Fifth Report - Maritime 2050

We commend the Government for creating the first, and arguably long overdue, long-term strategy for the maritime sector in the UK. This showed a welcome commitment to the maritime sector, and recognition of its overall importance to the UK economy. We note that the sector has been complimentary about the process of collaboration and dialogue with the Government that produced the strategy. It is vital that such dialogue continues as Government priorities develop.

To avoid confusion for the sector, the Government needs to more clearly distinguish between which Maritime 2050 recommendations are specific actions and which are aspirations. To ensure the continued success of the Maritime 2050 strategy, the Government should review the current recommendations and set out key performance indicators and targets for each so that it is possible to track and assess where progress has or has not been made. The same constructive Government-industry dialogue that produced the strategy should also be used to streamline and prioritise its 184 recommendations, so that it becomes a more useful tool for tracking progress and accountability. (Paragraph 14) Trade

The maritime sector has demonstrated its resilience and adaptability in maintaining the supply chain in exceptionally difficult circumstances, with goods being transported throughout the covid-19 pandemic.

The Government’s publication timetable means that the next Trade Route Map update is due in 2024. Given the global shocks that have occurred since 2019, there is a need for a permanent resilience plan, not just a singular response to the pandemic. The Government should bring forward the publication of the updated Trade Route Map as soon as possible, focussing on how it will assist the industry to build and maintain long-term resilience in supply chains. (Paragraph 24) Competitive advantage

The Department for Transport should continue to fund the Regional Council and assist in the development of potential new regional maritime clusters while assessing the benefits of existing clusters for levelling up.

The size of a ship register is a measure of the success of a flag state and a way to exert influence on standards and welfare across an international sector. We welcome the Government’s recognition that if the UK wishes to maintain its status, serious efforts must be made to grow the UK Ship Register. Establishment of the UK Shipping Concierge Service and simplification of tonnage tax are two positive steps to achieving this.

As with other elements of Maritime 2050, adoption of a concrete target for growth of the UK Ship Register would assist in concentrating minds on this goal. (Paragraph 42) 56 Maritime 2050

As an investment in the maritime workforce and a way to capitalise on the reputation of UK maritime training, tonnage tax needs to retain its training link. (Paragraph 43) Environment

The maritime sector is global, and the UK cannot regulate it alone. To reach the Government’s net zero target, we welcome the Government’s commitment to live up to its world-leading maritime status and push for the net zero target at the International Maritime Organization.

The UK must have a defined plan for decarbonising the maritime sector with clear, measurable targets for both home and abroad. The 2019 Clean Maritime Plan was a good starting point, but a more focused plan for achieving net zero in 2050 is now necessary. The industry needs certainty about the part it will play, the fuels and vessel types that will be supported, and the regulatory environment which will be in place to achieve the target. Having originally promised it in 2022, the Government should now bring forward the refreshed Clean Maritime Plan without further delay.

The Government’s aim of becoming a world leader in developing clean maritime technologies is ambitious and will aid the UK’s competitive advantage. There is an urgent need, however, to scale up and commercialise existing technologies, which may assist in reaching net zero more quickly. We believe this is an oversight in current funding streams.

We welcome the creation of UK SHORE as a positive first step. The Government must commit to long-term investment and target some funding at commercialisation of mature technologies to help reach the net zero target.

Evidence to our inquiry strongly suggests that Government investment will be part of the solution needed to make widespread provision of shore power viable. The match- funding announced in February 2023 is a sign of good intentions, but support must be sustained and at a level likely to effect widespread adoption. The refreshed Clean Maritime Plan should include a practical action plan for realising shore power as an essential contributor towards reaching net zero in maritime. (Paragraph 77) Technology

There is a fine balance that needs to be struck when it comes to regulating for smart shipping and autonomous vessels. It is important that innovation is able to flourish whilst ensuring that safety standards are maintained and that there is a measure of certainty to guide investment. Leadership and coordination—of the kind promised by the proposed Centre for Smart Shipping—are also crucial. There is a major commercial opportunity for UK innovators, who have been at the forefront of developing marine and maritime autonomy to date. This momentum must not be lost.

The Department for Transport should publish the outcome of its consultation on maritime autonomy and remote operations as soon as possible so the sector has a Maritime 2050 57 clear understanding of the regulatory framework it will be operating within. The necessary reforms must be legislated for at the earliest opportunity; if not in the current parliamentary Session, then as a priority in the next.

The Department for Transport should establish the Centre for Smart Shipping as soon as possible, empowering it to work with the sector and with the Maritime Future Technologies Team to enable innovation to prosper.

The Government needs to act as a consolidator and facilitator to draw together disparate approaches to cybersecurity in the maritime sector. The 2017 Cyber Security Code of Practice for Ships should be updated as soon as possible. The Government should use its influence at the International Maritime Organization to set the agenda for minimum international cybersecurity standards.

There are a number of challenges facing innovation in the maritime sector. Some of these the Government has started to address, such as by supporting an Innovation Hub at the Port of Tyne, to help break down barriers to collaboration. We welcome this.

A significant further challenge is a “scaling-up gap”, whereby new innovations are developed with the help of research and development or seed funding, but making the leap to widespread use and commercialisation of those innovations is much more difficult.

To help bridge the “scaling-up gap”, the Department for Transport should work with the Department for Business and Trade and the Department for Science, Innovation and Technology to develop business skills support for SMEs in the maritime sector. Future iterations of the Technology Route Map should set out a clear strategy for supporting commercialisation as well as development of marine and maritime innovation. (Paragraph 108) Infrastructure and ports

We welcome the Government’s intention to call for evidence on planning and delivering infrastructure for the freight and logistics sector. This must include questions about the planning process and the hurdles that are being faced by the maritime and ports sectors in this area. We urge the Government to bring forward this consultation without further delay, and to use the outcome of it, in combination with the 2018 Ports Connectivity Study, to develop concrete priorities and plans.

We welcome the Government’s announcement that it intends to review the 2012 National Policy Statement for Ports. We urge prompt completion of this review to ensure the NPS remains an effective tool in securing the infrastructure development needed by ports in a timely way.

We have heard evidence suggesting that the Marine Management Organisation may be acting as a stumbling block rather than a facilitator of a thriving maritime economy. The Minister for Maritime needs to work with the Secretary of State for Environment, Food and Rural Affairs to improve operations within the Marine Management Organisation and the service received by ports, which rely on it for prompt advice in securing development while preserving the marine environment. (Paragraph 124) 58 Maritime 2050

Coastal shipping and inland waterways have been overlooked within Maritime 2050. We agree with the sector that this is a missed opportunity. To fully harness the UK’s competitive advantage, the Department for Transport should undertake its promised research into the potential for coastal shipping and inland waterways, which should be seen as an area of growth for domestic seafaring jobs.

A three-year grant scheme is not suitable for the maritime sector, which operates on long timescales and requires support for capital costs. The Government should reintroduce the Freight Facilities Grant in England and review the Mode Shift Revenue Support Scheme and Waterborne Freight Grants to make sure that they are suitable for the maritime sector and will be effective in achieving modal shift. These funding streams will only realise their maximum benefits, however, if they are not simply used as a way of cutting costs by those cargo ship and bulk carrier operators who use the low-cost crewing model. (Paragraph 134) People

The maritime sector is undergoing major technological changes, which has an impact on the current and future skills requirements for officers, ratings and shoreside workers. It is critical that the UK’s maritime skills base keeps pace with technology and removes barriers to domestic training and employment opportunities for UK- resident seafarers.

To invest in the maritime sector, the UK must invest in its people. The Government should carry out a review of training funding in the maritime sector—establishing if there are barriers to access and how the system can be improved. This should include an assessment of the potential costs and benefits of providing fully funded training places for officers and ratings.

By its own admission, the maritime industry recognises that diversity in the workforce needs to improve. It also faces a visibility challenge, with awareness of the wide variety of exciting careers available in the sector being low. Expanding the talent pool and making maritime career paths better known are directly linked, and require sustained effort from both the sector and Government. (Paragraph 153) Maritime 2050 59

P&O Ferries’ treatment of workers in March 2022 has not only affected the 800 seafarers directly involved but damaged the perception of the maritime sector for potential new recruits. It is imperative that the Government ensures that seafarers and potential future seafarers know they are valued and are not deemed expendable. This is essential for both maintaining the current talent pool and enabling it to expand in the future. To this end, we call on the Government to publish a report on its nine- point plan for seafarers’ protections as soon as is practical.

We commend the work that the Government has done regarding the welfare of seafarers during the pandemic. Their recognition of seafarers as key workers is important. This is an essential step in ensuring that seafarers have both the recognition and support that they deserve.

Welfare standards are inextricably linked to contractual terms and conditions, however. It is not sufficient for the Government to rely on the glacial progress made in amending the Maritime Labour Convention. The MLC is a set of minimum international standards designed for the deep sea sector—not, for example, for short sea ferries. The Government must take the lead by showing its ambition to significantly exceed these minimum standards.

All seafarers should be paid a reasonable wage and be guaranteed good working conditions, including safe roster patterns. We did not take evidence specifically on the provisions of the Seafarers’ Wages Bill, but we consider that while it is in itself a welcome and necessary step, it will not be sufficient to ensure proper treatment of seafarers.

The Seafarers’ Wages Bill’s aims must also be supported by the promised welfare charter, which we urge the Government to bring forward as soon as possible. This must include concrete action to hold employers to high standards and to support better mental health among seafarers, and must be underpinned with funding where necessary. We feel that the Government’s current plan to ask operators to sign up voluntarily will not give the assurances and protections that seafarers want and deserve. We therefore call on the Government to make signing up to the charter a mandatory requirement for all UK maritime operators. The relationship of this work to the ‘social framework’ envisaged by Maritime 2050 should be clarified. (Paragraph 171) Cross-government working

The Department for Transport in its own 2015 report advocated for both a cross- Whitehall team and a Ministerial Working Group for maritime. We agree that these mechanisms would provide a helpful focus for collaboration to support the industry. To improve the interdepartmental understanding of the maritime sector, the Maritime Minister should convene a maritime Ministerial Working Group. The Maritime Minister should also ensure the input of the maritime trade unions.

For the ports sector to be effective and competitive it is important that the government department and agencies they work with have a good understanding of their role and competencies. We note that, alongside the responsibility of the Maritime and Coastguard Agency to investigate compliance under the Seafarers’ Wages Bill, there will be important enforcement roles for harbour authorities including, ultimately, 60 Maritime 2050 refusing access to their ports to non-compliant operators. This is potentially a worrying sign that the role and responsibilities the Government expects of ports are subject to mission creep.

The Department for Transport should take leadership on clarifying across Government the role of ports authorities and protecting them from inappropriate enforcement burdens. Ports authorities cannot be used as the Government’s ‘Swiss Army knife’ to undertake an ever-greater variety of tasks without appropriate resourcing and expertise. (Paragraph 181) Maritime 2050 61