Euratom Membership Debate
Full Debate: Read Full DebateDepartment: Department for Business, Energy and Industrial Strategy
Alan Whitehead
Main Page: Alan Whitehead (Labour - Southampton, Test)Department Debates - View all Alan Whitehead's debates with the Department for Business, Energy and Industrial Strategy
(7 years, 5 months ago)
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Dr Alan Whitehead (Southampton, Test) (Lab)
It is a pleasure to serve under your chairmanship, Mr Gray. It is quite clear that the legal position is not clear. That stems from the fact that the Euratom treaty is not the same treaty signed in 1957 as the EU treaty. Leaving Euratom would involve separate negotiation of the arrangements for co-operative or associated status alongside any other negotiations in the EU. That is fairly clear.
In that context, I want to raise a concern that I hope the Government have considered, but I suspect they have not, about leaving Euratom under those circumstances and the status of the Hinkley C nuclear power station programme. In autumn 2016, the Secretary of State signed an investment agreement—charmingly known as a SoSIA— concerning Hinkley C with EDF, the French Government and the Chinese Government that contains a number of issues relating to what a qualifying shutdown occurrence would consist of as far as the progress of Hinkley C power station is concerned. That investment agreement defined that a qualifying shutdown occurrence would consist of a Government intervention in the working of Hinckley Point C power station, or its construction, or if the EU were to do that, or if there were a change in treaty arrangements relating to the construction or operation of the power station. If we left Euratom unilaterally, as is proposed, with no alternative position in place, it is likely that that would mean a qualifying shutdown. The effect would be a possibility of the other contracting parties to the arrangement—EDF and others concerned with the power station—walking away from the deal and claiming up to £20 billion compensation for so doing. That seems to be an important consideration that we might think about. I would be interested to hear from the Minister whether the Government have considered the risk of that occurrence.
That concern is not just mine; it was raised by the National Audit Office in its June 2017 report on Hinckley C. It indicated that it thought that the Government had not undertaken any risk assessment relating to the Secretary of State’s investment agreement and that perhaps they should do so. I would be interested to hear from the Minister whether that risk assessment has been undertaken and whether the Minister considers that the Secretary of State’s investment agreement on Hinckley C would be at risk as a result of what has been decided so far about leaving Euratom.