Appendix: Government reply
Introduction
This reply to the Committee's report is submitted
on behalf of Government by the Department for Environment, Food
and Rural Affairs. This response addresses the points as they
are laid out in the report's conclusions and recommendations.
We welcome the Committee's report. The dismantling
of ships is a technically complex process which is potentially
harmful to the environment and human health. Given the presence
of hazardous components typically found within end-of-life vessels,
it is vital that effective environmental and health and safety
controls are in place, and enforced, during the dismantling operation.
At an international level it is accepted that there
is uncertainty about the relevant controls for the dismantling
of such vessels and there is an urgent need to establish a specific
enforceable control framework. Current practices in the majority
of the world's ship dismantling yards are unacceptable and must
change. International action is needed to introduce minimum controls
and management and quality standards for dismantling operations.
The establishment of the Joint Working Group of the
International Maritime Organization, the Basel Convention and
the International Labour Organization on ship scrapping is a welcome
first step. It brings relevant interests together for the first
time, and Government hopes that this group will identify elements
for an enforceable global control framework, preferably to be
delivered through an established mechanism such as the International
Maritime Organization (IMO).
The introduction of tighter maritime safety controls
mean that an increasing number of vessels will need to be dismantled
over the next ten years. Controls should not be discussed in isolation
from capacity. Current predictions of arisings indicate a significant
lack of capacity to undertake dismantling work in a manner that
is both environmentally sound and maintains high standards of
health and safety. We hope that the Joint Working Group will consider
capacity issues in parallel with discussions on controls.
As a member of the Joint Working Group, the UK Government
will be actively promoting progress towards a long-term solution.
In the short-term we will publish a Marine Guidance Note providing
advice to UK-flagged vessels on implementation of the IMO Ship
Recycling Guidelines. Government is also developing a UK Ship
Recycling Strategy to ensure that all UK Government-owned vessels
are dismantled in an environmentally sound manner. The Strategy
will also examine capacity issues, looking for ways to encourage
the establishment of dismantling facilities in the UK. It will
also feed into the wider work to develop a UK Sustainable Shipping
Policy which will promote and encourage environmentally sound
and sustainable practices within the UK shipping industry.
How are defunct ships currently dealt with?
Recommendation 1
The lack of suitable dismantling facilities in
developed countries is a significant barrier to responsible ship
dismantling. At present, even if a ship owner based in the United
Kingdom wished, or was required, to dismantle a ship here, appropriate
facilities for larger vessels do not exist. Given the economic
advantages of dismantling facilities in Asia, and the difficulties
faced by companies such as Able UK, there is little incentive
for companies here to develop ship dismantling facilities. (Paragraph
18)
We agree with the Committee's conclusion. The ship
dismantling market is currently distorted in favour of poorly
managed, low cost facilities in developing countries. Even if
facilities are established in the UK, they will not be able easily
to compete economically with facilities overseas. This underlines
the importance of developing international standards. Standards
developed at the international level will harmonize the economic
costs of providing safe and environmentally sound ship dismantling
thus reducing market distortion and supporting high quality dismantling
capacity within Europe and the wider OECD to compete more effectively
with facilities elsewhere.
Existing legislation and guidelines regulating
ship dismantling
Recommendation 2
Since the European Community
Waste Shipments Regulation includes a ban on export of hazardous
wastes to developing countries, the regulation forbids the export
of ships that are classified as hazardous waste to developing
countries. We welcome this development. (Paragraph 26)
The Waste Shipment Regulation transposes an amendment
to the Basel Convention (the 'Basel ban') whereby hazardous waste
must not be sent from OECD countries to non-OECD countries. Where
an end-of-life vessel falls within the definition of waste, as
set out in the Waste Framework Directive, such controls will apply.
The Environment Agency is the competent authority for these controls
in England and Wales.
The Committee's report highlights the difficulties
in applying transfrontier shipment of waste controls to movements
of end-of-life vessels destined for recycling, in particular the
fact that controls can be circumvented in a number of ways. Our
own legal analysis has also shown situations where enforcement
of these waste controls would conflict with provisions of the
UN Convention on the Law of the Sea (UNCLOS).
Recommendation 3
The Government, as a member
of the International Maritime Organisation and in its role as
upcoming president of the G8 and the European Union, should work
to ensure that the International Maritime Organisation gives priority
to producing an internationally binding agreement which sets out
how ships should be dismantled. Such an approach must avoid the
difficulties associated with the current tortuous arguments which
try to determine when a ship becomes waste. We urge the Government
to encourage the International Maritime Organisation to concentrate
its work on a best practice agreement which applies at the point
of dismantling. The Government should seek to ensure that the
International Maritime Organisation does not allow itself to be
side-tracked into the difficulties of agreements which try to
adjudicate on how international waste transfer arrangements affect
the way in which ship dismantling is conducted. (Paragraph 30)
Government agrees that a solution needs to be developed
through the IMO. While the Marine Environment Protection Committee
of the IMO has recently made good progress towards implementing
the IMO Ship Recycling Guidelines, in particular developing a
reporting scheme, developing the format of a ship-recycling plan
and identifying elements of the Guidelines which could be made
mandatory, a legally binding instrument is likely to be required
in the longer term.
The recently established Joint Working Group will
look at existing guidance on ship dismantling within its three
member organisations with a view to identifying gaps and overlaps.
It provides an opportunity to identify long-term solutions that
include control elements which address the concerns of the member
organisations. In the short term the IMO should progress work
to implement its guidelines.
The UK takes on the G8 Presidency in 2005 and Presidency
of the European Union in the second half of the year. While the
environment, in particular climate change, will be one of the
priority issues for our G8 Presidency, it is not intended that
discussions on ship dismantling will feature at this stage. The
global problems of ship dismantling require an international solution
developed and agreed by flag states and ship recycling states.
While the G8 and the European Union include some of the major
flag states, they do not represent major recycling states. The
Joint Working Group offers a more comprehensive and suitable membership
for progressing this matter.
Nevertheless, we are keen to see progress on this
issue. We will therefore review the merit of G8 and EU discussions
on this issue after the first meeting of the Joint Working Group,
ahead of the 53rd session of the Marine Environment
Protection Committee of the IMO in July 2005.
Given the range of international discussions on the
application of international waste controls to movements of end-of-life
vessels that are already planned, or taking place, Government
does not see value in establishing additional discussions on this
issue. However, future discussions must focus on practical solutions
that provide an enforceable control framework.
Recommendation 4
Given the international nature
of the shipping industry, any action or regulation to address
ship dismantling will be effective only if it is agreed at an
international level. Furthermore, if an initiative is really to
work, it would have to be taken under the aegis of the International
Maritime Organisation in order to circumvent the problems associated
with ships changing flag and owners declaring their intention
to dismantle a vessel only once it is on the high seas. (Paragraph
38)
We agree with the conclusion of
the Committee that in effect a legally binding international solution
is required. Any international solution must involve the IMO,
and must address the fact that while states have the power to
make laws obliging the ships flagged to them to go for responsible
ship dismantling, under international law shipowners may legally
re-flag their vessels with another state.
Recommendation 5
We therefore warmly welcome
the decision to form a joint working group of the Conference of
the Parties to the Basel Convention, the International Maritime
Organisation and the International Labour Organisation. We urge
the Government to ensure that it has meaningful input into the
deliberations of the working group. We hope that the working group
will clarify when a ship is to be regarded as waste and how best
to apply the principles of international waste legislation to
those parts of a defunct vessel that cannot be re-used or recycled.
(Paragraph 39)
Given the unique, global, nature
of the shipping industry, application of transfrontier shipment
of waste controls do not provide an effective, enforceable, control
framework, as the controls can be circumvented. Nor do they address
the issues of health and safety of the workers and others involved
in shipbreaking. Government would prefer that the Joint Working
Group focus on identifying practical solutions that can meet the
interests and requirements of its three member organisations.
We expect that any such solution will need to be taken forward
through the IMO.
Recommendation 6
We note the Minister's hope
that the United Kingdom will be included in the working group
and urge the Government to seek to play as active a role as possible
in it. (Paragraph 40)
The United Kingdom was confirmed
as one of five regional representatives for the Basel Convention
on the Joint Working Group. We intend to play an active role in
the group in order to expedite its work and push for progress
on this matter as soon as possible.
Principles of responsible ship recycling
Recommendation 7
We take the view that it would
be extremely difficult to assign responsibility for the way in
which a ship is dismantled to any but the current owner. However,
the current owner, regardless of how long they have owned the
ship and regardless of whether they bought the ship as a going
concern or with the intention of selling it for scrap, should
be responsible for ensuring that the ship is dismantled to internationally
acceptable standards of health, safety and environmental protection.
(Paragraph 45)
Government agrees that responsibility
for dismantling of end-of-life vessels should rest with the last
ship owner. An enforceable international control framework for
end-of-life vessels would provide a level playing field for ship
dismantling standards worldwide.
However, we are concerned that
any new controls will push old vessels onto flags which may not
fully implement controls on ship dismantling or other relevant
international obligations. Any new control framework will need
to address this issue.
Recommendation 8
We accept that it may be difficult
for smaller ship owning companies to assess the quality of dismantling
facilities and we therefore recommend that the Government consider
how an international standard could be developed, which could
be used to certify qualifying dismantling yards. (Paragraph 46)
It is not clear yet what types
of controls would most effectively provide a level playing field
at the international level for ship dismantling. The development
of an international standard for sustainable ship dismantling
against which yards can be certified is one way of assisting smaller
ship owning companies in their choice of facility. The establishment
of such a standard and certification scheme could take many years
given the technical complexity of the issue and the political
sensitivities. Nevertheless, this is an option that should be
considered by the Joint Working Group.
Recommendation 9
For us, the most important consideration
in deciding where a ship should be dismantled is that the level
of health and safety protection for the workers and the environmental
protection at ship dismantling facilities meet the highest standards;
as stated above, we believe that such standards should be stated
in an internationally binding agreement which sets out a clear
statement of minimum standards of ship dismantling, regardless
of where the dismantling takes place. The Government should work
to ensure that the International Maritime Organisation gives priority
to producing such an agreement. It is clear that the majority
of large vessels are dismantled under wholly inadequate conditions
on beaches in Pakistan, India and Bangladesh; it is unacceptable
that OECD-based companies, who are also members of the International
Maritime Organisation, should continue to permit their vessels
to be dismantled in this way. (Paragraph 53)
Government agrees that there is
a need for clear minimum environmental and health and safety standards
for ship dismantling. We will consider what action or guidance
can be taken/given to prevent owners of UK-flagged vessels from
beaching their end-of-life vessels as part of our work to develop
the UK Ship Recycling Strategy and the UK Sustainable Shipping
Policy.
Recommendation 10
As regards ship dismantling
in the United Kingdom, the decision to grant or deny permission
for ship dismantling facilities is clearly for the planning authority
concerned and the environmental and health and safety regulators.
However, it seems to us that the UK has the potential to establish
an industry in ship dismantling which can be done safely and offer
economic benefits to the communities in which it is carried out.
(Paragraph 54)
Government is keen to see the establishment
of high quality ship recycling facilities in the UK. Although
each recycling proposal will continue to be considered by the
regulators on a case by case basis under the current environmental,
planning and health and safety legislative framework, this should
not impede the development of such facilities. We believe that
the UK has the skills base and expertise to operate such facilities
safely and that such an industry can offer economic benefits to
surrounding communities.
Investment in facilities is a commercial
matter, but we will seek to identify means of encouragement through
our work to develop a UK Ship Recycling Strategy. We will also
consider the merits and methods of issuing guidance to planning
authorities, and other regulators, on this matter, as part of
this work.
Action at the United Kingdom level
Recommendation 11
We welcome the Government's
decision to produce a ship recycling strategy. The strategy's
scope, as outlined by Defra, is commendable. We recommend that
it also set out how UK Government policy will interact with and
push forward the international agenda. (Paragraph 56)
Government agrees it is crucial
to ensure work on the Strategy reflects and interacts with developments
internationally, as steps to encourage the development of a viable
UK ship recycling industry should not preclude the need for a
wider international solution to the issue. One of the key objectives
for the Strategy is to inform the UK Government's position for
international negotiations on ship dismantling. Government is
actively engaged in international discussions on ship dismantling
(in the forums of the Basel Convention and the IMO) and will be
one of five regional representatives of the Basel Convention on
the Joint Working Group. It is expected that Joint Working Group
discussions (the first of which is to be held 15-17 February 2005)
will work towards establishing and enforceable control framework
for an internationally agreed regime on ship scrapping.
Recommendation 12
The need to eradicate irresponsible
ship dismantling is urgent, all the more so because all remaining
single-hulled tankers must be dismantled before 2015, many before
2010 and the oldest by the end of 2005. In this context, the Government
should tell us how it will use its forthcoming presidency of the
European Union and chairmanship of the G8 to encourage rapid international
action to ensure these tankers are dismantled in a responsible
way. (Paragraph 57)
Given the unique nature of the shipping industry,
action to tackle ship dismantling must be addressed at the international
level and controls must be discussed in parallel with capacity.
In light of the international phase-out of single hull oil tankers
the European Commission published a report on 'Oil Tanker Phase
Out and the Ship Scrapping Industry' which looks at the implications
of the accelerated EU phase out of such tankers. We will consider
the findings of this report as part of our work to develop the
UK Ship Recycling Strategy and assess whether there is merit in
G8 and/or EU discussions during our respective presidencies.
Recommendation 13
Government has most direct control
over the ships it owns, namely naval vessels. These should be
dismantled in a way that does not harm the environment or people.
We would welcome the development of a thriving ship dismantling
industry in the United Kingdom, which dismantled all defunct state-owned
vessels to the highest standards of health, safety and environmental
protection. (Paragraph 58)
The primary focus of the Strategy
is to establish national policy to ensure UK Government-owned
vessels are recycled in accordance with acceptable environmental,
health and safety standards. An audit of UK Government-owned vessels
has shown that naval vessels constitute the majority of vessels
which are classed as Government-owned, although there are numerous
other fisheries, research and patrol vessels which are owned by
government agencies. These vessels will be considered within the
scope of the Strategy.
A 'UK only/first' policy for Government
owned vessels is not legally viable in the light of the Government's
commitments under the Government Procurement Agreement. Nevertheless,
we will explore options for ensuring the dismantling of Government-owned
vessels in an environmentally sound way with due regard for health
and safety.
A separate study of ship recycling
facilities in the UK is being commissioned to inform work on the
Strategy. A key objective of the study is to identify both the
technical and regulatory requirements to operate ship recycling
facilities in the UK, and the facilities currently operational
in keeping with these requirements. In addition, the study will
investigate how the development of such facilities may be encouraged
by identifying possible sources of EU, national, regional and
local assistance (including funding).
Irrespective of the assistance
provided to those wishing to setup ship recycling facilities in
the UK, the establishment of these facilities still remains a
commercial decision undertaken by the relevant business entity.
Recommendation 14
We expect that the presence
of such facilities would act as a catalyst to enable UK-based
ship owners to have their commercial vessels dismantled here.
However, we recognise that responsible recycling will impose a
cost on ship owners and recommend that the Government explore
ways of mitigating that cost. (Paragraph 59)
Ship-owners based in the UK do
not necessarily have vessels registered to the UK-flag, and so
the UK does not have regulatory control over such vessels. Nevertheless,
we agree that the Government has an opportunity to lead the way
in ensuring UK-owned ships are recycled in accordance with acceptable
environmental, health and safety standards. Establishment of a
ship recycling industry in the UK would encourage this and identifying
potential sources of assistance and funding for those wishing
to establish facilities is integral to the recycling facilities
study being undertaken. However, the economics of ship dismantling
cannot be overlooked in that ship owners would be likely to incur
a cost to recycle responsibly in the UK, whereas in Asia they
receive payment for obsolete vessels. While mitigating the costs
the ship owner would incur by recycling in the UK is desirable,
other solutions, such as greening/improving standards in Asia
and encouraging responsible corporate practice in the shipping
industry, are being considered. The Maritime and Coastguard Agency,
in conjunction with the Institute of Marine Engineering, Science
and Technology, will host a Sustainable Shipping Conference in
February 2005 which it is anticipated will build upon these solutions
and contribute to a Sustainable Shipping Policy.
Recommendation 15
We recommend that, pending greater
international regulation of ship recycling, the Government consider
how best to persuade UK-based ship owners to adhere to the IMO
guidelines and ensure that their vessels are dismantled, and seen
to be dismantled, with the minimum impact on human health and
the environment. (Paragraph 60)
The Strategy will set out interim
policy for the recycling of UK-flagged vessels, a cornerstone
of which is recommended adherence to the IMO guidelines. In addition,
the Government is shortly to consult on a Marine Guidance Note
to ship owners with UK-flagged vessels recommending implementation
of the IMO guidelines.
It is clear from recent meetings
held with industry that a number of UK-based ship owners are already
leading the way in supporting both the implementation of the IMO
guidelines and proposals that certain provisions of the guidelines
be made mandatory. The Government supports the ongoing work of
these ship owners and the IMO. In addition, it is anticipated
that Joint Working Group discussions will move this agenda forward.
Department for Environment, Food and Rural Affairs
January 2005
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