Alan Whitehead Portrait Dr Whitehead
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I repeat my suggestion that, because the Bill is about process as much as content, it is important that it is guided by the sort of considerations we want to take place in order to achieve, as we are all agreed, the best outcome—[Interruption.] Indeed, yes, the best outcome. We must make sure that the negotiations not only proceed with the best outcome in mind, but cover the fact that it may be the case—again, this is out of our control—that if we stick to a position, with the provisions of the Bill, in which everything essentially stops in March 2019, that would be just catastrophic for our nuclear industry and our international nuclear safeguarding obligations. We must get this right, and we must have continuity of arrangements inside or outside Euratom. It is in those circumstances that a transition period is suggested.

The arrangements for the founding of Euratom and its articles suggest that a period of transition for negotiating our way out of Euratom may not be identical to the period for the arrangements for negotiating our way out of the EU as a whole. It is quite possible to conceive the circumstances in which we do not have a transition period beyond March 2019 for negotiating our general withdrawal from the EU, but we do have a transition period for negotiating our way out of Euratom. It is at the least strongly arguable that that may be the case in the future, and it is another reason why such a provision should be in the Bill.

Trudy Harrison Portrait Trudy Harrison (Copeland) (Con)
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I feel I must pull up the hon. Gentleman because he has twice referred to Euratom having been around for 40 years, but it began in 1957. It was born out of the civil nuclear industry that began in my constituency of Copeland when Calder Hall was first constructed. I thought that I should make it clear that this was from Britain and by Britain back in 1957. We have actually had it for 70 years, although there was the merger in 1967.

Alan Whitehead Portrait Dr Whitehead
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I was referring to the length of time that we have been a member of Euratom, not the length of time that Euratom has been around. Indeed, the hon. Lady will know that when Euratom was founded, the UK was not a member of it. I am sure she will also know that the founders of Euratom, particularly one of them—Mr Spaak—wrote a substantial report at the time of the founding of Euratom that strongly envisaged, setting out in chapter and verse, how an associate relationship of Euratom with the UK could come about. The arrangements that Mr Spaak considered in the report for associate membership are identical to those that exist today. I thank the hon. Lady for reminding us that Euratom has been around a lot longer than the period during which the UK’s relationship with Euratom has existed, but I am sure she will agree that even at the outset of Euratom, an association with the UK was envisaged before the UK joined to facilitate nuclear exchange, nuclear development and—although the nuclear non-proliferation treaty was not around at the time—joint endeavours in civil and defence nuclear work.

I fear, Madam Deputy Speaker, that I have tested the patience of the House, particularly, given the number of interventions I have taken, because of the necessity of ensuring that I responded to them fully. I will end by telling the House that we need to remember that this Bill covers just one aspect of our relationship with Euratom over the period during which we have been a member of it. Our relationship with Euratom also includes participation in nuclear research, the transportation of nuclear materials, the development of nuclear arrangements, the trading of nuclear materials and a number of other arrangements, all of which will lapse on our exit from participation in Euratom and all of which will need to be secured for the future. They are not the subject of the Bill, but they will have to be dealt with at some stage if we are not to have a close association with Euratom after Brexit. Amendment 7 would provide for at least an understanding that we will move forward to secure working arrangements for a future outside Euratom, not just making provision for our treaty obligations concerning nuclear safeguarding.

The Opposition think that the suite of connected amendments to the Bill will strengthen it enormously so that it is a fully fit-for-purpose contingency arrangement. I therefore commend these new clauses and amendments to the House.

Trudy Harrison Portrait Trudy Harrison
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New clause 1 concerns me, because it seems to me to be a delaying tactic. As I have mentioned, Euratom and the IAEA were really formed in 1957, when Calder Hall was built in my constituency. There are now 70-something businesses operating in the nuclear industry in my constituency alone. I have spoken to each and every one of them, as well as to Sellafield, the Low Level Waste Repository and the National Nuclear Laboratory. They all say that it is absolutely critical that we get on with the job swiftly and provide certainty so that when we leave the European Union on 29 March 2019, we know exactly where we are.

I come back to the point that Euratom was formed in 1957, and I find it somewhat disappointing that Opposition Members are not crediting our country with the ability to do what is necessary. I have been reassured by the Minister on several occasions about the timescales, and about the process that is already in place for recruiting new safeguards inspectors to the Office for Nuclear Regulation. There are clear synergies inherent in having the ONR, which is the overarching umbrella organisation, working on safeguarding, security and safety.

When it comes to the transition, the Prime Minister has already said that there will be a transition arrangement after we leave the European Union on 29 March 2019. Therefore, the most important thing is to get on with the job, and the Bill enables us to do just that.

Stephen Kerr Portrait Stephen Kerr
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Does my hon. Friend agree that in the new clause, great uncertainty is built into the very thing—the contingency—that was intended to give certainty to people such as those in her constituency?

Trudy Harrison Portrait Trudy Harrison
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That is exactly my point. This is about certainty and getting on with the job. Not having the Bill in place would be absolutely catastrophic for my constituency and the whole county of Cumbria.

Rachel Reeves Portrait Rachel Reeves (Leeds West) (Lab)
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I know that the hon. Lady cares hugely about this issue, because it matters a great deal for her constituency. She and I have been in meetings with the Office for Nuclear Regulation, in which it has said very clearly that it will not be able to meet Euratom standards for safety inspections by March 2019. Indeed, even to meet IAEA standards will be very challenging. Does she not agree that new clause 1 would provide certainty, rather than the other way around, because it would ensure that in March 2019 we were in a transition period in which we could still rely on Euratom to perform the inspections that are so crucial in her constituency?

Trudy Harrison Portrait Trudy Harrison
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It is not just my constituency, though; this is about the whole country. Today, more than 20% of our electricity is provided by nuclear power stations. The hon. Lady is not quite correct. My memory of the meeting she mentions is that we were told we would have sufficient aspects in place to be able to have the regime, there or thereabouts, to continue with our existing—[Interruption.]

Rachel Maclean Portrait Rachel Maclean
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As the hon. Member for Leeds West (Rachel Reeves) will know, Dr Golshan said in evidence to the Select Committee:

“My current project plan is that we establish a regime that intends to meet UK international obligations when we leave”.

That is achievable. She said that there were challenges, but not that they were insurmountable. She added that she intended to

“build upon that to achieve a system that is equivalent to Euratom.”

So my hon. Friend is correct.

Trudy Harrison Portrait Trudy Harrison
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I thank my hon. Friend. It is important that we hold the Minister and the Department to account, and that we focus on the critical path of recruiting the right number of staff into the ONR and ensuring that the regime is in place when we leave. We need to get on with the job, and the 70-something businesses in my constituency absolutely want us to do that.

Alex Norris Portrait Alex Norris (Nottingham North) (Lab/Co-op)
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The hon. Lady and I were both in the evidence-gathering sitting of the Bill Committee, in which Dr Golshan said that

“we will not be able to replicate Euratom standards on day one.”––[Official Report, Nuclear Safeguards Public Bill Committee, 31 October 2017; c. 7, Q9.]

Is this perhaps a matter of fact, rather than a question of confidence in Britain? In taking this course of action without the safeguard that my hon. Friend the Member for Southampton, Test (Dr Whitehead) has proposed, we will leave ourselves without the coverage that we need.

Trudy Harrison Portrait Trudy Harrison
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I have already said that I believe the transition period will happen, as the Prime Minister has indicated. New clause 1 is a delaying tactic, and that is absolutely not what the industry needs. We need certainty, and we need it today. I am pleased that the Department is already acting to recruit to the ONR safeguarding inspectors, who will also have responsibility for safety and security. That seems to me to provide vital synergies of shared knowledge and shared experience across the board in the nuclear sector.

Albert Owen Portrait Albert Owen
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I want to speak briefly in support of new clause 1. We have debated whether there will be negotiations during the transition period, but I hope that the Minister will respond to this question when he winds up: does he intend to negotiate associate membership of Euratom? We are asking for associate membership, but we have been given no clear idea of whether he intends to seek such membership. We all want the safeguards to be in place from day one. Negotiating over Euratom standards is not in our gift, but we now have in place the highest standards in the world and co-operation with other world leaders.

--- Later in debate ---
Stephen Kerr Portrait Stephen Kerr
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I begin by paying tribute to the hon. Member for Southampton, Test (Dr Whitehead). I still consider myself to be a relatively new Member, but I had the privilege to serve on the Public Bill Committee. It was a masterclass in how to oppose constructively, so I pay tribute to him and the skillset that he undoubtedly brings to his portfolio and to the added value that he brings to the legislative process. I am glad to say that because it is meant genuinely and sincerely. I understand from his comments that he will not press amendment 6 to a vote. On amendment 1, however, we have heard it repeated ad nauseam that there will be no reduction in or diminution of standards for the inspection criteria on nuclear safeguards. I am disposed to believe these commitments, which have been given in all manner of forums and contexts.

Amendment 4 deals with the allocation of resources to ensure that the ONR can meet its extra responsibilities for nuclear safeguarding in the UK. I believe, having listened to the Minister’s undertakings and to the witnesses from the ONR both in Committee and before the BEIS Select Committee, that there is more than adequate evidence of the Government’s commitment to ensuring that the inspectorate is appropriately resourced and has the required staffing levels and so forth.

Trudy Harrison Portrait Trudy Harrison
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Does my hon. Friend know that the ONR has already begun the process of recruiting safeguarding inspectors?

--- Later in debate ---
Trudy Harrison Portrait Trudy Harrison
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The Bill is absolutely essential to the nuclear industry. Without it, after we leave the European Union, our nuclear industry would collapse. As I said earlier, it would be economically crushing not to have a safeguards regime in place. That would have catastrophic implications for every part of the country, which would be felt across the whole sector.

Following the construction and successful commissioning of the world’s first nuclear power station—Calder Hall, in my constituency, back in 1957—Euratom was formed by the Euratom treaty. It was as important then as it is now to apply civil nuclear safeguards in the UK. The UK has committed, as a member of the International Atomic Energy Agency, to have nuclear safeguards in place—a clear demonstration to the international community that civil nuclear material is used only for civil activities.

The Bill enables the UK to set up a domestic safeguards regime to meet our international commitments on safeguards and nuclear non-proliferation standards. Without the Bill, the movement of materials, fuel—including spent fuel—and components, and even the conversations about materials, fuel and components, could not take place.

Euratom provides the basis for the regulation of civilian nuclear activity in the UK, including fuel supply, waste management and co-operation between nuclear states. It implements a system of safeguards, controls the supply of fissile materials in Euratom member states, guarantees high safety standards and funds international research into nuclear fission and fusion. It is also critical for nuclear co-operation across the world.

In a community such as mine, where the income of 55% of the population depends directly or indirectly on work in the nuclear industry, and in our country, where more than 20% of energy is generated by nuclear power plants, not having measures in place as we leave the EU and Euratom would be unthinkable. An effective safeguards regime is necessary for Sellafield’s operations, for the low level waste repository’s business, for the national nuclear laboratory’s research and for the development of Moorside, the new-build nuclear power plant that is expected to be constructed adjacent to Sellafield. All of that is in Copeland.

I have visited 70-something businesses in my constituency, including large global operations now based in Copeland—some of the biggest names in international industry—and our many small and medium-sized enterprises to listen to their concerns and ambitions for the future. Each and every one is wholly dependent on being able to trade globally. Those businesses are not just critical to that sector, but integral to the socioeconomic fabric of daily life. Of the 1,020 apprenticeships that were started last year, the vast majority were in industry and engineering connected with our nuclear sector. But it goes further: those companies are proud, passionate parts of our society, donating to charities, supporting local organisations and providing enormous socioeconomic benefits. I am proud to say that tomorrow, Sellafield is sponsoring “A Taste of Cumbria” in the Jubilee Room here in Parliament, such is its commitment to its community and county.

I cannot emphasise sufficiently strongly how vital the Bill is for Copeland and Cumbria, and indeed for the whole country. I was delighted that the Government committed further to the Joint European Torus and the international thermonuclear experimental reactor projects. The Bill is equally necessary for research and development and for science and innovation.

Our nuclear industry is an international marketplace, which means that we need in place not only domestic regulations but bilateral agreements with countries such as the US, Japan, Kazakhstan and Canada—the list goes on. We cannot even begin to discuss bilateral agreements without there being a domestic safeguards regime in place. We need one to carry out decommissioning work across the country and to consider exporting the skills and products being developed. It is estimated that overseas reactor decommissioning will total £250 billion over coming decades, according to the Government’s “The UK’s Nuclear Future” document.

The Calder Hall reactor I referred to earlier now requires decommissioning. This is a fantastic opportunity for the sector not just to benefit from the skills and experience gained from decommissioning but to leverage wider UK, European and worldwide decommissioning. The iconic golf ball structure at Sellafield, the Windscale advanced gas-cooled reactor, was the prototype power reactor for the 14 EDF Energy AGRs, which currently supply about one fifth of the UK’s electricity. Its core heat exchangers and associated equipment have all been safely decommissioned and removed, thanks to Government-funded projects, demonstrating that a power reactor can be successfully decommissioned.

I hope that Calder Hall can be decommissioned as a priority and a new breed of small modular reactors installed in its place to ensure that we are at the forefront of nuclear technological developments once again. Small modular reactors and advanced modular reactors offer the chance for UK nuclear expertise and manufacturing to lead the world, but we need the Bill to ensure that we are globally compliant with safeguarding, in addition to security and safety.

On the role of the ONR, it is important to understand the differences between safeguarding, security and safety, all of which are critical to the secure and compliant running of our civil nuclear industry. Currently, the ONR has responsibility for safety and oversees the civil nuclear constabulary with regard to security. Bringing responsibility for safeguarding under this one organisation would seem to bring benefits of shared knowledge and skills and combined experience. The ONR is an independent regulator that was made a statutory public body under the Energy Act 2013, which sets out its role, functions and powers.

International oversight will be a key part of the future regime, so I am pleased that the UK is seeking to conclude new arrangements with the IAEA. It is absolutely vital that the IAEA retain its right to inspect all civil nuclear facilities and continue to receive all current safeguards reporting. That will ensure that international verification of our safeguards activity continues to be robust. We must retain our reputation for excellence to ensure that companies in other countries, such as KEPCO in South Korea, which we anticipate will become the new owner of NuGen, want to do business with us.

Our country is a pioneer and global leader in this area and has an enviable safety record. The Centre of Nuclear Excellence in my constituency and all the businesses and livelihoods that are utterly reliant upon an effective safeguarding regime need this Bill. I hope that the UK will continue to play a leading role in the development of international nuclear security and safety standards, including through the IAEA, and I commend the Government’s work thus far. In particular, I would like to thank the Secretary of State, the Minister and his team for answering questions put to me by my community and businesses, including some that have trained up Euratom safeguards inspectors—such is the level of expertise in Copeland. I commend the Bill and I thank you, Madam Deputy Speaker, for the opportunity to speak.