Nuclear Energy: Small Modular Reactor

Debate between Viscount Younger of Leckie and Viscount Hanworth

Thursday 12th October 2017 Lords Chamber

[Viscount Hanworth]

To ask Her Majesty's Government when they intend to report on the progress of the competition to design a Small Modular Reactor for the United Kingdom.

[Viscount Younger of Leckie (Con)]

My Lords, in March 2016 the Government launched a competition to identify the best-value small modular reactor for the UK. The competition has attracted considerable interest from industry, and 33 eligible expressions of interest have been received. We expect to provide an update on the competition’s progress shortly. The focus of the competition is engagement with industry to help inform government policy. It does not involve the down-selection of a reactor design.

[Viscount Hanworth (Lab)]

My Lords, I thank the Minister for that Answer. The Government announced the competition for a small modular reactor in March 2016, as we have heard, but it was expected that phase 1 of the competition would be completed by autumn 2016, with the publication of a road map. We are still waiting for that. Meanwhile, some UK companies have invested heavily in developing their solutions. I am told that, without a clear government road map, those companies will have to decide by the end of year whether to continue to invest in SMRs or walk away. Should they walk away, Britain will lose much of our nuclear competence. I must ask the Minister: in that case, would the Government be content to rely on foreign suppliers for our nuclear equipment?

[Viscount Younger of Leckie]

The Government acknowledge that industry is eager for greater clarity on the approach we will adopt on small modular reactors. Nuclear power is an important part of our diverse energy mix, and it currently supplies around 20% of our electricity demand. Today, I can announce that the Government are providing up to £7 million over the next two years to increase the capacity of the UK nuclear regulators to support and assess new and advanced nuclear technologies, such as SMRs. Investment from international partnerships is forthcoming, and we expect there to be more of interest in the future.

Higher Education and Research Bill

Debate between Viscount Younger of Leckie and Viscount Hanworth

Committee: 5th sitting (Hansard): House of Lords
Monday 23rd January 2017 Lords Chamber

[Viscount Younger of Leckie]

My Lords, Clause 23 establishes powers for the Office for Students to assess the quality and standards of higher education. It updates and modifies the current duty on HEFCE to do this.

I should like to say a few words about standards. As the Committee will know, we have already had a useful debate about the inclusion of standards in Clause 23. I reiterate that the intention here is not to weaken or undermine current sector responsibilities and ownership in relation to academic standards. I recognise noble Lords’ concerns. I have been listening, and continue to do so carefully, considering the points that have been raised.

These amendments touch on the importance of co-regulation and how that will be supported through the roles of the designated quality body and the quality assessment committee. They all give welcome recognition to the value of having an independent quality body to undertake the assessment functions under Clause 23, with effective independent oversight built into the quality system. That is why under the Bill the OfS must establish an independent quality assessment committee to provide quality oversight, and is given powers to designate a quality body which is independent from government. I hope that reassures my noble friend Lord Deben. The functions of the OfS and the quality body in this area are overseen by an independent quality assessment committee. Clause 24 will ensure that the majority of its members are not members of the OfS, while offering it the flexibility to draw on the expertise of individual OfS members.

I wish to address the points raised by the noble Viscount, Lord Hanworth, who was supported by the noble Baroness, Lady Garden. The general theme was that we needed a body which was independent, like the QAA. However, amendments to create a new body on a statutory footing, solely responsible for quality assessment without any links to the OfS, would remove the important ability for the system to operate as one and abolish the system of co-regulation, which has endured for almost two decades, by removing any possibility of a truly independent sector-owned body, such as the QAA, from the regulation of quality; instead creating a statutory body whose chair and chief executive are appointed by the Secretary of State. I reassure noble Lords about the independence of the designated quality body. Although the OfS, in having ultimate responsibility for the register of higher education providers, has to retain appropriate oversight and contact with the designated quality body, the Bill is specific about how this relationship can work; for instance, granting information powers in certain instances will also allow the OfS to give the designated quality body directions which can be general only, such as when advice may be required to fit with the registration cycle. This is only on the condition that it does not undermine the quality body’s expertise.

The noble Lord, Lord Stevenson, raised an important point about the independent quality regulator. I thank him for the amount of work and thought that have gone into his huge number of amendments. The body already has to be independent of the Crown and individual higher education providers but it has to have the confidence of a broad range of higher education providers—tests it would be unlikely to meet if it was not independent. There are safeguards in the Bill which allow it to operate independently on an ongoing basis, including that the quality assessment committee will advise on the work of the OfS and quality body; that the body must have the confidence of the sector to be considered suitable, as the noble Baroness stated; and that directions from the OfS can only be general. Therefore, Clause 23 is key to maintaining a high and rigorous bar for entry into the system, while reducing the burden on those high-performing providers. I reassure the Committee again that there are safeguards built into the quality system that allow an effective co-regulatory approach to function without oversubscription from government, which noble Lords have made clear that they want. With this balance in mind, I therefore request that Amendment 166A be withdrawn.

[Viscount Hanworth]

My Lords, I do not believe that the speakers in this short debate will be entirely reassured by what the Minister has told us. It is clear that there is work to be done in this area of the Bill. I trust that the Minister will take the opportunity to react to what he has heard today and bring something back to us on Report. Therefore, I beg leave to withdraw the amendment.