(5 years, 1 month ago)
Commons ChamberThe hon. Gentleman may have raised this issue four years ago—we could talk about this for a long time. A lot of consideration has been given to the potential of tidal power. It is incredibly expensive and was ruled out on those grounds. We are looking at a regulated asset base model for the financing of big energy efficient projects. We will continue to keep that under review, but of course it has to offer good value for taxpayers’ money. The path to net zero that we are setting out will enable further opportunities to consider different technologies.
I welcome the launch of the Ayrton fund and the £1 billion for the creation of new technologies. We also have a proud history of commitment to developing countries through international aid. How will the fund fit into our existing commitments?
(6 years ago)
Commons ChamberWell, anyway, the House is consumed by a state of jollity, and that is always much to be encouraged. Finally, I call Mary Robinson.
As increasing numbers of high street banks are closing, post offices offer a potential solution for communities suddenly left without a branch facility. However, sub-postmasters are not yet able to carry out the full range of transactions that customers expect. What can the Minister do to help our post offices, which are vital to the survival of our high streets, to perform the banking functions that have been recommended?
(7 years ago)
Public Bill CommitteesQ
Dr Golshan: Our aim, currently, is to have a system in place that enables the UK to fulfil its international obligations by March 2019, which is when we intend to leave Euratom. I have been very clear in the past—I will repeat it here—that we will not be able to replicate Euratom standards on day one. That is unrealistic, and given the scale of what needs to be put in place, I fear that if we go that way, the best will become the enemy of the good. So it is important that we focus our efforts on delivering a regime that enables the UK to meet its international obligations.
Q
Dr Golshan: There are a number of aspects. The first one is to ensure that the secondary legislation is in place at the right time, because that provides us with the mechanisms to exercise our powers. The Bill itself is an enabling part—it gives us the fundamental powers—and the secondary legislation gives us the mechanisms to deliver. Secondary legislation will also give us some certainty in relation to what guidance and standards we need to develop to make this happen.
For us, we need to have an IT system; a safeguards information management system. It is a live system that enables us to get data from our licensees, to process those data and to put them into a reporting format that the IAEA currently receives from Euratom. We are working on that; it is at proof of concept stage at the moment. Once we have established that we are able to do it, we will need to move into a phase that determines whether we are going to do it in-house, tender it out, or have a combination of the two.
Q
Dr Golshan: I should say that, on negotiating nuclear co-operation agreements and completing the discussions with IAEA and Euratom, although we provide advice to the Government, it is not for me to sit here and determine or estimate a timetable. It is really strictly for the Government to conduct those negotiations, and I think that it is perhaps a question better answered by them.
Again, we need a brief answer, because we are drifting slightly wide of the terms of the Bill. We have plenty of time, but even so.
Rupert Cowan: Let me bring it within the terms of the Bill, to make you feel happy, Mr Gray. Obviously the Bill enables those discussions, as has been described, but the chances of being able to follow either of those routes successfully before March 2018 are zero. The possibility of associate membership is not zero but that possibility, having been fulfilled if counterparties are willing to allow it, would not allow us either the opportunity or the time to negotiate the necessary co-operation agreements with the important counterparty jurisdictions that we need.
The second alternative that you suggest is of maintaining full membership for a period, so maybe it could be extended by two years with a sudden cut-off being agreed, and being able during that two-year extension to renegotiate NCAs. That is probably the most practical and preferable solution, but whether or not members of Euratom would be prepared to allow the UK to do that is a very different question.
Unfortunately, it is inevitable that we will be faced with discussions about renegotiating our NCAs with key counterparties who are neither motivated to agree quickly nor able to, because of their own international obligations of recognising the adequacy of our safeguarding arrangements, and there will be a point at which they cease to apply under Euratom, with consequences that remain to be seen.
I mean, I cannot imagine the United States immediately withdrawing its expertise from the various sites, but it may choose to. Similarly, Korea is a very important counterparty. Once the agreement comes to an end, the opportunity of persuading Korea to invest in Moorside goes away from us.
Q
Rupert Cowan: In terms of research, which is a separate issue, it is fundamental. All the joint research—the Joint European Torus and so forth—is predicated on membership of Euratom, and the funding arrangements are a subset of the arrangements of the Euratom members. At the moment, it will stop, and unless central Government funding is made available people will return home.
Q
Rupert Cowan: Well, it is the article 50 notice. [Interruption.] Did I say 2018? I meant 2019—apologies.
(7 years ago)
Public Bill CommitteesQ
Angela Hepworth: In terms of our UK operations, we will be operating within a UK safeguarding regime. We understand that the Government’s intention is to keep the arrangements from an industry perspective quite similar to the existing arrangements that apply with Euratom. The Bill provides powers to put that regime in place. We have not seen the detail of how those arrangements will operate, but we are very keen to. We are happy, in principle, working under a domestic safeguards regime in the UK, as we have been happy working under a Euratom safeguards regime.
Q
Angela Hepworth: On the safeguards regime first, our concern is about the amount that has to be done to have the safeguarding regime in place in time. As I say, in principle we are very happy with the idea that a domestic regime should be established, rather than the Euratom safeguards regime, but we are conscious that there is a lot to do in the time available to get that regime in place. It is not the principle of it; it is the timing and the implementation.
Likewise, we are conscious that the other key components that we need to have in place include a replacement agreement with Euratom, which would cover issues relating to the ownership of nuclear material, and our future trading relations with Europe for nuclear materials. Obviously, that is subject to the negotiations that are going on in Brussels at the moment. I have regular contact with the officials who are leading those negotiations, and we are fully aligned with the objectives they are perusing. Again, it is subject to the success of those negotiations.
There are other key things that have to be put in place. We will need nuclear co-operation agreements with key third countries. I have been told that the negotiations are under way and are progressing well. Again, our concern is the timing and how it fits with the timing of putting a safeguards regime in place. Those agreements cannot be finalised until there is certainty about the domestic safeguards regime, so it is about the timing of getting all of that done.
The other key issue for us is the movement of people. We are an international business, and the nuclear industry is an international industry. We rely on having access to experts from Europe and further afield. The roles in the company that most draw on skills from overseas are engineering roles—we are reliant on being able to draw in engineers. Building Hinkley Point will require a workforce of 25,000 people. We are doing an awful lot to try to build up skills in the UK, but we expect that, to deliver Hinkley, we will need to be able to draw on workers from overseas. I would not expect that to be solved within the Euratom arena, but that is a key issue for us as a nuclear operator.
We also have to ensure that we have got an export control regime in place and support for nuclear R and D. Those are the key issues for us relating to Euratom.
May I ask you about the Euratom costs relating to safeguarding, which may not go to Euratom but to the Office for Nuclear Regulation as a result of the transfer of responsibility for safeguarding from Euratom to ONR? I understand that EDF Energy already pays into ONR as a contribution to its general costs, but does not pay anything to Euratom for safeguarding. Is that right?
Angela Hepworth: That is right. We have to distinguish what we pay for from the ONR at the moment. As a nuclear operator, we are required to comply with certain safety and security regulations, and we pay for the ONR’s role in inspecting our stations to ensure we comply with our obligations. That is absolutely right, and we expect that to continue. There is a distinction to be drawn between that and compliance with the safeguarding regime, which is the responsibility of a member state. At the moment, the UK Government pays for that to be done via its contributions to the EU budget. As that is a member state responsibility, it is clear to us that it should be the UK Government who meet those costs in the future, rather than look to the industry to cover them.
Q
Professor Matthews: There are two main programmes I teach on. One is the new generation centre for doctoral training. That is a collaboration between five universities in the north of England and we have a cohort of about 25 a year. That has been going on for the last five years. Almost all of them are British nationals from diverse backgrounds. We have one or two foreign nationals in there, but they are the exception. The other programme I teach on is the nuclear professional development programme, which is a master’s degree for people working part time who are managers in the nuclear industry in the UK. We have had one or two foreign students on that—I even had a commander in the Brazilian navy—but most of the people are British nationals working in our nuclear industry.
Q
Professor Matthews: It has been a difficult time for us, because there was such a long delay in the announcement of the final investment decision for Hinkley Point C. That made people relax, so it has proved easier to recruit good engineers to join our nuclear programmes at the university as a result. Certainly, the prospect of building 16 GW of nuclear reactors is stimulating the people moving into the industry. But it is not only that. We have to cope with the problems of legacy, decommissioning and radwaste management. There are nuclear fuel cycle industries, very likely with both fuel manufacture and enrichment. All these things require the nuclear safeguards to be operating, and any interruption in that—we are talking about something like £10 billion a year in UK activity that would be interrupted.
Q
Professor Matthews: That is related to the operation of nuclear power stations in the fuel cycle industry, which consists of processing and manufacturing nuclear fuels, manufacturing the nuclear fuel elements, and enrichment of uranium. The work still going on at Sellafield on reprocessing will stop shortly, but there is the handling of materials from Sellafield for decommissioning and radwaste management, all of which contain higher actinides and uranium, which are covered by the Nuclear Safeguards Act 2000. We need to know what is going into the waste to ensure that we are not making a plutonium mine or something that someone could tap in the future.
Q
Professor Matthews: Yes, but it is not enough, even at the rate that we are going. We have two major doctoral programmes in the UK that we co-operate with—one in the south with Imperial College, Cambridge, and the Open University, and one that we have with five universities in the north. That is only about 50 students a year. We need to bring into the industry hundreds of students a year, which means that we must be able to bring in people from around the world, mainly from Europe, but also from more widely around the world.
There is an opportunity from Germany at the moment—its industry is contracting because it is shutting down plants. It does not seem to be managing the decommissioning problem very well, so people are leaving Germany very rapidly.
Q
Professor Matthews: They were, but they are not any more.
Q
Professor Matthews: I heard the recording this morning of the ONR representative. It looks unlikely that it will be fully functioning by March in two years’ time. The question is: how can we bridge the gap until everything is working properly?