Select Committee on Trade and Industry Minutes of Evidence


Examination of Witnesses (Questions 100-106)

NUCLEAR INDUSTRY ASSOCIATION AND BRITISH ENERGY

16 MAY 2006

  Q100  Mark Hunter: Could you deal with the cost issue which I mentioned in the latter part of the question? If there is a similar programme of support in the UK to encourage the same amount of new build, how much is it likely to cost the UK taxpayer?

  Mr Spence: We are not talking about subsidies.

  Q101  Chairman: That is very helpful. You have just said that the nuclear industry needs three things from government, given that we do not build these stations any more: a change in planning; a change in carbon; and pre-licensing.

  Mr Spence: Perhaps I may add a fourth one which we take for granted; that is, CoRWM moving forward and, therefore, a route on waste management.

  Q102  Chairman: None of that has any direct cost to the taxpayer except for the civil servants' time involved in taking it forward?

  Mr Spence: Explicitly, we are not looking for a subsidy.

  Q103  Mr Bone: I come to this with an inclination towards nuclear power. I am concerned if for public confidence reasons the industry dismisses any objections as being emotive and extremist. I wonder whether your very good comment about not appearing to be arrogant is part of the solution to that in building public confidence.

  Mr Armour: I think that more than most we rely on public confidence for our licence to operate. That is very much why we think it is important to go through a process of open dialogue, whether it is the planning or licensing process. There is a tendency to repeat those rather than have legitimate debate. We welcome what has happened with CoRWM which is a matter of learning from the past. There has to be engagement, but equally one has to come to an understanding at some point, deal with things and move forward.

  Q104  Mr Bone: Another issue related to public confidence is that the energy review by the Government is supposed to be an open one. I am much minded to listen to all the debates and hear where we should go forward on energy. The media is presenting this as a done deal and the Government will come down heavily on the side of the nuclear industry. In the past there have been examples where this Government has made up its mind and gone through a process of review or consultation. That is a concern to me in the area of public confidence. Do you share that concern—or perhaps you know whether or not it is a done deal?

  Mr Armour: We hear the Government making very clear statements that it is nuclear neutral, and it is probably making the right statements. There is not a single solution to this problem; we need a balance if we are to tackle security of supply, sustainability, global warming and affordability. Against the environment in which we find ourselves we need no one solution. Nuclear is not all of that, but equally it would be daft to ignore the only proven large-scale generation type one has that is low carbon. I believe, therefore, that it has to be part of the ongoing mix.

  Mr Parker: One also sees the public reflecting that view. We do regular polling. When the question is put, "Would you advocate a mix of generating sources including renewables and nuclear to provide security and reduce emissions?" about 63% of the population will agree with that particular proposition. We are also seeing a growing awareness among the public of the dangers of climate change and the risks to the security of energy supplies. Again, that influences the way in which they look at issues like nuclear; they are beginning to see that it has some benefits in terms of addressing those concerns.

  Q105  Mr Bone: Both evidence sessions today have been very useful. I would be very interested in your view about the idea that communities should be given the option of vetoing the building of a nuclear power plant. If that was possible it would give enormous public confidence to the whole process.

  Mr Armour: Perhaps one should distinguish two aspects here. I think that the original question was asked in the context of a long-term repository which might be there for thousands of years. In that context should a local community have to sign up to it? The interesting example is perhaps the Finnish one where in the latter stages four communities were competing and it came down to two finalists and one choice, in return for compensation. The community which was chosen in the west of Finland also has the nuclear station. We have seen that replicated overseas. Getting a community to sign up for a very long-term arrangement is important. If one is talking of a power station that is there for 60 years, equally there must be benefits for the local community and it must go through the planning system. Do I think we should give vetoes to this or any other major infrastructure project, for example if one similarly regarded power lines? At the moment there is huge controversy in Scotland over the question of power line upgrading. There must be a balance in the planning system between national need and the interests of the local community. It should take those together, but ultimately we must find a way through that does not create planning paralysis. In the context of nuclear waste we have a legacy in the UK and a solution must be found for it. It should be possible to do that by consensus, but ultimately we have to find a way through.

  Q106  Chairman: The planning issue hangs above almost every aspect of the energy debate, as we shall see in perhaps an hour or so when the Secretary of State makes an announcement on gas storage. Microgeneration faces huge planning issues. It seems to me it is planning, planning, planning.

  Mr Parker: And not doing, Chairman!

  Chairman: Thank you very much indeed, gentlemen. We are very grateful to you for your time and trouble. I think that we will be hearing from the sceptics next week.





 
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