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.

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[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—

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[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.

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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.

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[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.