My Lords, I am grateful to the noble Lord for his amendment. It is Government policy to set charges in order to recover, where possible and appropriate, the costs of services provided to industry, which is why we are using this Bill as an opportunity to expand the existing powers available to the MMO. I should also say at this juncture that I want to acknowledge the noble Lord’s service during his time with the MMO, which I have been informed about many times. He has an advantage over us all in terms of knowing the inner workings of the organisation.
Currently, the costs of regulating sea fisheries management functions are met by the taxpayer. Fisheries management is one element of the broader function, although it includes other activities that will not be included within the scope of the charging power. However, in line with Treasury guidance, it may be more appropriate for some costs to be met by those being regulated. This may sometimes include services relating to compliance and monitoring.
The charging powers under the Fisheries Bill will enable us to move over time to increased cost recovery for the MMO where appropriate, thus ensuring consistency with the application of charges to other users of MMO-regulated services and more widely across the Defra group. I am most grateful to the noble Lord, Lord Berkeley, for his comments, which I will take away as well. We are all in public service and we want to get these things done in as timely a way as possible.
As set out in the Fisheries White Paper, costs recovery will ensure that the MMO has the funding it needs to carry out a process of continuous improvement, making the service it runs as efficient as possible. We will need to work closely with industry to agree the pace of this change to ensure that it is sustainable. That is why the clause also places an obligation on the Secretary of State to consult appropriate persons before implementing a charging scheme. This will provide the industry with an early indication of the type of services being proposed, the detail of the charges’ composition, and when the charges are going to be brought into effect. I should also say to the noble Lord, Lord Teverson, that paragraph 7(3) of Schedule 3 to the Bill already provides for the relevant national authority—in England, the Secretary of State—to make regulations authorising the making of charges in relation to a sea fishing licence.
Amendment 118 would change the parliamentary procedure for regulations made under Clause 34 from the negative resolution procedure to the affirmative. The Government have carefully considered the delegated powers in the Bill and the procedures which should apply to regulations. We consider that we have struck the right balance between the need for parliamentary scrutiny and the need to be able to update MMO charges through secondary legislation. Indeed, I am reminded that it is usual for fees and charges to be imposed by arm’s-length bodies to be set out in regulations made under the negative resolution procedure. A recent example is the power for the Secretary of State to charge fees through regulations under the Ivory Act 2018, where the negative procedure is used.
As highlighted earlier when we discussed the procedure for the days at sea regulations, the Delegated Powers and Regulatory Reform Committee has reconfirmed in its report of 26 February its view that we have struck the right balance with all our delegated powers in this Bill.
Turning to Amendment 119, the MMO has some existing cost-recovery powers that are currently utilised for marine activity. An activity for which the MMO currently charges is customer-initiated advice direct to developers without Planning Inspectorate involvement. Such developers could seek licences for building wind farms, for example. While the reasons for the amendment are entirely understandable, the Government feel that prohibiting the MMO receiving grant in aid funding would risk significantly limiting the activities it currently provides to industry. It is current government policy not to charge for activities such as control and enforcement, marine planning, research and delivering grant schemes. If the MMO were put under an obligation to self-fund entirely, there would be difficulties with charging for and delivering the activities I just outlined.
So far as paragraphs (b) and (c) in the amendment are concerned, there are existing government guidelines in place to provide guidance on cost recovery. Clause 34 also sets a statutory requirement for the Secretary of State to consult before any charging scheme is introduced. The industry would therefore be fully engaged with any decision on a proposed scheme.
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A number of points were made. The noble Lord, Lord Grantchester, referred to the devolved Administrations. As he indicated, this matter is devolved. This provision is intended to provide powers for the MMO to recover its costs, so it will apply primarily in England, but there may be circumstances in which the MMO performs a sea fisheries management function in relation to another part of the UK maritime area. It may therefore seek to recover the costs of doing so from individuals in other parts of the United Kingdom.
The under-10-metre fleet had a fishing income of around £110 million in 2018, an increase of £17 million in real terms from a decade ago. I think we all instinctively support this area; coastal communities have very much seen it as part of their lifeblood. I have a long speaking note on under-10-metre fleets, but I might like to write about that because I have quite a bit of detail on it.
I hope that reassures the noble Lord, Lord Teverson, that the charge will not exceed the reasonable costs incurred in carrying out specified fisheries management functions. Again, this is work in progress. It has been helpful to have this debate on the desire for the MMO and us to move forward on cost recovery. We need to work candidly with industry on the requirement for consultation. The direction of travel is entirely in line with the noble Lord’s aspirations. There are areas in which we think this is appropriate, but current government policy is that we would not seek cost recovery in areas such as research, because they are important and in the national interest. On the basis of work continuing on this matter, I hope the noble Lord feels able to withdraw his amendment.