Layla Moran Portrait Layla Moran (Oxford West and Abingdon) (LD)
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Does the hon. Gentleman agree that while some of the safeguards the Minister mentions might well work, it would be easier to stay in Euratom until such time as everything is concluded so that there is absolutely no way we would fall off any cliff edges? Does he agree that “may” is not good enough in this scenario?

Alan Whitehead Portrait Dr Whitehead
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The hon. Lady makes the important point that to have the full protection of staying in Euratom would be the best thing to do, not just on nuclear safeguarding but on a range of other civil nuclear activities, until we are absolutely certain that we have ticked every box and ensured that we have alternatives that are as good as what we have under Euratom. That, very largely, is what Lords amendment 3 seeks to do. It seeks to ensure that there is recourse to the full covering arrangements of Euratom if those boxes have not been ticked.

After waiting until the very last moment to tell us that Lords amendment 3 is not needed and will be opposed, the Government have finally come up with an amendment in lieu of their own that suggests that perhaps a fall-back plan is needed after all. Its wording is, in many respects, very similar to Lords amendment 3. It places the signing of these treaties as the essential element in securing the transition to a full nuclear safeguarding role without Euratom, and specifies, as amendment 3 does, what they are. That in itself is a considerable victory for those who counselled for this over a period of time, and is a substantial turnaround from the Government’s previous position. But, at the last, the amendment falls short. It places the option to decide not on whether principal agreements have been signed—for that will be evident, or not, at the time of departure—but on what one might call an interim stage on a fall-back which provides for circumstances where, at the beginning of a period of 28 days prior to exit, agreements may not have been signed and completed, but will in the Secretary of State’s opinion have been so signed before that 28-day period is up. In other words, there is a very abbreviated, but nevertheless significant, period during which the Secretary of State will decide whether treaties are going to be signed. That will, in effect, be putting off the relevant request to the European Council for an extension of the time during which Euratom provisions hold, because the Secretary of State thinks it is, after all, going to be all right. That is a far shorter period than under the original general provisions that the Secretary of State said he would try to organise and get right in time for exit from the EU, but we are still back to that assumption that it will be “all right on the night” with no complete plan B in place. I accept that the amendment in lieu proposed by the Government comes a very long way, and that it has taken a considerable amount of U-turning, if we want to call it that, to put in place these arrangements, but in reality it is not quite far enough.

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Stephen Kerr Portrait Stephen Kerr
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I am grateful to my hon. Friend for his intervention, but I do not think it does. The Minister has made it clear during the passage of the Bill that although we are leaving the European Union and our membership of Euratom will therefore end, we still want as close a relationship as possible with Euratom. The Government have been absolutely clear in their determination on this. They stated in a written statement published last September that

“it is vitally important that the new domestic nuclear safeguards regime, to be run by the Office for Nuclear Regulation, is as comprehensive and robust as that currently provided by Euratom. The government has therefore decided that it will be establishing a domestic regime which will deliver to existing Euratom standards and exceeds the standard that the international community would require from the UK as a member of the IAEA.”

I hope that the Minister will reconfirm tonight that it is still the Government’s intention to reach and maintain existing Euratom standards in respect to safeguarding. I recognise that it will take time to get to that point, but it would be useful if he indicated when he expects we will able to assume that we have everything in place to maintain the Euratom safeguarding standards, and if possible, how much that will cost.

I also commend my hon. Friend on his success in progressing towards his objective of putting in place what his amendment in lieu describes as “principal international agreements” and “corresponding Euratom arrangements”. These principal international agreements refer to and include the nuclear co-operation agreements that we will need to maintain because it is on the basis of these agreements that nuclear goods, including intellectual property, software and skills, can be moved between the UK and other countries. The Select Committee report summarised the evidence we heard and concluded that nuclear co-operation agreements were

“expected to depend on the existence of a mutually acceptable UK safeguards regime. Witnesses were concerned about any potential gap between leaving Euratom and setting up new arrangements, which would cause considerable disruption to nuclear supply chains”.

We also heard that

“nuclear cooperation agreements with the US, Canada, Japan and Australia will be crucial for maintaining existing operations and should be prioritised.”

I welcome the news that the Minister has brought to the House tonight about the IAEA, the draft voluntary offer agreement and the additional protocol. I also welcome the US-UK nuclear co-operation agreement. Perhaps he will give us more detail on how long it will take for the agreement to be ratified. I referred earlier to the optimistic note that David Wagstaff, the head of Euratom exit negotiations at the Department for Business, Energy and Industrial Strategy, brought to our Committee, where he indicated that the co-operation agreements were

“well advanced and…would be completed in time for our departure.”

I have heard again tonight that that means March 2019.

With reference to the principal international agreements, perhaps the Minister will update the House on our negotiations with Canada, Japan and Australia. Will all Euratom’s existing nuclear co-operation agreements continue to apply to the United Kingdom until such time as new agreements can be established? It is vital that our civil nuclear industry can continue to operate with certainty and that there should be minimum to no disruption to the sector as we leave the European Union. Britain must be in a position to continue to honour its international obligations—

Layla Moran Portrait Layla Moran
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Will the hon. Gentleman explain what “minimum” would be acceptable? I do not feel that any minimum disruption would be acceptable; for me, no disruption is the only possible scenario. What would his minimum be?

Stephen Kerr Portrait Stephen Kerr
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The hon. Lady is right to pick me up on those words, and I am grateful for her intervention. Because the Prime Minister has successfully concluded the implementation agreement with the European Union, the minimum that we should settle for is no disruption, especially in this sector.

I was about to say that we as a country must be in a position to continue to honour our international obligations, and to be the responsible nuclear state that we are. The importance of this Bill, with this amendment, is that in the event of there being no agreement with Euratom, which is not what we want, it will enable the United Kingdom to be in a position to act as an independent and responsible nuclear state. That is why the amendment should command support on both sides of the House.

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Kwasi Kwarteng Portrait Kwasi Kwarteng (Spelthorne) (Con)
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I am grateful for the opportunity to speak tonight as I spoke in this important debate at an earlier stage—on Second Reading. I was pleased to hear the speech from my hon. Friend the Member for Copeland (Trudy Harrison), who gave a good, comprehensive analysis of why civil nuclear power and the nuclear industry are so important, not only to her constituency but to the country as a whole. In this debate, we tend to get forgetful about the immense contribution Britain has made to the nuclear industry and nuclear science. At the beginning of the 20th century, we had people such as Thomson and Rutherford, and others in the Cavendish laboratory at Cambridge and at other universities. They pioneered nuclear technology and advances in the nuclear industry. It is sad to hear speeches in this House that yet again undermine, frustrate or seek to question our capacity to get this right and to institute safeguards.

In that regard, the Bill is an excellent piece of legislation. It is sensible and it tries to construct a framework that will allow us to leave Euratom and go our own way. After all, we are members of the International Atomic Energy Agency—it has a structure and about 169 countries as members—and we should celebrate that. To hear people in this Chamber, one would think that without Euratom we were absolutely nothing and there would be no safeguards and no industry. We have heard the doom-mongering prophecy of thousands of job losses, to which the hon. Member for Barrow and Furness (John Woodcock) alluded in his mildly entertaining speech. We have had all these bugbears and goblins, and all this terror, held before us, but we are taking a simple step: we are going to leave Euratom and institute our own Bill, as we are doing, that will provide for safeguards in the industry. We also have the IAEA as a backstop. All this fear-mongering and these doom-laden prophecies of job losses are grossly exaggerated.

The other thing to say on the amendments is that in eight years in this House I cannot remember a Government who have been so accommodating and open to amendments as we have been on this Bill. In general, we see Governments, including the one of which I am a member, rejecting amendments; sometimes the amendments make sense and often they do not. In this instance, I have been surprised and impressed by the fact that our Front Benchers and the Government as a whole have adopted many of the amendments proposed in the Lords.

I want to talk a little about the House of Lords amendments and the processes they are going through. The job of scrutiny that the Lords are doing is good, but in the context of Euratom and debates about the EU there is a suspicion—I am not saying that all the people in the other place are influenced in this way—that a lot of these debates and institutions are being set up as straw men with which to block Brexit. When people say we should stay in this or that institution, there is always the suspicion of it being a rearguard fight to reverse the decision of the referendum of June 2016 and somehow to stay in the EU by other means. I am not suggesting the majority of their lordships are influenced by that, but in these debates there is always the suspicion that people are trying to use proxies and excuses to prolong our membership, unnecessarily, of these European institutions.

Euratom is a creature not of the EU but very much of the philosophy that was underpinning countries of western Europe coming together. I believe Euratom was established in 1957, roughly at the same time as the treaty of Rome, but we did not actually join it until 1973. To hear some of these speeches, one would think that we had no nuclear industry and no nuclear expertise before we joined Euratom. As I was trying to suggest, that is, of course, completely false.

Layla Moran Portrait Layla Moran
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Would the hon. Gentleman perhaps concede that he has misunderstood the amendment? It says that its provisions would be invoked only if everything had not been agreed. It does not say that we would stay in Euratom in perpetuity; it simply says that we would stay in until the point at which every single i had been dotted and every single t had been crossed.

Kwasi Kwarteng Portrait Kwasi Kwarteng
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I accept that it is a clever amendment. I accept that on the face of it, it says that it is just a backstop, there purely to ensure that if we do not have the right treaties in place we get to stay in Euratom forever and ever, but the hon. Lady and I know that the people who composed the amendment do not expect all the relevant treaties to have been signed in the short timeframe available. I suggest, perhaps cynically—perhaps the hon. Lady will challenge me on this—that the clever amendment is simply a ruse to prolong our membership of Euratom. Call me an over-cynical man of superstition, but a lot of my constituents, if they pay any attention to this issue, would come to the same conclusion.

Layla Moran Portrait Layla Moran
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I am grateful to the hon. Gentleman for allowing me a second go. In a sense, we are all rooting for the Minister, in the hope that he will come to a complete set of agreements in time. We all want that, and as soon as he does that, the amendment’s provisions will no longer apply. There is no issue, because if it all happens, it is fine, and even if it does not happen, the amendment will no longer apply as soon as it does happen. I do not understand the hon. Gentleman’s argument; it does not make logical sense.