Harbours, Docks, Piers and Ferries

Part of the debate – in the House of Commons at 4:37 pm on 5 December 1996.

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Photo of Mr Neville Trotter Mr Neville Trotter , Tynemouth 4:37, 5 December 1996

Tyneside's strong maritime history goes back to the days of the Romans, although in practice its prosperity is based on the coal trade.

One hundred years ago, more than 3 million tonnes of coal was exported from the Tyne. It was the foundation of the industrial prosperity of the whole river and Tyneside area. In 1923, 22 million tonnes of coal was shipped from the river, and we now have the most modern coal facility in the country, with a capacity of 5 million tonnes a year.

Unfortunately, the market for coal has disappeared. Last year, only 2 million tonnes was exported from the port, and the representatives of the port have admitted that it is prudent to assume that the trade will soon cease altogether. That is an important factor in considering the plans for the future of the port. It must be able to adapt further to changed circumstances. Although the port made a big profit last year, it cannot rely on that continuing if it simply remains as it is.

In 1970, 4 million tonnes of other traffic went through the port; now, it is down to half that figure. In the port's heyday, the number of ships entering the river was 40 a day, or 14,000 a year; by 1970, it was down to 12 ships a day; now, it is down to only four or five ships a day. The Tees has 10 times the amount of business that the Tyne has. When I looked at the official statistics for the port industry, I saw that the Tyne was not in the list of top ports. It is the only major river in the country not listed as a major port. We should bear in mind the realities of the situation.

There is a positive side. We have heard about Nissan coming to the Tyne. That was a big achievement for the port. Nissan exports 80 per cent. of its production to 36 countries, including Japan. It is the biggest car exporter in the country and exports 5,000 cars a week from the Tyne.

We have a booming ship repair industry, which is revitalised and highly competitive. We have a successful offshore industry, with Amec and Swan Hunter employing many people again, and other firms such as A and P Appledore, McNulty and Tyne Tees.

The river has been cleaned up. One of the most remarkable achievements in recent times has been the success of the Tyne and Wear development corporation, in particular, in redeveloping the river frontage. Some years ago, the Tyne had become miles of dereliction—an eyesore. Now, it is revitalised, modernised and attractive to new business.

Fears have been expressed about the sale of port land for development, but we have heard from both sides in the debate that that has already happened. Land has already been disposed of by the Tyne and Wear development corporation, which successfully carried out the redevelopment.

We have heard fears expressed on behalf of employees, but as my right hon. Friend the Secretary of State pointed out, they will be protected by legislation. In his opening speech, my right hon. Friend also referred to the benefit of share ownership. That is important. Employees can participate through share ownership in the new company. That would be encouraged, as my right hon. Friend said in his presentation to the port. In many of the ports that have been privatised, more than half the shares ended up being owned by people who worked in the port. That is a positive development.

There are fears that the new company will have the wrong financial motivation. It must be in the interests of the owners that success should follow from the transfer of ownership. They want the port to succeed—that is why they are acquiring it. They will achieve that by satisfying their existing customers and attracting new ones. The new company will remain a statutory harbour authority. For reasons that I do not understand, it is feared that port facilities will be closed. The company will have the same duties and responsibilities under the Ports Act 1991 as the present port authority has. It will not be able to dispose of operational land without the approval of Parliament. There will have to be an opportunity for objections to be raised to such a proposal and, if there were objections, there would have to be a public inquiry.

There are fears that charges will be increased. If I read the figures correctly, on a turnover of £14 million, the port made a profit of £5 million. If I were one of the port users, I might already bear that fact in mind. The 1991 Act states that charges must be reasonable. If there were any misguided attempt to increase the charges—I do not see why there should be—there is a right of appeal to the Secretary of State. That right of appeal has never been used in any of the previous port privatisations.

Some ports seemed to be efficient before they were privatised, but they are more efficient now, after privatisation. Port privatisation has been an undoubted success and experience from one end of the country to the other does not bear out the fears that have been expressed. Privatisation has brought increased business, profit and capital investment.

I see no reason to doubt that the Tyne will be another success story. We have a long and proud history on the Tyne, and I look to a positive future. We have a well-situated port for traffic to north-east Europe and we have further opportunities through the offshore industries.