

By adding a power to specify in regulations the factors that must or must not be taken into account in determining what is a service for the purpose of this Bill, we will be able to clarify the intended meaning of “service” if needed, such as if there is an inconsistency in interpretation across or between different harbour authorities and operators. This provision therefore allows the Department to react, if necessary, to how the definition of “service” is interpreted over time. This will ensure consistency in the application of the Bill, and it is therefore necessary for the effective implementation and delivery of policy objectives. Because the measure will be made through the affirmative procedure, hon. Members will be able to provide a degree of scrutiny.

We recognise this is a broad power with potential to adjust the interpretation of “service,” which is the Bill’s central concept. We plan to use the power only to clarify the intended meaning of “service,” if needed, not to alter the services in scope of the Bill. It is intended that the power will be used only if necessary and only in relation to circumstances that may become apparent once the Bill has been enacted. That being said, we accept that a high level of scrutiny for this power is appropriate. As such, the power will be subject to the affirmative procedure.

Amendment 15 requires the tariff of surcharges to be specified in regulations made by the Secretary of State, as opposed to being specified by the harbour authorities. In other words, the amendment will switch the duty for setting the surcharge tariff from the harbour authorities to the Secretary of State. I thank the noble Baroness Scott of Needham Market for raising the issue in the other place, and the hon. Member for Wythenshawe and Sale East (Mike Kane) tabled a similar amendment that sought to reduce the role of harbour authorities in the compliance process by taking away their duty to set the surcharge rate, giving that role to the Secretary of State.

The surcharge is an important mechanism to deter operators from paying below the national minimum wage equivalent. We still consider that harbour authorities are reasonably placed to set the tariff of surcharges, given their proximity to services, but we have heard the concerns raised by the ports industry and, as promised, went away after Committee to consider it further. Having done so, we tabled amendment 15 to switch the duty for setting the surcharge tariff under the Bill from harbour authorities to the Secretary of State. This will not fundamentally change the compliance process, as ports will still have a role in imposing the surcharge, but they will not set the rate. I hope this alleviates the concerns that some Members expressed in Committee about the role of harbour authorities.

Amendments 16 and 18 to 20 are consequential on amendment 15. Amendment 16 removes the requirement for harbour authorities to publish the tariff of surcharges, as this will now be set in regulations. Amendments 18 to 20 make consequential changes to clause 12 to remove the ability to object to a tariff of surcharges specified by a harbour authority.

Amendment 17 confers a duty on the Secretary of State to make regulations specifying a time limit on objecting to a surcharge under clause 12. I promised in Committee to consider this further, in response to an amendment tabled by the hon. Members for Paisley and Renfrewshire North (Gavin Newlands) and for Glasgow East (David Linden). I had been considering it before Committee because there was a concern that things could drag on and, having considered it, I agree that a time limit on objections will provide greater certainty for harbour authorities by preventing objections from being raised long after a surcharge is imposed. We intend for the draft regulations to be subject to public consultation, and we will work with stakeholders to determine a reasonable length of time in which objections will be required to be made following the imposition of a surcharge.

Amendment 17 states that surcharges may be applied only for the purpose of providing shore-based welfare facilities for seafarers. The objective of this amendment is to ensure that funds collected from surcharges are invested in the welfare of seafarers and cannot be used for the functioning of harbour authorities. A similar amendment was tabled in Committee by the hon. Members for Glasgow East and for Paisley and Renfrewshire North, and it was supported by other Opposition Members, who expressed concern about a conflict of interest where a harbour authority and an operator are owned by a connected company, thereby weakening the surcharge’s financial disincentive. I thank the noble Baroness Scott of Needham Market for raising this conflict of interest in the other place. Although we do not think it is likely in practice that such an operator would seek to avoid paying the national minimum wage equivalent, and would instead continue to pay the surcharge to its connected company, this amendment reduces that theoretical risk. It is also in line with the Bill’s overall intention of improving the welfare of seafarers.

We understand that ports may object to amendment 17, as they might have used surcharge funds to cover the costs of administering the Bill. However, we do not expect surcharges to be paid routinely, so harbour authorities could never have relied on the surcharge to cover the costs of administering the Bill—they are minimal costs that harbour authorities should be able to cover through their harbour duties. This Bill leaves it open as to how the money can be applied to shore-based welfare facilities and so harbour authorities will have some flexibility on that. I hope that hon. Members will see that in tabling these amendments the Government have listened to the concern from across the House and from stakeholders, and that the Bill is better for it.

I will now turn to the amendments tabled by hon. Members of this House. Amendment 24 would require harbour authorities to request equivalence declarations from operators of services that call at their harbour on at least 52 occasions a year, instead of 120. That would mean that services calling at UK ports once a week, on average, would be brought into the scope of the Bill. The measures that may be taken under the Bill can be applied only to a narrow subset of operators with a close connection to the UK: those on a regular scheduled service determined by clear, objective criteria. This represents a focused and proportionate means to address a specific issue and avoids any wider impact on the diversity of shipping that makes use of UK ports. The figure of 120 has been arrived at following thorough consultation and bilateral discussions with industry and others.

14:29:59

Christine Jardine

Edinburgh West

I recognise that this measure was based on data carefully collected. However, does the Minister not accept that the figure of once a week would bring into scope an awful lot of shipping with seafarers who do have a close connection to the UK, and that once a week might be a fairer figure?

14:29:59

Mr Holden

I understand what the hon. Lady is saying and I will address that point directly in a moment, after I have gone through the main points of why we are pushing back on this suggestion. The rationale for the high-frequency criterion is to ensure that seafarers affected by the policy are only those with close ties to the UK by virtue of their working on services that regularly call in UK ports. That covers the overwhelming majority of passenger ferries. We have assessed this using Department for Transport data, which has also been backed up by the Chamber of Shipping’s written evidence to the Public Bill Committee. Crucially, this focuses the Bill on the short-sea services, clearly justifying the seafarers’ connections to the UK and therefore a UK-equivalent level of pay protection. Reducing the frequency with which services must call at UK ports before coming into the scope of the Bill’s requirements to include weekly services would dilute the concentration of the Bill in protecting seafarers with the closest ties. It would then bring into scope some deep-sea container services which we do not feel can legitimately be said to have close ties to the UK. Services that might visit many ports in a foreign country, perhaps coming to the UK once a week, would also be included, which gives rise to the question of whether we would be legislating for another country.

Furthermore, the national minimum wage equivalence will apply only in UK waters and therefore would extend to a cargo service dropping off once a week for a matter of hours, with marginal if any impact. The proposal therefore has multiple downsides, and I hope the hon. Lady can understand why we are looking at it in that sphere.

SNP

14:29:59

Gavin Newlands

Paisley and Renfrewshire North

I hear what the Minister says and understand his point about which services may be collected under the proposal, but surely there is a soft spot between 52 and 120 that we can all agree on?

14:29:59

Mr Holden

Well, 120 is what has been discussed broadly in the past few weeks. Opposition Members have tabled no amendment for any proposal except 52 or 120. That is why we are discussing 120. A once-a-week service could be in the UK’s waters for a matter of hours every week, when the minimum wage equivalence would apply, and it may be calling at multiple foreign ports before it gets here. Obviously, questions of international maritime law start to arise in those circumstances, as do our relationships with other countries, which are looking at this and at where these ships may operate from.

14:29:59

Grahame Morris

We have to agree to disagree on this point. The National Union of Rail, Maritime and Transport Workers has estimated that the 2020 legal extension of the national minimum wage equivalent entitlement to all seafarers on domestic routes and on routes from UK ports to offshore oil and gas installations, which are not included in the scope of the Bill, would benefit a maximum of 13,000 seafarers—I refer to ratings grades—regardless of the number of port calls. So the issue of port calls is fundamental to whether this Bill will be fit for purpose—in other words, whether it will meet the Government’s basic requirement to protect UK seafarers on these short sea routes.

14:29:59

Mr Holden

I will come later to the hon. Gentleman’s point about offshore workers in the energy sector. If the proposal were 52 weeks, we would be including services that were in UK waters for only a matter of a few hours a week. We think that would be a disproportionate measure and it would not address what we are trying to address, which is short-service ferry operations. They are the major point of concern. If we include other services, we move swiftly into international maritime law.

SNP

14:29:59

David Linden

Glasgow East

My understanding was that 52 weeks was the original threshold in the Government’s proposals and that that was changed after consultation with industry. The trade unions supported 52 weeks. As that was the Government’s initial proposition and only after the intervention of the British Ports Association did they chose to ignore the trade unions, can the Minister clarify why that was? If there was compelling evidence to make that change, will he place it in the Library of the House?

14:29:59

Mr Holden

My understanding is that the initial consultation was on that broader thing, but the legislation that was introduced was always based on a figure of 120, because after that broad consultation we looked at various issues, including where an operator, perhaps from Holland, visits several European ports and then pops into the UK once a week. The minimum wage equivalence being introduced for those operators would be very minimal and would affect a small number of people. Obviously, where someone was based in Holland, visited several European ports and then popped into the UK occasionally, we would be bringing in real questions of international jurisdiction, particularly under maritime law, as to where those services were being operated from.

14:29:59

John McDonnell

I do not think that just popping in every two or three weeks is just popping in. I have been at this for a while and international law is always thrown against it. Will the Minister publish any legal opinion that he has on that matter, so that we could examine it, across the House, to ensure that it is true?

14:29:59

Mr Holden

I will write to the right hon. Gentleman about that to see whether we can publish anything further. I just say that a full consultation took place, and the details of it have been fully in the public domain. We have arrived at this position having considered all the implications of the proposal. On a major number of issues the Government have moved significantly in this area. I have listened to Members from across the House and in the other place to address their concerns. However, on this specific issue the scope would be widened to operators that really are not UK operators; they are from other countries and would just be popping into UK ports. That would have major international implications, as I am sure he can understand.

14:37:59

Christine Jardine

rose—

Mr Holden

I will take one final intervention.

14:29:59

Christine Jardine

I appreciate that the Minister is giving up a lot of time on this. However, would most people listening to this debate not feel that vising a port once a week is a regular, substantial amount of presence, and that we would be missing out a substantial number of people?

Mr Holden

I think the hon. Lady is incorrect on this point. We are talking about someone based overseas who visits a UK port once a week for a matter of hours and who may be operating in the territorial waters of another country for the overwhelming majority of their working time. This would be similar to someone employed under a British lorry driver’s licence going over to do deliveries in another country as well. There is this idea that we would suddenly change things for those few hours that people were perhaps at a UK port, but that would be inconsistent with our obligations and it raises real issues associated with our interactions with other port operators, particularly across the North sea, and with our friends and allies in Europe, who are looking at similar legislation. We have been working on that with our European partners. We are already in conversations with the French on this issue and on others. The UK is leading the way on legislation in this area of regular services, but we have to do it in such a way that it also fits with international maritime law. We also need to ensure that we are on the same page as our friends and partners across the continent.

Con

Lia Nici

Great Grimsby

To clarify something that my hon. Friend said earlier, is the point of the measure not to avoid a situation where, as we saw with P&O Ferries, a company is effectively making a choice whether to employ British people working in British waters on the acceptable living minimum wage, or to make wholesale redundancies so that it can bring in low-paid workers, and quite often low-paid foreign workers?

14:40:59

Mr Holden

My hon. Friend makes an important point. That is the crux of this legislation. We are trying to address the operators who regularly access UK ports on those short straits routes. What we are not trying to do is pass legislation for people who are perhaps in UK waters for a matter of hours a week, the benefit of which is relatively minimal anyway, because they are in international waters, or in the waters of a foreign country, for the majority of the time. The impact of that would be seen as relatively negligible.

Let me move on from that point. I think I have explained very clearly the UK Government’s position. The implications of the extension to once a week for port calls would place a huge burden, the effects and benefits of which are difficult to ascertain, and appear to be incredibly minimal.

Clearly, the Bill focuses on the short sea services, justifying the seafarers’ connection to the UK and therefore a UK equivalent level of pay protection. To reduce the frequency that services must call at UK ports before coming into scope of the Bill’s requirements to include weekly services would dilute the concentration of the Bill in protecting those seafarers. In any event, the time in our waters spent by seafarers who call only weekly would be so short that it would have very little effect, while hugely widening the scope of the Bill to container services, which may have very little connection to the UK.

New clause 2 would ensure that the Government produce a report on implementation and monitoring within six months of the Bill being passed. The same new clause was introduced in Committee and I am afraid that the Government’s position has not changed. Many of the areas that such a report would cover are out of scope of the narrow focus of the Bill. We have acted quickly and decisively with the Bill to prevent operators of regular services to the UK being able to replace seafarers with those being paid less than an equivalent of the national minimum wage. Furthermore, it would be impossible to measure due to any indirect impact. Six months from a Bill becoming law is far too soon for a report to be of any use. We would still be in the process of developing secondary legislation in order to bring the Bill into full force.

In Committee, we discussed each provision of the new clause in detail, and Baroness Vere also discussed the provisions of a similar amendment at length in the other place. The points that I made in Committee are unchanged, so I will not repeat them, but I will provide an update to the House on various aspects that the report would cover.

Subsections 2 (a) and (b) request the reporting of the impact of the Act on roster patterns, pay, pensions and future plans to legislate in these areas. We do not have plans to legislate more than is necessary, but that does not mean that we are not taking action on areas beyond the matter of minimum pay, which we all know is not the only aspect of seafarers’ welfare that requires attention. As part of the seafarers’ protection nine-point plan, we will launch a new seafarers charter to improve the long-term employment and welfare conditions of seafarers. It includes a wide range of employment protections that is currently covered in the Bill. The Government are committed to delivering a voluntary seafarers charter in the near future. They will act legislatively only where it is proven that it is appropriate to do so. The impact of the charter and the need to provide a legislative basis will be continuously reviewed, and it is not necessary or desirable to constrain ourselves to committing to any action on a strategy on these timescales. The charter will be published very soon. We are working closely with the French Government, who are also developing their own version of the seafarers charter. We are commissioning independent research into roster patterns to ensure that we have a strong evidence base to support policy on this subject. The French Government are also doing their own research, and we are liaising closely with them to share our learning and further build a robust evidence base in this important area.

On subsection 2(d), with regards to a strategy for monitoring the establishment of minimum wage corridors, the Government appreciate the interest in this area and we are working hard to seek agreement on how the UK and our near European neighbours can collaborate on the international stage to improve seafarer welfare. As part of that, we are exploring the creation of minimum wage-equivalent corridors.

I am pleased to say that the French Government deposited a Bill in their National Assembly on Wednesday 1 February. Their Bill aims to ensure that seafarers working on certain cross-channel ferry services between the UK and France will also benefit from pay protections while in specific parts of French territorial waters. We will continue to work together on our respective pieces of legislation to ensure that we maximise the benefit to seafarers. In addition to our work with France, we have begun our engagement with the Crown dependencies.

I hope that this update reassures the House that we will take action in other areas of seafarer welfare beyond wages, but it remains inappropriate and unnecessary to commit to reporting on these areas in the Bill at this stage.

Grahame Morris

I am grateful to the Minister for giving way. I wish him every success in his bilateral negotiations with the French Government and other seafaring nations. Let me turn to the point made about the litmus test of the success of this Bill. Without placing in the Bill the seafarers charter, which addresses not just minimum wage equivalence but roster patterns and all the other things that allowed rogue employers such as P&O Ferries and Irish Ferries to commit the terrible action that took place almost a year ago, would this Bill prevent such action? I am afraid that the answer is no. It fails the litmus test.

14:46:17

Mr Holden

I do not agree with the hon. Gentleman; I do not think that the Bill fails the litmus test at all. It is clear that what we are trying to do is protect seafarers with major connections to the UK, and that is exactly what the Bill does.

On the personal liability of directors, the existing criminal offences in the Bill will have serious commercial and reputational impacts, particularly now that we have included unlimited fines, so I do not think that the new clause is necessary. Plus, the Insolvency Service is currently undertaking a civil investigation into the P&O situation, which shows that these things can be addressed, as set out in the Company Directors Disqualification Act 1986. I request that the new clause be withdrawn.

On the role of the Maritime and Coastguard Agency, I would like to assure the House that new clause 5 is unnecessary. The Bill does not refer to the MCA by name. That is because it is an executive agency of the Department for Transport and will be covered by the legislation.

In relation to amendment 30, we seek to make energy installations within the UK exclusive economic zone a

“place in the United Kingdom”

for the purposes of the Bill. The key point here is that we understand the concern in this space. Offshore wind farms and the renewable sector are critical to meeting our targets. The Department for Business, Energy and Industrial Strategy regularly reviews the national minimum wage legislation to make sure that it is fit for purpose in the current situation. We hope that that will be covered in that.

Similarly, turning to amendments 31 and 32, we hope that pension entitlements and deductions for food and accommodation will be covered in the seafarers charter, which will be brought forward shortly. Although we support the intention of the amendments, it is right that the detail, particularly on food and accommodation, is set out in secondary legislation, which is where we intended it to be, in order that we get it right for this complex matter. We will hold a public consultation on the draft regulations before the Bill receives Royal Assent.

I believe that I covered the refusal of access exceptions in amendments 36 and 37 extensively in Committee, which made it very clear that we are in a very sensible place on both those issues.

I thank hon. Members for their contributions to this debate. I hope that it is clear from my responses that I have been open to amendments and that the amendments tabled by the Government have also made that clear. I understand that some Members would have liked us to have gone further, but the scope of the Bill has been intentionally tightly drawn to target action on the specific issue of wages for seafarers with close ties to the UK. We introduced this Bill at great pace following the P&O scandal, and it is by keeping the Bill tightly focused that we have been able to take such prompt legislative action. The Government have, however, still been progressing their nine-point plan for seafarers’ protection, and I hope that Members will welcome the progress that we have made, particularly in our co-operation with the French Government on these issues.

The compliance and enforcement mechanisms of the Bill have been carefully designed, and I hope that hon. Members will note the improvements that have been made both on Report and in Committee, which include suggestions from them. The compliance process is a carefully drawn balance between harbour authorities and the MCA on behalf of the Secretary of State. We have been engaging actively with ports and stakeholders and will continue to do so as we develop secondary legislation. We are confident that the combination of surcharges, refusal of access and criminal offences will ensure that operators pay seafarers on services in the scope of the Bill at least the national minimum wage equivalent. I am pleased that the Bill has reached this stage in its passage and look forward to seeing it on the statute book.

Lab

14:51:55

Mike Kane

Wythenshawe and Sale East

I rise to speak to new clause 2, which stands in my name and those of my hon. Friends. The new clause would ensure that the Bill contains sufficient checks and balances so that it does what it is intended it does. We support the premise of the Bill and have suggested amendments to strengthen it. We do not want a toothless Bill that is wide open to abuse by bad bosses. The Bill attempts to address the problems of seafarer welfare and is intended to cover services with close ties to the UK that make regular port-to-port international voyages and arrive on our shores throughout the year.

The Bill is not merely about pay; it is also about conditions, pensions and roster patterns. It is the first piece of primary legislation on this subject since the Merchant Shipping Act 1995. Its scope must be broadened and protections put into the Bill. The easiest way to measure the efficacy of the Bill is to require the Government to report on the additional conditions, specifically those relating to the seafarers welfare charter. Regrettably, that charter, which is the Government’s preferred option for setting minimum conditions for rostering, pensions and other aspects of seafarer employment, has been voluntary and progress has stalled. The Minister said that he is co-operating with the French, which is good to hear, but as my hon. Friend the Member for Easington (Grahame Morris) said, the Bill clearly fails the litmus test. We have to move on this issue: the Bill is toothless without the charter, and the Minister should come back to the Dispatch Box and say that he will move on it, or at least give some sort of guarantee of when the charter will come into force.

14:59:22

Grahame Morris

I agree with my hon. Friend, who makes a powerful point. It is not that we are not giving the Minister credit for having moved some way; it is just that this Bill presents an ideal opportunity. It is like having a penalty awarded and then double-tapping the ball, so the referee disallows the goal. We have a great opportunity to move ahead of the French and provide the requisite protections for our seafarers. Has my hon. Friend seen a published version of the charter? I know there have been various iterations. I understand that the RMT has asked to see the latest version. The Minister lays such great store by this voluntary agreement, which we have not even seen yet—at least, I have not seen it.

14:53:29

Mike Kane

No, I have not seen any sign of the charter. I would have thought Conservative Members would want to get one over on the French. As an avid Manchester City fan, I might have to dust down my A to Z in future to find out where I am going, but I have seen plenty of those types of penalty kicks in the past.

These legislation matters, because it is the only way to end the exploitative race to the bottom that many companies depend on. P&O Ferries cut its pay bill by up to 50%, but the majority of the savings will be from the imposition of new rostering periods of up to 17 weeks for crew who are earning less than half the minimum wage. It is vital that the Government consult the unions and that unions are able to feed into the monitoring of the legislation in line with international labour conventions. We saw P&O casually disregard both employment laws and union consultation when it behaved as it did in March 2022. That must not happen again. Bad bosses should know that the Government value the role of trade unions and seek to work with them—not against them—to protect the rights of workers.

New clause 2 would also seek to establish a way of monitoring minimum wage corridor agreements to ensure that any non-qualifying seafarer is paid in accordance with a rate that is equal to that rate. We have a proud maritime tradition in this country and the horror reflected by this House, which was united in its condemnation of P&O, must not be forgotten. We know low-cost carriers have a model based on exploitation and poverty pay, and we cannot let that business model prevail.

I come now to new clause 4, tabled by the hon. Member for Paisley and Renfrewshire North (Gavin Newlands). Labour supports the Bill on the whole but we still find it lacking and insufficiently robust. I am grateful to the Minister for the concessions he has made, as I will point out later in my speech, but without new clause 4 accountability in the Bill is at stake. What provision is there if businesses are found to have failed the test? Is it not right that those responsible should be held to account?

Almost a year to the day since that scandal was inflicted upon almost 800 seafarers, P&O has yet to be sanctioned by this Government. They gave P&O millions of pounds of taxpayers’ money during the pandemic, and in return P&O proceeded effectively to stick two fingers up at the Government, its workers, the unions and our employment laws. There was plenty of wailing and gnashing of teeth from Government Members, but no action. Here we are 11 months later: Peter Hebblethwaite has been promoted into another directorship in the company, and the promised criminal prosecution has not materialised. Surely the Insolvency Service will bring a prosecution? No, and despite asking questions, my colleagues and I across the House have yet to hear a clear answer as to why a prosecution is not in the public interest.

We support new clause 4 because, to recap, at 7 am on 17 March 2022, notices appeared in mess rooms on nine P&O ships telling crew to expect an announcement regarding the future viability of their jobs. Three and a half hours later, 786 UK seafarers were told via a pre-recorded Zoom call that they were being made redundant, without a thought to employment law and with immediate effect. They were then escorted off the ships by handcuff-trained, balaclava-wearing private security guards. On the quaysides in Dover, Hull, Liverpool, Larne and Cairnryan, coaches were arriving, carrying agency crew. Peter Hebblethwaite oversaw this—it happened on his watch—and then bragged in this House to a Select Committee that he would do it again. It is for that reason that we seek to make directors of these companies—these bad bosses—personally responsible through the new clause, which should be accepted. I am grateful, however, that the Minister has moved on having unlimited fines.

Amendment 24 would reduce the number of calls a vessel may make in a 12-month period from 120 to 52. The amendment would therefore significantly increase the number of vessels, and thus the number of seafarers, in scope of the protections of this Bill. The Government’s stated aim in the Bill is to improve pay and protections for seafarers working on services that have a close link to the United Kingdom. The wooliness of the wording a “close link” should be expanded on and tightened up, and that is what amendment 24 would do by reducing the number of visits from 120 per year to one a week, which by any and every measure is a regular visit and a close link.

The Minister said that there has been full consultation on this matter, but it is like the old saying, “You can have a car of any colour you want, so long as it’s black.” The Government have not moved on this issue one iota. If I were to visit a restaurant weekly, I would be a regular, with a close link. I play football once a week, which not only makes me the second-best midfielder playing out of my constituency—the honour of being the best goes to Jill Scott MBE, who owns the BOXX2BOXX café in my patch—but gives me a close link to that team. Why are the Government so keen to undermine their own Bill by implying that doing something once a week is not sufficient to be seen as having a close link?

Missing from the Bill’s impact assessment was an estimate of the total number of seafarers who would be covered if the Bill applied to operators of services that called at a UK port 52 times a year, compared with 120 times a year. When the Bill was before the Lords, the Minister stated that 90% of passenger-carrying ferries would be covered by 120 calls per year, but only 70% of freight ferries. The 120 calls threshold is too high and does not match the Government’s own ambitions for improving seafarer welfare through the Bill and the wider nine-point plan in response to P&O Ferries’ disgraceful actions.
Lowering the minimum threshold for port calls in the UK would also make it more difficult to avoid the legislation by port-hopping, where a vessel chooses to use a neighbouring port to evade the legislation. If the qualifying number of calls for a service at any UK port is 52 per year, it will be easier to enforce and will offer protections to the 72,000-plus non-UK resident ratings deemed to be working in the UK shipping industry, according to the Department for Transport’s own statistics. With this amendment, we seek to close the loopholes that we know can and will be exploited—QED P&O Ferries, and P&O is not alone.

Con

Robert Courts

Witney

I entirely agree with everything the hon. Gentleman is trying to do to increase seafarers’ rights and raise standards. Does he accept that the maritime sector is by its nature complicated, interlinked and international? We ought to be addressing the specific instances that occurred here, because it is technically an international voyage through the short straits, while doing the wider international work in slower time, crucially through the International Maritime Organisation, rather than seeing the unintended consequences that there might be if the Bill were roughly drafted.

15:06:41

Mike Kane

I thank the hon. Gentleman, the former Minister, for all his work in this area. I know that he was extraordinarily committed and was as upset as everyone else in this House—he put in a hard stint as Minister for aviation and maritime. He is right that the sector is complicated, interlinked and international, but that should not stop us doing the right thing. If seafarers are here, they are here. That is why we are pushing for 52 port calls, and we genuinely believe that that is the way to strengthen this legislation, but I thank him for his intervention.

Turning to amendments 39 and 49 that appear in my name and those of my colleagues, it is vital that the terms and conditions collectively bargained for are upheld. There are currently seafarers who are paid more than the equivalent of the national minimum wage, and we would not expect those in receipt of this pay to enter a race to the bottom. Good employers, of which there are some in the sector, are already paying above the UK national minimum wage, and we seek to ensure that pay and conditions for their workers are protected, not dissembled or undermined by provisions contained within the Bill. In addition to maintaining the Bill and the conditions of individual seafarers, these amendments would reassure other countries, such as France, Belgium, and Ireland, with which we are seeking to make bilateral agreements, that we are not undermining them, which would make negotiations easier.

Amendment 40 is designed to shore up previous provisions under regulations, which extended the entitlement to be paid above the national minimum wage to those working in the offshore gas and oil sector bound by the UK continental shelf, which extends 200 miles from the coastline of the UK. This amendment equalises the basic rights of seafarers in the UK offshore energy sector, which we know will be a growth industry of the future. The Government and the offshore wind industry cannot rely on the good will of individual developers to commit to voluntary schemes such as the real living wage.

Failing to support this amendment would highlight not one, but two anomalies within the Bill. First, any seafarer who works out of a UK port to an offshore oil or gas installation and then returns to the UK port will not be entitled to the protections offered by the Bill. As we move towards a just transition and increased reliance on offshore wind, we must ensure that those who work in the energy sector are protected. We must future-proof future industries—it makes no sense to do that retrospectively.

Secondly, any seafarer working from a UK port to an installation on the UK continental shelf and returning to a UK port is already entitled to protection of the national minimum wage, regardless of the flag of the vessel or their nationality. That is entirely as it should be. The Government must act as soon as possible to correct the lack of this protection for all seafarers, regardless of nationality or flag of vessel, working in the UK exclusive economic zone. Let us get it right first time for current offshore oil and gas workers and for future workers in offshore sectors that we know will become increasingly important as we head towards cleaner, greener energy. The exclusion of offshore energy workers from the legislation seems short-sighted.

Importantly, amendment 41 would enable the House to consider and approve regulations that may be made under the powers of the Bill; whether that is opening regulations up to further scrutiny in relation to the definition of work in the UK, regulations related to accommodation charges levied upon them, which could lead to earnings falling below the national minimum wage, or regulations related to surcharges, all should be brought before the House so it can affirm them. It is National Apprenticeship Week. We need to build on the work the Maritime Skills Commission is doing on ratings and cadet training to ensure growth in decent seafarer jobs in this country. Wider employment protections and fair pay agreements are part of that future.

I am grateful, as I said, to the Minister for moving on the harbour surcharges and for clarifying that the surcharges will be used for seafarer welfare. That is really welcome. Ports and seafarers all around the country will be affected by the Bill, so it is vital that the Bill is right. We have worked hard to ensure that the concerns of seafarers are heard, as voiced by their unions, the RMT and Nautilus, who I thank for their energy and expertise on this Bill. We need this Bill to be as robust as possible, and have sought to amend it where possible to ensure that. I thank the staff of the House and Members from across the Chamber for all their hard work on the Bill.

15:08:10

Gavin Newlands

I start, rather unusually, by thanking the Minister, in the same vein as the hon. Member for Wythenshawe and Sale East (Mike Kane), for accepting some of the changes that both we and the Labour party suggested during Committee stage—notably, on setting a national rather than a harbour-specific tariff, setting a deadline for objections to the level of fines to be levied and ensuring that the levy is used for seafarer welfare.

We will obviously not vote against the Bill. It is a better Bill than when it entered Committee, but it still falls short in a number of areas. I understand that the Government by and large, as is the way with most Bills, want to keep the focus of the Bill as narrow as possible and the Opposition tend to want to widen the focus of the Bill to ensure that as many people as possible are protected by it, and to tighten up provisions already set out in the Bill for the very same reason.

The Government’s nine-point plan was set out a number of months ago but, if it is not adrift and approaching the rocks, it is struggling under very low power indeed. But the Minister need not worry; we are here to strengthen the Bill. In that vein, I will speak to amendments 30 to 33 and 36 to 38, and new clauses 4 and 5. I also fully support the amendments and new clauses tabled by those on the Labour Front Bench.

In fact, I will start with Labour new clause 2, which deals with issues relating to the seafarers charter, including roster patterns. Before I do so, I have to ask: where is the seafarers charter? Everyone was hoping and expecting to see it before Report. It is entirely suboptimal, to say the least, that the passage of the Bill will conclude without us having had sight of the charter. I certainly hope the Minister agrees that that is not the position that he would have wanted to be in at the start of the process.

15:10:57

Grahame Morris

That is an important point. The Government are laying so much store by voluntary agreement in the application of the seafarers welfare charter, or the seafarers charter—it has had various names during its transition. The Minister said that there had been consultation and that further consultation was going on, including with the UK Chamber of Shipping. My understanding is that that includes Seatruck and Condor Ferries. They are long-term bad bosses and abusers of seafarer rights, so I hope that they will not have input into the Bill, which could further undermine its provisions.

15:12:28

Gavin Newlands

I thank my Transport Committee colleague. I could not agree more. I will very shortly cover the fact that the agreement is voluntary and that we do not even know what is in it, yet here we are, concluding the remaining stages of the Bill.

As was mentioned on Second Reading and in Committee, roster patterns are every bit as important as the wage issues addressed by the Bill, because a tired and overworked crew is a dangerous crew at sea. We know that crew at P&O Ferries are sometimes being asked to work for 17 weeks straight. That is not just an issue of fairness at work; it is an issue of human and environmental safety. We know the reasons behind the Herald of Free Enterprise tragedy. If seafarers around our shores are working 17 weeks straight with no oversight and no action, sooner or later we will sadly be talking about another tragedy—one that is entirely preventable.

Similarly, on wages and pensions, we know what many seafarers are expected to put up with. The key point of the Bill is to prevent wages from falling below the national minimum wage equivalent, but we hope that will have the additional impact of improving wages and conditions across the board in the industry. As I asked the Minister in Committee:

“What good is a voluntary charter when we have operators such as P&O Ferries, which was content not only to break the law”––[Official Report, Seafarers’ Wages Public Bill Committee, 17 January 2023; c. 69.]

but said that it would do so again? Putting those elements of the charter—which sadly does not exist—on the face of the Bill would at least give the Government firm legal ground in assessing how the legislation has benefited the industry and its employees.

Again, new clause 2 calls for and commits the Government to nothing more than a report from the Secretary of State on the main issues dealt with by the charter. If the Government are serious about a real seafarers charter developed in partnership with trade unions and aimed at protecting exploited workers, they have nothing to fear from accepting the new clause.

While I am on the subject, given the lack of any contrition whatever from P&O Ferries, is it not time that its royal charter was revoked? DP World should derive no benefit from that charter, which it inherited when it bought P&O Ferries. One cannot talk about P&O Ferries without talking about Mr Hebblethwaite, a man who has so far escaped entirely scot-free despite admitting that he broke the law and would do so again. The Government and the Insolvency Service have been signally unable to bring him and/or any other P&O Ferries or DP World executives to account for their actions. New clause 4, which was tabled my hon. Friend the Member for Glasgow East (David Linden) , whose thunder I wish not to steal, would ensure that people such as Hebblethwaite would be liable for their crimes by introducing an offence that is punishable by disqualification as a director.

New clause 5 was tabled following contact from a number of concerned industry representatives that are unclear about the Maritime and Coastguard Agency’s enforcement of harbour authorities. In Committee, the Minister spoke about how clauses 4 and 5 allow the Secretary of State—via the MCA—to request information to ensure compliance. However, no passage in the Bill clarifies the role of the MCA in enforcing harbour authorities to comply. In essence, I would like to hear more from the Minister about the role of the MCA in the enforcement of national minimum wage declarations.

As I have said, we seek to widen the scope of the Bill to ensure that all those who should be protected are protected. Amendments 30 and 33, and Labour amendment 40, which the hon. Member for Wythenshawe and Sale East spoke to, were tabled to ensure that those working in the renewables sector are afforded similar protections to those in the oil and gas sectors and on the regular ferry services that the Minister mentioned. The Minister’s answer in Committee was unsatisfactory in my view and, I am sure, for those who work in the sector. If he will not accept the amendments, will he set out his plans to ensure that those workers do not end up an anomaly?

On Labour’s amendment 24, we tabled the same amendment in Committee, so it clearly has our full support. On Second Reading, the Secretary of State said:
Why are we happy with a majority? Why not all services? This is a national minimum wage we are talking about here, not some sort of maximum wage, so we should be ensuring that all those who should be getting it are getting it.
Some routes would require only slight amendments to their timetable to allow them to escape paying the minimum wage equivalent. We have mentioned the Pride of Hull a number of times throughout the passage of the Bill. I have read the evidence from the Chamber of Shipping and the Minister’s letter, and I listened to the Minister’s opening remarks today, but I remain to be convinced that “120 occasions” is the required number. I suspect—cynic that I am—that the Minister will not accept amendment 24, but will he commit to keeping the matter under review and to coming back to the House at some point after the Bill’s implementation to ensure that he was correct to put “120 occasions” in the Bill? I realise now that I should have tabled a new clause asking for such a report, but sadly, I will have to rely on the Minister’s good will.
Amendments 31 and 32 would ensure that the only remuneration that can be taken into account when calculating a seafarer’s national minimum wage equivalence is just that: the wage itself. As it stands, no clauses provide absolute clarity and assurance that national minimum wage equivalence will be calculated in a way that puts seafarers’ wages in line with the minimum wage paid to onshore workers. We do not want to see operators getting round the legislation by bringing other areas into the calculation to allow them to pay less than national minimum wage under the cover of deductions and pension contributions.
A minimum wage should be just that—a wage—and not something from which charges for basic human necessities can be deducted when an employer sees fit. If an employee has an agreement with their employer to make deductions for things such as accommodation and food, it should be between those two parties. Amendment 32 would ensure that the employer cannot use what may be a useful set-up for a seafarer to dodge its responsibilities to remunerate that seafarer properly and legally, and meet the requirements of the legislation.
As it stands, the Bill contains no minimum level of surcharge to be levied on operators found in violation of the law. If the surcharge is set at such a rate as to be lower than the difference between compliance and non-compliance, there is nothing to stop rogue operators from paying below the national minimum wage equivalent, making a declaration to that effect, paying any surcharge and sailing away with relatively full pockets—exactly as P&O Ferries did last year.
Our amendment 34 would remedy that by ensuring the minimum surcharge is 300% higher than the difference between the national minimum wage equivalence calculated and the amount paid by the operator. The amendment would make clear the cost that operators will face if they are caught flouting the law. It is deliberately punitive to act as a deterrent to rogue operators. Those at P&O Ferries clearly took the view that the chances of facing any real penalty for their actions were slim, and they were right. Let us not let anyone else make a calculation similar to the one made by P&O last year.
Amendment 36 is a version of an amendment that we tabled in Committee but that we have tweaked slightly, partly because of the Minister’s response to it. The central point has been addressed by the Minister’s letter to Committee members in which he states his rationale for not wanting to widen the exceptions to this particular provision of refusing a ship access to a harbour following non-compliance. Although I accept his broader point, I have concerns that welfare considerations may arise when, in certain situations, including mental distress, a seafarer is forced to stay on board. Perhaps the Minister could outline in further detail his thinking on that issue. In doing so, will he remember the point I made in Committee about the Neptune declaration, which involves a commitment that operators
Amendment 38—I am nearing the end, Mr Deputy Speaker, so you need not worry—would ensure that statutory instruments relating to this Bill would be carried out under the affirmative procedure. Given the potential nature and impacts of the provisions that may be made by regulations under this Bill, it is entirely appropriate that they should be subject to the affirmative procedure so as to enhance parliamentary scrutiny. Responding to this amendment in Committee, the Minister said:
I think the Minister should allow Parliament to decide what constitutes the best use of parliamentary time. As I said in Committee, at one point this Government were keen for Parliament to take back control. The case for the prosecution rests.

15:20:50

Grahame Morris

I rise to support the amendments in the names of my hon. Friends the Members for Sheffield, Heeley (Louise Haigh) and for Wythenshawe and Sale East (Mike Kane), in particular new clause 2, which seeks to put the seafarers charter on the face of the Bill; amendment 24 to clause 3, which seeks to reduce the threshold to 52 calls to a UK port; and Opposition amendment 40 to clause 4, which seeks to protect existing seafaring national minimum wage entitlements beyond a 12-mile limit on the UK continental shelf. I am concerned about unintended consequences driving down seafarers’ wages, given that our purpose is to drive them up and protect terms and conditions. I would also like to speak to amendment 41, which proposes making clause 16 subject to the affirmative procedure.

I declare my interest as a member and, indeed, vice-chair of the RMT parliamentary group. I want to give the Minister credit. The Government have moved in several areas of concern that were highlighted on Second Reading, in the other place and in Committee. When the Bill was first published, the trade unions representing both ratings and officers, who were attacked by P&O Ferries and DP World, identified a number of the issues that we have raised, including the level of fines for non-compliance and the use of surcharge revenue to fund seafarer welfare facilities onshore. I am glad that the Minister has acknowledged those concerns and acted on them.

The purpose of the amendments tabled by His Majesty’s Opposition and my friends from the SNP, the hon. Members for Paisley and Renfrewshire North (Gavin Newlands) and for Glasgow East (David Linden), is to strengthen the Bill, not to undermine or devalue it. They aim to make sure that the Bill achieves its purpose.

Government amendment 15 creates a national tariff of surcharges set by the Government rather than tariffs set by individual harbour authorities. In Committee we identified a potential conflict of interest, so I am very pleased to say that the trade unions and the Opposition parties support the amendment.

As I have indicated, sadly the Bill does not go far enough in a number of key areas, including the detention of vessels in port as a punishment for non-compliance, and in the two areas that could cause maximum damage to P&O’s business model. Those two areas relate to the argument that a ship should be designated as within the scope of the Bill for 52 days rather than 120 days, and to the roster patterns, which are covered by the seafarers charter. That is addressed in the Opposition’s new clause 2.

I am thanking the Minister quite a lot, but I have to say that one of his letters to the Committee did not provide the further detail that we had asked for about the Department of Transport’s review of the Equality Act 2010, including the regulations to prevent nationality-based pay discrimination. The Minister is rolling his eyes because that is outside the scope of this Bill, but it was contained in the EU retained law Bill, so I think it is reasonable to seek clarification.

In the time I have, I want to speak in support of Labour’s amendments and, indeed, those tabled by my friends from the SNP, which I believe would greatly improve the Bill and ensure maximum protections for our seafarers. New clause 2 focuses on the seafarers welfare charter, and I hope that the Labour Front Benchers will put it to a vote. I know that the unions, employers and the Government have been discussing a number of versions of the charter since April as part of the much-publicised nine-point plan, which we very much welcome and which is included in the “Maritime 2050” review. It is intended to set minimum standards on wider employment issues that the Bill does not cover. Again, I must mention roster patterns, crewing levels, pension rights, training and taxation, because the additional savings that P&O in particular made were not just down to saving the cost of seafarers’ wages. Most of the financial benefits were from changed roster patterns, pensions and other savings.

Con

15:26:15

Sir John Hayes

South Holland and The Deepings

rose—

15:26:15

Grahame Morris

I give way to the former Shipping Minister.

15:26:44

Sir John Hayes

I am very grateful to the hon. Gentleman for giving way. It is kind of him to mention the maritime growth study from 2015, which, as he says, called for a comprehensive reappraisal of the matters he describes. It seems to me that the fundamental point is that terms and conditions cannot be separated from wages. If we are going to make maritime careers attractive to people and build them such that they have the status they deserve, we really do have to include terms and conditions in our considerations.

15:27:11

Grahame Morris

That is absolutely spot on. As I have said, the improvements in the amendments and the new clause have the support of the official Opposition and our friends in the SNP, but I believe that our aims for the Bill also command the support of a number of Members of the Government party.

Given the importance of linking wages and terms and conditions, the nine-point plan and the seafarers charter really should be on the face of the Bill. The Minister has been quite consistent in disagreeing with that and instead aims to publish a voluntary seafarer welfare charter. I had rather hoped that it would have been published in advance of these remaining stages, including Third Reading, but perhaps it will be published later this month.

In a letter to the Committee, the Minister wrote:

“The Seafarers’ Charter is being developed with the maritime industry and social partners to enhance the core employment protections available to seafarers.”

For the avoidance of doubt, “social partners” means the trade unions. That is really interesting, and I welcome the fact that the Government have chosen to adopt the language of the European Union in referring to seafarers’ rights. Again, for the avoidance of any doubt, the maritime industry includes P&O Ferries, the Irish Continental Group, which operates Irish Ferries, and DP World. The Government must be honest about the discussions they have had and are having with P&O Ferries about its future viability. The Minister responded to an issue raised in Committee relating to P&O by writing:

“The Department works closely with ports and operators across the Maritime sector to understand the market and any potential sources of disruption. We have not however made any specific assessment of the viability of P&O Ferries’ routes to or from UK ports.”

The unions have not seen a draft of the charter since August, and neither to my knowledge has Stena Line or DFDS, whose collective bargaining agreements with the RMT and the officers’ union Nautilus formed the basis of the original framework agreement. Safe roster patterns and crewing levels based on the agreements with Stena and DFDS were prominent, but sadly have since been diluted or removed. That puts hundreds more UK seafarer jobs under threat from bad bosses who are ruthlessly undercutting responsible employees, and I include P&O and Irish Ferries in that. I urge the House not to forget that Irish Ferries started operating on the Dover-Calais route in June 2021 with one vessel doing a freight-only service. It now operates a freight and passenger service with three Cypriot-flagged vessels on the same route. That is the reality, and progressive operators that provide decent seafarer jobs are being undercut every day. It is so important that this Bill is properly targeted.

I am aware that the RMT general secretary, Mick Lynch, who has been busy in other sectors, wrote to the Secretary of State last week, asking for sight of the latest version of the seafarer welfare charter before Report. As far as I am aware, Ministers have not been able to comply with that request either. It is utterly perverse for P&O Ferries and DP World to continue to benefit from royal charter status, as my friend the hon. Member for Paisley and Renfrewshire North referred to, when the Government will not mandate a charter for seafarers’ rights on international ferry and shipping routes. I would be interested to know from the Minister what benefits the royal charter confers on P&O. It is an historical legacy that DP World effectively purchased when it bought P&O, but how does the Minister feel about that?
I was appalled by the lack of contrition from Peter Hebblethwaite when he appeared in front of our Select Committee. He was quite unrepentant. I had thought, given the reassurances we received from the shipping Minister at the time, the hon. Member for Witney (Robert Courts), that P&O would be in receipt of hefty fines to dissuade them from such a course of action. If we can do no more, I hope we can at the very least revoke its royal charter. How does the Minister feel about that? What protections are afforded to P&O under the terms of that charter?
It is vital that this Bill protects pay, working hours, pensions and other remunerated conditions of seafarer employment. New clause 2, in the name of my hon. Friend the Member for Wythenshawe and Sale East, continues to offer the best solution, given how narrowly drafted the Bill is. We should not forget that we are coming to the first anniversary of the P&O sacking, on St Patrick’s day on 17 May. We now know there is a strong possibility that P&O will take delivery of its new electric hybrid ferry, to be called Pioneer, in either Dover or Calais, ahead of the route familiarisation process. The ship will be sailed by an agency crew from International Ferry Management, some being paid under £4 an hour basic pay for a fixed-term contract of 17 weeks solid, with 12 hours on, 12 hours off and no shore leave. Those are aspects of the dangerous and discriminatory conditions on the Pride of Canterbury, which the Pioneer will replace on the Dover-Calais route. Putting broader employment conditions on the face of the Bill is a necessary response to P&O Ferries’ attempt to greenwash its reputation with these new green ferries, but it is still using exploitative labour practices in respect of the crews.
Another electric ferry for the Dover-Calais route is to be delivered from China later this year, and I was amazed to hear that Dubai is hosting COP28 in November, where it is highly likely that DP World will try to use P&O Ferries as a “just transition” case, when it is anything but a just employer for seafarer ratings. P&O Ferries and other companies operate their vessels with crew recruited on exploitative conditions that bear little relation to the economic conditions in the ports they regularly work from.
An equivalent to the national minimum wage in UK territorial waters is an improvement for many ratings on the services in scope of the Bill, but we must guard against the potential for bad employers to use this legislation to bring things down towards the UK national minimum wage. I hope that will not be an unintended consequence, and I hope the Government will take that into consideration. If they will not support new clause 2 in the name of His Majesty’s Opposition, I would like them to state in detail the timeline within which they will legislate, should the voluntary approach that the Minister has outlined through the seafarers charter not work well.
Amendment 24 to clause 3, which would restore the original threshold of 52 calls a year, is so fundamental, and I hope we will have a vote on it. I very much support it. Unions and Opposition parties have consistently sought to restore this 52 calls threshold. Once a week is a significant link between the crew and the UK. I thought my hon. Friend the Member for Wythenshawe and Sale East gave a very good analogy about someone playing for a football team once a week or using a restaurant once a week being a regular player or a regular customer. A ship that uses a UK port once a week is a regular user of that port.
A number of concerns have not been addressed in the passage of the Bill, which will be music to the ears of P&O Ferries, Irish Ferries and other unscrupulous bosses and operators. For example, the Bill’s impact assessment did not estimate the total number of seafarers who would be covered by its provisions. The Department is collecting figures—I think they might even be published today—but we should know how many seafarers will be protected under the Bill. I do not think that 120 calls a year, as laid down under the terms of the Bill, accords with the Government’s aim of improving pay protections for seafarers working on services with a close link to the UK. Calling at a UK port once a week is a clear and direct link between the crew and the UK economy, as well as raising the wage floor for UK-French routes in the channel.
Government amendment 1 imposes a duty on ports to request declarations of national minimum wage equivalence, but that is insufficient if it applies only to non-qualifying seafarers on services that call at UK ports 120 times a year. A lower minimum threshold of 50 port calls in the UK would also make it more difficult, as one of my colleagues pointed out, to avoid this legislation by port-hopping, particularly on services that call more frequently at UK ports.
Amendment 39 would protect collective bargaining conditions above the national minimum wage. P&O Ferries and other companies operate their vessels with agency crew recruited under exploitative conditions that bear little relation to the economic conditions that prevail in the ports from which they regularly work. An equivalent to the national minimum wage in UK territorial waters is an improvement for many ratings on the services in scope, but the potential for employers to use this legislation to bring down pay towards the UK national minimum wage must be guarded against. As such, it is regrettable that the amendment has not been selected.
In all the technical detail we must not lose sight of the fact that collectively bargained terms and conditions were, ultimately, P&O Ferries’ target for its shameful actions. This was not fire and rehire. The agency crew employed by International Ferry Management of Malta are not covered by collective bargaining agreement—not even pale imitations supported by the International Transport Workers’ Federation, to which Peter Hebblethwaite made reference in his appalling evidence to the joint hearing of the Select Committees.
Seafarer employment agreements—the legal requirement under the MLC—merely reflect existing CBAs. They should and can be underpinned by stronger protections in domestic legislation. It would reassure France, Belgium, Ireland and other countries with whom the Government are seeking to negotiate bilateral agreements if the Bill did not undermine existing seafarer terms and conditions. That is important for good operators such as Brittany Ferries, which operates a 100% French flagged and crewed fleet, including on routes from Portsmouth and Plymouth. Brittany Ferries has clearly stated that P&O Ferries’ employment style is against its principles and not in the longer-term interests of French seafarers or the French national economy.
Amendment 40 would protect existing seafarer national wage entitlements beyond the 12-mile limit, as the Minister referred to. It seeks to shore up the 2020 regulations that extend the national minimum wage equivalent entitlement to the offshore oil and gas sector, bound by the UK continental shelf, which is 200 nautical miles from the UK coastline. As Ministers have said throughout the passage of the Bill, offshore vessels will be caught if they call at a UK port on or over the minimum number of calls per year. The Government are saying that should be 120; the Opposition say that it should be 50 or 52.
Once again, that highlights two glaring anomalies in the legislation. First, seafarers working from a UK port to an installation on the UK continental shelf and back to a UK port are already entitled to protection of the national minimum wage, regardless of whether the vessel is UK flagged or the nationality of the seafarer. There are serious concerns about how well that is enforced by His Majesty’s Revenue and Customs, particularly as it is under no obligation to inform unions or others of the outcome of those investigations into third-party complaints. A significant proportion of seafarers qualifying for the national minimum wage in the UK continental shelf are not UK residents. The MCA currently has no responsibility for national minimum wage enforcement, as was repeatedly stressed during the passage of the 2020 regulations. It is vital that enforcement work for that section of the seafarer population is not neglected.
Secondly, seafarers working from a UK port to an offshore wind farm and back to a UK port are not entitled to national minimum wage protection. The Government and the offshore wind industry seem to be relying on the good will of individual developers to commit to voluntary schemes such as the real living wage. I note the Minister’s letter sent yesterday, I think—that is when I received it—on the position of seafarers in the offshore wind turbine supply chain on the continental shelf. That is a very worrying intervention. I am not sure whether the Minister is conflating offshore workers and seafarers. I am not sure how familiar he is with the offshore wind sector, but turbines are not platforms, and they are not staffed in the same way. We hear that the Prime Minister is to split up the Department for Business, Energy and Industrial Strategy, so how does the Minister advise we take this issue up with the appropriate Minister and their officials if it does not come under his responsibility?
In Committee, the hon. Member for Dover (Mrs Elphicke) was quite keen to underplay Labour’s efforts to broaden the scope of the Bill to cover wider seafarer employment conditions as not serious. I urge hon. Members to look at the Government’s woeful performance in this sector.
Many hundreds of millions of pounds of taxpayers’ money is going in to support this vital sector as part of our ambition for zero carbon, and there is a golden opportunity to ensure that the workers in it are properly paid and protected. We need to grow seafarer jobs in the offshore renewable sector, but not with voluntary agreements or voluntary pay rates such as the real living wage. It clearly will not happen with this Bill, and I want to place on record the urgent need for the Government to equalise employment protections for all seafarers and offshore workers, regardless of flag or nationality, working in the UK exclusive economic zone or the UK continental shelf.
There are a number of other points that I want to make, but I will conclude. On its own, this Bill will not break the discriminatory seafarer employment models at P&O Ferries, Irish Ferries or elsewhere, and neither will it return the 600 directly employed seafarer ratings jobs on the Dover-Calais, Hull-Rotterdam or Cairnryan-Larne routes affected by P&O’s callous and profit-driven actions on 17 March last year. We must not lose sight of the fact that with this Bill, we are trying to remedy the plight of the almost 800 seafarers who were notified by recorded message that their employment was being terminated.
I urge the Government to revoke P&O Ferries’ royal charter. It is unthinkable that after this primary legislation was introduced in response to P&O Ferries’ attacks on terms and conditions, the company should continue to derive any benefit—I do not know whether there is any—from the royal charter, which was part of the £3.3 billion deal that DP World paid for the company in 2006. As we approach a year since those shameful actions, I urge Members across the House to support the Opposition amendments, to attempt to bridge the gaps and ensure the best possible deal for our seafarers.

13:09:23

Sir Roger Gale

Mr Deputy Speaker

Order. Is the right hon. Member for South Holland and The Deepings (Sir John Hayes) waiting to speak?

Sir John Hayes

indicated assent.

13:09:23

Mr Deputy Speaker

In that case, there are three Members waiting to speak. The debate has to end at 4.12 pm. The last speaker spoke for 25 minutes. At that rate, those on the Front Benches will not get a hearing. I call Sir John Hayes.

15:47:19

Sir John Hayes

I will speak briefly, Mr Deputy Speaker. I did notify Mr Speaker in advance that I was likely to contribute to this debate, not least because, having served on the Public Bill Committee, I was anxious to affirm some of the points made there and to endorse the comments made by the hon. Member for Easington (Grahame Morris) about the concessions the Government have made and the exemplary way in which the Minister has handled this consideration. The Government deserve credit for bringing this Bill to the House, following the P&O scandal, and for the continuing dialogue they have enjoyed with those of us who take a particular interest in these affairs.

New clause 2, which the hon. Member for Easington was referring to when I intervened on him, encourages the Government to look more widely at the terms and conditions enjoyed—perhaps I ought to have said “endured”—by many seafarers. The Minister knows that when I was the Minister responsible for these matters, I commissioned a growth study, which recommended that the Government take a more holistic approach to both the recruitment and skilling of those who go to sea on our behalf. We should remember that, although it is not often described as such, this is a kind of public service. Our merchant navy—our seafarers—do an important job that benefits us all, and that job should be recognised in the way that was recommended by that review.

The review also suggested that

“a vision and set of strategic objectives”

be established for our seafarers. A seafarers charter has been mentioned. I simply say to the Minister that this requires a bigger piece of work than the Bill. The Bill is to be welcomed—it does an important job—but there is a good case for a bigger review of these matters, and if I do not support the amendments today, it is because I think they do not go far enough.

One recommendation in the growth study was an interdepartmental ministerial working group on these matters. That is a sensible way forward given that we are not simply speaking of seamen, but of all those ancillary trades, crafts and industries related to the merchant fleet, all of which deserve proper consideration if we are going to revitalise this important part of our economy. What P&O did was not simply the unacceptable face of capitalism; it was a heartless, soulless kind of enterprise that has no place in a civilised nation. It was roundly condemned by Members from across this House, and rightly so, and it has acted as a wake-up call for Government and others as to what we need to do next.

When the Minister sums up, I hope he will commit to a rethink of how we build and maintain an appropriate merchant fleet, and set out a strategy accordingly. Because time permits no more, I will end on this: when people consider becoming seafarers, the conditions that prevail are an important barrier or incentive, and we owe it to all those whom we want to recruit to the industry to build on the Bill and do still more.

15:06:41

Sir Roger Gale

Mr Deputy Speaker

Order. I have only just been made aware of the fact—I was unaware of this fact—that the right hon. Gentleman was not here at the start of the debate. He has been here long enough to know that, if he is in that position, then he does not tell the Chair that he is waiting to speak.

15:54:09

David Linden

I rise to speak to new clause 4 in my name and that of my hon. Friend the Member for Paisley and Renfrewshire North (Gavin Newlands). I will come on to the substance of the new clause later, but for now I want to offer my support to the Opposition amendments before the House.

My fundamental position on the Bill has not changed. Yes, I think it is a welcome step in the right direction, but it is incredibly unambitious in tackling the scale of the problems unmasked by the exploitative behaviour of P&O Ferries. It remains a source of extreme frustration to me that, when the P&O debacle unfolded, politicians in this place talked a really tough game, yet the legislation put before the House has not met the scale of the challenge. Even worse, the British Government have reneged on their previous commitments and, I would argue, have watered down the Bill. For example, in clause 3, as it stands, the House effectively gives a green light to port-hopping, which is symptomatic of how this whole problem came about, ergo letting the free market exploit existing weaknesses in legislation and regulation. To be blunt, when it passes, this Bill will be a bit of a missed opportunity, and all that remains for us during its remaining stages is to try to ameliorate it.

For the purposes of brevity, I will refer to new clause 4 as the Hebblethwaite amendment. Throughout Second Reading and in Committee, we spoke about the importance of giving this Bill teeth and of tightening things up. If Members speak to seafarers, as I have done to those in my constituency, they will know that one big source of anger is the fact that senior management at P&O Ferries got away scot-free with their utterly disgraceful behaviour. If we are to go as far as passing this Bill, please let us at least make sure that it has the legislative teeth to deal with the some of these complete reprobates, who have patently exploited workers and should not be deemed fit and proper persons to hold directorship roles.

Let us start with Peter Hebblethwaite, the CEO of P&O Ferries, who was paid £325,000 a year before bonuses. This is a man, as others have said, who proudly admitted to a joint Select Committee of this House that he knew the actions he was undertaking as company director were illegal, but he proceeded anyway, and he even had the gall to say that he would do it all over again if he got the chance. I absolutely agree with the RMT general secretary, Mick Lynch, who said:

“Gangster capitalists should not be rewarded for their appalling employment practices; they should be punished with the full force of law.”

However, herein lies the problem, because passing this Bill without my new clause 4 would mean that Mr Hebblethwaite has carte blanche to again behave as he did in March last year. In summary, there must be individual consequences for directors who seek to exploit workers, and the Bill currently lacks a personal liability clause. That is exactly what my new clause would do by enshrining in statute the ability to deal with these gangster capitalists who seek to ride roughshod over seafarers and other workers.

At its most basic level, Hebblethwaite was responsible for the unlawful sacking of almost 800 seafarers, using a pathetic, cowardly, pre-recorded video message. Despite all that, he is already out there promoting himself again; indeed he was rewarded with a promotion at DP World. What kind of a broken, sick system sees almost 800 seafarers summarily sacked—and sacked unlawfully—yet the boss is given a plum promotion for showing ruthlessness and the sheer brass neck to shove two fingers up to Government?

So, the kind of person this legislation would penalise if they fell foul of the Act is one who admitted breaking the law, and one who used handcuff-trained, balaclava-wearing security guards to remove dedicated, unionised seafarers and replace them with non-unionised workers, many of whom are paid a fraction of the UK minimum wage. Even worse, after experienced crew were fired by Hebblethwaite, the UK coastguard repeatedly detained P&O ships for a lack of crew training, including fire safety and lifeboat drills. But still—yes, still—Hebblethwaite is allowed to retain his position as a company director, which makes a mockery of our legislative framework.

Only by adding new clause 4 to the Bill can we finally deal with these gangster capitalists who Government Ministers had tough words for last year. But what will they do this afternoon when the Division bell rings? Will they vote to bring the likes of Hebblethwaite to heal, or, now that the media circus has moved on, will their protestations be exposed as little more than hollow words?

This Bill is underwhelming and many of us are seeking to give it greater teeth to ensure that never again can a company director like Hebblethwaite take such a calculated risk with people’s jobs and livelihoods, knowing fine well that the consequences of doing so result in nothing more than a few uncomfortable column inches. We need to enshrine in statute a strict deterrent which makes personal liability a reality for the Peter Hebblethwaites of this world, because if this whole sorry episode has taught us anything, it is that bad bosses will continue to be bad bosses unless we hit them where it hurts. It is on that basis that I have tabled new clause 4.

John McDonnell

I have been working for 20 years for this legislation and I cannot tell the House how crushingly disappointed I am. I just did a Hansard search of my statements over the years. Way back in May 2003 I had a Westminster Hall debate on the application of the Race Relations Act 1976 to seafarers, and I said then that

“the disparity is that non-UK seafarers will be paid less than half the wage of the others. On some ships, they are paid less than the minimum wage. We have also seen the behaviour of some companies, such as P&O Ferries, where UK seafarers have been dismissed and replaced by Filipinos to reduce wage rates.”—[Official Report, 14 May 2003; Vol. 405, c. 132WH.]

I said, too, that the “moral case” for legislation was “overwhelming” and that we needed to act now because we had the opportunity to act, but we failed. I raised it again in 2004, when I cited the practice with regard to Irish crews who were replaced by seafarers from eastern Europe on exploitative pay and conditions. I raised it in 2005, 2006, 2007 and 2008; I raised it later in 2010 and 2012, urging the Government to implement regulations to outlaw pay discrimination against all seafarers working in UK territorial waters. It just went on: I can quote this on an annual basis.

As has been said, the proposed legislation has been prompted by what happened, so predictably, at P&O last year. It has been said that the litmus test of this legislation is whether it prevents another P&O. It will not. We may be able to do something on the margins of wages with regard to this, but, just as P&O has done, companies will exploit people on rosters, or the number of hours they work, or how much time they have to spend on ship; they will undermine their pensions, introduce accommodation charges, as other employers have done as well, and reduce crew numbers, which, as has been said, puts lives at risk. That is the behaviour of the worst employers in the shipping sector, and we need to legislate to tackle the worst. The only thing that will prevent another P&O is firm legislation against fire and rehire. A consultation is currently taking place, but we should bring forward measures as rapidly as possible.

I refer to my entry in the Register of Members’ Financial Interests, in that I am also a member of the RMT parliamentary group—in fact, I helped to found it all those years ago. The Strikes (Minimum Service Levels) Bill will undermine trade unions’ ability to negotiate better conditions for their workers. I also worry about where we are going with the Retained EU Law (Revocation and Reform) Bill on employment protections.
We have heard about the seafarers welfare charter. To be frank, it is like waiting for Godot: we wait for it, but no one has seen it, not even the general secretary of the main union representing the seafarers affected by P&O. We understand that it is voluntary, but although it covers a range of aspects—as the right hon. Member for South Holland and The Deepings (Sir John Hayes) said, it has to cover not just wages but the whole range of activities—unless it has statutory force, the worst employers will continue their exploitation with impunity.
I have heard the reference to criminal sanctions and the fines that will be imposed on companies, but directors of those companies will flip from one company to another. In fact, they will most probably create a new company and have no personal liability whatsoever. That is why the criminal sanctions should apply to named directors; otherwise, we will see further scandals.
I supported the figure in the Government’s consultation of 52 visits to an individual port. Raising it to 120 will mean that large numbers of workers are not covered. That will be another get-out, not for the good employers but for the worst employers. I know what has happened, and it is the same thing that has happened for the last 20 years. The Chamber of Shipping will have used its direct access to Government, Ministers and civil servants to sabre-rattle and the Government have rolled over again. The response to the Chamber of Shipping should be that it has had over £2 billion-worth of tax reliefs on the tonnage tax and not delivered on any of the commitments that it was supposed to under that legislation, so these are hardly people to be looked to or listened to when it comes to the fair treatment of seafarers.
I also welcome the fact that the tariffs will now be set nationally, and I welcome the amendments that the Government have accepted on that. But again, unless there is firmer action through the detention of ships, shipowners will be able to get round that as well. I also welcome the powers being given to the Maritime and Coastguard Agency, but would like to know what resources it will be given to enable it to exercise them, given the cuts we have seen over recent years.
I welcome the agreements that we are envisioning with the French and others, but I would like to see the legal basis of those agreements, because time and time again, whenever we have campaigned on fairness and the treatment of seafarers, the international law of the sea has been cited. We seem to interpret it so much more tightly than others, and as a result we are prevented from taking effective action.
Finally, I look forward to seeing the seafarers charter. However, I believe that we will be back here, after more disgraceful behaviour by a company or another example of British seafarers and others being exploited, arguing that the seafarers charter—when we see it, if it is comprehensive enough—should have statutory force. I just hope that it is not another 20 years, but if it is, it might be worth me staying on in Parliament, just to make sure it goes through.

16:05:15

Mr Holden

I thank all hon. Members for their speeches. I found it a pleasure to work with everybody, particularly in Committee, to try to improve the Bill and get it into its best possible shape. I hope I have been clear in my responses during the debate that, with the Government amendments we have tabled, we have taken on board a lot of the feedback from Members. I understand that some will be disappointed that we did not go further, but I will come on to address a couple of points that were raised.

On amendment 24, the scope is intentionally tightly drawn because seafarers need to have close ties to the UK. The national minimum wage equivalent will be enforced in our territorial waters only. If we were to expand it to include less frequent services, there is a risk of bringing into scope seafarers working on services that we do not feel have legitimate ties to the UK.

The hon. Member for Easington (Grahame Morris) and others raised the issue of wages. We understand that wages are just one of the issues at stake more broadly, but they are important, which is why we are legislating on them today. On his broader concern, we are working on progressing the nine-point plan. I hope Members welcome the progress we have made, in particular on co-operation at international level. The hon. Member for Sheffield, Heeley (Louise Haigh) did say back in March last year that we needed a binding framework to prevent a race to the bottom on international standards. I hope she can see that we are putting in a new international standard, at least at some level, and that we are working with international partners to improve conditions.

I thank the hon. Members for Wythenshawe and Sale East (Mike Kane) and for Paisley and Renfrewshire North (Gavin Newlands) for their comments on unlimited fines and seafarer welfare. I appreciate their views on wanting things to go further. The hon. Member for Glasgow East (David Linden) raised Mr Hebblethwaite, as did other hon. Members. I have to agree with their comments about the man as an individual. However, we hope that the unlimited fines element for the company will make a real difference to the operation of people in this space.

16:06:45

David Linden

Will the Minister give way on that point?

16:06:52

Mr Holden

I do not have enough time to give way, I am afraid. I was very generous earlier on.

The right hon. Member for Hayes and Harlington (John McDonnell) has raised the issue of the seafarers charter regularly. He and the hon. Member for Easington have raised it on a number of occasions. We will bring it forward in the near future. I hope they will see that it will, in quite a lot of ways, go further than I think they fear it might. Going beyond wages, food and accommodation will be covered under secondary legislation that will follow on from the Bill. They both also mentioned the scope of amendment 32.

My right hon. Friend the Member for South Holland and The Deepings (Sir John Hayes) raised broader issues around legislation. In particular, he wanted an update on the maritime growth strategy. I am encouraged by the positive action taken by the industry so far, but I will raise the matters he has raised with the maritime Minister and ask her to write to him.

The hon. Member for Easington raised a number of issues, but went further than other hon. Members on P&O’s royal charter. I will ask the Privy Council Office to write to him. My understanding is that one has not been revoked since the reign of Charles II. We are now in the reign of Charles III, which is quite a long time after that. There was, apparently, a third-party action in an administrative court in 1853, which is slightly more recent. That could possibly be another route, but I will ask the Privy Council Office to write to him with the full details. That is the best place for that to come from—it is stretching my legal knowledge in that particular regard.

We are confident that the combination of surcharges, refusal of access and criminal offences will incentivise operators to pay seafarers on services within the scope of the Bill at least the national minimum wage.

I hope that I have addressed some of the major issues on which hon. Members have pressed me today. On new clause 4, I ask them to consider the impact that making the fines unlimited would have on individual companies and directors, and to think again about what they are asking for. On new clause 2, I put it to them that it really would not be appropriate to have a review within six months, before even the relevant secondary legislation has been made. On amendment 24, I refer them to the extensive comments that I made in my first speech.

I hope that hon. Members will see fit to pass the Bill without further pressing any amendments or new clauses. If they do press their amendments, I hope we can defeat them and see the Bill through to a Third Reading.

Question put and agreed to.

New clause 3 accordingly read a Second time, and added to the Bill.

New Clause 2

Implementation and monitoring

‘(1) Within six months of this Act being passed, the Secretary of State must publish a report on the implementation of, and monitoring of the effects of, this Act.

(2) The report must include—

(a) an assessment of the impact of this Act on—

(i) roster patterns,

(ii) pensions, and

(iii) wages of seafarers;

(b) a statement as to whether further legislation will be introduced by the Government as a result of the findings of the assessment under paragraph (a);

(c) a strategy for engaging with trade unions for the purposes of monitoring the implementation of this Act, including in reference to conventions of the International Labour Conference;

(d) a strategy for monitoring the establishment of minimum wage corridor agreements with international partners of the United Kingdom, insofar as any such agreement ensures that any non-qualifying seafarer is remunerated for UK work at a rate that is equal to or exceeds the rate that would otherwise be required under this Act;

(e) an assessment of the interaction between this Act and existing international agreements or international maritime law, including reference to any litigation that has arisen as a result of this Act.

(3) The report must be laid before each House of Parliament.’ —(Louise Haigh.)

Brought up, and read the First time.

Question put, That the clause be read a Second time.

Division: 173 held at 16:10 Ayes: 215 Noes: 274

Division: 174 held at 16:24 Ayes: 210 Noes: 278

Division: 175 held at 16:36 Ayes: 213 Noes: 285

More than two hours having elapsed since the commencement of proceedings on consideration, the proceedings were interrupted (Programme Order, this day).
The Deputy Speaker put forthwith the Questions necessary for the disposal of the business to be concluded at that time (Standing Order No. 83E).
Brought up.
Question put, That the clause be added to the Bill.
Amendment made: 1, page 1, line 8, at end insert—
Amendment proposed: 24, page 2, line 5, leave out “120” and insert “52”.—(Louise Haigh.)
Question put, That the amendment be made.
Amendment made: 25, page 2, line 13, leave out from “conviction” to end of line 14 and insert
Amendments made: 2, page 3, line 47, leave out “or (3)” and insert “, (3) or (3A)”
Amendment 3, page 4, line 18, at end insert—
Amendments made: 4, page 4, line 28, at end insert
Amendment 5, page 4, line 34, leave out from “breach” to end of line 35 and insert
Amendment 6, page 4, line 37, after “manner” insert “, and within a period,”
Amendment 7, page 4, line 40, after “provide” insert
Ordered,
Amendments made: 8, page 5, line 13, after “declaration,” insert—
Amendment 9, page 5, line 13, leave out “or”
Amendment 10, page 5, line 14, at end insert—
Ordered,
Amendments made: 11, page 7, line 31, leave out “This section applies” and insert “Subsections (2) and (3) apply”
Amendment 12, page 8, line 4, leave out “this section” and insert “subsection (2)”
Amendment 13, page 8, line 5, leave out “this section” and insert “that subsection”
Amendment 14, page 8, line 6, at end insert—
Amendments made: 15, page 8, line 9, leave out “by the harbour authority in accordance with” and insert “in”
Amendment 16, page 8, line 10, leave out subsection (2)
Amendment 26, page 8, line 15, leave out from “conviction” to end of line 16 and insert
Amendment 17, page 8, line 30, leave out paragraph (a). —(Mr Richard Holden.)
Amendments made: 18, page 8, line 36, leave out subsection (1) and insert—
Amendment 27, page 8, line 41, at end insert—
Amendment 19, page 9, line 2, leave out “matter objected to” and insert
Amendment 20, page 9, line 23 , leave out paragraphs (a) and (b) and insert—
Amendment made: 28, page 10, line 19, leave out from “conviction” to end of line 20 and insert
Amendment made: 29, page 10, line 40, leave out from “conviction” to end of line and insert
Amendments made: 21, page 11, line 11, after “Act” insert
Amendment 22, page 11, line 12, at end insert—
Amendment made: 23, page 11, line 27, at end insert—
Third Reading

Mr Holden

I beg to move, That the Bill be now read the Third time.

I was as shocked as everyone else in this House by the actions of P&O Ferries when, without warning, it sacked almost 800 of its workforce to replace them with cheaper labour. Those actions brought to light the urgent need to improve welfare and working conditions, and this legislation is part of the Government’s nine-point plan to address those issues.

The Bill delivers on the Government’s commitment to ensure that employers such as P&O Ferries, and all ferry operators that frequently use UK ports, are incentivised to pay at least the national minimum wage equivalent while their seafarers work in the UK or in our territorial waters. Although there is no silver bullet to address all the outstanding seafarer welfare issues, the Bill is a vital step in the right direction. At the same time, the Government will make progress on the other pillars of the nine-point plan.

We have been working closely with our near European neighbours on how we can collaborate to improve seafarer welfare and explore the creation of minimum wage corridors. We have been working closely with the French Government on improving seafarer pay, welfare and working conditions, and I am pleased to report that the French Government deposited in their National Assembly a Bill that aims to provide a level of pay protection to seafarers working on certain cross-channel services between the UK and France. It will ensure that seafarers working on certain cross-channel services will have pay protections while in specific parts of French territorial waters, mirroring our own UK territorial waters. We will continue to work together on our respective pieces of legislation to maximise their benefit.

In addition, we have begun our engagement with the Crown dependencies, and we will continue to engage with other European neighbours on strengthening co-operation to bolster seafarer welfare. The voluntary seafarers charter is being developed with the maritime industry and social partners to enhance core employment protections. It will be launched soon and will cover a wider range of seafarer employment standards. We are also supporting the French Government as they develop their own seafarers charter.

All this sends a message to every operator: “If you want to serve UK ports on a regular basis, you must meet our standards.” 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 grateful to stakeholders for their constructive engagement and continued close working. I thank officials at the Department for Transport for all their work in bringing the Bill to its current stage and for progressing the nine-point plan, and Baroness Vere, who, as Maritime Minister, steered the Bill through the other place. I thank the parliamentary counsel for their work to draft the Bill and its amendments, and I also thank House staff.

I thank all Members from across the House, especially those who took part in the Bill Committee, for their support for and engagement with this important legislation. I am pleased that the Bill has reached this stage, and I look forward to seeing it in statute.

Lab

16:54:52

Louise Haigh

Sheffield, Heeley

This House agreed last March that the action taken by P&O Ferries was a national scandal. As the Minister said, 800 British workers were sacked with no notice. It was the reality of a business model that has been allowed to prevail on our seas for far too long—a business model predicated and dependent on exploitation.

As the Minister knows, Labour supports the Bill’s limited provisions, and we welcome the steps that the Government have taken to improve it in Committee. I know that the Minister has been listening and I thank him for the work he has done on strengthening the amendments that we called for in Committee. Amendments 3 to 10 beef up the enforcement and compliance of the provisions, amendment 26 allows for an unlimited fine to be imposed for breaching minimum wage provisions, and amendment 17 deletes the provision allowing operators to retain their revenue after a fine and ensures that it goes towards seafarer welfare. My hon. Friend the Member for Wythenshawe and Sale East (Mike Kane), the shadow Minister, called for all those amendments in Committee, so we are very grateful to the Minister for this progress.

Fundamentally, however, as we have heard throughout this debate, the test for this Bill is whether it will end the exploitative practices that have become commonplace in the ferry sector for too long. Will it bring those responsible for this scandal to justice? In short, will it stop another P&O? Because six months on, it remains nothing short of a scandal that this Dubai-owned company, which received millions in taxpayers’ money during the pandemic, tore up the rights of British workers while its profits soared. And six months on, the chief executive, his board and those who deliberately and consciously broke the law in plain sight have faced no consequences whatsoever. They trampled over the rights of British workers, they came to this Parliament and boasted about it, they said they would do it all over again, and they have faced no consequences.

Whichever way we look at it, the message this sends to rogue employers around the world is simple: they can attack the rights of British workers on our shores with impunity. Every day Peter Hebblethwaite remains in charge of P&O Ferries, other employers who wish to undermine the rights of British workers will find comfort. The truth is that if P&O Ferries or any of its low-cost rivals wanted to act in precisely the same way again, nothing in this legislation would stop them doing so. That is why we regret that amendments were not made to close the loopholes that P&O exploited in the first place. There was a refusal to consult, and a refusal to notify. The Bill does nothing to address those glaring loopholes.

We know that bad bosses will exploit every loophole, so there can be no doubt, no room for manoeuvre, no scope for avoidance—that is why we pushed to close the port-hopping provisions for good. Regrettably, as the Bill stands, operators fall within the scope of the Bill if they call at a UK port only 120 days within a year—this has been debated at length this afternoon—while regular operators who call at UK ports once a week are excluded from the provision. Given that the Minister has rejected the call expressed so clearly across the House, we hope that there will be very close monitoring of the application of the legislation to ensure that the loophole is not exploited as we fear it will be.

Above all, the P&O scandal was supposed to represent a line in the sand for seafarers’ rights. The current situation means that many ferry operators are reliant on the low-cost crewing model that P&O exploited on 17 March. That exploitation is every bit as much about the conditions and rights of those seafarers as it is about pay. It will shock millions across this country to learn of the shameful model that too many ferry companies employ. People are working up to 91 hours a week and are on board for 17 weeks without any entitlement to shore leave. They are not entitled to any pension, and they are not entitled to any sick pay when outside of UK waters. That is precisely why we need a strong, legally binding seafarers charter on the face of the Bill—one that ends the race to the bottom that P&O Ferries has so cynically exploited.

Regrettably, Ministers rejected that amendment. Will the Minister commit to publishing the seafarers welfare charter—he has been asked to do so many times today—which is the Government’s preferred option for setting minimum conditions for rostering, pensions and other aspects of seafarer employment, and explain why progress in agreeing it has stalled since August? Will he further consider making it mandatory for employers to sign it, so that it is truly binding and drives up conditions across the sector?

16:59:10

Sir John Hayes

The hon. Lady and I are wholly agreed on the seafarers charter, but this Bill may not be the best place for it because, as has been suggested in various contributions, it is broader and wider than the scope of the Bill. But I entirely agree that we need it, and we need it quickly.

Louise Haigh

I am grateful for that intervention. I accept that the scope of the Bill is limited, but it was introduced as an opportunity to address the issues that were highlighted so egregiously in the case of P&O Ferries, so it is a major missed opportunity for the Government not to at least have published it alongside the Bill.

In closing, Britain is a proud seafaring nation. That tradition has been the envy of the world. The ongoing exploitation of these workers on these routes—all too often by entities allowed to be flagged elsewhere—is a stain on that tradition. With this Bill, we have moved a small step forward, which we welcome, but regrettably the chance to end that exploitation once and for all has today been missed.

17:00:34

Gavin Newlands

As I said on Report, it remains profoundly disappointing that the seafarers charter is not with us before this Bill concludes. I therefore remain disappointed by the final version of the Bill. I rather fear, as the right hon. Member for Hayes and Harlington (John McDonnell) said on Report, that we will be back here again following another maritime scandal. That said, I genuinely hope that the Government are right in their assertions on various aspects of the Bill, but in my opinion it remains a missed opportunity.

I would like to thank a few folks. I thank the Clerks for their assistance, particularly Anne-Marie Griffiths, who has been a great help to us and, I am sure, other Members on the Back Benches. I also thank Nautilus, the RMT, Eurotunnel, the Law Society of Scotland, the TUC and the STUC for their assistance with briefings. I thank my hon. Friend the Member for Glasgow East (David Linden), who I have suffered greatly—sorry, who has helped me greatly during the Bill’s passage. I thank Labour colleagues on the Bill Committee and, indeed, the Minister, who has listened perhaps more than most Ministers in Bill Committees I have been on. He gave us a number of concessions, despite my misgivings about where we are with the Bill overall.

One person I will not be thanking is Peter Hebblethwaite. He should be in a jail cell, as far as I am concerned. It is disappointing that the Minister could not accept new clause 4. The one small silver lining is that P&O Ferries’ actions, after a summer that saw British Airways, British Gas et al. treat their workers with utter contempt through fire and rehire threats, finally moved the needle enough to force this Government to act to protect workers against rogue employers. Perhaps we will actually see a meaningful attempt to address fire and rehire next.

Question put and agreed to.

Bill accordingly read the Third time and passed, with amendments.

Higher Education (Freedom of Speech) Bill (Programme) (No. 2)

Motion made, and Question put forthwith (Standing Order No. 83A(7)),

That the following provisions shall apply to the Higher Education (Freedom of Speech) Bill for the purpose of supplementing the Order of 12 July 2021 in the last Session of Parliament (Higher Education (Freedom of Speech) Bill: Programme):

Consideration of Lords Amendments

(1) Proceedings on consideration of Lords Amendments shall (so far as not previously concluded) be brought to a conclusion two hours after their commencement.

(2) The Lords Amendments shall be considered in the following order: 10, 1 to 9, 11 and 12.

Subsequent stages

(3) Any further Message from the Lords may be considered forthwith without any Question being put.

(4) The proceedings on any further Message from the Lords shall (so far as not previously concluded) be brought to a conclusion one hour after their commencement.—(Steve Double.)

Question agreed to.

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