My Lords, there has been extensive discussion and liaison between ourselves and industry. I will come on to discuss that shortly but we remain of the opinion, as I said, that when we formally notified our intention to leave the European Union we also commenced the process for leaving Euratom. Having said that, we are determined to continue to have a constructive, collaborative relationship with Euratom. The UK is a great supporter of Euratom and will continue to be so. I am grateful to the noble Lord, Lord Adonis, for his efforts to help me save face—even at 2.30 am—but I regret that I will not be able to give him what he requires this evening.
Let me go on to discuss the details of Euratom and our other plans. I will go into it in some detail, if that is okay with noble Lords, despite the late hour. As the Government have made clear, the UK’s future relationship with EU agencies, including those under the Euratom treaty, is a matter for negotiations. I will come on to the point of the noble Lord, Lord Whitty, later. Requiring the Government to publish a report in advance of negotiations concluding would be neither helpful to Parliament nor in the national interest. As soon as negotiations have concluded, the Government have committed to hold a vote on the final deal in Parliament. This vote will cover both the withdrawal agreement and the terms of our future relationship, and provide Parliament with the opportunity to scrutinise the outcome of negotiations at the appropriate juncture.
In the interests of transparency and providing as much certainty as possible, we took steps during the Commons passage of this Bill and the Nuclear Safeguards Bill to set out our strategy in a Written Statement on 11 January. That Statement made it absolutely clear that the UK will seek a close and effective association with Euratom in the future, and that we are putting in place all measures to ensure that the UK can operate as an independent and responsible nuclear state from day one. This is vital to ensure continuity for industry, whatever the outcome of the negotiations. As noble Lords will be fully aware, the nature of our future relationship with Euratom is part of the next phase of negotiations that has yet to start.
The Statement set out the principles on which our strategy is based: to aim for continuity with current relevant Euratom arrangements; to ensure that the UK maintains its leading role in European nuclear research; and to ensure that the nuclear industry in the UK has the necessary skilled workforce. We will be seeking a close association with Euratom’s research and training programme, including the Joint European Torus and the International Thermonuclear Experimental Reactor projects. We will also seek continuity of trade arrangements to ensure that the nuclear industry can continue to trade across EU borders. Finally, we will seek to maintain close and effective co-operation with Euratom on nuclear safety.
While we have made clear that we will indeed be seeking such an association, it is also essential that we have our own safeguards regime ready to come into place when Euratom arrangements no longer apply in the UK, whatever the outcome of the next phase of EU negotiations on our future relationship. It may be helpful to explain the meaning of nuclear safeguards to inform our discussion of this important but rather technical issue. Nuclear safeguards are non-proliferation reporting and verification processes which states use to demonstrate to the international community that civil nuclear material is not diverted into military or weapons programmes. The UK applies nuclear safeguards because it is a responsible nuclear power. Nuclear safeguards are different from nuclear safety and nuclear security. Civil nuclear safeguards reporting, by assuring the international community about the proper use of certain nuclear materials, underpins international civil nuclear trade.
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As a result of the decision to leave Euratom, the Government have been taking forward steps to ensure certainty for industry for day one of exit. We have held several rounds of discussions with the European Union in the first phase of negotiations and there has been good progress on Euratom issues. Negotiations with the International Atomic Energy Agency on future voluntary agreements for the application of civil nuclear safeguards in the UK to replace the current agreements which include Euratom have been constructive and fruitful. Progress has also been made in negotiations to put in place new bilateral nuclear co-operation agreements. In particular, constructive progress has already been made in discussions with key partners such as the United States, Canada, Australia and Japan.
It is clear that we need continuity and must work to avoid any break in our civil nuclear safeguards regime if we wish to support the UK’s nuclear industry and its nuclear research community. A civil nuclear safeguards regime and safeguards agreements with the IAEA are critical for the continued operation of our civil nuclear industry. We have been working closely with the Office for Nuclear Regulation to ensure that it can be ready to take on new responsibilities for a domestic safeguards regime in place of Euratom’s current regime.
We have continued to be transparent throughout the negotiations. We have shared our position paper on nuclear materials and safeguards issues and have published further technical notes on some specific
issues, such as the status of existing Euratom approvals for supply contracts, in order to give clarity and transparency to our position. It is in that spirit of transparency that in the January Statement we committed to report back to Parliament every three months about our progress on negotiations in respect of Euratom matters. These reports will cover not just the negotiations but the whole strategy set out in that Statement.
The proposed amendments would delay and prevent the critical work required for effective withdrawal from Euratom. They would tie our hands in negotiations, delay us in initiating any co-operation and therefore jeopardise long-term relationships with the EU, other trade partners and the International Atomic Energy Agency. This would threaten the continuity of our nuclear industry and would send the wrong message to the industry and the public. The consequences of inhibiting our ability to secure the right outcome in negotiations could be damaging to the UK’s civil nuclear industry and for the UK’s energy consumers, and I am sure that no noble Lord would want that to happen.
We are determined to avoid any disruption to our civil nuclear regime. Not only are we determined to ensure continuity, but we remain absolutely committed to the highest standards of nuclear safety, security and safeguards. The nuclear industry remains of key strategic importance to the UK, and the Government are committed to delivering a world-leading nuclear sector in close collaboration with Euratom and our international partners.
I will now address an issue that I know is of great concern to many noble Lords—it was mentioned by my noble friend Lord Trenchard—the supply of medical radioisotopes. First, I assure noble Lords that the supply of medical radioisotopes is a high priority for the Government, as we share their concern about the well-being of patients receiving such treatment.
My colleagues in the Department of Health and Social Care and the Department for Business, Energy and Industrial Strategy wrote to the Home Affairs Sub-Committee of the House of Lords EU Select Committee on 18 January making this very clear. The letter outlined the Government’s position and approach to ensuring continuity of supply of medical radioisotopes. I will briefly summarise it for noble Lords. It is true that, as radioactive material, medical radioisotopes are captured by the Euratom framework; however, we have made clear that Euratom currently places no restrictions on the export of medical radioisotopes to countries outside the EU. Medical radioisotopes are not classed as special fissile material or subject to international safeguards regimes, nor are they subject to the approval of the Euratom Supply Agency, which governs the supply of special fissile materials. Neither the import nor export of medical radioisotopes is currently subject to any Euratom licensing requirements.
The Euratom Supply Agency has a link with medical isotopes through its participation in the European Observatory on the Supply of Medical Radioisotopes, which aims to support decision-makers by promoting information sharing on the security of supply of isotopes, commissioning research and co-ordinating reactor shutdowns within the EU. However, the observatory does not have a decision-making role and does not govern the supply of medical radioisotopes.
The UK is a world leader in nuclear research and development, and the Government are committed to maintaining and building on our lead in this important field. We fully recognise the importance of international collaboration and the UK’s key role in medical and nuclear research. As such, we are seeking an ambitious science and innovation agreement with the EU that will support and promote science and innovation across Europe both now and in the future. As mentioned earlier, that also means maintaining a close association with Euratom’s research and training programme.
The Government have been listening to and working with stakeholders and recognise the concern that changes to customs processes as a result of withdrawal from the EU could affect the timely supply of medical radioisotopes. However, I assure noble Lords, particularly the noble Lord, Lord Teverson, that the Government are committed to minimising any impacts. A cross-departmental effort with stakeholder engagement is already under way with relevant departments to ensure continuity of supply for medical radioisotopes after our withdrawal from the EU.
The Government are on course to have a functioning customs service on day one after our withdrawal from the EU, with suitable plans in place to ensure that supplies of priority goods such as medical radioisotopes are not compromised. There is already a two-hour clearance commitment for urgent goods. In respect of non-EU import controls, medical radioisotopes are already prioritised in recognition of their urgent nature. This ensures that their arrival to the UK is expedited rapidly. This topic will continue to be a priority for the Government in our domestic preparations as well as in our negotiations on our future relationship with the EU.
Before I conclude, I shall address the amendments from the noble Lord, Lord Whitty.