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Mr. Carmichael: Like the hon. Member for Harwich, I am not a member of the Committee. It seems to be a peculiarity of the way in which we order our business in this place that those who attend as members of a Committee rarely have much to say, whereas occasionally we find ourselves in a situation where those of who are not members feel the need to contribute.
I congratulate the hon. Member for Canterbury on bringing this matter before hon. Members today. It is a timely ventilation of a genuine issue. There are never enough opportunities for Parliament to discuss lighthouses. This is the third time that there has been a debate on lighthouses in my eight and a half years as an MP, and I am proud to place on the record the fact that I have contributed to all three debates.
That said, I hope that the hon. Gentleman accepts that the mechanism by which the matter has come before us for debate today is something of a nuclear option, and that if the Committee were minded to follow his suggestion and revoke the increases order, that would have dire consequences for the general lighthouse authorities. The hon. Gentleman heard the quote that I read out from the chief executive of the Northern Lighthouse Board, who is not a man given to overstatement. When he says that the revocation of the increases would leave his organisation unable to cover its core functions relating to the safety of mariners, we must take that warning very seriously.
Mr. Brazier: I am most grateful to the hon. Gentleman, but I hope that he will acknowledge that the Government brought us to this option, both by their failure in negotiations with Ireland and by their failure to introduce legislation that all our parties would welcome. Will he also accept that a steady reduction in traffic coming to the UK will have the same effect on the budgets of the lighthouse authorities?
Mr. Carmichael: To deal with the first question first, yes, I accept that the Government’s record is less than exemplary. We have been talking about the Irish question for as long as I have been in the House and, no doubt, for decades before that. I fervently wish that somebody somewhere someday would take hold of it and deal with it properly, but that is not available to us today. We are talking about the here and now for the lighthouse authorities, and the here and now is that they need the money to cover their core functions and in particular to meet their pension fund obligations. If hon. Members were minded to refuse to increase light dues in the way proposed, that would have serious consequences.
The hon. Member for Canterbury is a fair-minded gentleman. I hope that, having given us the opportunity to ventilate the concerns, he will not consider it necessary to divide the Committee—subject, of course, to anything that we may hear from the Minister, which may change our minds. The fact is, however, that there is a serious problem with the funding and operation of the GLAs. The regulations must be put in the proper context, which is that since 1993, light dues have been drastically and repeatedly reduced but they now need to be increased. However regrettable that may be, it is a bullet that has to be bitten.
Let me take this opportunity to say to the Minister we are trusting him to tackle the Irish question seriously, because that continued subsidy must be tackled. We know that that will not be done in time for the start of the next financial year—the problem has been with us for more than 80 years, and we must be realistic about the opportunity of solving it before 5 April. However, serious efforts must be made.
There is also the question of the Atkins review of the operation of GLAs. Touching on the point made by the hon. Member for Canterbury, I want to place on the record my concern that the official Opposition spokesman appears to be suggesting a merger between Trinity House and the Northern Lighthouse Board. That way lies madness. The idea that Muckle Flugga lighthouse, north of my constituency, will be operated from Trinity House—it probably would be from Trinity House—is utter madness. The manner in which the existing boards have been able to work together to share some of the costs and to achieve significant economies through joint working shows that there is an opportunity to have the best of both worlds, and that simply creating one behemoth GLA for the whole of the United Kingdom would not be desirable or effective. Any cost savings would be outweighed by the disbenefits.
Mr. Brazier: I am grateful to the hon. Gentleman for giving way once again. That was not a commitment on our part; it is simply an option that we think is worth looking at in the light of the huge advances that have been made in technology. It is something which could not have been considered 10 years ago but may well be, and certainly should be, looked at now.
Mr. Carmichael: The hon. Gentleman can look at whatever he chooses to look at. My confident prediction is that if he looks at the situation in the objective and fair way for which he is known, he will in fact see, given the willingness of the lighthouse boards to work effectively together and to make shared economies where they can, that no real benefit would attach to merging the bodies as he has suggested. I am sure that the Conservative candidate for Orkney and Shetland would be delighted to hear that the proposal is not yet a Front-Bench commitment.
In his intervention, the hon. Gentleman also talked about the reduction in shipping. Again, that is a possibility that we have to take seriously, but I have to say to him and to the Committee that the case for abolition of light dues is one that the shipping industry has been making for as long as I can remember—certainly long before the current economic downturn and any decrease in traffic. I do not discount completely the dire predictions that we have heard, but I urge the Minister and the Committee to treat them with a measure of caution. It seems to me that the industry is taking advantage of the economic downturn to pursue a goal that it has pursued for long enough.
The point is that if we abandon the present set-up, many people will be brought into the equation for paying light dues. The Atkins review is looking specifically at that. Is the hon. Member for Canterbury or the Minister seriously suggesting that leisure boats, fishing boats, warships and other seagoing vessels that are not currently liable to pay light dues should be brought into the scope of having to pay them? Once one takes the shipping industry’s line, a range of factors have to be considered. The Government’s approach in setting up the Atkins review is broadly right and they are to be commended.
My final point is that the Northern Lighthouse Board was described to me recently as a pension fund with a few lighthouses attached. Given how the boards have operated in recent years and the fact that nearly all our lighthouses—if not all of them—are now automated, the Committee will understand how that position has arisen. The scope in the overall budget for further efficiencies must be limited, but the boards cannot avoid their commitments to the pension funds. The commitments that they have some flexibility over are their core functions, but they provide safety to those who use the sea around our coastlines and island communities. That is something that we should not play with without the most careful consideration.
5.4 pm
Mr. Peter Kilfoyle (Liverpool, Walton) (Lab): Before the Minister responds, I would like to make an observation and ask a question. The observation is based on my being a member of a large family of merchant marine seafarers, and on an involvement of 25 years or more with the successful Mersey Docks and Harbour Company.
I have never in all my time in politics or, indeed, in life come across a bigger bunch of whingers and whiners than the shipowners. They will whinge and whine about anything and everything, yet, when it suits them, they will flag their vessels away and prevent British crews from working on the ships. For many of us, there is no love lost towards the ship owners, who must make a better case than the one I have heard today.
Page 7 of the memorandum mentions a cap of 35,000 tonnes, for which £12,250 must be paid. Will the Minister explain the rationale for that, given that one company uses the port of Liverpool—and it is not alone—for a combined ro-ro container ship that provides a regular service between Europe and the eastern seaboard of the United States? Is it correct that that 66,000 tonnes deadweight vessel will pay only the same as a vessel nearly half its displacement?
5.6 pm
Mr. Bernard Jenkin (North Essex) (Con): I apologise to the Committee for failing to be present for the opening statements of the Minister and my hon. Friend the Member for Canterbury. I was unavoidably detained at the defence statement.
I do not wish to detain the Committee long, but I wish to place on record my concerns. I endorse every word uttered by my hon. Friend the Member for Harwich. As Member of Parliament for the neighbouring constituency, I also have constituents who are employed by Trinity House, and they have taken the trouble to brief me with their perspective. Trinity House is an admirable organisation, a technological world leader with a great deal to contribute.
I speak also as chairman of the newly formed all-party group on homeland security. There has been talk in Government of the huge expense of trying to construct a maritime picture of all the movements of shipping and vessels around the United Kingdom. Trinity House will tell you, Mr. Cummings, that this is a very achievable task and that it has all the radars and the necessary information. All that is required to ensure the massive increase in maritime security that is required in a world of modern threats is the will and a limited amount of money to provide interfaces between the different radar systems. That would provide a central facility or facilities necessary to provide much better maritime security around our island kingdom.
The contribution of Trinity House and the other lighthouse boards to maritime safety is unquantifiable. We are not just talking about the merchant shipping industry; we are talking about the profusion of medium-sized and small craft that use our coastal waters. I believe that we need the review that the Minister has mentioned today; we need to look at ways of expanding the resources available to Trinity House, in order to improve the service it provides. As a yachtsman, I would volunteer that the leisure marine industry, with relatively low annual contributions, could make quite a significant contribution to the annual budget of Trinity House. It is not surprising that Trinity House subsidises other parts of the United Kingdom, given the concentration of shipping around the south-east of England, particularly through the English channel. Hundreds of thousands of leisure craft are registered for a fee every year. A small levy attached to that would be a very modest increase in the cost of yachting, but it would be willingly paid by the vast majority of leisure marine users on the basis that they are intensive users of the services and facilities provided by Trinity House.
Mr. Carmichael: On the question of Trinity House subsidising other parts of the UK, does the hon. Gentleman accept that the level of light dues paid does not necessarily reflect the use of aids to navigation? The dues tend to be paid to Trinity House because it is the first port of call, but there may be later calls, within either NLB or CIL areas, for which no payment is made, even though those aids to navigation are used.
Mr. Jenkin: I think I understand the hon. Gentleman’s point. I am merely pointing out that it is entirely natural that the vast majority of revenue is collected in the south-east of England. To that extent, the south-east of England subsidises the other parts of England and Wales, so to look for some kind of equitable and neutral flow of funds between the lighthouse boards would be a little unrealistic. I feel that I have placed on the record the points I wanted to make. I respect the position adopted by my hon. Friend the Member for Canterbury, but I think that the right way forward is a proper—
Mr. Brazier: As he came in late, my hon. Friend may have misunderstood my position. Neither I nor anyone else in the debate has suggested a more equitable flow of funds between the lighthouse boards on the basis of geography. All we have suggested is that Ireland—an independent state—should pay its share of the costs, and that has been a refrain throughout the time I have been in this job. The independent republic of Eire should pay its 85 per cent. of the Irish dues.
Mr. Jenkin: That is a separate point. I was picking up a different point from the hon. Member for Orkney and Shetland and, of course, apologise to my hon. Friend, because I was in ignorance of what he said earlier. I have some sympathy for his point about Ireland, which is another matter that must be addressed. I am grateful for your indulgence, Mr. Cummings, and that of the Committee.
5.12 pm
The Parliamentary Under-Secretary of State for Transport (Paul Clark): It is a pleasure to serve under your chairmanship this afternoon, Mr. Cummings. We have certainly had an interesting debate. Several points have been made, to which I wish to respond as succinctly as possible.
Although the Opposition Front Benchers rightly recognise that the sea channels are our arteries as a seafaring nation, it appears that they wish to apply a tourniquet to those arteries, which would cause problems and potentially threaten safety, for which we are renowned, in some of the world’s busiest shipping channels; those channels are critical to our well-being, as around 95 per cent. of all goods come by sea.
I am acutely aware of the challenges and difficulties faced by all stakeholders in the shipping and ports industry. During the summer recess, I took the opportunity to visit a number of the ports to have discussions with shipping industry participants, and I visited both the NLB and Trinity House to see the work that they have done. I recognised the substantial commitment, to which hon. Members referred, and hard work undertaken by all three lighthouse authorities to reduce costs in several ways. They have used new technologies, reduced staff, adopted better working practices and made better use of their equipment and resources, and I congratulate them on that. However, the overriding concern is that safety is not compromised in the delivery of those cost reductions. Otherwise, that would do us no good whatever.
Mr. Adam Holloway (Gravesham) (Con): Does the Minister plan to address the imbalance in revenues so that Trinity House revenue is not subsidising Irish lighthouses?
Paul Clark: With due respect, Mr. Cummings, I wish that I had not given way. Obviously, I have only just started; of course I will deal with the financial position and the reason why we believe that it is right that light dues should increase. I make no comment on the colourfully descriptive words used by my hon. Friend the Member for Liverpool, Walton, other than to say that it is right that the light dues were last increased in 1993, and then cut in 1997, 2002, 2004 and 2006, because we listened to what the industry said about its requirements and did not wish to burden it unnecessarily.
I will deal with three points: the structure, the Irish question and light dues. We are considering carefully how the service can be more efficient and effective with a different structure. I do not need to tell right hon. and hon. Members that the structure has developed over a period of honourable history for all three lighthouse boards. That historical legacy is partly the cause of some of the criticisms levelled at the authorities. However, there is no problem with tradition as long as it does not interfere with efficient delivery of services.
We have appointed WS Atkins as consultants, and I have asked the firm to report by March 2010. The consultants will consider many of the issues raised by hon. Members today, and will examine the structure to see whether there are any potential synergies in the delivery of services. However, that does not necessarily include the amalgamation of authorities by any means; because of distinctive coastlines and regional requirements, individual authorities’ roles and knowledge are required to ensure that navigation remains safe. The consultants will also consider the management of the aids to navigation services, the management of the general lighthouse fund and the issue raised about co-operation between the UK and Ireland. I will deal specifically with the Irish question in a moment.
I have asked for the report to be delivered by March next year. I do not want to speculate on its findings, as I do not want to prejudice what I have asked the consultants to do, but we need the advice. I know that the firm has made an excellent start on consulting, discussing and undertaking talks with interested parties on the range of issues to which I have referred.
The second point involves the Irish question. It is right that the Irish lights and their funding should be part of the Atkins assessment. Equally, as Members are aware, my predecessor, the hon. Member for Poplar and Canning Town (Jim Fitzpatrick), undertook discussions with his counterpart in Ireland, and it was agreed after a report and a review that the split should change from 70:30 to 85:15. That is a step in the right direction, but we continue to hold dialogues to see how much further we can take that, recognising the issues raised. The Atkins report will continue to do its work in parallel with the work that we are undertaking. I am in consultation with my Irish counterpart, Noel Dempsey.
 
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