Nuclear Safeguards Bill

Lord Grantchester Excerpts

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

[Lord Grantchester (Lab)]

My Lords, there are indeed many concerns. I have yet to hear any principled criticisms regarding the objectives, operations and outcomes of the EU’s civil nuclear organisation and the framework around Euratom. Indeed, widespread dismay was expressed when it was announced that, in consequence of the leave vote, the UK must leave Euratom. The Bill sets up a parallel inspection, monitoring and regulatory regime as robust as that which exists under Euratom, to be the responsibility of the ONR.

The Euratom treaty is legally distinct from the EU treaty but it shares the same constitutional oversight as the EU: the European Commission, the Council and the European Court of Justice. Although the decision that the UK should leave Euratom is contested by some expert legal advice—and my noble friend Lord Lea—the Government have chosen to do so because of the technical jurisdiction of the ECJ, even though I understand that there has never been a case referred to it. The Government wish to replicate Euratom’s functions and the Bill is confined to the safeguarding functions.

The International Atomic Energy Agency—IAEA—was set up also in 1957 to be the world’s intergovernmental forum for scientific and technical co-operation in the civil nuclear sector. It was set up under the non-proliferation treaty to safeguard nuclear material. Euratom also provides information on member states’ safeguards to the IAEA. Euratom and the IAEA carry out joint inspections of nuclear sites in the UK and endeavour to avoid duplication. There are, therefore, tripartite agreements the UK’s fulfilment of which relies on the UK’s membership of Euratom. The Government intend to replace these tripartite agreements with bilateral commitments whose robustness we will need to examine as the Bill progresses. Perhaps the Minister will say at this stage whether, under the Constitutional Reform and Governance Act 2010, he expects that Parliament will need to ratify these arrangements.

Leaving Euratom without the correct policy, regulatory and research framework in place will have significant implications for the UK’s nuclear and radioactive waste industries, as well as the health industry through radioisotopes, as we have just been discussing. Euratom undertakes supervision of nuclear safety, nuclear fuel supply security, radiation protection through the proper use of materials and safeguards, and research and development in nuclear fusion, as well as radioactive waste and decommissioning. As such, it impacts on many sectors of the economy, including construction and the necessary skills, manufacturing of parts, technical expertise and research.

On the Government’s insistence that leaving Euratom is included in the Article 50 letter and Bill, we agree that this Bill is necessary and that the UK must have a robust safeguarding system in place to meet our obligations. The new arrangements need to be as comprehensive as the current Euratom regime to enable public confidence in continuing high standards, to give international partners confidence in engaging in civil nuclear trade, to support the UK’s ongoing commitment to the global non-proliferation treaties and to demonstrate that the UK is a responsible nuclear state. On all these parameters, there must be severe doubt that the Government can meet these challenges in the timeframe required.

The proceedings in the other place demonstrated that the ONR could not maintain a regime equivalent to the standard set by Euratom from day one. Dr Golshan of the ONR made clear that the aim to have a system in place by March 2019 was unrealistic. The quality and quantity of inspectors required could not be recruited in time. Instead, it is likely that the UK could meet the lower standards set by the IAEA. The Government therefore need to clarify whether they are prepared to start the inspections at a lower level before increasing them to Euratom standards.

The Government recognised the issue with a ministerial Statement on 11 January which stated:

“We will seek a close association with Euratom and to include Euratom in any implementation period”.


“Any implementation period” gives the Government a further two years in which to put in place all the necessary measures. In so far as leaving Euratom has additional and separate wording in the Article 50 letter, will the Minister confirm that this gives the Government the opportunity to secure an implementation arrangement unique to that sector, should the more general and wider exit discussions prove less fruitful? It is imperative for this Bill. There are two treaties. Can the Government clarify that the implementation period acts in relation to this situation?

The ministerial Statement stated that the intention was,

“to ensure a future safeguards regime that will be equivalent in effectiveness and coverage as that currently provided by Euratom, including consideration of any potential role for Euratom in helping to establish the UK’s own domestic safeguards regime”.

We need to explore that potential role for Euratom during the implementation period and whether this Bill needs strengthening in that regard. For example, I imagine that the Minister will confirm today that the UK could subcontract inspectors from Euratom to continue monitoring UK facilities. Practicalities must help shape the architecture necessary for Brexit, and this Bill fits into the wider Brexit discussions.

The ministerial Statement continued by stating that,

“it is vital that Government pursues all options for providing certainty for the civil nuclear industry”.—[Official Report, Commons, 11/1/17; col. 399WS.]

Our amendments in Committee will have this in mind. During the passage of the Bill through the other place, it was proposed that this close association could take the form of an associate membership—a status that is allowable under Euratom’s constitution. The reports are that this week the Government are trying to determine what they want in their future relationship with the EU. The Minister has the opportunity today. There would be little advantage to be gained from regulatory divergence for the nuclear industry outside Euratom. It is hardly a worthy answer to repeat that there is no associate membership class at present under Euratom.

Reconciling legal certainty with flexibility to negotiate presents challenges. The answer cannot include unfettered use of unconstitutional Henry VIII powers under Clause 2 to amend primary legislation. In the other place amendments to constrain those powers were proposed. We also have concerns about the use of those powers. Your Lordships’ Delegated Powers and Regulatory Reform Committee has yet to report on this Bill. We await the committee’s report with interest and will consider appropriate amendments for Committee.

The Bill is drawn up to be narrow in scope. Nevertheless, we need to be aware of all Euratom’s functions and to explore all of its facets, so that the Government can assure the industry that it will continue without disruption post Brexit. Part of the safeguarding regime will include nuclear co-operation agreements. The UK currently utilises Euratom’s NCAs to facilitate trade. Euratom has nine NCAs at present. Although there are requirements for some countries and not others, the UK will need to agree many bilateral NCAs within the necessary timeframes. Can the Minister commit to bringing these to Parliament and confirm the procedure that the Government will utilise?

It is vital that the Government make progress on developing new NCAs quickly. Given that these can only begin after the UK has satisfied the IAEA with regard to its safeguarding regime, it is essential that the UK implements its safeguarding protocols as soon as possible. The ONR has already suffered funding cuts. Under the impact assessment recently published, it is clear that the ONR must be given all the resources it needs to take up the responsibilities included in the Bill. Can the Minister assure the House that the Government will not only commit to providing resources but will not be calling on the industry to co-fund the inspection regime through cost recovery? At present it is funded through the UK’s contribution to the EU budget.

The immediate disquiet around the announcement that the UK will be leaving Euratom focused on two clear concerns: the valuable R&D facility of the Joint European Torus—JET—programme at Culham in Oxfordshire and the supply and maintenance of medical isotopes vital to the health service. The fusion research programme supports 1,300 jobs in the UK and is instrumental in attracting the expertise the UK needs in the nuclear industry. The EU currently provides 88% of JET running costs. Given Switzerland and Ukraine’s association status with Euratom, it is imperative that the Government examine the scope of this associated membership, even if it is limited to research and development facilities. Given how much of the Brexit process will involve the UK and EU navigating an implementation period, trade and the movement of product and expertise—and seeking unprecedented solutions—should not the Government be seeking agreement on a form of association?

The continuing supply of isotopes in medicines has also been subject to questions and debates, and even today has needed extra explanatory exchanges. The UK’s regulatory regime for setting and enforcing standards for the safe use, disposal and transportation of medical isotopes is based on international regulatory requirements informed by the IAEA. The supply has implications for cross-border EU negotiations and trading, and as such merits further investigation. The issue and how relevant it is will certainly need to be examined as the Bill progresses.

Regarding radiation protection, the UK is currently implementing the Euratom basic safety standards directive, which updates the UK’s radiation protection standards. Euratom also underpins trade in nuclear materials, and this will impact on the UK’s security of supply. The replacement arrangements with Euratom will need to cover the ownership of nuclear material. I understand that Euratom appears to be seeking to retain rights over uranic material on UK territory which EU customers have the right to use.

It is a complex task to follow up on all these issues through the various framework architectures. In a briefing the Nuclear Industry Association submitted, in conclusion to its analysis of requirements for the UK withdrawal from Euratom, it drew up a checklist highlighting five actions for the Government. The first is to agree the replacement voluntary offer safeguards agreement with the IAEA and to refund and resource the ONR to establish the UK’s safeguards regime. The second is to negotiate and conclude NCAs with nuclear materials. The third is to clarify the validity of the UK’s current bilateral NCAs with Japan and other nuclear states. The fourth is to set out the process for the movement of nuclear material, goods, people, information, services and protection, to be agreed with the Euratom supply agency. The fifth is to agree the new funding arrangements for the UK’s involvement in fusion for energy and the wider EU nuclear R&D programme. Perhaps the Minister could undertake to map out during the passage of the Bill the Government’s own plans across the field and to clarify in one place the various interlocking arms of the regulatory framework, highlighting the various measures to be enacted under various Brexit Bills to come. I am sure that would be very helpful to all noble Lords.

Labour believes that the best way to maintain nuclear safeguards and protect the nuclear industry is to achieve an equivalent arrangement with Euratom, at least in the implementation period. The Government were reckless to rule out continuing Euratom membership, making the ECJ a defining characteristic.

The Bill is only one small part of the picture. Clarity and certainty for the industry are still missing. I have outlined our five key concerns. We will seek to address them all during consideration of the Bill.

Nuclear Safeguards Bill

Lord Grantchester Excerpts

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

Moved by

[Lord Grantchester]

3: Clause 1, page 1, line 23, at end insert—
“(c) ensuring that inspections of nuclear material, facilities and equipment for the purpose of nuclear safeguards continue at the frequency and standard established by UK membership of Euratom.”

[Lord Grantchester (Lab)]

My Lords, Amendment 3 would amend Clause 1 by adding the requirement that the UK’s nuclear safeguards regime must continue to the standards set by Euratom. Your Lordships’ House heard throughout Second Reading that the inspections undertaken by Euratom were to a higher standard than those set by the IAEA, and it was the Government’s intention that the ONR would be facilitated to continue the UK’s safeguarding and monitoring at this level. The Minister stated that the UK’s nuclear safeguards regime is currently provided primarily by Euratom and that there has been good progress in discussions with the EU about Euratom. Negotiations with the IAEA have similarly been constructive, and progress made with key partners such as the United States, Canada, Australia and Japan. The Minister stated that the UK needs continuity and must work to avoid any break in our civil nuclear safeguards regime to support the nuclear industry. This regime and the safeguards and agreements with the IAEA are critical for the continued operation of our civil nuclear industry. The UK’s new domestic regime must be as robust as that currently provided by Euratom, and the Minister contended that it would exceed the standards that the international community expected of the IAEA.

The Government’s intentions need to be fulfilled. Guarantees need to be kept and ambitions need to be achieved. The amendment would strengthen the Bill to ensure that the only standard under which the UK regime will operate will be consistent with the Minister’s statements—that is, Euratom. The trouble is that we heard from the other place during its examination of the Bill that there is considerable risk that the UK’s regime will not be able to operate at this standard from day one, from the date of March 2019, when the UK will leave the EU. The Minister contended that those standards were needed to ensure that the UK could have the essential nuclear co-operation agreements with key international partners already mentioned, to ensure uninterrupted co-operation in trade and the civil nuclear sector. The UK standards must be as comprehensive as the current Euratom regime to enable public confidence in continuing high standards.

--- Later in debate ---

[Lord Henley]

The noble Lord talks about international obligations. The important thing to remember about the initials IAEA is that the first letter stands for “International”. It is an international body, we have been signed up to it since 1957 and we continue to be so. It will offer those guarantees.

[Lord Grantchester]

I hesitated to respond to the Minister because I was not quite sure what he was saying. Is he saying he accepts our amendment, because he seems to be saying that we will maintain our standards to the Euratom standards?

[Lord Henley]

As all noble Lords will know—particularly those who have been on the Front Bench in government from time immemorial—the lovely word “resist” appears at the top of the brief. No, I am not accepting the amendment. It does not add anything to the Bill. All I am doing is providing the appropriate commitment that we will meet the right standards at the right time.

[Lord Grantchester]

My Lords, I am still confused by the way the Minister goes from one stance to another, saying that he will meet these standards but somehow feels it is inappropriate to have that on the face of the Bill.

I am not satisfied with the Minister’s responses and I do not think the rest of the Committee is either. This is the key challenge to the Government—that they can and will do what they propose in order for there to be a credible nuclear industry in the UK, operating to Euratom standards. The noble Lord, Lord Fox, made a compelling remark earlier, saying that the Government have not appreciated the situation and undertaken a risk assessment of their handling of Euratom issues. On a corporate risk register—one axis being low and high impact, and the other axis being high and low probability—leaving Euratom must be placed at the worst quartile: high probability of an unsatisfactory outcome, coupled with high impact.

We will certainly be appreciating the Government’s response across all the Committee’s amendments, in order to determine the best framework to propose on Report. I beg leave to withdraw the amendment.

Amendment 3 withdrawn.

--- Later in debate ---

[Lord Fox (LD)]

I want briefly to speak in support of Amendment 14, which bears my name. While avoiding repeating what the noble Lord, Lord Carlile, has said, I want to pick out subsection (2)(c) of the proposed new clause, which refers to, “relevant research projects”. The noble Lord, Lord Broers, spoke eloquently in a previous debate about the importance of research in this area. As your Lordships and, I am sure, the Minister know, the UK benefits enormously from the long-term research funding and its membership of the Fusion for Energy programme, which flow through the Euratom relationship. I think the supply chain has been awarded some £0.5 billion to date and expects more, and the UK Atomic Energy Authority receives significant sums—around £50 million. On a broader level, as a leading participant in Euratom and the research element of it, the United Kingdom has been able authoritatively to drive research priorities. What does the Minister envisage our authority being following this process? Will it have risen or sunk as a result of our ability to drive and influence research in the nuclear field?

My noble friend Lord Teverson illustrated how hard and tough the Table Office has been on the wording of the amendments. In many cases—certainly, in other conversations—the Minister has ruled out of order a lot of what we have talked about. However, on Amendment 14, which covers some of these areas, the Table Office has been clear that this is in spec with the Bill and our debate today.

[Lord Grantchester]

My Lords, we have added our names to Amendment 4 in the name of the noble Lord, Lord Warner. It is Labour policy to remain a member of Euratom or to continue equivalent arrangements with it. The Conservative Government have been reckless to reject immediately the UK’s membership of Euratom. Your Lordships’ discussion in Committee last night on the withdrawal Bill highlighted how the Euratom treaty is distinct from the EU treaty. The Government state that, because there is an overlap of membership, with the same nation states as are in the EU, it is part of the same organisation. However, the two treaties are legally distinct, which has not been contradicted by the Government.

The Minister said this morning that both organisations are uniquely and legally joined. He needs to explain how they are so legally. It is reckless to make the theoretical and technical oversight of the European Court of Justice a defining reason, when the UK is far from ready to undertake its own safeguards regimes to the standard maintained by Euratom. The ECJ has never been called on to make a ruling.

Furthermore, the Government have committed to continue as far as possible through negotiations to be in close association with Euratom. They must be exhaustive in their endeavours and report back to Parliament on the outcome. If it is no longer possible to establish an association, they must say so, with reasons.

Amendment 9, in the names of the noble Lords, Lord Teverson and Lord Fox, and the noble Baroness, Lady Featherstone, map out further agreements to be pursued before withdrawal. It requires the Secretary of State to request “a transition period” so that the UK,

“can continue to benefit from existing nuclear safeguard agreements”,

with the approval of the IAEA, that the ONR is the approved UK safeguarding authority. My noble friend Lord Hunt of Kings Heath has spoken to Amendment 12 on the transitional period. It must be recognised that approvals of nuclear co-operation agreements are sequential to the recognition by the IAEA that the UK safeguarding standards are sufficient. Although these NCAs may be progressing, their ratification will necessarily take some time and may spill over into any transition period. We endorse the sentiments behind Amendment 9 as crucial to maintaining the UK as a credible internationally recognised nuclear state operating to international standards.

Amendment 14, in the name of the noble Lord, Lord Carlile, would insert a new clause stating that before leaving Euratom the Government must publish a report detailing agreements reached with Euratom to ensure compliance with international non-proliferation agreements and lay appropriate regulations to give effect to their implementation. We understand and are in unison with the importance noble Lords on all Benches place on the highest standards, the nearest equivalence, the closest association, with any necessary transition period, to replicate the regime currently operated under Euratom. We support the amendment of the noble Lord, Lord Warner, that says the Government must keep Parliament informed regarding the ongoing UK status with Euratom. The noble Lord, Lord Teverson, has also said that it is far from clear where we will be in March 2019, when timing is such a critical issue.

[Baroness Vere of Norbiton (Con)]

My Lords, I thank noble Lords for the opportunity to address this important set of issues around the UK’s future relationship with Euratom. As my noble friend Lord Henley said, the EU and Euratom are uniquely legally joined. Noble Lords will be aware that when we formally notified our intention to leave the EU, we also commenced the process of leaving Euratom. I repeat my noble friend’s assurances, however, that the Government want to maintain the continuity of our mutually successful civil nuclear co-operation with Euratom and other international parties when we leave the EU.

The first half of the proposition of Amendment 4 —that,

“it is no longer possible to retain membership of Euratom”—

has already passed. On 29 March 2017 the Prime Minister notified President Tusk of the United Kingdom’s intention to withdraw from Euratom. We are withdrawing from Euratom but we want a close relationship with it in the future. I believe that it would be deeply irresponsible of Parliament to pass an amendment which, quite explicitly, prevents us from using the powers in this Bill until we have attempted to do exactly the opposite of what the Article 50 letter says we are doing. That leaves the second half of the proposition: that we achieve, “an association with Euratom” that means that it is Euratom rather than our own regulator, the ONR, that carries out safeguarding in the UK after we leave the EU. To reiterate the point made by my noble friend, while the Euratom treaty allows for the conclusion of association agreements that allow third parties to participate in some Euratom activities, these agreements have so far been limited primarily to research and training activities.

This amendment would require us to have explored every avenue and concluded that,

“it is no longer possible”,

before we make regulations to enable the UK’s own domestic regime. That presents enormous timing difficulties and will introduce a risk of the one thing I believe everyone agrees we must avoid—being left with nothing in place from day one of Brexit. I do not believe that the industry would support such a position. We simply cannot await the outcome of the future relationship discussions before we use the regulation-making powers in the Bill. Of course, it may all happen very quickly but, then again, it may not. It would be deeply irresponsible to put ourselves in a position where we cannot exercise the powers in the Bill.

Nuclear Safeguards Bill

Lord Grantchester Excerpts

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

[Lord Fox (LD)]

My Lords, I do not wish to put a dampener on proceedings, as the word “transition” seems to have lifted your Lordships a little, but does the Minister agree that for there to be a transition there needs to be agreement between the United Kingdom and the European Union on the terms of leaving the European Union and that, in the event of there being no agreement, we go into a period where there is no transition? If that is true, I refer your Lordships to that little lecture I gave on risk on the previous day in Committee: there remains a finite risk that we need a safeguarding regime in March 2019. This provision does not take the pressure off us to get this sorted out and to have a process that delivers the safeguarding regime we need, whether or not the prospect of transition is increased.

[Lord Grantchester (Lab)]

I want to speak to Amendment 18, which is in our name, but also to respond to Amendment 7, in the names of the noble Lords, Lord Fox and Teverson, and the noble Baroness, Lady Featherstone, on the Liberal Democrat Benches. Amendment 7 would specify in new Section 76A(9) further consultees the Secretary of State must consult before making any regulations and add the requirement to lay before Parliament a Written Statement on the resourcing and preparedness of the ONR. In conjunction with the other amendments taken last week on Euratom and the UK’s levels of standards, we agree that this would be most useful. However, it may not go far enough, in that it would be the Secretary of State doing the interpretation of any evidence received and judging its sufficiency. Notwithstanding the comments of the noble Viscount, Lord Trenchard, and the noble Baroness, Lady Neville-Rolfe, these matters were debated last week and it would be the Government making the declaration. The Committee was not inclined to take at face value many of the Government’s assurances last week. Unfortunately, I have not seen the recent letter to the noble Lord, Lord Carlile, nor the letter from the noble Baroness to the noble Lord, Lord Teverson. I request that in future the whole Committee be copied in to the letters, so that we can keep abreast. Many thanks.

--- Later in debate ---

[The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Henley) (Con)]

My Lords, I start by offering my apologies to the noble Lord, Lord Grantchester, as he did not receive a copy of that letter. I will make sure that copies are made available. I thought that I had arranged for copies of all the letters—those I sent on the 20th, the one on the 28th to the noble Lord, Lord Carlile, and the one from my noble friend, I think again on the 28th, to the noble Lord, Lord Teverson—to be placed in the Library. After 40 years in this House, I still do not quite know exactly what that means—I think one can go along to the Library and get a copy, but I leave that to noble Lords. I will certainly make sure that copies are made available to all those who want them.

[Lord Grantchester]

One does not wander to the Library just in case there might be something there, so it would be useful.

[Lord Henley]

I fully accept that. I think the idea is to make it clear that they have been made public and are available. I will make sure copies are made available to noble Lords.

Before dealing with precise matters relating to the amendment, I shall say a word or two about the implementation period and transition because that was raised by my noble friends Lady Neville-Rolfe, who has great experience in this matter as a former Minister in the department that I have the honour to represent, my noble friend Lord Trenchard and the noble Lord, Lord Teverson, who was in receipt of a letter from my noble friend Lady Vere. The second paragraph of that letter sent on the 28th stated that details and terms of an implementation period have yet to be agreed, that it is assumed that the United Kingdom will no longer be a member state of the EU or the EEA during the implementation period, that the base case for the length of the period is around two years and that the UK will continue to mirror the EU acquis—the entire EU legal framework—during that period.

We also note that the Commission has published its draft of the withdrawal agreement. The noble Lord, Lord Teverson, referred to this. It is just a draft at the moment. The exact content of the United Kingdom’s withdrawal agreement from the EU will be a matter for negotiation, and we are working hard to deliver the best possible outcome for the UK while making good progress on negotiating our deep and special future partnership with the EU. I do not think I can take the noble Lord or the Committee any further on that matter at this stage.

Amendments 7 and 18 ask for much greater consultation to be set down in law. My noble friend Lady Neville-Rolfe was rather worried by the precedent, should it be enacted, that we make a Written Ministerial Statement at certain stages. I hope I can give the appropriate assurances about what we intend to do to keep Members of the Committee and the House fully informed about what we are doing over the course of the coming year.

First, I shall clarify my Second Reading response to a question from the noble Lord, Lord Hunt of Kings Heath, I think, about the potential cost to industry of the new regime. I referred only to the cost to the ONR of setting up the domestic regime. The department has already committed to allocate to the ONR the funding necessary to establish the new regime. In respect of ongoing funding—the matter which this amendment is aimed at addressing-–I can make a clear commitment now that a decision on cost recovery and charging arrangements will be subject to close engagement with industry and other key stakeholders, as well as public consultation.

We intend to publish a public consultation and an impact assessment on the regulations later this year. I repeat to the Committee that we have made those regulations available in draft already. It is estimated that the ongoing costs of operating a domestic safeguards regime—

--- Later in debate ---

[Lord Henley]

I will make it available in the Library, as well as to other noble Lords who want copies of it.

To summarise briefly what I tried to set out in that letter, and for the benefit of the Committee, we are working closely with the ONR to ensure that it will be in a position to regulate the new safeguards regime. The ONR is in the process of expanding its safeguards function by recruiting and training additional inspectors, building additional institutional capacity and developing the necessary IT systems. I want to stress—having made a visit to Sellafield, which has two of the three sites in this country where nuclear safeguarding takes place, with a senior representative from the ONR and others—that on the information given to me it is my assessment, based on current progress, that the ONR will be in a position to deliver to the international standards as required by the IAEA on withdrawal from Euratom in a year’s time, in March 2019.

[Lord Grantchester]

At this stage, I intervene only to ask: is the Minister aware of the full costs of all the measures to be implemented to enable the ONR to go ahead with this regime, or is that work still in progress?

[Lord Henley]

As I said earlier, we think that the costs will be broadly in line with the current costs of what we pay to Euratom, which is £9.5 million a year. But there may be certain funds to pay for the changeover, which again I dealt with at Second Reading by saying that money would be made available for it. Ongoing costs will be broadly in line with where we are, and that will be satisfactory.

[Lord Grantchester]

I apologise for coming back to the Minister but, as I understand it, we are talking about two items. One is the ongoing cost of £9.5 million, which I quite agree is defined already by the EU’s contributions to us for the Euratom programme. I meant the full cost of the set-up, which initially had a £2.275 million contribution from the contingencies fund. What does he think the full cost will be, and is he happy and confident that it will be kept within that contingency fund? Has he now completed the inventory and can he update us on what the full cost may be of implementing all the measures necessary?

[Lord Henley]

I think I answered that question at Second Reading and gave a figure to the noble Lord. Rather than trying to guess or remember what I said on that occasion, I will write to him. But I am perfectly happy that we have made that commitment. There will be sufficient funds and then there will be ongoing costs—the noble Lord is right to distinguish between the two—and again, we are happy about that.

--- Later in debate ---

Moved by

[Lord Grantchester]

8: Clause 1, page 4, line 3, at end insert—
“( ) In section 156 of that Act (commencement), after subsection (3) insert—“(3A) Section 112(1B) expires at the end of the period of two years beginning with the day on which that section comes into force.””

[Lord Grantchester]

I shall also speak to Amendment 13 in this group. At Second Reading we on these Benches drew attention to the powers that the Government wish to confer on themselves through the Bill. At that time we signalled that we would take into consideration the views of your Lordships’ Delegated Powers and Regulatory Reform Committee on the Bill. The committee has now reported its findings in its 13th report of this Session, drawing attention to three areas of concern. My noble friend Lord Hunt highlighted the first in an amendment last week, that “civil activities” should be defined under new Section 76A(5) in Clause 1(2) of the Bill.

Amendments 8 and 13 draw attention to the other issues drawn attention to in the report. Amendment 8 concerns the definition of “relevant international agreement” in the power conferred on the Secretary of State under new Section 76A(1)(b) to give effect to any future relevant international agreement. When this happens, the functions of the ONR are extended to include taking the necessary steps to ensure compliance with that agreement. In the present situation where the Government are in negotiation with the IAEA and several key partners, the report does not find it unreasonable that the Government extend their powers in this way. However, the committee is correct when it states that this should not result in the Government having an enduring power into the future, long after the UK has withdrawn from the Euratom treaty.

Amendment 8 would set a sunset provision so that in new Section 112(1B) in the Energy Act 2013 these powers may not be exercised after a period of two years from withdrawal from Euratom. This two-year period would reflect Clause 8(4) of the European Union (Withdrawal) Bill, where powers to amend legislation to prevent breaches of international obligations arising from the EU withdrawal will cease two years after exit day. This comfortably sits alongside any transition period that the Government are set to announce, maybe as early as tomorrow, in response to the announcement yesterday by the EU Commission.

Amendment 13 concerned the powers being conferred on Ministers under Clause 2 of the Bill to amend the legislation listed under Clause 2(1) relating to nuclear safeguards. The memorandum prepared by the department for the Delegated Powers Committee explains the provisions and agreements between the UK, the IAEA and Euratom. At Second Reading it was acknowledged that these tripartite agreements would need to be replaced. Necessarily, the voluntary offer agreement, the VOA, and additional protocol, AP, will become ineffective on the UK’s withdrawal from the Euratom treaty.

As in Amendment 8, the committee agreed that the Government may take the powers to amend both primary and secondary legislation to ensure compliance with the UK’s international obligations after withdrawal. However, once again, there is no justification in the memorandum for these powers to continue indefinitely. We agree, and therefore Amendment 13 similarly sets a sunset provision to Clause 2: that the powers to be conferred cease after two years and may not be exercised following the end of that period.

At Second Reading, the Minister replied that he would look carefully at any recommendations forthcoming from your Lordships’ Delegated Powers Committee, and I would appreciate hearing from his noble friend that they will bring forward government amendments on Report to give effect to these recommendations. I beg to move.

[Lord Fox]

I support Amendments 8 and 13 and do not intend to speak at length. When the Minister was responding to Amendment 6 in the Committee’s previous sitting, he expressed a high degree of approval of the Delegated Powers and Regulatory Reform Committee, and I trust that that continues through these amendments. The case has been set out by the noble Lord, Lord Grantchester, and the DPRRC, and I hope that on these two amendments the noble Baroness can give us similar encouragement to that given by the Minister on Amendment 6. We on these Benches support the restricted use of these measures to give the Government the flexibility that they need. This is a good compromise between untrammelled power and the power they need for the flexibility to ensure the necessary regime.

--- Later in debate ---

[Baroness Vere of Norbiton]

Of course, it is very difficult to be specific on that but, as we know, we are focusing on four NCAs in the first tranche. The noble Lord will know that there are many other countries with which we would like to have an NCA in future which perhaps do not fall within the first tranche. The second thing to recognise is that this is not just about entering into new NCAs; it is whether new obligations arise as conditions change within the international community for safeguarding. This gives us the flexibility, but it is not drawn so widely that we can do whatever we like.

While we cannot accept Amendment 8, I would like to provide reassurance of the scrutiny that will be in place to ensure that there is proper oversight in the use of this power. Pursuant to the Constitutional Reform and Governance Act 2010, we would expect any new international treaties relating to safeguards to go through the ratification processes set out in that Act. Use of the power to make regulations specifying agreements as “relevant international agreements” is itself subject to the draft affirmative procedure in all cases, and any regulations made under the power that relies on these agreements must be consulted on. I am therefore confident that an appropriate level of scrutiny and restriction of powers is already in place.

I recognise the principles which lie behind the proposed amendments, and I hope that noble Lords will accept why I cannot accept them today. I therefore hope that the noble Lord, Lord Grantchester, feels able to withdraw his amendment.

[Lord Grantchester]

I thank the Minister for that very full response and am grateful, too, to hear the whispers between her and the Minister on the Front Bench. Our expectations are always full of hope, but I am rather troubled by her response to Amendment 8, and we will need to consider her reply very carefully. I am not sure that the power should be enduring. However, she said in her response to the noble Lord, Lord Fox, that it is important that there continues to be scrutiny and oversight of these agreements. We will study her response very carefully. In the meantime, I beg leave to withdraw the amendment.

Amendment 8 withdrawn.

Nuclear Safeguards Bill

Lord Grantchester Excerpts

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

[Lord Grantchester (Lab)]

My Lords, I thank the noble Lord, Lord Broers, for tabling this amendment, to which we have added our names. I will say again what the amendment does so that we can be clear. The amendment delays the UK’s withdrawal from Euratom until the required agreements that will allow the civil nuclear industry to continue are in place. These required agreements are listed and have been debated at length in Committee. They are not in place at the moment and there is widespread opinion that they will not be— indeed cannot be—ready before exit day in March 2019 and, in respect of the proposed new subsection (3)(c) on international agreements, before the end of any transition period yet to be fully agreed.

In saying what the amendment does, we should also be clear what it does not do. It does not stop the withdrawal of the UK from either the EU treaty or the Euratom treaty. It does not seek that the UK will remain permanently either in the EU or in Euratom. The problem in scrutinising this Bill in your Lordships’ House is that the Government have been reluctant to give clarity to their negotiations—about what is and what is not included in them and how far they apply to nuclear safeguards and the Euratom treaty. The Government have even been reluctant to spell out exactly what immediate standards will be adhered to on exit day. I thank all sides of the House for the persistent challenges that have come to the Government and for remarks made again today examining the situation. I also thank the Minister for recognising the importance of this issue and providing what further assurances the Government are prepared to give. But the risks remain.

The conclusion is that the UK cannot set up its own Euratom-standard safeguards regime in time. In this situation it is only responsible that this House should insist on a delay. The importance of maintaining the UK’s integrity to be part of an international civil nuclear order cannot be overstated. Once the vital international safeguards standards have been met and agreed, withdrawal of the UK from the Euratom treaty can proceed. This may well take longer to achieve than even the transition period may be able to offer.

The Government will want to claim that the amendment is defective. That is the default position, since the Government always state that the two treaties of the EU and Euratom are legally joined. That the two treaties share common institutions is not to be denied, but the Government have not come forward with their legal advice for the interpretation that they cannot be separated. There are two distinct treaties. As was discussed last night in amendments to the withdrawal Bill, the UK was a member of Euratom distinct from the EU treaty, because this was the case before the UK joined the EU. Furthermore, in the Prime Minister’s letter of 29 March 2017 to President Tusk, she deliberately mentions both withdrawal from Euratom under Article 106a of the treaty establishing the European Atomic Energy Community and withdrawal from the EU. They are, therefore, separate.

Article 106a has never been invoked and was not mentioned in the drafting of the EU (Notification of Withdrawal) Bill, which the Government insisted could not be amended. So the amendment does not try to undo anything legislatively that has already been agreed by Parliament. The Government claim that power to withdraw from the EU includes the power to withdraw from Euratom, so they make it a tautology in their opinion, and make no further reference or inclusion of Euratom. It can be argued that the noble Lord, Lord Broers, wishes to insist on the principle that leaving Euratom be delayed until the UK is ready. It is Labour policy to remain a part of agencies such as Euratom, as has been stated in the other place. The Government can perfect any drafting at Third Reading.

The Prime Minister herself, in her Mansion House speech on 2 March, stated that the Government want to explore with the EU how the UK can remain part of EU agencies. She mentioned three—namely, the European Medicines Agency, the European Chemicals Agency and the European Aviation Safety Agency—and went on to explain the reasons. By accepting this amendment, the Government can, in their determination to be in close association with Euratom, keep withdrawal from Euratom in suspense while they explore how far adherence to EU rules can still be beneficial to the UK. The Government have expressed this wish repeatedly without further definition. In a letter to my noble friend Lord O’Neill of Clackmannan dated 28 February, the Minister stated that,

“the Government’s focus is on the outcome rather than the means”.

That means that the House needs to focus on the outcome of the amendment.

--- Later in debate ---

[Baroness Vere of Norbiton (Con)]

My Lords, Amendments 4 and 5 seek to place a time limit, also called a sunset, on use of the power in Clause 2. I would like first to explain how Clause 2 works.

Clause 2 contains the power to amend by regulation the Nuclear Safeguards and Electricity (Finance) Act 1978, the Nuclear Safeguards Act 2000 and the Nuclear Safeguards (Notification) Regulations 2004. It can amend those three pieces of legislation only, and amendments can only be those in consequence of a “relevant safeguards agreement”, that being very specifically an agreement relating to nuclear safeguards to which the UK and the International Atomic Energy Agency are parties.

This is a narrowly drawn power to enable the amendment of references in this legislation to provisions of safeguards agreements with the International Atomic Energy Agency—which I shall refer to simply as the agency. This legislation enables the agency to carry out its activities in the UK, including by providing it with legal cover for activities of its inspectors in the UK. For the UK to have a domestic safeguards regime in future, it is essential that the legislation specified in Clause 2(1) can be amended to make correct reference to new safeguards agreements that the UK enters into with the agency.

The legislation cited in this clause is extremely unusual in that it makes detailed references to specific provisions of international agreements. As such, these references—for example, to articles—are likely to change as a result of any amendment of, or change to, those agreements. The power in the Bill is therefore necessary to make the changes to the relevant legislation to update those references when the new agreements are in place.

The UK’s safeguards agreements with the agency, and the agency’s ability to perform safeguards activities in the UK in accordance with those agreements, are absolutely fundamental to the agency’s application of safeguards in the UK. While the power is narrow, it is essential and underpins the entire regime. The unavoidable nature of negotiations means that we are tied to timing uncertainties and this power constitutes the only way we can address that uncertainty.

The Delegated Powers and Regulatory Reform Committee agreed that the power in Clause 2 is necessary and appropriately framed. It recognised that it is intended as a way of reflecting the new agreements with the agency required to establish the UK’s civil nuclear safeguards regime, and recommended preventing the use of the power after a period of two years had expired.

The Government accept the principle of the committee’s recommendation, and of Amendment 5, that we should not retain this power for an indefinite period. However, the regime is heavily reliant on wider international negotiations and it is therefore of the utmost importance that the power is not sunsetted prematurely. Prematurely sunsetting this power could result in the relevant provisions becoming ineffective, leaving the UK without an effective domestic safeguards regime and in breach of any new international safeguards agreements put in place with the agency. The potential consequences of such failures are serious. The UK’s reputation as a responsible nuclear state would be damaged.

The international negotiations relevant to this power are unprecedented in their nature. I consider it essential to retain a provision enabling the UK to adapt to any circumstances affecting the timing of the commencement of international safeguards agreements between the agency and the UK. I hope that, in the light of my explanation, noble Lords will feel able not to press their amendment, and the House will feel able to support government Amendment 4. I beg to move.

[Lord Grantchester]

I speak to our Amendment 5, which is in this group. In Committee, we proposed that the power of the Secretary of State to enter into relevant international agreements without parliamentary approval be limited to a two-year period. The Government have accepted the principle but wish to extend the power to five years, as the Minister has proposed. We accept that this power is necessary and that there is oversight in its use through the Constitutional Reform and Governance Act 2010.

However, I would like to press the Minister on why the Government think that a two-year period that coincides with any transition period could be insufficient to conclude necessary wider international agreements. We certainly do not wish to leave the UK without an effective domestic safeguards regime, in breach of any new international safeguards agreements put in place with the IAEA, but the Minister has not properly explained why she thinks it could be premature if this sunset clause were brought in at a period of two years.

The government amendments seek a further three years beyond the end of any transition period. Can the Minister clarify the kind of agreement she thinks could still be outstanding? I wonder whether included here could be the circumstances already drawn attention to in the earlier amendment of the noble Lord, Lord Broers, under proposed new subsection (3)(c), regarding international agreements with third countries, whereby the NCA agreement with, for example, the US could well take longer than any transition period. He argued for a suspension to our leaving Euratom.

[Baroness Vere of Norbiton]

I thank the noble Lord for his contribution. It is clear that the sunset provision we are discussing relates to the arrangement with the agency; it does not cover the nuclear co-operation agreements. Those are separate agreements.

We have thought very long and hard about the sunsetting of this—I think it falls into the territory of known unknowns—and we believe that two years is certainly too short and that five years is the right length. There may be circumstances that we cannot possibly foresee at this time that will make it necessary for the sunset clause to exist for slightly longer. We have now agreed—we hope, because nothing is agreed until everything is agreed—the implementation period. I think that noble Lords should take quite a lot of comfort in that implementation period in that, during that period, our safeguard arrangements will still be provided by Euratom. Indeed, it gives us an extra 21-month period for these arrangements to be put in place. Nevertheless, I think that the five-year period is appropriate. We have looked at the recommendations of the DPRRC and agree with them. A period of five years is the most appropriate time.

--- Later in debate ---

[Lord Hunt of Chesterton (Lab)]

My Lords, an important point about Euratom is that it had a research programme on connecting fusion and fission. A long-range problem in the nuclear industry is finding ways of dealing with nuclear waste. As the Euratom programme showed, one way of doing that in future would be to connect it to fusion, because fusion produces fast neutrons that can process waste and give it a shorter half-life. That is an extremely important issue, and the people who will be able to work on it will have a very broad range of specialties, not just the narrow range that experts have at the moment.

[Lord Grantchester]

I commend the noble Lords, Lord Teverson and Lord Warner, for bringing back this amendment on Report. It concerns an important issue: that the UK must address the skills that are needed in the UK. The problem of labour supply with the necessary skills beyond those present and available in the UK will need to be addressed by several industries—and none more crucial than the power industry, in relation not only to new build but to the continuing need for decommissioning.

EDF is certainly correct to identify the importance of the specialisms needed to deliver Hinkley Point C on time. The noble Lord, Lord Warner, drew attention to this and to the Immigration Rules. With restrictions on freedom of movement, currently no route is identified for the many categories of workers to enter the UK under the points system in order to fill the vacancies envisaged. It is crucial that the Minister’s department underlines the importance of the issue to the Home Office and comes up with a solution. It will be needed in the best interests of the UK’s civil nuclear industry.

[Lord Henley]

My Lords, I am grateful to the noble Lord, Lord Teverson, for moving his amendment, and for the contributions of other noble Lords. I accept that it will continue to be important to attract—as the noble Lords, Lord Hunt and Lord Warner, and my noble friend Lord Selborne put it—the brightest and the best, to ensure that we maintain our excellence in the nuclear field. This amendment, however, is somewhat more limited in scope than that. Our future immigration system will be set out shortly and it would not be right for me to go into it. As my right honourable friend made clear in his Statement on 11 January, we will ensure that businesses and communities, as well as Parliament, have the opportunity to contribute their views before any decisions are made about the future system that the Home Office will be developing.

--- Later in debate ---

[Lord Fox]

Following my noble friend Lord Teverson’s excellent explanation for the reason for this amendment, on the long-named programmes and systems in proposed new subsection (2), can the Minister tell the House whether these are built on existing systems that are being adapted or will they be built from scratch? The Minister may have to write to me in answer. Also, on the nature of the IT companies delivering these, is there competition in delivering systems such as this or is this a very specialist area with a small pool to fish from and not much choice, which of course leads to price escalation?

[Lord Grantchester]

I thank the noble Lord, Lord Teverson, for raising the important issue of the information technology systems necessary for nuclear safeguards. I also saw the written Q&A from the noble Lord and I thank the Minister for replying so swiftly. In Committee, the importance of understanding the full inventory costs in IT management systems was debated. The Government clarified that the full implications of the mechanisms that the ONR will need to set up are matters that could be included in each report that the Government will undertake. It can only build confidence that Parliament will be reassured through any audit process that the UK’s regime will be costed, reported and certified to be robust.

[Lord Henley]

My Lords, I am grateful to the noble Lord, Lord Teverson, for moving his amendment. He and the House really want two things. They want substantive reassurances and details of further reporting. I asked to have this amendment grouped with Amendment 6, which to some extent deals with this matter. We propose to put such reporting on the face of the Bill, and progress with the information technology systems required for the safeguarding regime will fall within that reporting duty. I hope that the noble Lord will feel that he does in due course get sufficient information. In the meantime, I will give an update about what is happening. As the noble Lord, Lord Fox, said, I might have to write with further detail later on, but let us see how the quarterly statements take place to see whether they provide sufficient information. If not, noble Lords can come back to me.

The overall system of safeguards is generally referred to as a state system of accountancy for and control of nuclear materials. The noble Lord referred to that in my original Written Answer. That is also known as an SSAC. The last time I came across SSAC it was the Social Security Advisory Committee, but that was in another world and another place. We will not go there now. As part of this, the ONR plans to put in place an IT system which it refers to as the safeguards information management and reporting system. I do not know how you pronounce “SIMRS” so we shall refer to it by its initials. The SIMRS is aimed at enabling the ONR to obtain and process the information necessary to ensure timely submission to the International Atomic Energy Agency of the reports required by any future safeguards agreements with the agency. The SIMRS will also enable submission of any specific reports required by supplier states as part of nuclear co-operation agreements.

The ONR has estimated that it will cost some £10 million—the figure I gave some weeks ago in Committee—to establish a UK SSAC, and the SIMRS is included as a part of this overall estimate. A pre-qualification questionnaire in relation to the SIMRS was recently advertised on the Government’s digital marketplace. Sixteen suppliers responded, of which six have been invited to respond to the invitation to tender by 6 April. Responses to that tender will provide more certainty on estimated costs, and the ONR expects to let the contract in early May.

I of course take note of what the noble Lord, Lord Warner, warned about IT systems from his experience with the health service and the Home Office. We are all aware of problems that new IT systems can have. I do not think that what we are proposing here is on the scale of what the National Health Service needs, but I accept that there can be problems. We and the department have a duty to examine that as carefully as we can. I give an assurance that we will do that as far as is possible.

Put very simply, that is where we are at the moment. We will keep noble Lords updated. We have accepted my Amendment 6, as amended by the amendment moved by the noble Lord, Lord Hunt. There is no need to further complicate the Bill’s proceedings by adding this amendment, which duplicates what we already have. Therefore, I hope that the noble Lord will feel able to withdraw his amendment.

Nuclear Safeguards Bill

Lord Grantchester 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.

[Lord Henley]

My Lords, I thank the noble Lord, Lord Broers, for both his support for the amendment and for setting such a good and welcoming tone for the debate. I thank all other speakers for their positive remarks—although I accept that there are still challenges ahead, as the noble Lord, Lord Teverson, put it. As I made clear during the passage of the Bill, I want to continue to provide information to the House as we proceed to make sure that everyone is happy with what we are doing to ensure that the right arrangements—or the appropriate insurance policy, as my noble friend Lord Inglewood and the noble Baroness, Lady Featherstone, put it—are in place.

The House will be aware that the passing of this Bill is just one of the steps needed to establish new nuclear safeguards arrangements for the United Kingdom. It is only one aspect of the Government’s efforts to maintain close and effective arrangements on civil nuclear co-operation, safeguards and safety with Euratom and the rest of the world. To that end, we have made good progress both at home and abroad. The Office for Nuclear Regulation has enhanced its organisational capacity and capability to deliver the future safeguards regime. I assure the noble Lord, Lord Hunt, that we have increased its available funding to £10 million, which includes the procurement of the new IT system. I assure the noble Lord, Lord Teverson, that we will do all that we can to make sure that the system is appropriate. We are also recruiting and training a large number of new inspectors and strengthening the institutional capacity to deliver the project within budget.

We will soon consult on nuclear safeguards regulations. An early draft of that was provided to this House. The department and the Office for Nuclear Regulation will continue to engage stakeholders individually and through wider events. I assure the House that only this morning, in Vienna, the IAEA board of governors formally approved new bilateral international safeguards agreements with the United Kingdom to replace the current agreements, which include Euratom. We expect that they will be signed tomorrow. The conclusion of these agreements, which will take effect once Euratom arrangements cease to apply to the UK, once again demonstrates this Government’s sustained commitment to the civil nuclear sector, international safeguards and nuclear non-proliferation.

I can further reassure the noble Lord, Lord Teverson, that on 4 May, as I think he is aware, the Government signed a new nuclear co-operation agreement with the United States of America. That will be ratified by Congress and laid before Parliament before ratification in the UK. Again, I will make sure that the House is kept informed of that process. On further NCAs, good progress continues to be made to put in place respective arrangements with Australia, Canada and Japan ahead of March 2019. Again, I will inform the House when that happens.

As part of EU exit negotiations the UK and the EU have agreed the terms of an implementation period, as the House will be well aware, running until the end of December 2020. That means that existing Euratom arrangements, including international agreements, would continue during this period.

I hope that I have given all appropriate assurances to noble Lords who have taken part in the short debate on this Motion. I beg to move.