WIREDGOV

Fitzpatrick maps out the future for the ports sector

DEPARTMENT FOR TRANSPORT News Release (086) issued by The Government News Network on 19 July 2007

Shipping Minister Jim Fitzpatrick today committed the Government to maintaining its 'light touch' approach to the regulation of ports in England and Wales and announced a strengthening of the Government's ports policy framework.

He also announced the publication of an Interim Report setting out the findings so far of the Government's Ports Policy Review (PPR).

The Interim Report sets out specific actions on issues such as demand forecasting, the future of trust ports, Master Plans and the safeguarding of land for port operations where that is appropriate. In addition, it looks forward to further improvements through the future establishment of the Marine Management Organization and Infrastructure Planning Commission, which the Government has announced in two recent White Papers.

Although the Ports Policy Review will not be completed until later this year, Mr Fitzpatrick explained that the Government is already in a position to spell out a number of measures to promote greater transparency, stronger environmental performance and more co-operation in strategic planning. He said:

"Central to our approach is our view that commercial port operators are best-placed to make decisions about where and when to invest. We do not propose any substantial change in the operating and regulatory framework for ports. But, recognising the vital importance of ports large and small to national, regional and local economies, it is the Government's responsibility to create the conditions in which investment is encouraged and sustainability is ensured."

Explaining why the Review has not yet been completed, Mr Fitzpatrick said:

"Before we can finalise our policy on inland access to ports and on ports planning we need to take full account of several important current programmes. These include the Government's response to the Eddington Study and the proposed Planning Reform Bill."

Notes for Editors

1. The Ports Policy Review was launched in May 2006, following a commitment in The Future of Transport White Paper. It began with an extensive consultation exercise embracing port operators, environmental groups, shippers and other key stakeholders. The Review covers England and Wales; ports policy is largely devolved in Scotland and Northern Ireland.

2. Alongside this Interim Report, the Government has also submitted its formal response to the House of Commons Transport Select Committee whose report on the ports industry in England and Wales was published in January.

3. More than 90% of the UK's visible foreign trade passes through sea-ports - a total of almost 600M tonnes each year.

4. There are three main ownership categories for civilian ports: companies, which account for the majority of commercial activity; municipal ports run directly by local authorities; and trust ports, independent statutory bodies which account for around 30% of tonnage throughput.

5. The Interim Report broadly continues the Government's 'light touch' approach to regulation of sea-ports, recognizing the commercial success of all three ownership sectors and their vital economic importance. The Government's view is that commercial port operators are best-placed to make decisions about where and when to invest in the port sector: there is not the same need as was identified in the case of airports for Government to indicate where it would expect to see development brought forward.

6. Ports have important environmental duties including the responsible management of estuaries and provision of compensatory habitat when necessary in the case of new development. In many cases, they already discharge these duties very well, as NGOs have attested. But there is still room for improvement, and also for Government to give clearer guidance in some areas, which it intends to do in the next stage.

7. DEFRA recently consulted on proposals for the formation of a new Marine Management Organization (MMO), which will in future take responsibility for most of the harbour planning applications currently dealt with by DfT and others. For DEFRA's consultation, see A Sea Change: a Marine Bill White Paper, http://www.defra.gov.uk/corporate/consult/marinebill-whitepaper07/index.htm.
The consultation closed in June.

8. Major infrastructure projects (including large port developments) will, it is proposed, go to the Infrastructure Planning Commission which, pursuant to recommendations of Kate Barker and Sir Rod Eddington, is set out in the White Paper Planning for a Sustainable Future (http://www.communities.gov.uk/index.asp?id=1510503)

Public Enquiries: 020 7944 8300
Department for Transport Website: http://www.dft.gov.uk