Industrial Strategy

Drew Hendry Excerpts

Monday 27th November 2017 Commons Chamber

[Greg Clark]

My hon. Friend is absolutely right, and I am grateful for his question. One of the challenges is that we have is to make sure, right across the economy, that we are taking the opportunities to raise the productivity and performance of sectors in which many people are employed. The tourism and hospitality sectors are very important in that. They feature in the industrial strategy as two areas where it is particularly important to work together with firms big and small, as we are doing, to establish training institutions and spread technology so that we can raise their performance to compare with the strongest performance elsewhere in the economy.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

I thank the Secretary of State for advance sight of the statement.

We welcome, finally, this overdue industrial strategy. We welcome also the recognition of the grand challenges of artificial intelligence, clean growth, future mobility, and the ageing society—all of which are very important to Scotland. It therefore says everything that there has been no consultation with the Scottish Government nor any attempt to match the Scottish Government’s economic plan, particularly given that the Scottish Government lead in life sciences. How will that working with the Scottish Government be taken forward?

This is not an outcomes-based approach such as we have seen working successfully in Scotland. A plan without knowing its destination is just a plan, and it does not guarantee success. If it did, it would answer the big question on skills. The Secretary of State said that there was no point in having short-term strategy, but it has been pointed out, in terms of the Budget, that the training and learning budget fell by 13.6% per person in real terms between 2007 and 2015. With the uncertainty over Brexit already affecting EU nationals, perhaps he could tell industries where the skills that will be required in the short to medium term will come from.

While we welcome the £7 billion, which is a very big number, for productivity, why, according to the Red Book, does it apparently not come into effect until 2022? Do we not need to address productivity now?

[Greg Clark]

I am grateful to the hon. Gentleman for his questions. Working together with the Scottish Government is very important. On some devolved matters, it makes sense for them to be joined up. Last week, I had the privilege of meeting Keith Brown, the Scottish Government Minister responsible for this area. When the hon. Gentleman gets a chance to read the paper, he will see that there is substantial reference to our close working with the Scottish Government. It is very important that we do that.

On skills, the hon. Gentleman is absolutely right. It is foundational that we should equip our people with the skills that they need to take on the jobs that are being created. He might have missed the fact that we have increased very substantially the number of hours that people are being taught in further education colleges, so as to raise them in line with the best in the world. That is a very important contribution to this.

On the extra investment that the Chancellor announced, the national productivity investment fund is to be further extended to 2022. That is why the figure that he announced was for that particular year.

Nuclear Safeguards Bill (Sixth sitting)

Drew Hendry Excerpts

Committee Debate: 6th sitting: House of Commons
Tuesday 14th November 2017 Public Bill Committees

I am sorry that we did not adopt a purpose clause for the Bill, because that would have additionally spelt out how it stands in the scheme of things. The new clause would underline how the Bill stands by—slightly extraordinarily, I agree—requiring the Secretary of State to achieve an outcome that would make it non-functional. We are living in difficult and new times, and that is no odder than some of the other things in the Bill. If we can put that on the face of the Bill to framework what is being done about our future relationship with Euratom, that would be a good purpose, and I hope all members of the Committee would unite around it.

[Drew Hendry]

We support the new clause, which would put in place a transition period during which the UK would have the option to seek and secure an association with Euratom. The Scottish National party does not support the decision to exit Euratom, and the Bill continues to fall significantly short of answering vital questions about the UK’s nuclear future, particularly given the fact that the skilled and trained inspectors are at best unlikely to be in place in time. This Government have put nuclear energy at the heart of their energy strategy, and yet they are leaving the agency that oversees the security of markets, businesses and workers in that sector. Given that the UK Government have poured resources into costly and ineffective nuclear power projects such as Hinkley C, the Euratom divorce leaves questions unanswered and threatens to prove highly complex. That is why a transition deal is not only desirable but may turn out to be essential, and we will be supporting the amendment.

[Preet Kaur Gill (Birmingham, Edgbaston) (Lab/Co-op)]

I just want to make some suggestions. The concern is that to import fuel and parts from existing nuclear reactors into the UK—as we have already heard—we shall need to have established a regulatory and inspection structure, obtain approval from the International Energy Atomic Agency and then negotiate and ratify nuclear co-operation agreements with a number of Governments. There is an assumption that we should not make: we cannot be sure that nuclear co-operation agreements will just be nodded through, because we know some of the complexities that we already have with other countries, such as the USA. Therefore, I do not think it is sensible to leave Euratom until these agreements are actually in place, and that is why I support these amendments.

--- Later in debate ---

[Dr Whitehead]

I thank the Minister for giving a constructive response to the new clause without going quite as far as saying that he agrees with it. I hope that he will be able to come up with something that, while not necessarily this proposal, maximises the transparency of the process. We are not only talking about the outcome and a report of the outcome that will come to Parliament. Because of the unique circumstances in which we are legislating while the treaty is being discussed and legislating for something that is quite central to that treaty coming about, it is important we have transparency on the journey as well as the conclusion. If the Minister can work out a device that allows that to happen, which I think he indicated he wishes to think about seriously, we would be happy not to press this. I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 5

International agreements: devolved authorities

“(1) The Secretary of State must consult the persons or bodies listed in subsection (2) before concluding—

(a) a relevant international agreement, or

(b) any agreement with EU Member States relating to nuclear safeguarding.

(2) The persons or bodies are—

(a) Scottish Ministers,

(b) Welsh Ministers, and

(c) a Northern Ireland devolved authority.”—(Drew Hendry.)

Brought up, and read the First time.

[Drew Hendry]

I beg to move, That the clause be read a Second time.

New clause 5 states that the Secretary of State must consult certain persons or bodies—the Scottish Ministers, Welsh Ministers or a Northern Ireland devolved authority —before agreement with EU member states relating to nuclear safeguarding.

As mentioned earlier, without confirmation of a transitionary deal, the Government leave a host of unanswered questions about nuclear safeguards. Falling back on World Trade Organisation rules risks the UK breaking international law. As a nuclear weapons state, the UK currently meets some of its safeguards obligations under international nuclear law through a voluntary offer agreement with the International Atomic Energy Agency, to which the Euratom community is also a signatory.

A report by the Nuclear Industry Association UK found:

“Falling back on World Trade Organisation (WTO) arrangements in the absence of a replacement safeguards agreement with the IAEA and/or an implementation period with Euratom risks putting the UK in breach of its obligations under international nuclear law and would have a significant impact on the UK nuclear sector.”

Those unanswered questions are big issues. Will the UK Government ensure that the UK’s nuclear facilities are subject to Euratom’s safeguards regime? If they are not to be monitored by Euratom’s inspectors, will the UK negotiate a replacement for the voluntary offer agreement with the IAEA to remain in compliance with international law? How will the UK Government design, resource and implement new UK safeguarding arrangements in line with accepted international standards?

We have already heard that the Minister cannot guarantee that fully trained, certified professionals will be available. What good are safeguards if there is nobody qualified to implement them? While safeguards and safety are reserved, areas of regulation such as waste and emissions from nuclear sites are devolved.

In the light of the Minister’s earlier comments on issues of national security that could arise, the Scottish Government must be involved in the negotiations regarding nuclear safeguards, and the UK Government must involve the Scottish Government at every stage of the negotiation process to ensure that the deal reached works for the people of Scotland. That is equally important for the other devolved Administrations in Wales and Northern Ireland.

Conservative Governments have a poor track record on Scotland and nuclear programmes. They must ensure that Scotland is not turned into a dumping ground for nuclear waste. I say to the Minister that as matters proceed in the House, there is an opportunity for his Scottish colleagues in the Tory party to help us stand up for Scotland’s interests. We look forward to seeing what they do. I hope the Minister accepts that it is only sensible and proper that the Scottish Government and the other devolved authorities are involved in this process in a meaningful way and involved in the negotiations, particularly given that the stakes are so high.

[Richard Harrington]

I thank the hon. Gentleman for contributing new clause 5. It might surprise him that although I cannot accept what he asks for, I have a proposal for him and the Committee to consider. The new clause addresses the issue of consultation with the devolved Administrations on new international agreements relating to nuclear safeguards. As hon. Members will be aware, the UK Government are responsible for negotiating and signing these international treaties. The ratification of treaties is subject to the Act I mentioned before, the Constitutional Reform and Governance Act 2010, which requires them to be laid before Parliament.

The Government have the power to conclude international treaties under prerogative powers but cannot automatically change domestic law or rights and cannot make major changes to constitutional arrangements without parliamentary authority. That will remain the case for international agreements relating to safeguards that are currently under negotiation, such as the new nuclear co-operation agreements with the US, Canada, Japan, Australia and so on that we have mentioned, and the agreements with the IAEA.

The measures put forward in the hon. Gentleman’s new clause would be a significant departure from the usual position—I know he knows that; it is why he proposed it and it is the policy of his party—and I do not consider it appropriate to accept them. As I said, nuclear safeguards are not a devolved matter, but I nevertheless reassure hon. Members that the Bill already ensures an appropriate level of transparency and scrutiny in respect of international agreements relating to nuclear safeguards, which I have been through before.

New clause 5 refers to “relevant international agreements”, which is a defined term as set out in the Bill. The existing drafting of Bill allows for the inclusion of any relevant international agreements as designated by the Secretary of State, so it is unnecessary to detail individual agreements in the Bill. While I appreciate the sentiment of the new clause, the role of relevant international agreements is already subject to a clear and open process under the Bill. I have explained that before and I do not intend to repeat it all again, unless any members of the Committee wish me to. It is a clear and open process.

On the specific focus of the new clause—consultation with the devolved Administrations, which I know is the hon. Gentleman’s main interest—it appears to require formal consultation with the devolved Administrations prior to our concluding international agreements relating to nuclear safeguards or any agreement with EU member states relating to nuclear safeguards. As I am sure hon. Members are aware, the Bill extends to and applies to England, Wales, Scotland and Northern Ireland, and in the case of amendments, to the same extent as the provision amended.

As I have said, nuclear safeguards are not a devolved matter. Despite the responsibility legally being the UK Government’s, I hope that our general approach of having an open and transparent process, which is evolving, would be described as reassuring. The Government are acutely aware of the value of consultation in developing this new regulatory regime—obviously with the ONR, but also with the industry generally and formally and informally with parliamentary colleagues. As I have explained before, the nuclear safeguards regime regulations will be subject to detailed consultations with the regulator and industry. Industry stakeholders across the UK, which of course includes Scotland, Wales and Northern Ireland, will be widely encouraged to take part in that consultation. The outcome of the consultation will then be made public, in line with the Government’s general policy on consultations.

The public consultation on the draft regulations will not be the first or only opportunity for stakeholders to be made aware of our intentions, and it will not be their only opportunity to provide the Government with their views. We have had detailed discussions with the nuclear industry since the referendum, and we will continue to work closely with it and other stakeholders when taking the development of the new regime forward, including the development of regulations. My officials have already been in discussions with colleagues from across the devolved Administrations and the relevant environment agencies, such as the Scottish Environment Protection Agency, Natural Resources Wales and so on, to ensure effective collaborations on key Euratom-related policy areas—including the domestic nuclear safeguards regime—and will continue to do so.

I have been clear that the relevant international agreements will be subject to a clear, open and transparent process involving a high degree of consideration, scrutiny and external engagement. However, I do appreciate the concern behind new clause 5, which is why I already committed to the hon. Member for North Ayrshire and Arran to address her query on consultation with the Scottish Government by writing to her on the subject. I would therefore propose instead, if it will be satisfactory to the hon. Member for Inverness, Nairn, Badenoch and Strathspey, to write directly to Scottish Ministers, Welsh Ministers and the Northern Ireland devolved authority on the subject for consultation. In the light of these explanations, I hope the hon. Gentleman feels able to withdraw his amendment.

[Drew Hendry]

I thank the Minister for his attempts at reassurance. I know that the Minister is genuinely trying to concede some ground and I appreciate that. However, his attempts at reassurance do not really hit the mark. There should be negotiations with the Scottish Government and the other devolved authorities in the light of the devolved responsibilities. It just is not good enough that after the deal is done a consolation might be undertaken with Ministers. That is not the way that this should happen at all. There are significant impacts on the nuclear industry and those devolved responsibilities.

Question put, That the clause be read a Second time.

--- Later in debate ---

[Dr Whitehead]

On a point of order, Mr Gray. I join the Minister in thanking you for your exemplary chairing of our sessions. [Hon. Members: “Hear, hear.”] I thank Mr McCabe, too, for his assistance with chairing.

I would also like to thank all Committee members for the constructive and helpful way that we managed to proceed. We had our disagreements. We put those squarely in the open and discussed them, and as a result of those discussions we had a number of exchanges that look to be constructive for the future. I am grateful for the spirit in which Committee stage has been conducted, and I look forward to Report and to the stages that follow with some optimism for the Bill. I am pleased to have taken part in such a constructive endeavour on all our parts.

[Drew Hendry]

On a point of order, Mr Gray. May I, very simply, associate myself with the remarks made by the Minister and the shadow Minister?

[The Chair]

All three points of order are of course entirely bogus and out of order, but they are none the less very welcome.

Question put and agreed to.

Bill to be reported, without amendment.

Nuclear Safeguards Bill (Fifth sitting)

Drew Hendry Excerpts

Committee Debate: 5th sitting: House of Commons
Tuesday 14th November 2017 Public Bill Committees

[Dr Whitehead]

My hon. Friend is absolutely right. That is underlined by the fact that, as has been alluded to on several occasions, we are not talking about a common or garden piece of legislation that simply places something on top of something else and thereby moves us forward. We are talking about a complete replacement for something that existed previously and will no longer exist. It will have no back-up or reference if we have not got everything in new regulations, replacing the previous regulations that no longer exist or have any currency as far as the UK is concerned.

With this legislation, we would be placing it on trust that everyone had got everything right first time as far as the new regulations were concerned, yet it has been stated in Committee that it is quite possible that there will be further amendments to those regulations, because we will need to be ready on exit day for the basic provision—

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

Is it not true that the aspects of the Bill that the Minister described as “non-controversial” would be so were we staying in Euratom? However, because we will have to move to a new system and there can be no guarantee, as the Minister himself said, of having the professionals in place to deliver the regulations, there are likely to be new regulations. We must therefore have these protections in order to scrutinise them.

[Dr Whitehead]

The hon. Gentleman is quite right. The procedure that we are looking at is very likely, in my view, to lead to far more than technical changes. Because there is a body of existing legislation, technical changes can be made, and to some extent I agree with that, because that is how the House works on occasion. If the Government are considering minor or technical changes, simply updating legislation to make it compatible with other pieces of legislation, or proposing to make the regulations in one Bill compatible with new regulations in another, that goes through under the negative procedure, and everyone accepts in the House that that is how we do it.

Lots of things go through in that non-controversial nature. I accept that, but it is not the case here. That is not what we are doing. As the hon. Member for Inverness, Nairn, Badenoch and Strathspey said, we are not tweaking or amending something, but providing something absolutely new. We hope it will be okay, but I think we freely agree that there will be a number of occasions when quite important subsequent regulations will need to be made to beef up the procedure, because even though it is on the road on day one, it is not necessarily as good as it might be. Indeed, the Committee heard that in evidence. We have not had any assurances this morning that we have misunderstood how the new regulations will work or that guarantees can be given that they will be of the technical nature we are more used to in ordinary dealings.

--- Later in debate ---

My view is that that is probably not good enough. There are still Henry VIII clauses in the first instance, but at least the amendment goes some way towards ameliorating the unacceptable way in which those clauses work at present. To my mind, that is the very minimum that the Minister ought to accept as a change in the arrangements. If he cannot accept those changes, we will want to pursue the matter quite a long way further.

[Drew Hendry]

I will make a few short comments to indicate Scottish National party support for the amendment. The shadow Minister referred to our being in new times; indeed, we are in uncharted territory. The SNP has great concerns about the possible use of Executive powers, particularly the prospect of a lack of scrutiny. Let us consider how the decision to leave Euratom came about: representatives found out about the decisions via a bit of small print in the Bill. That does not give the Government a good track record in how transparent they are willing to be. No warning was provided and no indication was given of the impact. Frankly, there was a blatant lack of transparency.

We call on the UK Government to ensure that future decisions are taken in a transparent and consultative way and in an inclusive manner. At the moment, the set-up does not give anyone reassurance that that will happen, so we support the amendment.

[Richard Harrington]

I have been very interested in our tour around Henry VIII and the French royal family and its possible member, Henry IX, which you did not rule outside the scope of discussions, Mr Gray, but you are entitled to use your judgment. However, neither Henry VIII nor Henry IX had to come up with a nuclear safeguards regime; I wonder what would have happened if they had.

In all seriousness—[Interruption.] The hon. Member for Southampton, Test is on great, humorous form, as well as making serious points, which I will try to answer, I hope, in a suitably serious manner. The fundamental difference between us, forgetting the “may” and “must” difference for the moment—we will come on to that—is about the actual powers and why we need them. I find the Henry VIII expression a bit misleading—not that the hon. Member for Southampton, Test is trying to mislead the House—given the way it is always referred to in the press and so on. We are talking about very limited non-primary legislation here.

Changing minor references, whether saying that that calls for Henry VIII powers or not, would not be a good use of parliamentary time, given that Governments have to govern and Parliament must in some way ration its time so that it can deal with the fundamental matters that it has to deal with. I know the Opposition’s view generally on Henry VIII powers, but I think there should be some leeway within that for what genuinely needs to be delegated, and which is comparatively minor in nature, so that we can act quickly. I am sure the hon. Gentleman and the Opposition Front Bench recognise that in practice. Sometimes principle is a great thing in life, but it has to be adapted pragmatically to deal with circumstances. I will park that for the moment.

As it stands, clause 2 will create a limited power, enabling regulations to amend the Nuclear Safeguards and Electricity (Finance) Act 1978, the Nuclear Safeguards Act 2000 and the Nuclear Safeguards (Notification) Regulations 2004. It will be a narrow power to amend references in those laws to provisions of the existing agreements with the IAEA. Those references enable the IAEA to carry out its activities in the UK, including, importantly, by providing legal cover for the UK activities of its inspectors. The references and the legal cover they have will need to be updated after the new agreements have been concluded with the IAEA; it cannot be done before.

At present, our nuclear safeguards regime complies with international safeguards and non-proliferation standards agreed between the three parties—ourselves, Euratom and the IAEA. The UK applies those standards primarily through its membership of Euratom. They are set out in two tripartite safeguards agreements between the UK, the IAEA and Euratom: the voluntary offer agreement and the additional protocol. At the moment, they rely on the UK’s membership of Euratom. Following our withdrawal from the European Union and Euratom, these agreements will become ineffective. That is why the Bill has to ensure that a domestic civil nuclear safeguards regime is put in place. The UK will need to conclude new agreements with the IAEA to detail the international safeguards and nuclear non-proliferation standards with which the UK agrees to comply. Without those, no regime we could have will be recognised by the international community.

Amendment 5, as tabled and eloquently articulated by the hon. Member for Southampton, Test, intends to require—rather than enable—the Secretary of State to make regulations under clause 2. I welcome the Opposition’s change of position on clause 2 since Second Reading. Amendment 5 clearly recognises the need to have the power in clause 2 to ensure the necessary legislative amendments are made in time to give effect to the new IAEA agreements, and to therefore ensure that the UK has a civil nuclear safeguards regime that gives effect to international standards on the UK’s withdrawal from the Euratom treaty.

However, making the Secretary of State’s power in clause 2 mandatory does not provide any additional value. Following the negotiation of the new agreements, the references to the old agreements in the legislation mentioned in this power automatically become ineffective —they will not work. The inspection of UK facilities by IAEA inspectors is a vital part of our agreement with the IAEA. It is not in anyone’s interest to fail to make the necessary consequential amendments to existing safeguards once new agreements with the IAEA are agreed. Requiring the exercise of the power in the Bill is therefore unnecessary.

I want to assure hon. Members that we are currently negotiating new agreements with the IAEA on the same principles as the existing agreements and that the consequential changes are expected to be minor. That will ensure that the IAEA retains its right to inspect all civil nuclear facilities and continues to receive all current safeguards reporting, ensuring that international verification of our safeguards activity continues to be robust.

--- Later in debate ---

[Dr Whitehead]

I am disappointed by the Minister’s response to the amendments this morning. He is right to point out that they in some ways represent what might be construed as a little bit of a change, perhaps a mellowing, from our position on Second Reading on the Floor of the House. It is not that we have changed our positions on Henry VIII clauses, but that addressing what is in the Bill is the important thing to do in Committee. We need to decide whether to amend it rather than try to chuck the whole thing out. That is the difference in our discussion this morning. I thought the amendments were constructive.

Although the Minister has mentioned that Government changes to these pieces of legislation would have to be reported to Parliament, that is a very different procedure from the procedure being suggested this morning.

[Drew Hendry]

The Minister himself has said that principles sometimes have to be adjusted pragmatically. The problem is that the Minister cannot tell us at the moment which principles and for whom they would have to be pragmatically adjusted.

[Dr Whitehead]

The hon. Gentleman is absolutely right because we are in the dark as far as what is going to come out and the IAEA are concerned. We think that an agreement will be reached and that there will be a new voluntary treaty arrangement. We think that when that new arrangement has been reached, it will be suitable for the purposes for which we have made all these legislative changes. Indeed, the legislative changes will be scrutinised effectively by the IAEA before that treaty can come about. The IAEA wants to be sure that we have put a regime in place that does the job in changing the relationship of this country as far as nuclear safeguarding is concerned from Euratom to ONR.

--- Later in debate ---

[Dr Whitehead]

I appreciate what the Minister says, but that does not knock away the fundamental principle that, except under very exceptional circumstances of national emergency, things that amend primary legislation by secondary legislation should not be before this House. Essentially, the Minister has summed up the case from his point of view that he thinks this is essential. It is just that there could be some time constraints.

[Drew Hendry]

On time constraints, as the Minister has just said, is it not the fact that when Governments have to act in haste, it is even more important to have the scrutiny of the decision they are taking?

[Dr Whitehead]

The hon. Gentleman is absolutely right. I accept that in cases of dire emergency, where the enemy is about to invade or some such, action needs to be taken that may not necessarily carry out the full intent of the parliamentary procedure. We are not in that position. As the Minister has said—he put it very well—there could be time constraints, that’s all. The limited time available for us to get this done could be problematic.

Oral Answers to Questions

Drew Hendry Excerpts

Tuesday 7th November 2017 Commons Chamber

[Claire Perry]

As the hon. Gentleman will know, Norway is currently a little bit unsure about the level of its own financial commitment. However, it has an excellent Energy Minister, with whom I have had multiple meetings and conversations. It seems strange to me that, having taken the hydrocarbons out of the North sea basin, we should not co-operate to put the carbon dioxide back, so there are frequent conversations. The hon. Gentleman will have seen the clean growth strategy, on which we would like very much to work with other countries—not just Norway, but the United States and Canada as well.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

We have just heard about the broken promise to establish a world-leading carbon capture project at Peterhead. That is another betrayal of the North sea industry: £1 billion was never invested, and 600 jobs were never created. Is it not true that when it comes to the North sea, this Government are no good at anything except breaking promises?

[Claire Perry]

Some might say that the Scottish National party is not very good at forecasting oil prices. As I have already said, no Governments have taken a very substantial bet in the past few years—I call it a bet because it is not cost-effective—but, as the hon. Gentleman will know, organisations such as the Oil and Gas Climate Initiative are asking us, “How can we work together in a public-private arrangement to deliver the best, most cost-effective solutions?” We need to create some technology that we can export, like the oil and gas services that have delivered such economic value in the North sea.

[Drew Hendry]

Support for the North sea was also promised by the former Prime Minister in January 2016, when he said:

“An Oil and Gas Ambassador will be appointed to…promote”

oil and gas

“around the world”.

However, the Under-Secretary of State for Business, Energy and Industrial Strategy, the hon. Member for Watford (Richard Harrington), told the Press and Journal recently that it was a “good idea” but he was “not aware” of it. He said:

“It’s not crossed my desk”.

Whose desk did it cross? Or was it just another fantasy— a false promise from a “say anything, do nothing” Government”?

[Claire Perry]

I can understand why there is not much solar installation in Scotland: it appears that the sun never shines north of the border.

I will take no lessons from the hon. Gentleman about support for the North sea, which is a vital industry. I cannot answer his point about the ambassador, but I shall be happy to discuss it with my colleagues.

Nuclear Safeguards Bill (Second sitting)

Drew Hendry Excerpts

Committee Debate: 2nd sitting: House of Commons
Tuesday 31st October 2017 Public Bill Committees

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

Q You laid out your concerns about the pace and timescale for the replacement requirements for leaving Euratom. You said there was a lot to be done to discover what ownership details were there, their future trading relationships and the nuclear co-operation agreements with third parties and, obviously, workers from the EU. Assuming a date of leaving Euratom of March 2019, when is the latest date that you would say would be required for you to have clarity on those agreements going forward?

Angela Hepworth: I think it is really a process of increasing confidence. It is not so much that there is a particular date where you need to have everything signed and sealed, but we need to have a process between now and the exit date where we have confidence about the regime that will be in place at that date. We would very much support having a transitional or implementation phase, with as much continuity in the existing arrangements as possible. If that could be confirmed early, that would be a great benefit to the nuclear industry, to give them the confidence that they will have continuity in the existing arrangements for a period after the exit date.

[Drew Hendry]

Q So first of all, give them that confirmation of continuity, and also how long would you like to see that transition period last?

Angela Hepworth: I do not think that is a question I can answer. We would like a period of transition. I think that is probably a question for the Government—what they think is appropriate in the circumstances, given what needs to be done within that timeframe.

[Drew Hendry]

I am surprised that you do not have an idea of what you might require as part of the industry—that you might not have an idea of how long you might need as a run-in time to adjust to new regulations.

Angela Hepworth: I think it is more a question of understanding the timeline from the Government and the ONR that they need to have these arrangements in place. Speaking from an industry perspective, we welcome certainty and stability. An early signal that there would be a period of continuity after the Euratom exit date where the arrangements for trade would continue to apply would be very reassuring.

[Trudy Harrison (Copeland) (Con)]

Q To declare my interest, my husband and various other family members work at Sellafield in my constituency of Copeland. I have heard loud and clear that there is a need for a critical path for us all to have sight of, to understand how this process is running, and also the transition period. I think it would be helpful to understand what outcomes we would need from that transition period from other countries outwith Europe, but also for us to understand how it is necessary for other countries to have this in place. How do other countries rely upon the UK to continue with their business in the nuclear industry?

Angela Hepworth: If we are thinking about countries outside the EU, there are a number of countries where it is either illegal or a policy requirement that they have a nuclear co-operation agreement in place if they are going to export nuclear material. The countries that the UK Government have rightly prioritised for negotiating agreements are the US, Canada, Japan and Australia. In each case the UK Government will need to negotiate a nuclear co-operation agreement with that country to enable the trade.

Why does it matter? For example, our Sizewell B power station relies on Westinghouse technology, so we rely on our links with the US in order to be able to operate and maintain that power station. If we wanted to import a part from America, or to draw on expertise and services from America for that power station, there has to be a nuclear co-operation agreement in place between the UK and the US in order to do that. As we understand it, the US will not agree a nuclear co-operation agreement unless the UK has a safeguards regime in place, which is one reason we see the Nuclear Safeguards Bill as a key priority, to put that in place. Each of those countries will have its own internal processes in order to agree nuclear co-operation agreements.

As I understand it, for example, in the US it will have to be agreed by the President and it will have to go through Congress. We have been telling Government we would like to see, as an industry, a timeline that sets out for our benefit the steps that need to be taken in order to put a safeguards regime in place, to get it approved by the IAEA, to conclude the negotiations with third countries, but also the ratification processes for those countries, in order to understand the end-to-end process and how those various components interact, so that we can have the safeguards regime in place and also the nuclear co-operation agreements with those third countries. Then, as I said, we need a future agreement with Euratom: there needs to be an agreement in place, negotiated between the UK and Euratom, which explains the framework for nuclear trade going forward once we have left Euratom.

Smart Meters Bill

Drew Hendry Excerpts

2nd reading: House of Commons & Money resolution: House of Commons & Programme motion: House of Commons & Ways and Means resolution: House of Commons
Tuesday 24th October 2017 Commons Chamber

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

As my hon. Friend the Member for North Ayrshire and Arran (Patricia Gibson) pointed out earlier, the SNP welcomes the progress on smart meters. The Scottish Government have set out developments for the roll-out in their Scottish energy strategy, which will obviously encourage uptake.

As we have heard from many Members, the benefits of smart metering technology are more accurate bills, more convenience and better energy. The technology can enable customers to better manage their energy, so consumers will be able to get a better deal, and could help consumers with more competitive tariffs. There are, though, serious concerns that must be dealt with before we can welcome everything in the Bill or, indeed, the whole roll-out of smart meters.

The first concern is on data and privacy. As we heard from my hon. Friend the Member for North Ayrshire and Arran, GCHQ did some work on the vulnerability of smart meters and found “glaring loopholes” that would allow access to meters. There is not only the potential for the abuse of customer information, but a security concern. If smart meters can be accessed in that way, it is potentially dangerous for national security. It is incumbent on the Government to ensure that proper controls are in place to make sure that that cannot happen.

It is important that consumers know that their data will be safe. I urge the Government to look into measures that allow the consumer to have more control over and ownership of their own data. They should have the right to look after their own information. There are clearly issues of connectivity and reliability, particularly with respect to customers’ concerns about whether units will work when they switch energy suppliers.

[Stephen Kerr (Stirling) (Con)]

Does the hon. Gentleman agree that the issues with the first generation of smart meters could easily give rise to frustration among consumers? They are encouraged to monitor their energy usage and costs and to shop around, but when they do shop around, they discover that their smart meter is no more and has deceased.

[Drew Hendry]

The hon. Gentleman makes a pertinent point. The Government need to put the consumer confidence issue front and centre and deal with it.

We must consider the costs and the potential increase in bills to pay for those costs. The right hon. Member for Don Valley (Caroline Flint) mentioned the fact that the consumer is not necessarily put first in the process. Surely, it would be appropriate for the outcome of a cheaper bill—a better deal for the consumer—to be put right at the heart of the delivery of the smart meter programme. I am not convinced that it is currently, so I suggest the Minister come back with some reassurances on how it will be.

With respect to the serious problems with consumers’ bills, the smart meter roll-out does not deliver on some of the big elephants in the room. My hon. Friend the Member for North Ayrshire and Arran mentioned Hinkley Point, one of the biggest white elephants around. The cost-benefits will be negated by the costs of Hinkley and the strike price that has been agreed, which nearly doubles the cost to consumers.

Smart metering does not tackle other issues for consumers in the different parts of the nations of the UK. For example, in my constituency and others in the highlands, we still have the inequity of consumers paying up to 6p more per unit than consumers in other parts of the UK. That cannot be right. When the Minister looks into measures to reduce costs for people in their homes, I urge him to consider some of the more pressing issues that are adding to fuel poverty.

There is, perhaps, one issue that the Minister could consider in taking forward smart meters, particularly when we get to the next generation of smart meters. We have talked a lot about the ability to switch tariffs and to monitor how much is being spent, but how easy would it be to allow consumers the ability to switch suppliers at the touch of a button in the next generation of smart meters? That is within the gift of the technology. Why is it not within the scope of the measures that we are taking forward?

I will not take up the full time that is available to me. I will just finish with a few questions. Will the Minister come back and state clearly, today and in future meetings as the roll-out goes forward, what will be done in practical terms to ensure that vulnerable people will not miss out in the roll-out of the smart meters programme? When will we see details on the next generation of meters, and will the Government consider those payment and switching options that I mentioned? When will we see the detailed roll-out of the strategy to understand how everyone will be included in this by 2020?

Carbon Capture and Storage

Drew Hendry Excerpts

Thursday 19th October 2017 Westminster Hall

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

It is always a pleasure to serve under your chairmanship, Sir David.

I congratulate the hon. Member for Middlesbrough South and East Cleveland (Mr Clarke) on leading today’s debate and speaking so eloquently about the benefits of carbon capture—and, of course, on throwing a strong pitch for his own constituency into the mix as well. In fact, all Members in this debate have spoken about the benefits of carbon capture, so I will not cover the ground that others have already covered, apart from perhaps touching on a couple of the points made. I will concentrate more on the policy.

As we know, carbon capture and storage has huge potential for decarbonising fossil fuels and it could be highly effective in reducing greenhouse gas emissions, as we have heard from many Members today. However, it was telling that, in the last contribution, the hon. Member for Stockton North (Alex Cunningham) referred to “tiny steps”, because that is indeed what these are: tiny steps on the way.

In Scotland, the SNP Scottish Government are already consulting on a new climate change Bill, with proposals—along with interim targets for 2020, 2030 and 2040—for a 90% reduction by 2050. That is as far as the reduction can go under current scientific advice. The independent expert advice from the Committee on Climate Change has said that that is the limit of feasibility and at the moment there is not enough evidence to set a net zero target.

However, I would caution the hon. Member for Middlesbrough South and East Cleveland. If he is successful and gets a promise about an installation, there is an elephant in the room. It is not the white elephant of Hinkley Point, which I will refer to later; it is the elephant that is Peterhead, where there was a shameful decision by the UK Government to pull the plug on a long-planned development. Peterhead is not far from the Aberdeen South constituency and it is where we saw a hugely damaging decision being taken, without warning, that will create a legacy that will deter investment incentives and dent consumer confidence.

That decision was a manifesto betrayal. That should be key—it was in the Conservative manifesto that the project would go ahead, and the cost to the taxpayer was £100 million. Peterhead was set and ready to accept a £1 billion contract and expected 600 jobs. I would therefore caution the hon. Gentleman about getting too excited about any promises, because by axing that project at the 11th hour, George Osborne committed what can only be described as a betrayal of the people in Peterhead.

Even now, the commitment to CCS, welcome as this small U-turn is, is still fairly mealy-mouthed, because in the detail it says: “subject to cost reduction”. That is the bare minimum of commitment, and the Carbon Capture and Storage Association has pointed out that it is counter to the way that technology actually develops. We have to invest in order to get the experience to get the drive costs down, so it is very difficult to see how an energy policy cherry-picked in this way, with these announcements and selected U-turns, will really provide a cohesive way forward for the industry. And all the while, in the background, we have the expensive and regressive nuclear policy at Hinkley C.

The SNP Scottish Government support the Paris agreement’s zero-emissions aim and we are providing significant funding in Scotland to establish the feasibility of the Acorn CCS demo project at St Fergus. Incidentally, that project is also supported by EU science funding of €1.9 million, and with SNP Government support the low carbon and renewable industry has created 58,500 jobs. That was the figure in 2015, which was up by a third from 2014.

[Claire Perry]

I know that the marching orders for the SNP, if not always for the hon. Gentleman himself, is that its Members have to be as gloomy as possible about everything at all times, but it is, frankly, really very sad that he has made no reference today to the high-wind offshore floating wind plant, which is one of the most innovative and creative things that is being done. It is being done by the UK Government, because this area is not a devolved matter, as he knows. That has been done because of the combination of the policy, Government leadership and work with industry to drive down the costs of offshore wind, exactly as we propose to do with this technology. Let us focus on what can be delivered and acknowledge that no country in the world is taking a major step into unreformed CCUS at the moment, and we want to do this together, so perhaps we could have just a bit more cheerfulness from north of the border.

[Drew Hendry]

I am grateful to the Minister for her short speech, or lecture, about how we should look at Government policy. I believe it is quite common now for us to be told that we should just hope for the best—that we should all be doing a “rah-rah” and saying, “This is all going to be great in the future”. No amount of deflection from the Minister will get away from the point that the UK Government, at the 11th hour, cancelled the Peterhead project, with no warning to the people involved, and that is shameful. On the point of the floating wind farm, which was launched yesterday, she will be aware that Nicola Sturgeon was there, not only to welcome the project but to launch it officially.

By making these policies—by making these small U-turns and small concessions—the Government are doing some welcome things. However, we want to see further, more significant U-turns. We want to see a significant investment, because, as has been stated, it is time for a long-term, robust UK policy for a low-carbon future. That is needed urgently. I urge the Minister to come up with some actual details about what the Government are going to do in the future to deliver it.

International Investment

Drew Hendry Excerpts

Tuesday 17th October 2017 Commons Chamber

[Greg Clark]

I agree: it is a proud boast that we are the No. 3 nation in the world. We are by no means the biggest nation in the world, but to be No. 3 behind the US and China in terms of foreign direct investment is a real vote of confidence in this economy, and that is something I and my team and my colleagues across Government will always work hard to extend.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

I am grateful to the right hon. Gentleman for an advance copy of his statement.

The Scottish National party supports measures that best protect our citizens and measures that relate to national security. However, it is not clear why these proposals have been brought forward now, so can the right hon. Gentleman tell us why now, and what the UK Government’s long-term strategy is?

We also believe it is vital that Parliament is fully involved in this process. Will the right hon. Gentleman confirm that that is the case?

Finally, on military technology, the UK Government must look to their own track record. Will the right hon. Gentleman confirm that the same degree of stringent oversight and scrutiny is to be applied to arms sales abroad?

[Greg Clark]

I am grateful to the hon. Gentleman for his questions, although I am surprised that he did not want to welcome the investment decision in Bombardier. In response to his—perfectly reasonable—question, “Why now?”, it is right to upgrade our systems for scrutiny periodically. A national security risk assessment was carried out recently, which correctly pointed out that smaller companies have the potential to pose a threat to national security, and these measures respond to that. We are publishing a Green Paper; Parliament is being invited to scrutinise it, as the essence of a Green Paper is that it is published for Parliament, as well as people in the outside world, to examine. On military technology and the scrutiny of arms sales, I think the hon. Gentleman should know that that is already subject to a licensing procedure.

Nuclear Safeguards Bill

Drew Hendry Excerpts

2nd reading: House of Commons
Monday 16th October 2017 Commons Chamber

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

It is woefully typical of the approach of this Government that despite their intention to abandon Euratom, this Bill falls significantly short of dealing with vital issues for the UK’s nuclear future. Without any confirmation of a transitionary deal, Ministers have left a host of unanswered questions around nuclear safety. The nuclear industry, the medical profession, our research sector and universities—virtually everyone associated with nuclear power or related supply chain industries—have asked for the answers to those questions. Breaking the news to Parliament that we will leave Euratom in a line of the Bill’s explanatory notes shows wilful disrespect to them.

It also betrays an all-too-common disregard for the Scottish Parliament and the Scottish Government, because while safety is reserved, areas of regulation are devolved. That regulatory role is just part of why the Scottish Government must be involved in discussions over Euratom as things move forward.

[Alex Chalk (Cheltenham) (Con)]

Do we not have to be very careful about our terminology? The Bill has absolutely nothing to do with safety standards as in the prevention of nuclear accidents—it is about safeguarding, which has an altogether different legal meaning. Is it not very important that we do not scaremonger about this?

[Drew Hendry]

It is very important that the unanswered questions are dealt with in this insufficient Bill—[Interruption.] Well, a lot of people will be concerned about the implications of what is not covered in this discussion, some of which I intend to cover.

With regard to nuclear safety, it is critical that we continue membership—or, at the very least, associate membership—of Euratom. Falling back on WTO rules could risk the UK breaking international law. It will come as no surprise that we in the SNP believe that the safest nuclear power policy is no nuclear power. We are determined to deliver just that.

[Kit Malthouse (North West Hampshire) (Con)]

Will the hon. Gentleman give way?

[Drew Hendry]

I am going to make some headway.

In Scotland, we are already showing what can be achieved by renewable energy. New storage solutions for renewables are developing further access to the vast potential from offshore wind and tidal, meaning that an abundance of low-cost, clean energy will be generated. In contrast, this Government continue to chase the folly of new nuclear such as the white elephant that is Hinkley C, leading to exorbitant costs for consumers and leaving yet another burden for future generations to clean up—and that is if there is no more immediate crisis caused by failure or deliberate act leading to nuclear incident. I also wonder what care and attention has been given to people in Wales, as only days ago it came to light that about 300,000 tonnes of “radioactive mud”—a by-product of this Government’s nuclear obsession—is to be dredged and moved to Wales. I will leave that to hon. Members from Wales to debate further.

My constituency is in the highlands, which is not only the natural home of much of our renewable generation and its potential, but home to Dounreay. It is a place where the impact and long-term costs, both financial and environmental, of nuclear are well known. Those costs should not be repeated. The Minister pointed out that the responsibility for domestic nuclear safety resides in the UK, but that does not mean that the UK has a good record, especially prior to EU membership. Indeed, most of us living in the area can recall the various worrying nuclear material scares, and we are well versed on the dangerous radioactive levels recorded on Caithness beaches.

Each scare should remind us of why our membership of Euratom is so important—because while they can never be perfect, agreed EU directives over safety have been essential in ending some of the hair-raising practices in the UK nuclear industry. Who could forget that in 2006 the remains of actual plutonium rods were found on the beach at Sandside, in Caithness? Hon. Members earlier mentioned watertight provisions, but one retired Dounreay worker who was interviewed at the time spoke of a catalogue of errors, accidents and bad procedure, including claims that workers commonly disposed of radioactive material in the sea at night to avoid it having to appear on official documents. He told a reporter that he once saw a man

“using a Wellington boot tied to a piece of string”

to take test samples

“because the proper equipment had rusted”

beyond use. Mr Lyall, the retired worker who spoke out, had been a plant supervisor for many years.

Although the UK Atomic Energy Authority—as it would—denied that Mr Lyall’s claims were true, it did admit:

“There were practices from the 1950s to the 1960s that we would not repeat today.”

Those practices occurred before we were members of Euratom. In the same statement, the UKAEA told reporters:

“Standards have risen in health and safety and environmental protection, and government legislation has also been tightened considerably.”

Our membership of the EU, and especially of Euratom, has had a positive impact on the improvement of the standards that the UKAEA spoke of. In Scotland, although we are working towards a nuclear-free future, we have to maintain safety at existing facilities during that process, and we must plan for a future of decommissioning.

[Robert Neill]

I understand the point that the hon. Gentleman is making, but is not this the rub? He and I would both prefer to remain in Euratom if we could, but since the legal opinion, not just on this side of the channel but in the Commission, is that we cannot—that has not been challenged by any third party—we need this Bill to achieve exactly the laudable objectives that he and I share.

[Drew Hendry]

I thank the hon. Gentleman for his contribution, but he highlights the fact that we have not seen that legal opinion or any indication that it is watertight. We should have the opportunity to see it; perhaps it will be forthcoming as a result of this debate.

[Mr Jenkin]

Will the hon. Gentleman give way?

[Drew Hendry]

No, I am going to make some progress.

As I was saying, in Scotland, although we are working towards a nuclear-free future, we have to maintain safety at existing facilities. The current challenges exist in the other nations of the UK; indeed, they are multiplied by this Government’s obsession with pursuing costly and dangerous new nuclear. That obsession has put nuclear at the heart of energy strategy, while the Government’s other obsession with hard Brexit would see them leave the very agency that oversees the security of markets, businesses and workers in the sector. To most people looking on, that is baffling and dangerous. To us, it is yet another day in the growing chaos of this Tory Government.

Leaving Euratom serves no purpose other than to put at risk standards that have been in place for many years. Hon. Members do not even need to take my word for it. The Nuclear Industry Association has said:

“The nuclear industry has been clear that our preferred option is to seek to remain part of EURATOM, and that the UK government should negotiate this with the European Commission. The industry in both the UK and Europe want to maintain the same standards as apply now, and have worked well for more than 40 years. Without access to Euratom’s NCAs and common market, the nuclear new build programme, nuclear operations and the decommissioning mission could be seriously affected.”

Everything that can be done must be done to mitigate the risk of any incident, the effects of which would be measured in millennia. Failures in nuclear safety and decommissioning carry a potential catastrophic impact so great that our closest eye and the very best and most up-to-date research are required to avoid such outcomes.

[Tom Pursglove]

For the very reasons that he has just alluded to, will the hon. Gentleman confirm whether the Scottish National party will support the Bill at 10 o’clock tonight: yes or no?

[Drew Hendry]

What we would support is a sensible approach to maintaining either full or associate membership of Euratom.

The European regulator oversees nuclear matters as diverse as plutonium storage and medically vital radiotherapy supplies. For example, our membership of the Fusion for Energy programme allows the UK to receive contracts. So far, the UK supply chain has been awarded contracts worth €500 million, and that would have been expected to rise to at least €1 billion. Leaving Euratom seems to serve no purpose other than to satisfy this Government’s hard Brexit mantra.

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

Does my hon. Friend agree that there seems to be a rigid consensus among Conservative Members that we cannot stay in Euratom if we leave the EU, and that they refuse to accept that legal opinion on the matter is divided? Does he agree that it is utterly incumbent on the Secretary of State to explore this divided legal opinion to see whether the UK can, indeed, stay in Euratom?

[Drew Hendry]

I agree that there are clearly unanswered questions about the legal position, which has not been challenged, exercised fully or even debated to any degree. Not only are our safety standards, research opportunities and business at risk, but we may see the most dramatic and negative effects of any withdrawal in the medical field.

[Mr Jenkin]

Will the hon. Gentleman give way?

--- Later in debate ---

[Drew Hendry]

No, I am going to make a bit of progress.

In its paper on radioisotopes and Brexit, the Royal College of Radiologists outlines the crucial role that radioisotopes play in medical advances. The majority of the UK’s supply of radioisotopes, used in scanning and the systemic and internal treatment of a wide range of cancers, is imported from Europe and further afield. The most commonly used radioisotope is used in 700,000 medical procedures each year, and global demand is growing by 0.5% a year. Radioisotopes are used for the diagnosis and treatment of various diseases, including cancers, cardiovascular conditions and brain disorders. The UK does not have any reactors capable of producing those isotopes, and because they decay rapidly—often within a matter of hours or days—hospitals in the UK cannot stockpile them and must rely on a continuous supply from reactors in the EU.

[Mike Wood]

Does the hon. Gentleman accept that the isotopes he refers to are not special fissile nuclear material, and so they are not regulated by international safeguards such as these and would not be affected if we left Euratom?

[Drew Hendry]

It is telling that Conservative Members are willing to ignore all advice from experts in the nuclear industry in order to uphold their position that we must have the hardest possible Brexit.

[Kit Malthouse]

Will the hon. Gentleman give way?

[Drew Hendry]

No, I am going to make some progress.

As I have said, the UK does not currently have any reactors capable of producing such isotopes.

[Greg Clark]

Perhaps I can help the hon. Gentleman. Euratom places no restrictions whatsoever on the export of medical isotopes, and so there are no further protections needed. It is irrelevant.

[Drew Hendry]

I do not think that the Minister is reflecting the view of the experts in the industry who are affected, and I will come on to underline that with some quotes.

Euratom supports the secure and safe supply and use of medical radioisotopes. If and when the UK withdraws, it will no longer—this is the critical point—have access to Euratom’s support, ending the certainty of a seamless and continuing supply. The Royal College of Radiologists points out that the supply of radioisotopes would be disrupted by leaving the single market, because transport delays will reduce the amount of useful radioisotopes that can be successfully transported to their destination.

[Kit Malthouse]

Will the hon. Gentleman give way?

[Drew Hendry]

No, I am going to make some progress. As I pointed out, radioisotopes decay within hours or days of production. The most common isotope has a half-life of just 66 hours. The consequences of a disrupted radioisotope supply was made clear not only during the incident that the right hon. Member for Wantage (Mr Vaizey) mentioned, but during the channel tunnel fire in 2008. That led to a reduction of the availability of radioisotopes, and to cancelled procedures. So, for patients, there can be no no-deal scenario. Such a scenario is a ludicrous proposition with regard to leaving the EU; as practitioners point out, however, in relation to medical isotopes it is a matter of people’s very lives.

Leaving Euratom will increase the difficulty of maintaining nuclear fuel in the longer term and threaten research funding into medical isotopes.

[Kit Malthouse]

Will the hon. Gentleman give way?

[Drew Hendry]

No, because I am going to conclude.

Most concerning of all is that leaving Euratom has the potential to reduce standards of protection for workers and the public. Since the UK Government have committed to a nuclear future, it would be pushing their irresponsible actions to critical levels if they were to forsake membership or, at the very least, associate membership of Euratom. Until there is no nuclear in Scotland—on our land, or in our waters—we should have the right to remain a member of it.

--- Later in debate ---

[Chris Green]

I appreciate the broad consensus in the Grand Committee Room, but not everyone had an opportunity to speak in that debate. No doubt there will be a transition period of some sort, but whether we have an associate membership or just a very close association at the end of it—like the association we will have with the European Union—we will look at what the EU does and how it goes about things, and we of course want similar standards. We are not looking to leave the European Union and then to reduce and cut all kinds of standards.

[Drew Hendry]

Will the hon. Gentleman advise us what kind of transition he would propose?

--- Later in debate ---

[Drew Hendry]

My hon. Friend makes a key point about the breadth of issues that are not covered by the Bill’s narrow focus. Government Members would like to separate safety issues and the unanswered questions that are legion here tonight, but that is the real problem.

[Patricia Gibson]

I think all Opposition Members sense the unease with which Government Members are unwilling to talk about the Bill’s narrow scope, which leaves so many uncertainties and questions. We are all rightly concerned about nuclear safety, but in our discussions let us remember to give a break to the brave officers of the Civil Nuclear Constabulary, who work day in, day out to maintain nuclear safety across the UK.

--- Later in debate ---

[James Heappey (Wells) (Con)]

I am genuinely pleased that this issue has been given such importance. That is not because, as some might have suggested, it is a sort of remoaner ambush, but because it reflects the importance of our nuclear industry, which in turn reflects the importance that the Government have attached to nuclear technologies in the UK as part of our industrial strategy. The valued engagement of the industry is most welcome. It is great to hear its very legitimate concerns over Euratom. The industry would obviously want no change whatsoever: of course not; nobody can blame it for seeking certainly and therefore advocating the status quo.

Let us be clear: there is absolutely nothing wrong with Euratom. It has proven very effective at regulating the nuclear industry. If the treaty did not require us to leave after triggering article 50, I am pretty sure that we would not do so, but as it does require it, a new arrangement must be sought. I genuinely have no doubt that this new arrangement will be characterised by keen agreement and co-operation between the UK and our EU partners. The nuclear industry is, after all, international and interdependent. We have significant French ownership of our nuclear power stations, and further international ownership is promised with the remainder of the new nuclear fleet. Similarly, Germany has a great deal of nuclear waste being processed in Sellafield. With the UK, France and Germany so interdependent on one another on matters nuclear, one might expect the wind to be on our backs, not in our faces, when seeking a deal on our future relationship on nuclear matters.

An associate membership is probable—highly probable, even. For the more ardent Brexiteers among us, that should not bother us either. Euratom has been a remarkably consensual organisation—I do not believe there have been any votes—and therefore the jurisdiction of the EU Court should not be a concern for us in this case. However, regardless of that probable outcome, we need something else in case good sense deserts our EU partners and nuclear safeguarding becomes part of the wider wrangling over Brexit. That is why the Government are to be congratulated on introducing the Bill so soon. This regulation will give the nuclear industry the certainty that it so reasonably demands. Nuclear safeguarding is not something on which we take risks. Pursuing a favourable post-Brexit relationship with Euratom is important and should obviously be our preference, but legislating for increased powers in the Office for Nuclear Regulation so that Euratom’s capabilities are duplicated as being sovereign within the United Kingdom seems very prudent at this early stage.

After this debate, it is important to pause and reflect on what neither the Bill nor Euratom does. Euratom does not do nuclear safety—that is already regulated in the United Kingdom by the ONR. My constituents who live as neighbours to Hinkley Point know that the safety regulations that govern the operation of that site are entirely unaffected by the Euratom issue. Nor does the Bill affect isotopes used in medicine. The scaremongering on this has been unfortunate, and I hope that it will not continue as the Bill progresses.

[Drew Hendry]

I am interested in the hon. Gentleman’s comments. Does he, then, disagree with the Nuclear Industry Association? It has said:

“Leaving the Euratom Treaty without alternative arrangements in place would have a dramatic impact on the nuclear industry including the UK’s new build plans, existing operations and the waste and decommissioning sector which all depend, to some extent, on cooperation with nuclear states.”

[James Heappey]

I am absolutely at a lost to understand the SNP’s position on this. We have an excellent relationship with Euratom, which we want, ideally, to continue as an associate member. But, as the hon. Gentleman quite rightly points out, the nuclear industry is very concerned that, if that arrangement turns out not to be possible, we should have some sort of contingency in place to ensure that the industry can continue to operate safely and co-operate internationally. That is exactly what the Bill will do, so I do not understand why he is not welcoming it with open arms.

[Drew Hendry]

I thank the hon. Gentleman for giving me the opportunity to clarify. The key is in the final part of the quote, which talks about the impact on existing operations and the waste and decommissioning sectors. That cannot be carried forward by the Bill in isolation; there are many unanswered questions.

[James Heappey]

I am not sure that the hon. Gentleman adds anything to his earlier intervention. There is a system in place through Euratom for the regulation and safeguarding of the movement of fissile materials and other issues connected to nuclear regulation. We would ideally stay within Euratom as an associate member, but if that is not possible, we seek to legislate for a contingency, so that we have those powers sovereign. One would assume that the Government—I think that this has been made very clear in the Secretary of State’s opening remarks and all the Government’s commentary on the matter thus far—expect to continue everything exactly as it is, so that we can continue to operate seamlessly internationally. The Bill will provide a contingency plan to avoid the hard exit or cliff edge that so many in this place and in the media seem so vexed about. I just do not understand why the SNP does not welcome the Bill, when it appears to give the party exactly what it wants by delivering certainty post Brexit.

There are two issues that the Bill does not cover, quite understandably, but that are worth discussing. First, nuclear technology, materials and engineers need to be able to move freely, so we must achieve a quick and lasting agreement with other countries. Our nuclear programme is international, and we must recognise that in the arrangements that we make. I have every confidence that we will, and that the countries with which we seek to work will warmly welcome our approaches.

Secondly, there is the matter of funding for research and development. As we decarbonise our heating and transport systems, our demand for electricity will rise sharply. Renewables and our new nuclear programme are the answer for now, but the prize that we have all been looking for, for half a century, is fusion power. That has been eight to 15 years away for a very long time, and quite possibly it is still eight to 15 years away. When the Select Committee on Energy and Climate Change went to the United States last year, however, it was clear that progress is starting to be made quickly on that side of the Atlantic. When we returned home, we were pleased to find after further inquiries that progress on this side of the Atlantic has been even quicker still. The UK, with our European partners, is ahead on the matter. It is absolutely vital that the Government commit, as they have done, to continuing to fund the research and development of fusion power. The opportunities are huge, and it is a prize on which the Government should keep their eyes.

In conclusion, I absolutely understand the concerns that nuclear industry representatives have raised with me, and I understand why they want certainty. They work in an industry in which there is absolutely no appetite or tolerance for risk, so it is entirely understandable that they seek the certainty of continued membership of Euratom. They should be reassured that the Government’s first preference is associate membership of Euratom, as a result of which nothing would change. If that is not possible, how prudent it is for the Government to seek, at the very first opportunity, to legislate to provide a contingency to assure the UK nuclear industry that safeguarding regulations are firmly in hand. Those regulations will be familiar to the industry, because they will look remarkably similar to the ones that we have now.

[James Cleverly (Braintree) (Con)]

I rise to support the Bill, unsurprisingly, because as colleagues well know, the decision to leave the European Union also meant, by extension, a decision to leave Euratom. This issue has been debated on the Floor of the House, but that is the position of both the UK Government and the EU27. The Government have therefore made it clear that they intend to honour their commitment to the International Atomic Energy Agency by setting up a domestic safeguarding regime. The regime will ensure that there is no interruption to the British civil nuclear industry and, indeed, that the production of nuclear energy and the various other workings enabled by Euratom will continue without pause.

It would be unacceptable for the UK not to have a safeguarding regime in place on its exit from the European Union. Although it is absolutely appropriate for colleagues and Opposition Members to scrutinise and perhaps amend the Bill during its passage, it would be foolhardy in the extreme—in fact, deeply inappropriate—to try in any way to prevent it from ultimately making its way through the House. That is why I am very pleased that the Labour party made it clear, after what I must say was an elegant period of anticipation-building delay by the hon. Member for Salford and Eccles (Rebecca Long Bailey)—she teased us about the position of Her Majesty’s loyal Opposition until the ultimate line of her speech—that it will let the Bill progress, so that any such concerns are alleviated.

I have listened with interest to a number of speeches—no, to them all—and I was particularly exercised by some of the points made in interventions by SNP Members. As I said in an intervention and will now repeat—this has been highlighted by the Nuclear Industry Association, on its Twitter feed during the debate—there is not just a semantic difference but a fundamental difference between nuclear safeguarding and nuclear safety. I will give SNP Members the benefit of the doubt and say that the subtlety of that difference was perhaps lost on them, because the alternative assumption I would have to make is that they intentionally blurred the distinction between the two to scare the British people on what this is about, and I am certain that they would not do so intentionally.

SNP Members also placed great store on the supposed risks to medical radioisotopes. Again, I took the time, while keeping one ear on the speeches, to look at the briefing paper from the Nuclear Industry Association that they mentioned. It makes reference to concerns about radioisotopes, but when I followed the links I found a circuit of links using basically the same phrase on the concern about five radioisotopes. I finally got to what I think was the end of the chain, and I discovered that, in response to the squeezing of the supply of medical radioisotopes, Euratom and other agencies had set up the European Observatory on the Supply of Medical Radioisotopes. That body has worked in the intervening years to ensure that there is a timely supply of medical radioisotopes. That goes to the heart of showing that the concerns raised—again, inadvertently, I suspect—by SNP Members and others about the diagnostic ability of the NHS somehow being compromised by a lack of radioisotopes is in fact a fallacy.

[Drew Hendry]

Will the hon. Gentleman give way?

[James Cleverly]

No, I will not give way, because a number of Members still wish to speak. I apologise; I would normally give way, but I am about to conclude because I know we are short of time.

The Bill will give the Office for Nuclear Regulation additional powers. It will give the Government the opportunity to use limited powers to amend the Nuclear Safeguards and Electricity (Finance) Act 1978, the Nuclear Safeguards Act 2000 and the Nuclear Safeguards (Notification) Regulations 2004, so that references in legislation to existing international agreements can be updated. I appreciate that Opposition Front Benchers have concerns about that, but it strikes me as a remarkably pragmatic attempt to get important business through the House in a timely manner, so that our important nuclear industries are not compromised. I commend the measure to the House.

[Kwasi Kwarteng (Spelthorne) (Con)]

My only regret in speaking is that, given the constraints on our time, you have imposed a six-minute limit on our speeches, Madam Deputy Speaker, and I feel that I could speak for a long time on the important subject of our debate.

The Bill is precisely the sort of responsible measure that a good, decent, forward-looking Government would introduce to avoid the cliff edge that we are told is a problem with so-called hard Brexit. The debate is serious, but the Opposition are clearly not taking it seriously. I am disappointed that so few of our Opposition colleagues participated. I am surprised that we have had a string of Conservative speakers, without even a bat squeak from the Opposition in response.

From the speeches of members of the Opposition parties, one would think that we faced disaster if we left Euratom. We will not face disaster precisely because of the Bill. The hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) quoted a nuclear expert and used the phrase, to which he did not return, “without alternative arrangements”. That is key. The expert said that, if we left Euratom “without alternative arrangements”, there would be a problem, but the whole point of the Bill is to set up those alternative arrangements, without which we would face a more difficult situation. The hon. Gentleman could not have made a more ridiculous point.

[Drew Hendry]

I am grateful to the hon. Gentleman for allowing me to respond. Does he accept that the industry would prefer to stay in Euratom or have an associate membership to “alternative arrangements”?

[Kwasi Kwarteng]

I know that the hon. Gentleman has been listening to the debate with rapt attention, and he will have noticed in the course of several hours of discussion that we are leaving Euratom because, if he remembers, we voted to leave the EU last year. It was not the British Government who said we had to leave Euratom, but the Commission. The EU itself said that, as a consequence of voting to leave the EU, we had to leave Euratom, and we have taken it at its word. Perhaps we should not have done; perhaps the hon. Gentleman has intelligence that we do not possess, but we took it at its word and, consequently, it is quite proper to seek, through the Bill, to provide the “alternative arrangements” that industry experts have suggested are necessary to smooth the transition process.

I also wish to point out how depressingly gloomy a lot of the SNP’s language has been. We have been told that we are useless negotiators and that the state of Britain’s diplomacy is woefully inadequate. We have been told all sorts of things about how bad things are going, and of course nothing could be further from the truth. It is a complete fantasy. In fact, our diplomacy is widely respected throughout the world. We have a highly effective, well trained force and a disciplined, professional cadre of people. It is nauseating to hear SNP Members decry and denigrate our civil service in that way, and it is indicative of their lack of seriousness that only two Members from that particular party are gracing us with their presence in the Chamber.

With a couple of minutes to spare, I want to talk briefly about Britain’s traditions in nuclear power. I know it was uncomfortable to hear, but my hon. Friend the Member for North West Hampshire (Kit Malthouse) was right that we are leaving Euratom at a moment when the countries of Europe, such as Germany, Italy and even Austria, are retreating from civil nuclear power. It is not something they want in their energy mix. The response of the German Chancellor to the Fukushima disaster in 2011 was to suggest that Germany would not pursue nuclear power and would shut down its nuclear power plants. Indeed, it is revealing that Frau Merkel is now in conversation with the Green party in Germany. Her coalition is dependent on Green party co-operation, and those of us who follow these things will know that the Green party is singularly opposed to nuclear power. It is the one thing that will not happen if it enters the Government in Germany, once the Government have been constituted, so there is no way that the Germans will develop this line of research. Similarly, we understand that Austria has banned the transfer of nuclear material.

[Drew Hendry]

The hon. Gentleman rightly points out where he disagrees with politicians of other places or has criticisms of them, but will he withdraw his earlier remark about the SNP criticising civil servants, which we have never done? All we have done is criticise the failure of this Government.

[Kwasi Kwarteng]

Forgive me, but one of the hon. Gentleman’s colleagues mentioned—we can all look at Hansard tomorrow—that our diplomacy was being ridiculed and was somehow deficient. If someone says that diplomacy is deficient, they are criticising the diplomats who are conducting that diplomacy, and I am afraid that most of those diplomats are indeed civil servants, so that was criticism of our civil servants, with no cause whatever—it was just a form of abuse. I know that SNP Members get caught up in their rhetorical exercises and like to make a big splash in the House of Commons, but I thought that was completely unnecessary.

Lastly, when it comes to freedom of access and foreign scientists and nuclear power experts coming to Britain, there is no country that is more open, from the academic point of view, to foreign talent and ingenuity than Great Britain. We have dozens of Nobel prize winners, many of whom came from outside the United Kingdom. We also have a great record in practical science and in businesses that have developed from the fruits of that practical science, so again this scaremongering and project fear is completely misplaced. I suggest to those hon. Members that they just move on.

Vauxhall (Redundancies)

Drew Hendry Excerpts

Monday 16th October 2017 Commons Chamber

[Claire Perry]

My hon. Friend is absolutely right. It is vital that we maintain those skills. It is worth noting that there is a significant cluster of other businesses in the region, which is home to Bentley Motors, Jaguar Land Rover, Getrag Ford, Toyota’s engine plant and Leyland Trucks. It is really important that we continue to invest in those skills to minimise job losses and to ensure that the country does not lose the talent that people have built up over the years.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

At the heart of this announcement, there are hundreds of families who are now worried about their futures. They will need more from the Government than warm words, so the Minister should ensure that they get the meaningful support that they need for their future.

Although the parent company has cited declining market share as a reason for its decision, it is also quoted as saying that it halted UK investment plans because of the Government’s lack of

“visibility on the future trading relationship with the EU”.

Figures show that direct foreign investment has vaporised in the UK. Instead of being given a level playing field —let alone the possibility of market advantage—business, workers and communities continue to be let down by this long and humiliating Brexit chaos. Will the Minister admit that to secure the future of jobs and investment, the only sensible option is to remain in the single market and the customs union?

[Claire Perry]

As I have said, I do not think that anyone wants us to re-run the Brexit debate. We need to get on with this and make sure that the outcome—it represents the majority view in the constituencies that the majority of Government and Opposition Members represent, so we must deliver on it—is the best possible result for the workers of Ellesmere Port, the workers that support the industry and workers right across Britain’s industrial and manufacturing base.