I once again thank the Minister for explaining the purpose and objectives of this SI. As the Explanatory Memorandum points out, it deals with the legislation related to market access and regulation for maritime transport services. The EU law in question dealing with market access is Council Regulation (EEC) 3577/92 and that relating to anti-competitive practices is Council Regulation (EEC) 4058/86.
I have one or two questions arising from the Explanatory Memorandum. I noted with interest the comments made by one of the SLSC sub-committees and by the ESIC. The view of the sub-committee was that the impact of these regulations was not clearly explained in the Explanatory Memorandum. The ESIC suggested that a number of points were being raised that might relate to questions of particular commercial and economic importance that should perhaps be debated.
My first question relates to paragraph 7.4, which refers to two Council regulations which are,
“designed to provide remedies to member States in the event that other countries take anti-competitive measures. When the UK ceases to be a member State, the remedies specified in these Regulations will no longer be available to the UK. The Regulations will, therefore, be redundant. Instead, UK competition law will apply, so far as relevant”.
How relevant will our competition law be in a situation of other countries taking anti-competitive measures, and how effective will it be compared with the Council regulations that cover this issue but which are going to become redundant? It would be helpful if the Minister could comment on that point.
The noble Baroness, Lady Randerson, has already referred to cabotage, where we are removing a statutory right in relation to ship owners from other EU countries. At the moment, we do not know what the situation will be for UK ship owners in relation to cabotage within the EU. The noble Baroness has already asked whether this issue is being pursued vigorously or whether it appears to have been put on the back burner. I too await with interest the answer to that point. The Explanatory Memorandum refers to the fact that we do permit ship owners in other countries to have cabotage rights, and that, in reality, we do not intend to take these away. Is the Minister able to say how many EU states are likely to continue to give us the reciprocal rights which we presumably have at present? It may turn out to be all of them bar one or two, which will not give it to us for obvious geographical reasons. It would be helpful if the Minister could say something about what is likely to happen with EU states in relation to UK ship owners on this issue.
Paragraph 7.7 says:
“Council Regulation (EC) 789/2004 on the transfer of cargo and passenger ships between registers within the Community sets out a reciprocal regime to ensure ships may be easily transferred between registers of member States provided they comply with certain safety and environmental standards”.
It goes on to say that:
“This regime will not include the UK when it leaves the EU, so the Regulation is revoked”.
Bearing in mind the comment, which I referred to earlier, made by one of the sub-committees which looked at this instrument about the impact of these regulations not being clearly explained in the EM, will
the Minister explain what the impact will be on our shipping industry in relation to the revoking of Council Regulation 789/2004 on the transfer of cargo and passenger ships between registers? Will it have any significant impact at all?
Paragraph 7.8 refers to Council Regulations 3921/91 and 1356/96 on,
“the rules that apply to the provision of inland waterway transport services in and between member States. These rules will not be relevant to the UK when we are no longer a member State”.
Once again, what is the impact of this on the UK? It would be helpful if the Minister was able to comment on that point.
7.45 pm
I will ask the inevitable question on the consultation outcome. Going by paragraph 10.1, it does not look as though there was too much consultation, since it says:
“The Department consulted stakeholders informally on EU exit maritime issues including those related to market access”.
Were the trade unions representing crew, including officers, involved in this informal consultation? Why was it decided that the consultation should be done informally? Was that a reflection of the Government’s view about the lack of importance of this issue, or did they have reason to believe that those they were seeking to consult would not have very much to say on it anyway? Over what period did the informal consultation take place? A more formal consultation is usually over a specific period of time. I am not sure what the reference to informal consultation means in terms of the period of time over which it took place. The paragraph says that the informal consultation,
“confirmed the view that market access generally was not a significant concern for stakeholders because the industry is regulated internationally and it is not generally in states’ interests to restrict shipping access to their ports”.
I apologise for my ignorance in this regard, but does international regulation provide that cabotage services must be allowed?