Commons Sitting of 9 April 1987

Preamble
The House met at half-past Two o'clock
PRAYERS
[MR. SPEAKER in the Chair]
PRAYERS

  Royal Assent
  Mr. Speaker: Order. I have to notify the House, in accordance with the Royal Assent Act 1967, that the Queen has signified Her Royal Assent to the following Acts:

  1. Animals (Scotland) Act 1987

  2. Broadcasting Act 1987

  3. Gaming (Amendment) Act 1987

  4. Petroleum Act 1987

  5. Minors' Contracts Act 1987

  6. Recognition of Trusts Acts 1987

  7. Reverter of Sites Act 1987

  8. Exeter City Council Act 1987

PRIVATE BUSINESS
  YORK CITY COUNCIL BILL [Lords] (By Order)
    CITY OF WESTMINSTER BILL (By Order)
      TEIGNMOUTH QUAY COMPANY BILL (By Order)

        LONDON DOCKLANDS RAILWAY (BECKTON) BILL (By Order)
        Orders for Second Reading read.
        To be read a Second time upon Thursday 23 April.

Oral Answers to Questions
  NORTHERN IRELAND

    Lough Neagh
    Mr. Dubsasked the Secretary of State for Northern Ireland whether he will initiate a study on the long-term effects of toxic waste in Lough Neagh.
    The Parliamentary Under-Secretary of State for Northern Ireland (Mr. Richard Needham): A study by the Ulster university on chironomids in the Lennymore bay area of Lough Neagh is under way. This, together with the studies of algal growth and pesticide residues already being carried out by the Department of Agriculture, will indicate the effects of toxic waste.
    Mr. Dubs: Will the Minister confirm that in January this year there was a significant spillage of a highly toxic chemical called tributyl tin oxide into Lough Neagh and that, while it may not pose an immediate threat to people who drink the water, there is a serious possibility that this chemical is dangerous to wildlife and plantlife in the lough? Does the Minister agree that a survey should be carried out into the effects of that spillage so that we know what is happening and to give an assurance to local people who are concerned about it?
    Mr. Needham: The hon. Gentleman is right in saying that there was a spillage, but as soon as it occurred my Department advised the Department of Agriculture, the Fishery Conservancy Board for Northern Ireland and the residents living near where the spillage took place. Three separate laboratories analysed samples from the lough, and I am pleased to tell the hon. Gentleman that the spillage was confined to the immediate area where the tributyl tin oxide was spilt. There was a feeling that perhaps the Department would have been better advised to have made a statement about the spillage as soon as it occurred. We took the view that that may have caused unnecessary alarm about the nature of it. When we checked, we found that the spillage was closely confined. Therefore, the results will not affect the lough. At the same time, we are ensuring that studies are taking place within the lough to check exactly what the position is.
    Sir John Biggs-Davison: Does my hon. Friend, with his Ulster nurture, recall that Finn McCool plucked out the land where Lough Neagh now is, hurled it into the sea, thus creating the Isle of Man, and that Lough Neagh is reputed in consequence to be bottomless? Did the studies to which my hon. Friend referred take into account the bottomlessness of Lough Neagh?
    Mr. Needham: I am afraid that that leaves me slightly out of my depth. My information is that Lough Neagh is a shallow lough, and my hon. Friend and I would not be likely to sink very far in it. I shall refer his question to Finn McCool for verification.
    Sir Peter Mills: Will my hon. Friend take account of the fact that in days gone by I have not only fished in the lough but eaten the excellent eels that come from it? Will he bear in mind that it is important to protect the eels and the eel industry over there, because when smoked the eels are probably the finest in the world?
    Mr. Needham: The ecology of Lough Neagh is of extreme importance, not only because of the quality of the eels and the pollan, which is a freshwater herring almost unique in the world, but because of the salmon and the trout. I assure my hon. Friend that I will do exactly as he asks, because I enjoy eating them as well.

    Accident and Emergency Services-
    Mr. Nellistasked the Secretary of State for Northern Ireland when he last met the chairman of the Eastern health board to discuss accident and emergency services in Belfast.
    Mr. Needham: I have frequent meetings, both formal and informal, with the chairmen of all four health and social services boards to discuss the range of services for which they are responsible. I met the Eastern board chairman on 2 March and 9 March and expect to meet him again at his board's forthcoming accountability review.
    Mr. Nellist: Did the most recent meeting that the Minister had with the chairman of the health board reflect the deep concern that is felt in the Lisburn area over the potential closure of the Lissue hospital, which is a specialist hospital serving the young mentally handicapped, and the serious possible closure of the Mater hospital casualty unit, which serves north Belfast, which is being considered by the board? Were that closure to go ahead, it would force people to travel up to 30 milies to Ballymena or to the city hospital and, therefore, potentially across sectarian lines where conflict may exist. Why are the Minister and the Secretary of State under-funding the Health Service in Belfast and Northern Ireland to such an extent that closures of such seriousness as this have to be considered?
    Mr. Needham: Lissue hospital has had a very long life. The facilities that it offers are not what we would wish to offer to children in such conditions. The reason for the closure is to ensure that the patients are better cared for elsewhere. Northern Ireland has a much higher rate of attendance at accident and emergency units than anywhere else in the United Kingdom: 441 per 1,000 in Northern Ireland, compared with only 293 per 1,000 in England and 251 per 1,000 in Scotland. Less than 1 per cent. of the accident and emergency attendances are a, result of terrorism, which is one of the areas of concern that have arisen over the closure of accident and emergency units. We are asking the boards to consult most fully with everybody involved to ensure that any proposals that come forward are properly discussed and thought through, and any money that we may save will, of course, be put back into the Health Service.
    Mr. Robert Atkins: Is my hon. Friend aware that many of us who have recently received his package of information about Belfast, both in terms of the good news and the potentially exciting news in that great city, are very pleased to have received it and hope that he will continue to argue the case both on this side of the water and in the rest of Europe and the world so that Belfast may continue to go from strength to strength?
    Mr. Needham: I am grateful to my hon. Friend. I believe that in the Health Service we have as good, if not better, facilities in Belfast than anywhere else in the United Kingdom. The city as a whole has suffered in the past two days but, that aside, the city is undergoing a regeneration,
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    the likes of which it has not seen for a century or more, supported by the public and private sectors to a great degree. The determination of the people of Belfast to live through the problems that they are currently facing is an example to us all.

    Republic of Ireland (Meetings)
    Sir John Farrasked the Secretary of State for Northern Ireland what meetings he has had with the Irish Government since their general election.
    Mr. Canavanasked the Secretary of State for Northern Ireland what subjects he discussed at his last meeting with representatives of the Government of the Republic of Ireland.
    The Secretary of State for Northern Ireland (Mr. Tom King): I met the Irish Minister for Foreign Affairs, Mr. Lenihan, on Monday. We had an informal discussion on a wide range of matters, including the future work of the conference. I look forward to working with Mr. Lenihan as co-chairman of the conference in the months ahead in the interests of both our countries. In addition, yesterday, under the auspices of the Inter-Parliamentary Union, I had a valuable discussion with a distinguished delegation of Members of the Dail.
    Sir John Farr: Has my right hon. Friend had any indication from the new Irish Government of the way in which they intend to implement the Anglo-Irish Agreement? Will he ask that Government to launch an energetic campaign to stamp out the terrorists who are engaged in gun-running across the border?
    Mr. King: I certainly received full assurances, both in the meeting that I had with Mr. Lenihan, the Foreign Minister and Tanaiste, and with the Fianna Fail representatives whom I met yesterday with the Inter-Parliamentary Union. It is also clear, from the statements of the Taoiseach, Mr. Haughey, in the Dail, that the Irish Government accept the Anglo-Irish Agreement as an international, binding agreement that they will honour and implement. It was clear from my discussions with Mr. Lenihan, with whom I discussed a wide range of matters, that they recognise clearly — as is evident to hon. Members on both sides of the House—the damage that is done to the economy, and therefore to employment, throughout the island of Ireland by the scourge of terrorism. They are clearly determined to seek every constructive way in which to reduce and eventually eliminate terrorism from the island.
    Mr. Canavan: If the purpose of the so-called Anglo-Irish Agreement is to help to bring peace to Northern Ireland, how can the Secretary of State justify to the Irish Government — or to anyone else for that matter — the heavy, provocative police presence at the recent funeral ceremonies? Whatever the organisation to which deceased people may have belonged during their lives, would it not be in the best interests of all concerned to let people bury their dead in peace?
    Mr. King: It would be the fervent wish of all responsible hon. Members that the dead, from whatever quarter, community, faction or element they come, should be buried in peace, with dignity and without any paramilitary displays. Over the years it has given enormous offence to see deliberate, provocative paramilitary demonstrations of

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    that kind. If the hon. Gentleman remembers only the events in Belfast this week, I should remind him of the events in Londonderry two weeks ago when, contrary to the wishes of the family itself, and in flagrant breach of the standards and laws of the church, two gunmen with guns appeared out of the church and fired a volley over the coffin.
    The reality is that the Royal Ulster Constabulary is faced with a difficult dilemma. It has a responsibility to uphold the law and it is entitled to expect full support from all corners of the community in fulfilling that duty. I know that the last thing that the RUC would want to do isto attend and police funerals of that kind. It would much rather have the confidence and knowledge that those funerals will be conducted in a thoroughly proper and law-abiding way, without deliberate provocation of that kind.
    Mr. Gow: At his meeting with the Irish Foreign Minister on Monday, did my right hon. Friend express satisfaction at the extent to which the Anglo-Irish Agreement has been able to bring peace, stability and reconciliation to the Province? If it should become clear to my right hon. Friend that the agreement cannot achieve those objectives, which he and I share, will he propose some change?
    Mr. King: My hon. Friend's views on the Anglo-Irish Agreement are well known to the House, which respects the principled stand that he has taken on it. I have never maintained that the Anglo-Irish Agreement could suddenly, in a short period of time, transform attitudes and prejudices that stretch over all the troubles and go hack over centuries. I challenge any hon. Member to disagree with my belief that we are more likely to succeed in making the life of both communities in Northern Ireland happier, more prosperous and more secure, not by hostility towards and distrust of the Government of the Republic, but by seeking to co-operate in a way that protects the legitimate interests of the majority. The agreement does that and it has been recognised by successive Irish Governments. Both major parties in the Dail have given the assurance that the agreement is a binding undertaking. The agreement protects the interests of the majority and recognises the legitimate concerns of the minority.
    Mr. J. Enoch Powell: Why did the Secretary of State deliberately go out of his way on a previous occasion to inform the hon. Member for Eastbourne (Mr. Gow) that one of his predecessors in office had wished to proceed on an entirely different policy towards Northern Ireland? What was his motive in putting that on the record?
    Mr. King: I think that I had better establish exactly what the point is that the right hon. Gentleman is making. Having done that, I shall be in a better position to answer his question.
    Mr. Stanbrook: Do the members of the Government of the Irish Republic still adhere to the view expressed by their leader before the general election, that the Anglo-Irish Agreement breaches the constitution of the Irish Republic? As that is a correct view, what do they propose to do about it?
    Mr. King: I am interested to hear my hon. Friend's statement that it is a correct view, but that view has not been upheld by any court. My understanding is that that is not the view that is held. We accept the agreement in the
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    spirit in which it was entered into by both sides. We accept also in good faith, and readily, the clear assurances that have been given by the new Taoiseach, Mr. Haughey, and by Mr. Lenihan personally to me, that they accept the agreement as an international treaty that is binding on the Irish Government, that it is the practice of Irish Governments to honour international agreements and that they intend to honour it.
    Mr. Mason: Will the Secretary of State raise with the Irish Foreign Minister the damnable cross-border mortar bomb attacks on British troops? Will he ask the Foreign Minister and the Taoiseach whether they are prepared to deploy units of the Irish army across the southern border, where terrorists are operating in relative safety and bombing British troops? If the Taoiseach and the Foreign Minister really believe in working with the right hon. Gentleman on a successful Anglo-Irish Agreement, will he put that to them and let that be their test?
    Mr. King: As a previous holder of my office, the right hon. Gentleman is familiar with some of the problems that we face. He will know that, with the length of the border, it is extremely difficult to police or to patrol with security forces every inch or it. I am satisfied that we can look to the Irish Government to co-operate fully with us, and the same can he said of their security forces, the Garda and the army. I have discussed this matter with the new Irish Foreign Minister and I can give the right hon. Gentleman the assurance that I shall he pursuing this matter further with him.
    Sir Eldon Griffiths: I thank my right lion. Friend for his balanced statement on the difficult problems that the Royal Ulster Constabulary faces in the policing of funerals. I am sure that will be widely appreciated.
    When speaking to the Irish Foreign Minister, did my right hon. Friend tell him that it is his intention to impose on the men and women of the RUC discipline and complaints arrangements that the House has rejected for all other British police forces, and that do not and could not apply to the Garda south of the border?
    Mr. King: We did not discuss that matter. It is an issue that will have to come before the House and I think that my hon. Friend will understand if I do not pursue that topic further this afternoon.
    Mr. Mallon: Does the Secretary of State agree that the reason why the IRA fires volleys of shots over coffins is to get a few moments of publicity and propaganda? Is it not rather counter-productive to create circumstances that present it with three days of worldwide propaganda and publicity as a result of the arrangements that were made to cover the incident over the past weekend?
    Mr. King: The hon. Gentleman highlights part of the dilemma that the RUC faces. It would be a serious matter to allow unimpeded paramilitary displays at funerals. The answer lies in a responsible attitude and a clear recognition that the law must be observed. If the law is not observed, and if such organisations intend on every possible occasion to stage paramilitary displays, police action will inevitably be required, and that will raise problems for the RUC. However, I understand well the difficulties present when certain people have no inhibitions about using even a dead man as a propaganda weapon.
    Mr. Peter Bruinvels: The Flags and Emblems (Displays) Act (Northern Ireland) 1954 is shortly to be

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    repealed. However, has my right hon. Friend had an opportunity to discuss with Irish Ministers the deeply offensive misuse of the Irish tricolour, particularly at IRA funerals? Does he accept that most people find that a terribly offensive, obnoxious, cheap party political stunt by cowards who do considerable damage to the cause of unity in Ireland?
    Mr. King: The Flags and Emblems (Displays) Act has been abolished. The legislation has passed through the House, and the Order in Council has now been made.
    The tricolour aspect is clearly covered by the question whether it is likely to lead to a breach of the peace. The RUC did not object to a tricolour being placed on the coffin. It is the paramilitary displays that give the greatest offence and are unacceptable.
    Mr. Archer: As one of the specific matters referred to in the Anglo-Irish Agreement is the improvement of relations between the security forces and the community — and having regard to the events in the Ardoyne to which reference has been made, and which demonstrate that those relations require sensitivity and sense on the part of those under pressure—did the Secretary of State discuss with Mr. Lenihan what could be done within the framework of the agreement to improve those relations? Can he confirm a report in this week's Irish Post that the Dublin Government have asked for the Stalker case to be placed on the agenda of the Inter-Governmental Conference? If so, will he agree?
    Mr. King: I am not aware of any such request. In any case, it is not possible for me to discuss the matter, because reports are now with the Director of Public Prosecutions for Northern Ireland and the Chief Constable. The matter is not within my domain, but it can be dealt with through the normal legal processes that the right hon. and learned Gentleman knows extremely well.
    It is no secret that the Irish Government believe that, in the interests of the minority and in the fight against terrorism, it is crucial to take every possible step to improve relations between the minority community and the security forces. A number of aspects of that are under discussion, and I can confirm that the Irish Government are concerned about the possible propaganda use that the IRA and other terrorists might make of the events of the past couple of days.

    Electricity Generation
    Mr. Bellinghamasked the Secretary of State for Northern Ireland if he will make a statement on his policy towards the future of electricity generation in Northern Ireland.
    Mr. McNamaraasked the Secretary of State for Northern Ireland whether he will make a statement on his policy towards plans to use lignite for the generation of electricity in Northern Ireland.
    Mr. Foulkesasked the Secretary of State for Northern Ireland when he expects to give approval to the Northern Ireland Electricity Service for phase 2 of Kilroot power station.
    The Parliamentary Under-Secretary of State for Northern Ireland (Mr. Peter Viggers): Electricity generation policy in Northern Ireland is aimed at reducing the
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    Province's over-dependence on oil-fired generating capacity and at promoting efficiency within the electricity supply industry.
    To this end a number of options for a new generating capacity required in the mid-1990s are being considered. These include a lignite-fired minemouth power station, for which proposals have been received from Northern Ireland Electricity and two private sector companies; phase 2 of Kilroot as either a coal-fired or dual coal/oil-fired facility; and interconnection with Scotland. No decisions can be taken until all these options have been fully evaluated.
    Mr. Bellingham: I thank my hon. Friend for that reply. When will he be in a position to make an announcement, particularly about the lignite-fired power station, because the Antrim Power Company Limited has spent a good deal of money on its tender? It is an entirely privately backed consortium, supported by a number of medium-sized and large companies and private individuals. If the company obtains the contract, it will be a big boost for Northern Ireland, and particularly for inward investment.
    Mr. Viggers: I agree with my hon. Friend that the private generation of electricity might indeed be a considerable boost for Northern Ireland for several reasons—the possibility of cheaper electricity arising out of private sector efficiencies, the welcome boost to the construction industry and to the economy generally, and the impact that such a significant demonstration of confidence would have on Northern Ireland's industry. However, it is not possible at this point to put a timetable on the decisions, because they are extremely complex and involve a number of issues.
    Mr. McNamara: Is the Minister aware that all the unions involved in the electricity industry in Northern Ireland are bitterly opposed to any schemes that would lead to the establishment of a private generating capacity in Northern Ireland? They are particularly concerned that, because any contract that was then entered into with the Northern Ireland Electricity Service would be at a fixed price, it would eventually be terribly costly for the consumer. Is the Minister further aware that all the arguments that he advanced regarding generating stations could apply equally in the public as in the private sector? Does he realise that Opposition Members believe that the guinea pig scheme that is suggested for Northern Ireland would be introduced into the United Kingdom, since in the past the Government have used Northern Irelnd as an exploratory body for draconian anti-civil liberty measures that have then been introduced into this country?
    Mr. Viggers: We are well aware of the trade union representations. A number of representations have been made on the Electricity Supply (Amdt) (Northern Ireland) Order 1987 that has been sent out for consultation. My right hon. Friend the Secretary of State for Northern Ireland and I have agreed to meet union representatives. As to the hon. Gentleman's further points, I submit that there could be substantial advantages in private sector involvement in electricity generation in Northern Ireland. I have not had discussions with ministerial colleagues who are responsible for electricity generation in Great Britain. I am responsible only for Northern Ireland. Our absolute determination is to do the best for electricity consumers in Northern Ireland.
    Mr. Foulkes: Will the Minister assure the House that, when a decision is made between the option of going ahead with the phase 2 of Kilroot—which is preferred by the Northern Ireland Electricity Service, which is responsible for the provision of electricity in Northern Ireland—and the option of private generation of electricity by means of a lignite power station—which is being promoted by the Bechtel corporation and the Hanson Trust — the fact that in 1986 £50,000 went from the Hanson Trust into the funds of the Conservative party will not influence the decision that is made?
    Mr. Viggers: It would be grossly improper to take a decision on such a basis, and I think it is most unfortunate that the hon. Gentleman should have made such an allegation. He is, of course, interested in the project on a long-term basis, and I am fully conscious of his interest in Kilroot station being developed, which would use coal. I assure the hon. Gentleman that we shall give the most careful consideration to that possibility.
    Mr. Wallace: Will the Minister confirm that equipment has been purchased for phase 2 of the Kilroot station? If he is looking for efficiency, as he said in answer to an earlier question, would it not be grossly inefficient if equipment that had already been bought was not able to be put to use?
    Mr. Viggers: Equipment has been purchased for the completion of phase 2 of the Kilroot power station, but the long-term interests of electricity consumers in Northern Ireland are best served by making sure that the contract as a whole over the life of the station — whichever station it may be that is developed — is the most advantageous and provides consumers with the cheapest and most secure form of electricity. The capital cost of developing Kilroot could be less significant in making the final decision than the fact that a cheaper source of fuel might be available, because fuel is more significant than the initial capital cost. However, no decision has been taken on the matter.
    Mr. Michael Brown: I hope that my hon. Friend will not take too much notice of what has been said by the hon. Member for Kingston upon Hull, North (Mr. McNamara). Surely the greatest interest is the interest of consumers in Northern Ireland, particularly industrial consumers, who for far too long have found that their energy costs, particularly at Harland and Wolff, in aircraft production and in a whole range of industries in Northern Ireland, are much too dear. If the private sector has a contribution to make to reducing energy costs, it should be given every opportunity to do so.
    Mr. Viggers: The private sector construction, and perhaps operation of such a station might provide economies. It is one of the factors that will be taken into account when we make our decision. Brown lignite, the fuel source, is indigenous to Northern Ireland and provides the possibility of a breakthrough for cheaper energy for Northern Ireland. Should that be possible, and should we decide to pursue that route, it might provide a substantial boost to the economy of Northern Ireland.
    Mr. Archer: If the options are still to be considered and no decision has yet been taken, is it not premature and provocative to lay an enabling order to "introduce
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    competition" into the industry? Does it surprise the Minister that that created great anxiety among employees and consumers?
    Mr. Viggers: I am grateful for the fact that the right hon. and learned Gentleman used the expression "enabling legislation", because indeed it is such, broadly replicating the terms of the Energy Act 1983 in Northern Ireland. This is enabling legislation. It does not commit the Government to a decision, because no decision has yet been taken. It is taking the Government some while to come to a conclusion because we are making the most industrious effort to ensure that we have all the facts available to us. We believe that we can reach certainty about the price of brown lignite on a long-term contract, the object being to have a fixed price or a price on a formula for the life of the station. What is less easy is to fix the price of coal on a long-term basis. That is also an important factor.

    Irish National Liberation Army
    Mr. Lathamasked the Secretary of State for Northern Ireland what reports he has received from the Chief Constable of the Royal Ulster Constabulary regarding murders of members of the terrorist organisation known as the Irish National Liberation Army, carried out by other members of the same organisation.
    Mr. Tom King: I receive regular reports on a wide range of security related matters from the Chief Constable. The contents of those reports are confidential. I know, however, that the RUC is making every effort to bring those responsible for these murders, and every other terrorist crime, to justice.
    Mr. Latham: Are not these deplorable gangland killings more reminiscent of the streets of Palermo or Don Corleone's New York than the United Kingdom? Will my right hon. Friend confirm that it should finally be obvious to even the most muddle-headed romantic American-Irishman that he should not send a nickel to terrorist thugs such as these?
    Mr. King: It is certainly true that those incidents and those appalling murders that have been committed have given, in some ways, a clearer insight into the total bankruptcy and viciousness of the terrorists involved in campaigns in Northern Ireland. I very much underline what my hon. Friend said.
    Mr. Flannery: As an aside to the internecine struggle in INLA, is there any suggestion that the shootings and killings have gone up this year compared to this time last year?
    Mr. King: The figures are not dissimilar from last year. Obviously, we very much regret the level of casualties that there have been, but one must recognise that the level of casualties is much lower than it was some years ago in the middle 1970s.

    District Heating Schemes
    Mr. O'Brienasked the Secretary of State for Northern Ireland if he has yet received proposals from the Northern Ireland Housing Executive concerning district heating schemes on the Cromac estate, and the Sandy Row and Lower Newtownards areas; and if he will make a statement.
    Mr. Needham: I have now received from the Housing Executive a formal proposal to remove the district heating scheme from the Cromac estate. The proposal is being examined and I shall write to the hon. Gentleman when I have reached a decision.
    I do not expect the Housing Executive to make proposals for the district heating systems at Sandy Row and Lower Newtownards road until it has completed consultation with tenants served by these schemes.
    Mr. O'Brien: Is the Minister aware that consultation took place with the tenants of the houses in those ares and there was an overwhelming majority in favour of retaining the district heating schemes in their dwellings? Is the Minister also aware that there are now on the market efficient meters by which pre-paid heat could be obtained and, therefore, there would be no income collected for heat with the rents? If there is any value to be attached to the consultations that took place, is it not in the best interests of the tenants to retain district heating and thus obtain some value for the money spent on providing this heating scheme for those areas? Will the Minister rule that the district heating is to be retained, and agree to the tenants' request?
    Mr. Needham: I hear what the hon. Gentleman says. Of course, I shall take into careful consideration the points he has made. I must say that at Cromac a majority of 65 per cent. of the tenants, responding to consultation, favoured the retention of the scheme, but that was a minority of the total number of tenants. Clearly, the Housing Executive must take that into account, but it must also take into account value for money considerations, the viability of the scheme and debt control. Having said that, clearly one would like to do what one can to meet the tenants' wishes. However, it is not just the considerations of the tenants that the Housing Executive rightly has to consider when looking at these schemes.
    Mr. Mallon: Will the Minister impress upon the Housing Executive how wrong it is to create in Northern Ireland Housing Executive houses heating systems that the tenants simply cannot afford, and that the priority should be that which is best and cheapest for the tenants rather than that which is cheapest for the Northern Ireland Housing Executive?
    Mr. Needham: I know that the hon. Gentleman takes a great interest in these things and does a great deal on behalf of his constituents when these matters are raised. Previously, the heating scheme that we are discussing was much more expensive, but there was a reduction of 15 per cent. last year and 15 per cent. this year. There will be no increase in the prices of district heating during the course of this year. Therefore, the various systems of heating do not vary in cost as much as they did. In those circumstances, one will clearly do what one can to take into account the views of the tenants.

    Security
    Mr. Peter Bruinvelsasked the Secretary of State for Northern Ireland if he will make a statement on cross-border security in the Province.
    Sir John Biggs-Davisonasked the Secretary of State for Northern Ireland if he will make a statement about cross-border security.
    The Minister of State, Northern Ireland Office (Mr. Nicholas Scott): Although there exists a significant Republican terrorist threat to border areas of Northern Ireland, enhanced security co-operation between the security forces north and south of the border will continue to help to combat that threat. A programme of measures designed to improve security co-operation has been developed under article 9(a) of the Anglo-Irish Agreement, and we look forward to continuing discussions with Ministers of the new Irish Government about further progress in this area.
    Mr. Bruinvels: I thank my hon. Friend for that most helpful reply. I congratulate him and our right hon. Friend the Secretary of State on bringing forward these important proposals to close a number of routes on the border. Does he agree that there have been more than 12 border incursions in the past two months, some caused by poor map reading and some purely by error of judgment? May I suggest that the next time he meets Irish Government Ministers he puts pressure on them for a give and take policy because, while the closing of these routes is meant to keep our boys in, it is also meant to stop the boys from abroad coming across on IRA terrorist excursions. There must be some give and take on both sides.
    Mr. Scott: My hon. Friend should not underestimate the degree of co-operation that exists on the border. I hope that there will be a growing recognition that when security forces from both jurisdictions have to operate right up to the border, occasional mistakes must occur. I hope that there will be an understanding of the circumstances in which that can sometimes happen.
    Sir John Biggs-Davison: I congratulate my hon. Friend and all concerned on the conclusion of the unfortunate affair at Magilligan. May I ask him whether he thinks that it is consonant with the Anglo-Irish Agreement that when helicopters of the Irish Air Corps come across the border, presumably in pursuit of terrorism, Her Majesty's Government find it necessary to raise the matter? Conversely, is it really consonant with the Anglo-Irish Agreement that when British soldiers place a listening device just across the border for the protection of human life, it should be necessary for the Dublin Government to raise the matter and for Her Majesty's Government to make amends? Should not the security forces of both countries make each other welcome in each other's territory in pursuit of terrorism?
    Mr. Scott: I thank my hon. Friend for his remarks about the outcome of the Magilligan incident, where it was clear from the outset that this was a futile exercise and would certainly not achieve the aim that those who took part in it had in mind. I repeat what I said to my hon. Friend the Member for Leicester, East (Mr. Bruinvels) that I hope there will be an increasing understanding on both sides that in the operation against the common enemy, the terrorist, the actions of security forces of both sides operating right up to the border may result in occasional incursions.
    Mr. Campbell-Savours: To what extent is cross-border security being affected by the allegations of Holroyd, Wallace and Miller? Does the Minister accept the proposition that if there are any civil servants or any officers, former or present, of the security services or any persons in the military anywhere in the United Kingdom

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    who have any allegations to make about the programme of destabilisation of Labour in the mid-1970s, or about the campaign of terrorism against the Irish Government in the mid-1970s, they should make statements and that information should be brought into the public domain in the public interest'?
    Mr. Scott: Not a shred of evidence has ever been advanced to suggest that the allegations of Holroyd and Wallace have any foundation whatsoever. I cannot see how they can have any effect on the Anglo-Irish Agreement.
    Mr. Michael McNair-Wilson: As the emergency in the Province has now lasted for 17 years, as only last night we further revised legislation to deal with that emergency, as, since the Anglo-Irish Agreement, we have sought to improve cross-border security and to reassure the minority Nationalist community in the North, and as the violence continues, is it not time that we reappraised the entire security operation in the Province?
    Mr. Scott: The basis of the security policy that has operated since 1976, with the police taking the primary role in support of the Army, has steadily reduced the impact of violence in Northern Ireland. That policy is based on the right premise and will continue in that way. I take the opportunity to express gratitude to the RUC and the Army for the efforts that they make on behalf of the entire community in the Province.

  PRIME MINISTER

    Engagements
    Mr. Ashleyasked the Prime Minister if she will list her official engagements for Thursday 9 April 1987.
    The Prime Minister (Mrs. Margaret Thatcher): This morning I presided at a meeting of the Cabinet and had meetings with ministerial colleagues and others. In addition to my duties in the House, I shall be having further meetings later this afternoon, including one with King Hussein of Jordan.
    Mr. Ashley: Will the Prime Minister find time today to ask her Ministers to reconsider the treatment that they give to disabled people in relation to the Disabled Persons (Services, Consultation and Representation) Act 1986? Does she know that, despite the barrage of Government propaganda, over 1,000 severely disabled people came to Westminster yesterday to voice their resentment because they feel cheated and betrayed? However, they did not receive any concessions, and not one Minister from the responsible Department was there to listen to them. What kind of treatment is that?
    The Prime Minister: As the right hon. Gentleman knows, sections 4, 8(1), 9 and 10 of the Disabled Persons Act were implemented on 1 April. These sections clarify the duty of local social services authorities under the Chronically Sick and Disabled Persons Act 1970 —[interruption]—to consider the needs of disabled people when requested, and provide for local social services authorities to improve their assessments of the needs of disabled people. On sections 5 and 6 of the Act, which undoubtedly arose yesterday, we have said that we should like to bring these provisions into effect in time to benefit
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    disabled school leavers leaving full-time education this summer and we are urgently consulting the local authorities about achieving that.
    Mr. Hunter: Will my right hon. Friend comment on the process whereby bishops of the Church of England are appointed, her role in that process and the criteria that influence her judgment?
    The Prime Minister: Before my time, and by agreement with the leaders of the Opposition and the other main parties at the time, a procedure was set up. It has been honoured scrupulously since 1979, as I am sure it was honoured before that time.
    Mr. Kinnock: Does the Prime Minister recall saying a fortnight ago to her hon. Friend the Member for Woking (Mr. Onslow) and to the House that she saw the Cable and Wireless issue as a test case of how open the Japanese market really is? In the wake of the fruitless visit to Tokyo of her hon. and learned Friend the Parliamentary Under-Secretary of State for Trade and Industry, does she think that the Japanese have passed, or failed, the test?
    The Prime Minister: The Cable and Wireless issue is still under discussion with the Japanese Government —[Interruption.] Opposition Members may not like it, but that is the fact. My hon. and learned Friend the Parliamentary Under-Secretary has not yet returned from his visit to the far east.
    Mr. Kinnock: That does not make the visit any less fruitless — [Interruption.] The Prime Minister made it clear that we got the brush-off on all counts in Tokyo. [Interruption.] What will she do—[Interruption.]
    Mr. Speaker: Order.
    Mr. Kinnock: Will the Prime Minister tell us and, indeed, an interested country, what she will do to protect British interests in relation to the Japanese? Will she operate fully the powers under the Financial Services Act 1986? Will she operate powers under the Telecommunications Act 1984? Most important, what will she do to turn round a trade deficit with Japan that has increased fourfold while she has been Prime Minister?
    The Prime Minister: In relation to the right hon. Gentleman's opening remark, he is an expert in fruitless visits. My hon. and learned Friend the Under-Secretary of State for Trade and Industry made clear our willingness, if necessary, to use reciprocity powers under the Financial Services Act, and the right hon. Gentleman is aware that an order was laid for that purpose about a week ago. My right hon. and learned Friend the Foreign Secretary discussed trade with Japan with his European counterparts last weekend — the right hon. Gentleman will be aware that trade matters and initiatives must be taken by the Community—and they agree that urgent consideration should be given to the issue by trade experts, who will meet in Brussels tomorrow. Those experts are expected to examine proposals put forward by my right hon. and learned Friend the Foreign Secretary on more effective protection against dumping of components, possibly unbinding of tariffs on certain products as a result of Community enlargement, and measures that may be necessary to avoid diversion if the United States acts against Japan — [Interruption.] The answer is long because a great deal is being done.
    Mr. Kinnock: We heard all that, but what action will the Prime Minister take under existing statutes?
    The Prime Minister: The right hon. Gentleman can neither know nor understand the provisions, arrangements and agreements that we have with Europe. That is precisely why I had to tell him that as a result of the initiatives of my right hon. and learned Friend the Foreign Secretary a meeting is being convened tomorrow to discuss the three matters that I outlined. I shall tell the right hon. Gentleman of them again. The matters to be discussed are effective protection against the dumping of components by Japan, possible unbinding of tariffs on certain products as a result of Community enlargement, and measures that might be necessary to avoid diversion if the United States acts against Japan. The committee is to meet tomorrow. It is within the competence of the European Economic Community. Would the right hon. Gentleman leave the Community?
    Mr. Bowen Wells: Is my right hon. Friend aware that on 5 May the all-party committee on overseas development is to launch a report on managing Third world debt? With her powerfully increased reputation since her visit to Moscow, can I tempt her to undertake another initiative on an intractable international situation and to find a way to solve the Third world debt problem, as the report suggests? Could she find a way in which we may help the impoverished countries of Africa to resume growth and at the same time begin to cut unemployment in the United Kingdom by increasing our exports to those countries?
    The Prime Minister: My hon. Friend will be aware that the United Kingdom has converted aid loans to grants, particularly in respect of many sub-Saharan countries, because they are the poorest. Indeed, we have almost completed that process. My right hon. Friend the Chancellor of the Exchequer is proposing that other countries follow suit. We are fully aware that those countries are not only heavily indebted, but grindingly poor and many are unlikely to be able to repay interest or some of the capital that has been loaned. That is why we have taken this action and why my right hon. Friend proposes that other countries follow suit.
    Dr. Owen: It is absolutely right that—[Interruption.]
    Mr. Speaker: Order.
    Dr. Owen rose—[Interruption.]
    Mr. Speaker: Order.
    Dr. Owen: Is the Prime Minister aware that the European Community is the right mechanism for dealing with unfair trading practices by the Japanese Government'? But would it not assist the European Community and our other partners to take firm action if the British Government would help the European Community science and technology initiative to build up our industry so that we can compete with the Japanese?
    The Prime Minister: We have proposed that the framework agreement should consist of some 4·2 billion ecu over five years. The amount of European research and development on these matters is only about 2 per cent. of the total that takes place. Many people say too easily that research and development are of necessity good, without looking at the results. The right hon. Gentleman is very much aware that we have spent a great deal on research
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    and development without getting out the industrial results that we should have had. It is that aspect to which we must give our attention. With respect, I do not think that the first and second parts of the right hon. Gentleman's question were really related.
    Mr. Fry: Does my right hon. Friend accept that in the Government's stand on trade with Japan the vast bulk of the British people will be firmly behind her and her Ministers and relieved that at long last the British Government intend to take a strong line? That will make a change from what previous Labour Governments have done. Will she please bear in mind in the negotiations that she has announced that there are some British industries that are particularly heavily penalised? I put in a plea on behalf of the British leather manufacturing industry, which, after a very small quota, has to surmount a tariff of 60 per cent. to export to Japan? Will she please ask our negotiators to do their best for that industry?
    The Prime Minister: I am, of course, aware of that particular industry and the problems that Japanese imports cause. As my hon. Friend is aware, if we were to take action alone, first, we should probably be taken to the European Court and, secondly, it would probably not be effective because the Japanese would just export into other countries of the Community and the goods would then have the right to come over here. That is why we have to try to get the rest of the Community with us. I believe that more and more members of the Community are willing to take action, although we often meet resistance from Germany, Holland and Denmark on these matters.
    Mr. David Marshallasked the Prime Minister if she will list her official engagements for Thursday 9 April 1987.
    The Prime Minister: I refer the hon. Gentleman to the reply that I gave some moments ago.
    Mr. Marshall: When will the Prime Minister start to treat the pensioners of this country as decent, dignified human beings? When will she stop her cold, inhuman actions, such as ending the death grant this week, defeating free TV licences and ending heating allowances? Why will she not immediately restore the link with earnings as per the last Labour Government, which would make single pensioners almost £8 a week better off and married couples over £12 a week better off? When will she stop this nonsense of saying that pensioners are better off than ever before, when it is just not true? Why will she not treat our pensioners as princes of Europe and not as the paupers of Europe?
    The Prime Minister: Our record on looking after the elderly is second to none. Spending on the elderly is the third highest in Europe as a proportion of national income. Denmark and France are above the United Kingdom. We are better than Italy, the Netherlands and Germany. Secondly, the hon. Gentleman refers to the previous regime. I would remind him that in 1979 this Government made good an uprating deficiency against earnings created by the Labour Government in 1978 and gave full price protection to pensioners. Thirdly, — [Interruption.] The hon. Gentleman asked a long question. I shall continue to give the answer.
    Thirdly, with regard to the payments for pensions and the numbers, there are 1 million more pensioners now than in 1979 and they have received the full amount. The

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    payments for pensions are made by the working population in this country. If the Opposition's proposals were followed there would be substantial increases in the working population's national insurance contributions. That is what the Labour Opposition are complaining about.
    Mr. Holtasked the Prime Minister if she will list her official engagements for Thursday 9 April.
    The Prime Minister: I refer my hon. Friend to the reply that I gave some moments ago.
    Mr. Holt: During the remainder of the day will my right hon. Friend find time to talk to the Secretary of State for Trade and Industry and draw his attention to the front page of the Middlesbrough Evening Gazette yesterday, which showed that we now have record steel output in
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    Teesside and that the workers in that industry will be receiving record bonus payments this week? Is that not in complete contrast to the report of gloom and doom by the Northern Region Councils Association? That association does not know what is really happening in the north of England.
    The Prime Minister: May we congratulate the Middlesbrough Evening Gazette on providing that excellent news. May we congratulate even more the workers in the British Steel Corporation, all of whom have achieved that excellent result. They have turned round a loss in 1979 to a considerable profit of £76 million in the British Steel Corporation as a whole. Last year the corporation is likely to have made a profit of £170 million. Most workers like to work for profitable industries and that means that they like to work under a Conservative Government.

Business of the House
3.31 pm
Mr. Neil Kinnock: May I ask the Leader of the House to state the Business for the week after the Easter Adjournment?
The Lord Privy Seal and Leader of the House of Commons (Mr. John Biffen): Yes, Sir. The Business for the first week after the Easter Adjournment will be as follows:
WEDNESDAY 22 APRIL—Second Reading of the Finance Bill.
THURSDAY 23 APRIL—Debate on Agriculture and the 1987 farm price proposals on a motion for the Adjournment of the House. Details of the relevant EC documents will be given in the Official Report.
FRIDAY 24 APRIL—Private Members' Bills.
[Debate on Thursday 23 April
Relevant European documents:

(a) 4844/87,

CAP Price Proposals 1987–88

ADD 1 + COR 2

ADD 2

ADD 3 + COR 1

(b) 4224/87

Situation in the Agricultural Markets 1986

(c) 4446/87

Milk Sector Reforms

(d) 4236/87

Disposal of Intervention Butter

(e) 5046187

Disposal of Intervention Butter

(f) 4537/87

Intervention arrangements for butter and skimmed milk powder

(g) Unnumbered

National Aid: French Milk Producers

Relevant Reports of European Legislation Committee:

(a) HC 22-xiv (1986–87), para, 1 & HC 276-i (1986–87) & HC 22-xvii (1986–87), para 1

(b) HC 22-xiv (1986–87), para 1 HC 276-i (1986–87)

(c) HC 22-ix ((1986–87), para 3

(d) HC 22-x (1986–87), para 2 & HC 22-xiv (1986–87), para 2

(e) HC 22-xiv (1986–87), para 2

(f) HC 22-x (1986–87), para 3

(g) HC 22-xiii (1986–87), para 4]

Mr. Kinnock: I am grateful to the right hon. Gentleman. Does he recognise the importance of having a debate on the failure of Government policy on research and development, a matter which has increasing and urgent importance because of the need for Britain to participate properly in European science and technology initiatives? This matter is giving deep concern to hon. Members on both sides of the House, as the Leader of the House can see from early-day motion 722 signed by several hon. Members. Will he now agree to ensure that a debate takes place in Government time as soon as possible after the Easter recess?
[That this House acknowledges the difficulties and underfunding of science evidenced by reports from the Select Committee on Science and Technology (Civil Research and Development), from the University of Sussex (International Comparison of Government Funding), from the Royal Society (Evaluation of National Performance in Basic Research); recognises the need for adequate provision for science and technology to advance industrial recovery, wealth creation and higher living standards in the United Kingdom; notes the imbalance in Government funds
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allocated to civil and defence research development and relative to France, the Federal Republic and Japan the poor contribution in this regard by a number of firms in the private sector; urges the Government to: (i) maintain a better balance between the general expenditure of the state and the creation of wealth creating assets, (ii) stimulate the private sector by granting further fiscal incentives and by requiring the publication of research and development expenditure in company accounts, (iii) make greater use of commissioned research by Government departments, (iv) foster Alvey-type programmes in exploitable areas of science outside information technology and (v) make additional funds available to the Advisory Board on Research Councils for allocation to research councils, and to the University Grants Committee sufficient to meet the requirements of a competitive industrial state.]
Is the Leader of the House aware that there is a pressing need also for a debate on the important issue of launch aid for the A330 and A340 airbus? Even more, is he aware of the need to persuade his right hon. Friend to give the appropriate aid to enable British Aerospace to participate in that vital project? Such action would have my wholehearted support and the support of hon. Members on both sides of the House. Even before we rise for the Easter recess, I am sure that the right hon. Gentleman could facilitate the giving of good news were there any to give.
I asked the right hon. Gentleman six weeks ago for a debate in Government time on the privatisation of Rolls-Royce. Since a report in the Financial Times this morning shows that the Government are not only trying to sell off Rolls-Royce for a song but are retreating from their objective of widening share ownership, does not the right hon. Gentleman think that a debate directly after the Easter recess would be most timely and of great intrest to hon. Members on both sides of the House?
As the journey to Japan made by the Under-Secretary of State for Trade and Industry, the Minister responsible for corporate and consumer affairs, has proved to be so pointless, will the right hon. Gentleman ensure that on the first day that we return after the Easter recess the Minister will come to the House to make a full statement on his trip and the action that the Government now propose to take on the variety of matters that are of concern?
Will the Leader of the House ensure that there is an early debate on the order on teachers' pay and conditions so that, once again, the House can register its objection to the impositions by the Secretary of State for Education and Science on teachers' negotiating rights?
In the light of reports this morning of the Prime Minister's intervention in the appointment to the bishopric of Birmingham, and although I wish the new Bishop of Birmingham every success in his new post, will the Leader of the House ask the Prime Minister to make a much more full and frank statement than she made this afternoon about the conditions and the criteria that she employed in making such an intervention?
Mr. Biffen: Of course I recognise that in all quarters of the House there is great interest in our national research and development programme performance. To some extent, that can be related to our tax structure; and, therefore, the Second Reading of the Finance Bill will enable some points to be raised. But I understand that the right hon. Gentleman refers to the matter in a wider context. Perhaps we can consider it through the usual channels.

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I shall, of course, draw the right hon. Gentleman's remarks about launch aid to the attention of my right hon. Friend the Secretary of State for Trade and Industry. As to the privatisation of Rolls-Royce, again I must object to the description of this promotion as being "sold for a song".
Mr. Kinnock: How does the right hon. Gentleman describe it?
Mr. Biffen: I describe it as a prudent market operation. That is because I have some experience of these affairs and the right hon. Gentleman does not. To maintain these exchanges at the highest level, I must point out that Rolls-Royce will be debated tomorrow on the Adjournment debate initiated by the hon. Member for Coventry, South-East (Mr. Nellist). Perhaps we will take the matter further in the light of what is revealed.
I recognise that there is an interest, which goes far beyond that of the Leader of the Opposition, that our trade relations with Japan should be reported to the House after the recess. I shall ensure that these matters are further considered through the usual channels. Likewise, I notice the interest in a debate on the order relating to teachers' pay and conditions.
I must say that it adds a handy embellishment to this pre-election time to note that hon. Members want the appointment of bishops to be further considered by the House. I shall look into the matter which has been raised by the right hon. Gentleman and ascertain the most wise, prudent and conventional methods of taking it further forward.
Sir Anthony Kershaw: On Thursday 23 April, when we discuss agriculture on an Adjournment motion, will it be in order to discuss also the recent proposals by my right hon. Friend the Minister of Agriculture, Fisheries and Food on alternative land use and the rural economy?
Mr. Biffen: My reply must be prefaced by saying that these matters turn upon the view of the Chair. But my hon. Friend has raised a pertinent point. In truth, in the countryside, agriculture and all other activities are intimately interlocked. It seems to me that, on a motion as wide as the Adjournment such a discussion could take place.
Mr. David Steel: In view of the important meeting of European Community Ministers on the subject of trade with Japan, which will take place over the weekend and to which the Prime Minister referred, will the Leader of the House arrange for either a statement or a debate shortly after Easter on this important topic? Does he accept that some of us do not believe that this issue has suddenly arisen because of the Cable and Wireless interest but that it has been of concern for some time and has been contributing to the erosion of our manufacturing base? Will the right hon. Gentleman please arrange for this matter to be dealt with fully in the House after Easter?
I should like to support a point made by the Leader of the Opposition on the appointment of bishops. The Prime Minister prayed in aid the support of other party leaders for the present arrangements. Therefore, will the right hon. Gentleman convey to her that other party leaders are not satisfied with the way in which these arrangements are working out?
Mr. Biffen: I am interested to note the right hon. Gentleman's approach to adversarial public affairs, importing a degree of acerbity into the subject of bishops which hitherto I thought was tolerably absent.
Mr. Steel: I am a Presbyterian.
Mr. Biffen: I reaslise that the right hon. Gentleman is a Presbyterian. No doubt he believes that often the spectator sees most of the game.
The right hon. Gentleman's point about relationships with Japan were expressed also by the Leader of the Opposition. I believe that those concerns are felt widely throughout the House. I shall ensure that those views are taken into account.
Mr. Tony Marlow: As, thanks to the Labour party and due to the indolence and incompetence and possibly even the connivance of the Leader of the Opposition, this House after the next election will probably be faced. with political apartheid, the constitutional canker of a caucus of black Members of Parliament who are dedicated to the interests not of their constituents or the nation but of a group of people purely on their racial basis, could my right hon. Friend tell the House what constitutional preparation he is making for this abomination?
Mr. Biffen: My hon. Friend has touched on a serious matter. Many of us are in no sense sympathetic to the Labour party but nevertheless recognise and applaud the judgment of the Leader of the Opposition that black sections imply possibly the unacceptable face of ethnic politics. As for what will happen in this House, it must depend on the outcome of the general election, which is as yet not certain. On the whole, the problem in the form of the number of Labour Members of Parliament in this House must be less of a difficulty than would otherwise be the case.
Mr. Bruce Millan: Is the Leader of the House aware that it would be quite monstrous for the privatisation of Rolls-Royce to go ahead without a full debate in this House? It is no good saying that it can be raised on the Adjournment or in Opposition time. This is a Government decision and ought to be fully debated in Government time. There is widespread opposition and concern among the workers of Rolls-Royce about privatisation, including those in my own constituency. We must have a debate on this matter before the final prospectus is launched later this month, as we understand the position.
Mr. Biffen: I do not share the right hon. Gentleman's view about the attitudes of employees of Rolls-Royce to this particular matter.
Mr. Millan: They happen to be my constituents, not yours; you know nothing about it. That is a patronising reply.
Mr. Speaker: Order. Leader of the House.
Mr. Biffen: The attitude of the right hon. Gentleman belies his reputation for fairness in this House and his belief that it is possible to have two views upon the attitude of working people in this country towards the ownership of industry. I did reply to the Leader of the Opposition on this point, and I do not think I can go further in response

457
to the right hon. Gentleman now, but I will see that his views are made known to the Secretary of State for Trade and Industry.
Mr. Tony Speller: When he is arranging the business of the House, will the Leader of the House seek an early statement from the Secretary of State for Defence over an incident that affected my constituency last evening, when a Royal Air Force plane dropped a missile — happily a dummy — which landed within 30 ft of two of my constituents. I also ask that a statement should be made regarding the over-flying of areas of population rather than under-populated parts of the country. In particular, I ask that care is taken when equipment is being used so that it does not accidentally descend on the lands of North Devon.
An Hon. Member: Or anywhere else.
Mr. Biffen: I will most certainly see that my right hon. Friend is acquainted with the anxieties expressed by my hon. Friend the Member for Devon, North (Mr. Speller).
Mr. Jack Ashley: As the House will not want to spend all its time debating cheap party political points, as suggested by the hon. Member for Northampton, North (Mr. Marlow), I ask the Leader of the House whether he is aware that most born deaf and profoundly deaf children have an education that is so bad that by the time they leave school they have on average a reading age of only eight or eight and a half. That is appalling. We need a change of policy so that those children can learn sign language or oral language, whichever suits the child best. I ask the Leader of the House to look at early-day motion 857 and to arrange time for a debate.
[That this House believes that all born deaf and profoundly deaf children have the right to learn sign language which enables them to acquire a vocabulary; deplores the denial of this right in many schools for the deaf in Britain; notes that current oral educational methods give deaf children a vocabulary and reading ability far below those of hearing children; and calls upon the Government to include signing as part of the training of teachers of the deaf, and to ensure that deaf children are permitted to use all methods of communication, including signing, which will facilitate their education.]
Mr. Biffen: I have indeed acquainted myself with the early-day motion to which the right hon. Gentleman has referred. I cannot offer the prospect of a debate in Government time in the near future, but I will certainly see that it is drawn to the attention of the relevant Government department.
Sir Kenneth Lewis: May I draw the attention of my right hon. Friend to early-day motion 864 which deals with the Norcross takeover bid?
[That this House is of the opinion that the William Holdings bid to take control of Norcross plc is not in the best interests of the country, the workforce or the shareholders]
Will he ask his right hon. Friend to refer this takeover bid to the Director of Fair Trading because it is relevant to my constituency? That is as good a reason as any other for it going to the Director of Fair Trading. Moreover, the bid by William Holdings for Norcross is nothing but throwing paper money to get real money to destroy the limbs of part
458
of the industry; the sale will make more money for bids eleswhere, with paper money. In other words, this is what British industry has been suffering in the last few years. It is time it stopped. This should be the beginning of the stopping of it.
Mr. Biffen: My hon. Friend made that very clear. He will appreciate that it would not be appropriate for me to comment upon the merits of the case, but I assure him that, in conformity with normal practice, the matter has gone to the Office of Fair Trading.
Mr. Gregor MacKenzie: May I support the plea of my right hon. Friend the Leader of the Opposition and that of the leader of the Liberal party for an early and urgent debate on our trading relationship with the Government of Japan? This is not a party issue in the strict terms of the phrase. There are hon. Members on this side and on the Government side who are frustrated and angry about the whole business. We should like to have a debate so that those of us who represent manufacturers of electrical appliances and such things may have an opportunity to tell the Treasury Bench what we think about the whole business and through the Treasury Bench to express our deep anger with the Japanese Government.
Mr. Biffen: I take note of what the right hon. Gentleman says. I certainly accept his proposition that there is deep disquiet about Japanese trading practices which unites Members from all parts of the House. I shall certainly see that his voice is added to those which are referred to my right hon. Friend the Secretary of State for Trade and Industry.
Mr. Teddy Taylor: In view of the public refusal this week of the French and German Governments to deny a safe haven to any financial institutions expelled from London by the Government, and the consequent danger that the result of action would simply be to transfer valuable resources and employment from London to Paris or Frankfurt, can the Leader of the House give us all a firm assurance that before any specific steps are taken there will be a debate in the House? Could he also find time in that week for a debate on our trade with West Germany, where our deficit in trade is more than twice our deficit with Japan and where the non-trade barriers are in some respects more blatant and more cruel to British industry and jobs?
Mr. Biffen: My hon. Friend highlights one aspect of the problems of trade with Japan which will necessarily cause reflection and debate in the House. I shall see that his request for a debate is coupled with his observation. As to his comments about trade with the Federal Republic of Germany, at the moment I would prefer our energies to be concentrated on the prospect of a debate on Japan.
Mr. Willie W. Hamilton: Has the right hon. Gentleman's attention been drawn to early-day motion 877 on the Prime Minister's statements on nurses' pay?
[That this House notes that on Thursday 2nd April, Official Report, column 1220, the Prime Minister said: `Nurses' pay has increased by 23 per cent. over and above inflation since the Government came into office'; whilst on Tuesday 7th April, Official Report, column 158, she said

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'Nurses' pay … was one third, 33 per cent., higher in real terms, in 1986 than in 1979'; and calls on the Prime Minister to indicate which of her statements is accurate.]
Is the right hon. Gentleman aware that on 2 April she claimed that nurses had had a 23 per cent. increase in real terms since 1979 but by 7 April, five days later, that 23 per cent. had gone up to 33 per cent? Can he tell me on which day the Prime Minister was telling the truth?
Will the right hon. Gentleman arrange for an early debate on the allocation of British Gas shares, because evidence is coming forward that the same hon. Members who engaged in malpractices in the purchase of British Telecom shares were in the same business on British Gas shares? It is very important that we get at the truth.
Mr. Biffen: On the first point, I am not in a position to adjudicate with confidence on the figures to which the hon. Gentleman has referred. [Interruption.] No, it is all right; I have to help the hon. Gentleman. I think that the figure of 23 per cent. would be reliable and would demonstrate the clear performance of nurses' pay under this Government. On the second point, which I have no doubt was raised in anxious good faith, I understand that the whole question is subject to investigation by the auditors Touche Ross. Those investigations are continuing and I think it would be wise to wait until they are completed.
Mr. Hamilton: Read the Daily Mirror.
Mr. Robert McCrindle: As to nurses' pay, to which the hon. Member for Fife, Central (Mr. Hamilton) just referred, is the Leader of the House aware that some hon. Members would welcome an early debate on nurses' pay so that the promises of past and present Governments and the promises of political parties could be well and truly evaluated? At the same time, attention may be drawn to the worrying fact that the number of agency nurses in the National Health Service has been rising, in the opinion of some hon. Members, to an unhealthy level. We would also be able to express the hopes of some Conservative Members that, whenever the recommendations on pay and conditions for nurses are received, early attention and favourable treatment will be given to them.
Mr. Biffen: My hon. Friend makes a persuasive contribution from the speech that he will surely make when the debate eventually takes place. However, there is no prospect of an early debate on nurses' pay in the period shortly after Easter.
Mr. Michael Foot: With regard to the appointment of bishops, does the right hon. Gentleman think that something might be said for what might be called a "balanced ticket"—a good sound Christian to go along with every reliable Tory appointment?
Mr. Biffen: It is characteristic of the right hon. Gentleman that that is one of the more thoughtful contributions that have been made this afternoon.
Mr. Robert Atkins: Is my right hon. Friend aware that there is cross-party support for the urgent and important decision on launch aid for the A330 and A340 airbus? It is important because of the effect that it will have on the British aerospace industry throughout the length and breadth of the country and the jobs that depend on it. It is urgent because, if we are to continue to compete in the world market, and maintain our technological lead in the face of the American threat, we
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must have a quick decision. Will he convey our worries to the Prime Minister and, if necessary, arrange a debate to build on the success of the A320 airbus and ensure that we have this launch aid as a matter of urgency?
Mr. Biffen: My hon. Friend puts a succinct and compelling case for launch aid for the airbus. I shall ensure that those views are conveyed to my right hon. Friend the Prime Minister and my right hon. Friend the Secretary of State for Trade and Industry.
Mr. Peter Pike: Will the Leader of the House tell his Cabinet friends and colleagues that when he comes to the House in a fortnight it will not expect him to be the fall guy for the Cabinet? Will he ensure that he can say what the decision will be about the airbus, because it is crucial for the future of the aerospace industry? It is vital that we have a debate on that subject. The right hon. Gentleman must be able to give an answer, as he must be able to with regard to Rolls-Royce. I can assure him that the workers at the Barnoldswick factory in Lancashire, who recall what happened when it was privatised in the past, are fearful of what the Government proposals mean.
Mr. Biffen: Everybody who has held this position has been a fall guy; some have fallen more heavily than others. 1 take to heart the point that the hon. Gentleman makes, and I shall ensure that my right hon. Friends who have responsibilities in that sector are informed.
Mr. Nigel Forman: Will my right hon. Friend find time soon after the Easter recess for a full debate on public transport needs for London and the south-east, in which we could pay tribute to the achievement of British Rail and especially Network SouthEast which, as my right hon. Friend may know, has increased its passengers mileage by about 2 million over the past few years, while at the same time it has absorbed., through efficiency, a cut in the public service obligation grant of some 35 per cent.
Mr. Biffen: I am happy to endorse the tribute that my hon. Friend pays to British Rail. I am sure that he will appreciate that Government time is at a premium after the Easter recess because of the number of days on the Floor of the House that must be taken by sections of the Finance Bill. I shall bear in mind what my hon. Friend says and refer his comments to my right hon. Friend the Secretary of State for Transport.
Mr. Roland Boyes: Has the Leader of the House had an opportunity to read the news item today on the front page of The Times under the heading
"New plan for water meters"?
It is by Philip Webster, the chief political correspondent, who has had the privilege of being informed by senior Government sources that the Government have decided to move towards compulsory water metering. As water metering has serious implications for the poor, the elderly and the unemployed and as neither you, Mr. Speaker, nor hon. Members like to hear that newspapers have been briefed before right hon. and hon. Members, will the Leader of the House ensure that right hon. and hon. Members are given a statement on this matter by the Secretary of State for the Environment as soon as Parliament reconvenes after Easter?
Mr. Biffen: I have not seen the article, but I broadly understand its content. I understand that it refers to

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legislation for the next Parliament. I am glad that the hon. Gentleman shares with me a profound confidence that it will be a Conservative Government in that Parliament.
Mr. Harry Greenway: May I support the calls from various quarters of the House for a debate on the appointment of bishops so that one may support the appointment of the excellent Bishop of Kensington to the see of Birmingham, which has been a see only since 1901 and has had many famous incumbents? I particularly want to support the appointment of people such as the Bishop of Kensington, who put theology and pastoral care before politics.
Mr. Biffen: I warmly applaud the broad sentiments of my hon. Friend and I am certain that if eventually this subject becomes of such burning concern to the House that we do have a debate upon the Floor, he will have a chance to make those very points.
Mr. Brian Sedgemore: Will the Leader of the House table a motion to enable us to debate racism on the part of Liberal councillors in Hackney and Tower Hamlets and thereby enable the leader of the Liberal party to tell us whether it is his historic role to lead a racist Liberal party into the next general election?
Mr. Biffen: I am not entirely aware of the situation or of the serious allegations that are now being made. I have to say, with great regret, that I cannot foresee the likelihood of Government time for such a debate, but I am sure that, if the alliance parties have time at their disposal, that will be one of the first subjects that they would wish to have debated so that the matter can be made fully explicit.
Sir Barney Hayhoe: Is my right hon. Friend aware of the considerable concern that has been generated by the decision of the University Grants Committee and the court of the London university to reduce the grant to Birkbeck college by some 7 per cent. and to give an indication that even further cuts will be made in the future? Will my right hon. Friend arrange for the Secretary of State for Education and Science to come to the House as soon as possible and, I hope, make a statement saying that the Government are taking action to safeguard the future of Birkbeck college and the considerable contribution that it makes to continuing education in our capital city.
Mr. Biffen: I understand my right hon. Friend's concern at the continuing good health of Birkbeck college and I shall most certainly see that his remarks are drawn to the attention of my right hon. Friend the Secretary of State for Education and Science.
Mr. Doug Hoyle: When the right hon. Gentleman is discussing launch aid for the airbus with the Prime Minister and the Secretary of State for Trade and Industry will he also draw their attention to early-day motion 558, which has been signed by 92 Members on both sides of the House? That shows the depth of feeling, because a failure to give launch aid for the airbus could mean the death of the airframe industry in this country and I am sure that the right hon. Gentleman would not want to see that.
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[That this House, noting the considerable investment made by British Aerospace plc in future projects and the substantial orders and commitments already achieved for the A320, urges the Government to make an early and positive decision about the company's application for launch aid for future funding of the A330/ A340 Airbus project, thus securing jobs in United Kingdom high technology industries, and enabling the United Kingdom to continue in this increasingly successful international collaborative programme.]
As he has seen fit to discuss the views of Rolls-Royce workers, and as I think I have a greater knowledge of trade unions than the right hon. Gentleman, may I tell him that the trade unions are totally opposed to it because we are concerned about the security of the Rolls-Royce workers. We have already seen it go bankrupt under private enterprise in 1971 and we do not want to see a repetition of that.
Mr. Biffen: Before I get written off as a total rural turnip on these matters, I have to point out that my constituency of Shropshire, North lies between Shrewsbury and Crewe, which both have Rolls-Royce traditions. Rolls-Royce is still an evident factor in Crewe, but I agree that it is a different story in Shrewsbury. As to the hon. Gentleman's point about early-day motion 558, I shall most certainly see that that is referred to my right hon. Friends.
Mr. John Wilkinson (Ruislip-Northwood): May I, instead of repeating my hitherto vain pleas to my right hon. Friend to get our right hon. Friend the Secretary of State for Trade and Industry to give the House a statement on British space policy, urge him to allow the House an opportunity to debate space policy as a whole? Our European counterparts—France, Germany and Italy—have expanding space programmes and contribute more fully to the important work of the European Space Agency.
Mr. Biffen: Of course I bear with my hon. Friend, because he makes persuasive requests, week after week, to allow the House to debate space policy. I shall bear in mind what he says. However, I must tell him—as I have said to others — that when we return after the Easter recess a great deal of the time of the House will be devoted to the Finance Bill and I would cruelly mislead him if I gave him to think that time was easily available for other matters.
Mr. Lewis Carter-Jones: Will the Leader of the House take it from me that there has never before been a time when hon. Members on both sides of the House who are interested in aviation have seen the American civil aviation industry so worried? It is worried because it sees a real threat from the A320, and a positive approaching threat from the A330 and A340. Should we not avoid losing our lead, and make adequate and speedy provision for the building of those aircraft with a British input?
Mr. Biffen: Of course I take note of what the hon. Gentleman says. I am sure that his voice will be recorded with those of many other hon. Members who are requesting a statement or debate about launch aid.
Mr. Bowen Wells: Has my right hon. Friend received the reports from the European Legislation Committee, both on the proposed settlement of the agricultural prices for the coming year and on the

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budget? When is he considering making time available for a debate on those important issues, which affect the future of the whole Community? Will he make time available — exceptionally — for an almost unique debate on an overseas matter — international indebtedness and the problems that that can cause, both for the developed and the under-developed world?
My right hon. Friend may know that two reports by the all-party committee on overseas development and by the Treasury and Civil Service Select Committee are coming to the House. Will he bear that in mind in planning his schedule?
Mr. Biffen: On the first point, of course I shall immediately look into the specific matters that my hon. Friend has raised, and I shall be in touch with him.
On the second point, there will shortly be a report from the departmental Select Committee on Third-world issues, including the vital one of debt repayment. It would then be appropriate to await the Government's response and, thereafter, to decide what would be the most appropriate way for the House to proceed.
Mr. Greville Janner: May we shortly have a debate on the desperate shortage of resources for the Health Service in the country in general, and in Leicestershire in particular? Is the right hon. Gentleman aware that an all-party delegation of hon. Members representing constituencies in Leicestershire called on the Minister for Health this afternoon to express our shared concern at the impossibility of Leicestershire health authority coping within its cash limits? Is he aware of the problems of likely closures of hospitals and maternity units, and of the desperate difficulties facing psychiatric and geriatric units? As this is a matter of concern to both sides of the House, may we have a debate on it and some hope of action, as the Minister said that he could offer no hope of further central Government funds?
Mr. Biffen: I am sure that the hon. and learned Gentleman will be aware that this matter was raised fairly extensively in a recess Adjournment debate. I have nothing more to add to what I said then. I take note of the hon. and learned Gentleman's observations, and I shall see that my right hon. Friend the Secretary of State for Social Services is made aware of them. In the meantime, the hon. and learned Gentleman's most likely way to have the matter debated in the House would be to try to raise the issue on the Adjournment debate, rather than to anticipate Government time being made available.
Mr. Peter Bruinvels: I associate myself with the deputation that was concerned about health provision in Leicestershire, but, exceptionally, I wish to take my right hon. Friend away from Leicestershire today to call for a debate on the apppointment of bishops and, particularly, on the activities of the Crown Appointments Commission. Those activities seem to be misunderstood by hon. Members on both sides of the House. As my right hon. Friend is aware, the Crown Appointments Commission draws up a list of two names in such a way as to provide what the former leader of the Labour party, the right hon. Member for Blaenau Gwent (Mr. Foot) might call a balanced ticket. Those two names are presented to the Prime Minister, from which she must choose one.
In such a debate, I should like a discussion of the widening of the trawl for the candidates that are proposed,
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so that other, far better candidates can be admitted for appointment to bishoprics. I am not declaring an interest, but I should say that there is a growing tendency for those hon. Members who are on the Synod to be lobbied by the former Bishop of Birmingham to appoint James Thompson as the next Bishop of Birmingham, a request to which I, naturally, did not agree.
Mr. Biffen: The fact that my hon. Friend delicately passes Leicestershire by is a sign that he believes that his seat is becoming safer by the week. As for my hon. Friend's second point, he has clone the House a courtesy by explaining the current position. I hope that the House will take this matter with great seriousness. There is no doubt that one of the effective requirements for the continued health and virility of the Church of England is that the episcopacy represent all the traditions that are contained in the Church. Whether we can contribute much to that end is a matter about which I have sonic reservations, but we are entitled to travel hopefully.
Mr. Dennis Skinner: I wonder whether the Leader of the House will reconsider what he said to my hon. Friend the Member for Fife, Central (Mr. Hamilton) in respect of the multiple share applications, debate or statement, after he has read the Daily Mirror tomorrow, which, according to all reports, has done a trawl of British Gas? It seems that there will be further revelations about multiple applications from Tory MPs.
On the subject of greed and materialism, will the Leader of the House also consider having a word with the Liberals to see whether the burdens of high office are beginning to get them down? He has heard from my hon. Friend the Member for Hackney, South and Shoreditch (Mr. Sedgemore) about the problems of Tower Hamlets—the cutting of the education grant, throwing families into the gutter and all the rest of it. Now, according to my latest information, the hon. Member for Greenwich (Mrs. Barnes), having scurried along the streets canvassing for votes and promising jobs for all her constituents — thousands of them are out of work — has, within a few weeks got herself another job — a directorship of Thornton Drummond and Brett. Will the right hon. Gentleman inquire whether this multiple job application is worth £5,000, £10,000, or what? It sheds a rather curious light upon those alliance MPs.
Mr. Biffen: If I could take the hon. Gentleman's second point first: looking across at him, sometimes one could forgive him for being a Socialist, when he has his back to the light. Then one realised that he was the hon. Member who co-existed cheerfully enough with the parliamentary Liberal party under the premiership of the right hon. Member for Cardiff, South and Penarth (Mr. Callaghan) I think that, if I were an elector in Bolsover, I should want a guarantee that such a metamorphosis was not possibly in prospect again.
I think that the hon. Gentleman's point is perfectly valid. We need a few weeks for some pretty good uninhibited examination of the record, so that the book is known, the crystal examined and the future divined. On the hon. Gentleman's previous point, he is inviting me to set aside the professional work of Touche Ross in favour of the journalistic achievements of the Daily Mirror. That is an interesting proposition, but I say to him that the day will come—inevitably — when he will be on the Front

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Bench and will have to accept responsibility [Interruption.] He will then decide at the end of the day that Touche Ross is probably the safest haven.
Mr. Patrick Nicholls: Will my right hon. Friend consider finding time for a debate after Easter on the independent sector of the education system? Does he agree that such a debate is urgent in view of the alliance plans which were announced yesterday, which, if implemented, would threaten the charitable status of independent schools? The parents who send their children to the sort of schools that the right hon. Member for Plymouth, Devonport (Dr. Owen) attended would continue to do so, but those who send their children to less fashionable private schools would probably no longer be able to do so. That is something that we should consider.
Mr. Biffen: It most certainly is. When I hear observations of that sort, and when I think of the days that will be spent on the Floor of the House discussing the Finance Bill, my heart is heavy. I urge my hon. Friend not to give up. What he cannot say here, he can say on the hustings.
Mr. Dave Nellist: I am sure that the Leader of the House is aware of early-day motion 85 which sets out opposition to the privatisation of Rolls-Royce and which has received the support of 137 Labour Members but no support from Alliance Members.
[That this House condemns the Government's intention to privatise Rolls-Royce and would utterly refute the Under-Secretary of State for Defence Procurement's recent statement that Rolls-Royce employees 'relish the idea of privatisation'; fully agrees, on the contrary, with the concern of most employees that their jobs, wages and working conditions would be at risk; reminds the Government that it was a previous Conservative administration which originally brought the company into state ownership, in order to prevent it from going out of business; commends the dedication and skills of the workforce, which has been responsible for revitalising the company since 1971; contends that private ownership is totally unsuitable for an industry which requires large amounts of advance investment for product research and development; re-affirms its belief that the future for Rolls-Royce and the workforce is best guaranteed by it remaining fully in the public sector and not subject to short-term yearly profit analyses; and looks forward to a Labour Government that is prepared to safeguard jobs by investing in manufacturing industry.]
Is the right hon. Gentleman aware that the Adjournment debate that I have secured tomorrow at 1.30 pm on the future of Rolls-Royce will be the only parliamentary scrutiny of one of the largest privatisation exercises of this Parliament? Will he reconsider the answer that he gave my right hon. Friend the Leader of the Opposition and others? Why are the Government so embarrassed to have a debate on Rolls-Royce? Is it the sweetener of £645 million of debt cancellation to bribe the way for that sale in the market place? Are the Government embarrassed because of the problems with the superfan and the rejection by Airbus this week of the engine for future aircraft? Why is the Department of Trade and Industry so afraid to come to the Chamber to listen to the voice of the workers' opposition to privatisation? If the right hon. Gentleman wants the figures from Parkside in
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Coventry, over 80 per cent. of the work force have sent their names and addresses to the Under-Secretary of State for Defence Procurement opposing the sale of Rolls-Royce.
Mr. Biffen: I take note of what the hon. Gentleman says. He will have an opportunity tomorrow to make a real contribution to the public debate about Rolls-Royce. I can say no more than what I said to the Leader of the Opposition — that we shall consider the matter in the light of the discussions that take place.
Mr. David Sumburg: In the light of the local elections on 7 May, which is one election date that the leader of the Social Democratic party is capable of forecasting accurately, should not the House have an opportunity to debate Labour's appalling record in local government? In my constituency, after one year of Labour rule, the rates are to rise by 17 per cent. — [Interruption.] Is not this the true price of voting for the Labour party, and should we not have a debate on the matter?
Mr. Biffen: In the absence of the right hon. Member for Plymouth, Devonport (Dr. Owen), the leader of the Social Democratic party, I thank my hon. Friend for the generosity of his observations. Although the matters that my hon. Friend has raised are properly directed to me, I would deceive him if I were to say that there was any prospect of Government time being made available to enable them to be debated before the date of the local authority elections.
I return to the point that I made in reply to my hon. Friend the Member for Teignbridge (Mr. Nicholls). Such debates are not restricted to the Chamber, and we are now approaching that period in our national affairs when there is a lively and growing concern that they should take place outside the House as well as in it.
Mr. Max Madden: Has the Leader of the House seen early-day motion 874, which is concerned with the business activities of a Conservative party fund raiser, Mr. Alan Lewis?
[That this House urges the Chancellor of the Duchy of Lancaster, the Right honourable Member for Chingford, to make urgent inquiries within the Duchy to ascertain whether residents there, as elsewhere in Britain, have received letters from Alan Lewis, chairman and managing director of the Hartley Investment Trust, appealing for funds on behalf of the Conservative party; urges him to write to the recipients of such letters explaining that Mr. Lewis transferred shares worth over £22 million in the textile group, Illingworth Morris, of which he is chairman and managing director, to Walbrook Investments, registered in the Netherlands Antilles, a Dutch Caribbean colony, and that he further understands that Walbrook Investments is wholly owned by Wickhams Cay Trust, registered in the British Virgin Islands, and that Wickhams Cay Trust is the trustee of the Alan J. Lewis Settlement, a trust set up by Mr. Lewis, the sole life tenant of trust; that he believes the shares were held by four subsidiaries of the Hartley Investment Trust, owned by Mr. Lewis and on whose notepaper Mr. Lewis wrote appealing for funds on behalf of the Conservative Party; that he understands the Antilles arrangement allows Mr. Lewis to control the company but will greatly reduce the amount of tax paid on dividends on shares which Mr. Lewis formerly owned directly; and urges the Chancellor of the

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Duchy to warn recipients of letters from Mr. Lewis within the Duchy and elsewhere that patriotic people of common sense would he unwise to contribute to any appeal conducted by Mr. Lewis on behalf of the Conservative Party.]
Some might argue that the salting away of £22 million-worth of shares in a Caribbean tax haven qualifies Mr. Lewis admirably as a Conservative party fund raiser, but will the right hon. Gentleman have urgent words with the right hon. Member for Chingford (Mr. Tebbit), the Chancellor of the Duchy of Lancaster, to persuade him to do what he has so far not done following a letter that I sent to him on 28 March, in which I asked him to dissociate the Conservative party from the financial appeal that is being conducted by Mr. Alan Lewis?
Mr. Biffen: The hon. Gentleman, with unerring accuracy, has observed that I have no responsibilities for the activities of Conservative Central Office. I am sure that if there were found to be any malpractices, they would be referred to the appropriate authorities. I shall ensure that the hon. Gentleman's observations are drawn to my right hon. Friend's attention.
Mr. Tony Faye: Will my right hon. Friend support the Leader of the Opposition's plea for an early debate on the EEC research and development initiative? That is not because we are for it; we are against it. Most of my right hon. and hon. Friends are in favour of competition. We believe that competition is the spur to research and development and not EEC bureaucrats running an R and D programme. What would have happened to our laser technology if GEC and Ferranti had pooled their research and development departments?
Mr. Biffen: My hon. Friend makes it clear that such a debate would be lively and certainly two-sided. I fear that I cannot say that that necessarily makes it any more likely that Government time can be made available for it in the near future. I have prayed in aid already the fact that the consideration of the Finance Bill will make considerable demands upon the time that is available for debates on the Floor of the House. My hon. Friend has made a fair point and I hope that the occasion will arise eventually when it can be deployed more fully.
Mr. Robert N. Wareing: Has the Leader of the House seen early-day motion 758, which calls for time for Members to be able to debate and vote upon the principle of anti-discrimination legislation for the disabled?
[That this House recognises that disabled people suffer unjustified discrimination in many areas of their lives; notes that there have been four attempts in the past years to place on the Statute Book a measure which would outlaw this practice; further notes that members of the House of Lords have already been given an opportunity to express themselves on this issue; and calls for time to be found in order that right hon. and hon. Members of this House can vote on the principle of anti-discrimination legislation.]
Is the right hon. Gentleman aware that it was one of the demands made by the massive lobby in Westminster Hall yesterday? Will he try to redeem the Conservative party from the disgraceful attitude that it displayed on 18 November 1983, when I tried previously to introduce such legislation? The right hon. Gentleman could redeem his party by providing Government time to debate such a measure during this Session.
Mr. Biffen: I thank the hon. Gentleman for raising the matter. I think that he will find that the disabled were debated reasonably recently, in mid-February. I observe that the hon. Gentleman would like a further debate, but I must tell him, as I have told many others, that there is no time available—certainly not Government time—in the near future to enable such a debate to take place.
Mr. Eric Forth (Mid-Worcestershire): Has my right hon. Friend considered the possibility of having a debate on the arrangements that may arise in the Parliament following the next general election? I have in mind the possibility of multitudes of parties and organisations within the parties in this place, which perhaps have heretofore been unforeseen. Will my right hon. Friend take into account the possibility of parties based on racial or ethnic grounds, or on any other grounds? Has he given any thought to seating arrangements in the Chamber, the use of Committee rooms, voting procedures and various other matters that may affect political parties on the Opposition Benches, especially in the light of recent events in Birmingham, which should concentrate our minds, including the mind of my right hon. Friend, on the arrangements that may have to be made after the next general election?
Mr. Biffen: Apart from thinking that the precondition outlined by my hon. Friend will presage a substantial Government majority following the next general election, everything else fills me with foreboding. The more we have factions, the more we have groups within groups —the Labour party could tell us much about that—the more we shall find that the anguished life of the usual channels will become torn worse than ever. That is something that I would not wish on anyone.
Mr. Tom Clarke: In view of the terse account of the events leading to the passing of the Disabled Persons' Rights Act 1986 that was given by the hon. Member for Huntingdon (Mr. Major), the Minister for Social Security and the Disabled, in the "Today" studio yesterday, when he was conveniently beyond challenge, does the Leader of the House agree that in fairness we should have a full debate on these matters so that we can examine closely and precisely what was said during the passage of the Act? Perhaps more importantly, will the right hon. Gentleman respond to the excellent lobby yesterday and the eloquent description of it by my hon. Friend the Member for Liverpool, West Derby (Mr. Wareing) by agreeing that we should have a specific debate on the implementation of the Disabled Persons' Rights Act?
Mr. Biffen: I happened to hear the contribution made by my hon. Friend the Minister for Social Security and the Disabled in the "Today" programme to which the hon. Gentleman refers. I can understand why he feels vexed about it. In my view, my hon. Friend made a most impressive contribution to the debate. I fully understand those who would wish to see the debate carried forward in the Chamber in the near future. It is a request that I shall bear in mind, but given the responsibilities that oblige me to make provision for the Finance Bill, there is no prospect of such a debate early on in Government time.
Mr. Peter Shore: When the Leader of the House reports to the Prime Minister on the exchanges concerning the appointment of bishops, will

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he assure her that there is a very strong view that Birmingham's loss is Stepney's gain — particularly at a time when strong moral leadership is needed to denounce the un-Christian, wretched and discriminatory policies imposed on helpless people who are homeless, and who are now to be evicted by the Liberal council in the borough?
Mr. Biffen: It was a very neat piece of elastic work to embrace so many concepts within one contribution. The right hon. Gentleman's remarks deserve consideration on that account alone, and they will of course be referred to the Prime Minister.

Helicopter Orders
4.20 pm
The Secretary of State for Defence (Mr. George Younger): With permission, Mr. Speaker, I wish to make a statement about the future defence requirement for support helicopters and the orders that I intend to place with Westland plc.
The services possess a number of different types of helicopter capable of transporting troops and undertaking logistic and other tasks: Chinooks, Puma, Sea King, Wessex and Lynx. A key task is to support our Army in Germany, for which—in addition to Lynx of the Army Air Corps — Chinook and Puma helicopters are currently assigned. There is also a wide range of other deployments worldwide.
Until 1985, it was envisaged that both RAF Puma and Wessex support helicopters would be replaced one-for-one by a helicopter of similar size. That approach, however, came increasingly into question as a result of trials conducted by 6 Airmobile Brigade that suggested a requirement for an increased number of larger helicopters. A comprehensive review of the requirement for support helicopters in all roles well into the next century was therefore set in hand.
That work showed the need for additional large helicopters in the central region, capable of lifting a platoon—that is, about 30 men and their equipment—or a substantial logistic load. Those large helicopters, together with some Lynx battlefield helicopters, would enable the Army to provide an airmobile capability and thereby enhance our defence contribution in Germany.
The choice for the large helicopter lies between additional Chinooks, which are already in service in Germany, and the introduction of a utility version of the Anglo-Italian EH101 helicopter, which is due to enter service in the naval version in the early 1990s. The Government have decided that the right choice is to introduce the utility EH101 to meet that requirement. The choice will build on the investment that we have already made in the naval version, and reflects our policy on European helicopter collaboration.
We have at the same time reviewed the case for continued British participation in the NH90 collaborative helicopter project beyond the study phase that was recently completed. NH90 is a smaller helicopter than EH101, and will be available later. With the decision that we have now reached on the future composition of our support helicopter force, we no longer have an early requirement for a helicopter in the NH90 class, nor is there the money to fund both participation in the NH90 definition and development programme — which is due to begin soon — and an early purchase of other helicopters. We are therefore informing our partners that we do not intend to proceed to the next stage of the NH90 project.
In reaching a decision on the choice between alternative support helicopters, and particularly on the timing of orders, I have had much in mind the work load at Westland Helicopters, until work builds up on the naval version of the EH101. Subject to satisfactory resolution of the contractual and other issues with the companies concerned and our Italian partners, we intend to place an order for an initial batch of 25 utility EH101s for delivery in the early 1990s. I also intend—subject to satisfactory

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contractual negotiations—to order a further 16 Lynx helicopters for the support of airmobile operations. The cost of the orders—which have a total value well in excess of £300 million — will be contained within the overall public expenditure planning totals. They are in addition to an order already announced for a further seven Sea King helicopters for the Royal Navy, which I hope to place soon, following the completion of contractual negotiations.
Those orders are also in addition to the continuing defence work for Westland in support of the services' existing helicopter fleet; to earlier Sea King and Lynx orders already announced; to the very large and challenging naval EH101 programme, for which we plan an initial order of 50 helicopters; and to the first stage of a new light attack helicopter. The package that I am announcing will sustain a British helicopter industry capable of meeting the demanding requirements of the services into the 1990s and beyond.
Mr. Denzil Davies: The right hon. Gentleman's statement, although extensively trailed, will nevertheless come as a blow both to Britain's armed forces and—perhaps more strongly—to the helicopter business of Westland, and those who work in that business.
Our armed forces now have fewer helicopters than they had 10 years ago—at a time when the Americans and, more important, the Russians, are building up their own military helicopter fleets. The order will not make up for that deficiency, especially in battlefield helicopters on the central front; it will not safeguard the future of Britain's helicopter industry; and it will not preserve jobs in that industry.
First, does not the statement prove that those of us—including the right hon. Member for Henley (Mr. Heseltine)— who argued that the Sikorsky solution was no solution, and that British participation in the NH90 project would not survive the Sikorsky project, were correct? Was not the Prime Minister wrong about that?
Secondly, is it not the case that, although the French and German partners were informed about the NH90 some time ago, our Italian partners in the EH101 project were not told? If that is so, is it not an insult to our partners in the project?
Thirdly, will the Secretary of State confirm that at least 2,000 direct jobs in Westland, as well as indirect jobs, will be lost, and that one factory is likely to close down in its entirety?
The Secretary of State mentioned contractual arrangements. Can he say when Westland will receive a bankable contract under those arrangements? He also mentioned that more than £300 million would be found within the public expenditure planning totals. Will he explain that? Will the money come out of the existing defence budget totals, and, if so, where will cuts be made to provide it?
Finally, will the Secretary of State tell the House how much of that £300 million will leave the defence budget during this financial year to satisfy all the orders that he announced?
Mr. Younger: I am very surprised at the right hon. Gentleman's response. If, as he says, the announcement will be a blow to the company, will not safeguard industry and is a disaster generally, I cannot imagine what an announcement that no helicopters were being ordered would have meant.
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As the right hon. Gentleman can see, this is a very large order, and it will be extremely helpful to the company. The right hon. Gentleman may be interested to know that the company is issuing a statement this afternoon, in which it welcomes my statement.
I assure the right hon. Gentleman that all the partners have been informed at the same time; none were informed before the others. I have written to all of them.
I hope that the contract will he concluded after the appropriate negotiations have taken place. That always takes some time.
The right hon. Gentleman spoke of the relationship with the Sikorsky deal. I assure him that there is no connection of any kind between the ownership arrangements for Westland and the need or otherwise to order the NH90. The simple reason, which I gave in my statement, is that we have no requirement for more helicopters of the size of the NH90, and it would therefore seem somewhat strange to continue with the programme officially when there are many other uses for funds. As for funds, the cost of the orders that I have announced today will come from within the defence budget, except that for the 60 Lynx helicopters there will be an addition to the defence budget to help with the cost. I cannot tell the right hon. Gentleman offhand how much of the cost will fall on this year's budget, but it will not be very much.
Mr. Jerry Wiggin: Having pressed so very hard and for so very long for these orders, I welcome them, but is it not outrageous that at this very moment Westland is announcing the closure of its factory in Weston-super-Mare? Is my right hon. Friend satisfied that from now on the existing Ministry of Defence fleet of Westland helicopters will have satisfactory spare parts and customer support operations, without the skilled help of my constituents?
Mr. Younger: I am grateful to my hon. Friend for his welcome of the announcement, but I absolutely appreciate the extremely sad effect that it must have had on him and his constituents, which I greatly regret. I pass on my sympathy to those concerned for what to them must be a very unhappy announcement. As for the provision of spare parts and customer support operations, I am assured by the company that any restructuring that it carries out will safeguard its ability to service and support all the Westland helicopters that are in service with the forces. These orders will also enable the company as a whole to look to the future, to restructure itself and to be a thoroughly sound and effective company, with what will be a very large order book. I assure my hon. Friend that the difficulties that undoubtedly will follow in some parts of the company, including that part of it which is in his constituency, will be very much in our minds and that if we can help in any way we shall do so.
Mr. Paddy Ashdown: The Secretary of State will recognise that this will be bitter news for the Westland work force and for the community, who now will have to pay in jobs for the mismanagement of this sad and sorry affair.
Mr. Dennis Skinner: The hon. Gentleman backed it.
Mr. Ashdown: The Sikorsky deal had absolutely nothing to do with it.
Does the Secretary of State not agree that if the company had been in the hands of the consortium that was

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proposed by the right hon. Member for Henley (Mr. Heseltine) it would have been in an immeasurably worse position than it is in today and that its future viability might have been threatened? The NH90 decision was not taken as a result of Sikorsky but because this Government wished to withdraw from the European consortium. Is it not also the case that the British Army asked for more helicopters than the Secretary of State has provided to fulfil its tactical roles in Europe? Is not this, therefore, a case of the Government's short-term vision damaging the country's long-term perspectives?
Mr. Younger: I cannot agree with all that the hon. Gentleman said. Of course this must be extremely unhappy news for those who may find that they lose their jobs at Westland, but it is very good news for the company as a whole and for those who will continue to work for it. It gives the company a firm base on which to plan for the future. I respectfully suggest to the hon. Gentleman that he ought to bear in mind that he has a large number of constituents whose jobs will be secured by this announcement. They will welcome it.
Of course the hon. Gentleman was absolutely right to say that the question of who owns Westland has nothing to do with going on with the NH90. The careful staff studies we have made show that we do not require more helicopters of that size. If we required them, we would be ordering some. As we do not require them, it does not seem to be reasonable to spend limited defence funds on a product that we do not intend to order. It is not the case that we have been asked for more than has been provided. The services and Westland will be very glad to have a large order for the EH101 utility version, which I hope will be a very successful helicopter for many years to come.
Sir Antony Buck: Will my right hon. Friend reiterate for the benefit of Opposition Members that what he has just announced shows that we have laid a firm foundation for the continuation of a prosperous helicopter industry in this country, and will he say a word about the export potential of the types of helicopter that he has mentioned?
Mr. Younger: I am most grateful to my hon. and learned Friend. He is quite correct. This is the type of announcement for which the company has been calling. It has told me continually that it wants to know what helicopters the Ministry of Defence wants so that it can sort out the restructuring of the company. The orders that I have announced for the EH101 — the naval and utility version — the Lynx and the Sea King amount to no fewer than 98 helicopters. In addition, 12 helicopters are now under construction. In the face of that, anybody who says that the Government have not done their utmost to give the company a good, secure sign for the future is running the risk of making himself look very foolish indeed.
Mr. Lewis Carter-Jones: Does not the right hon. Gentleman agree that despite the long delay and the orders that have now been announced, we shall still be 50 per cent. short? It reminds me a little of 1939, when we had the appropriate aircraft but not enough of them. The right hon. Gentleman ought to bear that in mind. Will he take it from me that unless there is collaboration with Europe
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we shall lose face? If he cannot proceed with helicopter collaboration, will he urge on his right hon. Friend the need to proceed with the A330 and the A340 venture so that at least some of the face that we have lost in Europe will be restored?
Mr. Younger: The latter point is of course a matter for my right hon. Friend the Minister of State for the Armed Forces, and I am sure that he will have noted what the hon. Gentleman said. As for the provision of helicopters, when these orders are eventually completed there is no doubt that the British services will be extremely well equipped with helicopters. What is more, the helicopters that they will have will be modern and up to date. I hope that in consequence Westland will be able to sell some of them abroad. It ought to be able to do so, with the boost of the British Government having placed orders for them.
Sir Edward du Cann: Is my right hon. Friend aware that the ending of this long period of uncertainty will be warmly welcomed by the company, by those who work in it, including a number of my constituents, and by the armed services? Is he further aware that the company very badly needs additional orders, despite the fact that his announcement, together with past announcements, means that it is already in receipt of the largest volume of orders that it has ever had in its history? Will he take note of the general feeling that there undoubtedly is in the House that, since the helicopter is a new weapon of war that has been proved both at sea and on land, further attention has to be given to its development, which means further orders in the years to come?
Mr. Younger: I am very grateful to my right hon. Friend, whose knowledge of these matters goes back further than that of most right hon. and hon. Members. I am sure he is right to say that, above all, the company will be glad that the uncertainty under which it has been labouring has been removed. The company has a short-term problem, to which reference has been made in some of the recent statements, but there is no doubt that in the long term Westland has a very large order book. I am sure that all those who live in the west country will be extremely glad to know that it will be a major force in Europe's helicopter industry for a long time to come.
Mr. Doug Hoyle: Does the Secretary of State accept that there will be a void when orders run out between 1988 and 1992 and that today's announcement represents only a drop in the ocean? It will not fill the gap. Although it is welcome, the announcement will not save jobs. Will the right hon. Gentleman tell the House just how many people will lose their jobs and whether the plant at Weston-super-Mare is to close? It is all right for the right hon. Gentleman to say that Sikorsky is not involved, but where are all the orders that it promised to fill the gap? Does it not mean that the right hon. Member for Henley (Mr. Heseltine) was right to propose the European consortium? He resigned over it. As the present Secretary of State has failed to fill the gap, will he also resign and go to the Back Benches?
Mr. Younger: The hon. Gentleman's long supplementary was a little contradictory. He is right when he says that there is a short-term gap. Therefore I am glad that to some extent we have been able to fill it with the Lynx order and by bringing forward, as far as we possibly can, the order for the utility EH101s. As for the loss of jobs and

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the possible closure of any of the Westland factories, that is very much a matter for the company. It has been asking us to let it know where we stand so that it can work out the correct disposition of its resources. That will be for the company to decide and to announce. It is no part of my responsibility as to whether or not Sikorsky takes further business to Westland, but I am sure that Sikorsky has a genuine interest in the company and will do what it can to help. It is not the case, with respect, that the orders I have announced today can be described as non-European. All of them are European collaborative projects: the EH101 with Italy and the Agusta light attack helicopter, also with Italy. That is very good European collaboration and does not bear any of the construction that the hon. Gentleman placed upon it.
Dr. Keith Hampson: Does my right hon. Friend agree that the scale of the Government's contribution is indeed welcome in safeguarding this country's only helicopter manufacturer? That welcome is tinged with some regret because, yet again, in the eyes of our European partners, this country is seen as pulling out of a collaborative project. Does my right hon. Friend agree that much of the responsibility for the work force's disappointment and the redundancies rest on the exaggerated expectations that it was led to have by the hon. Member for Yeovil (Mr. Ashdown) when he so enthusiastically endorsed the prospects for the sale of the Black Hawk? Clearly that has not, come about. Has Sikorsky put any orders to Westland for the Black Hawk? Have any Black Hawks been sold?
Mr. Younger: I am grateful to my hon. Friend. He is right that the scale of the orders will be helpful to the company — indeed, the company has said so in its statement today. I also agree with my hon. Friend that there will undoubtedly be regret that we have decided not to proceed with the next phase of the NH90 collaborative project. I also believe that that decision will be understood. There are not many countries that are prepared to carry on with a collaborative project when they have no prospect of ordering any of the aircraft that might come out of it. I believe that that is a reasonable proposition.
I am not sure about the exaggerated expectations raised, if they were, by the hon. Member for Yeovil (Mr. Ashdown) about these matters. It is a pity if such expectations were raised. However, I do not believe the question of the Sikorsky Black Hawk is relevant to these considerations——
Mr. Doug Hoyle: Nobody wants it.
Mr. Younger: I am assured by the company that, even supposing there were orders for the Black Hawk, it would not produce any work for the company for about five years. It is not in five years hence that Westland will have a problem, but in the next two years. Therefore, whether the Black Hawk is a desirable development or not, it is not a solution for the short-term problem at Westland.
Mr. Tam Dalyell: It was on 18 November 1985, long before any political difficulties, that I was shown round the Yeovil plant by Captain Gueterbock and trade unionists. Did the Secretary of State know that there were political overtones and political associations? That was the view of one of the Westland executives on the radio yesterday morning. Cannot such problems he exorcised only by the truth?
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What is the Government's view of the "World in Action" one-hour programme on Westland? If that programme is not representative and a fair reflection of the truth should not the Government ask for an apology from Granada Television? If it is the truth does it not reveal the sheer depth of the Prime Minister's deception of Parliament on this matter? After all——
Mr. Speaker: Order. The hon. Gentleman must rephrase that please—nobody deliberately deceives anyone in this House.
Mr. Dalyell: I am sorry, Mr. Speaker, but I am not—
Mr. Speaker: Order. Please do not challenge the Chair on that. Please withdraw and rephrase the question.
Mr. Dalyell: This is a fair reflection, Mr. Speaker, of a programme that 8 million people have seen.
Mr. Speaker: Order. The hon. Gentleman is a very experienced parliamentarian. I am asking him please to withdraw that comment and rephrase his question.
Mr. Dalyell: The programme says that the Prime Minister must have known the role of the——
Mr. Speaker: Order. We are dealing with some new orders that have been given to Westland today, not with a television programme.
Mr. Dalyell: I am sorry. A senior executive of that company has said on radio that this is one of the problems——
Mr. Speaker: Order. I do not mind about that, but I must ask the hon. Gentleman please to withdraw what he said about deliberate deception and rephrase his question.
Mr. Dalyell: I am sorry, but this is a fair precis of a programme that 8 million people have seen——
Mr. Speaker: Order. I am not concerned with the programme or what was on it, but I am asking the hon. Gentleman to do what I have asked and I urge him to do that.
Mr. Dalyell: Well, Mr. Speaker——
Mr. Speaker: No.
Mr. Dalyell: A Member of Parliament——
Mr. Speaker: Order. The hon. Gentleman knows the rules of the House as well as anyone. Please will he rephrase his question.
Mr. Dalyell: There is no way of rephrasing it honestly. The fact is that——
Mr. Speaker: Order. I must say to the hon. Gentleman that if he does not rephrase his question I shall have to ask him to resume his seat.
Mr. Dalyell rose——
Mr. Speaker: Order. The hon. Gentleman has heard what I have said.
Mr. Dalyell: Then, frankly, I think that the only reasonable thing to do is for me to withdraw.
Mr. John Wilkinson: May I say to my right hon. Friend how warmly I applaud his decision to procure the utility version of the EH101. In so doing will it not also enhance the potential civil sales of the

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aeroplane, as the transport variant can, as he has demonstrated, be developed more quickly than the naval variant? Can my right hon. Friend also tell the House whether the EH101 is to be powered by the Anglo-French RTM322 engine into which the Government have put funds? Last, but not least, will the EH101 be flown by the Royal Air Force as would be normal in the circumstances?
Mr. Younger: On the last point, I assure my hon. Friend that that will be the case. There are discussions on those matters, but no change is contemplated at the present time. I am grateful to my hon. Friend for what he said about applauding the order for the EH101 utility version. He is absolutely right that this is an aircraft that should have a good civilian market. I attended its roll-out earlier this week and saw the initital civilian version of this aircraft. It looks an extremely attractive buy and I hope that it will do well. There are still discussions going on as to which precise engine will be used in this aircraft and it is not yet decided whether it will be the the RTM322. However, I recognise my hon. Friend's interest in that.
Mr. Dave Nellist: Given the battle that was fought in the Tory party over the Westland workers and the fact that the solution that won that battle has not offered long-term security for the jobs of those who work in the Westland company, is not early-day motion 317, which I tabled 15 months ago, ever more urgent today? It called for the public ownership and the integration of Westland into the rest of the aerospace sector.
Given the present urgency, for example, for the airlifting of grain to famine-stricken areas of the world — [Interruption.] Why is the Secretary of State prepared to come to the Dispatch Box today and witness the destruction of a further 2,000 jobs in that industry? Those workers will take no comfort from his synthetic sympathy this afternoon or from his promises for future job security. They heard all that last year.
Mr. Younger: We are very grateful to have that contribution from the hon. Gentleman, from the depth of his roots in the west country. Those roots are very apparent. I do not agree that this does not give long-term security to the employees of Westland. I understand from the company that there may be some who will lose their jobs—that is extremely regrettable. But this announcement does give some long-term security to the company in the future and, as I said, it has a large order book stretching well through the 1990s.
With regard to the hon. Gentleman's suggestion of the public ownership of Westland — I think that the hon. Member for Yeovil (Mr. Ashdown) will agree with me— if there is any cause that would have absolutely unaminous support in the west country, it would be opposition to a proposal of public ownership of Westland. The hon. Member for Coventry, South-East (Mr. Nellist) is out on a limb there.
Mr. David Heathcoat-Amory: As someone representing an area significantly affected by this statement, I thank my right hon. Friend for the positive way in which he has responded to representations made to him about the need for some additional helicopter orders to see the company through the two-year revenue gap between 1988 and 1990.
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Does my right hon. Friend agree that the job losses announced today by the company are highly regrettable? However, is he aware that the company has confirmed that many of the redundancies would have happened anyway? Is it not highly irresponsible and untrue for Opposition Members to try to lay all the blame at the Government's door? In fact, the additional orders that my right hon. Friend has announced today are a significant help to that company.
Mr. Younger: I am very grateful to my hon. Friend. I can certainly say, as he said, that all the representations that I have had from Members of Parliament who represent people in that part of the country which Westland covers have been extremely effective. People have been very diligent in letting me know the needs of the company. I am grateful to all of them. The answer to my hon. Friend's second point is contained in statement that the company issued this afternoon. It says:
"It should be noted some further reduction in the size of the workforce would have had to take place under any order secenario to improve competitiveness."
I think that that is the answer my hon. Friend is seeking.
Mr. Dennis Skinner: But, on the other hand, one of those workers who has lost his job as a result of the company's statement might have a different story to tell. The chances are that that person, or one of the 1,000 or 1,200 people who have been put on the scrap heap, might well say that, 12 months ago, it was the Labour Opposition who were correct in their stance in trying to ensure that the operation was carried out in a different fashion.
Mr. Ashdown: Seventeen hundred to one.
Mr. Skinner: They might well conclude that the Liberal spokesman, Mr. Paddy Backdown, who is currently heckling, has got it wrong again, and that the Sikorsky plan has now bitten the dust. Some of those workers on the dole might well say that once more here is another example of Britian's manufacturing base being reduced. No wonder the Japanese are laughing all the way to the bank. There is only one person in Britain laughing more than the Japanese, and that is the right hon. Member for Henley (Mr. Heseltine).
Mr. Younger: I am not sure that the view from Bolsover is any more convincing than the view from Coventry. I prefer the view from the west country, which will be relieved to have a clear indication about the future of Westland. That will be much more welcome to people in the west country than the sort of political nonsense that others are producing.
Mr. James Couchman: I visited Westland in September and heard then from senior executives. We have heard again since that time that the company's greatest worry was the gap in orders that it had coming up in two years' time. Today's news will come as a profound relief to the company. Can my right hon. Friend say whether our Italian collaborators in this project are likely to accelerate the ordering of their requirements for the EH101, and can he say a little more about the hope for export orders for the EH101?
Mr. Younger: I am most grateful to my hon. Friend for what he says. He is absolutely right. The really critical matter is the short-term gap over the next two years in the Westland work load. I hope the House will feel that I have

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certainly done everything I possibly can to help about that, although. unfortunately, it was not possible altogether to eliminate that gap.
My hon. Friend asked about export orders. It can only be helpful that there has been a successful roll-out of the new aeroplane and that the first orders placed for it are from the British Government. Such orders are always the first catalyst in getting orders from overseas. I very much hope that that is what will now ensue.
Several Hon. Members rose——
Mr. Speaker: I will call the four hon. Members who are standing and then the Opposition Front Bench. After that we must move on.
Mr. Cyril D. Townsend: Although the Department has taken rather a long time to produce the statement, I congratulate my right hon. Friend on the realism that it contains. He mentioned the Chinook support helicopter. Is he satisfied about the safety of that helicopter, bearing in mind recent incidents in the North sea and in the Falklands? Can he give us an assurance that the tremendous work of supporting and upgrading the fleet of helicopters owned by his Department will be generously shared with private enterprise?
Mr. Younger: I thank my hon. Friend for his welcome. My hon. Friend asked about the Chinook helicopters that we have in service with the armed forces. I can assure him that we take the greatest care to investigate most carefully all the incidents that have taken place. Although we have not yet had complete conclusions about those, and certainly not about the regrettable recent incident in the Falklands, inquiries are continuing. I assure him that the Chinooks involved were of a different type from that which was involved in another recent incident in the Shetlands. That is why it is taking longer to work out the precise cause.
In terms of the general ordering of helicopters, my hon. Friend is correct in his assessment that what we really need is some certainty for the future.
Mr. Peter Griffiths: Does my right hon. Friend accept that, while the orders that he has announced will be important in leading to future security for Westland, they are, perhaps, of even greater importance in securing the future of the subsidiaries of Westland. FPT in Portsmouth, for example, has succeeded in selling components to aircraft and helicopter manufacturers in the United States and the health of that company depends very much on the long-term success of Westland itself.
Mr. Younger: I agree with my hon. Friend. The success of subsidiaries depends upon the health of the parent company and subsidiaries of Westland must at least be assisted by today's announcement. Of course, it is for Westland to decide the future work load for any subsidiaries. My hon. Friend is quite right in looking for future security as the most important matter. My hon. Friend and other hon. Members asked about the future servicing by Westland of the existing helicopter fleet. The company will be reorganising itself with the full intention of carrying on the excellent service that it presently gives.
Lord James Douglas-Hamilton: What will be the implications of my right hon. Friend's statement for the contractors and potential contractors of
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Westland? Will he confirm that his statement means that Britain will have a sustained helicopter industry well into the next century?
Mr. Younger: My hon. Friend's first point is very much a matter for Westland, now that it knows the ordering position. In answer to my hon. Friend's second question, there is no doubt that after the first difficult year or two of a gap in orders, Westland now has a very large order book with orders amounting to many hundreds of millions of pounds. That is a good long-term prospect for the employees of Westland and for the communities in which they live.
Mr. Neil Thorne: In welcoming my right hon. Friend's statement and its commitment to British jobs in the helicopter industry, may I ask him whether he can assure the House that this will also lead to a substantial number of jobs being generated in the British electronic and communications industries, and that orders for such products resulting from these contracts will not go to foreign companies?
Mr. Younger: I do not expect that Westland will in any way change its normal practice which, I think, is always to give the maximum participation to contractors with which the company has done business in the past.
Mr. Kevin McNamara: Eighteen months ago we had the high drama of Westland, and today we have had demonstrated the farce of the Sikorsky solution and the tragedy for the many employees who will lose their jobs. I should be grateful if the Secretary of State could tell us precisely how many jobs will go and from where. He quoted extensively from the company's statement. The hon. Member for Weston-super-Mare (Mr. Wiggin) yesterday suggested that 1,500 would go there. The hon. Member for Yeovil (Mr. Ashdown), who must be wondering about the way that he urged his constituents to vote last year, suggested that 1,000 jobs would go at Yeovil. Can the Secretary of State give a more precise estimate of the number of real jobs that will go?
The sub-contractors to Westland have been concerned over the past few years about their future. What estimate has been made of the number of sub-contracting jobs that will go? The right hon. Gentleman said that some extra money will come from outside the defence budget. Can he tell us what extra money, how much and for how long? He also said that the rest of the money would come from expenditure within the budget. Can he say how much, for how many years, and where the cuts will be made to meet that additional expenditure?
Is the right hon. Gentleman aware that the order for Lynx goes nowhere towards meeting the Army's needs for battlefield helicopters on the central front? It will not solve the problem of our conventional helicopter needs in that area. Our NATO allies have suggested that we need at least an additional 100 helicopters. The decision announced today may assert the viability of Westland in the near future, but it does nothing to meet the need for a European pillar of collaboration or the real defence needs of the British Army on the central front. For many constituents of Conservative and Liberal Members in the west country it will bring nothing but heartbreak.
Mr. Younger: I rather feel that that was the question that the hon. Gentleman had hoped to be able to ask

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before he heard the statement, because it does not bear any relation to the scale of the announcement that I made today. First, it is quite wrong to produce comments or suggestions as if Sikorsky has somehow let everybody down in this matter. In fact, it has fulfilled all that it undertook to do in taking its interest in Westland. There is no sense, profit or truth in trying to suggest that in any way it has let down Westland or us. That is not the case.
On the estimate of job losses, as the hon. Gentleman will perhaps appreciate, it is not I who run Westland. It is up to Westland to work out the consequences to it of the orders that I have announced today. It is perfectly clear that those consequences will be much better after today's announcement than they would have been if the announcement had not been made. That applies also to the point that the hon. Gentleman raised about subcontractors—[Interruption.] The hon. Gentleman would find it easier to get answers to his questions if he listened to them.
The sub-contractors will benefit from the fact that this large number of new orders is being given to the company. When one adds together all the orders that I have announced today, those that the company already has in hand, the naval version of the EH101, which has been on the cards for some time, and the possibility of export orders, it is clear that we are discussing a company which, over the next decade or so, has orders worth well over £1 billion. It cannot be said that that is disastrous news either for the company or for the subcontractors who work for it.
As far as expenditure being within budget is concerned, any expenditure on defence is expenditure that cannot be made twice. Therefore, if one buys anything with the defence budget, one cannot buy something else. However, it is different in this case in that I have got some extra money—this will be published in due course—for the 16 Lynxes that we have added to the order today.
Finally, I agree with the hon. Gentleman that the Lynx is no use for the Army's need for battlefield helicopters. That is correct because it is not intended for that purpose. As the hon. Gentleman will know, there is a joint project with the Italians, whereby the A129 Agusta battlefield helicopter is under a project definition stage with the Italian partners. The Army's need for battlefield helicopters may eventually be met there, and not in this announcement today. It is quite irrelevant to bring it in today.

British Gas (Multiple Share Applications)
5.2 pm
Mr. Kevin Barron: I beg to ask leave to move the Adjournment of the House, under Standing Order No. 20, for the purpose of discussing a specific and important matter that should have urgent consideration, namely,
"the thousands of illegal multiple applications for shares in last year's British Gas privatisation".
It has been brought to public attention today by the accountants, Touche Ross, brought in to police the flotation of British Gas, that they have discovered what appear to be some substantial attempts at fraud in the British Gas share offer.
That report surely calls into question the Government's entire privatisation programme, both past and planned. That public assets such as British Gas should be put at the mercy of organised share-dealing rings and individuals, whose whole motivation is private greed, is a disgrace.
The public and the House have a right to know whether the Conservative party will write to British Gas shareholders for donations to its fighting fund, and also issue a survey asking those people what should be sold off next from the public sector, as it did to British Telecom shareholders.
Touche Ross must be congratulated on using, for the first time, computers to cross-check names and addresses. It is a shame that that system was not used in the past, as it would, presumably, have saved the right hon. Member for Chingford (Mr. Tebbit) the bother of writing six times to an hon. Member of this House asking for his party's paydirt for the selling off of the national asset of British Telecom.
Finally, it is thought that the multiple applications alone are larger than the 6,600 in the British Telecom case, and that the sums of money involved are higher. This House should have the opportunity to discuss this specific and important matter before the Government proceed with any further privatisation, especially with the proposed sale of Rolls-Royce, which seems to make this a matter for the most urgent consideration. I beg to seek leave to move the Adjournment.
Mr. Speaker: The hon. Gentleman asks leave to move the Adjournment of the House for the purpose of discussing a specific and important matter that he believes should have urgent consideration, namely,
"the thousands of illegal multiple applications for shares in last year's British Gas privatisation".
I listened with concern to what the hon. Gentleman said, but I regret that I do not consider the matter which he has raised as appropriate for discussion under Standing Order No. 20, and I cannot, therefore, submit his application to the House.

Birkbeck College (Grant)
5.4 pm
Dr. Oonagh McDonald: I beg to ask leave to move the Adjournment of the House, under Standing Order No. 20, for the purpose of discussing a specific and important matter that should have urgent consideration, namely,
"The cut of half a million pounds in the grant from the university of London to Birkbeck college in the 1987–88 academic year and the prospects of a further sharp decline in the following two years".
That has happened in spite of the commitment by the Secretary of State for Education and Science when he introduced the White Paper:
"I want to encourage more people of all ages to go on to higher education." —[Official Report, 1 April 1987; Vol. 113, c. 1098.]
He made it plain that he regarded the admission of more mature students as a "challenge" to the universities.
Birkbeck is determined to meet those challenges and to continue to provide for its existing students. How then can the Government allow these savage cuts in its grant when, over recent weeks, the Under-Secretary of State has said that Birkbeck should be treated as a special factor in the University Grants Committee's calculation of its block grant to the university of London? A letter from the Prime Minister to my hon. Friend the Member for Holborn and St. Pancras (Mr. Dobson) made the same commitments. The Government should now ensure that proper funds are made available to the university of London so that it can treat Birkbeck as a special factor.
The matter is specific and urgent. The future of Birkbeck college and its tradition of part-time education, leading to degrees, depends on the decisions made over the next few weeks. The House should debate this matter.
Mr. Speaker: The hon. Lady asks leave to move the Adjournment of the House for the purpose of discussing a specific and important matter that she believes should have urgent consideration, namely,
"the serious cut in funding for Birkbeck college in the next, 1987–88, and subsequent, financial year".
I regret that I have to give the hon. Lady the same answer that I gave her hon. Friend the Member for Rother Valley (Mr. Barron). I do not consider the matter as appropriate for discussion under Standing Order No. 20, and cannot, therefore, submit her application to the House.

STATUTORY INSTRUMENTS, &c.
Ordered,
That the Colleges of Education (Scotland) Regulations 1987 (S.I., 1987, No. 309), be referred to a Standing Committee on Statutory Instruments, &c.;—[Mr. Malone.]

Orders of the Day
  Debtors (Scotland) Bill [Lords]
  As amended (in the Standing Committee), considered.
  Debtors (Scotland) Bill [Lords]
    New Clause 1

      REPLACEMENT OF WARRANT SALES BY DEBT ARBITRATION SERVICE
      '(1) Within twelve months of the enactment of this Act, the practice of poinding and warrant sales in connection with domestic debt shall be completely abolished and the Secretary of State shall lay before Parliament an order to set up a Debt Arbitration Service to deal with cases of domestic debt, where either the debtor or the creditor wishes to refer the matter to the Debt Arbitration Service.
      (2)For the purposes of this Act, domestic debt means a debt incurred and owed by an individual, as distinct from a company or body corporate.
      (3)The order under subsection (1) of this section shall he subject to affirmative approval of the House of Commons'. —[Mr. Canavan.]
      Brought up, and read the First time.
      5.7 pm
      Mr. Dennis Canavan: I beg to move, That the clause be read a Second time.
      Mr. Deputy Speaker (Sir Paul Dean): With this it will be convenient to take amendment No. 2, in clause 16, page 14, leave out lines 25 to line 7 on page 15 and insert—
      '(2) All household goods belonging to a debtor shall he exempt from poinding.'.
      Mr. Canavan: When the Bill was first mentioned in the Queen's Speech last November, I gave it a qualified welcome because, with other hon. Members, I thought that it was long overdue that something should be done to change the law on warrant sales. However, the reason why I gave the Bill only a qualified welcome was that I feared that when it was published it would bring about only minor changes in the existing law, as has happened with these rather pussyfooting proposals, rather than seek the more radical solution of the outright abolition of warrant sales.
      When people outside Scotland hear that we still have the practice of poinding and warrant sales, they wonder what sort of civilised society we live in when a sheriff officer can go along and batter on someone's door —in certain circumstances, batter down the door without that person even knowing—and proceed to earmark personal property and goods, to be the subject of a sale. At one time there was certainly much agreement on both sides of the House that something should be done to end this barbaric practice. Indeed, the Scottish Law Commission set up an investigation into the whole system well over a decade ago, but clearly it has been dragging its heels. I understand that its modest proposals are behind the Bill.
      My new clause goes further than the Scottish Law Commission's recommendations and considerably further than the proposals in the Bill. The new clause seeks to abolish completely the practice of poinding and warrant sales in Scotland and to replace it with the much fairer system of debt arbitration. That would be in the interests of both debtor and consumer. Rather than try to rush the matter through, I am prepared to give the Secretary of State, the Solicitor-General for Scotland and their

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      ministerial colleagues a 12-month period in which to introduce the appropriate prohibition and parliamentary order to set up the new system of debt arbitration.
      I am sure that during the various stages of the Bill it has been suggested that warrant sales are no longer the problem that they once were. It is true that their frequency has decreased in recent years. That may well be partly because of parliamentary pressure from hon. Members, such as me and my late hon. Friend Jimmy Dempsey, who had the privilege to represent the constituency of Coatbridge and Airdrie, now Monklands, West. I pay tribute to my hon. Friend the Member for Monklands, West (Mr. Clarke) and his predecessor for their excellent work, and to the trade unions, such as SOGAT, which took direct action in refusing to advertise warrant sales. Partly because of such pressure, the incidence of warrant sales has decreased in recent years. Indeed, I do not know of a single warrant sale which has taken place in my constituency since I started to apply parliamentary pressure by introducing private Member's Bills.
      Although we welcome the decreasing incidence of warrant sales, it is worth pointing out to the Solicitor-General for Scotland that poinding, advertising and the build-up to a warrant sale are a distressing experience, even if the sale is eventually called off. It is a form of legalised intimidation, public humiliation and punishment, rather than a constructive attempt to get a debt repaid.
      Most of the debts are personal or domestic as distinct from debts incurred or owed by companies and bodies corporate. That is why my new clause refers only to personal or domestic debts. Most of them amount to less than £100 and are not contested. In the majority of cases the debtor admits that he or she has incurred the debt and is usually willing to make some effort to repay it. But all too often he or she cannot repay the debt, possibly because of a change of circumstance—for example, unemployment, sickness or a change in family circumstances. Certainly the Government must bear some of the responsibility in this respect, as high unemployment has been exacerbated by their economic policies.
      5.15 pm
      In the majority of cases there is no need to go trailing along to a sheriff court or any other court to prove the debt because the debt is admitted and the debtor is willing to repay it. Surely it makes sense to set up a debt arbitration service where both creditor and debtor can get together through an independent arbitrator and reach some sort of out-of-court settlement. If such a voluntary settlement fails, the debt arbitration officer could be given the power to enforce the repayment by instalments or, in the last resort, by the arrestment of wages.
      In the past we have seen similar debts settled with some success by various arbitrators set up by Governments. The Advisory, Conciliation and Arbitration Service, for example, has had some success in settling industrial relations cases, and the rent officer system has in many cases led to the determination of a fair rent rather than an excessive one. Therefore, it seems that the introduction of the system of debt arbitration would be a reasonable and constructive way of dealing with the problem. Certainly it would be more constructive than the existing system of warrant sales or threatened warrant sales.
      486
      I have not yet seen the speech of the Solicitor-General for Scotland— and certainly I have not helped him to write it — but he will almost certainly refer to the possible expense of a debt arbitration scheme, but the warrant sales system is considerably expensive. Indeed, the expenses incurred through poinding, advertising and even the sale itself sometimes far outweigh the original debt. Constituents have come to me about expenses which have been 10 or 20 times the amount of the original debt. Therefore, the existing system does not make financial sense.
      Moreover, the public purse could save itself court expenses. Obviously, people would go to the debt arbitration officer rather than to court, which would reduce some of the work load and expenses of the court system. If there is any serious threat of an increase in expenditure because of the new system, a levy could be made on credit companies, particularly big credit companies, which do not always act responsibly. Indeed, some act irresponsibly by encouraging people on low incomes to take on debts far beyond their means. Then, when circumstances change, whether through sickness, death in the family or unemployment, those people often find it absolutely impossible to repay the debt under the terms demanded by the credit companies. There may well be a case there for a levy on the credit companies to meet the expense of any new system.
      As a long-time campaigner for this measure, I have made several previous attempts to introduce a private Member's Bill. I have checked Hansard for 3 June 1981 and looked at the sponsors I managed to get for my private Member's Bill, because I realise that on such a measure there could sometimes be an advantage in getting support from both sides of the House. Four Scottish Tory Members sponsored me, including Mr. David Myles—who is no longer with us here—his good and dear friend and neighbour the hon. Member for Banff and Buchan (Mr. McQuarrie) and their good friend the hon. Member for Tayside, North (Mr. Walker) as well as the hon. Member for Argyll and Bute (Mr. MacKay), who is now a Minister in the Scottish Office. Unfortunately, whether by accident or design, he is not here. If he were, obviously I should be urging him to support me with his voice and vote.
      I appeal to the Solicitor-General, on the ground that there is a consensus within Scotland, irrespective of party political divisions in the House or in Scotland in general, to end this system. The vast majority of the people of Scotland want to end it. They do not want a tinkering with the system through these pussyfooting reforms proposed by the Government; they want complete abolition of the system. The system of warrant sales is seen as a barbaric, inhuman, medieval practice which has caused undue hardship to countless thousands of people and their families. It is high time that the House of Commons abolished it for ever.
      Dr. Norman A. Godman: I rise to support the new clause and the amendment. We are presumably talking about a small number of cases when we discuss warrant sales, and, as my hon. Friend the Member for Falkirk, West (Mr. Canavan) suggests, an arbitration service could play a useful role. The Solicitor-General knows that I am unhappy with the notion that a debtor's effects can be auctioned off in a local sales room. We disagree about the usefulness of such a measure, On

      487
      Second Reading I said that holding the sale in an auction room was an improvement on a warrant sale being held in a debtor's house, but that it was an unsatisfactory arrangement because the stigma is still there and little money would be raised from such a sale given the rings that we know are organised by furniture dealers and others when such sales take place.
      My hon. Friend's new clause is an even better proposal than that of removing the warrant sale from the debtor's house and taking it to the auction room. I believe that the concept of a debt arbitration service is good and constructive and is certainly worthy of consideration by this Government and their successors.
      Mr. Tom Clarke: In addressing myself in the main to amendment No. 2, I must say that I welcome the reference by my hon. Friend the Member for Falkirk, West (Mr. Canavan) to my predecessor, the late Jimmy Dempsey. Jimmy Dempsey shared our repugnance for warrant sales in any form and my hon. Friend, whose comments were most generous and should be much appreciated, will know that on Second Reading, as well as in Committee, the Opposition placed on record very firmly the view that warrant sales in every shape or form ought to be abolished.
      In saying that all household goods belonging to a debtor should be exempt from poinding, we are trying to give effect to the thinking expressed in the Scottish Law Commission's report, which obviously influenced the Government in drafting the Bill that they have put before the House. In Committee, I was left with the impression that certainly the Opposition wanted to see householders protected from humiliation and from the idea that sheriff officers can involve themselves in poinding various goods which are outlined in clause 16. Some are exempted: beds or bedding, household linen, and so on. The Solicitor General will recall that in Committee we had some doubts as to whether a washing machine might be the subject of exemption. To put the matter beyond any doubt, we thought it right to table this new clause making it clear that all household goods belonging to a debtor shall be exempt from poinding.
      We believe that the Bill would be improved thereby and that assistance would be given to the debtor as well as to the creditor. The great mass of evidence that we have seen suggests that people find themselves in debt not because there is a willingness on their part to be in that position, but for other reasons. We believe that help is needed and that the legislation that we seek to introduce should be of assistance to the debtor and to the creditor in trying to find a solution to the problem by ensuring that the debt is paid, in time, without humiliating the householder or his family.
      We believe that if the new clause were accepted, it would put this matter beyond question and, above all, remove any suggestion of humiliation in the way that has rightly been held in contempt by my hon. Friends the Members for Greenock and Port Glasgow (Dr. Godman) and Falkirk, West.
      The Solicitor-General for Scotland (Mr. Peter Fraser): I suspect that I am suffering this afternoon for having pointed out on Second Reading that the hon. Member for Falkirk, West (Mr. Canavan) was not present. Nevertheless, in spite of the crack that I made then, I am grateful to the hon. Gentleman for putting forward this new clause on debt arbitration rather than the arrangements which we discussed in Committee.
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      As the hon. Gentleman may recall, The Labour party put forward certain proposals to the Scottish Law Commission during the course of its deliberations suggesting that there should be a debt arbitration service of some sort, and the Commissoner recorded the following in paragraph 2.85 of its report;
      "It would appear that poindings and warrant sales"—
      in relation to such a debt arbitration service—
      "would not be permitted, though this is not entirely clear."
      The hon Gentleman suggests the introduction of a debt arbitration service and the abolition in its entirety of the diligence of poinding and warrant sale. His colleagues have certainly been criticised during the passage of the Bill for failing to put forward any alternative of this character, and to that extent at least it is interesting that the hon. Gentleman should have done so. But it seems to me that there are a number of quite significant flaws in the way in which he has proposed it.
      First, let me say that I am aware of the Bill that the hon. Gentleman introduced in 1981. There was some obscurity in that Bill about what would be required in terms of enforcement. The hon. Gentleman has changed his proposal from personal debt in his Bill in 1981 to domestic debt in this new clause. I think that I understand what is intended, but either definition would take us further into commercial matters than I suspect the hon. Gentleman intended. For instance, partners may in some circumstances be personally liable for the debts of the partnership. Those debts might thus be regarded as domestic within the meaning of the new clause.
      5.30 pm
      I rehearsed the arguments for and against the retention of poinding and sale at some length during the earlier stages of the Bill. I went into the arguments for reform rather than abolition in some detail on Second Reading. I do not propose to rehearse those arguments again. Suffice to say that the Scottish Law Commission advanced many cogent arguments against abolition in chapter 2 of its report, and the retention of a reformed procedure was the starting point of the recommendations in that report, and indeed that is the foundation on which the Bill is built.
      I want to consider the somewhat unspecific debt arbitration service proposed by the hon. Member for Falkirk, West. I suppose that its purpose will be to arrange for payment by instalments and to interrupt enforcement of debts by the diligences still available to creditors. The hon. Gentleman may want the Secretary of State to set up an arbitration service similar to that proposed by the Scottish Consumer Council. Indeed, that might be a more workable system than that suggested by the hon. Gentleman. As the hon. Gentleman has developed his argument, I understand that he wants to get rid of all poinding and warrant sales. He does not simply want that system as an opt-out arrangement as the Scottish Consumer Council suggested.
      I understand how a debt arbitration system would work in cases where people had a multiplicity of debts and no significant assets out of which to make payment, but the hon. Gentleman has not addressed himself to the debtor —perhaps the hon. Member for Falkirk, West himself—who is simply unco-operative, but who has sufficient means to pay his debts. Such a person may simply be unco-operative over the payments due. Such a debtor may not be in any real significant financial difficulty; he may simply decline to pay. The hon. Member for Falkirk, West

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      has not made it clear what will happen under a debt arbitration system if a debtor simply declines to participate in that arrangement for debt arbitration. Is that person entitled simply to shrug his shoulders and go off?
      I suppose that it is possible, given the very much improved arrangements for arrestment in a later part of the Bill, that the system could be operated. However, what will happen when someone has a valuable moveable asset —for example, a Van Gogh hanging on the wall of his house? In such a circumstance, if the hon. Gentleman's scheme were followed, there would be no way in which the owner of the Van Gogh's perfectly lawful creditors would be able to get satisfaction for the debts owed to them.
      Mr. Canavan: The new clause makes it perfectly clear that either the debtor or the creditor can refer the matter to the debt arbitration service in a case such as that outlined by the Solicitor-General, in which a fairly rich debtor is simply being unco-operative in paying the debt. There is nothing to stop the creditor going to the debt arbitration service.
      During my speech, I said that the debt arbitration officer could, and in my view should, be given the power to enforce the repayment of the debt in cases where there is clearly an ability to repay the debt, but the debtor is unwilling to pay. I do not know of anyone who has a Van Gogh or a Rembrandt who does not have a few bob in the bank as well. It would be more practical, to achieve a constructive repayment of the debt, to arrest that person's wages or unearned income or whatever than to grab the Rembrandt or Van Gogh and to sell it at a warrant sale. Frankly, the Solicitor-General's example was ridiculous.
      The Solicitor-General for Scotland: The hon. Gentleman is trying to slip around the point. He will not face the fact that the example that he has just given would require the individual — whom he describes as the debt arbitration officer — to have power to enforce the system. The hon. Gentleman must face this point. It is a matter of intellectual argument. What powers of enforcement would he grant to that individual? If a debtor simply says that he accepts that he owes the debt but will not pay it, what will happen then? An arrestment may be made, but that is elaborate and clumsy. If someone owes a large sum of money——
      Mr. Canavan: What did the Government do to the National Union of Mineworkers? They seized its bloody funds.
      The Solicitor-General for Scotland: I do not think that I will go down that particular path; nor will I adopt the hon. Gentleman's unparliamentary language.
      Mr. Barry Henderson: Is the situation that my hon. and learned Friend has described, in which an arbitrator has no power, similar to that of a Chairman of a Committee of this House who has no power in Committee to eject an hon. Member who is not a member of that Committee, but who is disrupting the proceedings of that Committee and of the House?
      The Solicitor-General for Scotland: I grasp my hon. Friend's allusion, but Opposition Members may rest assured that I shall not follow my hon. Friend down that route.
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      There is a substantial difficulty. As I said to the hon. Member for Falkirk, West a moment ago, bodies such as the Scottish Consumer Council have carefully considered the possibility of a debt arbitration service. However, those bodies did not slip away from facing up to the difficulty that, if such a system existed, it could be introduced only as an option or alternative. It would not be possible to introduce a coherent and workable scheme if, as an ultimate remedy, no form of enforcement was retained through the reformed procedures of poinding and warrant sales.
      The hon. Member for Falkirk, West said that if we talk to anyone outside Scotland, that person will not have heard of poinding or warrant sales. That is correct. I do not know of any other system with practices called poinding or warrant sales. However, there is no mature legal system—as far as I am aware—that does not have at least a comparable system.
      The hon. Member for Monklands, West (Mr. Clarke) spoke briefly about amendment No. 2:
      "All household goods belonging to a debtor shall be exempt from poinding."
      We had considerable discussion about that in Committee. I immediately have difficulty about the provision that the hon. Gentleman suggests. What are household goods?
      Mr. Archy Kirkwood indicated dissent.
      The Solicitor-General for Scotland: The hon. Member for Roxburgh and Berwickshire (Mr. Kirkwood) is shaking his head in a knowledgeable way. However, according to amendment No. 2, anything that is contained in a house, whatever its value, whatever its use, or whatever reasonable use is required of it—
      Mr. Kirkwood: What about the Van Gogh?
      The Solicitor-General for Scotland: The hon. Gentleman wants to pursue my example. If there is a valuable painting on a wall, is that "household goods"?
      Mr. Kirkwood: Of course it is.
      The Solicitor-General for Scotland: It is highly arguable whether it is. If the hon. Member for Roxburgh and Berwickshire says that it is not part of household goods, he is effectively saying that we should consider the list in clause 16 of the Bill and decide that household goods do not include paintings on walls, satin pillows or such things. Rather, they are goods that are reasonably required for people to carry on their lives. The Government and the Scottish Law Commission believe that——
      Mr. Tom Clarke: Will the hon. and learned Gentleman give way?
      The Solicitor-General for Scotland: No, I want to finish my point.
      We have said that the proper way to approach the matter is to have an extensive list— one that is much more extensive than the previous list. For example, according to amendment No. 2, if a warehouse were full of refrigerators and there was a commercial debt, there can be no doubt that refrigerators are household goods. In such circumstances, all those items would be exempted from poinding and ultimately from warrant sales.
      The hon. Member for Monklands, West has made several efforts to extend the list in clause 16 and to modify some of its provisions. I have given some examples showing how difficult it would be to rely on such a broad

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      test. If we did so, we would be considering what are truly commercial debts. Far from there being less difficulty, there is a grave possibility that we would have to leave it to the courts in circumstance after circumstance to decide whether paintings or other items were truly household goods. Far from Parliament or the Scottish Law Commission deciding what should be included in the list, effectively we would be asking the courts to determine for us what should be included in the definition of household goods.
      Mr. Tom Clarke: In Committee, the hon. and learned Gentleman did not have much difficulty in explaining to my right hon. Friend the Member for Glasgow, Govan (Mr. Millan), who had some doubts about whether a washing machine was exempt, that it was. Why is the hon. and learned Gentleman so confident about that? Where does a dish-washing machine figure in the Government's thinking? In the absence of a clear explanation, does the hon. and learned Gentleman not feel that "household goods" is a much clearer definition than what appears in clause 16?
      The Solicitor-General for Scotland: We are going to move quite a long way from the amendment. Clause 16(2) contains an extensive list of what is required. I thought that the right hon. Member for Glasgow, Govan (Mr. Millan) understood from my answer that we did not include the term "washing machine" but relied on a broader definition. We wanted to ensure that we were talking not simply about a washing machine, rather than a spin drier—or, to develop the technology of the times, the two incorporated in a single appliance, with the problem of deciding whether it was or was not a washing machine. Accordingly, we decided that it was safer to use the broader definition in clause 16(2).
      I have said why I do not accept the view of the hon. Member for Falkirk, West of a debt arbitration service. I am surprised at the approach of the hon. Member for Monklands, West, who fought valiantly in Committee to refine clause 16(2). He now shrugs his shoulders and says that all household goods are to be exempted. That would mean that the courts would have to decide what should or should not be included.
      Mr. Gregor MacKenzie: I have a great deal of sympathy with the point raised by my hon. Friend the Member for Monklands, West (Mr. Clarke) because of the simplicity it offers. I notice that under clause 16(3) the Lord Advocate may add to or delete from the list from time to time. The hon. and learned Gentleman knows very well that it is a long time since we have heard about an exercise in diligence of this kind. Work has been going on for 17 or 18 years on the present exercise. Would the Lord Advocate be prepared to add to or delete from the list annually? Things change rapidly. I, for one, should be greatly reassured if the Lord Advocate were to do this annually.
      The Solicitor-General for Scotland: I cannot give the right hon. Gentleman an undertaking that the Lord Advocate will do so annually. But the right hon. Gentleman clearly appreciates the provisions of clause 16(3), which states:
      "The Lord Advocate may by regulations add to the list… delete or vary any of the items".
      I cannot immediately envisage any item that needs to be added to or deleted from the list. However, if at any time
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      it is thought that the list should be added to or varied, that can be done without any 10-year consideration of the item. It can be done immediately. I do not envisage that, if the Lord Advocate decided that an item should be added to the list, and accordingly excluded from what might be subject to poinding and warrant sales, it would excite much controversy in the House.
      5.45 pm
      Mr. Canavan: I do not see any difficulty about the interpretation of "household goods". The Solicitor-General for Scotland is talking absolute rubbish. Under the prohibited items, page 15 of the Bill lists
      "tools used for maintenance or repair of the dwellinghouse or of household articles."
      "Household articles" is clear by definition and is not subject to interpretation by a sheriff. What, therefore, is wrong with the term "household goods", used by my hon. Friend the Member for Monklands, West (Mr. Clarke)?
      The Solicitor-General for Scotland: I know that the hon. Gentleman had a lot to think about as I was speaking, following my attack on his proposed debt arbitration service.
      Mr. Canavan: What is the answer?
      The Solicitor-General for Scotland: If I am provoking the hon. Gentleman, I withdraw. I want to get on with the debate. The hon. Gentleman does not seem to have grasped one problem.
      If amendment No. 2 were to be accepted, not only would household goods in the debtor's home be excluded from poinding but, if the debtor happened to be a commercial man who had a warehouse full of refrigerators, hi-fis, and so on, those items would not be subject to poinding and warrant sale. For that reason, I hope that the hon. Member for Falkirk, West is prepared to withdraw the motion and new clause. If the hon. Members for Falkirk, West and for Monklands, West continue to have any misgivings about what is excluded in clause 16(2) from poinding and warrant sales, an opportunity remains immediately the Bill becomes law to make representations to the Lord Advocate to add to or vary by regulation what is included in the list.
      Question put and negatived.

    Clause 5

      TIME TO PAY ORDERS
      The Solicitor-General for Scotland: I beg to move amendment No. 1, in page 5, line 1, leave out from first 'arrestment' to 'has' in line 2.
      This is a technical amendment designed to improve the clarity of the clause.
      Amendment agreed to.

    Clause 32

      LOCATION OF SALE
      Mr. Tom Clarke: I beg to move amendment No. 4, in page 25, line 25, leave out from 'except' to end of line 27 and insert
      'in the case where an auction room or suitable alternative premises is not available in the vicinity.'.
      The amendment is dear to the hearts of a number of my hon. Friends, especially my hon. Friend the Member for

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      Greenock and Port Glasgow (Dr. Godman), who expressed some of his opinions earlier today. We are confused about the Government's thinking on where the sale of a person's goods should take place. We do not support the view that it should take place in the house. We resisted the Government's thinking so far as we could on Second Reading and in Committee but could not persuade the Government to share our views.
      On Second Reading, the Solicitor-General for Scotland distinguished between circumstances in, for example, the constituency of the hon. Member for Roxburgh and Berwickshire (Mr. Kirkwood) and circumstances in my constituency. Ever since, even after the hon. and learned Gentleman's explanation, I have been thinking about exactly what he meant. In an endeavour to co-operate with his thinking, I suggest that this amendment might be acceptable. It would mean that a sale would not take place in a person's house, even if he had been persuaded against his wishes to hold it there. Even if he exercised all the rights that the Bill would give him to consult with other occupiers, and so on, it would not remove the stigma which long remains after a sale takes place in a person's house. Therefore, in the light of the Government's logic, in so far as we could understand it, there was virtually no case for insisting that a sale should take place in a person's house. We are, therefore, offering the option in this amendment, solely in circumstances where an auction room or other suitable alternative premises is available in the vicinity, for such a sale to take place.
      What we have tried to do is to simplify the whole exercise and to introduce as much dignity as we can into these proceedings. We feel that if there is an option available, although the Solicitor-General will say that it might cost money, when set against the humiliation that would be guaranteed if a house is used, the cost of an auction room is the lesser of the two evils. In that spirit I hope that the Solicitor-General will accept the amendment.
      The Solicitor-General for Scotland: This amendment removes the requirement for the written consent of the debtor or occupier to the sale in a dwelling-house and allows such sales to take place where an auction room or suitable alternative premises is not available in the vicinity. With respect to the hon. Gentleman, I think something has gone slightly wrong with his amendment because it removes the critical or crucial requirement for the debtor's or occupier's written consent to a sale in a dwelling-house. I do not think the hon. Gentleman intended the amendment to come out in that way.
      If the amendment were to be effected, there would be the opportunity for a sale in a dwelling-house if there were no alternative auction rooms available, but it would remove the requirement for consent. As I said both at Second Reading and in Committee, the circumstances in which a warrant sale might take place in a house are very limited. We believe that if such a sale is to take place, it must be not only with the consent of the debtor but also that of the occupier, who might be a different person in many circumstances.
      I am not trying to twist the hon. Gentleman's tail purely for the sheer pleasure of it, but the effect of what he has put down would achieve an objective that is wholly
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      contrary to what he is trying to do. In certain circumstances it might be far more damaging to a debtor than what the Government are proposing.
      Mr. Clarke: I am always anxious to reciprocate the generosity that we receive from the Government side of the House, but the Solicitor-General has misunderstood the amendment. The effect of this amendment would underscore our opinion that these sales should not be taking place in homes or houses in any case. If we argue and pursue the principle that it is wrong for sales to take place in a given house, there is no need to qualify that argument by saying that one ought to consult the occupier. The basic thrust of the amendment is that there should not be sales in houses at all unless it can be shown that alternative and suitable premises are not available, so that the sale can take place.
      The Solicitor-General for Scotland: I think the hon. Gentleman is not quite understanding this. Under what we have proposed, where no auction room is immediately available, for example in the north of Scotland, if the debtor or occupier said, "No, you cannot have a warrant sale and I refuse to consent to a warrant sale in the house," steps would have to be taken to get the goods to an auction room, however far away it was.
      Curiously, under the hon. Gentleman's proposal, it would be possible in a rural area, where there is no auction room available, to press ahead with a warrant sale without any consideration of whether the debtor or occupier consents. The hon. Gentleman shakes his head but I trust that the penny is beginning to drop with him and that that is a consequence that he cannot have intended to bring about by his amendment.
      We understand that the practical ordinary circumstance will be that a warrant sale will take place in an auction room. We accept that that is the most humane and sensible way to approach it, to secure the anonymity of the debtor and avoid personal humiliation and embarrassment. It is only where the debtor or occupier consents—and there may be good reason for that, if he is leaving the neighbourhood and wants to get as much as possible for the goods without the cost of taking them to an auction room — that he might be prepared, but could not be forced, to have a warrant sale in his home.
      Dr. Godman: There is an improvement with the shift to an auction room because it does guarantee anonymity. Is the Solicitor-General satisfied that this Bill protects the interests of a debtor when such a sale takes place in an auction room?
      The Solicitor-General for Scotland: Yes, and that is a point that I ought to have picked up from the hon. Gentleman's earlier intervention. He possibly has not appreciated that once a debtor's goods go to an auction room, the debtor will be wholly anonymous. Nothing will be tagged on to the goods to indicate that they were taken under warrant sale from such a debtor at such an address. That humiliation will not occur. I am satisfied that once the goods go to the warrant sale, the debtor will not be identified in any way, nor will his goods be identified to the public at large as having belonged to him. I hope that the hon. Gentleman will be prepared, now that I have given that explanation, to withdraw his amendment.
      Mr. Tom Clarke: I beg to ask leave to withdraw the amendment.
      Amendment, by leave, withdrawn.

    Clause 47

      GENERAL EFFECT OF EARNINGS ARRESTMENT
      The Solicitor-General for Scotland: I beg to move amendment No. 5, in page 37, line 16, after 'recalled', insert
      'or abandoned by the creditor.'.
      Mr. Deputy Speaker: With this we will take amendment No. 13.
      The Solicitor-General for Scotland: These are technical amendments designed to remove any doubts that an earnings arrestment or a current maintenance arrestment ceases to have effect on its abandonment by the creditor.
      Amendment agreed to.

    Clause 49

      DEDUCTIONS FROM NET EARNINGS TO BE MADE BY EMPLOYER
      Mr. Bruce Millan: I beg to move amendment No. 6, in page 37, line 38, after '(1)' insert 'Subject to subsection 6(a) below'.
      Mr. Deputy Speaker: With this we will take the following amendments: No. 7, in page 38, line 15, after `(2)', insert
      'Subject to subsection 6(a) below'.
      No. 8, in page 38, line 27, after '(3)' insert
      'Subject to subsection 6(a) below'.
      No. 9, in page 38, line 43, after '(4)' insert
      'Subject to subsection 6(a) below'.
      No. 10, in page 39, line 1, after '(5)' insert
      'Subject to subsection 6(a) below'.
      No. 11, in page 39, line 7, after '(6)' insert
      'Subject to subsection 6(a) below'.
      No. 12, in page 39, line 26, at end insert—
      '(6) (a) The Court may, on the application of the debtor, reduce the amounts payable under subsections (1) to (6) above.'.
      Mr. Millan: These amendments deal with the sliding scale of payments that can be deducted from a debtor's earnings under schedule 2 to the Bill. When I first read the Bill, I was worried about the mechanical nature of the arrangements that are being made. I do not object to that in principle, but I was worried that there is no exception to the arrangements that are laid down in the Bill. I now regret that I did not raise my concern on Second Reading and in Committee. I thought then that I was slightly too worried about the arrangements in the schedule.
      Following the Committee Stage, the hon. Members who sat on the Committee received a letter from the Scottish Association of Citizens Advice Bureaux expressing similar concerns about the fact that there is no provision in the Bill for an exception to the sliding scale arrangements. That is the reason why I put down the amendments.
      6 pm
      Of course, we all recognise that the arrangements under the Bill generally are a considerable improvement. No one disputes that. If amounts are to be set down in the legislation, they have to be on a sliding scale because they have to take account of the debtor's income. Nevertheless, the figures in schedule 2 that can be deducted weekly are considerable; similar substantial amounts are calculated
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      on a monthly basis. For someone with weekly earnings exceeding £280 but not exceeding £300, the deduction is £83. That is a very large sum to deduct from anyone's income. Anyone who has a big weekly wage is also likely to have large weekly commitments such as a mortgage payment or rent which it may not be easy to set aside. The figures in the schedule are substantial and take no account of the personal circumstances of the debtor.
      The purpose of my amendments is to allow a debtor to make application to the court to have the payments reduced. I would not expect such a provision to he used frequently. If it were, I would not expect the court always to give a favourable response to an application; otherwise, there would be little point in writing a sliding scale into the legislation. Nevertheless, flexibility would be preferable to the provision in the Bill.
      It is for that reason that I tabled the amendments. As I said, this part of the Bill has worried me from the beginning. I regret that I did not raise it in Committee but it is better to do it now than not at all. The provisions are causing concern elsewhere among people who are familiar with the working of such arrangements. Therefore, it is well that their concerns should be ventilated.
      The Solicitor-General for Scotland: I see force in what the right hon. Member for Glasgow, Govan (Mr. Millan) has said but I shall not recommend acceptance of the amendment. After a brief explanation, I hope that he will appreciate that the result he seeks can be achieved by a different route. I should point out to him that the Scottish Law Commission considered whether the courts should have the power to vary deductions in paragraphs 6.7 and 6.8 of its report. It concluded that the courts should not have this power, for reasons of practicality. Many earnings arrestments would subsist for only a few months, so that applications for variations of deductions would have to be disposed of quickly; evaluation of the debtor's means and liabilities, however, which is the basis of any application, could take a considerable time.
      Moreover, if debtors became aware of the court's powers, there was anxiety that there might be a flood of applications. Clearly, the right hon. Gentleman was aware that that would be an undesirable development. Accordingly, the advantage of simplicity and ease of operation of earnings arrestment would be lost.
      From the discussion in Committee, I think we all appreciated that for arrestment of earnings to work satisfactorily it was desirable that the minimum burden should be imposed on the employer, not least because of the difficulties it can cause between employee and employer if the arrangement is too elaborate or clumsy.
      What I hope the right hon. Gentleman will appreciate, if he has not done so already. is that if an arrangement is made for earnings arrestment and the debtor finds himself in difficulty in making a payment according to the schedule set out in the Bill, there is an opportunity elsewhere in the Bill for him to apply to the court for a time-to-pay order, proposing a lower rate of payment and a recall of the earnings arrestment. I suggest to the right hon. Gentleman that that will meet his objective. If a debtor found that he could not make a payment, he could make application in this way. If he had a good case, the earnings arrestment would be suspended and a lower rate of payment by instalment rather than by earnings arrestment could be achieved.

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      If we are to move away from the statutory schedule of what should be deducted, the advantage of using the time-to-pay order is that the employer would not be asked to apply a different figure and would not have to instruct his or her bookkeeper to make a further deduction. That is a simple and effective way to deal with the matter. I hope I have satisfied the right hon. Gentleman that we take his point, but that it is appropriately dealt with in the Bill.
      Mr. Millan: I am grateful for the explanation. I had not realised on reading the Bill that once the process was in operation it would still be open to the debtor to apply to the court for a different arrangement. Whether in practice there would be time for that to be done successfully before the whole debt had been recovered must be doubtful in most cases, but I am satisfied with the explanation given, that there is a mechanism available which I had not understood before. In those circumstances, I beg to ask leave to withdraw the amendment.
      Amendment, by leave, withdrawn.

    Clause 73

      INTERPRETATION OF PART III
      Mr. Millan: I beg to move amendment No. 14, in page 57, line 23, at end insert 'or'.
      Mr. Deputy Speaker (Mr. Harold Walker): With this it will be convenient to discuss the following amendments: No. 15, in page 57, line 29. leave out from 'employment' to end of line 30.
      No. 16, in page 58, line 4, at end insert—
      '(h) statutory sick pay.'.
      Mr. Millan: The purpose of these amendments is to take statutory sick pay out of the list of items which are included in earnings for arrestment purposes and put it into the list of items which are not to be treated as earnings in the arrestment arrangements. Again I am obliged to the Scottish Association of Citizens Advice Bureaux for pointing this out, because I missed it on reading the Bill initially.
      I find it odd that statutory sick pay, which is like a social security benefit, should be included in the determination of earnings for arrestment purposes. Under the clause, other pensions, allowances or benefits payable under social security legislation are excluded. In those circumstances I do not understand why statutory sick pay should be included. In fairness, statutory sick pay should be excluded. I hope the Solicitor-General will agree to statutory sick pay being transferred to the category of items which are not to be included as earnings for arrestment purposes.
      The Solicitor-General for Scotland: Hon. Members will be aware that the Bill makes a deliberate and careful distinction between payments—pensions, allowances and benefits — made under social security legislation and statutory sick pay. Payments under social security legislation are expressly provided to be not equivalent to earnings. Such payments are therefore quite rightly not taken into account in the Bill's provisions about which deductions are to be made under an earnings arrestment from weekly or monthly earnings.
      On the other hand, statutory sick pay is payable in replacement of earnings when an employee is sick. It is
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      therefore entirely reasonable and logical that what an employee receives from his employer, whether as earned wages or statutory sick pay, should be treated as earnings for the purposes of the Bill's provisions. That was the intention of the Scottish Law Commission, which it expressed in paragraph 6.36 of its report. The provisions simply bring Scotland into line with England and Wales.
      In 1985 the relevant English legislation about attachment of earnings was amended by the Social Security Act 1985. This House and the other House have accepted the principle that statutory sick pay is to be equated with earnings. For that reason it is difficult to see why the right hon. Member for Glasgow, Govan (Mr. Millan) foresees any distinction being brought about between Scotland and the rest of the country.
      The system that we have is designed to safeguard the interests of the debtor and creditor by ensuring that regular payments are made to the creditor to reduce the debt. The regular instalments are of an amount which the debtor can be reasonably expected to contribute. This scheme would be disrupted if, in a week in which the employee was sick, no deductions from his earnings were to be made. It would produce quite unnecessary complications for the employer — who must operate the arrestments — and the employee. The disruption in the smooth running of earnings arrestment is not necessary or justifiable on the ground of principle. The right hon. Member for Govan probably is aware that the Scottish Association of Citizens Advice Bureaux has made that point.
      What should be made clear is that if deductions are to be made from statutory sick pay they should be on the basis of the net earnings as set out in the schedule to the Bill. The amount of deduction would not continue at the rate appropriate to the wages received prior the period of sickness.
      As the right hon. Gentleman will appreciate, it is not just statutory sick pay arrangements that are made; certain additional sick pay arrangements are also made. If what the right hon. Member suggested were to be incorporated in the Bill it would leave the employer in the extremely complicated position of trying to work out exactly what was to be included in earnings, from which a deduction could be made, and what was to be excluded.
      On that basis I hope that the right hon. Gentleman will withdraw his amendment.
      Mr. Kirkwood: I rise because I was not quick enough to catch the eye of Solicitor-General for Scotland. Am I right in assuming that the new statutory maternity pay would come under the social security legislation, to which he adverted, and therefore would be exempt? That is a detailed point, so if he cannot answer it now I should like some assurance at a later date.
      The Solicitor-General for Scotland: I cannot be certain on this point. If the hon. Gentleman wants me to pursue it, I shall write to him.
      Mr. Millan: I am not convinced by the argument of the Solicitor-General for Scotland. I did not mention any distinction between Scotland and England; I was not aware that there was a difference. The argument that Scotland must be brought into line with England for consistency reasons is an unattractive one. It persuades me that my amendment is a good one.

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      Statutory sick pay is what would otherwise be a national insurance benefit. The Solicitor-General for Scotland shakes his head, but that is what it is. It puts a certain obligation on the employer in circumstances where previously national insurance benefits were paid. It should be included, analagously, with national insurance benefits in the items which are excluded from the definition of earnings for the purposes of this clause. I am not persuaded by the argument of the Solicitor-General for Scotland and I feel disposed to take this to a Division.
      Amendment negatived.
      6.15 pm
      Mr. Deputy Speaker (Mr. Harold Walker): I must apologise to the House because I omitted to deal with amendment No. 13. Will the Solicitor-General for Scotland please move it formally?
      Amendment made: No. 13, in clause 51, page 40, line 28, at end insert 'or abandoned by the creditor.'. — [The Solicitor-General for Scotland.]

    Clause 101

      ADJUDICATION FOR DEBT
      The Solicitor-General for Scotland: I beg to move, amendment No. 17, in page 73, line 41, after first 'debt', insert
      '(other than an auction under section 23(5) of the Conveyancing (Scotland) Act 1924)'.
      Mr. Deputy Speaker: With this it will be convenient to take Government amendment No. 18.
      The Solicitor-General for Scotland: This is a highly technical amendment.
      Amendment agreed to
      Amendment made: No. 18, in page 73, line 43, at end insert—
      '(aa) the debt is a debitum fundi; or'.;—[The Solicitor-General for Scotland.]
      Order for Third Reading read.—[Queen's Consent on behalf of the Crown, signified.]
      6.18 pm
      The Solicitor-General for Scotland: I beg to move, That the Bill be now read the Third time.
      I should like to thank right hon. and hon. Members for the general welcome that they have given the Bill. The welcome was not as unqualified as we might have wished, but nevertheless it ensured that consideration of the Bill both here and in Committee proceeded in a constructive manner.
      As I mentioned in Committee, the Bill was dealt with expeditiously, but that did not prevent us giving a good airing to the main points at issue. I am grateful to my hon. Friends for their contributions and particularly to the Scottish Law Commission. It was a long time in gestation of these proposals, but now that we have concluded consideration of them, I am sure that in Scotland it will be considered that its deliberations and our own have been worthwhile in bringing about a reform of this part of the private law of Scotland which has been long awaited. Much of the humiliation and embarrassment that has been at the centre of attention in recent years as a result of warrant sales will be part of our history and not part of our present practice.
      6.19 pm
      Mr. MacKenzie: It would be churlish and ungracious of me not to acknowledge that the Bill is a substantial improvement on the present system. Although I have a number of serious reservations about it, I welcome the Bill and I hope that it will become an Act in the fulness of time. As the Solicitor-General for Scotland, my right hon. Friend the Member for Glasgow, Govan (Mr. Millan) and my hon. Friend the Member for Glasgow, Provan (Mr. Brown) know, we have been opposed to the present system for many years. It is humiliating to ordinary people and is fair neither to debtor nor creditor. We still have some substantial reservations about it and about debt arrangements. We hope that the Solicitor-General will keep an open mind on that.
      We have serious reservations on the whole question of whether warrant sales should still continue. Over the past few weeks the Solicitor-General has tweaked our tails by asking what we have in mind to put in its place. If he pressed me too hard I would have to say that I would go and ask my noble and learned Friend the Lord Morton of Shuna. That is the best answer I can think of at the moment.
      The only other reservation I have is a purely personal one. The only private Member's Bill that I have got through the House in the past 23 years is now being repealed by this Bill, which I welcome. I will not have my name on the statute book ever again but, that apart, I give a general welcome to the Bill.
      6.21 pm
      Mr. Tom Clarke: I thank my right hon. Friend the Member for Glagow, Rutherglen (Mr. MacKenzie) who was extremely helpful throughout our proceedings on the Bill, as was my right hon. Friend the Member for Glasgow. Govan (Mr. Millan). I would also like to thank my other hon. Friends for the contribution they have made to our constructive response to the Government's Bill.
      We said on Second Reading that we welcome the Bill, and we do. In Committee we attempted to offer some constructive suggestions and we regret that the Solicitor-General for Scotland did not find it possible to accept all our proposals. Nevertheless, it would be churlish not to acknowledge that the Bill is a progressive measure. We would, as the hon. and learned Gentleman knows, have acted differently on matters such as medical aid. I will not go any further on that because I am worried about his blood pressure. We might even have gone further on the arrangements which the Law Commission suggested about multiple debt. We would have gone much further on many other aspects of the recommendations of the Law Commission. We still feel a repugnance about having any sales at all in a household.
      However, that said, there is no doubt that, given some of the scars of the past and some of the social stigmas which were inflicted upon families and upon communities, the Bill as it now stands does represent progress. For our part we shall represent our views as the Bill is enacted and we shall monitor the legislation. We regard it as an extremely helpful Bill and we have said so at each stage of its consideration. We also feel — this should be put on record — that it represents a framework for future legislation. I look forward to the Labour Government that we can expect in the not too distant future, as readers of The Guardian will have noted this morning. When that day

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      comes we shall be well on our way towards the abolition of warrant sales, which Opposition Members see as the ultimate and urgent objective.
      Question put and agreed to.
      Bill accordingly read the Third time, and passed, with amendments.

      Pilotage Bill [Lords]
      Considered in Committee.
      [MR. HAROLD WALKER in the Chair]

    Clause 1

      MEANING OF "COMPETENT HARBOUR AUTHORITY" AND "HARBOUR"
      6.23 pm
      Sir Julian Ridsdale: I beg to move amendment No. 1, in page 1, line 15, after 'and', insert `subject to subsection (1A) below,'.
      The Chairman of Ways and Means (Mr. Harold Walker): With this it will be convenient to consider the following amendments: No. 2, in page 1, line 19, at end insert—
      '(1A) Where any part of a harbour authority's harbour is contiguous to an area which (apart from this subsection) is not within its harbour or the harbour of any other competent harbour authority but which is within an active former pilotage district, any reference in this Act to the authority's harbour or its approaches shall, subject to any order made under subsection (3) below, include a reference to that area; and where by virtue of this subsection an area is included in the harbour of more than one harbour authority, those authorities shall exercise their pilotage functions in relation to that area jointly.'.
      No. 4, in page 2, line 11, leave out subsection (3) and
      insert—
      '(3) If the Secretary of State considers that it is not necessary in the interests of efficiency and safety of navigation:

      (a) that a competent harbour authority should exercise pilotage functions as respects any area or part of any area which is included in its harbour by virtue of subsection (1A) above, he may by order exclude that area or part from the area of its harbour; or

      (b) for a competent harbour authority to exercise pilotage functions as respects its harbour, he may by order provide that that authority shall cease to be a competent harbour authority for the purposes of this Act;

      and the Secretary of State may in any case where he considers that it is necessary in the interests of efficiency and safety of navigation that a competent harbour authority should exercise pilotage functions as respects any harbour authority's harbour he may by order provide that this Act shall apply to that competent harbour authority as if its harbour included that other harbour.'.
      No. 45, in clause 12, page 11, line 5, after '(a)' insert
      'apart from section 1(1 A) above,'.
      Sir Julian Ridsdale: Clause 1 ensures that responsibility for considering pilotage requirements is placed on the appropriate harbour authorities. The clause empowers the Secretary of State, where there are likely to be overlapping or conflicting jurisdictions between different harbour authorities, to provide by order that designated harbour authorities should exercise functions that would otherwise be enjoyed by another harbour authority.
      As the Bill stands, the present pilotage limits will be drawn solely by reference to the relevant harbour limits. That will mean a fragmented pilotage service in the Thames estuary. This is especially relevant to the maintenance of maritime safety as it will leave areas of hazardous waters outside the proposed limits for compulsory pilotage.
      As we all know, the Thames estuary is an area of comparatively shallow water, heavily used by all sorts of

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      traffic such as chemical carriers, container ships, supertankers and passenger ferries at the mouth of the Thames just 10 miles off shore. That ought not to be left to commercial considerations alone. In order to reach the oil wharves on the tide, deep-draughted tankers drawing up to 45 ft and carrying 100,000 tonnes of oil must negotiate the area south of the Trinity buoy at low water with only 4 ft under-keel clearance. The bottom there is notoriously unstable and subject to sand waves. The navigable channel is only about half a mile wide at best and requires a constant update of knowledge. There is no discernible radar picture and it is just 12 miles off the Essex coast, being some 15 miles seaward of the Port of London authority limit.
      Do the Government really consider that the pilotage can be safely withdrawn from that area, which is very busy and close to the population centres around Margate and the north Kent coast as well as Essex? It is also a well-used fishing ground.
      Immediately north of the Sunk and 10 miles beyond the Harwich harbour board limit is the approach channel to the Haven ports of Ipswich, Harwich and Felixstowe. Ships of up to 13 m draught have to navigate there, dependent on the rise of the tide, with just 1 m under-keel clearance in a channel half a mile wide in a cross tide to the busiest port in the United Kingdom. All in all, that, arguably the busiest stretch of water off our shores, is a somewhat hazardous area in which to navigate. Yet, in the proposed legislation, it falls into no man's land.
      The sea is an unforgiving element, as we have learned just recently to our cost in the tragic ferry disaster. We must not take unnecessary risks. That is why the amendments to clause 1 will maintain the present pilotage limits allowing competent harbour authorities to reduce pilotage limit only upon application to the Secretary of State. That will give effect to the Select Committee's recommendation that initially harbour authorities should take over responsibility for pilotage districts as they presently exist, and harbour authorities which consider that the pilotage districts may he safely reduced should have to seek parliamentary approval.
      Clause 12 deals with joint arrangements. The amendment to the clause is consequential to the new inserted subsection of clause 1(1A). It ensures that any provision for joint arrangements made under clause 12 does not affect the mandatory requirement for joint arrangements under clause 1.
      I hope, in the interests of safety alone, that the Minister will pay attention to the amendments I have moved, and that he will accept them.
      Mr. James Hill: I want to intervene on a point of legality to find out whether the competent harbour authorities are to include the Queen's harbourmasters. It seems that there may be a difference of opinion here because in my part of southern England there are four competent harbour authorities but there is also a Queen's harbourmaster.
      Dr. Norman A. Godman: I wish to ask the Minister a question about the clause, with which I have a great deal of sympathy. My question concerns the Minches. If the clause were agreed to, would the Stornoway authority be the competent harbour authority? What kind of authority would it exercise over the passage of what I believe are called the ULCCs, which
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      go down through those waters from Sullom Voe in Shetland? I accept what the pilots have told me— that it is a safe area through which to navigate huge ships.
      6.30 pm
      However, I am not sure whether ships with draughts of up to 80 ft can safely navigate the passage. Speaking as a layman with no navigational expertise, I recall a large stern trawler from Hull — a ship that is very much smaller than a tanker — going aground in the Minches when fishing for mackerel some years ago. Despite the reassurances that have been offered by the pilots. those tankers should be directed to the west of Lewis and the Western Isles when they are proceeding to and from Sullom Voe. If the clause were accepted, would the Stornoway harbour authority become the competent harbour authority for the Minches?
      Sir Anthony Kershaw: I wish to join my hon. Friend the Member for Harwich (Sir J. Ridsdale) in expressing some doubt about the clause. I support his amendments. The question of harbour limits is a crucial one in my part of the world. The Gloucester port is slightly outside my constituency, but Sharpness is in it. The pilots go aboard to bring vessels to those two ports way down the Welsh coast at Barry, which is many miles away.
      As everyone knows, the Severn is a notoriously difficult river. It frequently shifts its channel, has the highest tides in the United Kingdom—almost in the world—and is a tricky business. It is not clear from the arrangements that are outlined in the Bill which harbour authority will be responsible for it. There are three candidates: the Gloucester harbour trustees, the Sharpness board or the British Waterways board. I understand from a letter that I have received from my noble Friend Lord Brabazon of Tara, who introduced the Bill in the other place, that those authorities will have to sort that matter out among themselves.
      There is an element of vagueness about the arrangements which is undesirable in so difficult and dangerous a channel, and I hope that my hon. Friend the Minister can tell us which authority will be responsible and what its duties will be. I hope that he will be able to set at rest our anxieties about pilotage in the area.
      Mr. Tim Brinton: I wish to support the amendments of my hon. Friend the Member for Harwich (Sir J. Ridsdale), which have a vital part to play in pilotage in the outer reaches of the Thames. My hon. Friend has explained the technicalities, so I shall not dwell on them. The Minister well knows my reservations about the Bill, which seems to represent a piecemeal approach to the problem. As I understand it, responsibility will ultimately be given to the Port of London Authority, a body in which I do not have complete faith. In a letter to me, the Minister mentioned that it had undergone a sea change. That was a somewhat Freudian remark. Will the Minister accept the amendment so that that sea change can also be a safe change?
      Mr. Roger Moate: I have great sympathy with the amendment moved by my hon. Friend the Member for Harwich (Sir J. Ridsdale), and I await the Minister's answers with great interest. Many of us will attach great significance to those answers. I hope that the Minister will understand that it is not enough to give us a generalised answer; we need a specific assurance that he

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      and his colleagues have grasped the safety aspect of what we are saying. We are entitled to a clear assurance about some of the hazardous areas from which compulsory pilotage has been withdrawn, and we need to know that the Minister is satisfied that the safety of those at sea is not being endangered. That is the point that has been put to us by pilots. I suspect that my hon. Friends, too, have been approached by pilots and persuaded of the importance of the case.
      The Bill proposes that certain areas shall have compulsory pilotage withdrawn from them, and that the limits will be reduced back to the areas of the harbour authorities. Thereafter, the harbour authorities may apply for the limits to be extended, but an appeal can be made against such an application. The Goodwin sands, the north foreland of Kent, the Trinity buoy area and the Thames estuarial area are self-evidently hazardous places, and that is why they were included in the pilotage districts before. The Minister says that it is unnecessary to have compulsory pilotage in those areas, and that the matter should be left to the judgment of the new competent harbour authorities.
      I am certainly one of those hon. Members who needs persuading that it is right, in the interests of safety, to make this withdrawal of compulsory pilotage. I hope that my hon. Friend the Minister has some convincing explanations if he intends to oppose the amendment. I hope that he will give us some assurance, perhaps even in the form of accepting the proposals.
      Mr. Eric S. Heffer: Anyone who knows the Mersey knows that, in the past, we have had a number of harbour authorities. We had the Mersey docks and harbours board in my day. Then there were the Manchester ship canal, the Manchester docks and so on. The harbour authorities of Liverpool, Manchester and Garston have made an effort to provide the means whereby the Mersey Docks and Harbour Company could, if required, exercise pilotage functions on their behalf.
      As no commitment has been given, I want to know whether the Government's view is that that can be agreed. At the moment the matter is up in the air, and I do not know what is happening. If the changes are to come about, we should know precisely what is happening, what harbour authorities are likely to take over and what the special problems in certain areas will be. I am not an expert on pilotage, unlike the hon. Member for Crosby (Mr. Thompson), who is a much greater expert than I, because he was a Mersey pilot and understands the business thoroughly. He worked on the river for years; I worked only on the boats that were tied up. We need an answer to this question about what is happening, and whether the best arrangements are being made.
      Mr. Barry Porter: I wish to add my voice to that of the hon. Member for Liverpool, Walton (Mr. Heffer) who, I am delighted to hear, did some work in Liverpool at some stage of his career. What concerns me is that the Minister will tell us whether commercial or safety interests are to be paramount. That is what the amendment is about. The pilots on the River Mersey have said, both to my right hon. Friend and others, that they fear that the competent harbour authority might pay more attention to commercial interests than safety interests.
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      I trust that the Minister will reassure us that safety will be the paramount consideration and that commercial interests will take second place.
      Mr. Roger Stott: The hon. Members for Wirral, South (Mr. Porter) and for Faversham (Mr. Moate) spoke about safety, and I suspect that "safety" will be the key word throughout our debates. It is important that we have safety in the forefront of our minds when we talk about pilotage, and it must not be overridden by commercial considerations.
      The hon. Member for Harwich (Sir J. Ridsdale) has introduced an interesting amendment which highlights the problem of overlapping competent harbour authorities in areas that are dangerous for shipping. I listened to the hon. Gentleman with care when he spoke about the Trinity buoy. At low water there is only 4 ft of under-keel clearance. The sea bottom is notoriously unstable and subject to sand waves, the channel is not easily navigable by radar and it is only 10 miles away from the Essex coast. The Thames estuary and the east coast ports of Felixtowe and Harwich are areas of great activity. There is a great deal of continental traffic and there are many ferries and ro-ro vessels. It is a hive of activity. We must know who is to be responsible for the safe navigation of these waters and which harbour authority will have that responsibility. Emphasis must be placed upon the safe navigation of our waters around the United Kingdom and where pilotage is necessary, pilotage must be provided.
      The Parliamentary Under-Secretary of State for Transport (Mr. Michael Spicer): There is no dispute about safety being paramount, and the Bill places an absolute obligation on ensuring safety. Competent harbour authorities will be subject to the responsibilities and duties that are set out in clause 2. The only matter for debate is where responsibility lies for safety — in other words, where does the buck stop? It has been difficult in the past to determine where the buck stops, and this has had a bearing on the number of pilots that have been required. It has been a matter of great debate within the industry over many years, and it has addressed itself constantly to the sort of pilotage that is required and the number of pilots that are needed.
      My hon. Friend the Member for Southampton, Test (Mr. Hill) spoke about the Queen's harbourmasters. They will not be competent harbour authorities. There are provisions in clauses 12 and 13 for determining the relationships between them and the competent authorities. The hon. Member for Liverpool, Walton (Mr. Heffer) asked about the problems that might be associated with the Manchester and Mersey docks. We hope that agreement will be reached on sensible proposals for the estuary. If that is not possible, clause 12 allows the Secretary of State to call for information that will enable him to make satisfactory arrangements. We hope that there can be voluntary agreement.
      Mr. Porter: We are dealing with a complex Bill that contains many clauses, and one gathers that we shall be doing so for two or three hours. My hon. Friends the Members for Harwich and for Crosby (Mr. Thornton) and I are being told that it is hoped that satisfactory arrangements will be made, but the hon. Member for Liverpool, Walton (Mr. Heffer) has asked for specific

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      assurances. We want to know what is to happen, and so do pilots. The response of my hon. Friend the Minister is hardly satisfactory.
      Mr. Spicer: Where there are overlapping responsibilities between competent harbour authorities as defined in the Bill, the authorities will get together and make arrangements for pilotage. If it is found that it is not possible voluntarily to make such arrangements, there are powers in the Bill for the Secretary of State to intervene. I have to tell my hon. Friend the Member for Stroud (Sir A. Kershaw) that there is a problem about Gloucester and Sharpness. I shall be introducing an amendment to enable the Secretary of State to deal with problems of passage.
      Mr. Heffer: I think that there is an agreement already between the harbour authorities in the area which I represent in part that will result in a Mersey docks company. In the past there was a tremendous number of ships on the Mersey and a considerable number of pilots were required. The comparison between Merseyside then and now is a tragic one. Those of us who come from Merseyside feel ill every time we look at the river. There is nothing much moving on it but there is still some activity. Some pilots will be needed but there will be others who will not be required. Who will be responsible for paying off the pilots who are not needed? From where will the money come? I want a firm assurance from the Minister. Will the new authorities have to find the money, or will they be given special assistance by the Government to help them overcome the problem?
      6.45 pm
      Mr. Spicer: It seems that we are embarking on a Second Reading debate. We shall be dealing with the details of compensation arrangements and who will pay. The short answer is that the ports will pay. We shall deal with the details of the compensation arrangements as we proceed with our consideration of the Bill.
      Mr. Heffer: There are areas that have special problems because of their history and it is not good enough to say "the ports". There are real problems and the Government should have a responsibility to help the ports to deal with them. If there is a good answer set out in the Bill, I shall be prepared to accept it, hut I am not satisfied with the Minister's response so far.
      Mr. Spicer: The hon. Gentleman is entitled to ask questions and as we continue to discuss the Bill he will receive detailed answers. If I may say so, he is asking questions which are related more directly to other amendments.
      The present system of compulsory pilotage is limited. In the London district, for example, compulsory pilotage applies only to ships going to and from ports in London districts. Vessels going through the district are not required to take pilots. I discovered this when I visited the constituency of my hon. Friend the Member for Harwich (Sir J. Ridsdale). It is possible for vessels making their way to Ipswich not to take on a pilot as they pass Harwich. We must not run away with the idea that the present system is all-embracing, and that we are ruining it through the Bill.
      The amendments assume that the justifications of the boundaries of the pilotage districts remain valid, although they were drawn up at the turn of the century or, in some cases, earlier. But it must be recognised that conditions
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      have changed dramatically since then. Patterns of trade, shipping movements and the available navigational equipment, for instance, have altered beyond recognition.
      I have two further objections to the amendments. First, they would give the Secretary of State responsibility for setting the limits of pilotage, whereas one of the prime purposes of the Bill — I appreciate that this is a controversial matter — is that they should be locally determined. Secondly, they would require the competent harbour authorities to operate jointly in the outer pilotage areas. In some areas, that would be an unecessary administrative complication. Surely it would be better to leave the local competent harbour authorities to decide the best arrangements in their local circumstances.
      We believe that the sensible way forward is to allow the competent harbour authorities to consider the pilotage needs of their ports afresh in the light of modern conditions, without being constrained by a structure that grew up in wholly different circumstances.
      Mr. Brinton: My hon. Friend has made much of the Government's desire to pass on the final and ultimate decision to the local authorities concerned. How does he square that with the Secretary of State's remarks in the House on 9 March? My right hon. Friend said:
      "Safety cannot be inhibited by any pressures. It is the first prerequisite, and all hon Members would expect it to be the prerequisite of any Government, to establish regulations on safety at sea."—[Official Report, 9 March 1987; Vol. 112, c. 23.]
      My right hon. Friend was saying that safety was the Government's responsibility. Should not the Government therefore take responsibility for it in the Bill?
      Mr. Spicer: The Government are taking the responsibility of hoping to obtain the agreement of Parliament to the Bill. We believe that the people who know the local conditions in the approaches to the quayside are the right people to determine the number of pilots that will allow for the safest possible conduct of shipping within their authorities. I know that that is a matter for debate, but it is precisely because the Government believe that the local competent harbour authorities are best able to determine the safe number of pilots that we are trying to persuade the House to accept the Bill.
      The hon. Member for Greenock and Port Glasgow (Dr. Godman) talked about Stornoway. Stornoway is not a competent harbour authority, because it is not at present an active pilotage district. However, if it wishes to become so, under the terms of the Bill, it can apply for an order.
      Mr. Moate: I should be grateful if my hon. Friend would answer a specific question. He tells us that conditions have changed since the pilotage districts were first established. Does that mean that some body or authority has made a scientific reassessment of pilotage needs? In the case of the Thames estuary, for example, has some body decided that there is no longer a prima facie need for compulsory pilotage from the Goodwin sands? Or does my hon. Friend mean that an arbitrary decision has been made, and that hopefully we shall eventually claw our way back to common sense when the needs of the area have been established? If there has been a reassessment, is not my hon. Friend obliged to place the evidence on safety before the House before asking us to reduce the pilotage areas'?
      Mr. Spicer: I am informed that the London pilots accept that there is no need for the Goodwin sands to be covered by compulsory pilotage.
      Dr. Godman: The Minister answered my question about Stornoway. If the authorities in Stornoway were to apply successfully for CHA status, would they then have control over navigation through the Minches?
      Mr. Spicer: The competent harbour authority would not necessarily have navigation control, unless it asked for the appropriate orders. If it did so, it could then take control if it felt that that was part of the CHA's responsibility under the Act, which is to ensure safe passage not only within their areas, but in the approaches to their harbours.
      That partly answers my hon. Friend the Member for Faversham (Mr. Moate); however, let me reply to his question about how the competent harbour authorities were originally designated. The definition of such authorities arose out of a number of byelaws and historical precedents. There is discretion for those who know what part of the competent harbour area they can designate for compulsory pilotage. If, knowing the local conditions, they are not satisfied about the harbour limits, it is open to them to extend those limits.
      I hope that, even if I have not answered all the questions to everyone's satisfaction, I have at least addressed the points that have been made. I ask the Committee not to accept the amendments.
      Sir Julian Ridsdale: I have had to weigh carefully in my mind the paramount importance of safety. When such a change is made, I feel that safety must overrule what my hon. Friend the Minister has been saying. He has not convinced me, and I have a feeling that he has not convinced many of my hon. Friends. I only wish that he had been able to do so.
      I would emphasise that the matter was considered by the Select Committee on Transport, which recommended that initially harbour authorities should take over responsibility for pilotage districts as they now exist. My view, therefore, is backed up by the Select Committee. Bearing in mind the dangers of the approaches to the Thames estuary——
      Mr. Malcolm Thornton: My hon. Friend the Member for Harwich (Sir J. Ridsdale) and others have underlined the fundamental flaw in the Bill. The Secretary of State, on behalf of the Government, is handing over totally, the responsibility for compulsory pilotage in the waters around this country. As my hon. Friend the Member for Faversham (Mr. Moate) pointed out, that is to be done without any assessment of whether safety measures have been examined or brought up to date. The point does not concern the number of pilots; it goes to the core of the safety argument. We have heard nothing this evening that convinces us—convinces me, at any rate— that anything has been done that should relieve the Government of the ultimate responsibility for ensuring safety. It is not sufficient to hand over that responsibility to CHAs. I should like my hon. Friend the Minister to address his closing remarks to the question of who polices the policemen. We are giving the responsibility to the CHAs, and the Government will have no responsibility for seeing what they do thereafter.
      7 pm
      Sir Julian Ridsdale: I am grateful to my hon. Friend the Member for Crosby (Mr. Thornton). I agree with him. In view of his experience as a pilot and because I have talked to pilots who know what the waters are like in the Thames estuary, I cannot withdraw the amendment. I must push it to a Division.
      Question put, That the amendment be made:
      The Committee divided: Ayes 32, Noes 76.

      Division No. 143]

      [7.00 pm

      AYES

      Anderson, Donald

      Madden, Max

      Banks, Tony (Newham NW)

      Meadowcroft, Michael

      Beith, A. J.

      Moate, Roger

      Bermingham, Gerald

      Pike, Peter

      Brinton, Tim

      Porter, Barry

      Campbell-Savours, Dale

      Powell, Raymond (Ogmore)

      Carlile, Alexander (Montg'y)

      Ross, Ernest (Dundee W)

      Godman, Dr Norman

      Skinner, Dennis

      Golding, Mrs Llin

      Spearing, Nigel

      Gould, Bryan

      Steel, Rt Hon David

      Hamilton, W. W. (Fife Central)

      Stott, Roger

      Haynes, Frank

      Taylor, Matthew

      Heffer, Eric S.

      Trotter, Neville

      Howells, Geraint

      Wallace, James

      Hughes, Robert (Aberdeen N)

      Kennedy, Charles

      Tellers for the Ayes:

      Kirkwood, Archy

      Sir Julian Ridsdale and Mr. Malcolm Thornton.

      McKay, Allen (Penistone)

      NOES

      Ancram, Michael

      Jones, Robert (Herts W)

      Baker, Nicholas (Dorset N)

      Kershaw, Sir Anthony

      Bellingham, Henry

      Knowles, Michael

      Biggs-Davison, Sir John

      Lawrence, Ivan

      Boscawen, Hon Robert

      Leigh, Edward (Gainsbor'gh)

      Bottomley, Peter

      Lennox-Boyd, Hon Mark

      Bowden, Gerald (Dulwich)

      Lloyd, Peter (Fareham)

      Bright, Graham

      McCrindle, Robert

      Browne, John

      Malone, Gerald

      Bruinvels, Peter

      Marlow, Antony

      Bryan, Sir Paul

      Morris, M. (N'hampton S)

      Burt, Alistair

      Moynihan, Hon C.

      Butterfill, John

      Neubert, Michael

      Carlisle, Rt Hon M. (W'ton S)

      Norris, Steven

      Colvin, Michael

      Onslow, Cranley

      Cope, John

      Pattie, Rt Hon Geoffrey

      Couchman, James

      Portillo, Michael

      Dickens, Geoffrey

      Powley, John

      Eyre, Sir Reginald

      Rathbone, Tim

      Fallon, Michael

      Rossi, Sir Hugh

      Favell, Anthony

      Sackville, Hon Thomas

      Finsberg, Sir Geoffrey

      Sainsbury, Hon Timothy

      Forth, Eric

      Spencer, Derek

      Fox, Sir Marcus

      Spicer, Michael (S Worcs)

      Galley, Roy

      Stanbrook, Ivor

      Greenway, Harry

      Stern, Michael

      Gregory, Conal

      Taylor, Teddy (S'end E)

      Griffiths, Peter (Portsm'th N)

      Thompson, Patrick (N'ich N)

      Hampson, Dr Keith

      Twinn, Dr Ian

      Hargreaves, Kenneth

      Waddington, Rt Hon David

      Harris, David

      Waller, Gary

      Hawkins, Sir Paul (N'folk SW)

      Wardle, C. (Bexhill)

      Heddle, John

      Wells, Bowen (Hertford)

      Hind, Kenneth

      Wheeler, John

      Hordern, Sir Peter

      Wiggin, Jerry

      Howarth, Alan (Stratf'd-on-A)

      Wilkinson, John

      Howarth, Gerald (Cannock)

      Hunt, John (Ravensbourne)

      Tellers for the Noes:

      Jackson, Robert

      Mr. David Lightbown and Mr. Richard Ryder.

      Jessel, Toby

      Question accordingly negatived.
      Mr. James Wallace: I beg to move amendment No. 3, in page 2, line 3, leave out 'or 1986' and insert '1986 or 1987'.
      This is a constituency-based amendment. At the present time, Scalloway, in the Shetland Isles, is not within a pilotage area although pilotage operations take place. It is the will of the harbour authority — the Shetland Islands council — that Scalloway be formally made a pilotage area. If it had to wait until after the Bill becomes law, it would be unable to license those persons who presently carry out the pilot duties— albeit on a part-time basis—but would be bound by the four-year period from the appointed day.
      It has been suggested that a pilotage order could he promoted prior to the appointed day and that has much to commend it. It was originally suggested by the noble Lord Brabazon that Scalloway should be included as part of the Sullom Voe district. With respect to the noble Lord, I must point out that Scalloway is on the west coast and Sullom Voe is on the east coast, so perhaps, geographically, that is not the most sensible solution.
      If a pilotage order was promoted, there is a possible difficulty — that the Bill as it stands does not make provision for an act of pilotage in the present calendar year, 1987. Obviously, if a pilotage order was to be promoted and passed and if the district was to be an active district as defined in the Bill, the only time that would be available for an act of pilotage to be made and in respect of which a return could be made, would be in the year 1987.
      It is for that reason that this simple amendment is made to extend, by one further calendar year, the years in which returns can be made in respect of acts of pilotage.
      Mr. Michael Spicer: I am advised that our lawyers do not think that this amendment is strictly necessary to achieve what is desired by the hon. Member for Orkney and Shetland (Mr. Wallace)—to have Scalloway made an active pilotage district. However, we accept his point, and to make things clear we are prepared to accept the amendment.
      Mr. Wallace: I am grateful to the Minister. May I take this opportunity to say how grateful the officials of the Orkney Islands council and the Shetland Islands council, and myself, have been for the co-operation they have received from the officials at the Department of Transport.
      Amendment agreed to.
      Clause 1, as amended ordered to stand part of the Bill.
      Clause 2 ordered to stand part of the Bill.

    Clause 3

      AUTHORISATION AND EMPLOYMENT OF PILOTS
      Mr. Michael Spicer: I beg to move amendment No. 5, in page 4, line 15, after 'period', insert 'which are not renewable'
      Liverpool pilots have been concerned that their licences, which are renewed annually, may be taken to be licences for a limited period. If that was so, they would lose the priority that former licensed pilots are given by the Bill in relation to authorisations during the first four years after its implementation. This amendment makes it clear that it is only provisional pilots, whose licences are issued
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      for a limited period and are not renewable, as are Liverpool pilots' licences, who will be excluded from the priority provisions.
      Amendment agreed to.
      7.15 pm
      Mr. Thornton: I beg to move amendment No. 7, in page 4, line 33, leave out paragraphs (c) and (d).
      The Chairman: With this it will be convenient to take the following: Government amendments Nos. 8 and 9.
      Amendment No. 20, in page 4, line 40, leave out '(a)'.
      Government amendment No. 11.
      Amendment No. 12, in page 4, line 43, at end insert —
      '( ) An authorised person who has made representations under subsection (6) above and who remains aggrieved by a decision of a competent harbour authority to suspend or revoke an authorisation under subsection (5) above may appeal to the Secretary of State who may, if he sees fit, direct the competent harbour authority to withdraw the suspension or revocation and the competent harbour authority shall comply with any such direction.'.
      Government amendment No. 13.
      Mr. Thornton: The introduction to the White Paper tells us, amongst other things:
      "The Green Paper proposed that under the new regime the administration of pilotage should be greatly simplified."
      It also states:
      "In recent years there has been growing concern about the cost of using British ports, in particular compared with those on the continent, and the Government is anxious to seek ways of helping to reduce the costs. One element in a port's costs is the cost of the pilotage service. This has meant that the cost of pilotage is often greater than it need be."
      The Bill does a great deal to achieve those objectives, but it still contains much that is not needed to achieve those objectives, including the two paragraphs I have quoted. In an age when we are trying to reduce bureaucracy — its existence is dependent upon regulations and laws—we can only be successful if legislation is kept to a minimum. With regard to the two paragraphs, the test to determine whether they are necessary is not so simple.
      First, is the intention of the paragraphs met by other legislation or by other self-regulating means? Secondly, are they necessary to reduce costs? I suggest that the answer to the first question is yes, but the answer to the second is no. Before I demonstrate that to be so, I should like to make a general point. Those two paragraphs will give competent harbour authorities unfettered power over pilots. They will be able to exercise that power at will without challenge as to whether, in the exercise of it, they have had due regard, among other things, to natural justice. They will be able to remove a man's livelihood — for whatever reason — without being accountable to anyone. They will be able to exercise the power in a discriminatory manner.
      Bearing in mind the wide terms in which subsection (5)(c) is drafted — that it is the competent harbour authority alone which will decide the number of persons required to be authorised the criteria for such a determination will be the authority's and the authority's alone. Therefore, that determination is capable of variation at will. An authority will be able to use such power in a discriminatory manner. It could, for example, revoke the authorisation of a pilot, who, in fulfilling his functions by virtue of section 742 of the Merchant Shipping Act 1894——

      513
      "'Pilot' means any person not belonging to a ship who has the conduct thereof"—
      has, in the commercial judgment of the competent harbour authority, acted in too prudent a manner. However, according to Captain Lecky—considered by professional seamen to be the unquestioned authority in such matters—prudence is the very essence and quality required of those making executive decisions in ship handling, namely, pilots.
      That is a general, but important point. The existence of those two paragraphs that I have quoted will undoubtedly inhibite a pilot from having proper regard to the noncommercial, wider responsibilities of his functions—the public officer element of his responsibilities. I referred to that on Second Reading and to the report produced by the Canadian commission that referred to pilots as "environmental protection officers".
      In the more specific tests to be applied, regard has to be had to the employed and self-employed options that the Bill provides for the continuing pilots. Taking the employed option first, clause 4(2) provides:
      "A competent harbour authority shall offer to employ under a contract of employment any person it authorises under section 3 above".
      Prima facie, it appears that provided a person is authorised as a pilot, the competent harbour authority has to offer that person a contract of employment, and, provided that he is authorised, his contract of employment stands. But is that really the case?
      Section 54 of the Employment Protection (Consolidation) Act 1978 says, among other things:
      "(1) In every employment to which this section applies every employee shall have the right not to be unfairly dismissed by his employer."
      Of course, the corollary to that is that every employer has the right to dismiss any employee fairly. That is spelt out in section 57 of the 1978 Act. Surely the fact that the employer has no work and that therefore the employee is redundant falls under that head. That is what the paragraph is all about.
      As the legislation places no requirement on the length of time for which an authorisation has to remain in force, clearly such authorisation can be revoked at the same time as the contract of employment is terminated. In the case of employed pilots, these two subsections are unnecessary, unless it is the aim of Government, with respect to employed pilots, to circumvent the provisions of the 1978 Act.
      Despite the noble Lord Brabazon's protestations to the contrary, pilots believe this to be a strong possibility. That is because these two paragraphs appear to conflict with sections 49 and 50 of the 1978 Act. They give the rights to provide an employee with a minimum period of notice before a contract of employment is terminated and, when taken in conjunction with subsection (6) of this clause, the right to circumvent section 53 of that Act, which requires written notice to be provided. If that is the case, it gives the lie to the repeated statements by individual Ministers and by the Government that continuing pilots will be fairly and equitably treated. That is a source of considerable anxiety to pilots throughout Britain.
      In Committee in the other place the Minister, Lord Brabazon said:
      "nothing in the clause affects the operation of employment protection legislation and a pilot who is employed whether by a CHA or anyone else, and whose authorisation i s revoked
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      will remain eligible for the same rights and protection from that legislation as any other employed person."—[Official Report, House of Lords, Public Bill Committee, 9 December 1986; c. 38.]
      On Report in the other place that positive statement was somewhat diluted. At that time Lord Brabazon said:
      "and I made it clear that in our view a pilot's rights in such matters as employment protection should be attached to his contract of employment or other agreement under which he carries out pilotage for the CHA."—[Official Report, House of Lords, 12 February 1987; Vol. 484, c. 774.]
      Frankly, the Government statement, "in our view", is just not good enough. I should like to know from the Minister whether these paragraphs are subordinate to the Employment Protection (Consolidation) Act 1978. If they are, they are unnecessary. If not, then the pilots have been misled. A definitive answer is required. What happens if a competent harbour authority refuses to attach such rights, whatever they may be, to the contract of employment?
      I shall now deal with the matter of pilots who decide not to accept a contract of employment with a competent harbour authority and who, in all likelihood, will be self-employed. In this case I submit that these two paragraphs are equally unnecessary. It is acknowledged that employment protection legislation is irrelevant to the self-employed and probably also to the agency scenario. Therefore, the justification for the inclusion of these two paragraphs must rest on costs, but the implementation of their intent will not reduce costs.
      Mr. Porter: I am following my hon. Friend's complicated argument. Is he saying that there is some doubt whether employed pilots have the protection of normal employment and redundancy legislation? Surely that cannot be right. Of course they have, and is that not indicated in the Bill?
      Mr. Thornton: That is the point that I am asking the Minister to clarify. Certainly, on a reading of Hansard from the other place, and especially on Report, the words "in our view" seem to dilute the absolute statement that was made earlier. I seek an assurance from the Minister that that is not so.
      All pilotage revenue will be controlled by a competent harbour authority. In the case of an agency arrangement, the competent harbour authority will presumably negotiate the provision of pilotage services on a fixed-price annual lump sum arrangement and, in the case of the self-employed, on a per ship basis. In effect, always provided that the number of persons authorised is sufficient to do the work, in terms of costs it is immaterial whether there are more persons than are strictly necessary because the costs will remain the same. Indeed, it could be argued that it would be in a competent harbour authority's interests for more persons to be authorised than are strictly necessary, as the service would then be able more readily to cope with unexpected peak demands. Anyone who knows anything about shipping knows that such demands are by no means unusual.
      For the reasons stated, it is clear that neither of these two paragraphs is necessary for either the employed or the self-employed agency regimes. They are unnecessary regulations and should be removed.
      I shall now turn to amendment No. 20. The Bill as drafted requires a competent harbour authority to give written notice of its intention to suspend or revoke authorisation only

      515
      "if it appears to it that the authorised person has been guilty of any incompetence or misconduct affecting his capability as a pilot".
      In speaking to the first amendment, I explained how subsections (5)(c) and (d) give unfettered power to competent harbour authorities, which could, if they wished, use it in a capricious and discriminatory manner. Those paragraphs arc written in terms that are wide enough to steer a large carrier through — wider than some of the channels in many of our ports. The same applies to subsection (5)(b) which says that an authorisation may be suspended or revoked when a person ceases or fails
      "to provide evidence that he continues to have"
      the qualifications required.
      what are those qualifications? Clause 3(2) tells us:
      "The authority may determine the qualifications in respect of age, physical fitness, time of service, local knowledge, skill, character and otherwise to be required".
      It does not say what those qualifications have to be or whether they will be fixed. For that reason, they can be varied from time to time by the competent harbour authority. What is the determinant of the qualifications in respect of character? What does "otherwise" mean? What criteria will be used to determine the degree of physical fitness that is required? Will it be the length of time taken to climb a 30-ft pilot ladder when the ship is rolling in heavy seas? All these maters are capable of wide interpretation and, therefore, capable of discrimination. There could be no objection to the Government amendment if all competent harbour authorities were to exercise their powers in such matters in a responsible, fair and just manner. This amendment would only give those pilots who elect for the self-employed option the same rights as those who accept a contract of employment.
      7.30 pm
      This statement is made against the background of the fact that in Committee in the House of Lords the Minister stated quite categorically that pilots accepting contracts of employment would enjoy all the rights and benefits afforded by the employment protection legislation, just like any other employee. That being so, all employed pilots will, by virtue of section 53 of the Employment Protection (Consolidation) Act 1978, be entitled to reasons, in writing, why their contract of employment is to be terminated. That must follow revocation of an authorisation as surely as Might follows day.
      Therefore, it can be argued that, as drafted, the subsection is in conflict with section 53 of the 1978 Act. This amendment seeks only to extend that provision to those who opt for self-employment. However, it will not be sufficient for the written notice to say that the contract of employment is being terminated as a consequence of the revocation of the authorisation. I hope that the Minister will assure us on that point today. If he cannot, it will be clear that this subsection has been drafted to enable CHAs to circumvent section 53 of the Employment Protection (Consolidation) Act to the detriment of their prospective employees.
      Finally, I turn to amendment No. 12. On the clear understanding that the provisions of the 1978 Act apply in full to pilots accepting contracts of employment from competent harbour authorities, especially that a written statement by an employer that an authorisation has been revoked will not be sufficient to satisfy the requirements of section 53 of that Act, and that the reasons for the
      516
      revocation of that authorisation must also be given—which, it can be argued, will in any case be necessary to satisfy section 57(3) of that Act — this amendment is necessary to ensure the equitable treatment of those pilots not accepting contracts of employment, vis-a-vis those who do, and also to ensure that a competent harbour authority cannot act in a capricious or discriminatory manner.
      If no guarantee can be given that the relevant subsections of clause 3 are subordinate to the Employment Protection (Consolidation) Act 1978, this amendment will be necessary to protect continuing pilots. The recent history of the actions of some port authorities has not inspired confidence in pilots as to their ability to act in a responsible manner, free from prejudice or discrimination. If the continuing pilots are to be treated fairly, as has been firmly promised by the Government, they must be protected against such attitudes.
      Sir Julian Ridsdale: I am glad to support my hon. Friend the Member for Crosby (Mr. Thornton), who, with his knowledge and personal experience of piloting, has moved the amendment so ably. He has quite rightly said that paragraphs (c) and (d) are unnecessary, as far as employment of pilots are concerned. I wished to move an amendment which has not been called, that lines 33 and 34 should be deleted. I did that because I want to make it easier for pilots to remain self-employed.
      On Second Reading we were delighted that the Government promised to bring forward an amendment to make the continuing provision of self-employed services by pilots a more viable proposition. With the support of my hon. and learned Friend the Under-Secretary of State for Trade and Industry, the Member for Folkestone and Hythe (Mr. Howard) who has great interest in such matters, I went to see the Minister to discuss sell-employment and how we could make that easier. On Second Reading the Minister said:
      "Harbour authorities will have several means of controlling pilotage costs through their control over charges and over the terms of contract for the provision of pilotage services where they are not employing pilots directly. We do not, therefore, consider that it will be necessary for the harbour authorities to have the power to withdraw pilot authorisation on the ground that the number of pilots is greater than is required where pilotage is being provided under a service contract and the pilots may he self-employed. I shall therefore be introducing an amendment in Committee that will limit the powers of harbour authorities in this respect."
      I have examined carefully the Minister's amendment but it goes only halfway to meeting what we tried to achieve when my hon. and learned Friend the Under-Secretary of State, myself and others went to see the Minister to discuss the ways in which we would be able to keep self-employment, as well as employed status, for the pilots. I am sorry that amendment No. 9 that he has tabled to clause 3, page 4, line 38, goes only part of the way to meeting the principle that he stated on Second Reading. Of course, we should have preferred leaving out lines 33 and 34 of clause 3, page 4, or to go along with my hon. Friend the Member for Crosby.
      As the Minister said on Second Reading:
      "Harbour authorities will have several means of controlling pilotage costs through their control over charges and over the terms of contract for the provision of pilotage services where they are not employing pilots directly."
      I should like to repeat once again what the Minister said on Second Reading. I apologise to my hon. Friends for

      517
      repeating it, but it is important for the self-employment of pilots. Running through this entire Bill is the desire to look after not only employed pilots, but also those in self-employment; that is a principle which is very close to our beliefs. The Minister said:
      "We do not, therefore, consider that it will be necessary for the harbour authorities to have the power to withdraw pilot authorisation on the ground that the number of pilots is greater than is required where pilotage is being provided under a service contract and the pilots may be self-employed." —[Official Report, 30 March 1987; Vol. 113, c. 834–5.]
      As I have said, I apologise for repeating that. I hope that the Minister will explain how his amendment meets his undertaking. Amendment No. 9 is only a shadow of what the Minister promised on Second Reading. I cannot advise my hon. Friends that it will make it easier to secure self-employment. Therefore, I hope that the Minister will agree that the aim of my hon. Friends and myself is to make the continuity of self-employment services a more viable proposition. We must pay a great deal of attention to that, because we are in danger of pushing all pilots into salaried employment rather than keeping them self-employed. I shall listen carefully to what the Minister says and I shall measure it against what he said on Second Reading, to see whether it is being fulfilled.
      Mr. Porter: I support both my hon. Friend the Member for Crosby (Mr. Thornton), who has a detailed knowledge of these matters, and my hon. Friend the Member for Harwich (Sir J. Ridsdale). I am satisfied that under the Bill employed pilots are protected, but I am not entirely satisfied that self-employed pilots are likely to be protected from capricious or unfair competent harbour authorities. Certainly the detailed amendments do not seem to cover them. When the Minister replies to this short debate I should like him to make it clear beyond peradventure that self-employed pilots will be treated fairly and that competent harbour authorities cannot treat them in the way that my hon. Friend the Member for Crosby suggested might be possible under the legislation.
      Sir Anthony Kershaw: I hope that my hon. Friend the Minister will be able to put at rest the anxieties expressed by my hon. Friends about redundancy and conditions for pilots.
      There are other difficulties for small authorities. I understand that under the Bill the responsibilities for pilots in the Gloucester-Sharpness area will be transferred to the Gloucester harbour trustees who must employ the pilots, if requested to do so. Gloucester harbour trustees do not want to employ pilots because the harbour has too many. It has 12 pilots and needs only eight. Even if it wished to employ them it does not have any money. Its only income comes from the payments of light dues by vessels coming into Sharpness which has diminished sharply in recent years and is less than the obligations which it would incur towards the pilots. Will my hon. Friend say hat the harbour trustees should do?
      Mr. Michael Spicer: If the amendment of my hon. Friend the Member for Harwich (Sir J. Ridsdale) had been selected it would have affected directly employed as much as self-employed pilots and that would go against the spirit of the Bill.
      I am afraid that I cannot agree that the appeal procedure in amendment No. 12 can be justified. A pilot
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      will have his contract of employment or other arrangement with the competent harbour authority. If there is any question of unfair dismissal or breach of contract, his remedies under the 1978 Act will be clear. If he wishes to appeal because he disagrees with the judgments of the competent harbour authority about the number of pilots needed in the port or about whether pilotage is to be provided by directly employed pilots, an agency or by some other arrangement, these matters should be the ultimate responsibility of the competent harbour authority. Therefore, I must ask for amendment No. 12 to be either withdrawn or rejected.
      Amendment No. 7 seeks to remove from the competent harbour authority the power to suspend or revoke authorisations where there are too many pilots in the port and where there is a change in the arrangements for providing pilotage in the port. It would undo much of the purpose of the Bill, which is to allow pilot numbers to be kept in line with the genuine requirements. I assure my hon. Friend the Member for Stroud (Sir A. Kershaw) that later we shall discuss compensation and general arrangements for pilots who will no longer receive authorisation because there are too many of them. Therefore, amendment No. 7 would have a direct wrecking effect on the main purpose of the Bill and I must ask for it either to be withdrawn or rejected.
      However, on several occasions it has been suggested that the ability of competent harbour authorities to revoke authorisations on grounds of excess numbers creates a degree of uncertainty for those who wish to be self-employed. Several of my hon. Friends have referred to that matter and it is a fair point. I hope to persuade my hon. Friend the Member for Harwich that I have fully honoured the commitment that I gave on Second Reading. We have tabled amendment No. 9 which confines the power of a competent harbour authority to suspend or revoke authorisations on the grounds of numbers to those cases where it employs pilots directly. I thought that that was what my hon. Friend wanted and I am surprised at his general attitude to amendment No. 9. It may have to do with the qualification in the amendment.
      7.45 pm
      We have allowed an exception to the general rule for pilots who are authorised temporarily before the appointed day while the possibility is explored of them transferring to another port where there are vacancies. I would have thought that hon. Members on both sides of the House would think that that that was a good idea. The representatives of the ports and pilots are discussing the details of such a transfer procedure. From their meetings it seems likely to be agreed that surplus pilots will be authorised for a limited period, for example three to six months, while the possibilities of a transfer are explored. The amendment merely allows the self-employed to benefit from the temporary arrangements in the same way as those directly employed by a competent harbour authority.
      Under the new legislation competent harbour authorities will have several ways of ensuring that costs are kept under control, even where they do not employ pilots directly, principally through their powers to set original numbers of authorisations, to set pilotage charges and through the terms of the contracts or agreements that will govern the provision of pilotage services by agents or self-employed pilots. They will also have the power under clause 3(5) to change the arrangements in the port from an

      519
      agency arrangement to direct employment. Termination of a contract will remain a ground on which pilot authorisations may be suspended or revoked. However, amendment No. 8 makes it clear that the termination of a contract, not a mere alteration, will provide such grounds. I hope that that clears up that point.
      In another place my noble friend Lord Brabazon accepted in principle an amendment requiring a competent harbour authority to give a pilot a document which he could use as a reference if it had been found necessary to suspend or revoke his authorisation on grounds unconnected with his competence, conduct or qualifications. Amendment No. 13 fulfils that commitment.
      My noble Friend also agreed to consider a suggestion by Lord Underhill that the provisions in clause 3(6), requiring a competent harbour authority to give a pilot notice in advance if his authorisation is to be suspended on grounds of incompetence or misconduct, should be extended also to cover cases where a pilot no longer meets the competent harbour authority's qualifications for a pilot—in other words the provisions set out in clause 3(5)(b). We agree that there is some similarity between those types of case, which is why amendment No. 11 will extend the notice provision accordingly.
      Amendment No. 20 would go much further than that in requiring a competent harbour authority, before suspending or revoking an authorisation, to give written notice in all cases, not solely those where misconduct, incompetence or lapsed qualifications are involved. We do not think that that would be appropriate. Therefore I ask the House to support amendments Nos. 9, 11 and 13 and to reject amendments Nos. 7, 20 and 12.
      Amendment negatived.
      Amendments made: No. 8, in page 4, line 36, leave out
      `any alteration in or'.
      No. 9, in clause 3, page 4, line 38, at end insert
      '; but the authorisation of a person who provides his services as a pilot under a contract for services may not be revoked by an authority by virtue of paragraph (c) above unless it gave him notice before the appointed day that the number of persons it proposed to authorise exceeded the number required to be authorised and it proposed to revoke his authorisation after allowing him a reasonable period from the appointed day to seek authorisation by another competent harbour authority.'.
      No. 11, in clause 3, page 4, line 40, after `(a)', insert or (b)'.
      No. 13, in clause 3, page 4, line 43, at end insert—
      `( ) Where a competent harbour authority suspends or revokes an authorisation of any person by virtue of paragraph (c) or (d) of subsection (5) above, it shall give him notice in writing—

      (a) stating that the suspension or revocation was by virtue of that paragraph; and

      (b) specifying the duration of the authorisation in question and any previous authorisations granted to that person by the authority.'. —[Mr. Michael Spicer.]

      Mr. Wallace: I beg to move amendment No. 14, in page 4, line 49, after 'is' insert '(a)'.
      The First Deputy Chairman of Ways and Means (Mr. Ernest Armstrong): With this it will be convenient to take amendment No. 15, in page 4, line 50, leave out from second 'authority' to 'be' in line 51 and insert
      ';or

      (b) an officer of such a harbour authority as is mentioned in paragraph (a) above, having duties which involve the supervision and management of the authorised pilots for such a harbour,

      520
      shall not by reason of his employment as a pilot or his holding any such office as is mentioned above.'.
      Mr. Wallace: This amendment deals with cases in which the competent harbour authority is also the local authority and, because of the general legislation, which does not permit employees of a local authority to be members of committees of that local authority, would allow exceptions to that general rule in cases of pilotage committees.
      The Bill as it stands allows for an exception in the case of persons who hold any office or employment as a pilot. The cases to which the amendment is directed are such cases as those of a senior or principal harbourmaster who has been a pilot and held a licence but, possibly because he has been taken into administrative duties, is no longer a licence holder and after the passage of this Bill will not be an authorised pilot. Nevertheless, the local authorities in my own constituency, which will be the competent harbour authorities for their areas, certainly feel that it will be of great value to have on committees, particularly the examination committee, which will examine pilots and grant authorisations, and sometimes the disciplinary committee, the services of a senior officer such as a harbourmaster or pilot-master, who has no doubt had long experience and acquired expertise in this area. The local authorities do not wish to find themselves in a position in which the pilots may have representation from their own number, which is right and proper, but they cannot have their officer because he is no longer an authorised pilot.
      This matter has been pressed with the Department of Transport for some time and the Under-Secretary of State gave me the following response in a recent letter:
      "I find it hard to see the case for this in principle, given that management in other local authority departments enjoys no such exemption."
      In response to that, first in terms of Scottish legislation, section 126 of the Local Government (Scotland) Act 1973 provides that teachers may be members of the education committee and its sub-committees. No distinction is made between teachers and head teachers, so quite clearly people well up the ladder are permitted to be members of that committee. So what I am suggesting is no major breach of principle.
      The Bill as it stands allows authorised pilots who would technically be employees of the authority to sit on committees. So again there is an exception to the general principle. At present, senior officials do sit on committees. I am thinking in particular of the director of ports and harbours for Shetland Islands council. He is not a licensed pilot, but he has been one and has considerable nautical expertise, and he is a member of the examination committee. That has been allowed under the primary legislation, with the pilotage order and the byelaws which have been made under that. So there is indeed a precedent.
      The other reason why this case is different from other cases, in which it would not be expected that a senior member of management would also be a member of a local authority committee, is that we are dealing with a situation in which that expertise can often be very valuable and necessary. Indeed, there is judicial authority for this. In a case in Glasgow sheriff court back in 1951, the case of Conway v. Clyde pilotage authority, the sheriff, in his judgment, said that the most convenient method of providing a proper committee

      521
      "would seem to be the setting up of small standing tribunal, on which the pilot master and deputy pilot master, the representatives of the pilots and other persons with nautical skill would be in the majority and which would be charged with reporting to the executive committee its conclusions on the facts of the accident …"
      There we have judicial authority for the desirability of having a committee which contains people with expertise.
      If this Bill is not extended in the way that my amendment seeks, I believe that there could be serious prejudice or at least considerable disadvantage to a local authority, which would suffer if on the committee in question the pilots had their own representatives with that expertise but the local authority would have to be represented by a layman, an ordinary elected councillor, possibly. That could be a disadvantage not only to the local authority — in this case the competent harbour authority — but also to the pilot, if it is a matter of discipline, or the person seeking authorisation.
      I think that it is to the advantage of all concerned that the committees in question should have on them people with expertise. I very much hope that the Minister will allow this amendment. As I have indicated, I do not think that there is any major departure of principle; it would only permit what has been happening up to now to continue.
      Mr. Michael Spicer: In another place, as has been said, we accepted an amendment exempting authorised pilots from the normal bar on employees of local authorities from membership of local authority committees, on the grounds that there might be some committees, for instance those inquiring into accidents, on which the up-to-date experience and knowledge of pilots might be useful. These amendments, however, seek to extend that exemption to members of the harbour management. I know that this has been asked for by Shetland Islands council.
      We feel that we must resist the amendment, given that the management in other local authority departments does not have these exemptions and, perhaps more important, other local authorities which already have pilotage responsibilities find no difficulty in dealing with all aspects of pilotage services, including such matters as examination and discipline, despite the fact that their directors are unable to sit as members of the relevant committee.
      For those reasons, we must resist these amendments.
      Mr. Wallace: I do not think that the hon. Gentleman has said anything new. I merely observe that the proposal is an enabling measure; it would not compel any local authority which is also a competent harbour authority to engage a senior member of management. Quite clearly, however, we have not over many months now been able to persuade the Minister or his colleagues. I will not press this to a Division.
      Amendment negatived.
      Clause 3, as amended, ordered to stand part of the Bill.

    Clause 4

      EMPLOYMENT ETC. OF AUTHORISED PILOTS.
      Mr. Spicer: I beg to move amendment No. 16, in page 5, line 24, after 'above', insert
      'who is not already employed by it under such a contract'.
      In a few ports, again in Orkney and Shetland, pilots are already directly employed by the harbour authority in its
      522
      role as the pilotage authority. This amendment is to make it clear that where such arrangements exist, the authority is not obliged to make a fresh offer of employment or to upset existing arrangements.
      Mr. Wallace: I thank the Minister for this helpful amendment. It helps to clarify the position, as I understand the next two Government amendments do. This is something which could have been unclear and could have led to further difficulties, and we certainly welcome this clarification.
      Amendment agreed to.
      Mr. Michael Spicer: I beg to move amendment No. 17 in, page 5, line 28, leave out
      'this subsection shall not apply'
      and insert
      'it need not do so'.
      The First Deputy Chairman: With this it will be convenient to take Government amendment No. 18.
      Mr. Spicer: The competent harbour authority will be obliged to offer direct employment to authorised pilots unless the pilots have decided that they need not do so —for instance, if they wish to be self-employed. But the pilots cannot prevent the competent harbour authority from employing them directly should the ports wish to do so. As the Bill stands, there has been some concern that, if pilots wish to be self-employed, ports will be obliged to accept that. The amendments make it clear that the ports merely have the option to accept self-employment or other arrangements.
      Amendment agreed to.
      Amendment made: No. 18, in page 5, line 30, leave out' this subsection shall not apply' and insert 'it need not do so'.
      8 pm
      Mr. ThorntonI beg to move amendment No. 19, in age 5, line 30, at end insert—
      '( ) Where by virtue of subsection (2) above a competent harbour authority is obliged to offer to employ any person, that offer shall be for not less than one year and shall in respect of remuneration and pension be no less favourable than those recommended immediately before the appointed day for the former pilotage district in which the harbour of the competent authority falls.'.
      Amendment No. 19 contains two elements which I will deal with separately. The first is that the offer of employment under a contract of employment to be made under subsection 2 shall be for a period of
      "not less than one year."
      By tabling the amendment I am not attempting to circumvent clause 3(5), especially paragraphs (a) and (b) which, by and large, will only apply to exceptional cases. I acknowledge that the contract of employment is dependent upon a person being authorised. Should a person lose his authorisation for a proper reason, I accept that, subject to the satisfaction of the provisions of the Employment Protection (Consolidation) Act 1978, his contract of employment should be terminated.
      The amendment is designed to allow pilots and other suitably qualified people with the potential to become pilots to make a commitment to pilotage in the new regimes that will come into existence on the appointed day. Those people are hardly likely to do that in the knowledge that they could be authorised under clause 3(1) and accept a contract of employment under clause 4(2) on one day and then, for whatever reason, have the authorisation

      523
      revoked the next day and, as a consequence, have their contracts of employment terminated. That is not a climate conducive to encouraging the competent and efficient to remain in the profession or attract the right calibre of man into the profession in the future.
      A similar amendment was tabled at the Committee stage in the House of Lords. In a debate on 9 December the Minister said:
      "But I think that the suggestion of a fixed term which may be extended — and I emphasise the word 'may' — during which authorisations will remain in force is a helpful one, and the minimum period of one year would also help the pilots to plan ahead. But we had to think a little about the relationship to a pilot's contract of employment or other agreement with the CHA."—[Official Report, House of Lords, Public Bill Committee, 9 December 1986, c. 31.]
      I could not agree more. Unfortunately on Report in another place on 12 February, the Minister said:
      "On reflection, I am afraid I do not think that this would he desirable. In future a pilot's security about his future must rest on the terms of his agreement with the CHA" —[Official Report, House of Lords,12 February 1987, Vol. 484, c. 758.]
      It is difficult to understand the change in attitude and equally how the results of "reflection" equate with the Government's promise to ensure the equitable treatment of the continuing pilot. That promise, I remind the Committee, was responsible for the pilots' qualified support for reform.
      Secondly, the amendment contains provision to ensure that in financial terms pilots will receive not less than that to which — for a negotiated level of work — they are presently entitled. Reference has already been made to the fact that pilots have given their qualified support to reform on the basis of Government promises ensuring the equitable treatment of pilots. It may be appropriate to quote some of the references. The Green Paper "Marine Pilotage: A Consultative Document" published in December 1984 states in paragraph 8.1:
      "The Government accept that the proposals in this paper will represent a fundamental change in the organisation of pilotage which entails an obligation to ensure that the existing members of the profession are treated fairly and equitably when the new policy is implemented."
      In a letter to my hon. Friend the Member for Harwich (Sir J. Ridsdale) dated April 1986 my right hon. Friend the Prime Minister said:
      "But in drawing up the new proposals the Government's aim will be to deal equitably with all those involved including in particular both the pilots who will be retiring and those who will be continuing."
      In a letter to the chairman of the pilots national organisation, the United Kingdom Pilots Association (Marine) dated May 1986:
      "I am satisfied too that what we propose will deal fairly with the members of your distinguished profession."
      My right hon. Friend the Secretary of State for Transport in a speech to the pilots' annual conference in October 1986 said:
      "Both I and the Minister for Shipping, Lord Brabazon, will do all we can to ease that transaction and to ensure that you get a fair deal."
      Finally, the White Paper "Marine Pilotage: Legislative Proposals" published in November 1986 states in paragraph 41:
      "The Government …is confident too that the legislation will provide a lasting basis for the future of Marine Pilotage while at the same time providing equitable treatment to the present and future members of a distinguished profession."
      If' those guarantees are to be fulfilled, undertakings would have to be entered into through legislation or
      524
      binding agreement. First, there would have to be guarantees that entry into the new regimes would be at an income level of not less than the present level of earnings and, in addition, that pension contributions would be maintained at the present level.
      Secondly, continuing pilots should be deemed to have been employed since the date of the first licensing. Thirdly, there should be protection of pension rights, including the doubling up of years between the ages of 60 and 65 and the continuation of the enhanced early retirement scheme as an on-going benefit of the fund.
      Finally, the provision of the lump sum compensation agreement should continue for a period of not less than, for example, 10 years. The amendment addresses only the first of those four matters.
      It is interesting to note what the Pilotage Commission had to say in a submission to the Minister responsible for shipping on 6 June 1985. It stated that in any future reform pilotage service the Commission believed that
      "Regard must be had to the fair treatment of the continuing pilots who should not be disadvantaged in respect of their overall service entitlements."
      In a letter to Lord Brabazon, the Under-Secretary of State, dated 26 November 1986, the Pilotage Commission stated:
      "You will recall that in commenting on the Green Paper the Commission stressed that Harbour Authorities should be required to employ pilots on fairly negotiated terms in respect of pay and conditions having regard to the pilots current recommended level of earnings and other entitlements. In this respect the Bill contains no safeguard to ensure the equitable treatment of pilots and I would wish to place on record the Commission's view as to the need for a suitably worded amendment to remedy this defect."
      That point was picked up by Viscount Simon in Committee stage in the House of Lords. He said:
      "We regard this as one of the most important amendments that we have to consider in this Bill, because the Government have given an assurance, I understand, in several forms to the pilots, that those who are at present licensed pilots and who wish to continue as authorised pilots under the new pilotage authorities will be fairly and equitably treated. That is something which I think the whole Committee would wish to see done. But there is nothing at all that I can see in the Bill which makes provision for this and that is why we have put the amendment down."
      In reply, among other things, the Minister said:
      "It is not unusual for legislation to provide that, where employees of one body are being transferred to a new employer, their level of earnings should be preserved. But in this case self-employed members of the profession are being offered employment."
      However, the noble Lord Brightman had already said:
      "I also support the spirit although not the form of the amendment … but an obligation to offer a contract of employment does not have any meaning as a matter of law, unless there is spelt out the terms on which that offer is to be made. I therefore ask: where in the Bill do we find the terms of the obligatory offer? What does the harbour authority have to do in order to fulfil its statutory obligations? Will any old offer do?
      If nothing is spelt out as regards the ascertainment of the terms of the offer, which, by statute, the harbour authority will have to make, it seems to me that the obligation is really meaningless."—[Official Report, House of Lords, Public Bill Committee, 10 December 1986; c. 45–51.]
      So much for the value of a contract of employment.
      At this stage, nothing has yet been spelt out on the terms of the offer. In any case, are the pilots truly self employed? My right hon. Friend the Prime Minister obviously does not think so because in the letter to Mr. Wilkin, to which I referred, she stated:

      525
      "and in any case I think you will agree that, although pilots are treated as self employed for Inland Revenue purposes, the profession has few of the characteristics normally associated with self employment."
      On Report, the Government introduced an amendment which is now clause 5 of the Bill. The clause is entitled:
      "Temporary procedure for resolving disputes as to terms of employment".
      In introducing the amendment, the Minister said:
      "I made it plain, and I have made it plain again today, that I did not regard such a guarantee as justifiable, but I recognised that there was a feeling in the Committee that the provision about the offer of employment needed to be supplemented. Several noble Lords suggested that an arbitration procedure should be considered. These amendments set out such a procedure which I hope your Lordships will accept." —[Official Report, House of Lords, 12 February 1987; Vol. 39, c. 812.]
      It has been made clear by the pilots that this is no substitute for Government guarantees, a fact that was conveyed to Lord Brabazon by Lord Underhill in a letter which stated:
      "The main question however"—
      it remains unanswered—
      "is what is the Government proposing to insert in the Bill to carry out the many undertakings given to pilots on the conditions of service and benefits for continuing pilots."
      On Third Reading in the House of Lords, the Minister referred at column 791 to the terms of the general guidance that the Secretary of State will give to the arbitration panel under clause 5(3) which he said should, if at all possible, be agreed in advance by both the pilots and the ports. He went on to say that the pilots and ports had already been able to agree on seven general considerations to which the panel would be required to have regard as appropriate in making its determinations while recognising that others may also need to be taken into account in some cases. It appears that the Government believe that they are fulfilling their promises and undertakings to the pilots by the institution of an arbitration panel which shall have to have regard "as it considers appropriate" to some general guidance notes provided by the Secretary of State. I suggest that any reasonable man can come to his own conclusions on whether that is the case. The pilots do not think so, nor do I.
      The amendment is intended to assist the Government to fulfil part of their repeated promises to ensure the equitable treatment of the continuing pilots. The guarantees have been given successively by my right hon. Friend the Prime Minister, my right hon. Friend the Secretary of State, Lord Brabazon and my hon. Friend the Under-Secretary of State for Transport — the hon. Member for Worcestershire, South (Mr. Spicer) —hon Second Reading. I should like to hear from my hon. Friend the Under-Secretary of State how the Government proposes to deliver that commitment. Without such a provision in the Bill, the Government's promises will have been meaningless.
      Dr. Godman: I have good deal of sympathy for the amendment. It states:
      "a competent harbour authority is obliged to offer to employ any person".
      Should not that obligation be extended to those who work on, say, pilot cutters and to those who do pilotage work within ports? I am sure that the Minister will acknowledge
      526
      that I have given him notice, albeit just a few hours, of the questions that I should like to put to him and to put in the Official Report.
      8.15 pm
      Will the Minister give the Committee an assurance that the Bill's provisions will not have an adverse effect on the future employment of licensed river and dock pilots in the port of London and on those employed as licensed dock and harbour pilots in south Wales ports? I need hardly remind the Minister that those men have given excellent service over many years in meeting the needs of shipping in those ports. Is the Minister satisfied that the Bill's provisions for the future employment of and compensation for persons employed in the pilotage service, other than pilotage authority staff, will ensure that such persons are treated no less favourably than those employed by pilotage authorities?
      My next question is important to ancillary employees. What criteria will the Pilotage Commission apply in carrying out its responsibilities under the Bill's provisions for the making of arrangements under schemes which will apply to employees as well — for example, pilot boat crews and others on the staff of the pilotage authorities? The amendment is concerned with the terms and conditions of employment of pilots, but the provisions need to be extended to those other employees. Will the Minister's officials give guidance to the Pilotage Commission to ensure that those employees are dealt with fairly and that the commission applies the same standards in making arrangements for a scheme for such employees as for pilotage authority staff?
      The hon. Member for Crosby (Mr. Thornton) said that concern had been expressed in the other place about the need to treat pilots equitably. I wholeheartedly share that concern, but my concern extends to those who assist pilots to fulfil their responsibilities. The hon. Member for Crosby mentioned clause 5. Does clause 5 cover those employees and other persons in terms of arbitration? Their terms and conditions of employment must not be ignored by the Government or by the competent harbour authorities.
      Mr. Stott: I listened with great interest to what the hon. Member for Crosby (Mr. Thornton) said in a long contribution on an important matter. The Bill's main thrust is clearly to change the procedure whereby pilots are employed. In general, it is reasonable for the Minister to say that when the Government actively seek by legislation to change the terms of reference of any person's employment, certain matters will be taken into account. Those points could be made in respect of steelmen, miners and many other people. I had hoped that Conservative Members would join us in making that point. This does not in any sense dilute what the hon. Member for Crosby said about the group of people whose terms of employment are being changed by an Act of Parliament. As legislators we must be sure that we are fair, just and equitable in the way in which we proceed.
      I shall be interested to hear the Minister's reply to his hon. Friend, who made a very telling intervention. I have read the Bill from cover to cover, but I can find nothing to suggest that ancillary staff will have access to an arbitration tribunal if the terms of reference of their employment are altered as a consequence of the Bill. We are talking not only about a change to the pilotage service, but the effect that that will have on ancillary staff in the

      527
      pilotage service—for example, those who are employed on pilot cutters. My hon. Friend the Member for Greenoch and Port Glasgow (Dr. Goodman) asked whether there is anything in the Bill that will benefit them in respect of an appeal to a tribunal. We are talking not only about pilots in the United Kingdom but about others who work on pilot cutters, who also have rights and contracts of employment. We should not lose sight of that fact when discussing changes in pilot employment contracts.
      Like the rest of the Committee, I shall be interested to hear the Minister's reply on a very important and fundamental principle in the Bill.
      Mr. Wallace: There has been—certainly on Second Reading —consensus on the Bill and on a rationalisation of pilotage services in the United Kingdom. It is essential that Parliament, in taking this step, which will have such impact on the lives and employment prospects of so many people, should address the conditions that will affect the incomes of those people. The guidance note contains a provision which, if applied, could lead to fair and equitable treatment of pilots.
      A distinction must be drawn between employees and those who are self-employed. Self-employment carries risks and uncertainties that are not always felt by employees who enjoy the full protection of employment legislation. The Secretary of State should also include it in his guidance note that when pilots become employed and are brought into the staff structure of competent harbour authorities, their remuneration will have effect and will be noted by other senior officers of the harbour authority.
      I cannot claim any experience in negotiations, but one does not need to have that experience to observe that differentials in salaries often lead to conflict and difficulty in industrial relations. That should be borne in mind when new rates of remuneration are fixed. Throughout the passage of the Bill in the other place and in the time leading up to the presentation of the Bill, pilots have been given assurances that they will he treated fairly and reasonably and that principles of equity will apply. The hon. Member for Crosby (Mr. Thornton) is right to press the Government.
      Dr. Godman: How many ancillary employees are employed by the Shetland pilotage authority?
      Mr. Wallace: I would have needed advance notice of that specific question. Perhaps I could write and tell the hon. Member.
      We ask the Government to assure us that what they are proposing will be fair and reasonable. We ask the Minister to say whether there is any way in which the guidance notes can be made more binding on the arbitration panel. The guidance notes that have been agreed between the two sides of the industry will help to ensure some degree of fairness. Will the Minister tell us how they will become more binding on the panel?
      Mr. Michael Spicer: My hon. Friend the Member for Crosby (Mr. Thornton), who quoted the Pilotage Commission and also my noble Friend Lord Brabazon, was being a little unfair because those quotations were taken from a point in the debate before we had agreed to the statutory arbitration procedures to be included in the Bill.
      In answer to the question by the hon. Member for Greenock and Port Glasgow (Dr. Godman), supported by
      528
      the hon. Member for Wigan (Mr. Stott), boat crews and other staff employed by the pilotage authorities will be included in the schemes under clause 24 and will be transferred to the employment of the appropriate competent harbour authority. If they are employed by a private company, they will not be included in the schemes because, unlike the pilotage authorities, the employees of private companies will not have been abolished, as it were. If the competent harbour authority decides to make changes in the arrangements for boat services which involve redundancy, the employer will have to meet his obligations in the normal way.
      The only exemption or exception is where boat crews or other people are employed by the pilots themselves. In that case the Pilotage Commission will have discretion to include them in the winding-up scheme. We arc discussing these details at official level with the Pilotage Commission. So far as those who are employed by pilots are concerned, the Pilotage Commission will have discretion over the scheme that it puts forward.
      The amendment is intended to require a competent harbour authority which employs pilots to guarantee rates of remuneration under the new arrangements. We do not agree that it is reasonable for pilots to have a cast-iron guarantee of this sort, because it would severely hamstring the ability of competent harbour authorities to negotiate sensible improvements in the efficiency of the service. The pilots' position is well protected by the arbitration provisions in clause 5. General guidance to the panel will be given by the Secretary of State, and representatives of pilots and the ports have agreed a list of considerations which, in their view, should constitute that advice.
      Among the considerations are the pilots' past earnings, recommended and actual. The British Ports Association has indicated that it would be willing to include these considerations in agreed guidelines for the employment of pilots by port authorities. I have seen no evidence that the ports are seeking to press down levels of earnings or to get pilots' services on the cheap. Even if they were, the arbitration procedure amounts to considerable protection. The going rate of pay for a pilot will, I am sure, remain much as it is at present, but it is important that the competent harbour authorities should have the ability to negotiate with the pilots to see that in return there is an acceptable level of productivity in the port.
      8.30 pm
      It seems likely that most pilots will remain in the pilots' national pension fund. As that is a private pension fund, I do not believe that we should legislate to pre-empt the decisions of the managers. In any event, the British Ports Association, which, with the pilots, will he responsible for the fund under the new regime, has already given undertakings that current levels of benefit will be maintained, subject always to the financial position of the fund. Therefore, I ask my hon. Friend to withdraw the amendment.
      Mr. Thornton: I have listened carefully to what the Minister has said and I accept entirely his expression of good will. However, I must press the amendment to a Division because ministerial expressions of good will are not a bankable commodity for the future fair and equitable treatment of pilots. Therefore, I ask the Committee to support the amendment.
      Question put,That the amendment be made:—
      The Committee divided: Ayes 14, Noes 85.

      Division No. 144]

      [8.31 pm

      AYES

      Anderson, Donald

      Prescott, John

      Carlile, Alexander (Montg'y)

      Skinner, Dennis

      Foot, Rt Hon Michael

      Stott, Roger

      Golding, Mrs Llin

      Taylor, Matthew

      Haynes, Frank

      Wallace, James

      Howells, Geraint

      Hughes, Robert (Aberdeen N)

      Tellers for the Ayes:

      Kirkwood, Archy

      Mr. Malcolm Thornton and Dr. Norman A. Godman.

      Powell, Raymond (Ogmore)

      NOES

      Amess, David

      Hordern, Sir Peter

      Ancram, Michael

      Howarth, Gerald (Cannock)

      Arnold, Tom

      Howell, Ralph (Norfolk, N)

      Ashby, David

      Jessel, Toby

      Atkins, Rt Hon Sir H.

      Jones, Robert (Herts W)

      Atkins, Robert (South Ribble)

      Kershaw, Sir Anthony

      Baker, Nicholas (Dorset N)

      Lawrence, Ivan

      Baldry, Tony

      Lennox-Boyd, Hon Mark

      Batiste, Spencer

      Lloyd, Peter (Fareham)

      Bellingham, Henry

      McCrindle, Robert

      Biggs-Davison, Sir John

      Malone, Gerald

      Boscawen, Hon Robert

      Marlow, Antony

      Bottomley, Peter

      Moate, Roger

      Bowden, Gerald (Dulwich)

      Moynihan, Hon C.

      Braine, Rt Hon Sir Bernard

      Neubert, Michael

      Bryan, Sir Paul

      Newton, Tony

      Burt, Alistair

      Norris, Steven

      Butterfill, John

      Onslow, Cranley

      Chope, Christopher

      Percival, Rt Hon Sir Ian

      Clark, Hon A. (Plym'th S'n)

      Portillo, Michael

      Colvin, Michael

      Powley, John

      Cope, John

      Proctor, K. Harvey

      Couchman, James

      Rathbone, Tim

      Dorrell, Stephen

      Ridsdale, Sir Julian

      Durant, Tony

      Ryder, Richard

      Eyre, Sir Reginald

      Sainsbury, Hon Timothy

      Fallon, Michael

      Smith, Tim (Beaconsfield)

      Favell, Anthony

      Spencer, Derek

      Fenner, Dame Peggy

      Spicer, Michael (S Worcs)

      Forth, Eric

      Stanbrook, Ivor

      Fox, Sir Marcus

      Stern, Michael

      Freeman, Roger

      Stevens, Lewis (Nuneaton)

      Goodhart, Sir Philip

      Taylor, Teddy (S'end E)

      Greenway, Harry

      Thompson, Patrick (N'ich N)

      Gregory, Conal

      Twinn, Dr Ian

      Griffiths, Peter (Portsm'th N)

      Waddington, Rt Hon David

      Ground, Patrick

      Wakeham, Rt Hon John

      Hamilton, Hon A. (Epsom)

      Wells, Bowen (Hertford)

      Hampson, Dr Keith

      Wheeler, John

      Hargreaves, Kenneth

      Wiggin, Jerry

      Harris, David

      Hawkins, Sir Paul (N'folk SW)

      Tellers for the Noes:

      Heseltine, Rt Hon Michael

      Mr. Francis Maude and Mr. David Lightbown.

      Hill, James

      Hind, Kenneth

      Question accordingly negatived.
      Mr. Thornton: I beg to move, amendment No. 21, in page 6, line 3, leave out subsection (4).
      Subsection 4(4) states:
      "A competent harbour authority may refuse to authorise any person who is not willing to provide his services as a pilot in accordance with the arrangements made for the provision of such services in its area."
      Prior to Third Reading in the Lords, the subsection read:
      "A competent harbour authority may refuse to authorise any person who is not willing to provide his services as a pilot in accordance with such arrangements as the authority considers appropriate under subsection (1) above."
      That clause was so draconian as to be untrue. It effectively negated all the promises that were made by the
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      Government that they would ensure the equitable treatment of pilots. It effectively nullified the intention of the newly introduced arbitration board.
      In view of the statements that the Minister made in the last debate, I do not believe that this subsection, as redrafted, improves on that situation. It is clearly subordinate to subsection (1) of the clause, which states:
      "Subject to subsection (2) below, a competent harbour authority may make such arrangements as it considers appropriate for the provision of the services of authorised pilots in the area in relation to which its duty under section 2(1) above is exercisable (whether under a contract of employment or a contract for services)."
      I have underlined the important aspect to which subsection (4) clearly is subordinate—such arrangements as it considers appropriate for the provision of services. This amendment serves no useful purpose, in that the general terms in which the Bill is written do not impose a duty on any competent harbour authority to authorise any person it does not wish to.
      I shall comment on this amendment in relation to the Minister's remarks in the last debate. He feels that the assurances that have been given are sufficient. Clearly the pilots do not. The guidelines that have been laid down, unless they are contained somewhere in the Bill or schedule, need to be more substantive than a ministerial assurance.
      Nothing that I have heard tonight allays my fears that the pilots may find themselves unable to receive the sort of treatment which the Prime Minister, my right hon. Friend the Secretary of State, as well as the noble Lord, Lord Brabazon, promised that they would.
      Mr. Michael Spicer: This amendment may remove the competent harbour authority's right to have the final say as to whether it will offer direct employment. Since that is fundamental to the Bill I must ask my hon. Friend to withdraw it, or we should resist it.
      Mr. Brinton: I have been puzzling over this amendment. I am an amateur and I do not understand the technicalities. However, it seems to me that this paragraph means that the authority that decides on qualifications of a professional pilot also decides whether he should be employed. If he is not willing to be employed by that authority, does that mean that he loses his qualifications to work as a pilot?
      Mr. Spicer: It is the authorisation that gives the pilot his status. It then becomes another matter as to whether he is given sufficient opportunity to be employed.
      Amendment negatived.
      Clause 4, as amended, ordered to stand part of the Bill.

    Clause 5

      TEMPORARY PROCEDURE FOR RESOLVING DISPUTES AS TO TERMS OF EMPLOYMENT
      8.45 pm
      Mr. Thornton: I beg to move amendment No. 22, in page 6, line 15, after 'employment' insert 'or contract of services'.
      The First Deputy Chairman: With this it will be convenient to take amendment No. 24, in page 6, line 22, after 'employment' insert
      'or the kinds of contracts of services'.
      Mr. Thornton: The purpose of this amendment is to ensure that all the continuing pilots will be treated in a similar fashion — that is, both those who accept contracts of employment under section 4(2) and those who opt for alternative methods of employment.
      The Government see the clause as a means whereby they are fulfilling the several undertakings given to pilots. The clause was written into the Bill as an amendment on Report in another place. In moving the Amendment, the Minister stated:
      "I believe that with the acceptance of these amendments there can no longer be any doubt in anyone's mind that the Government are fulfilling the undertakings we have given the pilots who continue in the profession, no less than those who retire, that they will receive fair and equitable treatment." —[Official Report, House of Lords, 12 February 1987; Vol. 484, c. 813.]
      As worded, this clause will apply only to those pilots who accept contracts of employment and obviously, if not amended in the manner suggested, the Government would not be fulfilling their undertaking—as exemplified by the amendment to clause 4 —to a large number, perhaps the majority, of the continuing pilots.
      This is in line with amendments previously introduced into the Bill by the Government — for example, by amending clause 4(1) to include
      "(whether under a contract of employment or a contract for services)."
      That would make self-employment an option which could be considered. Without it, self-employment is not a starter. I hope that the Minister will accept this amendment.
      Mr. Michael Spicer: We have introduced into the Bill, by way of an amendment in the House of Lords, a temporary arbitration procedure with regard to contracts of employment between the competent harbour authorities and the pilots.
      The suggestion in these amendments is that those arbitration procedures should also be applied to a case where pilots are not directly employed by the competent harbour authority. We believe that to be unnecessary, since any such arrangements can be introduced only if there is an agreement between the parties.
      There is a further point. Contracts for services may, in some cases, be placed as a result of competitive tenders put out to two or more possible contractors. Clearly, arbitration would have no place in determining what the terms of a contract resulting from competitive tendering should be.
      I must ask my hon. Friend to withdraw this amendment or urge the Committee to resist it.
      Mr. Thornton: I beg to ask leave to withdraw the amendment.
      Amendment, by leave, withdrawn.
      Mr. Michael Spicer: I beg to move amendment No. 23 in page 6, line 20, leave out second 'the' and insert 'an'.
      This is a technical amendment to make it clear that the chairman and or members of the arbitration panel may he different in different cases of dispute.
      Amendment agreed to.
      Mr. Michael Spicer: I beg to move amendment No. 25, in page 6, line 26, leave out from first 'of to 'by' in line 27 and insert
      'three members, one appointed by the Secretary of State, one'.
      The First Deputy Chairman: With this it will be convenient to take the following: Amendment No. 26, in page 6, line 26, leave out from first 'of' to `by' in line 27 and insert
      'three members, one, the Chairman, appointed by the Secretary of State, one'.
      Government amendments Nos. 27 and 28.
      Mr. Spicer: Amendment No. 26, tabled by my hon. Friend the Member for Crosby (Mr. Thornton) makes it clear that the bodies representing the ports and the pilots are each to appoint one member of the arbitration panel. It also provides that the member of the panel appointed by the Secretary of State should be as chairman. I am happy to accept that amendment, and therefore not to press amendments Nos. 25 and 28. However, I would wish to move amendment No. 27, which complements my hon. Friend's amendment and which I will ask the Committee to accept.
      Mr. Hill: I am afraid that there are difficulties here. Certainly, the British Ports Association, Associated British Ports and the United Kingdom Pilots Association have all raised serious queries about the arbitration panel. We understand that there will be a chairman appointed by the Secretary of State who will be completely independent —that goes without saying. Perhaps my hon. Friend the Minister will reaffirm that when he sums up. Also, the chairman would have to be of a legal persuasion. He would have to have some experience in arbitration matters and would perhaps have served a considerable time on some industrial panel. I think that my hon. Friend the Minister will be able to confirm those points.
      One of the queries from the United Kingdom Pilots Association is, how will the operating costs of the panel be funded? I am sure that there is a fairly simple explanation but the association does not seem to understand that side of the matter yet. When is the arbitration panel scheduled to be in operation? Is there some time scale that my hon. Friend the Minister could give us?
      Another difficulty has arisen. The British Ports Association is not necessarily representative of all the employers in the ports.
      Mr. Stott: It is not.
      Mr. Hill: I am receiving confirmation of that fact from the Opposition, so it must be right. Associated British Ports is not a member of the British Ports Association. There are rumours — no doubt the Department of Transport will know whether they are true — that other ports are leaving the British Ports Association and that there may be difficulties in the future in getting a representative port view on the arbitration panel.
      Dr. Godman: The hon. Gentleman talked about the chairman of the panel in his view being someone from the legal profession — perhaps a QC, as is often the case with arbitration panels. Would he expect one of the other two members to be a practising pilot?
      Mr. Hill: I think that the Minister will agree with me that that would be the right way to proceed. The difficulty is that the arbitration panel would at the same time have to have a fair voice from the port employers; it would not necessarily have to be weighed completely towards the pilotage employees.
      Associated British Ports is suggesting that the two other members of the panel—the hon. Member for Greenock

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      and Port Glasgow (Dr. Godman) mentioned the pilot—can either be regarded as acting in a quasi-judicial capacity, in which case they should have no connection with either of the parties subject to the arbitration, or they should be direct representatives chosen by the parties concerned. I know that Associated British Ports will have no argument about that. Therefore, that confirms what I said to the hon. Member for Greenock and Port Glasgow.
      The Bill currently does not provide for either of those alternatives. The pilots will be able to choose a direct representative, which is fair and equitable, but the port industry nominees envisage having no direct connection with the port subject to arbitration. Therefore, the essential balance of the three-man panel will be lacking. The idea is being floated that if the essential balance is lacking it may mean that the port representative might be employed by a competitor and might have an interest in achieving a result favourable to the pilots. I do not feel that there is any foundation in that, but, at this stage of setting up an arbitration panel, the port authorities will be just as sensitive to the make-up of the arbitration panel as the pilots themselves.
      A suggestion has been made to a Mr. Finney of the British Ports Association that the list of the harbour authorities' representatives should consist of two names —that is, on the panel itself—nominated by Associated British Ports together with British ports authorities' representatives. I can see that that could be carried still further. If there are port authorities that are not members of the British Ports Association, obviously they would have to have some understanding as well.
      Mr. Stott: I am listening carefully to what the hon. Gentleman says. However, I wonder whether it would be more beneficial if he were to use his undoubted talent and powers of persuasion to persuade Associated British Ports to rejoin the British Ports Association. That would resolve the problem completely.
      Mr. Hill: I shall definitely do what little I can to achieve that but it is far beyond a lone Back-Bencher's commitment. I know that all the bodies involved in this tussle for control — that is what it is — will be listening this evening and they will have to finalise that between themselves. I think that there will be an equitable arrangement on the ports side.
      All I am saying is that all is not harmony and light on the matter of the arbitration panel. There will have to be more talks in depth with the possible members of the panel and I certainly feel that the pilots must have a firm representation. The ports authorities must have a firm representation and I could even see, as was mentioned earlier, that there might be an ancillary staff representation, because my understanding of the debate is that their voice will also be heard in arbitration matters.
      Obviously my hon. Friend the Minister will not be able to give me a positive answer. He will have to find out from his Department whether there are difficulties. I believe that more port authorities are thinking of leaving the British Ports Association. However, having said that, I see a glimmer of a message coming from the Box. Perhaps if I stall for 10 seconds or more I might find out whether it will help. I know that my hon. Friend the Minister has a good grasp of the Bill and is only too anxious to cast some light on it this evening.
      Mr. Michael Spicer: I am told that the note does not help much, so I shall try on my own.
      In answer to my hon. Friend the Member for Southampton, Test (Mr. Hill), the costs will be met from the Pilotage Commission funds, which were part of the scheme that was proposed to the Secretary of State. They will come into operation as soon as there is a dispute that makes that necessary. That could be before the appointed day, if necessary.
      As for the machinations between ABP and the BPA, I do not think that my hon. Friend the Member for Test would expect me to join in those. It is for those bodies to come to an agreement. It is certainly the intention of the Government that the port should be properly represented. If there is any doubt about the extent of representation for the ports, the Secretary of State has powers under the Bill to make regulations, after considering the views of the parties. The position is clear: we want representatives of the ports to be on the arbitration panel.
      Amendment negatived.
      Amendments made: No. 26, in page 6, line 26, leave out from first 'of' to `by' in line 27 and insert
      'three members, one, the Chairman, appointed by the Secretary of State, one'.
      No. 27, in page 6, line 29, after 'and', insert 'one by'. —[Mr. Michael Spicer.]
      Mr. Michael Spicer: I beg to move amendment No. 29, in page 6, line 42, at end insert—
      '(4A) The references to contracts in subsection (1) above do not include contracts of employment entered into before the appointed day for provision of services as a pilot before that day.'.
      The First Deputy Chairman: With this, it will be convenient to take Government amendment No. 80.
      9 pm
      Mr. Spicer: The temporary arbitration procedure is intended to apply to cases in which a formerly self-employed pilot has been taken into employment by the competent harbour authority. In a few ports, notably Orkney and Shetland, pilots are already employed under well-established arrangements. There is no need, therefore, for special arbitration arrangements to apply. The amendments would exclude those cases from the temporary arbitration procedure.
      Amendment agreed to.
      Clause 5, as amended, ordered to stand part of the Bill.

    Clause 6

      PILOT BOATS
      Mr. Thornton: I beg to move amendment No. 32, in page 7, line 17, leave out
      'is satisfied that it is suitable for use as a pilot boat'
      and insert
      'complies with regulations for such boats made by the Secretary of State under section 21 of the Merchant Shipping Act 1979'.
      I can speak with considerable experience when I say that there are few things more vital to the safety of pilots than those small boats that they use to board and leave vessels. On Report in the House of Lords, the Minister stated his view that the suggestion that the Secretary of State should approve and license pilot boats would be unnecessary and it would be sufficient for the competent harbour authorities to have that power.

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      On Third Reading the Minister stated:
      "Our approach encompasses belt and braces—first, the regulations under the Merchant Shipping Act, for which I have promised to bring forward proposals; and secondly, the new statutory obligation on the CHA".—[Official Report, House of Lords,5 March 1987; Vol. 485, c. 798.]
      The amendment will not remove responsibility for approving or licensing pilot boats from competent harbour authorities. It will remain with them but it will provide them with clear minimum standards to ensure that they do not approve or license a boat that is not completely suitable, always bearing in mind that, for many competent harbour authorities, that will be a new responsibility outside their previous experience.
      Pilot boats operate in weather conditions in which the only other boats of comparable size likely to venture to sea are the lifeboats of the RNLI. I am sure that the House will not overlook the fact that, in terms of serious injury and fatality, pilotage is proportionately about the second-highest risk profession in the country. Two examples within recent memory will be sufficient to support that statement. A Falmouth boat pilot lost his life attempting to board a passenger ferry that was desperately seeking shelter, having been damaged in heavy seas. It was subsequently found that the pilot boat was defective in some respects.
      A Blyth pilot lost his life attempting to board a comparatively small ship in bad weather. The pilot boat had not been propertly manned and the Department had to write to the Blyth pilotage authority. The question of manning levels for pilot boats is, I accept, not something that can be applied right across the board. However, I know—again from personal experience—how difficult it is to get a man out of the water if the boat that is attempting to extricate him has insufficient crew on board. In most cases a minimum of two crew members is required. The man in the water is extremely heavy. If he is unconscious or injured he is virtually incapable of helping himself to get out of the water. In the operation of boarding and taking off pilots, it is essential that competent harbour authorities have regard to minimum standards, including the quality and standard of the boat and of manning levels. Safety must be paramount.
      I do not believe that the Government subscribe to the view that the safety record has been satisfactory, yet the standards contributing to that record were, in the absence of legislative regulations, set by pilotage authorities, that are independent, non-commercial and non-profit-making organisations. If we assume that in future the same constraints will not apply, I suggest that the record is hardly likely to improve. However, if what the Minister said on Third Reading in another place is correct—he said that it was intended to make regulations under section 21 of the Merchant Shipping Act 1979 for pilot boats to which the competent harbour authorities will need to have regard in the exercise of the statutory obligation imposed upon them by the clause—I would be more than happy and would wish to withdraw the amendment.
      Mr. Stott: The hon. Member for Crosby (Mr. Thornton) has explained why he feels that it is necessary that the Minister complies with his wishes on pilot boats. lie has done so from a wealth of personal experience. He is the only Member of this place who is a qualified pilot; he is the only Member who has boarded a ship from a pilot cutter. I suspect that I am one of the very few who have assisted him in boarding a ship.
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      I spent five years in the merchant service both as a helmsman and an able seaman. In leaving and entering the ports of the United Kingdom, or ports around the world, it can be one of the most difficult tasks to bring the pilot on board. In normal circumstances it is a reasonably easy thing to do, but those of us who have been to sea and have spent some time on it recognise that the sea is not always as kind as it should be. There are conditions when the taking on board of a pilot can be an extremely hazardous operation. I have been involved in such operations and I concur with what the hon. Gentleman has said. It is extremely dangerous.
      The Bill will transfer responsibility for pilotage, including pilot cutters, those who work on them and the delivery of a pilot on a ship, to competent harbour authorities, and we must be sure that we have the safety of those men and those on the pilot cutters much in our minds. The amendment will not remove responsibility for approving or licensing pilot cutters from the competent harbour authority. It does not seek to remove that which the Bill intends. The amendment merely provides that the authority should comply with the regulations for such boats that are made by the Secretary of State under section 21 of the 1979 Act. The clause is comprehensive and sets out in detail requirements for safety at sea and on board ships. If the Minister can satisfy us that the competent harbour authorities will have the relevant obligation laid upon them, I, like the hon. Gentleman, will not press the amendment to a Division.
      Dr. Godman: I have no pilotage experience but I have some experience of small fishing boats. I know that a small boat that is not robust can present formidable problems for those on board when they find themselves in choppy water. I was particularly struck by the suggestion of the hon. Member for Crosby (Mr. Thornton), that there should be at least two crew members on small boats. I agree wholeheartedly. A small boat might be corning alongside a much bigger vessel in choppy weather, for instance—I am talking about the Clyde and the Forth, but even on an estuary such as the Humber we rarely see the sea as calm as the proverbial mill pond. Someone will be needed at the wheel, and another person will be needed to take hold of the rope ladder; a third person may also be needed.
      I should also like small boats to carry an immersion suit for each of those on board, with an extra one for the pilot, in case the boat gets into difficulties. I do not know whether regulations will be brought in concerning immersion suits for small vessels — presumably those under 15 m in overall length—but I feel that such suits, and at least two crew members, are necessary for the safety of the pilot and the crew.
      Mr. Michael Spicer: On Second Reading, I confirmed the undertaking by my noble Friend Lord Brabazon of Tara in the other place to bring forward proposals in regulations on the survey of pilot boats before the implementation of the Bill. That remains our intention. The Bill at present places an immediate obligation on the harbour authority to satisfy itself as to the safety of pilot boats, but the amendment would remove that obligation. It would mean that pilot boats would not be subject to any regulations at all until the regulations under the Merchant Shipping Act 1979 had been made.
      I confirm to my hon. Friend the Member for Crosby (Mr. Thornton) and the hon. Member for Wigan (Mr.

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      Stott) that such regulations will be made. However, it will take time for our proposals to be brought forward, for the interested parties to be consulted and for the regulations to go through the appropriate statutory procedures.
      The amendment would open up the possibility of a gap after the appointed day, during which boats would not be regulated at all. As has been implied by hon. Members who have spoken, it would be to everyone's benefit for the competent harbour authorities to be placed under a statutory obligation to approve pilot boats regardless of what is done under the Merchant Shipping Act. The specific duty on a CHA to satisy itself as to the suitability of pilot boats is a more stringent requirement than that contained in the existing legislation. I hope that my hon. Friend will feel able to pursue his intention to withdraw the amendment.
      Dr. Godman: I know that it is not the Minister's responsibility, but, under the clause in its present form, would such vessels be subjected to annual inspections by, say, inspectors from the Department of Transport?
      Mr. Spicer: Yes. — Sorry. When I answered that question, I was looking at my expert advisers and thought that I saw a nod. However, it was a shaking of the head. I withdraw my answer; in fact, that is why we are bringing forward the regulations.
      Dr. Godman: I was heartened by the Minister's assurance, and I am encouraged by his honesty. However, this is a very serious matter. The owners of small fishing vessels have to submit their craft for inspection. A similar recommendation ought perhaps to be introduced for these small vessels.
      Mr. Spicer: That is why the Bill imposes an obligation on the harbour authorities to ensure that they are safe. That is one of the great improvements that will be brought about by the Bill.
      Mr. Thornton: I am grateful for my hon. Friend's assurance. I merely ask him, as the Merchant Shipping Act 1979 has been on the statute book for some time, to do everything in his power to expedite the procedure for bringing forward the necessary regulations.
      I beg to ask leave to withdraw the amendment.
      Amendment, by leave, withdrawn.
      Clause 6 ordered to stand part of the Bill.

    Clause 7

      PILOTAGE DIRECTIONS
      9.15 pm
      Mr. Michael Spicer: I beg to move amendment No. 33, in page 7, line 37, after 'apply' insert
      `to ships of less than 20 metres in length or'.
      The First Deputy Chairman: With this we shall take Government amendment No. 35.
      Mr. Spicer: The Bill as drafted provides for no general exemption from compulsory pilotage for pleasure craft or other small vessels. The decision about which vessels need to have pilots is best left to the competent harbour authorities. There is no reason to believe that any of them would be foolish enough to try to place a pilot on every
      538
      small yacht that entered the harbour. However, as the anxieties of yachtsmen have been expressed to me and to Lord Brabazon by hon. Members on both sides, and as we believe that it is of little practical significance, we have decided to retain the exemption for the compulsory pilotage of yachts. Amendment No. 33, therefore, exempts all vessels of less than 20 m in length.
      Amendment No. 35 is a drafting amendment to omit "vessels" and to insert "ships", which is the term that is used throughout the Bill.
      Amendment agreed to.
      Mr. Thornton: I beg to move amendment No. 34, in page 7, line 41, leave out paragraph (a).
      The First Deputy Chairman: With this it will be convenient to discuss the following amendments: No. 83, in page 7, line 43, leave out 'other'.
      No. 36, in page 7, line 44, at end insert
      `and ( ) any persons representative of public bodies appearing to it to have an interest in the area to which a pilotage direction applies'.
      New clause 1 — Temporary procedure for resolving disputes as to provision of pilotage directions—
      ' —(1) Where any dispute arise between a competent harbour authority and any of the parties mentioned in section 7(4) above—

      (a) as to what the terms of any provision in any pilotage direction should be; or

      (b) as to whether the terms of any provision in any existing pilotage direction should be modified,

      and that dispute cannot be resolved by negotiations between them, any of the parties to the dispute may refer the dispute to the panel appointed in accordance with subsection (2) below and the panel shall determine what the terms of that provision should be and the pilotage direction to which their determination is to apply ("relevant direction").
      (2) The panel referred to in subsection (1) above shall consist of a member appointed by the Secretary of State and two members appointed respectively by a body appearing to the Secretary of State to be representative of harbour authorities throughout the United Kingdom and a body appearing to him to be representative of the owners of vessels throughout the United Kingdom.
      (3) Where the panel make a determination under subsection (1) above then, subject to any agreement to the contrary between the parties and to the effect of any subsequent determination under this section—

      (a) on and after the date on which the determination is made any relevant direction issued before that date shall have effect with the substitution for any inconsistent provision of a provision in the terms determined by the panel; and

      (b) any relevant direction issued on or after that date shall contain a provision in those terms.

      (4) Subject to the provisions of this section, the Secretary of State may by regulations make such provision as he thinks fit as respects the referral and determination of disputes under subsection (1) above and such regulations may, in particular, provide that the expenses of such referrals and determinations are to be borne by the Pilotage Commission or by such other person as the Secretary of State thinks fit.
      (5) The preceding provisions of this section shall cease to have effect on such date (not being earlier than the expiry of the period of three years beginning with the appointed day) as the Secretary of State may by order prescribe, but no such order shall affect the provisions of any pilotage directions continuing in force at that date.'.
      Mr. Thornton: It is acknowledged that at present most harbour authorities normally have to consult the General Council of British Shipping and sometimes the pilotage authority before making or amending regulations regarding the movement and berthing of ships. It is also acknowledged that under the present pilotage law, the

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      Pilotage Commission has a duty to consult those persons who are likely to be affected when they fulfil their function of reviewing pilotage areas and non-compulsory areas, with an ultimate right of objection to the Secretary of State. Those duties, to consult both specifically and generally the General Council of British Shipping, really belong to an age long gone when British shipping flourished and when shipowners were based in most major ports and could be identified. That is not the case today.
      British ships using British ports represent, sadly, only a very small percentage of all ships using British ports, and there are fewer British shipowners with any local base.
      The Green Paper—this theme is repeated in the White Paper—tells us:
      "The statutory framework and administration of pilotage should he simple, with responsibility for decisions resting at the local level as far as possible, to take account of the differing navigational hazards in different harbours."
      In Committee in the other place, the Minister said:
      "In addition, to give my right hon. Friend the power to override the decisions of the competent harbour authorities in this area would represent a serious dilution of the responsibility for pilotage which it is the intention of the Bill to place fairly and squarely on the shoulders of the competent harbour authorities…As in the case of harbour authorities' responsibility for the safety of navigation, the responsibility for pilotage would be laid unequivocally on the harbour authorities…We would immediately be back in these sterile debates which have characterised the existing system, with local issues being referred up to the national level and being bedevilled by national arguments. —[Official Report, House of Lords, Public Bill Committee, 9 December 1986; c. 15–16.]
      It has been said that the Bill is designed to simplify the statutory framework and administration of pilotage. In a Bill designed to place responsibilities for pilotage fairly and squarely on the shoulders of the local competent harbour authority, surely it is an anachronism to perpetuate a consultation process that belongs to another age. Therefore, on that score, it is unnecessary.
      Mr. Moate: Is my hon. Friend going so far as to suggest that the users of a port have nothing to contribute by way of their experience or knowledge regarding what should or should not be the pilotage requirements of a particular area?
      Mr. Thornton: I am not saying that, nor am I responsible for the drafting of the Bill. My hon. Friend will appreciate that I am profoundly unhappy about many parts of the Bill. However, I am dealing with the Bill as it stands and accepting the reality of the situation. I am seeking to find an equitable course to steer between what the Government are seeking to achieve in the Bill and what I believe is a proper course regarding the competent harbour authorities' future responsibilities for pilotage areas.
      I find it odd that we should have a particular provision for a special group in the Bill when, for the reasons that I have suggested, it no longer seems relevant. The Minister has said that evidence has shown that such involvement leads to "sterile debates". Such a consultation process has contributed in no small measure to the destruction of the present system.
      Mr. Moate: I was directing my inquiry to my hon. Friend's first amendment, in which my hon. Friend asserts that there should not be even the necessity for consultation with the regular users of a port. In that sense, is my hon.
      540
      Friend saying that he does not believe that regular users of the port have anything to contribute to the consultative process?
      Mr. Thornton: If my hon. Friend had listened to what I said, he would know that the answer to that is no. I do not believe that regular users should not be allowed to contribute. Clearly they have something to say. Why has the General Council of British Shipping been singled out in this respect? I believe that that is unnecessary.
      I have al ready said that pilotage is essentially a local matter and that consultation should be a local level only. I believe that pilotage areas—my hon. Friend the Member for Faversham (Mr. Moate) discussed this when we debated amendment No. 1—are best determined at local level. Indeed, they have grown up over the years as a result of custom and practice and with regard to what is necessary in the particular area.
      Under the terms of the Bill it is possible for a competent harbour authority to decide to change its pilotage area. It can do so in an almost arbitrary fashion. I believe that there should be a local input, which may well include the type of port users referred to by my hon. Friend the Member for Faversham and would certainly include those local authorities that have coastal waters that may be affected by a change of pilotage areas and boundaries. Coastal authorities may face the prospect of an oil spillage or spillage from a ship carrying chemicals—there are some strange cargoes carried around our coasts at the moment.
      The prospects of environmental pollution, damage or disaster are not matters that any responsible coastal authority can lightly contemplate, nor should they be excluded from any consultation process. They have the right to be consulted if a competent harbour authority decides to change the pilotage area. It is clear that the public have a vital interest in the safety of navigation in port areas. They have an interest that can be satisfied by including the amendment in the Bill.
      Mr. Wallace: The group of amendments that we are discussing contains new clause 1 in my name and the names of my hon. Friends. I shall speak to that new clause later.
      First, I should like to comment on some of the remarks made by the hon. Member for Crosby (Mr. Thornton). I certainly accept much of what he said about the involvement of the public and of interests going beyond those mentioned in the clause as it stands. I do not agree with his suggestion that the owners of vessels that customarily navigate an area should be excluded. As users, they clearly have a very direct interest in the area and no doubt they have considerable expertise. The important thing is that they customarily navigate the area, going in and out of the harbour. If they have done that for many years, they will have something worthwhile to contribute. It would be regrettable if such people were not statutorily involved.
      The purpose of the new clause is to provide a safeguard against the imposition of compulsory pilotage on ships navigating within harbour limits where at present compulsory pilotage does not apply. In discussing the previous set of amendments the Minister made a concession to people with yachts. Perhaps he should consider extending this concession to the many small

      541
      coastal vessels and small cargo ships that trade along our coasts and which up to now have not been subject to compulsory pilotage directions.
      We are talking about making provisions that would allow the owners of such ships to be involved in an arbitration procedure if they were dissatisfied with the outcome of negotiations or consultations between the competent harbour authority and themselves. On the face of it, an exemption for ships rather than for masters—this is in clause 8—may look like something that has to be justified. The first ground on which I seek to justify it is that the practice of exemption existed even before the Pilotage Act 1913 was enacted and there does not appear to be any evidence that that has in any way impaired safety over that long period.
      We are also talking about ships that regularly ply the coast and use harbours. Obviously, the masters of such ships use the harbours. There are many harbours, and it is almost impossible to suggest that a master should be allowed an exemption certificate for each of the harbours that he has to navigate in the course of a year.
      A further important consideration is that cost of pilotage for a fairly small ship can be high. Some estimates put it as high as 30 per cent. of the entire voyage revenue. We have heard many complaints over recent months about the increasing problems that the British merchant fleet is facing. These ships are under the British flag, and to put another imposition on them, in some cases perhaps as much as 30 per cent. of their entire voyage revenue, would be seen by many people as another hurdle to be overcome and another pressure contributing to the diminution of the British fleet. The new clause proposes that there should be some form of arbitration, and the scheme of arbitration suggested is the one that was originally in clause 5 before it was amended. The new clause would probably pass the legislative test and be a competent provision. I hope that the Minister will give serious consideration to that, because a competent harbour authority would effectively have a monopoly and be able to impose compulsory pilotage in the event of a disagreement.
      All that we ask and all that the new clause seeks is that, where disagreements exist and exemptions have not been forthcoming, there should at least be some independent arbitration to resolve such matters. I hope that the Minister will respond in positive terms.
      9.30 pm
      Mr. Peter Griffiths: I find some merit and attraction in new clause 1. I rise to seek clarification and to ask about the effects of amendments Nos. 34, 83 and 36 on the procedures that would follow subsequent to a decision by a competent harbour authority to extend the powers of compulsory pilotage.
      There appears to be a strange anomaly in that if the competent harbour authority wishes to extend compulsory pilotage outside the harbour area it has no direct powers to do so, but must seek a harbour revision order which, under the Harbours Act 1964, as I understand it, is granted by the Secretary of State and is subject to an appeals procedure. Therefore, the owners of vessels that are affected by this and that will be affected in cost terms by the imposition of compulsory pilotage would have a
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      straightforward appeals procedure and the ability to object to someone who was not a concerned party with the making of the order.
      However, oddly, when the competent harbour authority seeks to extend compulsory pilotage within the harbour, the Bill provides for consultation with the owners of vessels and other persons who carry on harbour operations. I am sure that that is valuable, but it appears to be markedly less helpful to the operators of vessels than are the provisions that apply outside, where there is a third and independent party, the Secretary of State. After all, the right to be consulted by a competent harbour authority, which is itself already committed to extending the powers of compulsory pilotage, does not seem to confer much opportunity on the operators of vessels to object to such an order.
      New Clause 1 may well get round that by providing a system for arbitration which appears to be more fair. However, before deciding my attitude to the new clause and, indeed, to the amendments that have been tabled by my hon. Friend the Member for Crosby (Mr. Thornton). I should like the Minister to explain why he considers it essential that we have a system of appeals outside the harbour area, whereas we only have consultation within the harbour.
      Dr. Godman: I have some sympathy with new clause 1. However, I must express some reservations about amendment No. 34 because it seeks the deletion of subsection (4)(a) which refers to
      "the owners of vessels which customarily navigate in the area to which the proposed direction would apply."
      There is no mention of the General Council of British Shipping. I think that that is what the hon. Member for Crosby (Mr. Thornton) said in response to an intervention by his hon. Friend the Member for Faversham (Mr. Moate).
      My reservation is that such interested parties have a right to be consulted. Only today I received a letter from Captain Leitch, director of J. and A. Gardner and Co. Ltd. shipowners in Glasgow, which refers to the wide experience of his firm in passages between Cairnryan and Faslane on the Clyde. Such a firm should be consulted by the relevant competent harbour authority, but this amendment would deny it that opportunity.
      Incidentally, Captain Leitch seeks to discipline me for misleading the House recently. He refers specifically to my reservations about this amendment and states:
      "You stated that no vessel of over 500 tonnes can proceed along the channel past the entrance to the Holy Loch without a pilot because of stringent local regulations."
      This is where his company's experience and knowledge comes in—
      "This is totally misleading and incorrect as we have vessels at present whose Masters/Mates hold pilotage certificates trading every day from Cairnryan to Faslane."
      I am pleased to put Captain Leitch's stricture on the record because I did not mean to mislead the House. His firm has years of experience of navigation on the Clyde, to such an extent that its captains and mates have exemption certificates.
      I have listened with great sympathy to many of the speeches of the hon. Member for Crosby tonight, but such a shipping company has every right to be consulted under the clause. Captain Leitch continues:

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      "The regulations for this area state that any vessel over 100 tonnes requires a pilot but the Master/Mate of such a vessel can also hold a pilotage certificate to cover the upper reaches of the River Clyde."
      Firms with that sort of everyday involvement in the traffic on the River Clyde cannot be denied consultation.
      Mr. Robert Hughes: I congratulate my hon. Friend on being so honest about misleading the House, but he is being rather hard on himself. What he said was absolutely correct: a vessel would not be allowed to ply without a pilot. The company has assumed the pilot to be an external pilot, but providing the master has a pilot's certificate, he is the pilot.
      Dr. Godman: As always, my hon. Friend has shown his innate kindness and courtesy, and I am grateful for it.
      Without labouring the point, shipping firms that use the Clyde, the Forth, the Humber, the Thames, the Dee or the Don on a regular basis must have some recourse to consultations with competent harbour authorities. I hate to say this, but in this case the hon. Gentleman has sailed into danger with this amendment.
      Sir Paul Bryan (Boothferry): I support the hon. Members for Orkney and Shetland (Mr. Wallace) and for Greenock and Port Glasgow (Dr. Godman) on the necessity to consult competent shipping companies about this matter.
      I should like to report to the Minister a slightly more optimistic situation under the Bill on pilotage on the Humber. At present pilotage is compulsory throughout the Humber district. That does not mean that every ship must take a pilot. Certain classes of small ships are exempt from compulsion and exemption certificates are available to some masters who navigate frequently in the district and who pass an examination of their competence in local knowledge.
      Associated British Ports, which is the competent harbour authority there, will be seeking to preserve this principle of compulsory pilotage for all but the smallest vessels. However, we believe that, with the possible exception of vessels carrying dangerous and hazardous cargoes, many ships which regularly trade in the Humber should be able to qualify for certificates. It will be necessary for masters to pass an examination in competence and local knowledge, and some proficiency in the English language is obviously required.
      On Second Reading I pointed out how highly successful the wharves on the Trent and the Humber are. Some of these suggest there is no need for compulsory pilotage downstream from Hull since, in contrast with the higher waters, the navigation is comparatively straightforward. Therefore this argument is put forward by some of those using Goole, Gainsborough and so on. They will obviously be consulted, but at the end of the day I do not think that the harbour authority is going to be able to let up much on its side.
      Mr. Moate: I am sure that those affected will be grateful for the assurances that my hon. Friend is relaying to them, but the point of the new clause, as has already been mentioned, is that the port authority should not be judge and jury in these matters. If, for example, ABP or any other port authority were to seek to extend compulsory pilotage to smaller vessels, is my hon. Friend saying that it is right that that authority— ABP in this particular case—should be judge and jury?
      Sir Paul Bryan: I am reporting on the situation as it now and, as almost complete compulsory pilotage operates on the Humber now, any change would be in the other direction altogether, so I do not think that there are great fears.
      We must be so cautious on the lower Humber—every hon. Member has his own river to think about—because of the very wide variety of vessels there. As well as the general run of cargo vessels there are numerous tankers carrying gas and oil products, and there are passenger ferries. Of course, some of the passenger ferries do have certificates. The speed of vessels, as well as their size and type, varies tremendously, and then there is the variety of traffic in the presence of substantial petro-chemical installations. All these things make this area a dangerous one, although so far it has been a safe one.
      The greater difficulty ahead of us is that now the wharves are going to be, shall I say, under the authority of the harbour authorities. They think that they are going to have very much less flexible arrangements than they have been used to. These arrangements are very important indeed to these wharves. It is the duty of the harbour authority now that it is in charge to preserve both the flexibility and the safety.
      Mr. Moate: I support fundamentally the principles of this legislation, but there is a sense of disappointment that we have not been able to achieve a certain number of changes that would improve it somewhat. I suspect that I am not alone in feeling somewhat frustrated by the procedures that we are following at this time. I do not think that the House of Commons is ever particularly happy when it is playing second fiddle to the other House. That House has worked very hard on this legislation, but it does mean that by the time it gets to us there is almost a sense of having exhausted every opportunity of lobbying the Minister and seeking concessions. Furthermore, taking the procedure on the Floor of the House and taking all stages in a few hours means that there is very little chance of being able to persuade the Minister, by the force of argument or perhaps even the weight of numbers, to make a concession even at a later stage, because the later stages this evening are rather academic.
      Mr. David Harris: Would my hon. Friend note that on the first Division there was a great flurry in the Chamber and the Whips were sent all over London to bring Members back? Does he not take some heart from that?
      Mr. Moate: I do.
      My hon. Friend the Member for Harwich (Sir J. Ridsdale) has established an even greater reputation for rebellion and for causing worry on the Government Front Bench. Alas, even then the Government had a majority of about 40 on the amendment while in Standing Committee they might have had a majority of only four. That concentrates Ministers' minds more acutely than this evening's proceedings.
      9.45 pm
      Amendment No. 34 and the amendments that accompany it illustrate my point. I believe that we have a strong case for at least an appeal procedure in the early stages of this new legislation. I suspect that the Minister has only to say no and that will be the end of the matter. We will not be able to squeeze anything out of him and we

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      will get no concessions. A vote will result in a substantial Government majority. That is the way of life and what faces us at the moment. However, that is not the best way to carry this legislation through.
      I hope that my hon. Friend the Minister will listen carefully to our arguments and bear in mind how many hon. Members have spoken tonight in support of the proposition that here should be some appeal broadly against the imposition of new compulsory pilotage directions, at least in the early years. If a competent harbour authority at some time is unreasonable—and, in the nature of things, local authorities and harbour authorities can be unreasonable—and imposes byelaws which some shipowners consider to be unreasonable, those shipowners will go to the Minister and ask what they can do because the harbour authority is imposing compulsory pilotage on small vessels going to that port and the costs are threatening to put the owner out of business. What can the shipowner do? The shipowner will ask the Minister because he believes that the Minister has given monopoly power to that harbour authority.
      What will the Minister say? He will say, "Well, there is a consultation requirement in the Act." That is all very well, and consultation is very helpful. However, if consultation has taken place and the users claim that the action is unreasonable, yet the harbour authority still introduces the new regulation imposing pilotage direction, the Minister will say, "I am very sorry. Ultimately that port will learn the folly of its ways and business will be lost." However, that is no consolation to the shipowner who in the meantime may have gone out of business or suffered a loss of trade. After all, a shipowner cannot switch from one port to another. He must take the goods where the shipper or geography dictates that they should be taken.
      There is no appeal procedure in such circumstances. I cannot understand why my hon. Friend, representing a Government who believe in competition, is prepared to give a monopoly power to authorities which might not always behave reasonably, without any recourse or right to appeal. New clause 1 contains a sensible and fair arrangement, at least for an interim period. I am very disappointed that we have seen no sign that the Minister is prepared to give any ground on that.
      We want clear responsibility transferred to the harbour authorities and we want it to be taken out of the area of governmental decision. I agree with those aims. However, we are now moving into a new era. We have conceded temporary arbitration procedures for pilots. Is it not reasonable that we should provide temporary transitional arbitration or appeal procedures for shippers or shipowners entering those ports? I would have thought that that was eminently reasonable. However, we have had no sign of any concessions. I am very disappointed about that.
      I do not think that there is an awareness by my hon. Friend—and I am sure that this is unintentional on his part — of the battles that many of those shipping companies have had to endure to survive. The sheer burden of costs makes it exceedingly difficult for many shipping companies to survive, especially those operating the smaller coastal vessels. Those companies have used tremendous initiative and cost-cutting techniques to remain in business. If an unreasonable port authority
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      imposed pilotage requirements on smaller vessels, some of those shipping companies could be put out of business at a time when we are all desperate for our Merchant Navy to survive and, indeed, expand. I do not think that my hon. Friend the Minister has made any helpful move to assist companies that are worried about the possibilities of having unreasonable burdens imposed on them. I hope that my hon. Friend can reassure me that my fears are misplaced. He should find some way of providing reassurance.
      Mr. James Couchman: Mine will be perhaps the briefest contribution because much of what I want to say has been eloquently expressed by my hon. Friends the Members for Faversham (Mr. Moate) and for Portsmouth, North (Mr. Griffiths) who put a reasonable case for the setting up of an appeal procedure. Consultation is one thing: appeal is another. The Bill is not fair and equitable in that respect.
      I talked today with a shipowner who said that perhaps 90 per cent. of the Bill is right, but there is still an unknown quantity. This measure dramatically changes the position of pilotage harbour authorities. There should be an appeal procedure for at least a temporary trial period while the legislation settles down. I should like my hon. Friend the Minister to give a concession in the direction of the new clause tabled by the hon. Member for Orkney and Shetland (Mr. Wallace).
      Mr. Michael Spicer: My hon. Friend the Member for Faversham (Mr. Moate) was a little unfair. We have been giving away concessions like confetti. The thrust of the Government amendments is that they have conceded various points raised by hon. Members. My hon. Friend the Member for Faversham was particularly punchy in his criticisms of this aspect of the Bill, although I am grateful for the fact that he did so from a basic position of supporting the thrust of the Bill.
      The legislation is by no means lopsided and unfair to the shipowner. We are dealing with one aspect of the Bill — compulsory pilotage — but, when we deal with exemption certificates, it will be argued that we are being far too hard on the pilots because we are introducing arrangements whereby exemption certificates must be issued so that safety and other factors can be guaranteed. Under the compulsory pilotage arrangements, shipowners will also have an appeal procedure which can consider charging, for instance. The Bill is by no means lopsided and unfair, as my hon. Friend the Member for Faversham described it.
      I come to the point raised by my hon. Friend the Member for Portsmouth, North (Mr. Griffiths). The distinction between the consultation required within the harbour area and outside it springs from the fact that within the harbour area the competent harbour authority is already the authority responsible for safety and other navigation factors. We believe that consultation is appropriate. If the competent harbour authority aims to go outside the harbour area in terms of compulsory pilotage, it should be subject to an appeals procedure, and the procedures of the House of Commons, should that become necessary.
      Amendment No. 34 removes the requirement on competent harbour authorities to consult the shipowners who will be directly affected by the arrangements that they make for compulsory pilotage. A harbour authority is

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      always required to consult shipowners in the exercise of its other functions in relation to safety of navigation, such as the power to direct the movement of shipping in its harbours. I cannot see any serious case for not requiring the competent harbour authority to consult the shipowners about the introduction of compulsory pilotage.
      The Government believe, however, that the new clause proposed by the hon. Member for Orkney and Shetland (Mr. Wallace), and supported by others, goes too far in the other direction. It would apply an arbitration procedure to any dispute that arose between the competent harbour authority and the port users about a pilotage direction introducing compulsory pilotage. The fundamental principle of the Bill is that the final decision is the clear responsibility of the competent harbour authority once it has carried out consultation. There is an argument about that, but the responsibility has to rest somewhere.
      I do not believe there is a case to be made for wider consultation under amendment No. 36. It does not seem sensible to write in a statutory right to consult bodies or groups that lack any knowledge of navigational safety. There is no similar obligation to consult about the exercise of a harbour authority's other functions, and there is no such obligation in the existing legislation on pilotage. For those reasons, I ask that this amendment be withdrawn or rejected.
      Mr. Thornton: I beg to ask leave to withdraw the amendment.
      Amendment, by leave, withdrawn.
      Amendment made: No. 35, in page 7, line 41, leave out `vessels' and insert `ships'.—[Mr. Michael Spicer]
      Mr. Thornton: I beg to move amendment No. 37, in page 7, line 46, leave out subsection (5) and insert—
      `( ) A competent harbour authority shall have jurisdiction for the purpose of pilotage over the area which immediately before the appointed day was a pilotage district which included the area of that authority.
      ( ) A pilotage direction shall not specify an area other than an area which immediately before the appointed day was a pilotage district unless a harbour revision order has been made under section 14 of the Harbours Act 1964 or, in Northern Ireland, a harbour order has been made under section 1 of the Harbours Act (Northern Ireland) 1970, to alter the limit of the area in respect of which the direction is to apply.
      ( ) Schedule (Altered Areas) shall have effect in relation to harbour revision orders under subsection ( ) above.'.
      The First Deputy Chairman: With this it will be convenient to discuss amendment No. 82—schedule—
      'ALTERED AREAS
      1. Where a harbour authority, which proposes on or after the appointed day to direct that pilotage shall be compulsory for ships navigating in an area other than an area in which pilotage is compulsory by virtue of an order under section 9(1)(i) of the Pilotage Act 1983 applies before that day for the making of the harbour revision order—

      (a) paragraphs 3 to 5 of Schedule 3 to the Harbours Act 1964 (procedural requirements for making harbour revision orders) shall not apply;

      (b) before making the order the Secretary of State shall consult such persons as appear to him to be affected by it; and;

      (c) if the draft order extends the limits of the authority's jurisdiction into the area of another harbour authority's jurisdiction and any person consulted by the Secretary of State under paragraph (b) above objects to the making of the order the Secretary of State may modify the order so that the limits of the authority's jurisdiction do not extend into that of the other authority.

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      (d) after the making of the order the direction shall apply to the area within the authority's limits of jurisdiction as extended by the order, notwithstanding that the order is not yet in force.'.

      Mr. Thornton: This amendment on the theme of safety in our coastal waters is very important and will ensure that pilotage districts and consultative procedures are complied with. These procedures are outlined in the consequential amendment before schedule 1, Altered Areas. The effect of the Bill as drafted is to limit compulsory pilotage to the areas presently defined as port areas or parts of such areas. In some cases this will mean a contraction of such areas which could leave sensitive and navigationally hazardous parts of our coast and estuaries unguarded, notably the Thames and Mersey estuaries. Pilotage services will not be available where ships first begin to look for them. That has been a major criterion whenever pilotage legislation has been considered. In days gone by this was the most sensible criterion because the lack and fallibility of navigational aids were factors which are not of real relevance today.
      But the criterion is as valid today as it ever was. The size of ships and in particular their draught, which when entering some ports can be 70 feet, nearly 12 fathoms, or more; the nature of some of the cargo carried and the consequences of an incident involving such ships; the manning standards, both in a qualitative and numerical sense; and the increasing commercial pressures that are employed—this could well be a recipe for disaster. The incompetent and the foolhardly—as we see all too often in incidents around our coast — will be tempted, especially in bad weather, when navigation in shallow enclosed waters is at its most difficult and proper or alternative pilotage services will not be available, to navigate their vessels into areas where their skill, experience and local knowledge will be wholly inadequate.
      The Bill makes provision for a competent harbour authority to be able to propose to extend the area in which pilotage should be compulsory outside its harbour limits, providing that it is an area in which pilotage is presently compulsory, and for that to be effected on the appointed day. It will be done by means of a modified harbour revision order procedure, which has to be by order, and the Secretary of State, before refusing, approving or amending same, has to consult such persons as appear to him to be affected by it. All this will take time, because the competent harbour authorities will be taking on new responsibilities which will require a great deal of consideration. Yet the Bill——
      It being Ten o'clock, THE FIRST DEPUTY CHAIRMAN left the Chair to report Progress and ask leave to sit again.
      Committee report Progress.

      BUSINESS OF THE HOUSE
      Ordered,
      That, at this day's sitting, the Pilotage Bill [Lords] may be proceeded with, though opposed, until any hour. —[Mr. Neubert.]

      Pilotage Bill [Lords]
      Again considered in Committee.
      Question again proposed, That the amendment be made.
      Mr. Thornton: Yet the Bill in clause 33(3) puts a minimum period of only nine months between the passing

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      of the Act and the coming into force of part I which includes the appointed day. I suggest that this is not enough time. According to the Green Paper,
      "Our modern pilotage service is second to none in the skills deployed and the preparedness of pilots to meet and serve the ships using our ports".
      It seems strange that this well proven system is to be more or less destroyed and is to be retained only through a bureaucratic consultative procedure.
      Our amendment is designed to ensure that the present pilotage areas are retained and can be changed only through the modified harbour revision order procedure outlined. This would give proper time for due consideration of the important matters and for the necessary local consultation to take place. I believe that it is absolutely imperative that we do not allow a position to arise whereby existing compulsory pilotage areas can be wiped out by the Bill on the appointed day without consideration. It would be inconceivable if pilotage around our coasts was to be inhibited without proper and adequate consideration. This ties in very much with my earlier remarks about the responsibility of hon. Members and of the Government for seeing that safety of navigation in our waters is paramount. I believe that the amendment would go a long way to ensuring that.
      Mr. Michael Spicer: We dealt with this matter in detail earlier when discussing amendments Nos. 1, 2, 4, and 45 which were tabled by my hon. Friend the Member for Harwich (Sir J. Ridsdale). As I said then, we believe that it would be wrong to take existing pilotage boundaries as a starting point for the new regime.
      The only additional point I should like to make is that the competent harbour authorities are already responsible for other safety matters in their ports. It is logical and proper that they be trusted to impose a safe pilotage regime. Of course, the Bill provides a means by which a competent harbour authority can readily provide services beyond its existing harbour limits if that is necessary. That should meet the worries about hazards to navigation beyond those limits that my hon. Friend has raised.
      For that reason and the reason I gave earlier, I ask that the amendment be withdrawn.
      Mr. Thornton: I have listened carefully to what the Minister has said on this and the earlier amendments.
      For the reasons which we expressed in the first debate, I feel that nothing in the Bill, nothing as presently drafted and nothing that the Minister has said convinces me that we are not entering troubled waters with regard to pilotage areas.
      I will therefore press the amendment to a Division.
      Amendment negatived.
      Clause 7, as amended, ordered to stand part of the Bill.

    Clause 8

      PILOTAGE EXEMPTION CERTIFICATES
      Mr. Thornton: I beg to move amendment No. 38, in page 8, line 11, leave out 'shall' and insert 'may'.
      The Chairman of Ways and Means (Mr. Harold Walker): With this it will be convenient to take Government amendment No. 39 and amendment No. 40, in page 8, line 42, at end insert—
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      '(4A) A competent harbour authority may, on granting a pilotage exemption certificate, restrict the use of that certificate, having regard to the carriage by ship or specific goods or substances which are reasonably believed to be dangerous or harmful.'.
      Mr. Thornton: This amendment refers to exemption certificates. I should say at the outset that the proposed change—the word "shall" to "may"—is anything but a semantic change. It is a change of considerable importance. It is a change which is in the interests of the competent harbour authorities.
      As the clause is written, the competent harbour authority will not be able to refuse the issue of a pilotage exemption certificate, for whatever reason, provided it is satisfied as to an applicant's skill, experience and local knowledge and, where it appears necessary that the applicant's knowledge of English is sufficient. It will not be able to exercise any discretion, no matter what the circumstances are.
      One of the effects of the amendment will be to expose our coastal and short-sea ships to some of the influences that have already decimated our deep-sea merchant fleet and put British officers' jobs at risk on, for example, ferries which operate around our shores. It will result in an undoubted reduction in efficiency and safety standards. As far as we are aware, British ships are not afforded similar benefits on the Continent, America or elsewhere in the world. Indeed, they are not in the accepted sense allowed to trade on the coast elsewhere.
      In response to this amendment in the other place the Minister, among other things, said:
      "As to allowing CHAs to have discretion in issuing certificates to vessels carrying dangerous cargoes, I do not agree that a CHA should be allowed to restrict the issue of certificates for such vessels since the cargo has little bearing on the competence of the master to navigate his vessel … To allow them to be witheld on any grounds other than the competence of the master or mate involved means that unnecessary costs have to be borne by shipping … The CHA may apply a direction to all ships or to all ships of a certain description and this will allow a CHA to take into account considerations such as whether a vessel is carrying passengers or hazardous cargoes." — [Official Report, House of Lords, 12 February 1987; Vol 484, c.838.]
      I shall deal with those three points in reverse order. First, it is misleading to state, in the context of the issuance of pilotage certificates, that a CHA will be able to take into account considerations such as whether a vessel is carrying passengers or hazardous cargoes. It will not. The use of the word "shall" removes any discretion in the matter.
      Secondly, there are many grounds to be considered other than the competence of the master. For example, in an economic sense, in the smallish ports where there is an ongoing but quite irregular demand for pilotage services, it may be that a certain volume of work is required for pilotage so that it is not prohibitively expensive for the few ships requiring it.
      On practical grounds, there are many ports where the mix of ships is very large, varying from fishing vessels to very large crude carriers, and where the channels are narrow. For a port to operate efficiently, ideally ships must not be delayed. Large vessels need so much room to manouevre and are so slow to respond to initiated actions that it is frequently beyond the comprehension of small ship masters. To have to issue pilotage exemption certificates under such circumstances may marginally reduce the cost for the small ships, but will reduce the overall efficiency of the port and possibly increase the

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      costs for the large ship. That is so because in this case there would he no alternative for the harbourmaster but to use his negative powers and to stop either the large ship from moving or several smaller ones. That is already happening in some ports where ships are exempted through size, or whatever, from the requirement to take pilots.
      Thirdly, it may very well be that the cargo has little bearing on the competence of the master to handle his vessel. However, because handling one's vessel competently and efficiently in the confines of a port requires full knowledge of the handling characteristics of all the vessels as they interact with each other, when the consequences of an incident on life in the urban areas and the environment are high, the modest cost of a belt and braces attitude is a must. Recent tragedies have demonstrated how familiarity in the marine environment can end in disaster.
      Mr. Roderick Macleod, the chairman of Lloyd's Register of Shipping, said recently:
      "Even if absolute safety were achievable it could not be assumed that the commercial world would be able or willing to accept the cost of achieving it."
      On some ships, masters may serve continuously for six months or even a year without enough officers. They may work 12 hours to 16 hours a day. That leads to tiredness, and competent harbour authorities should have the ability to exercise discretion to take into consideration the manning levels on the bridges of ships. The clause as drafted will prevent that.
      Ship regimes can and do become very insular and are rarely if ever the subject of checks. That can quickly lead to bad practices. It is in the interests of the shippers and of the harbour authorities that they should have this authority and discretion, which is denied to them under the Bill. I believe that it is in the interests of everyone connected with pilotage that the amendment be accepted.
      10.15 pm
      Dr. Godman: The amendment should commend itself to the Committee. The applicants for an exemption certificate should be subjected to a tough examination. Such applicants must have what has been called a "reasonable grasp" of English, and must possess local knowledge. How are they to acquire that local knowledge?
      The clause contains other worrying features. The honorary secretary of the Scottish Guild of Pilots wrote to me to express his concern, and that of his colleagues, about the clause. He said:
      "Ship manning continues to be reduced in both numbers and, in some instances, standards, and yet new proposed legislation makes it incumbent upon CHAS to grant exemption certificates to bona fide masters and first mates of any nationality of any ship of any flag provided such persons comply with standards which must not be unduly onerous."
      I believe that those standards should be tough and onerous before a certificate is granted to an applicant. Mr. Harrigan continues:
      "Many masters and first mates have, on arrival in pilotage areas, been on duty for many hours often in adverse weather and are tired and stressed and should not be required to undertake pilotage duties."
      That underlines what was said by the hon. Member for Crosby (Mr. Thornton).
      When there is a dangerous cargo and a competent harbour authority has no real control over the working conditions of masters and mates of vessels—foreign or domestic — the authority should have the discretion to introduce tough standards by which to assess applicants,
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      and the discretion to refuse applicants a certificate when they do not come up to those — rightly tough — standards.
      Mr. Wallace: I wish to speak to amendment No. 40, which stands in my name. It echoes the words of the hon. Member for Greenock and Port Glasgow (Dr. Godman), to the extent that it seeks to substitute the word "may" for "shall", which will allow the competent harbour authorities to take account of some of the dangerous substances that may come into their harbours. That would be welcome, and amendment No. 40 was designed specifically with that purpose in mind. It is clear that in many areas in which exemptions might be allowed there are hazardous substances, such as nuclear waste, oil products and gaseous products, all of which, if something goes wrong, are hazardous to the surrounding community. It is only right that, if a harbour authority is granting an exemption certificate, it should be able to exclude its use in circumstances where the master or mate is in control of a ship which is carrying such substances. It is an important consideration and I hope, somewhat forlornly, that the Minister might be able to respond to it positively.
      Government amendment No. 39 is designed to meet the circumstances which were put to the Minister by the Orkney Islands council. Under subsection (3) it should be possible, when a direction is made, for an exemption certificate to be issed to particular ships in particular areas. Having anticipated the nature of the amendment, I wish to express my appreciation of it.
      Mr. Stott: I said on Second Reading that clause 8 and the exemption certificates caused my right hon. and hon. Friends and I some difficulty. As the clause is constructed, it is unacceptable. I listened with great interest to the hon. Member for Crosby (Mr. Thornton) and I agree with every word that he uttered about the certificates.
      In the form in which the Bill was first drafted, before it went to another place, some or the exemption provisions were even more slackly drawn than they are now. It is perhaps a reflection of my inability to get a grip on the Bill in the short time that I have had available to me that I have been unable to table amendments to the exemption provisions.
      Those of us who have been in this place for a reasonable period will recognise readily that "may" and "shall" amendments often produce filibustering, or at least prolonged debate, but I shall not use that tactic this evening. In this instance I believe that we are right in what we are doing.
      Sir John Biggs-Davison: What are we doing?
      Mr. Stott: If the hon. Gentleman had listened to the hon. Member for Crosby, he would know exactly what we are doing. He has only recently entered the Chamber and now he asks what we are doing. Some of us have been in the Chamber since 6.15 pm discussing many important issues. I think that the hon. Gentleman should be a little less forthright in his sedentary interjections.
      We are discussing whether a competent harbour authority may, on the flimsiest of excuses, grant pilotage exemption certificates. Do we know what we are talking about when we talk about the granting of pilotage exemption certificates? The reality is that masters or mates will be able to bring ships into any harbour or port in the

      553
      United Kingdom, provided that they satisfy some spurious exemption provisions that are encapsulated in the Bill. I do not consider that to be a sound principle.
      In case the hon. Member for Epping Forest (Sir J. Biggs-Davison) does not know, I happen to have had some experience of these matters. For many years I was a quartermaster to pilots as the ships on which I served entered and left the United Kingdom. I was also a quartermaster on ships as they entered and left foreign ports. For a fairly long period I served on a ship that sailed from Liverpool to Montreal. The St. Lawrence river is certainly longer than any river in Britain. There are four pilots on the St. Lawrence river going from the top all the way down to Montreal, and there are pilots who go further down the St. Lawrence seaway and into the great lakes.
      When I kept watch on that river—no matter how many times I went down the same stretch—the pilotage, the directions and the orders from the pilots were different on every occasion, because different activities were taking place on the river; dredging, silting, and so on. The circumstances are constantly changing. Nothing is ever the same on any two occasions. No matter how many times —as a master, a mate or a helmsman—a sailor enters or leaves the harbour, weather and other conditions are always different. It is therefore essential that someone aboard the ship is conversant with the differences obtaining at any given time, and I believe that person should be a qualified pilot.
      As I said on Second Reading, I do not wish to put any obstruction in the way of those who already have exemption certificates. Of course, some people, such as ferry operators who go in and out of harbours every day of the week, should not be inhibited. That regime would continue under the amendment. However, it seems to me — and a qualified pilot would agree — that the Committee should avoid opening it up to any flag and any person.
      If there is no pilot, the shipowners or the port operators may save some money. I assure the hon. Member for Faversham (Mr. Moate) that I am concerned about shipping costs and about the deterioration of the British merchant fleet. But if we really want to save money, we need not do it by introducing this measure. We could save port authorities and shipowners some money by persuading the Government to do away with light dues, which cost the ports and shipping the massive levy of £48 million. Light dues could be paid for through the central Exchequer. It is clear that the Exchequer has a considerable amount to spend, because the Chancellor gave away £3 million in the Budget a couple of weeks ago.
      This is a serious matter. As I have said this evening and on Second Reading, responsible masters and first mates could easily be given exemption certificates to bring ships into United Kingdom ports. Others, however, should not have the exemption as the Bill describes it.
      The tragedy of the Herald of Free Enterprise is on all our minds. In my capacity as the official Opposition spokesman for maritime affairs, I received an unsolicited letter from the wife of the serving master of one of those ferries—not the Herald of Free Enterprise. The letter set out in detail the number of hours that that lady's husband worked when he was on duty. The hours are long and arduous, and in some circumstances could prove dangerous. We may return to that subject if we debate
      554
      another merchant shipping Bill. If that is happening to a British master operating one of our ferries on the Continent, the same conditions could apply to others on ro-ro ships operating between the United Kingdom and the Continent or the Mediterranean.
      I know about the hours, because I worked them. Seamen, masters and mates performing their duties between one port and another can go for literally 24 hours without sleep. Are we going to give exemption certificates to masters who are working under such strenuous conditions when entering and leaving United Kingdom ports? We should not do that. The word "may" should be changed to "shall", because that would strengthen the Bill.
      10.30 pm
      Mr. Michael Spicer: I agree with the hon. Member for Wigan (Mr. Stott) that much of the Second Reading debate focused on pilotage exemption certificates. Therefore, the Committee knows that the Government do not accept that the proposal involves any risk to safety.
      A competent harbour authority has to satisfy itself that the master's skill, experience and, above all, local knowledge are sufficient to enable him to pilot the ship within the authority's harbour. The master must be capable of bringing in the ship as safely as a local pilot. If the competent harbour authority is not satisfied that he can safely do so, it will not issue a certificate. I emphasise that local knowledge is one of the points about which a competent harbour authority is required to satisfy itself. A master will therefore have to visit a port sufficiently regularly to obtain that knowledge before he will be given a certificate.
      Clause 8(5) provides:
      "A pilotage exemption certificate shall not remain in force for more than one year".
      Therefore, a master has to meet those stringent requirements at least every year.
      It has been suggested that foreign masters should be required to take on pilots as a substitute for reserving cabotage. The hon. Member for Wigan stressed that point on Second Reading. However, that would be an ineffective way of discriminating to protect cabotage. One certain consequence is that it would raise the cost of trading in and out of our ports.
      Mr. Stott: That is nonsense.
      Mr. Spicer: The hon. Gentleman says that that is nonsense, but he did not deny on Second Reading that certain costs would be involved. It is a question whether he thinks that the costs connected with that part of the argument would help to reserve cabotage.
      Amendment No. 40 proposes that the use of certificates should be restricted if a ship is carrying dangerous goods. We believe that only in very exceptional circumstances can it be argued that a ship needs both a master who is totally familiar with the port and a local pilot. Cases of that kind are covered by subsection (3), which gives the Secretary of State power to relieve a competent harbour authority of the normal obligation to issue a certificate in exceptional circumstances. Apart from those circumstances, we believe that, if unnecessary port costs are to be avoided, there must be a general obligation on the competent harbour authorities to issue pilotage exemption certificates to masters who meet the requirements that they set for their ports.
      Dr. Godman: Subsection (1)(b) refers to a sufficient knowledge of English. Would applicants be given both an oral and a written examination?
      Mr. Spicer: That would he up to the competent harbour authorities. Their views about testing differ, but in order to meet the statutory requirements they have to satisfy themselves that knowledge of the English language is adequate. How they should test is left to their discretion. I visited Harwich recently, and my impression was that the criteria will be much more strictly examined than they have been in the past.
      Mr. Wallace: Rather than accept amendment No. 40, the Minister said that clause 8(3) allowed the Secretary of State to give directions that excluded the use of exemption certificates. However, my understanding of clause 8(3) is that it relates to unusual navigational hazards rather than to substances carried by vessels. Is that an unreasonable distinction to make?
      Mr. Spicer: Clause 8(33) also deals with dangerous substances. No doubt we shall discuss clause 8(3) in detail shortly. However, I stress that matters are covered both in terms of hazards and dangerous substances.
      Government amendment No. 39 makes it clear that, where the Secretary of State issues a direction to cover unusual hazards in the harbour, the competent harbour authority will still be able to issue certificates if it is satisfied about the master's capability. However, it will not be obliged to do so.
      I ask the Committee to reject amendments Nos. 38 and 40 and to approve Government amendment No. 39.
      Mr. Thornton: I should like to press the amendment to a Division.
      Question put, That the amendment be made:—
      The Committee divided: Ayes 12, Noes 79.

      Division No. 145]

      [10.35 pm

      AYES

      Carlile, Alexander (Montg'y)

      Skinner, Dennis

      Golding, Mrs Llin

      Steel, Rt Hon David

      Haynes, Frank

      Stott, Roger

      Howells, Geraint

      Wallace, James

      Hughes, Robert (Aberdeen N)

      Kirkwood, Archy

      Tellers for the Ayes:

      Nellist, David

      Mr. Malcolm Thornton and Dr. Norman A. Godman.

      Powell, Raymond (Ogmore)

      NOES

      Amess, David

      Eyre, Sir Reginald

      Ancram, Michael

      Fallon, Michael

      Arnold, Tom

      Favell, Anthony

      Ashby, David

      Fenner, Dame Peggy

      Atkins, Rt Hon Sir H.

      Forth, Eric

      Baker, Nicholas (Dorset N)

      Freeman, Roger

      Baldry, Tony

      Goodhart, Sir Philip

      Batiste, Spencer

      Gregory, Conal

      Biggs-Davison, Sir John

      Griffiths, Peter (Portsm'th N)

      Boscawen, Hon Robert

      Ground, Patrick

      Bottomley, Peter

      Hamilton, Hon A. (Epsom)

      Bowden, Gerald (Dulwich)

      Hargreaves, Kenneth

      Brinton, Tim

      Harris, David

      Bryan, Sir Paul

      Hawkins, Sir Paul (N'folk SW)

      Burt, Alistair

      Heseltine, Rt Hon Michael

      Butterfill, John

      Hind, Kenneth

      Cash, William

      Howarth, Gerald (Cannock)

      Colvin, Michael

      Hunter, Andrew

      Cope, John

      Jackson, Robert

      Couchman, James

      Jessel, Toby

      Dorrell, Stephen

      Jones, Robert (Herts W)

      Durant, Tony

      Kershaw, Sir Anthony

      556

      Lawrence, Ivan

      Spicer, Michael (S Worcs)

      Lennox-Boyd, Hon Mark

      Stanbrook, Ivor

      Lloyd, Peter (Fareham)

      Stern, Michael

      Malone, Gerald

      Stevens, Lewis (Nuneaton)

      Marlow, Antony

      Taylor, Teddy (S'end E)

      Maude, Hon Francis

      Thompson, Donald (Calder V)

      Mitchell, David (Hants NW)

      Thompson, Patrick (N'ich N)

      Moate, Roger

      Tracey, Richard

      Moynihan, Hon C.

      Twinn, Dr Ian

      Neubert, Michael

      Waddington, Rt Hon David

      Norris, Steven

      Wakeham, Rt Hon John

      Percival, Rt Hon Sir Ian

      Wheeler, John

      Proctor, K. Harvey

      Wiggin, Jerry

      Rathbone, Tim

      Wolfson, Mark

      Rhys Williams, Sir Brandon

      Yeo, Tim

      Ridsdale, Sir Julian

      Ryder, Richard

      Tellers for the Noes:

      Sainsbury, Hon Timothy

      Mr. David Lightbown and Mr. Michael Portillo.

      Smith, Tim (Beaconsfield)

      Spencer, Derek

      Question accordingly negatived.
      Amendment made: No. 39, in page 8, line 34, leave out subsection (3) and insert—
      '(3) If the Secretary of State is satisfied, on application by a competent harbour authority, that it is appropriate to do so by reason of the unusual hazards involved in shipping movements within its harbour, he may direct that during such period (not exceeding three years) as he may specify, not withstanding that the authority is satisfied as mentioned in subsection (1) above, it may refuse to grant pilotage exemption certificates under that subsection.'. — [Mr. Michael Spicer.]
      Clause 8, as amended, ordered to stand part of the Bill.
      Clause 9 ordered to stand part of the Bill.
      10.45 pm

    Clause 10

      PILOTAGE CHARGES
      Amendment propose: No. 41, in page 9, line 31, at end insert
      `or the ship does not arrive or depart at the notified time,. —[Mr. Michael Spicer.]
      The Chairman: With this., it will be convenient to consider amendments Nos. 42 and 44.
      Mr. Wallace: I wish to speak briefly to amendment No. 42, which seeks to leave out clause 10(3). It is essentially a probing amendment to find out why a vessel which comes into port without a pilot, but under the control of a master or mate who has an exemption certificate, would be charged. Clause 8, which deals with the granting of exemption certificates provides for the covering of the proper administrative charge, which goes with the application of such an exemption certificate. Therefore, it does not seem right that if no use is made of the pilot services, there should nevertheless, be a charge.
      I can understand that an argument may be made that there will be occasions, possible in exceptionally bad weather, when vessels which have a master with an exemption certificate may wish to make use of pilot services. Of course, that service must be available throughout the year and around the clock. However, it appears that there are two categories of users—regular users and occasional users. The occasional users are likely to be in need of pilot services as often as the regular user who has an exemption certificate and who would require it on exceptional occasions. The occasional user has to pay only when he has to make use of the pilot services.

      557
      Likewise, why should that not also be the case for the master or mate with an exemption certificate? An explanation for the charge is required.
      Mr. Peter Griffths: I too should like to query the effect of subsection (3) and, to that extent, I wish to speak in support of amendment No. 42.
      I understand that in other transport matters the Government have sought to root out cross-subsidisation. It is said that those who use the service should bear the cost of it. If there is a social reason why they cannot meet that cost, it should be met from other public funds, and not by other transport users. The effect of clause 10(3) is that a ship with a competent pilot on board, whether the captain or the mate who holds an exemption certificate, shall still be subject to a charge. That is a form of cross-subsidisation which I would have thought was anathema to the Government. For that reason, I find it difficult to understand why my hon. Friend the Minister is not leaping to his feet to accept the amendment.
      Mr. Michael Spicer: There are two schools of thought on this and we do not have a dogmatic view. First, there is the cost of issuing exemption certificates regularly and, secondly, such ships benefit from the improvement in safety which a well-run pilotage service means for the ports. Therefore, on balance we believe that they should share the cost.
      Amendment agreed to.
      Clause 10, as amended, ordered to stand part of the Bill.
      Clause 11 ordered to stand part of the Bill.

    Clause 12

      INFORMATION AND DIRECTIONS AS TO JOINT ARRANGEMENTS
      Amendments made: No. 46, in page 11, line 12, after `authority', insert—
      `(cc) there is any person who carries on harbour operations in a harbour (within the meaning of the Harbours Act 1964) which is not the harbour of a competent harbour authority and access to which is customarily available through the harbour of a competent harbour authority; or'.
      No. 47, in page 11, line 19, after '(c)' insert `, (cc)'. — [Mr. Michael Spicer.]
      Clause 12, as amended, ordered to stand part of the Bill.

    Clause 13

      RESOLUTION OF DISPUTES BETWEEN AUTHORITIES
      Amendments made: No. 48, in page 11, line 49, after '(c)', insert `, (cc).'
      No. 49, in page 12, line 1, leave out 'in question' and insert
      'of the competent harbour authority'.— [Mr. Michael Spicer.]
      Clause 13, as amended, ordered to stand part of the Bill.
      Clauses 14 to 16 ordered to stand part of the Bill.

    Clause 17

      RIGHT OF AUTHORISED PILOT TO SUPERSEDE UNAUTHORISED PILOT
      Sir Julian Ridsdale: I beg to move amendment No. 51, in page 14, line 14, leave out 'a ship or'.
      The Chairman: With this it will be convenient to take the following amendments: No. 52, in page 14, line 16, leave out 'a ship or'.
      No. 53, in page 14, line 21, at end insert
      'and the authority, in determining whether or not to make a direction under paragraph (b) above in respect of ships of any description, shall have regard in particular to their size and the nature of the cargoes they carry or may carry'.
      Sir Julian Ridsdale: These amendments seek to ensure that any direction given by a competent harbour authority with regard to movements within its harbour must take account of the size of the ship to which a direction applies and the nature of its cargo. That will place an obligation on CHAs to give weight to safety consideration when issuing directions which allow an unauthorised pilot to take charge of a vessel when shifting within the port.
      Mr. Michael Spicer: These amendments are unnecessary. The provisions of the Bill already allow for CHAs to make the necessary directions only in respect of some ships if they wish. The term "ship of a specified description" is wide enough to allow them to consider the size of ship and the nature of its cargo. That meets the anxiety behind my hon. Friend's amendment, so we would ask him to withdraw it.
      Sir Julian Ridsdale: I beg to ask leave to withdraw the amendment.
      Amendment, by leave, withdrawn.
      Clause 17 ordered to stand part of the Bill.
      Clauses 18 to 23 ordered to stand part of the Bill.

    Clause 24

      ABOLITION OF PILOTAGE AUTHORITIES
      Amendments made, No. 54, in page 18, line 8, leave out `the relevant' and insert 'any'.
      No. 55, in page 18, line 9, after 'authority', insert
      `which in the opinion of the Pilotage Commission have been used, have accrued or, as the case may be, have been incurred exclusively in connection with its pilotage functions'.
      No. 56, in page 18, line 13, leave out from 'vesting' to 'in' in line 14.
      No. 57, in page 18, line 16, leave out from 'itself' to end of line 18 and insert
      'of any property rights and liabilities of the pilotage authority which, in the opinion of the Commission, have been used, have accrued or, as the case may be, have been incurred exclusively in connection with the authority's pilotage functions;
      (b) make may similar provisions as to any such property rights and liabilities which, in the opinion of the Commission have been used, have accrued or, as the case may be, have been incurred substantially but not exclusively in connection with those functions; and'
      No. 58, in page 18, line 22, leave out 'relates to service' and insert
      'calculated by reference to remuneration paid and service given'.
      No. 59, in page 18, line 23, at end insert 'or guaranteed'.
      No. 60, in page 18, line 23, at end insert—

      559
      `( ) Proposals submitted under subsection (2) above may include such supplementary and incidental provision in connection with the matters there mentioned as the Pilotage Commission considers appropriate.'.
      No. 61, in page 18, line 28, leave out 'abolished' and insert 'pilotage'.
      No. 62, in page 18, line 37, leave out subsections (7) and (8)
      No. 64, in page 18, line 45, at end insert—
      `( ) Nothing in this section shall require a scheme to make provision for the vesting in a competent harbour authority of any property, rights or liabilities already vested in it in its capacity as a pilotage authority.
      ( ) The Pilotage Commission may require any pilotage authority to furnish it within such time and in such form as the Commission may specify with such information as it considers necessary for the purpose of formulating the proposals to be submitted by it under this section; and any member of the Commission or person appointed by it for the purpose may inspect any books, documents or other records in the possession of the authority relating to any matter in respect of which information is required to be furnished under this subsection.'. —[Mr. Michael Spicer.]
      Clause 24, as amended, ordered to stand part of the Bill.

    Clause 25

      TRANSFER OF STAFF OF PILOTAGE AUTHORITIES ETC.
      Amendment proposed, No. 66, in page 19, line 37, at beginning insert '(a)'. —(Mr. Michael Spicer.]
      Mr. Wallace: The amendments to clause 25 relate to the transfer of the pilot authorities and make provision for the winding-up of the old pilotage authorities. Clause 25(3) states:
      "Such a scheme may make provision for the payment of compensation to staff of pilotage authorities"
      who find themselves out of work or lose their employment as a result of this legislation.
      Fairly generous provision is made for pilots by way of compensation and pensions for those who find themselves out of work. The position is that there "may" be compensation for the staff of the pilotage authorities. There is not the same compulsion in the winding-up of those authorities to provide those who lose their jobs with suitable compensation, especially those people who are over 50. I want to know whether it is the Government's intention that a more proper provision should be made for the staff of pilotage authorities who find themselves affected.
      Mr. Michael Spicer: Certainly the Pilotage Commission will be able to make schemes that involve the employees as well as the assets.
      Amendment agreed to.
      Amendments made: No. 67, in page 19, line 41, leave out from beginning to 'all' in line 42 and insert
      '; and

      (b) without prejudice to paragraph (a) above—

      (i)'.

      No. 68, in page 19, line 45, leave out '(b)' and insert '(ii)'
      No. 69, in page 19, line 49, leave out 'Subsections (4) and (5) above are' and insert 'Subsection (4) above is'.
      No. 70, in page 20, line 32, leave out '(5)' and insert `(4)(b)'.
      No. 71, in page 20, line 35, leave out '(5)' and insert `(4)(b)'.—[Mr. Michael Spicer.]
      Clause 25, as amended, ordered to stand part of the Bill.
      Clauses 26 and 27 ordered to stand part of the Bill.

    Clause 28

      PILOTS' COMPENSATION SCHEMES
      Amendments made, No. 72, in page 21, line 40, after second `to', insert
      'or for the benefit of.
      No. 73, in page 21, line 44, at end insert
      'but were not then employed under a contract of employment by the pilotage authority for that district or any committee appointed by the authority under section 9(1)(e) of the Pilotage Act 1983'.
      No. 74, in page 21, line 45, leave out 'made with' and insert 'offered to'.
      No. 77, in page 22, line 13, leave out 'made with' and insert 'offered to'. —[Mr. Michael Spicer.]
      Clause 28, as amended, ordered to stand part of the Bill.
      Clauses 29 to 33 ordered to stand part of the Bill.

  Schedule 1

    TRANSITIONAL AND SAVING PROVISIONS
    Amendments made, No. 78, in page 26, line 8, at end insert
    'and any order made under section 1(3) or (4) of this Act by virtue of the said section 13'.
    No. 79, in page 26, line 9, at end insert
    `and the area which shall be taken to be its harbour shall be determined accordingly'.
    No. 80, in page 26, line 22, after '(4)', insert '(4A)".
    No. 81, in page 26, line 22, leave out 'that section' and insert
    `section 5 of this Act'. —[Mr. Michael Spicer.]
    Schedule 1, as amended, agreed to.
    Schedules 2 and 3 agreed
    Bill reported, with amendments; as amended, considered.
    Order for Third Reading read. — [Prince of Wales's Consent signified]
    10.59 pm
    Mr. Michael Spicer: I beg to move, That the Bill be now read the Third time.
    There has been a weighty debate on the Bill, especially in the other place, with 22½ hours of debate. The Bill has been amended considerably, the temporary arbitration provision being one that strikes me at the moment. I think all those who have played a tremendous part, including my hon. Friends the Members for Crosby (Mr. Thornton) and for Harwich (Sir. J. Ridsdale), in improving the legislation and making this a good and balanced Bill.
    11 pm
    Mr. Stott: The Minister said that the Bill had had a great deal of scrutiny. It certainly did in the other place, but I am not sure whether it has had adequate scrutiny in this House. On my hon. Friends' behalf, I have to register our disappointment that we were not able to consider the Bill in greater detail upstairs in Committee; instead, it has been debated on the Floor of the House on the day before the Easter recess. I am not sure that we have fashioned a better Bill out of Committee, but, in principle, this measure is worth supporting, and I certainly do not wish to impede its progress any further. I thank my hon. Friend the Member for Greenock and Port Glasgow (Dr. Godman) for his sterling support throughout the debates.
    11.1 pm
    Mr. Thornton: I join the hon. Member for Wigan (Mr. Stott) in saying that the Bill has had a fair run this evening,

    561
    but the debates have shown the need for great scrutiny of its detailed and complicated provisions. I share the hon. Gentleman's view that the Bill would have been better had we been able to consider it in greater detail upstairs in Committee, but it is a better Bill than when it started its passage through the other place. The debate has been important because I have been able to put on record some of my misgivings about the Bill's possible consequences.
    The changes, as far as they have gone, have been welcome. I pay tribute to my hon. Friend the Under-Secretary of State and his colleagues for their co-operation with me in getting the amendments accepted, and to my pilotage colleagues. It is not all gloom. It is a very much better Bill than when it started its passage. That is due in no small measure to that co-operation and to my hon. Friend's willingness to listen to our points.
    However, my hon. Friend and my right hon. Friend the Secretary of State will need to watch the legislation carefully. We have heard a great deal from Ministers about assurances—about the fair and equitable treatment of pilots and about safety around our coasts — but the proof of the pudding will be in the eating. We must ensure that the intention of the legislation is carried through. For the first time in pilotage legislation, Parliament has handed over the responsibility for pilotage almost totally to other people. We shall not have future opportunities to consider some of the most important matters that affect our coastal waters.
    As I said on Second Reading, the Bill has had qualified support from pilots. Pilotage reorganisation was long overdue, and that was recognised. We believe that this reorganisation is rather like the curate's egg—good in
    562
    parts. I say unequivocally that pilots will try to make the legislation work, but in no sense will any of the commitment that they have shown in the past be diminished by this legislation. They will continue to offer the quality of service and dedication to the shipping industry that have been the hallmarks of pilotage for as long as I have had anything to do with it, and certainly for many hundreds of years before that. I thank my hon. Friend the Minister. I just hope that many of his assurances will come to pass.
    11.4 pm
    Mr. Wallace: I echo what has been said about the speed with which the Bill has been disposed of in this House. Many of us would have liked to give it greater scrutiny. Many of the debates underlined the technical and detailed nature of the Bill. When we were able to go into detail, it was clear how much better it would have been if we could have had more time for scrutiny, perhaps not least of the early retirement and compensation provisions which did not even get a cursory examination.
    The Minister has given the House many assurances and has expressed expectations that the pilots affected by the Bill will be treated fairly and equitably. We hope that those assurances will be well founded in the light of experience and that the Minister's hopes come to pass. What we have achieved in the Bill is an overdue but worthwhile rationalisation of the pilotage service. It is the hope of everyone that the provisions of the Bill work out successfully.
    Question put and agreed to.
    Bill accordingly read the Third time, and passed, with amendments.

  Opencast Mining

    (Newcastle-under-Lyme)
    Motion made, and Question proposed, That this House do now adjourn. —[Mr. Lightbown]
    11.5 pm
    Mrs. Llin Golding: Profit before people — that is what the Government believe in and that is what the Secretary of State believes in when he approves the British Coal planning application for the High Lane opencast site in my constituency. I was brought up in south Wales and saw the devastation to the environment, the total disregard for the living conditions of the workers and the greed for profit of the coal and iron masters. I learnt to despise the Tories for their arrogance and avarice. I watched the workers struggle, through the Labour and trade union movement, to better living and working conditions and to gain for themselves rights to have a say.
    What has happened to those rights? They have become the farce of planning inquiries, where people who have forgotten the struggle of the workers for better living conditions have become the lackeys of the Tory Government in their bid for self-importance. They have become people who think that dirt, dust, noise and a view of industrial coal heaps are good enough for working people, and that opencast mining of 585 acres in the heart of my constituency is "in the public interest".
    Whose public interest? It is not in the public interest of the people of the borough of Newcastle-under-Lyme. It is not in the interest of 13,000 people who live within about half a mile of the opencast site. It is not in the interest of several hundred homes within a few hundred feet of the site. It is not in the interest of the people of Knutton, of Chesterton, of Silverdale, of Alsagers Bank, of High Lane and of Scot Hay, whose homes encircle the site. Nor is it in the interest of children, yet unborn, on Parksite estate whose fathers work in Silverdale pit, and who will grow up knowing only a view of a massive industrial void from their living room windows.
    That void was described by the inspector as
    "a significant landscape feature which would endure for a long time".
    It will be significant with a surface area of 44 acres and a depth of 65 yards at its deepest point. Twenty years is a long time to have taken from one a pleasant view of green fields and hedges and to know only industrial waste.
    These roads and villages already suffer from heavy lorries, noise, dust and industrial workings, of which my constituency has more than its fair share. Silverdale deep mine and Holditch deep mine, which has a dirt mound, both give noise and dust problems. There are two private licensed mines. There is marl extraction at Cemetery road, at Knutton lane and at Bradwell wood. The Bates wood opencast site covers 370 acres. The Red street opencast site of 132 acres dominates the miners' estate at Chesterton, with workings right up to the garden fences of many houses. That is an estate already suffering from the resultant problem of the sale of houses by British Coal, with structural problems and with landlord problems, and it is further devastated by the discovery that some of the houses have been built on red ash.
    The Government encouraged people to buy their own homes. Even the inspector recognised that the people
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    would have some difficulty and suffer financially if they wished to sell their homes. It is hard luck if people try to do what the Government say—get on their bikes to find a job. Who would buy a house when they read in the inspector's report:
    "Top soil stripping and construction of baffle mounds, will be exempt from noise limitations, and would entail a considerable noise nuisance and represent an undesirable erosion of the quality of the residential environment."?
    Who would buy a house in Black Bank road or the Cheviot close area? They will be only 33 ft and 25 ft away from 200,000 cu m of overburdened mound reaching to a height of 98 ft.
    However, help is at hand. The inquiry proposed a baffle mound at the Cheviot close area to help with the noise problem. Even so, the inquiry accepts that it will not be of much help. In any case, it will involve a visual intrusion problem. If that is not enough, there will be a dust problem. The prevailing westerly winds will most seriously affect the Cheviot close area. In case the Minister thinks that that is just a row of houses, I should say that it is not. It is a large estate of houses which knits in closely with the village of Knutton which is an area of Newcastle-under-Lyme.
    The other area most seriously affected will be Loomer road, east of the over-burdened mounds. That is on the road on which the site traffic will be travelling. It has about 800 houses along its length.
    There was no dispute at the inquiry that the dust could be controlled because of the elevation of the site and the prevailing winds. There was no dispute that noise levels would increase substantially or that blasting would be found unpleasant. However, let us not forget the lorries. The site access at Loomer road will have an estimated extra 98 vehicles a day — 196 movements — for eight years. The people of Loomer road already have an industrial estate along one side of the road. There will be coal haulage lorries at the rate of 120 lorries a day—240 movements a day—with access on to the A34, the main road through Newcastle-under-Lyme. Thank goodness we have half-day working on a Saturday.
    What about the loss of amenities? It was agreed at the inquiry that only 54 acres of the main site could be considered as derelict and in need of treatment. As for the rest of the area, part of the conservation area of woodland at Watermills wood would be lost. The Great Row nature reserve would suffer from the proximity of the intensive operational area. All but seven hectares of the natural revegetated or "wild" areas would be lost and the wildlife driven out. There is a rich and varied animal life. There are 20 species of butterfly, nine species of dragonfly, and a variety of birds, including the relatively rare stonechat and grasshopper warbler. There are mammals, including badgers, and bats, as well as adders and lizards. They will all be driven out in this opencast madness. Twenty seven rights of way will be lost, as will 47 acres of public open space, 68 acres of woodland and miles of hedgerow. The amenity pool at Knutton will be lost and thousands of children living in the area will lose the use of the land for recreation.
    In reply to my question in the House on 1 April, the Minister, with his supposed care for the countryside, said that it was a case of
    "NIMBY—not in my back yard."—[Official Report, 1 April 1987; Vol. 113, c. 1094.]
    I challenge the Minister to accept such devastation in his back yard or even in his front garden as it will be for

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    many of my constituents. All of that for 100 jobs in eight years, and many of those not new jobs. Would his constituents, or he, say that the cost of such devastation was too high a price to pay?
    I shall deal with the need for opencast coal. A lot of nonsense has been talked about this opencast site being needed to mix in order to lower the chlorine content of the coal for the power stations. The inspector accepted that there were various other options to meet the demand of the Central Electricity Generating Board for low chlorine coal. Those options were not seriously disputed by British Coal. Indeed, given that the average chlorine content for deep mined coal in the United Kingdom is 0·28 per cent., and that suitable deep mined coal is being mined in nearby Warwickshire, there are other options.
    In addition, national stocks of coal at pitheads have risen to 12 million tonnes in the last 12 months. Failure to use those stockpiles could result in further colliery closures, which is what this Government are truly aiming at.
    Even the inspector, in granting permission, said:
    "The argument on need has in my opinion been overstated."
    He considered that it was perhaps based on the Government's policy for the cheaper open cast coal, but he was at a loss to know whether the policy implied an expansion, nationally or locally, of the historic levels of opencast production. The inspector drew the conclusion that there was an abandonment of a national target and a reliance on market forces. A typical Tory policy: greed, not need.
    Despite the devastation that this opencast mining would cause, the Secretary of State agreed on 31 March that it should go ahead. That should be contrasted with the Minister's words on 23 February on the Streets Lane site also in Staffordshire, when he reduced the size of that site from 520 acres to 395 acres. He said:
    "The Secretary of State takes the view that the case presents the need to strike a difficult balance between the need for the coal, and protection of the local community and its amenities."
    In reducing the size of the site, he considered
    "that this would distance the dwellings in Upper Norwood village, and at the end of Cheslyn Hay from the noise and dust associated with this development—as it would from the `smallholding', and it would obviate the need for Upper Ladywood lane to be diverted. It would also lessen the nuisance associated with the construction of over-burden mounds. In these particular circumstances, the Secretary of State regards these advantages as compelling and as outweighing the loss of coal necessitated by the reduced area of extraction."
    What a contrast that presents to the Secretary of State's views on the Highlane opencast site, with its over-burden mound standing 98 ft high and covering 74 acres, with the 16 ft high boundary baffle mounds, with its destruction of a hamlet of eight houses, and its diverting of Black Bank road. What happened to his concern for the environment and for the people between 23 February and 31 March? The answer is: nothing happened. The only difference is that Newcastle-under-Lyme has a Labour Member of Parliament, and the Streets Lane site has a Tory Member of Parliament.
    The Government have no real concern for people; they do not listen to what they have to say; and they have no
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    real concern for the environment. This was a matter of buying votes. When it is a case of buying Tory votes then it is different.
    In the case of the loyal and ancient borough of Newcastle-under-Lyme with its 800-year-old charter, this Government put profit before people. As the Secretary of State is too ashamed to appear himself, can the Minister tell me—can the Minister tell the House—when the rape of my constituency by this Tory Government will cease?
    11.19 pm
    The Parliamentary Under-Secretary of State for the Environment (Mr. Richard Tracey): The hon. Member for Newcastle-under-Lyme (Mrs. Golding) made a powerful but rather prickly speech, but I congratulate her on the speed with which she has managed to raise this matter in the House. The decision on the High lane site was issued on 31 March, and, as the hon. Lady said, she raised the matter with my hon. Friend the Minister for the Environment, Countryside and Planning at Question Time on 1 April, and now we are having an Adjournment debate upon it—all in the space of 10 days.
    I am sure that the House will appreciate that I am unable to comment on the merits of a particular planning decision. Once a decision has been given on an appeal or called-in application, my right hon. Friend the Secretary of State has no further jurisdiction in the matter, and he cannot reopen it to consider any further representations or complaints that he may receive. Any person who is aggrieved by a decision on appeal and wishes to question the validity of the decision may make an application to the High Court within six weeks from the date of the decision. The decision on the High lane site was made only 10 days ago, so it would be doubly inappropriate for me to make any comment on the merits.
    However, as we have heard, the hon. Lady is concerned primarily with opencast coal sites in her constituency and the effect that they have. I hope that in the time that is available to me I can offer some general reassurance.
    There are two British Coal opencast sites currently in operation in the hon. Lady's constituency. Both of them were authorised by my right hon. Friend the Secretary of State for Energy under the Opencast Coal Act 1958. Red street was authorised in July 1981 and Bateswood North in June 1982. Both sites are nearing the end of their productive life. I understand that Red street is expected to finish coaling soon and that Bateswood North is expected to finish in about 1990. Once operations are completed, the land will be restored by British Coal under the terms of its authorisations.
    I can appreciate, however, the hon. Lady's concern. I think that we all accept that opencast coal mining is an intrusive operation. It can cause considerable environmental damage while it is being carried out and consequently it arouses a good deal of local controversy. But opencasting produces a cheap and profitable good quality fuel, which is important to the nation's economy and the financial viability of the British Coal Corporation. It is crucial, therefore, that we should seek to strike the right balance between the nation's interest in exploiting this mineral resource and that of protecting our environment.
    It may help to demonstrate how we are seeking to achieve this if I explain the policy background against which individual decisions are taken on their merits. As I have said, prior to 1 April 1984, British Coal did not apply

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    for planning permission for proposals to work coal by opencast methods. Instead it applied to my right hon. Friend the Secretary of State for Energy for authorisation under section 1 of the Opencast Coal Act 1958. When granting authorisation, my right hon. Friend also gave deemed planning permission for the development under section 2 of the 1958 Act.
    The Commission on Energy and the Environment in its report entitled "Coal and the Environment" in May 1983 recognised that consideration of opencast proposals should properly rest with mineral planning authorities in the same way as any other development proposals. The Government accepted this in their White Paper of the same name. We therefore introduced transitional arrangements on 1 March 1984 by the Department of the Environment circular 3/84, under which, instead of applying to the Secretary of State for Energy for authorisation, British Coal applies for planning permission to the appropriate mineral planning authority.
    However, while the relevant provisions of the 1958 Act remain on the statute book, British Coal still requires authorisation from my right hon. Friend the Secretary of State for the Environment, to whom responsibility for giving authorisation was administratively transferred. This now superfluous administrative operation will be removed on the commencement of part V of the Housing and Planning Act 1986. British Coal's opencast operations will then be brought fully within the ambit of the land use planning system.
    The Commission on Energy and the Environment also recommended that the level of opencast production should be allowed to decline as new and more profitable deep mines were brought on stream, and recommended the adoption of a series of guidelines that would confine opencast extraction to sites where coal would otherwise be sterilised by built development; where the site could be environmentally improved by coaling and subsequent restoration, or where other environmental benefits could be obtained; where there was a demonstrable need for a certain grade of coal for blending, or specialised needs that could not be met by deep mines; or to supply demonstrable short-term increases on demand which deep mine production was too inflexible to satisfy.
    However, the commission recognised the need to take account of the overall economic benefit to the nation of opencast production. DOE circular 3/84 therefore advised that each project should be considered in terms of the market requirement for its planned output—taking into account the alternative sources of supply, including deep-mine coal—as well as the environmental, agricultural and other planning considerations. It suggested that proposals should be examined against the following considerations, in no particular order of significance: first, the extent to which the coal would otherwise be sterilised by built development; secondly, the extent to which the site could be environmentally improved in the longer term by coal extraction and subsequent restoration; thirdly, the extent to which the proposal would facilitate the comprehensive working of the coal deposits of an area in an efficient and environmentally satisfactory manner; and, finally, the extent to which the extraction of coal from a site would facilitate the efficient and economic working of other mineral deposits on that site.
    In practice, there has been considerable difficulty in interpreting what constitutes "market requirement" for an individual site in relation to an internationally traded
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    commodity. That, in part, has led to disputes and delays in dealing with planning applications. We are therefore taking the opportunity that will arise on repeal of the redundant authorisation requirements in the Opencast Coal Act 1958 to revise and strengthen the guidelines for opencast coal operations. Yesterday we issued a draft circular for public consultation, which seeks to set a balanced framework against which individual proposals can be examined.
    The draft circular drops the reference to market requirement, and applicants will no longer have to provide a justification for the specific need for the coal. I must stress that it is not a free-for-all; indeed, under our proposals, the crucial test of an opencast coal application will be whether the mineral can be extracted in an environmentally acceptable way. It will be for the industry to decide the level of production that it wishes to aim for, but for mineral planning authorities to determine the acceptability of individual proposals.
    The draft circular sets out the national policy considerations, both economic and environmental, that planning authorities will need to take account of when determining individual applications. Opencast coal can be produced cheaply and profitably, and can make a substantial contribution to British Coal's progress towards break-even and its subsequent progress towards self-financing and a satisfactory rate of return on capital. However, the draft emphasises that, whilst recognising the importance of opencast coal, the Government are firmly committed to the protection of the environment; and that environmental controls are therefore vital to the acceptability of opencast working, and must be adhered to if sites are to meet current environmental standards. As for all minerals, proposals for new opencast workings or extensions of existing workings affecting National Parks, areas of outstanding natural beauty, sites of special scientific interest and national nature reserves must be subject to the most rigorous examination.
    The draft circular also gives specific advice on the handling of opencast coal proposals. The industry is encouraged to explain fully and as early as possible the nature of its proposals, indicating the ways in which it intends to deal with the environmental factors that will arise. Where large sites or sites that may be worked over many years are proposed, the industry is encouraged to discuss its proposals at an early stage with the local community, by arranging, for example, public meetings and exhibitions. The draft stresses the desirability of using environmental assessment techniques appropriate to the scale of the development and the sensitivity of the area. We also propose to retain the considerations set out in the existing circular.
    We will also emphasise that a positive approach should be taken where opencasting would help clear dereliction or secure the early release of former colliery sites for reclamation. Particular emphasis too is given to the importance of proper restoration and after-care of sites to a subsequent beneficial use and the need for the principles of restoration to be clearly settled at the time planning permission is granted.
    We believe that these proposals taken together strike the right balance between the needs of industry and the economy to develop these important mineral resources and the nation's interest in the protection of the environment. It must be right for industry to make its own

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    investment decisions appropriate to its financial objectives, and for mineral planning authorities to determine the acceptability of individual projects through the land use planning system.
    It is a fact of life that minerals can only be worked where they are found, and opencast coal is no exception. The acceptability of opencast coal working will depend in part on the likely environmental impact of the proposals and on the steps to be taken by the developer to minimise those effects. The draft circular makes it clear that the visual intrusions of a site—the effects of dust, noise and vibration from blasting and heavy traffic movements—are all material considerations. These can be reduced by the careful planning of operations, including the siting of boundaries and baffle banks, limiting the height of overburden heaps and moving away from residential areas quickly.
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    There will be cases where the environmental effects taken together add up to such a severe diminution in the quality of life for a locality that the development should not proceed.
    We hope that the draft guidelines published yesterday will provide mineral planning authorities with the right framework and advice to help them to solve the conflicting pressures which inevitably arise in considering particular development proposals.
    I recognise that the hon. Lady will be disappointed that I am unable to discuss the merits of particular planning decisions, including the one affecting her constituency. Nevertheless, I hope that what I have said will help to explain the background against which these decisions are taken and our proposals for the way forward. I hope that she will feel reassured that environmental considerations figure large in my right hon. Friend's consideration of matters that come before him.
    Question put and agreed to.
    Adjourned accordingly at twenty-seven minutes to Twelve o'clock.