Select Committee on European Scrutiny Twenty-Ninth Report


8. Safety of nuclear installations

(24577)

8990/03

COM(03) 32

Part I: Draft Council Directive (Euratom) setting out basic obligations and general principles on the safety of nuclear installations.

Legal baseArticles 31, 32 and 187 Euratom; consultation; QMV (but see paragraph 8.6 below)
Document originated30 January 2003
Deposited in Parliament3 June 2003
DepartmentTrade and Industry
Basis of considerationEM of 26 June 2003
Previous Committee ReportNone, but see paragraph 8.1 below
To be discussed in CouncilNo date set
Committee's assessmentLegally and politically important
Committee's decisionNot cleared; oral evidence requested

Background

8.1 As we have reported in paragraph 18 below, the Commission produced in November 2002 a Communication, "Nuclear safety in the European Union", in which it argued that the legal and political conditions to establish a greater Community involvement in nuclear safety matters had now been met. More specifically, it suggested the need for coordinated action in two areas — the safety of nuclear installations, and the management of spent nuclear fuel and radioactive waste — particularly in the light of the forthcoming enlargement. It has now followed up that Communication by producing two legislative proposals. The one concerned with waste management is reported upon in paragraph 4 above, whilst this paragraph deals with the safety of nuclear installations.

The current proposal

8.2 The Commission's rationale for this proposal is essentially contained in its Communication (and summarised in paragraphs 18.3 to 18.5 below), though it also cites a subsequent judgement[22] by the European Court of Justice, in which the Court said that, even though the Euratom Treaty does not grant the Community competence to authorise the construction or operation of nuclear installations, the Community possesses legislative competence under Articles 30 to 32 of that Treaty to establish, for the purpose of health protection, an authorisation system which must be applied by the Member States.

8.3 The proposal, which would apply to all nuclear installations, addresses three aspects of nuclear safety, in the form of a framework Directive based on the Nuclear Safety Convention[23] of the International Atomic Energy Agency (IAEA), setting out a number of basic obligations and general principles. The three aspects are the need to set minimum standards, the importance of independent verification of the actions of Member States in this area, and the continuing need for radiological protection after the active life of a nuclear installation. More specifically, it would require Member States:

  • to establish an independent nuclear authority to supervise and regulate safety in nuclear installations, to grant licences, and to monitor the application of regulations regarding their siting, design, construction, commissioning, operation and decommissioning;
  • to take the measures necessary to establish and maintain effective arrangements against potential radiological hazards, to prevent nuclear accidents (and to mitigate the consequences of any which do occur), and to ensure the long-term management of all materials, including radioactive waste and spent nuclear fuel, produced in the course of decommissioning, in order to protect workers and the general public;
  • to ensure that due priority is given to nuclear safety in the course of all practices directly related to nuclear installations;
  • to require those responsible for nuclear installations to operate them in accordance with common safety standards, to establish quality assurance programmes, and to allocate responsibility for any decommissioning;
  • to ensure that nuclear safety experts are available, and that the necessary inspections are carried out by the relevant authority;
  • to take steps to ensure that adequate financial resources are available to ensure the safety of nuclear installations, and in particular that these are sufficient to cover the decommissioning costs of each installation: in particular, funds for decommissioning should be based on contributions during their operation from those responsible for nuclear installations, and have their own legal personality, in order to ensure that they are used only for the intended purpose;
  • to establish procedures to deal with operating incidents and accidents, and (where significant) for these to be notified to the responsible authority, together with any corrective measures taken.

8.4 These measures could be revised using the procedure laid down in the Euratom Treaty,[24] and would be backed up by a verification system operated by the Commission, which would be able to call upon nominated national experts, and which would send its report to the Member State concerned (which would then have three months to indicate how it intends to remedy any shortcoming).

The Government's view

8.5 In his Explanatory Memorandum of 26 June 2003, the Minister of State for Energy, E-Commerce and Postal Services at the Department of Trade and Industry (Mr Stephen Timms) has expressed a number of concerns about the proposal.

8.6 First, he says that the recent ruling of the European Court of Justice, cited by the Commission to support its view that it has competence to make this proposal, has not made it possible to reach a clear view as to whether the competence or powers available to the Commission are wide enough to introduce Community legislation in all the areas covered by the draft Directive, especially as regards the detailed rules envisaged for managing decommissioning funds. He adds that the Commission has also sought to include provisions based upon aspects of the International Convention on Nuclear Safety, for which competence was not claimed in the Court case. In view of this, the Council's Atomic Questions Group has asked the Council's Legal Service for an opinion. The Minister also says that, if the Commission is considered to have insufficient powers, the question arises as to whether Article 203[25] of the Euratom Treaty could be used as a further legal base, though he points out that this would not assist in areas where the Community has no competence at all. It would also mean that, instead of the Council acting by qualified majority, unanimity would be required.

8.7 Secondly, the Minister says that the obligations which the proposal would impose are, for the most part, already reflected in UK law, but that there are some areas which need to be clarified. These include whether the Environment Agency (which does not have a wider safety role in this area) would be able to license nuclear installations; the possible need for specific provisions to allow the establishment of quality assurance programmes; and the difficulties which the proposals on separate decommissioning funds would create, where, in accepting responsibility for public sector nuclear liabilities, the Government is proposing to establish a statutory segregated account, which provides a rolling commitment to ensure the necessary funds are available as decommissioning falls due.

8.8 Thirdly, the Minister has serious doubts on subsidiarity grounds as to whether the proposal will add any value to the existing nuclear regime, which involves national regulation within the framework of the International Atomic Energy Agency (IAEA). He says that much of what is proposed would duplicate existing mechanisms, and that, since the Commission has no technical expertise in this field, it would need to rely on experts from Member States, who would have to be taken away from their current duties, thereby reducing their effectiveness. He also points out that the Council has already analysed nuclear safety in the candidate countries, and that several of these have made legally binding commitments to ensure that they reach levels comparable with those in the existing Member States, and he doubts whether there is any benefit in taking further legislative action. However, he says that the possibility of a non-binding instrument, such as a Council Resolution or Recommendation, has found favour with a number of Member States, including the UK.

8.9 Finally, the Minister says that, although the Government's informal consultation exercise earlier this year elicited only a very small response, concerns were raised over the expertise available to the Commission, the proposed legal base, and, more particularly, the suggestion that the proposals should be implemented by May 2004, which was seen as totally unrealistic. He adds that his department is also discussing with the companies concerned the implications of the proposal for decommissioning funds, and that, if it seems that the additional costs of this would be significant, a Regulatory Impact Assessment will be prepared.

Conclusion

8.10 It is evident that this proposal not only deals with a subject which is intrinsically important (and which gives rise to a number of policy and practical implications within the UK), but also raises a number of important questions, particularly as regards the Commission's competence in this area and the subsidiarity principle. We are therefore minded to recommend it for debate in European Standing Committee C, but wish first to take oral evidence from the Minister.


22   Case C-29/99. Back

23   This differs from the proposal in one respect, in that it applies only to nuclear power stations. Back

24   This provides for basic standards to be worked out by the Commission after obtaining the opinion of a group of scientific experts appointed by the Scientific and Technical Committee.The Council then establishes the basic standards following a proposal from the Commission, and after consulting the European Parliament. Back

25   This allows the Community to act in areas where it has competence, but insufficient powers to act in the way proposed. Back


 
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