Select Committee on Environment, Food and Rural Affairs Eighteenth Report


1 Introduction

1. Ships have a finite, albeit long, working life, at the end of which they need to be dismantled. Much of the material they are made from, such as the steel, can be recycled, but many of the ships that are reaching the end of their lives now also contain hazardous materials, such as asbestos, PCBs and waste oils, which need to be disposed of safely.

2. It is estimated that, world-wide, about 700 large commercial vessels are scrapped every year.[1] In addition, a number of naval vessels and smaller coastal transport and fishing vessels are also scrapped. In this inquiry we focussed on the disposal of larger vessels capable of international voyages. The recent decision by the International Maritime Organisation to phase out all single-hulled tankers by 2015 at the latest will increase the number of vessels which will need to be dealt with over the next few years.[2]

3. There has been growing concern about the health and environmental impacts of ship dismantling: Greenpeace, for example, has been campaigning against the dismantling of ships in poor conditions in Asia.[3] There have also been concerns about ship dismantling in England. In 2003, the Committee examined the case of a British company, Able UK Ltd, which had intended to dismantle and recycle redundant ships from the US auxiliary fleet.[4] The company had entered into an agreement with the ships' owner, the United States Maritime Administration (MARAD) and was granted a trans-frontier shipment permit to import the ships by the Environment Agency. A number of the ships were brought across the Atlantic to Able UK's facility in Hartlepool, County Durham.

4. Objections from the public and environmental groups led to two judicial reviews of the decisions to permit Able UK to take the ships. The reviews ruled that Able UK did not have the necessary permits to carry out the work. Able UK must now conduct further environmental assessments and seek planning permission before it can go ahead. Both the Environment Agency and Defra have conduced reviews of the lessons learned from the Hartlepool situation. It is clear that, although it remains the company's responsibility to ensure that it has all the relevant permits to carry out the work, the regulatory structure governing ship dismantling is highly complex and perhaps little understood.

5. The evidence we heard about Able UK's proposal to dismantle the US ships suggested that a more detailed examination of the wider issues of ship dismantling was necessary. So, on 25 March 2004 we announced a new inquiry with the following terms of reference:

In light of the issues surrounding the dismantling of US Navy vessels on Teesside, the phasing out of single-hulled tankers, and the need to dispose of defunct UK naval vessels, the Committee is undertaking an inquiry into the environmental impacts of dismantling defunct ships in the United Kingdom, and the methods of disposal to be used. In particular the Committee will consider:

  • what facilities and expertise are already in place in England and Wales to dismantle defunct ships safely
  • what is the likely demand for such facilities and what would be the likely economic and environmental impacts of meeting such a demand
  • what is the legal status of importing such vessels for dismantling (the Committee will particularly seek to clarify what are the implications for the industry of the Stockholm Convention on Persistent Organic Pollutants), and
  • how defunct United Kingdom vessels are currently dealt with, and what plans have been made to cope with their disposal.[5]

6. In response to our call for written evidence, we received 15 memoranda. We took oral evidence in June and July 2004 from: the Chamber of Shipping; Friends of the Earth; Greenpeace; Able UK Ltd; the Environment Agency, and Elliot Morley MP, Minister for Environment and Agri-Environment, Department for Environment, Food and Rural Affairs. We also discussed the matter informally with European Commission officials during a Committee visit to Brussels in July 2004. We are most grateful to all those who submitted evidence or otherwise helped us during the inquiry.


1   Q9 Back

2   Ev 69 [International Maritime Organisation], para 4. Most have to be scrapped by 2010 and some-the oldest-by 2005. Back

3   http://www.greenpeace.org/international_en/campaigns/intro?campaign_id=3990 Back

4   Environment, Food and Rural Affairs Committee, US 'Ghost Ships', Minutes of Evidence and Memoranda, HC 1336 Session 2002-03, Ev 39 Back

5   Environment, Food and Rural Affairs Committee, Press Notice 41, Session 2003-04, 25 March 2004 Back


 
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Prepared 11 November 2004