Nuclear Power

John Redwood Excerpts

Monday 4th June 2018 Commons Chamber

[Greg Clark]

I am disappointed that the hon. Lady did not continue in the spirit in which she opened her contribution. This is an important moment, and we are beginning a negotiation on a project that will supply energy to this country for the next 60 years, until towards the end of the century, which will create jobs and reduce our carbon emissions. She said that her party supported the proposal and that there was cross-party consensus—one could be forgiven for missing that in her tone—and it is important to establish that, because it is evident that any 60-year project will take place over the life of successive Governments. This country has given nuclear investors confidence over time that there is a strong commitment to such major infrastructure projects, so I hope that she will back the commitments that she and her party made in their manifesto last year to support new nuclear and recognise the considerable opportunities, as she put it, for nuclear power internationally and domestically.

The hon. Lady asked about the financing model. She urged me in a letter to reflect on the recommendations of the National Audit Office and the Public Accounts Committee to explore alternative financing models that can reduce the price of the electricity that is generated. That is exactly what I have set out—I have followed the recommendations of the NAO and the PAC. We are entering a negotiation—I think somewhere in her remarks there was a welcome for that—but the essence of doing so is that a deal has not been agreed. We need to explore that, and it is subject to the very tests that she set out and that the NAO and the PAC observed are required, including on value for money.

On safety, the hon. Lady should be reassured—there are many hon. Members who are familiar with the nuclear industry in this country—that the safety standards operated through our independent nuclear inspectorate are the highest in the world, and that the generic design assessment is the most exacting in the world. We always abide by the rulings and requirements of the independent regulators so that we can have full confidence in the safety of this important industry.

Finally, the hon. Lady mentioned other potential investments, including the proposal for renewable power in Swansea. She knows—we have had exchanges about it across the Dispatch Boxes—that I believe in a diversity of energy supply, but we need to make sure that value for money is offered for taxpayers and bill payers. A rigorous assessment is required and, as I have done today, I will update the House when the process is concluded.

[John Redwood (Wokingham) (Con)]

How will the Government ensure, if they have a stake in the proposed investment, that when it comes to buying power they are fair between that investment and other people in the market?

Nuclear Safeguards Bill

John Redwood Excerpts

Ping Pong: House of Commons
Tuesday 8th May 2018 Commons Chamber

[Richard Harrington]

The best example I can give is the ratification of the agreement with the US—and this will also explain the difference between signing and ratification. Now that it has been signed, it needs to be approved in accordance with the relevant constitutional requirements of the UK and the US, just as will be the case with the other bilateral agreements, but we have built into our timetable sufficient time to allow for the necessary processes in both the UK Parliament—it will come before Parliament this year—and the US Congress, which has a slightly different arrangement involving several days of congressional business. I am very confident, however, that the process will be completed. In both cases, it is unprecedented for this to be anything other than a formality. Both countries will then exchange notes to bring the agreement into force when required, which we fully expect to be at the end of the implementation period, but we have built plenty of time into the process.

[John Redwood (Wokingham) (Con)]

This all sounds like very good progress. Is it true that the other four agreements the Minister says are necessary will be similarly available and ready by March 2019?

[Richard Harrington]

I have every confidence that those agreements will be ready, signed and ratified. I have no reason to believe anything other than that.

If the relevant agreements or arrangements are not in place 28 days before exit day, the amendment in lieu would impose a requirement on the Secretary of State to make a request to the European Council to continue to be covered by the corresponding Euratom agreements—the trilateral agreements between the IAEA, Euratom and the UK and the bilateral agreements between the countries I have mentioned. That request would cover only those areas for which the UK had not signed a relevant agreement or made arrangements for the corresponding Euratom agreement to continue to apply to the UK after exit. I think that answers the questions about process.

I have not mentioned the IAEA itself. We have made very good progress in negotiating with the IAEA, having held several productive rounds of discussions, and it has shared with us the draft voluntary offer agreement and additional protocol. Negotiations on these documents have made good progress, and we expect to conclude a final draft in time for them to be put to the June meeting of the board of governors. The UK has a very strong relationship with the IAEA and continues to support it across a range of nuclear non-proliferation issues—something I was able to reinforce in my meeting last week with the director general, Mr Amano.

Lords amendments 1, 2 and 7 were Government amendments placing the definition of “civil activities” in the Bill. The Delegated Powers and Regulatory Reform Committee recommended that a definition of “civil activities” be placed in the Bill, so far as is possible, supplemented by a power to develop, where necessary, its meaning in regulations. The definition we inserted takes into account the continuing work on the draft regulations that will underpin the Bill, on which we are intending to consult in July. Although the Committee accepted that it might still be necessary to supplement this definition with a power to embellish its meaning in regulations, I have not found that to be necessary, so the amendments remove the existing power to specify in regulations activities that are or are not to be treated as “civil activities” and replace it with a definition in the Bill without creating another power. They therefore reduce the number of powers created by the Bill.

The sunset clause discussed by the Opposition Front-Bench team places a time limit—colloquially known as a “sunset”—on the use of the power in clause 2. Hon. Members may recall that clause 2 contains the power to amend three pieces of legislation in consequence of a relevant safeguards agreement—an agreement relating to nuclear safeguards to which the UK and the agency are parties. That legislation makes detailed references to specific provisions of international safeguards agreements. Those references, including references to specific articles, are likely to change as a result of any amendment of, or change in, the agreements. We therefore believe that the power in the Bill is necessary to make the changes in the relevant legislation to update the references when the new agreements are in place. The Delegated Powers and Regulatory Reform Committee recommended preventing the use of the power after a period of two years had expired. The amendment addresses the principle of the Committee’s recommendation, but provides for a “sunset” period of five years to ensure that the provision can function effectively in all scenarios, including that of an implementation period with the EU.

Lords amendments 5 and 6 deal with statutory reporting. As I have said, I took very seriously the cross-party requests from parliamentarians for regular detailed updates about nuclear safeguards arrangements in this country. The amendments, as amended by the Opposition, would place a statutory duty on the Secretary of State to provide quarterly reports on nuclear safeguards, covering both domestic and international matters, for the first year after the Bill receives Royal Assent.

Domestic Gas and Electricity (Tariff Cap) Bill

John Redwood Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Monday 30th April 2018 Commons Chamber

[Dr Whitehead]

We have to bear in mind that people will be introduced to a new tariff. Indeed, we hope that by the time the market returns, the issue of people remaining on SVTs for years and not switching will be a thing of the past and there will not be SVTs in the system, but also that there will be other tariff arrangements that effectively prevent SVTs from playing the role they have played before.

[John Redwood (Wokingham) (Con)]

In amendment 6, the hon. Gentleman is trying to ensure that people get money off, which we would all like to see, but would it not be necessary to include some kind of rider so that it applies only if people are burning the same amount of energy year after year? If we went from a warm winter to a very cold one, presumably he would not think we could guarantee the same amount.

[Dr Whitehead]

Amendment 6, as I recall, would simply place the Prime Minister’s words into legislation. It was estimated that a saving of at least £100 would result from the measures, and one aim of the legislation was to bring that saving about. It does not mean that the amount would be exactly £100—indeed, had the Prime Minister not reported that to The Sun, we might have got a rather more complex version of that price promise. We are merely reflecting what was heard on that occasion, and I hope the right hon. Gentleman will take the amendment in the spirit in which it is intended.

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[John Penrose]

As my right hon. Friend says, he and I have had many conversations about this over many months. I can only say to him that if his argument is that Ofgem might come up with a version of an absolute cap that is a bit less absolute and a bit closer to what I am proposing—in effect, one that caps the gap: a relative cap—I would agree with him that that is a good thing, but if that is the case, as a source of advantage for the cap, why would it not be even better to go the whole hog and have a relative cap in the first place?

[John Redwood]

Does my hon. Friend think that a relative cap is more likely to deliver a better deal for the customer than an absolute cap?

[John Penrose]

Yes, absolutely. We heard from the hon. Member for Southampton, Test (Dr Whitehead) what I thought was actually rather a good explanation about why such a cap is so wonderful. The Opposition disagree about the purpose, but the fundamental reason why we are all in the Chamber is that we agree about the injustice in the way the energy market works at the moment, which is that people can start off on one tariff and then get secretively pushed on to a much higher one. It is the clandestine mark-up that riles everybody and really upsets people. By definition, a relative cap would affect what is hacking everybody off, and it would be precisely targeted on dealing with the mischief that is the reason behind the Bill in the first place.

Domestic Gas and Electricity (Tariff Cap) Bill

John Redwood Excerpts

2nd reading: House of Commons
Tuesday 6th March 2018 Commons Chamber

[Greg Clark]

It is true that Ofgem has said that it might be challenged in the courts. I do not think we should be afraid of testing arguments in the courts, and I would have preferred to see that happen. The statute that the right hon. Lady mentions would not enable the gap to be closed in a way that would allow competition to continue in the other part of the market—other Members have raised that matter. It would require a closing of the gap, but that could take place by means of the deletion of other tariffs, which is not what we want.

[John Redwood (Wokingham) (Con)]

I fully support the effort to lower energy prices, and competitive markets should be able to do that. Last week we were very short of both gas and electricity. There seems to be a capacity problem, and we are going to close a load of coal power stations. What action is being taken to expand capacity to increase the chance of competitive prices?

[Greg Clark]

The capacity auction arrangements that have been pursued over the last few years have been very successful. We have had a higher margin this winter than last, and the prices of securing that capacity for future years have fallen in successive auctions. My right hon. Friend is right to raise the question, but the framework is actually delivering more resilience than has been delivered in the past.

Nuclear Safeguards Bill

John Redwood Excerpts

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

[Greg Clark]

Let me say two things. First, we want to see maximum continuity of the standards—we do not want any reduction in them, as they have served us well and they give confidence to the industry. Secondly, the hon. Gentleman knows, from his many years in this House, that successive Governments have taken forward our long-term disposal of nuclear waste, and work on a long-term repository is being conducted, but that is a domestic responsibility, as it always has been.

[John Redwood (Wokingham) (Con)]

I welcome the Secretary of State’s approach. Will he confirm it will mean that all the operational work that happens in the relevant plants will continue as if nothing had changed? It is done to a high standard and we wish to preserve those standards.

[Greg Clark]

My right hon. Friend is absolutely right. As I say, I do not think anyone regards the arrangements that have prevailed as deficient, so it makes sense to replicate them as we can. We are being orderly in making sure that we have the right domestic framework in place in good time.

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[Rebecca Long Bailey]

It certainly would be helpful for the House to hear about the discussions that have been taking place between the Government’s legal advisers and the Government. The Library has helpfully provided a number of solicitors who have disputed the point that the Secretary of State puts forward. There is legal discourse going on that disputes the fact that Euratom and the EU are intrinsically linked.

[John Redwood]

Does the hon. Lady remember the long debates on the article 50 letter and the legislation to approve it? It was made very clear in those debates that we would probably have to leave Euratom at the same time and that we would therefore plan on that basis. She and many of her right hon. and hon. Friends voted for the European Union (Notification of Withdrawal) Bill knowing that.

[Rebecca Long Bailey]

I earlier urged the Secretary of State to display a little bit of patience. If the right hon. Member for Wokingham (John Redwood) did the same, he might hear some of the answers he requires in the remainder of my contribution.

Subject to legal debate, it certainly may have been possible—had the Prime Minister not taken the unnecessary step of specifically including Euratom in her letter to the Commission—to retain the UK’s membership of Euratom. At worst, we could have secured a close association with Euratom that was good enough to allow the continuation of nuclear safeguarding within that amended framework.

The Opposition believe that continued membership of Euratom or a close associated status with it is possible and necessary for the efficient, continued working of a whole raft of procedures relating to the nuclear industry, not just safeguarding. We see this procedure of starting to set up identical but separate processes, instead of a relationship with Euratom, very much as a last resort or a back-up measure. We are frankly disappointed that the Government seem to be putting rather more effort into this than into seeking to maintain an arrangement with a body that does all this perfectly well, although the effort put into this Bill is also questionable. I will come to that in due course.

European Union (Approvals) Bill

John Redwood Excerpts

2nd reading: House of Commons
Tuesday 4th July 2017 Commons Chamber

[Margot James]

I welcome my hon. Friend’s intervention. I remember his excellent work when he was a trade representative to Canada and I assure him that the Comprehensive Economic and Trade Agreement negotiations, completed between the EU and Canada, will cover the United Kingdom for as long as we are members of the EU. After that point, it will be up to us to decide the terms of any future trading relationship with Canada, bearing in mind the—I won’t go any further on that.

[John Redwood (Wokingham) (Con)]

Will the Minister give way?

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

Will the Minister give way?

--- Later in debate ---

[John Redwood]

Surely the Minister would confirm that the Canadian trade agreement, along with all the others the EU will have in place when we leave, will novate to us, assuming that both we and Canada wish it to do so? That will clearly be the case, so it will carry on.

[Margot James]

I accept the first part of what my right hon. Friend says, but I do not wish to predict what the UK and Canada may find it important to discuss in their trade relationship in the years to come.

--- Later in debate ---

[Margot James]

I have explained that the purpose of the decision is primarily to support our role as a continuing member of the EU until the negotiations are complete, in two years’ time. Until then we will be covered by it, but after that date we shall have to see what has been agreed during the negotiations. The existing competition agreement with Canada does not allow the sharing of confidential information, but the new one does. I shall return to that point in a few minutes.

The absence of the possibility of exchanging information with the Canadian Competition Bureau is regarded as a major impediment to effective co-operation. The proposed changes in the existing agreement will allow the European Commission and the Competition Bureau to exchange evidence that both sides have obtained in their investigations. That will be particularly useful in all cases in which the alleged anti-competitive behaviour affects transatlantic or world markets. Many worldwide or transatlantic cartels include Canada and, via Canada, the Commission will gain a good opportunity to have access to additional information concerning those cartels.

Co-operation with third-country competition authorities is now standard practice in international competition investigations. In addition to the agreement with Canada, the EU has concluded dedicated co-operation agreements with the United States, Japan, Korea and Switzerland.

I now return to the intervention by the hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards). I omitted to say that even after the Brexit negotiations have been completed, the competition agreement with Canada will continue to apply to British companies if they are trading with the single market of the European Union.

The most advanced agreement is the one with Switzerland, which already contains provisions on the exchange of evidence, and the proposed update would bring the agreement with Canada to the same level as the one concluded with Switzerland.

I am sure Members will agree that the ability to share information is increasingly important for effective and efficient international competition enforcement. Access to information from other jurisdictions can be important to the reaching of a robust enforcement decision. Co-operation and information sharing between jurisdictions can help to ensure that enforcement bodies do not reach different decisions based on different sets of information.

The agreement contains general safeguards for the transfer of information, and additional safeguards for the transfer of personal data. Personal data can be shared only with the express written consent of the person or company to whom they relate. In the absence of consent, such data can be shared only when both competition authorities are investigating the same related conduct or transaction. Furthermore, the transfer of the data will be subject to independent oversight. The agreement also contains safeguards for information provided by a company under the EU cartel immunity or leniency programme. Such information cannot be shared without the express written consent of the individual or company that provided it.

As I have noted, the decisions will have no financial implications for the UK. I confirm that I do not consider that any of the Bill’s provisions interfere with the rights set out in the European convention on human rights, so no issues arise in connection with its compatibility with those rights.

[John Redwood]

I wonder why there is no cost. Surely, if there is to be an added layer of complexity in the sharing of information—which may be a good thing—there must be a cost in respect of the time of the officials involved.

[Margot James]

I am assured that no costs are associated with these decisions, other than those that arise in the normal course of Government business.

It is intended that the Bill will come into force on the day of Royal Assent. For the reasons that I have outlined, I commend it to the House.

Energy Price Cap

John Redwood Excerpts

Monday 3rd July 2017 Commons Chamber

[Greg Clark]

The hon. Gentleman talks about energy strategy, and it is right that the Government have taken a decision—this was ducked by previous Governments for decades—to renew our nuclear power stations that are coming to the end of their lives. He will know that the SNP Government in Scotland agreed to extend the lives of nuclear power stations there, and he will also know about the impact of our success on renewable energy, specifically offshore wind, in Scotland. I have had fruitful discussions with colleagues throughout Scotland, especially in the remote islands, about the future possibilities for that.

On Ofgem’s response to my letter, I have set out clearly that it has said it will work with and consult consumer groups, and come up with a range of options. The £1.4 billion detriment has to be eradicated, and that is the test of whether the proposals are acceptable. I am sure that the House wants to scrutinise them as much as I do.

[John Redwood (Wokingham) (Con)]

My right hon. Friend inherited a system that relies increasingly on dear energy, which drives up household bills. Is there anything that he can do to bring a greater amount of cheaper energy into the mix so that bills reduce in five or 10 years’ time?

[Greg Clark]

My right hon. Friend makes an excellent point. We need to ensure that we meet our important climate change commitments at a competitive cost—for consumers and for businesses—and that we obtain the industrial benefits from having a supply chain in this country. That is exactly why we devote a chapter of the industrial strategy Green Paper to future plans to make the most of the clean energy transition in all respects.