We had an extensive debate on the principle of Euratom last night and I shall not repeat what I said then, but I shall speak in support of my own amendments and the others in this group. They are not perfect, as the noble Lord, Lord Teverson, said: they are substitutes, because most noble Lords in most parts of the House think it is a mistake to withdraw from Euratom and, even now, we hope to persuade the Government, one way or another, to reverse that decision.
However, the problem, which my noble friends have highlighted, is that the very integrity of this crucial industry is now at stake. Essentially, the Government want to find some way of continuing with Euratom, although they cannot spell out to us exactly what that means. This Bill is an understandable backstop so that, if they cannot agree one way or another with Euratom to continue its work, the ONR can be established as a separate nuclear safeguards regulator. Essentially, we are being asked to take this on trust.
My problem is that, first, I have no confidence whatever in the Government’s ability to negotiate a deal with Euratom. I do not know what it must be like to be a member of the Conservative Party or, indeed, the Government, but what we see is utter chaos and disagreement. For instance, the noble Viscount, Lord Trenchard, said that about 60% of medical isotopes come from the EU and 40% from outside. Last night, he suggested that leaving the EU should not impact at all on the transfer of medical isotopes from the EU. But we have not yet agreed a frictionless customs arrangement with the EU and I am not sure that, at this stage, one would bet anything at all on our seeing that negotiated—and it is but one uncertainty about what will emerge.
The letter sent by Mr Rees-Mogg and his group says, essentially, that this country must have “full regulatory autonomy” by March 2019—it must have the ability to change British rules and laws once we leave, without being a “rule taker”. But what arrangements are we then going to reach with Euratom that do not transgress the red line laid down by Mr Rees-Mogg? The Minister may say that Mr Rees-Mogg is but a Back-Bencher in the other place, but he seems to hold sway over government negotiating positions. That is why we have to assume that, actually, the Government are not going to be able to negotiate a sensible agreement with Euratom. Within government collectively, it transgresses so many of the red lines that have been laid down, one way or another, that if we are not careful, we will have to fall back on the ONR picking up this responsibility.
I respect the ONR and the evidence it gave to the Commons Public Bill Committee, which was everything you would expect of a robust regulator. My reading is that by March 2019, it could just about have enough people to do the inspections according to IAEA standards, but not to Euratom standards. But the other question is: what about the agreements that have to be reached with a number of very powerful countries? There are no guarantees at all that we could do that.
The reason we are debating and struggling with these amendments is that there is a real concern that not only the legality of the industry post-2019 is at stake here, but public confidence too. The noble Earl,
Lord Selborne, who made a very good speech yesterday, talked about confidence in the industry. I am a passionate believer in this industry and I take my noble friend’s point that it is about not just research, but the fact that we have a highly skilled group of people working in it. Yes, we are experienced in decommissioning, but we now have the possibility of a renaissance in new nuclear. After having thrown away the lead we had, we can get some of that back, develop a supply chain and use the skills of our people, but we need public confidence to do that. The problem is that the Government’s position is putting that at risk because there is no confidence whatever that they can reach an agreement with Euratom and none that they can reach Euratom standards in March 2019. That is a very serious position to be in.
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