Nuclear Safeguards Bill

Lord Teverson Excerpts

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

[Viscount Trenchard (Con)]

My Lords, I support what my noble friend, Lady Neville-Rolfe, just said. I would also be cautious about including in the Bill a requirement to ensure that there should be sufficient staffing, because it is not a good reason to decide whether to put in a certain control. Obviously everything the Government undertake to do must be properly staffed.

I ask the Minister to confirm whether the Government consider that a transition period will be necessary for Euratom as well as for the EU generally. I had understood that the Government expected to put in place a satisfactory accredited nuclear safeguards regime before March next year, although I understand that certain doubts have been expressed about whether that is feasible in the time available, given the necessity to obtain the consent of various other countries’ legislatures, with which we would have to establish new nuclear co-operation agreements. Could the Minister tell the Committee whether a transition period for Euratom is envisaged?

I question what the noble Baroness, Lady Featherstone, said about Euratom standards being better than IAEA standards. I understand that the Government’s intention and commitment is ultimately to reach Euratom standards, but I am not sure there is any evidence that Euratom’s standards are better than IAEA standards. Two weeks ago at a briefing by a representative of EDF, together with the NIA, we heard that, in his opinion, the safety standards set by the IAEA are more robust on process, procedures and controls than those set by Euratom and that Euratom concentrates heavily on verification processes that may or may not add anything to achieving a satisfactory level of safeguards. I look forward to hearing the Minister’s comments on that.

[Lord Teverson (LD)]

My Lords, I strongly support my noble friend’s amendment, but want to follow up what was said by the noble Lord, Lord Carlile, who made the obvious point that the more the Government keep us in touch with what is going on, the more confidence everybody, including the industry, has; we might then avoid half the debate we have every time we discuss Euratom. That is true of the whole process of EU withdrawal, but if we could just get it right in this niche area of Euratom, we could save the Government, Ministers and Parliament a whole load of time just by understanding what is going on.

To be honest, I think the Government undersell their position in this area in all sorts of ways. I thank the Minister, the noble Baroness, Lady Vere, for her letter to me in response to my question at the end of the last session about the transition for Euratom, because, so far as I could see, there was no disagreement between Brussels and the UK about it. The noble Baroness’s letter effectively confirmed that. In the legal draft framework on withdrawal and transition, there is a whole area on Euratom—I read it through yesterday; I do not have it here. In terms of the EU-UK relationship, the withdrawal from Euratom, particularly in respect of the transitional period, seems fairly well agreed, and I welcome that. The difficulty I still have is around third parties. There has been good communication on where we have got to with nuclear co-operation agreements, but I am still unclear as to whether the International Atomic Energy Agency and third countries are happy to accept that, while not being a member of Euratom, we can still use all those provisions as a safeguarding regime.

I also noted in the document the expectation of the UK to come up to Euratom standards on nuclear safeguarding. I would be very interested to hear the Minister’s explanation of that and what it means for the transition and withdrawal process.

[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.

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Then there is the ongoing running cost of operating the monitoring and inspections that are presently funded by EU budgetary contributions of £9.5 million a year. The industry is very concerned that the Government will require it to self-fund the safeguarding amount in addition to funding already passed to it for safety and security. The costs of Brexit should be disclosed in full and the Government should play fair by the industry. The Minister agrees, in his letter of 20 February, that they will carry out a full consultation, including close engagement with industry and key stakeholders. Are the Government willing to show their commitment? In answering these questions, will the Minister clarify the position of ownership and retained rights of EU customers to UK operations, such as uranic material at URENCO in Cheshire, that EU customers have the right to use? This could cause operational difficulties of physical segregation. I would be quite happy if the Minister were to write to me on this last, technical note.

[Lord Teverson]

My Lords, as we are in Committee, it may be helpful if I quote article 77 of the draft treaty published by the European Commission yesterday, which is specifically around nuclear safeguards. It states:

“The United Kingdom shall implement a safeguards regime applying a system offering equivalent effectiveness and coverage as that provided by the Community in the territory of the United Kingdom until the end of the transition period”.


That accepts that there is to be a transition period, as long as we are not in a no-deal situation. There is a transition period—there is no disagreement between us and the EU about that—but the EU expects that to be at Euratom standards. I cannot see that that can be any different if we remain within the acquis during that period, which I think both sides are agreed to anyway.

[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.

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Moved by

[Lord Teverson]

10: After Clause 1, insert the following new Clause—
“Freedom of employment for specialists
Article 2(g) of the European Atomic Energy Community Treaty, ensuring freedom of employment for specialists, continues to have effect in UK law in relation to those who work in nuclear safeguarding, after the United Kingdom leaves Euratom.”

[Lord Teverson]

My Lords, let me say first that the last thing that I would expect—and this will be a great relief to the Government—is for this amendment in its current state to be in the final Act as it is passed. It is in many ways a probing amendment, but an absolutely critical and important one. I quote Article 2(g) of the Euratom treaty to which this amendment relates. It says that the Community shall,

“ensure wide commercial outlets and access to the best technical facilities by the creation of a common market in specialised materials and equipment, by the free movement of capital for investment in the field of nuclear energy and by freedom of employment for specialists within the Community”.

So it is all around being able to take advantage of that freedom of movement of nuclear specialists, particularly as this amendment has to relate to safeguarding only—but really it is much more general than that, into the future and beyond our withdrawal from the Euratom treaty.

One great privilege that I have in this House is to chair one of the European Union Select Committee sub-committees, the EU Energy and Environment Sub-Committee. We have undertaken a number of Brexit reports over the last year, including on environment, energy security—from which I shall quote in a minute—agriculture and fisheries and animal welfare. We are currently looking at food security. One key theme of all those reports, very much on a cross-party basis, is the issue of supply of specialist labour after Brexit has taken place, and how a number of those sectors, from agriculture right the way through to the nuclear industry, are dependent on specialists. Those specialists are not always the great and the best and the Nobel Prize winners whom we want in this country, but they are the people who have their own specialist skills in things that you would not necessarily take degrees in—particularly in the agricultural sector—and we can take advantage of those skills because they are not available in the United Kingdom.

I just give one or two examples from our report Brexit: Energy Security, to which we are still waiting for a government response—which is not overdue at the moment, I would add. The noble Lord, Lord Rooker, quoted these examples on our previous day in Committee, but I will go back through some of them, particularly around energy security and the nuclear industry workforce. In paragraph 41 of the report, we quote EDF, which stated:

“The highest concentration of non-British nationals as a percentage of the total employed workforce is within Nuclear New Build”.


Angela Hepworth, the corporate policy and regulation director of EDF provided some detail saying, on Hinkley Point, which is new nuclear,

“we are going to need 1,400 steel fixers. At the moment, the total population of certified steel fixers in the UK is 2,700 so we would need more than half of the total”.

The Institute of Mechanical Engineers stated that,

“the nuclear sector relies heavily on skilled workers from Europe”,

as did the Centre for Nuclear Engineering at Imperial College London:

“The free movement of skilled professionals within the nuclear industry is critical to its long-term success”.


Energy & Utility Skill told us that,

“any new immigration policy must avoid arbitrary distinctions between ‘higher’ and ‘lower’ skilled jobs, based on inaccurate criteria such as whether or not it requires a degree”.

I am well aware that this is broader than safeguarding itself, but safeguarding is also a part of that nuclear skill set and this is the only way that I could really get this in the Bill, because our safeguarding regime is a key area where we have this challenge. I emphasise again that I am quite satisfied that the UK and EU 27 can come to an agreement on a transitional period that gives us extra time; I am relaxed about that, but I am not relaxed about the point made by my noble friend Lord Fox that, with the other issues that there are around the withdrawal treaty—not least around Ireland—the possibility of coming to no deal has perhaps gone up. We still need to have a strong contingency so that we are ready in this area by 29 March next year.

The only way that I can see for us to do that is to make sure that we continue freedom of movement for nuclear specialists beyond our withdrawal from the agreement. On this, I remind the Government that the nuclear industry is one of the key sectors identified in their industrial strategy and, if that is to be fulfilled, we need to make sure that freedom of movement continues in this area—and, I would say, more widely than just safeguarding.

My question to the Minister is: will BEIS have enough backbone to really confront the Home Office, and perhaps No. 10 as well, on this issue, because the Home Office is naturally resistant to anything to do with migration? Will we be able, through the discussions between BEIS, the Home Office and perhaps No. 10, to make sure that this freedom of movement within the nuclear industry, not least in the safeguarding sector, continues after Brexit? I beg to move.

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[Lord Henley]

I am fully aware of the concerns of the noble Lord and of the industry. Obviously it is a matter for the Home Office to develop these policies, and I am very grateful that a Home Office Minister—just by chance—happens to be sitting near me; she will listen to this and take it back to her colleagues. I repeat that we are satisfied that we can deal with safeguarding. Our concerns, the noble Lord’s concerns and other concerns will be dealt with. Proposals for a future immigration system will be set out shortly. That is something that my right honourable friend the Secretary of State for Business, Energy and Industrial Strategy will play his part in.

The noble Lord said that his amendment was a probing one. I hope that I have given the appropriate assurances for him to withdraw it.

[Lord Teverson]

I thank the Minister for his response. No doubt this debate will continue when we debate the Brexit and energy security report on the Floor of the House. I will just say—to all Ministers who are present—that the whole of history tells me that this is going to be a very difficult ask. It seems obvious, in terms of getting it right for the nation, that it ought to happen, but I suspect that it will be a lot more difficult than perhaps the Minister hopes. I will reflect on the answer and see whether there is anything more exacting we can say on Report—but at this stage I beg leave to withdraw.

[Lord Skelmersdale (Con)]

Before the noble Lord withdraws his amendment, as he said he would, I have noted that this debate has been entirely about new build, but surely one of the great problems in this area will be the experts needed for decommissioning.

[Lord Teverson]

I thank the noble Lord for his contribution. He is absolutely right. Experts are needed not only for decommissioning but for keeping going the existing fleet of nuclear power stations, which provide some 20% of low-carbon energy to our energy system at the moment. We also need nuclear co-operation agreements so that we have not just people but spare parts and everything else for this sector. I can see that the Minister wishes to intervene.

[Lord Henley]

I just want to interrupt the noble Lord to offer him one further statistic to indicate how long this will continue. Again during my trip to Sellafield, I was reminded that decommissioning there will continue well into the next century—in other words, the grandfathers of the people who will be working on it then have not yet been born.

[Lord Teverson]

The whole area of the financing and decommissioning of Sellafield is the subject of another debate—and a contentious one—which we will not get into. At this stage, I beg leave to withdraw my amendment.

Amendment 10 withdrawn.