Nuclear Safeguards Bill (Fourth sitting)

(Limited Text - Ministerial Extracts only)

Committee Debate: 4th sitting: House of Commons
Thursday 2nd November 2017 Public Bill Committees

[Dr Alan Whitehead (Southampton, Test) (Lab)]

Thank you very much, Mr McCabe. I am obliged to you for your kind thoughts in that respect. I guess it is a good thing, as it transpires, that I did not tear up my notes at lunchtime after all.

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Richard Harrington)]

You do not need notes.

[Dr Whitehead]

We will see.

I want to draw briefish attention to the three amendments that are in this group, in addition to new clause 1, which I have already spoken about and which would be a purpose clause at the front of the Bill. The three amendments effectively follow on from that purpose clause. Amendment 1 would require the Secretary of State, before regulations are made under clause 1—what is done under secondary legislation after we pass the Bill through the House—to produce a statement certifying that, in his opinion, it is no longer possible either to retain membership of Euratom or to establish an association with Euratom that permits the operation of nuclear safeguarding activity in the way that I described in my remarks on the purpose clause.

The amendment is important because we are in such uncharted waters as far as the demise of our arrangements with Euratom and what we will put in to replace them are concerned. Assuming the Bill comes to pass as a contingency, it is important that we know between us what has been done in respect of possible continued Euratom membership, and what has been done in respect of possible association with Euratom. Even after those things have been done, it will perhaps turn out that no progress has been possible on those particular areas. The Secretary of State should report to the House that that is the case—that the time for negotiations and discussions is over, that there is no prospect of going down that route and that therefore this Bill, as a contingency, comes into operation.

Were it to be passed today, the amendment would mark an important juncture in the Bill coming into play. Essentially, it would draw the line and, publicly by reference to Parliament through a report from the Secretary of State, show that matters have been explored and avenues gone down but those avenues have now closed to us. That may be just because the time for making those arrangements has run out, or it may be because it is difficult to secure associated status with Euratom similar to that of Ukraine or to that envisaged by the Spaak report in 1956.

If the amendment is passed, such a certification would be put before the House so it can see that efforts have been made, what the situation is and what we can expect, as far as the legislation is concerned. That should be in the Bill because, as everyone agrees, this is contingent legislation. It is contingent on certain actions. The legislation will either be placed aside or work fully as an alternative to the Euratom safeguarding regime.

Amendment 3 follows on from that. It requires the Secretary of State, before that process, to place before Parliament his or her strategy for seeking associate membership or another form of association with Euratom. That is important. There is a number of possible routes by which an association with Euratom could be achieved. Clearly, as we said this morning, the ideal route is to seek full membership of Euratom after the UK leaves the EU. As the Minister said previously, and I am sure will say today, there is a considerable difference of opinion about whether a full membership arrangement is possible or whether our notification to leave the EU has already closed that door. A strategy for seeking associate membership—or, indeed, full membership—would securely lay that argument to rest one way or the other. If the advice the Government receive suggests that certain doors are closed, I anticipate that the strategy would reflect that and the kind of associate status the country might expect to undertake. The Government would report on what strategy would be used to achieve that and whether that kind of status would be sufficient to cover the question of nuclear safeguards. In Switzerland, that appears not to be the case, but in Ukraine it appears possible.

I am sure that the Minister agrees that any such associated status would have to be stitched carefully to reflect the particular circumstances of the relationship between the UK and Euratom. It would probably not be taken off a shelf. That is an additional reason for some kind of report—outlining the strategy, the possible arrangements, and the kind of outcome envisaged were the strategy to succeed—being laid before Parliament. That is what we seek to achieve with the amendment. It is not in any way intended to delay or alter how the Bill works; it is simply to achieve greater clarity about what we are doing, given the contingent nature of the Bill.

Amendment 8 concerns the fact that today we are only discussing one of Euratom’s many functions in relation to UK nuclear activity. Euratom has a range of functions, concerning nuclear research and development, transport of nuclear and fissile materials, arrangements for making sure that nuclear materials are in the right place and in the right hands, and arrangements regarding who owns what when Euratom is or is not involved. Those are all essential functions of Euratom—functions in which the UK has participated wholeheartedly over many years. They will all have to be brought into national arrangements, but are not subject to the provisions of the Bill.

We are saying that we are in circumstances where we think that we have to leave Euratom as a whole and not just part of it, as part of the process of leaving the EU, so it is right that the Government should have available to it and indeed should publish a strategy regarding how Euratom’s other functions will be properly incorporated into the UK’s activities after we have left. The amendment is essentially about laying a strategy before Parliament for maintaining the wider range of protections and facilitations that are within our present Euratom arrangements.

As the Minister himself has made clear, the Bill is about nuclear safeguarding—not nuclear safety, the transport of nuclear materials or any of those other things. Nevertheless, those things are an essential element of Euratom activity. We think it is important to take that into account—not to delay the Bill, but to ensure that a strategy for maintaining those elements is laid before Parliament and is considered by both Houses of Parliament before the regulations are made under this clause.

I commend those amendments. I think they are sensible additions to the Bill, not only in terms of Parliament considering these issues, but in terms of considering all the circumstances under which we will potentially leave Euratom and what kind of regime will be in place once we have left it and replicated, as well as we can, what happens now, for the future of the country. I hope that the Minister will, by acclamation, be able to accept the amendments or, at the very least, accept their bona fide purpose, which is to strengthen the Bill as it goes through the House.

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[Richard Harrington]

I thank hon. Members for their contributions. I sympathise with the Opposition’s general aim, but I disagree with how they are going about it. I also disagree with the definition of “membership”, but I will come on to that in a minute.

I think the Opposition would accept that the Government would be reckless to do anything other than start what we are doing now, irrespective of the views of Members on both sides of the Committee about whether we should have membership, whether to call it associate membership, which I argue it is not, and whether it is a looser arrangement or a closer one. Contingency means that we are in the process of setting up a regulatory regime.

The amendments cover the fundamental issue of the UK’s future relationship with Euratom, which I understand. I think most commentators, experts and Members would accept that we have had many benefits from Euratom. As I said yesterday at the Business, Energy and Industrial Strategy Committee, we could not find any ECJ judgments that we have been involved in. There may be some, but the hon. Member for Oxford West and Abingdon (Layla Moran), who is probably a lot cleverer than me in many ways—she is a physicist—could not find any, and we have not found any. In practice, this has not been an appellate jurisdiction issue at all. It has been providing a set of rules that we have all abided by. As far as I can see, it has gone pretty well.

[Paul Blomfield]

This seems to be an appropriate opportunity for the Minister to confirm that he agrees with us that the Government’s negotiating ambition should be that we remain a member of Euratom.

[Richard Harrington]

I cannot, unfortunately, confirm that, but I can confirm that it is our intention to have as close a relationship as possible with Euratom, to cover the areas that Euratom covers with us at the moment.

The Government decided to serve the article 50 notice to leave the European Union. I am not a lawyer, but I accept the legal advice on both sides and have read a lot of the commentary around it. Whatever our views on that, it has been done, and it is our job as a Government to set up a suitable regulatory regime and negotiate with Euratom the closest possible relationship.

I would like to deal with the question of associate membership. It has been used in amendments to the European Union (Withdrawal) Bill, which will come before the House, and it has been mentioned a lot in conversation. I have had conversations with the Chair of the Business, Energy and Industrial Strategy Committee, the hon. Member for Leeds West (Rachel Reeves), and with my right hon. Friend the Member for Wantage (Mr Vaizey).

Associate membership implies a form of membership that I am sure one would have at the finer gentlemen’s clubs in London—not that I belong to any—where someone can be a member or an associate member. It is not like that, as I am sure hon. Members accept. I do not want to make too much of the terminology, because there is not an off-the-peg associate membership. There are agreements with two countries, which have been mentioned—Switzerland and Ukraine, with Ukraine being the most recent. I could go into more detail, and I am happy to if there are further questions.

Switzerland’s agreement is purely for research and development—I do not make light of that; it is a really good thing—and Ukraine’s is that and a little bit more, but neither is actually akin to Euratom membership. Those are a close form of association in their fields, but we are looking for a close form of association in every single field that Euratom covers, of which the nuclear safeguards is one element, although there are important others.

[Paul Blomfield]

The Minister will have noted that I pointed out in my remarks that both existing forms of associate membership—for Switzerland and Ukraine—would not meet the requirements to which we aspire. However, the difference there is surely that neither of those were formerly full members of Euratom. We are in the unique position of withdrawing from Euratom, and the negotiations therefore put us in a different sort of place, as other Ministers have argued in relation to other aspects of the negotiations.

[Richard Harrington]

I fully accept the hon. Gentleman’s point. I only mentioned Ukraine and Switzerland because they were mentioned by the hon. Member for Southampton, Test in terms of associate membership. I accept that they are different; in fact, that would be one of my main points were I reading my notes, but I am not, because I am trying to respond to the question.

Article 206 of the Euratom treaty deals with association. I quote from it:

“The Community may conclude with one or more States or international organisations agreements establishing an association involving reciprocal rights and obligations, common action and special procedures.”

It may seem pedantic but I think it is an important point: it is an association, not membership. However, what is in a name? I accept that we or any country can try to negotiate any kind of arrangement it wants with Euratom or anyone else; it takes two sides and a lot of goodwill.

However, I feel that the coverage sometimes gives the impression to my constituents who take an interest in this—I accept, as colleagues have said before, that very few actually do—but who are not studying it in detail that there is an open option for associate membership or for rejoining after we leave. I am sure that anything is on the table with Euratom, but our negotiations are entirely on the basis that we will leave Euratom on the same date as we leave the European Union, and that we are negotiating for ourselves the closest possible agreements for all of the activities.

We have mentioned safeguards, but for the record—I know hon. Members are probably aware of this—I will briefly mention the other important activities: research and development, which we have discussed; the Common Market trade arrangements for nuclear goods or products—let us call it free movement of goods and products; free movement of nuclear workers, which we discussed the importance of yesterday, in the Business, Energy and Industrial Strategy Committee, and the day before; and the setting of safety standards through regulations and directives, even if they are not carried out directly by Euratom, as we discussed this morning. In many ways, the R and D side is the easiest of them. We briefly discussed Ukraine and we certainly discussed Switzerland. I believe that progress can be made quickly on those things.

On the second article, article 101 gives the power to conclude various types of agreements with third countries. It is worth the Committee noting that the current “association” enjoyed by Switzerland, which, as I have said, specifically relates to research, was made under this narrow article—101—and not under the wider article 206, which I just quoted.

So, when hon. Members cite this “association” as a precedent that can be followed, I do not disagree—as I say, it is very encouraging—but I do point out the narrow scope and limited power under which it is achieved. It does not amount to what people would generally refer to as “associate membership”—not by a long way.

However, I must make it clear that nothing is off the table in discussions with the EU—nothing—because those discussions have not actually started yet. The preliminary discussions have, as has been well discussed before. They are what is called the “separation arrangements” and hon. Members will know, from discussions concerning the European Union (Withdrawal) Bill, the difference between the two types of discussions. We are in phase 1 of the negotiations, but the future relationship between the UK and the EU, and the details of any implementation period, are for the next phase of negotiations.

I accept that some areas of Euratom are linked to much wider issues, such as the free movement of goods and services. That must be linked to the general negotiations on the free movement of—well, materials that are not non-Euratom-compliant in every other sector, and very important they are. I do not underestimate the challenge that we face, in this area and in the wider negotiations.

However, given the uncertainty about the outcome of all the negotiations, it is absolutely vital that we continue to press ahead with work to set up an internationally approved safeguards regime and to put in place the nuclear co-operation agreements we will need. So, I am happy with the word “contingency”, which has been used, but “contingency” has to start now; it cannot start after all else has not succeeded. It is as much a logistical operation as anything else, but it would send a signal to our partners that we are serious, and we would be very negligent in our duties if we did not start it. I know that Her Majesty’s loyal Opposition are not negligent in their duties; I am not saying that we are “holier than thou” and the other side could not care less; of course we are all very concerned, but we would be very negligent in our duties if we did not start on this “contingency” work now.

I know—well, I hope and I believe—that I have full cross-party support on that point, even from Members who do not believe at all in nuclear generally; it has been well publicised about Scotland. However, the safeguards regime element of nuclear, given that we have got nuclear, is as important to the Scottish Government as it is to the UK generally. I mean, it would be impractical and not right—and I would like to say that that is not believed at all by the Scottish National party or indeed any other mainstream party in Scotland.

I also acknowledge that the hon. Members who tabled this group of amendments are not trying to wreck the Bill at all. Their actions are not irresponsible; I hope that we are having an informed and intelligent discussion on what to do, as we try to achieve the same object. I say that because amendments are always regarded in a partisan way. The Government put something forward; the Opposition, if you like, try to ruin it. However, that is certainly not the case in this instance and I would not like anyone to think so. There are quite a few experienced Members here—both Government Members and Opposition Members.

We must introduce the Bill to ensure that we meet international safeguards. This is to do with non-proliferation issues after we withdraw from Euratom. I would like to put it on the record that we are making very constructive progress in negotiations on the bilateral agreement with the IAEA and on the agreements with key partners such as the United States, Canada, Australia and Japan. They will all require—I say “will” because, obviously, they are not yet signed and finalised—or are contingent on our having the domestic safeguards regime in place on exit day.

We have to maintain the momentum and reassure the international community that the UK remains committed to nuclear non-proliferation and will provide clarity to the industry, which is very important. Tomorrow, I am meeting—possibly in this room but certainly on this floor—representatives of the nuclear sector, to discuss the nuclear sector deal. The industry wants to know that it can move vital materials, parts and expertise after exit day. Whatever word we use for our relationship—membership, associate membership, close association—the industry needs to know that it will be able to perform those functions.

[Paul Blomfield]

The Minister told me in answer to a previous intervention that he was unable to commit fully to our negotiating ambitions in relation to membership. I hear what he says, but I am sure that what the sector wants to hear tomorrow is clarity. In a different context, the Secretary of State for Exiting the European Union has said that the Government intend to seek from our future trading relationship “the exact same benefits” that we currently enjoy from membership of the single market and the customs union. Is it, then, the Government’s ambition to seek in our future relationship the exact same benefits that we currently enjoy as members of Euratom? I am sure that the sector will be keen to hear that tomorrow.

[Richard Harrington]

I could not have put it better myself. I am sure my right hon. Friend the Secretary of State for Exiting the European Union will be delighted to have been quoted. But it is a serious point and I would confirm seriously that it is our intention to achieve exactly the same terms and conditions in this sector as we have enjoyed with the benefits of Euratom. I will make that clear tomorrow to the industry, as I have done before; I do not think that the industry would say otherwise.

We have to ensure that we are committed to nuclear co-operation. I would never joke about North Korea, but I cannot imagine that any responsible person in this Committee Room or in the whole Palace of Westminster could ever think that we could leave ourselves without nuclear safeguards, because then we would be like North Korea. We must be able to compete internationally and do the things that decent countries do in this field. Euratom has provided that ability, and it is our full intention to ensure that that continues.

I hope that the hon. Members for Southampton, Test, for Sheffield Central and for Bristol West will withdraw their amendments. To summarise my argument, I would say that each of them would complicate or delay—in my view, to no good effect—the vital process of preparation that we are now embarking on. We are already committed to the path down which the amendments are trying to push us, so although I am sympathetic to them, I argue that they are not necessary.

New clause 1 would undermine our position in our negotiations with international partners beyond the EU. It would change the purpose of the Bill to permit arrangements for a safeguards regime to be put in place only in the wake of failure of the discussions with the EU. We need to pursue discussions bilaterally and with the IAEA now, while we await the start of negotiations with the EU on our future relationship. In fact, as I said, those discussions are well advanced. Over the past few days, several hon. Members from various parties have asked the Government in various forums how confident we are that new bilateral arrangements can be put in place in time. Our answer is that we are indeed confident, but only as long as we can continue to push at full speed; we cannot afford to await the outcome of our discussions in Brussels.

Amendments 1, 3 and 8 would risk delaying the legislation necessary to implement the domestic safeguards regime; I do not believe that that is their intention, but that would be their effect. I will address the transition period when we consider new clause 2.

The Government’s strategy is to progress the Bill; to continue to negotiate with the EU to achieve the closest possible future association with Euratom; to continue to negotiate an agreement with the IAEA, the importance of which I cannot overstate; to continue to negotiate nuclear co-operation agreements with our key trading partners; to increase the capabilities of the Office for Nuclear Regulation to deliver a robust domestic civil nuclear safeguards regime; and to push for research and training partnership, having committed to delivering the UK share of the Joint European Torus project after withdrawal from Euratom. I hope that after hearing those arguments, Opposition Members will feel able to withdraw their amendments.

[Dr Whitehead]

I am sorry if what I am about to say brings forth an uncomfortable image in hon. Members’ heads, but I cannot help thinking that the Minister has been dancing adroitly on the head of a very small pin. I say that because it is extremely difficult to conceive of circumstances where we would have the closest possible relationship with Euratom after we have left it or “the exact same benefits” as we would have as members but where that would not consist of an association with Euratom that one might call associate membership.

That association could not be the same as existing associations with Euratom; it would have to be a close association that was tailor-made for UK circumstances. My hon. Friend the Member for Sheffield Central made the important point that our circumstances are not moving us towards Euratom, so the association might be a preliminary status that could be added to later. That association carries on from a helpful, mutually satisfactory, long-term working relationship with Euratom that has served the UK, Euratom and the wider international community tremendously well over a long period.

The circumstances of the closest possible relationship, as set out by the Minister, and of the “exact same benefits”, as the Minister set out in agreement with my hon. Friend’s statement, almost have to be—I cannot think how they could not, in fact—a close associate membership of Euratom that would enable the nuclear safeguarding part of Euratom that we are talking about to be undertaken. The Minister, in dancing so well on the head of this particular pin, has underlined why the close relationship would manifest itself in that way. If the Minister is saying that we must have the closest possible relationship but that we cannot or will not define what that should be because—I am not quite sure of the line of logic here—that might in some way impede the progress of our future negotiations, I should have thought that the opposite would be the case. It would be rather good for future negotiations if we had an idea of what we wanted to negotiate about at an early stage.

[Richard Harrington]

I have been listening carefully to the hon. Gentleman. For the sake of this question, let us say that our negotiating ploy was to go to Euratom and say that we want full membership—the same as before. Its answer would surely be either yes or no. The Government want to replicate the five areas that Euratom covers and for those to be as close as possible to membership.

The hon. Gentleman accuses me of dancing on the head of a pin. The thought of me dancing on anything is a dreadful one, which I ask hon. Members to put out of their minds.

[Dr Whitehead]

You will be on “Strictly” next year.

[Richard Harrington]

Heaven forbid—although think about some of the people who have done it.

I am afraid that such a restriction invites a yes or no answer. The Government are saying, “We want the closest possible relationship on these different headings,” which may amount to what the hon. Gentleman says, but everything is in the negotiations. This is not a yes or no matter; these are complex negotiations. I cannot speak for him, but I believe that by using the wording we have—what I have put on the record about how close we want everything to be—we may well be asking for a series of arrangements that amount to what he wants.

[Dr Whitehead]

I thank the Minister for that clarification, which takes us a little further to the centre of the pin. The point is that the Bill clearly is not considered, has not been worked on and does not have its full set of secondary legislation attached, but it will practically come into force when the results of the discussion about the closest possible relationship are known. Let us say that, despite the Minister’s best endeavours to get the closest possible relationship, Euratom says no to everything—“You’re on your own; you’re out.” The provisions of the Bill must then come into place to get us a fully functioning nuclear safeguards regime that seamlessly takes over from the point at which Euratom says no. That is my understanding of the contingent nature of the Bill.

That does not mean—and it should not be taken to mean—that the Opposition are in any way trying to impede the work that needs to be done to get the Bill in place in order to fulfil that function. Of course that work needs to be done now and not at a future date. However, it would be really good, for the purposes of framing the Bill properly—in the way I have described—to know what the Government will seek as far as associate membership or the closest possible working relationship are concerned. I am considerably reassured by what the Minister says about the Government’s intentions in that respect, but it would be really useful to have that clear and in front of us.

I do not think that would in any way cause Euratom to say yes or no. Indeed, I would have thought that having a strategy in front of us that says what we want to achieve would be positive as far as Euratom is concerned, because it would then know exactly where we stood and exactly the limits of the closest possible working relationship we wanted, and it would be reassured to negotiate accordingly.

[Richard Harrington]

I worry that the shadow Minister and I are doing a duet on the head of this pin, because we are more or less in agreement about what we want. I thank him for his reassurances that he understands the need for the safeguards regime, which is the entire purpose of the Bill—it says so in the title. The Bill is not vague; it is deliberately precise, because we need to set up a safeguards regime.

I hope that I have made our strategy very clear, as I have on other occasions. Given that we have exactly the same intention, I ask the hon. Gentleman not to invite the answer yes or no, and to leave our negotiators to achieve the closest possible arrangement. That is what they are doing now, as confirmed at the Business, Energy and Industrial Strategy Committee yesterday.

This was supposed to be an intervention and it has turned into a speech, so I apologise for that, Mr McCabe. We need the Bill, and we need the Bill as it is, because in the doomsday scenario that the hon. Gentleman mentioned, where Euratom turns around and says, “Non,” or, “Nein,” we would still have a safeguards regime—not that any of us think that scenario will happen.

[Dr Whitehead]

That is absolutely right; that is the process by which the Bill comes into place, and that is the whole intent behind the trajectory of the Bill and the discussions ahead of it.

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[Richard Harrington]

I thank hon. Members for their contributions on amendments 4, 12 and 13. I accept that the amendments try to address consultation on the implementation of the nuclear safeguards regime that the Bill will establish. I will come to that shortly.

I would like to address the consultation in respect of the ONR’s capacity, raised in amendment 4. I understand that hon. Members seek confirmation that the ONR, which will be the regulator, has the resources necessary to take on extra responsibility for civil nuclear safeguards in addition to all its other functions, and that sufficient assessments have been made of the impact of the new regime.

In response to the original question put by the shadow Minister, the hon. Member for Southampton, Test, I can put his mind at rest and confirm that a full impact assessment is being undertaken and will be published in the coming weeks, certainly well before Report stage. I accept everything that the hon. Member for Wolverhampton South West said, with her interesting comparisons to her previous occupation. I remind her that we are not talking about safety—that does not make it less important—as that is covered by a completely different regime, but her points are well taken; particularly about the impact assessment.

The impact assessment will assess the main options for implementation of a domestic nuclear safeguards regime, which would happen after withdrawal from Euratom.

[Patricia Gibson]

Does the Minister have any concerns that nuclear regulation in the United Kingdom will face a post-Brexit skills crisis, as it prepares to take on extra responsibilities that it currently shares with its European partners at the same time that many of its current inspectors are ageing and approaching retirement?

[Richard Harrington]

The retirement of current inspectors—obviously not in safeguards—happens all the time and it is part of the general recruitment process. As for new inspectors for the new safeguards regime, the Department has regular and extensive discussions with the ONR, as one might imagine given the context. The recruitment process is initially for about 15 people; I accept that including other staff that comes to 32. I cannot quite remember the shadow Minister’s words, but I accept the fact that recruitment does not happen by just saying, “You, you and you.” That may be done in certain political parties’ recruitment process for prospective candidates, but I accept the fact that something like this requires a very serious, qualified person.

I am pleased to hear from my hon. Friend the Member for Copeland that she believes there is a pool of people that is, at least partially, already working in the nuclear industry, but the Office for Nuclear Regulation are far from fools when it comes to this sort of thing. They have started phase one of their recruitment process and will continue that process. They needed the financial clearance, which came according to the rules after Second Reading, and I thank all hon. Members here and in the House generally for their support for that. The budget and everything is agreed with the ONR. As has been mentioned, it is not simply a question of recruitment, although that is important, but IT, premises and all the other infrastructure that goes with that.

I hope I have dealt with the impact assessment question.

[Alex Norris]

On the impact assessment, I am heartened to hear that. Given what Dr Golshan said about us not being able to replicate the benefits of Euratom on day one, will that impact assessment state what we currently have the benefit of that we will not have on day one of the new regime?

[Richard Harrington]

It will not do that, because it is impossible to forecast how the recruitment and everything will go. I am not trying to dodge the hon. Gentleman’s very legitimate question, but in recruitment at its most basic, when placing a job advert, it is unknown how many people are going to reply. I am not dodging his question, but the impact assessment cannot specifically say that.

I accept the quality of Dr Golshan’s evidence. She spoke again yesterday at the Business, Energy and Industrial Strategy Committee and she meets regularly with all my colleagues in the Department.

[Eleanor Smith]

The Minister said that there will not be enough, but does that not have an effect on the safety? If there are not enough people to do the inspection, does that not compromise the safety?

[Richard Harrington]

I am sorry to be pedantic in front of the hon. Lady. It might affect the safeguards, which are to do with non-proliferation and so on, not the safety. If there were not enough inspectors to do safety, it would have the effect the hon. Lady mentioned, but this particular Bill it is to do with safeguards. I know that sounds like one word against the other, but it is a different regime—albeit a very good one, and it also has skill recruitment issues, just like any other. I am not making light of her comment, but in this case it is not safety in the sense of health and safety— people getting hurt or leaks—important though that is, but it would certainly affect the safeguards regime if the recruitment and other things were not done properly, which is why we have started this straightaway.

[Paul Blomfield]

Could the Minister clarify a little more the scope of the impact assessment in relation to staffing provision, because in response to concerns raised on this side of the House he suggested that it would address our concerns that we will not have an adequate safeguarding regime in place for March 2019, and then in response to an intervention from my hon. Friend the Member for Wolverhampton South West he said that it will be impossible to assess? What exactly will we get from this impact assessment in relation to the staffing needs and the ability of the ONR to address them, accepting that while Dr Golshan was a very impressive witness, representing what is clearly an impressive organisation, there are a number of factors beyond her control?

[Richard Harrington]

Dr Golshan is a very impressive person. I think in my answer to the hon. Member for, pardon me—

[Alex Norris]

Nottingham North.

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[Richard Harrington]

I was brought up in Sheffield so it is all the south of England to me. Maybe I misunderstood the question asked by the hon. Member for Nottingham North, but I thought he was asking whether there would be enough staff in place, as opposed to whether we would have a suitable regime ready by the end of it. If I misunderstood him, I did not mean to. That is why I made the point that it is impossible to tell—because it is a recruitment programme.

When I said the word “hope” to the hon. Member for Leeds West (Rachel Reeves), the Chair of the Select Committee on Business, Energy and Industrial Strategy, she said that when she buys a lottery ticket she hopes she will win. I had to point out that it was not that kind of hope but an informed hope based on a proper recruitment and resources plan, which will be in the assessment that is wanted. However, that has to be based on assumptions. Everything has to be based on assumptions.

Although I do not make light of the number of people involved—be it 15, 30 or whatever—it is not hundreds or thousands of people. It is in the ONR’s sphere of what it estimates. To return to the example from my hon. Friend the Member for Copeland about Sellafield, it could be that a lot of people apply for these jobs and they are partly qualified because of their degrees and other experiences, so the recruitment could go more quickly than expected. Like in any forecast, we need to make assessments, but I have no reason to believe that there will be a problem with recruitment. The first phase has already started. In January 2018 it goes on to the next phase, and that has been planned for properly.

[Dr Whitehead]

Does the Minister not agree that because we are in a position where not enormous numbers but unprecedented recruitment will be going on in the ONR, as he has said, we cannot be absolutely certain that everything will go right and we cannot predict the future with certainty? Surely that is why we need some kind of report and statement towards the end of the process—whether it is in the form of the amendment or another form that the Minister might like to offer—to see we really are in a position where our hope has been realised, things can happen as hoped, and they are going well and will do so subsequently. It may not be necessary for that to be in the Bill, but some kind of assurance that the Minister would bring such a report to the House in particular to allow us to examine the proposition would be helpful.

[Richard Harrington]

That is a typically sensible suggestion from the hon. Gentleman. I will give that some consideration as to form or whatever, if he will bear with me. I remind hon. Members that the Bill already requires the Government to consult with the ONR and other persons that the Secretary of State considers appropriate. I know it may or must seem appropriate, but the intention is to consult widely.

On ONR capacity, which is the core of many of the amendments, I recognise the importance of transparency and the need for Parliament to be assured that the ONR is adequately resourced to set up the absolutely critical domestic civil nuclear safeguards regime. I have continually stated that we will allocate to the ONR the funding necessary to set up the regime. We have been transparent about the costs and resources of setting up the regime. Current estimates of the set-up costs are set out in the explanatory notes to the Bill. They are under my file, but from memory they are about £10 million in set-up costs and about that annually, which is roughly the cost of Euratom at the moment to perform the same function. I know the figures are approximate, but they give hon. Members a perception of the scale.

The relevant section is “Financial implications of the Bill”, which I will read now, in case hon. Members do not have it in front of them—they will not have to scurry around for it. It says:

“The public expenditure resulting from the Bill are the cost of the establishment and operation of the new regime by the ONR in line with the regulations that will be made under the powers in the Bill.”

That is the £10 million. It continues:

“The costs to set up a UK domestic safeguards regime (which remain subject to further analysis) are potentially up to £10m. This would include procurement of a new IT system, recruitment and training of…inspectors and strengthening institutional capacity to deliver the project. This cost can be met from within BEIS’s Spending Review allocations. The cost of any equipment currently in the United Kingdom but belonging to Euratom is a matter currently under negotiation with the European Union.”

Ideally, we will want to purchase the kit: the cameras, recording equipment and other electronic surveillance equipment and so on. It continues:

“The regime is also likely to involve an ongoing cost of around £10m a year—

sorry, I have said this before, but just to confirm—

“which is in line with the United Kingdom’s current cost of Euratom safeguards activity in the United Kingdom.”

The Office for Nuclear Regulation has also been clear, in evidence to the Committee, and to the Department, about the resources required. The amount has not just come out of the blue. We are working closely together to ensure that the needs of the ONR are met. My Department has already agreed to provide funding for initial work undertaken by the ONR on scoping and additional recruitment.

The ONR currently anticipates that the next tranche of recruitment will be in 2017. To correct myself, when I previously referred to the beginning of 2017 I was mixing it up with the current round; it will be at the end of 2017. That is what it has asked us for; it is not the Government imposing anything or saying we think it is how it should proceed. It is committed to doing whatever recruitment is necessary for what it knows it has to do. I hope that I have assured hon. Members that we are working closely with ONR to ensure that sufficient resource and capacity will be in place to carry out the work needed. It is unnecessary to add to the Bill the level of detail in the amendment. It would not make any difference to a programme that is already costed and proceeding.

On amendments 12 and 13 and the issue of consultation more broadly, the Opposition made some valid points, and I agree wholeheartedly that, as was said on Second Reading as well as today in Committee, consultation is vital in the development of any regulatory system—and even more so when it concerns something of such national importance. As the hon. Member for Nottingham North said, what is important may not be the thing that makes newspaper headlines; the general public may not realise something is important, but here we can all agree that this matter is critical.

I hope that Members on both sides of the Committee will agree that there have been great improvements in recent history in the working relationship between all Governments—I am not making a point just about the present Government—and the nuclear industry regulator, as well as with a wide range of stakeholders across the industry. Probably the main stakeholder, of course, is Lord Hutton, the former Secretary of State in the precursor Department to mine—and, in fact, nearly every other Department; it is very much a cross-party kind of industry. People listening to our proceedings might have felt that the Government had a disagreement with the two unions that gave evidence, but in reality there is far more in common between us—as there is in Committee today—than there are differences.

A good relationship is important, but I accept that that does not stand in the place of appropriate legislative mechanisms for consultation: I do not think that it is just a question of a few people getting around a table and having a meeting. I accept that consultation must be statutory; and, quite properly, it is. Future regimes or Governments, and future stakeholders, might have different views about each other. A Government who did not want a nuclear industry might behave differently, and so might a nuclear industry that did not want such a Government. I accept that things must be formalised.

The Bill therefore places clear requirements on the Government to consult. We have already made it clear that the development of the regulations that underpin the Bill will be subject to detailed consultation with the regulator and industry. Hon. Members will be aware that it is policy for such consultations to be made public, and we intend to do so in this case.

[Patricia Gibson]

What kind of consultation will the Minister undertake with the Scottish Government, and how inclusive will the process be, given that, as I have said before, with regard to regulation, waste and emissions are the responsibility of the Scottish Government?

[Richard Harrington]

If the hon. Lady will bear with me, I would much rather write to her on that subject, because the point is very specific and I do not have the answer to hand. It is a valid question, and she is perfectly entitled to ask it. If the Committee will bear with me, I can perhaps drop her a line or, if she would prefer, have a meeting with her on it. I know the point is important, but it is one point of many. It is not unreasonable, and I am sure she will chase me up on it if I have not responded by Monday, but I promise to do my best.

--- Later in debate ---

[Dr Whitehead]

The Minister is such a reasonable chap that it is fairly difficult to get too excited about some of the potentially contentious issues before us. This afternoon, we have made our points as strongly as we can about our concerns about what one might call the do-ability of the process over the next period.

The Minister said to me this afternoon that he is willing to consider a method by which it would be possible to report to the House what is happening towards the end of the process of recruitment and the shaping up of the ONR to put itself in a position to be able to undertake the duties that we hope it will undertake. If the Minister can devise a method whereby some kind of report to the House may be made, or an opportunity provided to examine the process in front of the House, as far as we are concerned it need not necessarily be on the face of the Bill. For that reason, we do not want to divide the Committee on the amendment.

[Richard Harrington]

I am perfectly prepared to give that undertaking. I cannot think quite how to do that at the moment, but I will give it a bit of thought. What the hon. Gentleman is suggesting is very reasonable.

[Dr Whitehead]

I thank the Minister for that statement.

On the other amendments and the publication of the results of the consultation, I am almost a little disappointed that such an extremely modest suggestion could not be taken on board by the Government, but I hear what the Minister says about the intention to ensure that there is full publication and knowledge of the matters to do with the consultation. Therefore, we will not proceed to a vote on those amendments.

I have, however, one note not of complete concord to strike. An impact assessment should really have been available to the Committee before we started proceedings on the Bill. The Minister said that one will be available before Report, but that means that a lot of the information will not be available to us while we are undertaking our deliberations in Committee. I am glad that an impact assessment will come out, and I appreciate that the Bill was introduced considerably ahead of its anticipated time, but it is essential that impact assessments are available in Committee to inform the decision making of the members. I am sorry that one was not available on this occasion, although I understand the position in which the Minister found himself.

[Richard Harrington]

The hon. Gentleman’s explanation for the lack of an impact assessment is correct. I would have liked to have had it in Committee, but I am much more happy to have made the progress we have. When I say “before Report”, I do not mean the day before Report or something like that. I hope the impact assessment will be more imminently available than that and I fully intend it to be so, but Government procedures have to be gone through. My priority was to get the Bill through, not to stop any form of discussion of the impact assessment or anything like that. I thank him for his good grace and understanding—the position he stated was correct.

[Dr Whitehead]

I thank the Minister for that.

[Dr Whitehead]

My hon. Friend is absolutely right. That assessment would inform this Committee considerably and, since we are not meeting for a few days now, it might be possible for it to be available to us when we come back from the recess. If the Minister can use his good offices to make that available, that would be considerably appreciated by Members on both sides of the Committee.

[Richard Harrington]

I cannot comment on that—not because I do not want to, but simply because it is not within my Department’s regime. I will obviously look into the subject, and we are happy to provide whatever information we have. I was not present in Parliament at the time of the debate—I think it clashed with my Select Committee evidence—so I do not know what was said. The impact assessment, which is directly in my control, will be ready imminently for the hon. Gentleman’s reading. It will not be this weekend—I know he enjoys reading such things over the weekend—but I am sure I can fill one of his weekends very soon.

[Dr Whitehead]

So that we do not finish on an intervention, that is my lot. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.