4 The future for Dounreay's workers
55. UKAEA Dounreay was not solely a power station,
but was also an active research facility, including the Dounreay
Fast Reactor (DFR), closed in 1977, the Prototype Fast Reactor,
shutdown in 1994, and Supernoah, used to study sodium-water reactions,
closed in 1995. In 2000 the Dounreay site restoration plan envisaged
a 60 year project; in 2004, however, it was announced that decommissioning
would be completed by 2036.
56. Therefore, whereas just 5 years ago, every worker
at Dounreay could be confident of employment for the rest of their
working lives, the youngest workers could now face the possibility
of being out of work by the time they are in their late 40s.
57. As Highlands and Islands Enterprise (HIE), a
Scottish Executive Non-Departmental Public Body (NDPB), said in
their written submission:
"The Dounreay nuclear establishment has been
a major part of the economy of the far north for the last 50 years
and currently provides direct employment (between UKAEA and site
based contractors) for over 2000 people. Recent estimates from
UKAEA indicates that one in five jobs in Caithness and North Sutherland
depends on decommissioning Dounreay and across Scotland it accounts
for approximately 2930 jobs."[32]
58. When asked about other forms of employment in
the area, UKAEA's response was:
"There is a manufacturing company, Norfrost,
who are based in one of the smaller satellite towns away from
Thurso…..they manufacture refrigeration units, and they employ
of the order of 350 people. There is a specialist battery factory
based in Thurso which employs of the order of 200 people; there
is a call centre managed by British Telecom, once again of the
order of 100 people. Beyond that we have a number of engineering
contract firms which are not exclusively but heavily reliant upon
Dounreay, and give it a tremendous service, actually. We are talking
I think of low hundreds in terms of employment……The
rest of employment is dispersed in agricultural and small business
units…… it is perhaps worthwhile pointing out the adjacent
nuclear facility at Vulcan, which is the Royal Navy's reactor
test establishment to support its submarine fleet, which is quite
a significant employer, and the nearest thing there is to Dounreay-type
of employment."[33]
59. Highlands and Islands Enterprise is responsible
for social and economic development in northern Scotland. It operates
a network of local enterprise companies, including Caithness and
Sutherland Enterprise (CASE). It is the lead body in terms of
responding to the socio-economic challenges brought about by clean-up
and site closure. In 2001, the then Energy Minister, Brian Wilson
MP, and the then Scottish Executive Enterprise Minister, Wendy
Alexander MSP, announced a task force under the auspices of CASE
to address the socio-economic consequences of site closure.
60. From 1 April 2005, UKAEA will become a contractor
to the new Nuclear Decommissioning Authority (NDA), an NDPB being
set up by Department of Trade and Industry. The NDA will take
strategic responsibility for the clean-up of 20 civil nuclear
sites in the UK (Dounreay being the second largest). The NDA will
have a duty to consider the socio-economic consequences of the
clean-up programme. The contract between NDA and UKAEA will include
reference to socio-economic issues. Subsequent contracts will
be opened up to competition.
61. There are still some 30 years before Dounreay
is finally decommissioned, so there is the possibility of other
employment coming into the area or a new role being found for
the site. For example, we were pleased to note that the famous
DFR sphere would be retained after decommissioning, and possibly
used as a science exhibition centre.[34]
It was also suggested when we were in Sacramento that Dounreay
could become, in effect, "a biomass centre of excellence".
But although there is no need to panic, there is no need for complacency
either.
62. If they have not already done so, we would suggest
that the UKAEA, CASE, HIE etc might usefully make contact with
the Bureau of Workforce Development at the Illinois Department
of Commerce and Economic Opportunity, who have reacted with compassion
and efficiency when tackling some of the not dissimilar problems
experienced by redundant workers and their families in Zion City
with the closure of that city's major source of employment..
63. We consider
that UKAEA, in conjunction with its partners, is doing all it
can to assist its loyal and skilled Dounreay workforce who are
facing an unsure future. We consider also that the Government
should stand ready to listen to any proposals put forward by UKAEA
or the NDA etc to ensure that the workforce are given all possible
support. In addition, Dounreay contributes approximately £80
million into the Highlands through salaries, pensions, contracts
and sub-contracts. Caithness and the rest of the Highland Region
must be assisted also to overcome the problems which could ensue
in a few years' time.
32 See written submission from Highlands and Islands
Enterprise (HIE), HC 259 Vol II Back
33
Q 6. Back
34
Q 21. Back
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