Clause 27
Marine and Coastal Access Bill [Lords]
10:30 am

Andrew George (St Ives, Liberal Democrat)

I wish briefly to ask the Minister for some clarification, or at least reassurance, on the charges that might be applied, particularly with regard to clauses 25 and 26. Subsection (1) of clause 27 refers to the reasonableness of the charges, but it would be helpful if the Minister were to clarify how those who will be charged by the MMO will be reassured that those charges are reasonable, how they will be set and the basis on which they can be tested and challenged if considered unreasonable by those on whom they are imposed.

Huw Irranca-Davies (Parliamentary Under-Secretary (Marine and Natural Environment), Department for Environment, Food and Rural Affairs; Ogmore, Labour)

I am happy to respond to the hon. Gentleman’s query and offer some reassurance. As he knows, clause 27 will enable the MMO to make a reasonable charge for any services it provides on a cost recovery basis, so subsection (2) makes specific provision for it to charge fees for any functions it might be requested to exercise on behalf of a Welsh Minister or the Department of the Environment in Northern Ireland. Examples of other types of service for which the MMO might charge include making available the results of research, and providing advice, assistance or training facilities.

Charges will be based on the Government’s principles of cost recovery, as I mentioned, and proportionality, and will be linked to the cost of providing any particular service. Licence fees will vary according to a scale depending on the nature and size of the activity undertaken, so it is right to consider the issue of proportionality, which the hon. Gentleman raised. We see that as the way that the system would work. In that way, smaller enterprises carrying on small-scale activities are likely to be subject to lower fees than the larger-scale operations carried out by bigger businesses. It should be noted that the power to charge for the licences will flow from an order under part 4, rather than from clause 27. The hon. Gentleman is absolutely right, and I reassure him that there will be a scaled approach to the charges, which recognises the different scales of businesses and of activities that could be undertaken. I hope that how the charges will work is now clearer to him, and that he can take back assurances to those who raised the matter with him.