European Union (Notification of Withdrawal) Bill

Albert Owen Excerpts

Committee: 1st sitting: House of Commons
Monday 6th February 2017 Commons Chamber

[Jonathan Edwards]

That is a pertinent point, and I am happy that colleagues will support us in the Lobby if we get the opportunity to vote on my new clause later.

The UK Government’s White Paper, which was published only last Thursday, was a complete whitewash in relation to those pledges. Unsurprisingly, it made no commitment to uphold the funding pledges, which were no doubt very persuasive in Wales during the referendum. Let us remember that the estimated net benefit—I emphasise “net benefit”—to Wales from the EU in 2014 was around £245 million, or £79 per head. We will not accept a penny less from the UK Government, because that was the specific pledge by the leave campaign in our country. Not one single penny less.

Just over a week before the vote, amid huge publicity, the leader of the Conservatives in Wales said that

“funding for each and every part of the UK, including Wales, would be safe if we vote to leave.”

That statement was made following an open letter written by Tory Front Benchers, some of whom have now been promoted to the Cabinet and hold Brexit portfolios. They made the same promise.

[Albert Owen (Ynys Môn) (Lab)]

I, too, will be supporting the hon. Gentleman’s new clause 158 in the Lobby this evening if a vote is called. I would also have supported new clause 157. He is making an important point. Does he agree that the Joint Ministerial Committee would be a vehicle for the Welsh First Minister, on behalf of the Welsh Assembly, to make that case and hold the Government to account?

[Jonathan Edwards]

I welcome the hon. Gentleman’s intervention, and I will be supporting the new clause tabled by the Labour Front Bench if it is pushed to a vote. He is completely right. At the moment, UK Government Ministers might as well go into those Joint Ministerial Committee meetings with their iPods on and their headphones in. They are not going to listen to a word that the Welsh or Scottish Governments say, or to the representatives from Northern Ireland. There is no leverage to what is discussed in those JMC meetings. We need to firm up those processes.

The extreme Brexit favoured by the UK Government takes no account of the geographical economic divergence that exists within the British state. The Welsh economy is heavily driven by exports, and two thirds of our goods go to Europe. To willingly block those vital economic arteries would be an act of calamitous self-harm, given that 200,000 jobs in Wales are sustained by our trade with Europe. As someone whose job it is to represent the interests of my constituents and compatriots, I have a responsibility to do all I can to mitigate this Bill’s intentions.

That brings me to new clause 159, which would require the Government to explore a differentiated deal for Wales within the European economic area. The unprecedented task that lies ahead for the UK will inevitably require flexibility and, indeed, imagination. We have made it clear on a number of occasions that if the UK Government give us the assurance that Wales will keep its membership of the single market and the customs union, we will support the Bill. The Government have already conceded, rightly, that flexibility will be required to avoid a hard border between the Republic of Ireland and Northern Ireland. The joint Welsh Government-Plaid Cymru White Paper makes the case for the continuation of full participation—that is, membership—for Wales in the single market and the customs union.

European Union (Notification of Withdrawal) Bill

Albert Owen Excerpts

3rd reading: House of Commons & Committee: 3rd sitting: House of Commons & Report stage: House of Commons
Wednesday 8th February 2017 Commons Chamber

[Paul Blomfield]

I thank the hon. Gentleman for his point. A very effective way of applying pressure to save that Joint European Torus centre, which is a hugely important facility, is by agreeing to new clause 192.

[Albert Owen (Ynys Môn) (Lab)]

The shadow Minister makes a very important point. These hugely important research projects in nuclear and nuclear build have long lead-in times. My concern is that if we trigger notice to leave Euratom, no agreement will be put in place at the end of the two-year period. That could seriously delay those projects and impact on future investment in this country. Does he agree that, at the very least, we need a transitional arrangement, if not continuing membership?

[Paul Blomfield]

Yes, I do agree; my hon. Friend makes a very important point. I press Ministers to give greater clarity on their intentions, because the Secretary of State has so far been ambiguous.

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[Kit Malthouse]

That is a very good point, which will no doubt be taken into account by the good voters of Copeland in the next couple of weeks.

[Albert Owen]

I am glad the hon. Gentleman mentioned the good voters of Copeland, because they will be looking after the nuclear workers whose pensions are under threat from his Government.

The agreement between France and Britain comes under the umbrella of Euratom, and the people who know—the academics and the industry—are lobbying us to maintain that link.

[Kit Malthouse]

I am not sure the hon. Gentleman is right legally; my understanding is that it is an intergovernmental treaty between the two countries and will not necessarily be affected.

We have bilateral treaties with lots of other countries. Just before Christmas, we signed yet another agreement with the Japanese to deepen our research into the civil nuclear programmes. We also have bilateral arrangements with India and South Korea. These are really where the innovations are happening in nuclear research, so the idea that somehow by coming out of Euratom we are going to close ourselves off from the rest of the world is totally untrue. If anything, it might free us to do more work across the rest of the globe in developing what I think is going to be the future of British energy.

Finally, I want to say a few words on EU nationals. As Front Benchers will know, I have expressed my doubts about the Government’s approach to this matter over the past few months, and I am firmly of the belief that we should give those people some reassurance. However, I am willing to give the Prime Minister the space she needs in the negotiations to ensure that she can secure the fate of British nationals overseas. On the basis that the question of EU nationals will come back to the House—as will so many other things—and require primary legislation if their status is to change, I will be voting with the Government on this new clause, as I know many others will for the same reason.

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New clauses 185 and 192 and amendment 89 all seek to ensure that the Government take this matter very seriously. There is an onus on Ministers urgently to clarify whether, on leaving the EU, the UK will forfeit membership of Euratom. In the meantime, I put to the Minister the request from the Nuclear Industry Association to convene a specific working group to ensure that no omissions are made in the framing of regulations to replace the provisions of this treaty.

[Albert Owen]

My right hon. Friend is right to press the Minister, because we have had some very thin talk on this important matter. The industry wants this working party, and it wants Government to give some clear assurances. I make my appeal to the Minister, through my right hon. Friend, to do that tonight. I am sure that he is listening.

[The Minister of State, Department for Exiting the European Union (Mr David Jones)]

indicated assent.

[Mr Baker]

In rising to support the Government, I wish to consider new clause 2, and amendments 5 and 42 and new clause 185 relating to Euratom.

I am enormously encouraged by today’s debate not least because I take new clause 2, as my right hon. Friend the Member for Wokingham (John Redwood) explained, as an endorsement of the Government’s position. I look forward to a very full aye Lobby on Third Reading. Paragraph (e) talks about

“maintaining all existing social, economic, consumer and workers’ rights”.

That is something to which the Prime Minister is committed. Along with other Members, I look forward to seeing her succeed in guaranteeing reciprocal rights as soon as possible. I think we know from the press why that has not been done already. It is because the German Chancellor and various figures within the EU institutions have stood in the Prime Minister’s way. We know, from what we have read in the press, that the Prime Minister has a clear framework for guaranteeing reciprocal rights and she has sought to deliver it, but, because our negotiating partners have insisted on no negotiation before notification, she has not made progress on it. None the less, I have full confidence in her intent and in the solidity of her work, and I will certainly vote with the Government tonight.

Of course, looking at the character of this sheaf of amendments, I think many right hon. and hon. Members have indicated why they have been tabled. They are undoubtedly meant to draw within the jurisdiction of the courts a wide range of issues that would keep us mired in the courts for ever, putting off the inevitable day of leaving. I think it is far better to be strong, confident and committed and to act with a constructive and positive spirit to take us out of the EU successfully.

With that in mind, having dramatically curtailed my remarks on the new clause in the light of what colleagues have said, I want to turn to Euratom. What is it? It is a legal framework for civil nuclear power generation, radioactive waste management, arrangements for nuclear safeguards and movement of and trade in nuclear materials.

The first point I want to address is the suggestion that this issue was not on the ballot paper. I suppose that if we had put all the issues that are of concern to hon. Members on the ballot paper, it would have been very long indeed. The question on the ballot paper was perfectly adequate and if the fault can be laid at anyone’s door for Euratom’s not being discussed in the course of the campaign, it lies with the pro-EU Britain Stronger in Europe campaign.

The Euratom treaty is a separate treaty, signed in 1957 by the founding members of the EU. The UK joined it at the same time as it entered the EEC, and the European Communities Act 1972 gives effect to that treaty as well as to the EEC treaty. Section 3(2) of the European Union (Amendment) Act 2008 makes it clear that any Act that refers to the European Union includes a reference to the European Atomic Energy Community. It is absolutely clear that conferring on my right hon. Friend the Prime Minister the power to notify that we are leaving the European Union gives her the power to take us out of Euratom.

That leaves a couple of questions. The first is whether the Government are seized of the importance of nuclear safeguards, which are an extremely important issue for the House. My experience of working with nuclear systems is, I admit, distant and limited. I joined the Royal Air Force at a time when we still had tactical nuclear weapons and I was trained to certify aircraft nuclear weapons electrical installations. I must say that it was neither rocket science nor magic; it was about using the finest components to the highest quality standards. From my experience of that work, I would say that I have complete confidence in British scientists and engineers to do everything necessary to ensure that safeguards continue.

I particularly observe that we will continue to be part of Euratom throughout the negotiation period. Since Euratom brings into effect in Europe the provisions made by the International Atomic Energy Agency, and since we will continue to be members of that agency, we can expect not only to continue to comply with Euratom but to continue as members and put in place appropriate arrangements as we move forward.

In addition to the points made by my hon. Friend the Member for North West Hampshire (Kit Malthouse) about the French bilateral, I point out that the Trident system is evidence that we can collaborate on nuclear issues outside the framework of Euratom. I know from experience that anything to do with a nuclear system focuses the mind like nothing else, and I know that my right hon. and hon. Friends on the Front Bench are seized of the issues and will prioritise this point.

[Albert Owen]

The hon. Gentleman says that Euratom was not on the ballot paper, and he is right, but it was not even mentioned by the Government until they produced the Bill. If it was such a big and obvious issue, why did the Government not raise this important point while the European Union Referendum Bill was going through this House, or at another opportunity? Secondly, and finally, he talks about the two years. Is he suggesting that if there is no agreement after two years, there should be a transitional period, or we will lose our place in the world?

[Mr Baker]

I thought that I had explained that carefully, but I will say it again. Section 3(2) of the European Union (Amendment) Act 2008 makes it clear that any Act that refers to the European Union includes a reference to the European Atomic Agency Community. It is very clear that Euratom was included in the scope of the referendum. On the hon. Gentleman’s point about the transition, the Government will make it a priority, as I have just explained at some length, and I have absolute confidence that those on my Front Bench are apprised of the importance of the issue and will take it extremely seriously. We will continue as a member of the agency. In the highly unlikely situation that no deal were reached, I expect that we would continue to maintain nuclear safety under the auspices of the international agency.

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[Mr Lilley]

It is already 15% more competitive than it was a year ago, which dwarfs the average of 4%. We can, of course, give processing relief—that is, remit tariffs—on components that are part of processing and manufacturing chains and that will be re-exported. We will get £12.3 billion of revenues, if we apply the common external tariff to imports from the EU, but our exporters will pay some £6.5 billion of tariffs on their exports to the EU, so we would have ample money to compensate any exporters who were not sufficiently advantaged by a 15% devaluation, and still have billions of pounds to reduce general taxation. We can also, of course, negotiate free trade agreements with the rest of the world and slash unilaterally the tariffs that we currently charge on food, clothing and other things that we do not produce but that mean that our consumers have to pay higher prices to subsidise inefficient producers elsewhere in the EU, instead of importing from, say, the less-developed countries from which we should naturally be importing.

There are many other advantages, but as you have urged brevity, Ms Engel, I will not tell the Committee what they are but hold them back for a future occasion.

[Albert Owen]

It is always interesting to follow the right hon. Member for Hitchin and Harpenden (Mr Lilley). I will concentrate my brief remarks on Euratom. As the Minister and the Committee will know, its principal goals are the promotion of research and the dissemination of information; the establishment of safety standards; and facilitating investment. It also governs the supply of ore and nuclear fuels.

Euratom establishes a nuclear common market. The Eurosceptics always used to say, “We want to be in the common market,” yet their decision is to pull out of it. I believe that the Government want to retain the principal goals, and they stated on the publication of the Bill that we are leaving Euratom only because of legally binding arrangements, but that is debatable—I have seen conflicting legal advice—and cynics suggest that it is more to do with the European Court of Justice.

The Government say that they support Euratom and want us to continue both to co-operate and to have the highest standards. The hon. Member for Wells (James Heappey) is absolutely right that we are world leaders on nuclear standards, but in co-operation with other countries, which is why it is so important to keep Euratom, the umbrella body.

The purpose of new clause 192, which is supported by the industry and industry bodies, is to continue co-operation and have greater certainty. I have raised this matter with the Secretary of State for Business, Energy and Industrial Strategy, who was very courteous. He said he had met the industry and was sure that we will be able to continue outside Euratom, but that is not what the industry in general believes. The hon. Member for Henley (John Howell) said that the management of the JET energy research programme in Oxfordshire did not want the proposal, but the workforce have lobbied me in great numbers through the union, saying that there are risks if we pull out.

Access to information and data sharing are important. We will be way behind if we pull out. Companies in the industry need to plan in advance; they need that certainty. Euratom deals with nuclear co-operation with the United States. It is ironic that although we are talking about coming out of Europe and trading with the United States, we need to be part of Euratom to get agreements to move fuels to the US, Japan, Canada and other countries. Renegotiating will take an awful long time.

Ideally, the Minister would retain the UK’s membership of Euratom even if we left the European Union. If the Government proceed to give notice to withdraw, we must have an agreement on transitional arrangements. We must also have sufficient time to negotiate and complete new arrangements with EU states and third countries such as the US, Japan and Canada. If in two years an agreement cannot be reached, the UK should remain a member. Our standing in the nuclear industry is at stake, as are jobs and our reputation as a major country in nuclear research. I hope that the Minister takes that on board.

[Mr David Jones]

I have listened to a large number of very important contributions this afternoon from right hon. and hon. Members, and a large number of proposals have been considered. I hope that the Committee will forgive me if I say that I prefer—