THE COST OF THE LICENCE
28. The two organisations representing inland shipping
operators both expressed concerns about the cost of acquiring
the new licence. The examination fee for a new licence is £141,
plus a £22 fee for issuing the licence. Each examination
for an endorsement costs a further £100.[45]
This means the total fees payable in respect of a BML with general
cargo endorsement (the equivalent of the EU Certificate) is £263,
or £363 if a local endorsement is added.
29. However, the cost of training courses and time
off work must also be taken into account. The Commercial Boat
Operators Association argued that the dispersed nature of the
inland shipping industry means that few masters live near to a
training provider and many will therefore face additional travel
and accommodation costs.[46]
The Inland Waterways Association was concerned about the potential
training costs faced by its volunteer teams working on restoring
and maintaining the inland waterways.[47]
Witnesses from the trade unions also expressed some concerns about
the possible training cost, noting that there would be a "significant
increase" which might act as a barrier to entry.[48]
30. It is too early to say with certainty what the
average cost of training courses is likely to be, but we were
quoted figures between £600 (for the basic classroom training
for a Tier 2 licence) and £7,500.[49]
The industry's recruitment difficulties mean that there are few
economies of scale enjoyed by those training new entrants, further
increasing the cost of training and thereby exacerbating the recruitment
problem.[50] Mr Hugman
of the Commercial Boat Operators' Association went so far as to
suggest that the additional training costs could be enough to
destroy the industry outside the Thames.[51]
For many operators it is not just the cost of the training itself
that is a problem but the cost of associated travel, accommodation
and replacement crew cover.
31. The inland shipping industry is facing a recruitment
crisis. Long and unsocial hours of hard work in all weathers,
combined with rewards that are often not much more than the national
minimum wage, do not combine to make this an attractive occupation
for a great many young people.[52]
An expensive and demanding training regime will make this problem
worse. On the other hand, we accept that introducing a new requirement
for the licensing of masters of freight vessels was fully justified
on safety grounds and is likely to increase confidence in the
industry.
32. The new, modular licence attempts to reconcile
the competing needs of different groups in the inland shipping
industry. It attempts to combine higher training standards for
the busier, more difficult waters such as the Thames with a lower
standard for smoother, quieter waters where recruitment and training
problems are more acute. Whether it will succeed in doing so remains
to be seen, but we have noted with concern the views of those
operators outside the Thames area who feel that the training costs
associated with the licence could be prohibitively high.
33. Although we accept the principle that the industry
should meet its own training costs, there are clear external benefits
to shifting freight from the roads to the waterways in the form
of reduced emissions and road congestion. Furthermore, the Government
already provides significant financial assistance for the training
of seafarers under the Support for Maritime Training (SMarT) scheme.
The Government must monitor the situation closely to see if
the cost of training new masters does become a problem. If it
becomes apparent that the cost of training new masters is damaging
to the industry, we recommend that the Government provide appropriate
assistance, for example in the form of subsidised training courses,
to protect the health of the industry.
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