The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Prior of Brampton) (Con)
My Lords, I also thank the noble Lord, Lord Teverson, for bringing this debate to the House today. We discussed the implications for Euratom at the time of the Article 50 notice being given. At that time, it was explained that the machinery of the two treaties was inextricably intertwined and that it was not possible to give notice under Article 50 without also giving notice under Euratom. I am sure we may wish to debate that issue further on another day but that is the position as I understand it.
The noble Lord was quite right when he started the debate by saying that Euratom is hugely important yet it is a treaty that few people had ever heard of. However, the Government are certainly under no illusions about how important Euratom is. I hope that I shall pick up most of the questions raised by noble Lords in this debate while I wind up. In so far as I do not, I will write.
Lord Kerr of Kinlochard (CB)
If they are “inextricably intertwined”, why did the letter have a specific, separate paragraph saying that, in addition to leaving the European Union, we wish to leave Euratom?
Lord Prior of Brampton
My Lords, I cannot answer that question standing here because I do not know. I am not briefed for a long and intricate legal discussion about how notice given under Article 50 related to Euratom. If it is all right with the noble Lord, I will write to him after the debate.
I should make clear to noble Lords that the Government regard the Euratom situation as hugely important and serious. At the beginning of my remarks, I should also be absolutely clear on three broad points. First, our aim is to maintain our mutually successful civil nuclear co-operation with Euratom. Secondly, we are committed to the highest standards of nuclear safety and support for the industry. Thirdly, we will continue to apply international standards on nuclear safeguards.
A number of noble Lords raised the issue of medical isotopes. There is a genuine difference of understanding here. We do not believe that leaving Euratom will have any adverse effect on the supply of medical radio-isotopes. Here, I was very sorry to hear about the noble Lord, Lord O’Neill. We will all think of him and hope he makes a good recovery over the summer. However, contrary to what has been in some newspapers that noble Lords may have read, medical radio-isotopes are not classed as special fissile material and are not subject to nuclear safeguards. Put frankly, you cannot build a nuclear weapon out of medical radioactive material. They are not part of the nuclear non-proliferation treaty, which is the driver of our nuclear safeguards regime.
In addition, Euratom places no restrictions on the export of medical isotopes to countries outside the EU. It is in everyone’s interests to ensure that there are no restrictions on the export of medical isotopes to countries outside the EU. These isotopes are not subject to Euratom supply agency contracts or to Euratom safeguards. This means that no special arrangements need to be put in place ahead of withdrawal. The UK’s ability to import medical isotopes from Europe and the rest of the world will not be affected.
Let me say a little more about safeguards as this is also, quite rightly, a subject with which noble Lords are concerned. It is clear that we need continuity and must avoid any break in our safeguards regime. The UK meets our safeguards standards through our membership of Euratom. The Government’s aim is clear: we want to maintain our mutually successful civil nuclear co-operation with Euratom. We can do so while establishing our own nuclear safeguards regime, using the body that already regulates nuclear security and safety: the Office for Nuclear Regulation. To do that, we need primary legislation.
That is why the Queen’s Speech on 21 June included our intention to take powers to set up a domestic nuclear safeguards regime, in partnership with the Office for Nuclear Regulation, to enable us to continue to meet international safeguards and nuclear non-proliferation obligations. Regardless of where Members of both Houses may stand on the UK’s future relationship with Euratom, I hope we can all agree that it is sensible and prudent to take such powers.
I know that your Lordships are keen to understand the Government’s approach to securing a successful negotiation outcome and continuity for our nuclear industry. I should like to set out here what the Government have been doing to further the UK’s interests. First, your Lordships will be aware that on 22 May, the Government formally entered EU exit negotiations with the European Commission. The EU negotiating directives, agreed by the European Council on 22 May, set out priority issues that have been identified by the EU as necessary for the orderly withdrawal of the UK. As part of these priority issues, the directives noted that a suitable agreement will need to be reached in relation to the ownership of “special fissile materials” and safeguards equipment in the UK which are currently the property of Euratom. The outcome of such an agreement, as with the rest of the UK’s future relationship with Euratom, will be subject to negotiations with the EU and Euratom.
The Government’s primary aim throughout these negotiations will be to maintain our mutually successful civil nuclear co-operation with Euratom and the rest of the world. We are strong supporters of Euratom and that is not going to change. Last Friday, the UK published a position paper setting out its objectives for a future relationship with Euratom. We are ready and confident that we can find common ground as officials enter this first phase of negotiations but, regardless of where we stand on the question of membership, associate membership, transition or departure from Euratom, we can agree that it is sensible and prudent to ensure that the Office for Nuclear Regulation has the power it needs for a domestic safeguards regime.
Secondly, we are keen to ensure that there is minimal disruption to civil nuclear trade and co-operation with non-European partners. To this end, the Government are negotiating with the United States, Canada, Australia and Japan so that the UK has appropriate nuclear co-operation agreements in place. Government officials have met with the Canadian Government and the Canadian regulators; we have also written to them at ministerial level. Canada is as keen as we are to reach a new agreement on bilateral terms. That is equally true of the USA, Japan and Australia, with all of whom we have started constructive discussions.
Let me reinforce this point because it may be that the House has heard or read that everything has to be done in a sequence that will take many years. I can tell the House that not only is it possible to do these things in parallel but we have already started to do so. We are preparing a domestic nuclear safeguards Bill; we are opening negotiations with the EU; we are talking to third countries about bilateral agreements; finally, of course, we are talking to the International Atomic Energy Agency. My officials have met with IAEA officials in Vienna and had constructive conversations about a new voluntary offer agreement, to replace the current one that we have by virtue of our Euratom membership.
There should be no question of any lack of support for Euratom. The decision to leave was taken at the time of triggering Article 50. Noble Lords will be aware that the triggering of Article 50 notified the Commission of the UK’s intention to leave the European Union and to leave Euratom, as the EU and Euratom are uniquely and legally joined. Leaving one means leaving the other. That is an issue we addressed earlier but I will write to the noble Lord, Lord Kerr, about it. The UK has been at the forefront on nuclear non-proliferation for 60 years and we have been members of Euratom since 1973. I have no doubt that we can bring all these discussions to a satisfactory conclusion.
A number of noble Lords raised issues of research, in particular that done at Culham. In last week’s Westminster Hall debate my fellow Minister, the honourable Member for Watford, Richard Harrington, set out that the Government are pursuing research and development opportunities with our European counterparts. My right honourable friend the Secretary of State announced on 27 June the underwriting of the UK’s share of the EU JET fusion project. This demonstrates our commitment to continued nuclear research and development collaboration, and in particular to the world-leading Culham Centre for Fusion Energy located near Oxford. The UK’s participation in JET and the ITER project in France supports around 1,300 jobs, which includes 600 highly skilled positions. UK engineering and technology firms have indirectly benefited, as we heard from a noble Lord earlier, from around €500 million-worth of ITER construction contracts.
In conclusion, I make it clear that the Government are determined to continue a constructive, collaborative relationship with Euratom. The UK is a great supporter of Euratom and will continue to be so. This Government remain absolutely committed to the highest standards of nuclear safety and to supporting the nuclear industry. We will achieve this through continued application of international standards on nuclear safeguards, new legislation and new agreements with our international partners.