UK and EU Relations — House of Lords, 2017-09-12
Topic: Energy
Olivia Bloomfield (Conservative, Centre-right): My Lords, I, too, congratulate the Government on this extensive set of position papers and welcome the opportunity to comment. In common with the noble Viscount, Lord Ridley, and the noble Lords, Lord Robathan and Lord Hutton, I will restrict my remarks to those papers which relate to the nuclear industry The UK’s scientific community has benefited enormously from membership of the EU and Euratom in terms of research, funding and the free movement and exchange of scientists and ideas across borders. We are at the forefront of research and development in pharmaceuticals, biotech, space and indeed the nuclear industry. The Joint European Torus project at Culham in Oxfordshire is evidence of our being a key player in this field. International teams, both here and in southern France, are leading research into nuclear fusion, the holy grail of sustainable energy Europe has benefitted in equal measure, however, and there is no reason why this should not continue. As the position papers on the collaboration on science and innovation and those relating to nuclear materials stress, it is in all our interests that our joint enterprises continue There are complexities and a very challenging timeframe. The position paper on nuclear materials and safeguards makes it clear that we need to ensure a smooth transition to a UK nuclear safeguards regime to provide both certainty and clarity to the industry, which already employs more than 66,000 people and, crucially, wishes to invest significantly in a new generation of small modular nuclear power stations. We need this generating power to secure our future supply of power at prices we can afford The UK must also address the issue of nuclear supply contracts, which extend beyond the date of our EU withdrawal. Equally, we shall seek to ensure continuity of existing trade agreements on materials, spent fuel, radioactive waste and radioactive sources The fundamental principle that spent fuel and radioactive waste remain the ultimate responsibility of the state in which it was generated is reaffirmed under international law to which both the UK and the other Euratom member states are parties. The UK will be seeking reciprocal assurances in relation to spent fuel and radioactive waste, whether generated here or in another Euratom country The UK is known to be both a responsible nuclear state supportive of international nuclear non-proliferation and a state which has a strong desire to protect its own nuclear power industry. While we shall no longer be a member of Euratom, many of the standards it sets are legally binding and arise from obligations to which the UK is in any event committed under the IAEA as well as the Nuclear Energy Agency within the OECD. In the Queen’s Speech the Government announced a new nuclear safeguards Bill. This is intended to establish a UK nuclear safeguards regime and will delegate responsibility for this to the Office for Nuclear Regulation. There is little doubt that this fine but already overstretched body will need extra resources to take on these expanded responsibilities, and some of this expertise will have to be sourced from overseas So what will be the way forward for a United Kingdom that will be outside Euratom but wishes to continue co-operation? According to Article 206 of the Euratom treaty: "The Community may conclude with one or more States or international organisations agreements establishing an association involving reciprocal rights and obligations, common action and special procedures" Switzerland became an associate member in this way in 2014. Many believe that pursuing this route would be the most beneficial for the UK. Alternatively, under Article 101 we could apply to acquire the status of a third country in the same way as have the United States, Australia, Canada, Japan, South Korea and Kazakhstan In a policy paper in May the Prime Minister noted that, while the Government was of the view that Article 50 covered Euratom, Britain still wanted, "to collaborate with our EU partners on matters relating to science and research, and nuclear energy is a key part of this" The paper also suggests that we may indeed look further afield than Europe, noting that Britain is a world leader in nuclear research and development and that, "there is no intention to reduce our ambition in this important area" We have confidence that it is in our mutual interests for the EU and the UK to continue their joint research. We must hope that all sides can work together speedily and with the active input from industry bodies to bring about a satisfactory outcome to negotiations. The end result might even be one in which the nuclear industry, when freed from some of the strictures of Euratom, becomes more nimble and better placed to pursue research and business opportunities globally.