Select Committee on European Scrutiny Third Report


3 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 3.6 below)
DepartmentTrade and Industry
Basis of considerationMinister's letter of 30 October 2003 and oral evidence of 2 December 2003[5]
Previous Committee ReportHC 63-xxix (2002-03), paragraph 8 (10 July 2003)
To be discussed in CouncilNo date set
Committee's assessmentLegally and politically important
Committee's decisionNot cleared; further information awaited

Background

3.1 In November 2002, the Commission produced a Communication, Nuclear safety in the European Union, in which it argued that the conditions needed to establish a greater Community involvement in nuclear safety matters had now been met.[6] It followed up that Communication in January 2003 by producing two legislative proposals, one concerned with the management of radioactive waste,[7] and the current document which deals with the safety of nuclear installations.

3.2 The Commission's rationale for its proposal on nuclear installations was set out in its Communication (and summarised in our Report of 10 July 2003), though it also cited a subsequent judgement[8] by the European Court of Justice, in which the Court had 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.

3.3 The proposal itself, which would apply to all nuclear installations, addresses three aspects of nuclear safety — the setting of minimum standards, 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 maintain effective arrangements against potential radiological hazards and nuclear accidents; to ensure that due priority is given to nuclear safety; to require nuclear installations to be operated in accordance with common safety standards; and to ensure that nuclear safety experts are available, and the necessary inspections carried out. The proposal would also require Member States to ensure that adequate decommissioning funds, with their own legal personality, are generated during the operation of a nuclear installation to ensure its safety and in particular to cover decommissioning costs.

3.4 In our Report, we noted that, 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) had expressed a number of concerns about the proposal. These related to the Commission's competence, where he suggested that the recent Court ruling, cited by the Commission, had 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 proposal, and where the Council's Atomic Questions Group had asked the Council's Legal Service for an opinion; the possible use of Article 203[9] of the Euratom Treaty as a further legal base; the need to clarify the way in which certain of the obligations imposed by the proposal would apply in the UK; and concerns on subsidiarity grounds as to whether the proposal would add any value to the existing nuclear regime, which involves national regulation within the framework of the International Atomic Energy Agency (IAEA). The Minister doubted whether there was any benefit in taking further legislative action, but said that the possibility of a non-binding instrument, such as a Council Resolution or Recommendation, had found favour with a number of Member States, including the UK.

3.5 Our own conclusion was that, since the proposal not only dealt with a subject of intrinsic importance, but also raised a number of material questions, particularly as regards the Commission's competence in this area and the subsidiarity principle, we were minded to recommend it for debate in European Standing Committee C. However, we said that we wished first to take oral evidence from the Minister.

Minister's letter of 30 October 2003

3.6 We subsequently received a copy of a letter of 30 October from the Minister to the Chairman of the House of Lords Committee, in which he said:

  • That, so far, discussions in the Council's Atomic Questions Working Group had focussed on whether it would be appropriate to move forward on the basis of a Directive, or whether any Community intervention should be limited to some kind of non-binding instrument, as the UK would prefer. Together with Finland and Sweden, the UK had drafted the text of such an instrument, which had been circulated as a Council document, whilst the Italian Presidency had made two attempts at revising the draft Directive to make it more appealing to all Member States.
  • That the latest version of the Directive gave the impression of having watered down the original Commission draft, with national responsibility for nuclear safety now being recognised amongst the "whereas" clauses, there being no specific references to the development of common Community safety standards. However, the draft still included a series of specific requirements, based on the Convention on Nuclear Safety, which would arguably give the Commission considerable scope for interfering with national regulatory decisions on nuclear safety, and there was nothing in the latest text to change the UK's view that it would not be appropriate for the Community to introduce legislation in this field.
  • That the Atomic Questions Group had yet to embark on an article-by-article discussion of either the Presidency draft or the text of the non-legally binding instrument, though the Presidency had indicated that discussions in the November meetings of the Group would continue to revolve around the respective merits of these two approaches. The non-legislative approach tabled by the UK, Finland and Sweden had also attracted support from Germany and Belgium, but the issue was unlikely to be resolved until much closer to the end of the Italian Presidency.

3.7 The Minister also said that, should an article-by-article discussion ensue later in the year, he would submit a supplementary Explanatory Memorandum covering the version of the draft Directive current at that time, and that this would include the results of the Government's formal consultation on the proposal.

Oral evidence

3.8 When he appeared before us on 2 December 2003, the Minister began by saying that two further versions of the Presidency's compromise text had been considered, and that, as a result, the draft now on the table differed considerably from the one submitted with his Explanatory Memorandum in June (Q2).[10] Thus, specific references to the development of common Community safety standards had been removed; uranium mines and holders of sealed sources, such as hospitals and research institutions, would not now be treated as nuclear installations for the purposes of the Directive; and an additional article had been inserted confirming the national responsibility for the safety of nuclear installations. In addition, all the detailed provisions on financial resources had been removed, including the proposed requirement for the segregation of decommissioning funds; as a result, the proposal would now simply require Member States to ensure adequate financial resources were available to ensure the safety of nuclear installations, including during decommissioning, in line with the advice of the Council Legal Service that the Euratom Treaty does not provide an adequate legal base for detailed rules in this area. Lastly, the Commission would not be empowered to undertake verifications of the national safety authorities using experts from Member States: instead, reviews of the national regulatory bodies would be undertaken by a regulatory authorities' committee, comprising representatives of the national regulatory bodies, and that committee, rather than the Commission, would draw up a review programme.

3.9 However, the Minister went on to stress that, although a number of these amendments had been helpful, they did not — and could not — resolve the UK's fundamental concerns about adopting a legally binding instrument, which would open the way to Community involvement in decisions on nuclear safety, which the Government considers can properly be taken only by the Member States and national regulators. In particular, a Community approach would run counter to the key principle enshrined in the Convention on Nuclear Safety that nation states should be responsible for the safety of nuclear installations within their jurisdiction. The Minister also said that, on 26 November, the Italian Presidency had asked COREPER for a political decision on whether to pursue a legally binding or non-legally binding approach. The UK, Germany, Sweden and Finland had opposed the Commission's approach, as had Lithuania and the Czech Republic. Consequently, the Presidency had concluded that, whilst most could accept an approach based on a Directive, some could not, and it had therefore left it to the incoming Irish Presidency to decide how to take the matter forward.

3.10 We pursued a number of points raised by the Minister in more detail. On the opinion of the Council Legal Service, the Minister said that this had confirmed the competence of the Community to make general rules in the area of nuclear installation safety for the purpose of protecting workers and the general public from the effects of ionising radiation. In particular, the areas covered by the Directive fell within the legislative competence of the Community by virtue of Articles 31 and 32 of the Euratom Treaty (Q3). On whether Article 203 of that Treaty could be used as a legal base, he confirmed that the Article provided a suitable base for Community legislation where the Euratom Treaty did not provide sufficient powers for the Community to legislate, but he said that the Council Legal Service's opinion was very clear that Article 203 was not necessary in the areas covered by the proposal, because the combination of Articles 31 and 32(2)(b) of the Euratom Treaty already provided sufficient powers for the Community to legislate in the areas proposed (Q4).

3.11 On support for a non-legally binding alternative to a Directive, he said that, in addition to the Member States he had referred to, there were some others, such as Denmark, and possibly the Netherlands, which might be able to support the UK position, but that all the other existing Member States had indicated their support for a Directive. Consequently, although there was at the moment a blocking minority, it was not clear whether other Member States would join it (Q5).

3.12 As regards some of the practical implications of the proposal, the Minister said that the UK supported the principle that nuclear generators should ensure that there are sufficient resources to meet decommissioning requirements, and that the biggest operator in the UK (British Energy) already have segregated funds, separately managed. However, he added that, where the Government has undertaken to fund the cost of decommissioning, it must be free to arrange for this to be met in the most cost-effective way. We were also told that the UK operates a very non-prescriptive regime in this area, which would be at risk if a legally-binding Directive were to be introduced, and that this might also increase the pressure for a harmonisation of the very different systems currently in place in the different Member States (Q6). It was also suggested that it would be perfectly possible to spread best practice among Member States by means of a non-legally binding instrument, particularly as all Member States have signed the Nuclear Safety Convention and contribute to the development of standards through the International Atomic Energy Agency (Q7).

3.13 Finally, it was confirmed that the current proposals were not concerned with nuclear security against a terrorist threat, and moreover that, in the view of the UK, this was a matter best dealt with nationally (Q11).

Conclusion

3.14 We are grateful to the Minister for this further information, from which we have noted that the Council is unlikely to return to this subject until the New Year, at the earliest. We have also noted that opinion remains divided on the central issue of whether there should be a legislative or a non-binding instrument. In view of this, we think it right to continue to hold the document under scrutiny pending further developments, and also to reserve judgement on whether a debate in European Standing Committee C is necessary.


5   To be published as HC 70-i. Back

6   (24146) 14875/02; see HC 63-xxix (2002-03), paragraph 18 (10 July 2003). Back

7   (24704) 8990/03; see HC 63-xxix (2002-03), paragraph 4 (10 July 2003). Back

8   Case C-29/99. Back

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

10   'Q' indicates questions and answers in the oral evidence from the Minister. Back


 
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