European Union (Notification of Withdrawal) Bill

Debate between Lord Liddle and Baroness Bowles of Berkhamsted

Committee: 2nd sitting (Hansard): House of Lords
Wednesday 1st March 2017 Lords Chamber

[Baroness Bowles of Berkhamsted (LD)]

My Lords, I am in favour of this group of amendments. Amendment 39, in my name, follows the position that I suggested at Second Reading. The Euratom treaty is a separate treaty and can be separately amended. It provides options for Euratom other than being part of an all-in-one main deal. There is no doubt in my mind—and I have had reason to look at quite a lot of the EU treaties—that Article 106a, which imports various aspects from the main EU treaties, nevertheless restricts it again in the second paragraph by saying that wherever the EU is mentioned it means Euratom and wherever it mentions treaties it means the Euratom treaty. So I believe that they stand alone. My point also deals later on with some of the entanglements, but some of them go in the sense that the two treaties stand alone. If we were left with any parts of the institutions, again, it would be in a very narrow focus, as has already been explained.

My amendment would not stop this Bill giving the Government the power to trigger Article 50 by way of Article 106a, if that power exists in the Bill, but would delay triggering it at least until the Government lay their final draft of the arrangements for leaving the EU before Parliament. By that stage, I hope that the Government would have settled the institutional arrangements for managing the new partnership with the EU.

It may be that at that stage Euratom could slot conveniently into those arrangements and that Euratom would be part of the deal. It could also be that a suitable transition arrangement would be to stay in Euratom a bit longer at least until the UK had substituted all its arrangements at international level. Or it could even be that a UK position outside the EU but inside Euratom could be an agreed way forward in the longer term, with a Euratom treaty change—and there are good reasons for changing that treaty, given international developments.

Noble Lords could ask why some special arrangement should be made for Euratom when there are many other compelling industry problems. One reason is simply that we have the opportunity because there is the separate treaty. The second and compelling reason already alluded to by other noble Lords is that while loss of trading arrangements in other sectors is economically damaging, it will still be possible to buy things—at a price. But outside Euratom, without a replacement agreement, international trade in fissile material and various other products would be illegal. So exiting Euratom and following up with a subsequent free trade agreement is not a viable option. Nor is crashing out without an agreement.

Presently, there are some 13 EU countries in the UK supply chain of fissile materials, and a similar number in other third countries. As we have heard, some of those will be for medical use and cancer treatments, and others for nuclear reactors with some 20% of our electricity generation being from nuclear. Then there is a whole industry of nuclear components, repairs and auxiliary products, and other more remote industries such as automobile, aeronautics, mining and petroleum, that would be affected. Euratom is a key player in research, including fusion. It is the vehicle for the UK’s participation. Keeping some kind of “same as in” arrangement is important for research both at our atomic energy establishments and at our universities.

Modification of institutional arrangements and Commission permissions will be needed whether we are in or out of Euratom because all EU countries will have to have permission in order to trade with us. Nothing should be dismissed prematurely. Euratom operates on a far more intergovernmental arrangement than the EU, which therefore makes looking for an intergovernmental solution conceivable. The role of the Parliament is smaller—for example, seeking opinion rather than requiring consent—and there are provisions for consulting national parliaments. That could provide openings for negotiating new arrangements.

Finally, not many cases have gone to the European Court on Euratom issues. I found a 2011 post-doctoral paper in the German Law Journal that had managed to unearth only 30 cases that had ever gone to the ECJ, compared with around 700 cases annually for the court. Of those 30, only 15 were Commission versus member-state cases. Most notably, in contrast to the EU treaties, expansion of competence and cross-sectoral applications have not happened under the Euratom treaty to any great extent. For example, when the Commission tried to apply civil rules to the decommissioning of UK submarine nuclear reactors and submarine repair, the court found in favour of the UK on the basis that the matter came under security and defence. The court resisted extending the judgment to civilian aspects, although they clearly existed.

We will never escape the effects of some jurisprudence that comes from the European Court because it governs interpretations that the EU will apply to our new relationship. But Euratom is one area where the court is hardly interfering and could be tolerated for longer, at least in transition. So I urge the Government to think seriously about the additional flexibility that the separate Euratom treaty offers. It would be not only the UK that wished to get some kind of regularisation of the arrangements—but in this we can give ourselves, as of right and under our control, more time, more options and more security.

[Lord Liddle (Lab)]

My Lords, I support these amendments. As a member of Cumbria County Council I have an obvious interest in the prosperity of the nuclear industry in our part of the world. I will ask the Minister a number of questions that I hope he will be able to answer.

First, what is the Government’s justification for this policy? All that I have heard so far is something like, “Well, the European Court of Justice has some jurisdiction and we therefore have to come out of Euratom”. Frankly, that is facile. The idea that one would be so ideological as to endanger a major British industry for that reason is extraordinary. What actually is the reason?

Secondly, I would like to see a strategy paper on how the Government propose to manage the new relationship if we are to withdraw from Euratom? How does it fit with the great prominence given to nuclear questions and the priority for the nuclear industry in the Government’s excellent industrial strategy paper? Where is the consistency between this destructive proposal and the priority for the nuclear industry that the Government claim is top of their concerns and work?