Winter 2008 Parliamentary Records: Nuclear Industry Finance

Subject(s):
19 November 2008
Various, See links within text, 19 November 2008, N/A

Nuclear Industry Finance Debate, Westminster Hall Debate, 19 November 2008

Nuclear Industry Finance

4 pm

Paul Flynn (Newport, West) (Lab): This is a lamentable saga of a breakdown of parliamentary accountability on nuclear industry finances. It is a matter of the gravest importance, involving the most hazardous nuclear site in the country, and huge sums of money. Initially, the contract was worth about £7 billion—£1 billion a year—but eventually it could cost up to £93 billion.

The Government have been bewitched by the pied piper of nuclear power, just three years after deciding that nuclear power was financially an unattractive prospect. They are now uncritically embracing it as a panacea. That might explain the disgraceful events that have taken place. It may also be a subterfuge to bury embarrassing news on the continuing saga and the enormous cost of the nuclear legacy, and also to disguise the fact that the Government are dumping a potential multi-billion pound liability on the taxpayer in a wholly unwarranted and possibly illegal new subsidy for the nuclear industry.

All hon. Members except two have been denied any chance of commenting on the policy, which is a parliamentary outrage. Early-day motion 2321, which was signed by more 30 hon. Members, asked for action on the matter.

On 14 July, my right hon. Friend the Member for Croydon, North (Malcolm Wicks)—I am delighted to say that he is in his position today—wrote to the Chairman of the Public Accounts Committee, and sent a copy to the Chairman of the Business, Enterprise and Regulatory Reform Committee, in which he set out the proposed arrangements for a public sector supported nuclear indemnity for the winner of the competition for the parent body organisation to take over the management of the massive Sellafield site. He inserted inter alia:

    “Given the low probability of a claim being brought, the Nuclear Decommissioning Authority has assessed that the benefits of engaging a contractor will far outweigh the small risk that the indemnity may be called on.”

He said “small risk”. That is a key issue. The risk was so serious that the main contractor said publicly that without the indemnity his company would withdraw from this very lucrative contract. He said that it was not prepared to take on the insurance risk. The Minister’s letter also said:

    “I am placing a copy of this letter and the Departmental Minute in the Library of the House.”

The Minister placed the letter in the Library, but not on 14 July. It appeared in the Library on 15 October —75 days after the final date on which hon. Members could object. As hon. Members have only two working weeks in which to comment on such departmental minutes, that effectively meant that no MP, other than the two Committee Chairmen, had sight of the minutes within the specified period. That alone should invalidate any subsequent attempt by Ministers to push ahead with the concluding transfer of the management contract for Sellafield. None the less, they concluded the contract on 6 October, the first day that Parliament resumed after the summer recess.

Yesterday, in our splendid debate on the feed-in tariff, I heard the Minister talking about how slowly Parliament moves on many desirable objectives. However, in the

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