APPLICATION OF HAGUE RULES AS AMENDED (Hansard, 15 May 1970)

§ Mr. Charles Fletcher-Cooke (Darwen)

This Clause is the nub of the Bill. I should like to say a few words about it, prefacing them with a word of thanks to the Minister of State, Board of Trade, and his advisers for their great help to me in preparing the Bill and not least in seeing its way through so far. They have been kindness and efficiency itself.

Although at one time it looked as though we might lose the Bill, I am still hopeful, in spite of the times in which we live, that it will not be massacred, along with a lot of other innocents in the next few weeks, because the Bill blazes a trail by the United Kingdom for the ratification of the new Hague Rules related to the carriage of goods at sea. Clause 1 does just that.

The old rules do not take account of the great container revolution which has occurred. It is essential for the maritime community to have revisions of those Rules and for those revisions to be carried through into statutory force in all the great maritime nations. By what we are doing today we are setting an example and blazing a trail in that regard. It is over two years since the noble Lord, Lord Diplock, managed to lead these nations at the conference in Brussels to agree—and it was not difficult—to tile revisions. The revisions are in the Schedule to the Bill which Clause 1 makes effective.

The main proposal in the Clause and its annexures, Schedules and Protocol is that the limit of liability of carriers be raised from £100 to the equivalent in gold francs of about £270 per package. Higher but not lower limits can be negotiated between the parties. Moreover—and this is the important part of 1680 the Bill which must be passed unless the container business in a way is to be brought to a stop—packages inside a container could be enumerated separately on a bill of lading and would then count as separate packages for limits of liability. Hon. Members will appreciate the difficulty today where a container which may contain the most enormous and valuable assortments of goods is regarded as a single package for the purpose of limitation of liability—which is only £100—and therefore, the peril in which traders, shippers and ship owners find themselves. That is the urgency of the Bill and why the Clause is so important, and that is why I very much hope that the chopper—the Sword of Damocles—which looks as if it might descend upon our deliberations in the House and elsewhere will not hit this Bill.

The necessary changes to the 1924 Act were so numerous that it seemed sensible and more convenient to those whose interests are affected by this legislation to repeal the 1924 Act and to introduce a completely new Bill. Thus, Clause 1, which is the nub and crux of the Bill, with its appendages, gives those who have to deal with this branch of the law a very convenient place and method in which to find out not merely what the new law is but all the law on the subject. I therefore hope that the Clause commends itself to the Committee.

§ The Minister of State, Board of Trade (Mr. Goronwy Roberts)

As the hon. and learned Member for Darwen (Mr. Fletcher-Cooke) said, this Clause is the nub of the Bill. In supporting what he said, I can indicate the Government's complete approval and support for the Bill. I welcome the hon. and learned Member's initiative in introducing the Bill. He has explained the background to the signature of the Protocol at Brussels two years ago, when it was agreed that the Protocol would not come into effect until at least 10 nations had ratified it. It takes time, as he indicated, for Governments to consult all their domestic interests, before appropriate legislation is introduced, and to complete the necessary process of legislation and ratification. As he reminded us, over two years have elapsed. The Government welcome the opportunity, if 1681 the Bill becomes law, with this crucial Clause and its related Schedule as part of it, to give an example and lead to other Governments and, if I may quote the hon. and learned Member, to blaze the trail.

The Clause which sustains the Bill is simple and serviceable. The changes which the Bill introduces will bring the law more into line with the needs of modern sea transport. For example, the need for raising limits of liability set nearly 50 years ago is obvious. The hon. and learned Member also referred, quite rightly, but obliquely, to the container Clause. This illustrates strikingly the need for legislation to keep up with innovations. The other changes which partly stem from the Clause and partly from other Clauses are no less useful.

I am glad that the hon. and learned Member so rightly emphasised that the Protocol stemmed from an initiative by the commercial interests concerned. It forms a balanced set of improvements which will benefit shipper, carrier and underwriter alike. I understand that all the parties concerned are happy about the Bill. The Government support the Bill. I am pleased to commend it to the House and I congratulate the hon. and learned Member on the progress which he has achieved so far.