Nuclear Safeguards Bill

Baroness Featherstone Excerpts

2nd reading (Hansard): House of Lords
Wednesday 7th February 2018 Lords Chamber

[Baroness Featherstone (LD)]

My Lords, this has been a very interesting debate, somewhat more interesting than I expected given the spat with the Minister. I think that arose because the Government have focused this Bill too narrowly, and arguments have been advanced as a consequence of that.

It was impossible to listen to this debate and that in the other place and not recognise the scale of the folly that leaving the EU forces upon us, not just because we are leaving but because the room for common sense and compromise has gone out of the window. As the noble Lord, Lord Warner, said, that has arisen because the ruling party is terrified of the split riven in its own ranks by Brexit. One of the most confounding aspects of leaving the EU, which leaving Euratom evidences, is the need to set up and replicate so much that already functions so well for us as is. Perhaps we should have a maxim: if it ain’t broke and it is doing the job, surely the British people did not mean us to fix it by taking action that will do us harm or cost us a fortune.

There are aspects of the Nuclear Safeguards Bill that clearly cause concern, not just among those who have participated in this debate but well beyond. There are concerns about what is in the Bill, and what is not in the Bill but needs to be tied down and delivered before our departure from the EU next year. As we have heard from all sides, they fall into defined areas: the ONR’s capacity; the transition period; issues that need dealing with such as the nuclear single market, raised by my noble friend Lord Fox, and nuclear fusion research, which many noble Lords mentioned; radioisotopes; concerns over JET, which was mentioned by my noble friend Lord Teverson and other noble Lords; our ability to negotiate new nuclear co-operation agreements with international partners beyond the EU in a timely way; delegated powers—and, in an overarching sense, that the Bill should not have been necessary in the first place.

We heard from all parts of the House, as was the case in the other place, that we do not need to leave Euratom. Sadly, the Government are not prepared to fight that one out with the EU—as was mentioned by the noble Lord, Lord Grantchester, my noble friend Lord Fox, the noble Lord, Lord Whitty, the noble Viscount, Lord Hanworth, and other noble Lords. One wonders why the Government are so reluctant. It is a matter of legal dispute—I and others do not believe that we need to leave Euratom—and it strikes at the heart of the stupidity of so much of this. Is it ideological? Yes. Is it simply that if we remained in Euratom, we would have to continue to be subject to the jurisdiction of the ECJ concerning nuclear safeguards? If so, what a performance just to adhere to ideological red lines. Surely the Government see that all this—all the change, the angst, the cost and the effort in this so-called contingency Bill—might be avoided if it were not for obdurate ideological dogma.

However, as we are to leave Euratom, a better answer would be associate membership. As the Government believe that we can have a bespoke deal with the EU on the single market, I hope they feel that we could have bespoke associate membership of Euratom. Does not Article 206 of the Euratom treaty facilitate associate membership? That is what we should be pursuing. I am aware that the Secretary of State, who was at the Bar earlier, made a Written Ministerial Statement saying that there will be quarterly updates on associate membership, but I put it on the record to indicate the importance we place on this issue.

Ministers reassure us that arrangements will be in place and negotiations are going well; that we will have the closest of associations with Euratom; that discussions on customs and borders have to sort out only a couple of minor things such as the transfer of Euratom-owned equipment and special fissile material in the UK owned by other EU states—that it is all nearly sorted out and everything will be all right. That is not good enough. However, assuming from the passage of the Bill in the other place and the debate today that we are going ahead—fingers crossed—and we have associate membership or equivalent, we still have to ensure that there is no gap between the end of Euratom and the beginning of the ONR taking on that role, and that all that was associated with our membership of Euratom is in place.

It was clear from the evidence given in Committee in the other place that the likelihood of the ONR being up to the same standards as Euratom in March 2019 is zero. Many Members across the House have raised the need for a transition period to tide us over from our protections in Euratom to a place where we are self-sufficient. We cannot leave ourselves exposed by coming out of Euratom when our safeguards are incomplete.

I was interested in the suggestion made by the noble Baroness, Lady Neville-Rolfe, that Article 50 could be extended in regard to Euratom if need be; that seems reasonable. We on these Benches will be happy to put our names to the amendment in the name of the noble Lord, Lord Warner, on transition.

There is a litany of things that are not in the Bill but which need to be in place and sorted. As a couple of noble Lords said, the CEO of the Nuclear Industry Association, the trade body for the UK civil nuclear industry—which we should be listening to—that represents 260-plus companies across the supply chain and thus is in the front line of this legislation, stated that the Bill does only one of a whole range of things that need to be done to prevent disruption on leaving Euratom. We agree. That includes the transportation of overseas nuclear fuel across the EU; co-operation on information, infrastructure and funding of nuclear energy; clarity on who owns all the nuclear material, currently and going forward; the legal purchase, certifier and guarantor of any nuclear materials and technologies that the UK purchases; and, more than anything, bilateral agreements with other countries on nuclear safeguarding. As my noble friend Lord Fox made clear, the Prime Minister’s statement—that definitely, absolutely and with no equivocation we are leaving the customs union—will not be very helpful.

As we heard from all sides with great passion, another issue not covered in the Bill is medical radioisotopes. Ed Vaizey in the other place pointed out that the Euratom Supply Agency specifically extended its remit to cover the supply of isotopes because we do not create any in this country. The Government assure us that the movement or supply of isotopes is not pertinent to the Bill, and that negotiations to remain as close as possible to the conditions that we currently experience are going very well. However, surely we must have it written in the Bill that unless and until such arrangements are in place we will not and must not leave Euratom. The noble Lord, Lord Carlile, made a powerful case on the faux distinction made by the Minister and the Government between safeguard and safety. He made an unarguable case for the inclusion of isotopes in the Bill.

The ONR was mentioned by many Members across the House. The Bill transfers authority for nuclear safeguarding from Euratom to the ONR. Although it is making heroic efforts to recruit and train the 30-plus additional inspectors needed to meet these extra responsibilities, it is clear that the ONR will not make the finishing line by March 2019. In Committee, Dr Golshan of the ONR said that:

“It is fair to say that this is unprecedented territory … and … that we will not be able to replicate Euratom standards on day one”.—[Official Report, Commons, Nuclear Safeguards Bill Committee, 31/10/17; cols. 6-7.]


It needs a number of skilled staff, proper training, specialist equipment in place with trained operators, and 12 to 18 months to train a single inspector. Another requirement is a new IT system. If any of your Lordships have ever tried to commission a bespoke IT system, they will look at this timetable in horror and recognise the huge challenge of that deadline. That is not to mention the free movement of scientists; perhaps the Minister can give some assurance on that issue of vital importance. We also need sign-off by the IAEA. I am delighted that the Government are having “very positive conversations”, but that is not enough and is not tied down. It is not sufficient to say that everything is in hand and will be all right on the night. We need it to be stated that unless and until certain things are in place, the Bill cannot be enacted. We need a contingency upon this contingency Bill.

The noble Lord, Lord Whitty, observed the need for the ONR to be independent, otherwise the Government will be marking their own homework; that is an important point.

Suffice it to say that not all doubts have been assuaged and not all aspects have been addressed by the Bill, as your Lordships’ House requires. We look forward to Committee, where we hope to develop further the safeguards that we need and to address the issues that remain of grave concern.

Nuclear Safeguards Bill

Baroness Featherstone Excerpts

Committee: 1st sitting (Hansard): House of Lords
Thursday 22nd February 2018 Lords Chamber

Moved by

[Baroness Featherstone]

1: Before Clause 1, insert the following new Clause—
“Associate membership of Euratom
(1) In negotiating and concluding an agreement in accordance with Article 50(2) of the Treaty on European Union on the future of nuclear safeguards in the United Kingdom, Ministers of the Crown must have regard to the desirability of becoming an associate member of Euratom.(2) The Secretary of State must lay before both Houses of Parliament a written statement detailing the progress towards achieving the negotiating objective under subsection (1)—(a) one month,(b) five months, and(c) nine months,after the passing of this Act.(3) In the event that the United Kingdom becomes an associate member of Euratom, sections 1 and 2 of this Act cease to have effect.”

[Baroness Featherstone (LD)]

My Lords, I am sure that the Minister, in listening to the Second Reading debate in this House, could not have failed to get the message that leaving Euratom, necessitating the re-creation of its safeguarding capabilities and duties in another body set up to mimic it exactly, is an absurdity and a folly. If he were in any doubt, around 11 pm last night a number of noble Lords—among them, my noble friend Lord Teverson and the noble Lords, Lord Hunt, Lord Warner and Lord Carlile—let him know their opinion of this matter, too.

There was no vote to leave Euratom. Euratom is separate from the EU. Of course, we benefit from our membership, with Euratom regulating the civil nuclear industry, including safeguards for nuclear materials and technology, disposal of nuclear waste, ownership of nuclear fuel, and research and development. Despite our disputing the actual legal necessity of leaving Euratom, the Government are going ahead with the Bill as a failsafe. Amendment 1 seeks to attain associate membership of Euratom. We sought in our original amendment to retain full membership, but, sadly, this was deemed out of scope.

In the Written Statement that the Government laid on 11 January, they said that they want,

“a close association with Euratom”.

But the Government wanting a close association and having one in place are not the same thing, nor have they yet defined what they mean by an association that is “as close as possible”. It would be very helpful if the Minister could indicate what has been said so far about associate membership, and what the answer was during negotiations to date when the suggestion was first put on the table that we want a close association with Euratom, if indeed it was put on the table at all. Was there any problem? It is unimaginable to me that anyone on the other side of the negotiating table would have any problem with us staying in Euratom or, if we are not doing so, having an associate membership. Has the European Commission given its view on this to date?

Our problem with the good intentions of the Government in this regard is that they are undefined, so we want clarity and certainty on this important matter. We want an associate membership that replicates exactly our membership of Euratom—nothing more, nothing less. So what will be required of us in order to have an associate membership? Is it a matter of cost? What would be asked of us, above and beyond what is required now? Amendment 1 has been laid to ensure that the Government, in their negotiations and agreements in accordance with Article 50(2) of the Treaty on European Union, on the future of nuclear safeguards in the United Kingdom must have regard to the desirability of becoming an associate member of Euratom. I am sure—at least, I very much hope and expect—that this will be pretty much at the top of the Government’s list of things to do, if only to avoid the extra works, cost, aggravation and uncertainty in recreating what we have already as a member of Euratom.

So that we can be sure that the Secretary of State is carrying out this duty, the amendment requires that he must lay before both Houses a Written Statement informing us of the progress he is making towards achieving that negotiated outcome. Our preference would be to forestall actually leaving Euratom at all, unless and until such an associate membership is in place. However, as that is apparently not possible, the amendment asks that Statements be made at particular intervals post the Act receiving Royal Assent. If we were to succeed in negotiating an associate membership and effectively remain in Euratom, the rest of the Bill need not apply. I beg to move.

[Lord Warner (CB)]

My Lords, I shall speak to Amendments 2, 12 and 16, which are in my name in this group. We had a good warm-up late last night for this first day in Committee on this Bill, with the Minister’s colleague doing what I thought was a rather good imitation of Geoffrey Boycott: occupying the crease but not showing much flair in his run gathering. In that debate on withdrawal from Euratom that we had in Committee on the European Union (Withdrawal) Bill, it was clear that the mood of the House was that this was a rash and ill-considered action by the Government, and that the Government would do well to reconsider their position on withdrawing from Euratom in the interests of the future of the nuclear industry in the UK. I have little doubt that we will return to this issue during our later consideration of the withdrawal Bill and I do not intend to traverse that ground again today, although I still consider that cancelling the withdrawal from Euratom membership would be the best course of action in the public interest.

Today, I want to focus on two issues that continue to cause concern in the industry and among many of us in this House: first, whether the Government have a credible plan for putting in place an internationally acceptable nuclear safeguarding regime in the UK in time for our departure from Euratom; and, secondly, whether this can be done by EU exit day on 29 March 2019. These two issues are inextricably linked in my view, and that is why I have grouped my Amendments 2, 12 and 16 with the related amendments in this first group. I have to say to the Minister that how the Government respond to amendments on these concerns in this Bill will, I suspect, determine how the House deals with the Euratom issue in the withdrawal Bill. I assure the Minister that that is not a threat but a piece of friendly advice.

--- Later in debate ---

[Viscount Trenchard]

I wholly agree, as I think I said, that the right way is to continue to rely on Euratom until such time as the ONR can apply a UK-specific safeguards standards regime approved by the IAEA. My point is that it is not necessary and might not be desirable. On that, I am particularly interested in the submissions made by the Nuclear Industry Association, on which perhaps the noble Lord, Lord Hutton, will make an intervention, which I would look forward to hearing with great interest. We do not necessarily need to follow Euratom; I am not saying that Euratom standards are not at least as good as IAEA’s required standards but, in so far as they go further, it does not necessarily mean that they are safer. It may mean that they are more cumbersome or that the frequency of verifications is more—

[Baroness Featherstone]

I thank the noble Viscount for giving way. Is he aware that the Government’s declared intention is to reach the Euratom standard, regardless of this debate?

--- Later in debate ---

[Lord Henley]

The noble Lord never wastes his time, nor does he waste the time of the Committee, but I can give an assurance that discussions continue with the IAEA, which is perfectly happy that we will be able to meet the appropriate safeguards regime to meet its standards by March next year. We will discuss that on later amendments. Processes have taken place in the ONR and it is engaged in recruitment. We will meet its standards—standards similar to those met by the Americans as fellow members of the IAEA. All that will be in place; that is the point behind the Bill. It is why I do not think these amendments are necessary—we will no doubt discuss them in much greater detail on Report. I hope that the noble Lord and the noble Baroness, Lady Featherstone, who is about to respond, will be happy and feel able not to press their amendments.

[Baroness Featherstone]

I thank the Minister. I listened carefully to his arguments in response to the amendments. I think that our work is not done; I did not hear a meeting of minds at this point. What I did hear was a universal view from across the Committee that surety and certainty are not there. We will probably want to come back on this on Report. For the moment, I beg leave to withdraw the amendment.

Amendment 1 withdrawn.

Nuclear Safeguards Bill

Baroness Featherstone Excerpts

Committee: 1st sitting (Hansard - continued): House of Lords
Thursday 22nd February 2018 Lords Chamber

[Lord O’Neill of Clackmannan (Lab)]

My Lords, I support this amendment. It is not just a question of maintaining the standards that have been established but of putting us in a position where we will be able to meet and address new challenges. I happened to be in Tokyo on the day of the Fukushima disaster and tsunami. I was in the company of a group of nuclear engineers and no sooner had the messages come over the television than they were on their BlackBerrys, communicating with their international colleagues—because there is an international nuclear community—and working out the extent of the damage.

It was shortly after that, on our return, that the Nuclear Installations Inspectorate leadership was appointed to lead the international examination of the Japanese nuclear capability. We were seen to be at the forefront of that. That is a heritage that we want to maintain, and this amendment very succinctly addresses that challenge. It is important, therefore, that the ONR—the successor to the NII—is able to do that. We know that this will have implications for staffing, salaries and for the general financing—which we will come to later—but the point is that it would be desirable to have in the Bill a commitment to maintaining our current position, which is partly due to our membership of Euratom and partly due to the excellence of our inspection and monitoring capabilities.

It is incumbent on the Government, therefore, to give a commitment that they will seek to maintain the quality and standards that we currently enjoy and our capability in contributing to international nuclear safety. This is not something that should be in any way antithetical to what the Government seek to do; the amendment is no reflection on their commitment but it would enhance the Bill and I see no reason why, if not the wording, the spirit of this amendment could not be addressed. As I said in an earlier intervention, the point of Committee stage is to indicate areas of concern and, if the Government are prepared to accept the consensus around this Chamber on the matter, it is incumbent on them to return with the appropriate wording that enables us to proceed. In this instance, we have a very good blueprint from my noble friend Lord Grantchester, as my friend the noble Lord, Lord Warner, has said, for what is required. I do not think the Minister really has anywhere to hide on this issue and I would like to think he will be able to co-operate with us in enhancing the Bill to take account of the dynamic challenges that nuclear safeguards in the future will require.

[Baroness Featherstone (LD)]

I rise from these Benches to support the amendment of the noble Lord, Lord Grantchester. Given the amount of discussion across the Committee about uncertainty and concern, this well-worded amendment gives the opportunity to reassure the Committee on standards and nuclear safeguards. I hope the Minister will feel able either to use these words or to simply accept this as a drafting amendment and return on Report with new government words.

Nuclear Safeguards Bill

Baroness Featherstone Excerpts

Committee: 2nd sitting (Hansard): House of Lords
Thursday 1st March 2018 Lords Chamber

Moved by

[Baroness Featherstone]

7: Clause 1, page 2, leave out lines 41 to 45 and insert—
“(9) Before making any regulations under this section, the Secretary of State must—(a) consult —(i) the ONR,(ii) the International Atomic Energy Agency,(iii) the National Audit Office,(iv) such other persons, if any, as the Secretary of State considers it appropriate to consult, and(b) lay before Parliament a written statement declaring that, after consultation with the above parties, the Secretary of State is satisfied that the ONR—(i) has sufficient staffing and financial resources to implement nuclear safeguards regulations, and(ii) is sufficiently independent to implement nuclear safeguards regulations.(9A) The statement under subsection 9(b) must be laid before both Houses of Parliament.”

[Baroness Featherstone (LD)]

My Lords, there is ongoing concern over nuclear safeguard regulations—more accurately, both Houses are generally concerned at the deluge of regulations resulting from the Brexit legislation—and there has rightly been a great deal of criticism. This amendment seeks to put further protection around the regulations to give assurance. That assurance needs to take two forms. First, in advance of any regulations, the Secretary of State must seek the views on said regulations of interested parties and responsible bodies, such as the ONR, the Atomic Energy Agency and the National Audit Office among others.

Secondly, after that consultation, the Secretary of State must lay before Parliament a Written Statement that assures that the ONR has sufficient staffing and financial resources to implement nuclear safeguard regulations. That begets a question which I hope the Minister will answer when he responds. At the beginning of this process we need to set the benchmarks for staffing and resourcing. To do that, we need to understand, on the record, what both the IAEA standard and the Euratom standard of implementing nuclear safeguarding will require in the way of staffing and resourcing.

At Second Reading in this House and in the other place, concern was expressed about what would be achievable by 29 March 2019, and the view was expressed that the ONR would not be ready on day one. Can the Minister confirm that, on day one, the standard that the Government are expecting is that of the IAEA? Can he also put on record what the IAEA standards of nuclear safeguarding are, what staffing is needed to deliver those standards and what resource has or will be made available to the ONR to deliver those standards?

Can the Minister then confirm how long after reaching the IAEA standards he would expect the ONR to reach the Euratom standard of implementing nuclear safeguarding? Given that Euratom holds to a higher standard than the IAEA, can the Minister tell us how many more staff the Euratom standard will require? Can he also put on record what level of extra resource that will require, and can he assure the House that the extra funding between the two standards will be available on demand? The Government have made clear that Euratom is their intended standard, if not on day one then on a later date.

In his letter of 20 February the Minister makes it clear that there are currently 11 safeguards officers in post who are training to become inspectors by 29 March 2019. He also states that the ONR estimates that it will take 20 safeguard inspectors to deliver its functions to a standard equivalent in effectiveness and coverage to Euratom. As I have said, the Government have been clear that their intent is to reach the Euratom standard—but, worryingly, the Minister goes on to say in his letter that reaching the equivalent Euratom standard is dependent on a wide variety of factors. That seems very loose. Can the Minister enumerate what the “wide variety of factors” is, as it cannot be left open-ended?

Moving beyond the nuclear standard regulations and their resourcing, we are concerned that the ONR must be wholly independent of its paymasters. We cannot have a situation where the Government can influence or hold any sway over this organisation. It must be unfettered in its implementation of nuclear safeguard regulations, and the reporting structure must ensure that the Secretary of State cannot direct the ONR. Can the Minister reassure us on that point?

Finally, can the Minister assure us that the statement on these issues, as amended, will be laid before both Houses of Parliament? I beg to move.

--- Later in debate ---

[Lord Henley]

My Lords, we have discovered email. I can use all possible methods.

I have given the assurance that I will ensure that noble Lords are kept informed. As I think I have made clear, I do not think the amendments are necessary or, for that matter, particularly helpful, and I hope the noble Lord will accept that we will do our bit to keep all noble Lords appropriately informed of these matters and will make the precise Written Statements that are necessary at the appropriate moment. With that, I hope the noble Baroness, Lady Featherstone, will feel able to withdraw her amendment.

[Baroness Featherstone]

Having listened to the debate across the House, I think it appropriate that I ponder what the Minister has said. For the moment, I am happy to beg leave to withdraw the amendment.

Amendment 7 withdrawn.

--- Later in debate ---

[Lord Hunt of Kings Heath]

My Lords, in moving this amendment, I want to explore the status and independence of the ONR. I have great respect for the ONR and its work, and I wish to enhance its status.

In this crucial area of nuclear safeguards, the ONR will replace Euratom in overseeing the UK’s obligations to meet international nuclear safeguard standards, ensuring that civil nuclear material is not diverted into military or weapons use. This is a distinct responsibility and is separate from the ONR’s current role in relation to nuclear safety. Essentially, the ONR will be policing the UK in respect of its international commitments, and on that basis its independent status needs to be enhanced.

A Cabinet Office memorandum of 2014 made the situation clear:

“Non-ministerial departments do not have direct ministerial accountability. Their need for independence from ministers is … greater than for NDPBs, and includes regulators and tax authorities”.


They are government departments in their own right. The memorandum continued:

“There will be a ‘sponsor minister’ who has residual policy responsibility for the continued existence of the non-ministerial department, the overall policy and statutory framework within which it operates, and represents the non-ministerial department in Parliament. However, a non-ministerial department operates independently of ministers, generally receiving funding directly from Parliament”,


negotiating with Her Majesty’s Treasury,

“and is accountable directly to Parliament”.

My argument is that the ONR should be established as a non-ministerial government department to recognise the important new responsibilities that it has been given. Some of the bodies that have that status—the Competition and Markets Authority, the Crown Prosecution Service, the Food Standards Agency, HMRC, Ofsted and Ofgem—have been considered by one Government or another to have needed that status to show that they are robustly independent. Looking at nuclear safeguard responsibilities, there is a very strong case for enhancing the status of the ONR in that way, and I hope that the Minister will be sympathetic. I beg to move.

[Baroness Featherstone]

I support Amendment 11. Part of Amendment 7 said something similar. It is very important that we are satisfied on this point so that we know for sure that there can be no interference and no misdoings—if that is the right word.

Nuclear Safeguards Bill

Baroness Featherstone Excerpts

Report stage (Hansard): House of Lords
Tuesday 20th March 2018 Lords Chamber

[Lord Hunt of Kings Heath]

My Lords, I am most grateful to the noble Lord, Lord Henley, for suggesting that I go next and speak to my Amendments 7 and 9. First, I welcome the Minister’s Amendment 6 and the intention that we have regular reports on nuclear safeguards; that is clearly helpful and we look forward to receiving the first report fairly soon, so I am most grateful to the Minister for his response to our debate. I hope today that we can just persuade him to go a little further.

As noble Lords will know, because some noble Lords have taken part in the debates, we have been having concurrent debates on this Bill and the European Union (Withdrawal) Bill. Last night—fairly late, although not as late as on some amendments—we had a fascinating debate, led by the noble Lord, Lord Broers, about research and development. There is an intimate connection here, and an absolute necessity for us to continue to invest in research and development, particularly in relation to the projects that the noble Lord referred to, such as JET, ITER, research into advanced nuclear fission reactors and so on, on which our decision to leave Euratom could potentially have an impact.

In addition, we discussed in Committee medical isotopes and the concerns among medical colleagues and the health service in general. The work of Euratom has no doubt led us to deal with issues of shortage of supply and some of the issues of the rapid transport that is required. There is some concern about whether we can ensure the security of those supplies, which are absolutely essential for the treatment of many patients on a daily basis, in future. So adding a further reporting requirement to the noble Lord’s own amendment would be important and would reassure noble Lords on some of the very important issues that have been debated both here and in the EU (Withdrawal) Bill.

In relation to nuclear safeguarding, we need to be clear that we are essentially taking a kind of policing role from an international agency. Nuclear safeguards make sure that nuclear materials used for peaceful purposes are not used for military ones, so this is very important in relation to nuclear proliferation and our treaty obligations. We are removing ourselves from Euratom, establishing ourselves as a single nation, with its own existing regulator being given these duties to police our responsibilities under the non-proliferation treaties, and then having a sort of backstop of doing it in accordance with the strictures of the IAEA.

So the Government themselves are taking on a very responsible duty. Although of course I would implicitly trust any report that the noble Lord presents to us on these matters, having as a backstop an independent reviewer who could report from time to time on what is happening to make sure that those safeguards are being conducted in the way that we need to do them internationally would be an important safeguard. I hope that the Minister will see that both these amendments are wholly constructive and intended to act alongside and add to the constructive nature of the noble Lord’s own amendments.

[Baroness Featherstone (LD)]

My Lords, I have attached my name to Amendment 7. I also support Amendment 9, which will be covered by my noble friend Lord Fox.

I totally welcome government Amendment 6, which brings in the reporting system, and hope that the Minister will take Amendment 7 really as sort of an aide memoire, as if it was something he clearly forgot to put it into Amendment 6. So many areas remain of concern about the precariousness of our exit from Euratom. We discussed many of them in Committee. As we have heard across the House already today, they include the critical issue of timing, with the industries that are directly affected and their supply chains being desperately concerned to avoid the cliff edge, unsurprisingly—and all the while the clock is ticking relentlessly towards exit day. Amendment 6 seeks to reassure us in the interim with regular reporting to Parliament on key issues. However, Amendment 7 in my name and that of the noble Lord, Lord Grantchester, amends Amendment 6 and seeks to cover those key elements of concern that we felt were missing. These include information on progress, and the form that is taking shape, on future arrangements on research and development, the import and export of qualifying nuclear material and, of course, the nature and form of future arrangements with Euratom.

I and my party still remain hopeful—Liberal Democrats are obviously optimists—that common sense will at some point take hold between now and exit day, and that we will simply be able to remain in Euratom or a bespoke associate membership of Euratom will become possible, just as a bespoke trade agreement seems to be possible in the Government’s lexicon.

On nuclear research and development, exiting Euratom has put a number of concerns on the table. It would be really helpful in dealing with the uncertainties raised over the UK’s future contribution to nuclear research and development if this were included in the reporting regime. We have benefited from Euratom funding for research. As was mentioned in Committee and earlier today, the JET project based in Culham receives £60 million a year from Euratom, covering 88% of the running costs; it provides employment for 500 people implementing the contract. We are also concerned about the impact on the ITER project, which is a magnificent international collaboration intent on proving that fusion is a viable source of large-scale, safe and environmentally friendly energy for the planet.

However, it is far more than the money itself. What should be an ongoing discussion in the negotiations, and what I would like to see reported back on in relation to our leaving Euratom, should be the co-operation and collaboration that is such an important part of research in Europe. We will discuss the talented people who forge that research and development—and their ability to come and go and work in countries around Europe—in my noble friend Lord Teverson’s Amendment 8.

It is absolutely critical that we remain a key partner when outside Euratom if we are to be able to continue to hold EU and international regard as a key player as a nuclear nation. All the programmes demand close collaboration with the EU and the international nuclear community. We currently have access to research infrastructures and capabilities not available in the United Kingdom. We are also able to leverage UK investment for industry, national laboratories and academia.

Going forward—whatever the arrangement—we have to make sure that we can continue as a leading participant in the Euratom working groups and EU-funded research projects. We do not want our ability to influence and shape this agenda to be lost, nor our access to facilities, data, people and material that has enabled us to be at the cutting edge of developing technology and innovation. Therefore, as the Government go forward on this agenda, they are going to have to come to an arrangement over the future of JET with Euratom: we hope that it can be paid for by the Euratom framework programme after 2020 if that is still the end date for the UK Government’s commitment to its funding. The Government are also going to need to come to an agreement over F4E so that we can carry on participating in the fusion programme. Future arrangements must ensure that international collaboration is ongoing so that both contributing and gaining from world-leading research continues. That is why Parliament must be kept informed on progress on all those issues and why it is crucial that research and development are part of the reporting requirement.

I turn now to the import and export of qualifying nuclear material. Currently the Euratom Supply Agency has rights over such materials produced in its member states. This confers legal exclusive rights to contract the supply of those materials entering or leaving the European Union. Our current nuclear reactors are totally reliant on this fuel supply chain so, post Euratom, the Government will need to ensure this process in relation to the export of fissile materials from Euratom to the UK. This possibly—and probably—will in future become an export and may need to be authorised by the EU Commission’s research and development department. What I am describing is a future situation regarding the import and export of fissile material that needs to be worked through so there are no additional barriers, to ensure that trade in this essential market can continue. It is vital that Parliament is regularly updated on these important issues.

The noble Lord, Lord Hunt, and I have made substantive and, I hope, persuasive arguments such that I trust the Minister can see the necessity for amending Amendment 6 with Amendment 7.

Nuclear Safeguards Bill

Baroness Featherstone Excerpts

Ping Pong (Hansard): House of Lords
Wednesday 6th June 2018 Lords Chamber

[Baroness Featherstone (LD)]

My Lords, to be frank, I wish that we could have just stayed in Euratom, which would be the simplest and most straightforward answer to nuclear safeguards, but I am relieved that the Government have listened to the concerns expressed on all sides of the House during the passage of the Bill, and I am very grateful that an amendment has been laid with which we can all agree. It is an important point that addresses any potential disaster, such as what if bilateral agreements were not in place, and avoids the cliff edge that we, like the Government, hope will never be reached. However, as the noble Lord opposite has just said, an insurance policy is a good thing and we now have that.

[Lord Grantchester (Lab)]

My Lords, it is a moment to be enjoyed when a Government Minister brings back to your Lordships’ House an amendment that all sides can resoundingly support. This amendment in lieu is in essence the amendment agreed on Report—admittedly, more deftly drafted—to ensure a responsible, less risky and more certain transition from the Euratom-monitored safeguarding regime to a uniquely robust regime operated by the ONR to full international recognition. The final version of the Bill is a vindication of the work of your Lordships’ House and the Government are to be congratulated on finally getting the legislation correct in the other place. While some noble Lords would contend that the Government had no need to trigger withdrawal from Euratom, given the difficulties around the notification letter and the Article 50 Bill, the House was right to focus this Bill on securing that the withdrawal from Euratom should proceed on a sound basis, satisfying all the contingencies that could arise during the process. This amendment in lieu allows the House to reflect on the fact that it has fulfilled its role successfully. Let us examine that in detail.

First, the Bill strengthens Parliament’s oversight and improves transparency by putting the Government’s reporting commitments on a statutory basis. Secondly, on the recommendations of your Lordships’ Delegated Powers and Regulatory Reform Committee, the Bill puts a further definition of “civil activities” on the face of the Bill and sets a time limit on the Government’s use of so-called Henry VIII powers. Thirdly, the Bill provides further information to the report that the Government will be making periodically. It may include arrangements with Euratom relating to nuclear research and development, as well as the import and export of qualifying nuclear material such as medical isotopes. The facility at Culham and the JET programme will be pleased with this outcome.

Finally, in this amendment in lieu the Government are agreeing that the practical realities of the UK’s withdrawal from Euratom will need to be recognised. The Euratom arrangements will cover all the conditions and standards to allow a continuation of trade and non-proliferation certification without disruption, interruption or dilution. At all times, whether phased or not, the UK’s withdrawal will not be put at risk and will not jeopardise the present status of operating within fully recognised international IAEA standards in place. The implementation period is still to be fully agreed and put on a statutory basis. It will qualify under Section 3(b) as a corresponding Euratom arrangement. This will allow a further period in which the Government can recruit and train inspectors. In addition, from exit day, we are satisfied that, where needed, the amendment would cover the six vital agreements necessary to maintain the status quo. Two of them cover agreements with the IAEA and there is one for each of the four countries with nuclear co-operation agreements: namely, the USA, Canada, Japan and Australia.

I am grateful to the Minister for his letter following our meeting to discuss the amendment. Together with the Minister in the other place, Richard Harrington, and the noble Baroness, Lady Vere, he has put considerable effort into recognising and addressing valid concerns in both Houses throughout this process. I thank him and his team for co-operating with us on the Bill. The nuclear industry can be reassured that it may not need to face a cliff-edge moment and that the UK will continue to work constructively with Euratom. All sides recognise that the UK still has some way to go, yet we now have the right framework to bring that about.

In conclusion, I thank the House for its support and those who have participated so persistently and decisively in the Bill, namely the noble Lords, Lord Broers, Lord Warner, Lord O’Neill, Lord Carlile, Lord Teverson, Lord Hutton and Lord Fox, the noble Baronesses, Lady Featherstone and Lady Neville-Rolfe, and the noble Viscount, Lord Hanworth. I certainly cannot forget my noble friend Lord Hunt on the Front Bench, with the expert assistance of Grace Wright in Labour’s support team. This Bill has been a fusion of all the talents: it is a job well done.