My Lords, the draft regulations that we are considering will be made under the European Union (Withdrawal) Act and will be needed in the event of no deal, in which case UK ships will continue to have access to member state ports and the ability to travel between member states. This access is based on OECD common shipping principles.
The regulations we are considering today revoke EU legislation on market access and cabotage that would otherwise be retained in UK law by the EU withdrawal Act. For the most part, this legislation would be redundant. It would have no effect after we leave the EU. For example, Council Regulation 4058/86 is about anti-competitive measures by non-EU countries. It allows member states to ask the European Commission to co-ordinate retaliatory action against such countries. This remedy will not be available to the UK when we are no longer a member state, so it is clearly inappropriate to retain it.
There are some instances where the regulations will revoke legislation that would otherwise retain on the UK statute book statutory rights for EU member states in UK waters that would not necessarily be reciprocated. EU Regulation 3577/92 gives rights to member states to provide maritime cabotage within another member state. Cabotage in this context is the operation of ships between two ports, or trips to and from an offshore site within a single member state. If we do not revoke the regulation, it will be retained by UK law. This would mean that member states would continue to have statutory cabotage rights in UK waters. However, UK vessels would no longer have such rights across EU waters; their rights would be at the discretion of each member state.
The UK has no intention of restricting cabotage by EU vessels in UK waters. By removing the statutory rights provided in the regulation, we are simply putting EU vessels on the same footing as vessels from other countries: that is, they will continue to be able to operate cabotage, but without an express statutory right.
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Noble Lords may be aware that the regulations were originally laid under the negative procedure. I want to address briefly the points made by the Secondary Legislation Scrutiny Committee in recommending that the SI be upgraded. The committee thought that the Explanatory Memorandum should provide more information on the effects of the instruments. Following the committee’s review, the department has re-laid the Explanatory Memorandum and responded to its comments. The EM explained that the instrument will not have any practical effect on ship owners.
Most of the legislation being revoked would have no effect. On cabotage between UK ports, vessels would continue to be able to provide the same services as now. The only difference would be the guaranteed statutory rights.
There is no reason to believe that the regulations will have any effect on service provision. As mentioned previously, the UK has no intention of restricting this. We believe that an open approach promotes competition, leading to better and more efficient services. However, the UK does not intend for member state cabotage rights to continue to be expressly guaranteed in UK legislation where others’ are not.
The changes in these regulations are appropriate to ensure that the UK statute book on exit day does not contain regulations which are redundant or provide for non-reciprocated rights. I beg to move.
Amendment to the Motion