Drew Hendry Portrait Drew Hendry
- Hansard - - - Excerpts

I want to make progress, because I am aware that Members wish to move ahead and I wish to accommodate that as much as I can.

On safeguards, at Dounreay in the highlands we have lived with the consequences of the UK’s previous regulatory regime. Decades on, we are still finding nuclear material that has simply been dumped or buried. For these reasons, and many more, while we work for a nuclear-free future, we recognise the vital need for the continuing protections and benefits that we have enjoyed through Euratom. I hope that that answers the hon. Gentleman’s question.

Turning to the Lords amendments, and the Government amendment in lieu, I should like some clarification from the Minister. On Lords amendments 1 and 2, I have said that providing clarification on the definition of “civil activities” is a sensible move, but is he in a position to enlighten us on the question put by Lord Hutton as to why the phrase, “for peaceful purposes”, has been defined in regard to electricity generation? I understand that Lord Henley, the Under-Secretary for Business, Energy and Industrial Strategy, was to write to Lord Hutton with a response to that question. However, I am not aware that there is anything on the public record on that issue, so I would be grateful if the Minister enlightened us.

Lords amendment 4 proposes a sunset clause, but I still do not think that the Government have fully answered the question as to why the sunset provision needed to be extended to five years from two years, so I would welcome clarification from the Minister. That being said, this is a sensible clause to add to the Bill.

I also agree with Lords amendment 5, which will mean that we receive a report for each three-month period in the years after the Bill is enacted. I note that the reports could include information on the development of the domestic operational arrangements required for the new domestic safeguards regime. Will the Minister outline what level of information he expects to provide? What information does he intend to include in the reports? For example, will they include information on the profile of ongoing costs, including any increases, on skills, on the recruitment and skills opportunities for girls and women and on gender pay? Reports should also include a rolling risk register.

I also note that we are to expect, or “may” have, a report that includes information on future arrangements with Euratom, including on nuclear research and development and on the import and export of qualifying nuclear material. I listened carefully when the Minister said that he had “every confidence” about the situation. It is good that he does, but we should have a guarantee. As was said earlier, there should be no diminution of the current protection that we enjoy under Euratom. I remain concerned about radioactive isotopes, but I do not intend to go through the rationale that I presented in the previous debate for why they are vital—although if I did, I would make no apology for doing so. The medical profession is concerned about their future availability, and even if there are agreements about access to such isotopes, the question remains unanswered about how we are supposed to obtain them in a Brexit future that means no customs union. How are they going to get across the border in time, before their limited half-life has expired? I could say much more on that, but perhaps the Minister can tell us how he intends to overcome the customs barriers and get that material here.

The Scottish National party supports Labour’s position on Lords amendment 3, and if it comes to a vote, we will vote to disagree with the disagreement that the UK Government have brought forward. If the Minister was serious about giving Parliament assurances, he would accept Lords amendment 3, which was moved by a Cross-Bench peer. The amendment quite literally does what it says on the tin: no exit from Euratom if relevant and necessary agreements are not in place. Instead, in presenting their own amendment (a), the UK Government are again asking us to take things on trust and believe that everything will be all right on the night. That is not good enough when it comes to nuclear safeguards.

Rachel Maclean Portrait Rachel Maclean (Redditch) (Con)
- Hansard - -

The hon. Gentleman talks about taking things on trust, but does he not agree that we have just heard hard evidence from the Minister of other parties coming to the table and negotiating with us to put safeguards in place?

Drew Hendry Portrait Drew Hendry
- Hansard - - - Excerpts

I am delighted that the hon. Lady intervened at that point, because I was just about mention that condition 2 in amendment (a) states that

“(a) one or more of the principal international agreements have not been signed, but

(b) in respect of each agreement that has not been signed, arrangements for the corresponding Euratom arrangements to have effect in relation to the United Kingdom after exit day—

(i) have been made”—

which would be fine—

“or (ii) will, in the Secretary of State’s opinion, have been made before exit day.”

That is simply not good enough. Given that we are already seeing a lack of transparency around Hinkley Point C and rising costs, and around what is happening in Anglesey at the Hitachi plant, we cannot take such things on trust. It is vital that the Government are transparent on this issue now, because so much is at stake for people.

In conclusion, we have been advised that a deal has been struck with the USA, but will the Minister provide an update on the other agreements that need to be in place before the UK exits Euratom? After all, he expects us to take him at his word, so it should follow that we will be regularly updated on progress. In the interests of transparency, will he place the draft withdrawal agreement with Euratom in the Library? Although this is a reserved matter for the UK Government, the Scottish Government have regulatory powers on nuclear waste and emissions, so what discussions has he had with the Scottish Government to date on this issue? If he has had none, as I expect, what discussions does he intend to have?

Trudy Harrison Portrait Trudy Harrison (Copeland) (Con)
- Hansard - - - Excerpts

I listened with interest to my hon. Friend the Minister’s opening statement. Of the 87,000 people working in the UK’s nuclear sector today, some 27,500 people—nearly 40% of the workforce—are based in Cumbria. That is why, in Copeland and in Cumbria, we proudly call ourselves the centre of nuclear excellence, and I am so pleased to hear from the Minister that swift progress is being made.

I have said before that not to have arrangements in place would be catastrophic for my community and devastating for the nuclear sector nationally and internationally and for all who rely upon the sector for energy: low-carbon electricity, fuel, research and development, science and industry, clean-up operations, defueling, decommissioning, reprocessing, waste processing —the list goes on. There would also be wider supply-chain implications from advance manufacturing to apprenticeships and implications for ensuring that we continue the legacy of world-class skills and for the enormous number of businesses employing people right across the country in component factories and on our high streets. In my community, that means hairdressers and hardware stores, taxi firms and teashops; the nuclear industry in west Cumbria puts food on so many of our tables. Britain’s nuclear industry equals our automotive industry in terms of value to the economy. It is a vital to our economy, our environmental obligations and our society. It is therefore absolutely right that the Bill is being given the kind of priority that the ministerial team are affording it.

I thank all those who have been working so hard and so collaboratively on this important issue. The priority for me and my community is the UK being able to operate as an independent and responsible nuclear state when the Euratom arrangements no longer apply to the UK. There is a strong consensus across Parliament on the importance of ensuring that the necessary measures are in place so that the UK nuclear industry can operate with certainty while meeting all international commitments. That is clear from speaking with people working in the 70-something nuclear businesses in my constituency, including my husband, who is in the Gallery tonight and celebrating his birthday by watching this debate.

Rachel Maclean Portrait Rachel Maclean
- Hansard - -

Will my hon. Friend forgive me if I take this opportunity to wish her husband a happy birthday?

Trudy Harrison Portrait Trudy Harrison
- Hansard - - - Excerpts

I thank my hon. Friend.

The importance of having measures in place is clear from speaking to those working in the Nuclear Decommissioning Authority. It is also clear from reading the Minister’s report, published on 27 March—and no doubt will be from reading the next report, to be published in June—that the ministerial team is making considerable effort to address all concerns. I am grateful for the time that the Minister for Nuclear has spent with me and in my Copeland constituency. He has met many businesses in Copeland, including on his visit to Sellafield, visits to the Copeland Borough Council “Open for Business” event and to a Britain’s Energy Coast Business Cluster meeting. I know that he understands both our concerns and our capabilities.

To ensure that we will operate without interruption after the implementation period ends on 31 December 2020, the amendments introduced by the Minister will improve the transparency of negotiations and improve our understanding of the procedures being carried out. The progress being made will result in better, stronger industry confidence, and I welcome that. The definitions that will be included in the Bill are also welcome.

Amendment (a), in lieu of Lords amendment 3, will address the concerns raised in the other place. As I understand it, 28 days before exit day on 1 March 2019, if any relevant agreements are not signed and if no other equivalent arrangements have been made, the Secretary of State would have to ask the EU for corresponding Euratom arrangements to continue to have effect, providing vital secondary reassurance in the unlikely event that all measures are not fully in place.

I am pleased that the UK has now signed a bilateral nuclear co-operation agreement with the United States of America, as the agreement will allow the UK and the US to continue their mutually beneficial co-operation after the point at which Euratom arrangements cease to apply to the UK. The UK-US nuclear co-operation agreement will enter force at the end of 2020, following the conclusion of the implementation period of 21 months after the end of March 2019.

It is vital we have certainty and confidence that there will be no interruption to existing relationships that are underpinned by international agreements. I also welcome the fact that the nuclear co-operation agreement has been drafted and signed on the same principles as the current Euratom-US nuclear co-operation agreement, with the same robust assurances on safeguards, security, transfers, storage, enrichment and reprocessing in relation to the transfer of nuclear material and related items between the United Kingdom and the United States.

All that is relevant to my Copeland businesses and constituents, who rely on the nuclear industry for their livelihoods, and vital so that the country can continue to generate electricity, carry on reprocessing operations and continue with the decommissioning and legacy clean-up operations in Britain and abroad.

I urge Government officials to ensure that the same swift, smooth, effective transaction agreements are prioritised with Australia, Canada and, especially, Japan, with which my constituency businesses are working very closely. World-leading and innovative clean-up, defueling and decommissioning work must continue. Skills and products are being invented and deployed to support the Fukushima clean-up.

Companies such as React Engineering, based in Cleator Moor, have worked with Sellafield to develop brand new technologies and techniques to deal with incredibly complex situations. It is in everyone’s interest that this essential work is carried out, without interruption, as we leave the EU and Euratom. The last nuclear reactor to be constructed in Britain was Sizewell B, completed in 1995 using imported pressurised water reactor technology. Since then, no nuclear power plants have been completed. The UK’s capability to design and build a nuclear power plant has been dissipated, and the renewal of the nuclear programme has been dependent on overseas technology and nuclear systems suppliers, so it is all the more important that we ensure that the international nuclear co-operation agreements are fit for purpose and in place.

This is surely a depressing situation for a country that led the way in nuclear development. I share the widely expressed concerns about the energy trilemma: the need to keep costs down, to ensure the security of supply and to reduce carbon. There must be a concerted cost-reduction emphasis, supported financially and in policy terms, and I urge the Government to consider becoming much more directly engaged in the nuclear fleet deployment to revitalise the UK nuclear industry.

Diversification of the industry is already happening in Copeland, as companies such as Shepley Engineers, for which my husband works as a welder and which was started at Sellafield in the late 1940s, are now winning contracts across the country. Such companies are deploying their highly skilled workers, who are very experienced and competent at working safely, in highly regulated environments and in extreme conditions. As I speak, the Shepley Engineers workforce are above us fixing the roof and deploying their reverse-engineering techniques to complex and ancient systems. They are replacing the cast-iron tiles and giving the stonework a new lease of life, and they are also working at considerable height on the Elizabeth Tower, always with safety as their principal concern.

It is brilliant that those skills, that expertise and that precision working are in demand across Britain and beyond, but what I really want, and what the industry is crying out for, is for our globally envied skills in nuclear to be valued, employed and deployed, grown and exported as we develop, once again, a UK fleet of nuclear reactors of small scale, advanced breed and large scale to power the country and to export across the world—leading the way and making the most of our established and highly regarded reputation for excellence, innovation and British-built, safe reliability.

The Government’s industrial strategy speaks of grand challenges, pledging to

“put the United Kingdom at the forefront of the industries of the future”.

I agree with the statement that a truly strategic Government must do more than just fix the foundations, important as they are, and must plan for a rapidly changing future. The industrial strategy reports:

“Nuclear is a vital part of our energy mix, providing low carbon power now and into the future. The safe and efficient decommissioning of our nuclear legacy is an area of world-leading expertise.”

Let us not forget that this is our responsibility. This is not the kind of job that we should be leaving for our children and grandchildren to deal with.

We have enjoyed the power generated by nuclear, we have benefited from more than 70 years of highly skilled employment and we have learned many lessons along the way. Now, we are doing the responsible thing and cleaning up our legacy waste. Old and deteriorating storage facilities are nearing the end of their useful life at Sellafield, and it is our generation’s task to deal with this, both by prioritising safe storage and disposal and by investing in research and development to realise the full potential of the highest grade fissile material.

The research and development carried out at the national nuclear laboratory and at the Dalton nuclear institute, in partnership with universities and academia, and with the small and medium-sized enterprises in Copeland, is world leading. It is truly ground-breaking innovation that will transform the way we power our homes and businesses, our vehicles on this planet and travelling to others, and how we live our lives.

This Bill is an essential element of that work, and nothing should detract from its delivery. Today is a positive step in the right direction for our nuclear industry. I am so proud to be part of the journey, serving my community in this House. I commend this Nuclear Safeguards Bill, Lords amendments 1, 2 and 4 to 7 and amendment (a) in lieu of Lords amendment 3.