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27 Jan 2003 : Column 655—continued
Mr. Deputy Speaker: Order. The hon. Gentleman is starting to stray slightly outside the Bill. Also, may I remind him not to use the word "you" when referring to hon. Members in the Chamber? He must use the correct parliamentary language.
The Parliamentary Under-Secretary of State for Trade and Industry (Nigel Griffiths): Youse!
David Hamilton: I said youse. That is a Scottish word, which is collective, but I take the point, Mr. Deputy Speaker, and thank you for your guidance. I did digress slightly on Iraq. I dare say that we will return to that in another debate.
On the issues raised by the Minister and the billions of pounds involved, I see no alternative to what is proposed in the Bill. I will support it, because it contains the possibility that British Energy may come back into public ownership, if necessary. We do not have the luxury of voting against the Bill, when everyone knows full well that no other option is available to us. There is no third party that would be interested in picking up a dead duck.
When I came to the House a year and a half ago, I was reminded many times of my responsibility to my constituents and the people who put me here. That is partly what the Bill is about. Some of the matters that we have to deal with in Parliament are unpalatable. If the public purse must be used to secure the long-term interests of energy, that is what we must do, rather than arguing about it when there is no alternative.
Some important points have been made in the debate. I agree with the unions at the TUC conference when they decided unanimously—unusual nowadays—that the industry should be taken back into public ownership. I look forward to that day.
9.14 pm
Albert Owen (Ynys Môn): It is difficult to speak at the end of a debate without repeating the points that have been made, but I have been here for most of it, while the hon. Member for Blaby (Mr. Robathan), who will speak from the Conservative Front Bench, has not, or at least his hon. Friends have not. That is not the point, however: it is difficult to make new contributions, but I shall try to do so.
As has been pointed out, the Bill is an enabling Bill. While it is a technical Bill that enables the Government to deal with financial problems relating to British Energy, it is difficult to limit our comments and observations to this unique situation and not to discuss the wider ramifications for the electricity industry and
nuclear energy in particular. Indeed, some clauses have a general application. The financial problems of British Energy have attracted wide interest, as has the impact on any future energy policies. I realise that you will call me to order if I stray on to the White Paper on energy policy, Mr. Deputy Speaker, but I point out that it is very significant, for reasons that I shall explain later.As the only Welsh Member with a nuclear power station in their constituency, I bring to the debate a Welsh dimension that I believe is current and relevant, even if it is not universally accepted by Plaid Cymru Members. My hon. Friend the Member for West Bromwich, East (Mr. Watson) referred to Welsh Water—he called it south Wales water—but I must correct him, as Dwr Cymru, Welsh Water, covers the whole of Wales. The Welsh model has some relevance in discussing a future model that is a halfway house located between full renationalisation and the private sector—a point that he made most forcefully.
When the British Government announced the first loan to British Energy in September, I was approached by interested parties in my constituency—BNFL, managers, unions representing the workers in the local power station at Wylfa, environmental groups and individuals. They were concerned about the impact that such a decision would have on the electricity industry. Some blamed the managers of British Energy, while others blamed the Government or botched privatisation by the previous Government. A number of concerns were also expressed about the future of nuclear power. I believe that what is needed and will be provided in the White Paper is a mature debate about the right energy mix for this country and for the future.
Mr. Simon Thomas: Does the hon. Gentleman see in that mature mix, as he describes it, the need for new nuclear energy plants in Wales? Does he accept that his right hon. Friend the Secretary of State for Wales has ruled that out?
Albert Owen: I shall not stray into that debate—I know that you would not allow me to do so, Mr. Deputy Speaker—for which there will be ample opportunity. However, I should like to correct the hon. Gentleman, as I said that we needed a mature debate to get the right mix. All hon. Members will agree that we need to have that mature debate without being sidetracked by individuals' comments.
When the loan was further extended and my right hon. Friend the Secretary of State for Trade and Industry told the House about the plans to introduce the measures before us today, the focus of attention shifted from the blame culture, whereby people tried to decide whose fault it was, to exactly how—not whether—we were going to introduce legislation enabling the Government to provide a safety net. The blame game was over. After all, British Energy is a major generator in crisis. Like every crisis, this one requires crisis management. The Government could not sit idly by and do nothing. That is why I support the Bill and the measures that it is introducing for the reasons that my hon. Friend the Minister set out.
The Bill may not be good, old-fashioned nationalisation—a measure that a number of my colleagues, as well the groups and individuals that have
contacted me, have mentioned—but, while I do not advocate renationalisation of British Energy, it is not such an absurd proposition, especially with plans to set up an authority to deal with public sector nuclear liabilities. While it would be wrong to engage in political point scoring, let us not forget that the privatisation of British Energy was a privatisation too far, as was privatisation of the railways. We now have to revisit the Railtrack fiasco and the privatisation of British Energy.The Government are right to implement plans to provide the necessary mechanisms in the event of administration or solvent restructuring. We cannot simply shut down nuclear power stations. I appreciate that some hon. Members on both sides tackled that, but it is important to emphasise it. We should reject simply shutting down nuclear power stations because of the job factor. It would also cost more to shut them down than to keep them open.
As my hon. Friend the Member for Alyn and Deeside (Mark Tami) said earlier, many British Energy power stations are located in areas of high unemployment. They have links with other manufacturing industries in the area that would be severed if the power stations were simply closed, resulting in job losses downstream. I should like my hon. Friend the Minister to deal with that and assure us that jobs and contracts will be safeguarded if the Bill is enacted. I appreciate that it is a difficult matter for the Minister to tackle, but people in the nuclear industry who are worried about the knock-on effects have raised it with me time and again.
Let us consider the interdependency of major employers. British Nuclear Fuels Ltd. owns the station at Wylfa in my constituency. As I said earlier, it is the only operator in Wales and it has some 500 employees and 100 permanent contractors. More than 75 per cent. of the work force is local, and it is well trained. Jobs there are the highest quality jobs in my constituency. Wylfa contributes £20 million per annum to the local economy. That is a quarter of my area's gross domestic product. Nuclear power stations therefore have a significant impact on the GDP of the areas where they are situated.
My hon. Friend the Member for Midlothian (David Hamilton) mentioned the union stance. He rightly said that there was unanimity at the TUC conference, and I accept that that is rare. However, individual unions and leaders have approached me about the subject. They look to the Government to get matters right and ensure job security in future. Some advocate Railtrack-style solutions and others go as far as good old-fashioned renationalisation. However, safeguarding the quality jobs should top the agenda. Again, I press my hon. Friend the Minister for that assurance in his winding-up speech.
The reasons for the Government's intervention are security of supply and guarantee of safe operations. They are important matters and, again, I call for a mature debate to get the right mix of energy needs for the United Kingdom. I believe that we all support that.
Brian White: My hon. Friend makes a strong case for British Energy to continue processing. However, does
he accept that British Energy could operate in different ways rather than simply continuing with the current contracts?
Albert Owen: Yes, but insecurity exists. Some contracts could be jeopardised and we must therefore get the Bill right now.
The Californian experience shows that if we do not provide the right incentives for new investment—in any sort of energy—we could end up with a worst case scenario. Fulfilling the demands of low carbon needs requires planning—proper planning, not knee-jerk reactions. The Bill will provide stability, albeit in the short term. It provides opportunities to re-examine the matter in future and perhaps accept good old-fashioned renationalisation or the Welsh model that some people advocate. However, we need the prospect of sustainable energy. We also need to deal properly with British Energy so that we can approach the White Paper on a level playing field. The Bill may be narrow but it has wide ramifications for nuclear power, the electricity industry and the review to which I look forward in a few weeks.
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