Select Committee on Trade and Industry Minutes of Evidence


Examination of Witnesses (Questions 360-376)

ENVIRONMENT AGENCY AND HEALTH AND SAFETY EXECUTIVE

13 JUNE 2006

  Q360  Mr Weir: But equally, when we had the Nuclear Decommissioning Agency here, it seemed clear to me that no-one was exactly certain what waste there was on some of the existing sites and I am concerned that there is a potential problem with these sites. There is no deep storage site that has yet been identified. Is it not the case that that needs to be done before we create more waste?

  Dr Weightman: As I say, I think that is outside my area of competence. My role is to ensure that waste is stored safely.

  Mr McHugh: I think this probably is one of the key issues for the question of justification for nuclear reactors, what would happen to the spent fuel and the radioactive waste which would be created. We have not talked about the justification yet, but that would be a decision for the Secretary of State for Trade and Industry to take. That is a very important question which needs to be addressed as part of the justification, what will happen to the spent fuel.

  Q361  Mr Weir: Do you think fuel reprocessing should play any part in the future nuclear programme?

  Dr Weightman: Again, that is a policy decision. What I am about is making sure we secure safety on behalf of the public.

  Q362  Mr Weir: It is not entirely a policy decision. One of the types of reactors that has been mentioned, especially in the area of pre-licensing reactors, is the fast breeder reactor that destroys much of the fuel as it goes through. If we are creating nuclear waste, is something like a fast breeder reactor a runner, if you like, for a new nuclear programme to ensure there is less waste produced in the future?

  Dr Weightman: Not in the foreseeable future. There are two aspects to the fast breeder reactor. It can generate new fuel; that is the breeding bit, but also you can use some of the neutrons to transmute some of the nuclides around that, but that technology will not be anywhere near developed in the foreseeable future.

  Mr Bates: It is worth saying as well that the generators appear to be moving away from wanting reprocessing, perhaps because of its costs and the question of value of the output of reprocessing. It is not like there is a big market demand and they are having to assess, looking forward, that is, to new nuclear, whether there will be a big reprocessing component to that. It does not appear to be that that is the way they want to go.

  Q363  Mr Weir: Given that reprocessing could mean, as I understand it, less waste, does the Environment Agency not have any view on whether that is preferable to creating more waste?

  Mr McHugh: In terms of volume it creates more waste; low level waste and intermediate level waste from the spent fuel.

  Q364  Mr Weir: Is it less radioactive than the waste that would be created by the other reactors?

  Mr McHugh: You create different types of high level waste. You create high level waste in the form of what are called fission products and you separate out the plutonium created in the reactor and the uranium and plutonium that you may or may not be able to recycle in fast breeder reactors.

  Mr Bates: Reprocessing stands or falls on whether the value of the recovered products, the recovered uranium and plutonium, outweigh, both environmentally and economically, the costs of the process which involves an expansion of the volume of waste—more discharges, more complexity, more risk.

  Q365  Judy Mallaber: Can we move on to the question of public confidence? I am very conscious of this because we had a very difficult couple of years in my constituency, about which you will know, regarding the disposal of low level nuclear waste arising from a Rolls-Royce marine operation in Derby. At one point myself and my then MEP, Philip Whitehead, were mediating between the Environment Agency, who were actually the good guys, and the local campaign groups to get people in the same room, the level of tension over even an issue like that was that high. I am interested in how you see your roles evolving in ensuring public confidence if there is a decision to go ahead with new nuclear build and public confidence in the regulatory process. Maybe you could speak on that as I know you have considerable experience in dealing with problems at a local level.

  Mr McHugh: The subject we are debating is highly controversial and highly contentious, as you found in your constituency. We publish a lot of information for members of the public when we are going through changes in our regulatory permits, in our authorisations, and we are just doing that with some of the British Energy sites. We try a range of different methods to engage with people at the local level particularly through, for example, drop-in sessions, surgeries, as well as consultations and traditional means such as paper and things going out on the website. We find generally that we are regarded as being a firm but fair regulator in sessions that are open to free discussion. A lot of people do not know a lot about the subject and a lot of our job is trying to communicate the risks of the radioactive waste disposals which would arise. I am sure that is the case for HSE as well in relation to nuclear safety risks. It is a very technical subject to get the message across on in a simple form. We try lots of different methods to communicate and to engage with people to ensure that they have a better understanding of the way in which we regulate and which risks are controlled. Is that what you were trying to get to?

  Q366  Judy Mallaber: I just wondered if you had any plans in place now, given how difficult it has been even in what should have been an easy situation in my constituency.

  Dr Weightman: Perhaps I can add something there. It is a very complex question and for me it is clear that I have the responsibility to ensure that the public trust the nuclear regulatory system. That is not the same as saying that I have not got a role to promote nuclear energy or the use of nuclear energy. It is for me to focus on the nuclear regulatory system. For me it is not something that is a given because I am a technical expert (if I was) or our body is a technical expert. We have to earn that trust and I think society has changed and you can see this right through society, the way in which experts are viewed in court cases and elsewhere. You very much have to earn that trust, and with that trust comes confidence. For me it is about being open, it is about being transparent in what we are doing and listening to people, what their fears are, and trying to explain what we are doing in relation to securing high levels of nuclear safety on nuclear-licensed sites. For me it is not something where I can say, "I am an expert; therefore trust me". I have to earn that trust. We have to earn that trust as a body and we do that by being open and transparent about how we go about our business. For example, for many years we have supported local liaison committees around nuclear licensed sites with our local site inspector who looks after the site (but who is not locally based). He will put forward a report and be there to answer questions for anybody who wants to ask questions around that. Similarly, when we go onto sites we talk to workers and workers' representatives to make sure we understand and listen to what their fears and concerns are on the sites.

  Mr McHugh: Can I come back about the process that we might follow in relation to pre-licensing? One process which might be appropriate would be for the applicant in effect to place as much information as possible in the public domain and seek comments on it which would be fed back to the regulatory bodies so that there could be as much transparency about the process as possible in relation to the pre-licensing decisions that we would be making. We want it to be as open and transparent as possible in the pre-licensing process. It would not be something we would do in private. We want to engage with people as much as possible about what is planned for pre-licensing arrangements.

  Q367  Chairman: The border has featured briefly in our discussions. Obviously, waste management is a devolved matter. Are there any problems or issues that we should be aware of about the implications of the regulatory process because of the devolved nature of some of the issues, or is it in practice not an issue?

  Mr McHugh: Again, we work closely with our counterparts in Scotland, with SEPA. The Scottish Executive have fully devolved powers in this area in terms of environment. They have intervened in relation to a low level waste decision in relation to Dounreay, for example, so the Scottish Executive can make decisions. I do not get the impression that it is not coordinated but the devolved administrations have separate powers and can choose to find solutions which are right for Scotland.

  Dr Weightman: For ourselves health and safety is not a delegated power and we have close liaisons with SEPA, the Scottish Environment Protection Agency.

  Q368  Chairman: So there are similar arrangements?

  Dr Weightman: Yes.

  Q369  Chairman: The pre-licensing process—you have got the powers necessary to do that. You do not need new legislative powers to do that?

  Dr Weightman: That is right.

  Q370  Chairman: There is no change there. So when you produce your conclusions for your consultation you can go ahead and do whatever you need to do if the Government tells you to do it?

  Dr Weightman: Yes, if we get requested to do it, and the vendors or whoever comes forward with a safety case to assess.

  Q371  Chairman: Let me end by asking you an overall question about your approach to this review. We are told that this is fundamentally a nuclear review; that is what somebody has said anyhow. I presume that pleases you in the Nuclear Inspectorate because you are going to have a lot more shiny new reactors to inspect, are you not?

  Dr Weightman: Both professionally and personally I am neutral on it. It does not matter to me. I have enough business in front of me with the acceleration of decommissioning to address. There is increased activity at the Atomic Weapons Establishment with the £1.05 billion investment over the next three years which we also regulate. There is a lot happening out there. Whether there is a shiny new reactor or not I am completely neutral about.

  Q372  Chairman: But with regard to these four issues the Government is asking you to respond to them on—gas storage; demonstration of carbon capture and storage; renewable issues; and nuclear—is there not a relative workload waiting in those? Are any of them going to be more important and is there more pressure from the Government on some of them? Are some of them taking more of your time to deliver answers to because they are more complex? I imagine the nuclear one is a very complex one to answer.

  Dr Weightman: The simple answer is yes, it obviously has taken more time because they have also asked questions around pre-licensing and we have looked at what the issues might be around that, and we have engaged with stakeholders to get their views as well, and that obviously takes time and resources to do.

  Mr Philpott: On the other issues, we have done a similar exercise and we have looked at the health and safety implications of greater use of gas storage and so on, but it is not for us to decide whether there is greater reliance on that or not. We have identified what the issues are and we will report to Government by 30 June.

  Q373  Chairman: But the Environment Agency is not quite so neutral because, as I read your evidence to this Committee, and we are talking about looking at three issues, saying, you are pretty dubious about nuclear, you will reluctantly accept gas and get really excited about microgeneration, so presumably you will be pretty upset if there is nuclear new build.

  Mr Bates: That is not the intention. Right at the very beginning of that document the words "technology neutral" should jump out. We favour many of the mechanisms and ideas that were put to you by Dieter Helm in the last session, or at least the principle by which he is working, which is that Government should establish an objective and then set up a market that rewards or penalises and then brings forward according to how good particular technologies are at achieving those objectives, so some kind of long term value placed on carbon, something that reflects energy security objectives along the lines of his capacity market or something similar. That is the way we think it should go. In the case of renewables there is perhaps additional justification for some of the technologies associated with innovation policy in which we are dealing with technologies that are not yet mature. In that case you need something quite technology specific to drag them towards market but I think you will see in our work some scepticism about whether that justification has been overplayed in the case of some renewables that are in effect mature technologies and are over-rewarded in the current Renewables Obligation. On energy efficiency, we would like to see it played on a level playing field with supply side measures because it is fantastically cost effective but there are all kinds of quite specific barriers in the way of that happening and therefore we need quite a specific approach to removing those barriers so that we have a proper level playing field that can expose the true economics of demand side measures.

  Q374  Chairman: The specific concern about nuclear was that if the Government subs nuclear it could in effect crowd out the other low carbon technologies. We have heard from the industry that they do not want subsidies; they prefer solutions such as Dieter Helms'. There do not need to be subsidies. Do you think there will not be?

  Mr Bates: That is not for us to say. We have put forward our advice. We are supposed to give advice to the Government. Our advice is to set the objectives and reward the technologies that help to meet those objectives without being specific about what the technologies are. If they do that and it all works well then the right technologies will be those that come forward to meet the objectives that we have.

  Q375  Chairman: Do you feel the Energy Review has been conducted in a neutral way and you are happy about the way in which your evidence has been listened to by Government?

  Mr Bates: The advice that we put forward is very much aimed at creating a technology-neutral framework for energy policy. There is a lot of agreement around that. I know Ofgem, the regulator, put forward similar views. Quite how the Energy Review team itself is working through the practicalities of dealing with that and delivering to what is a very aggressive timetable by anybody's judgment is another matter, but what we are hoping is that they will use fairly sound environmentally economic practices when they shape the market that will deliver on these very important objectives.

  Q376  Chairman: And was the Prime Minister technology neutral at the CBI dinner?

  Mr Bates: No. He was not technology neutral and he may not be listening to our advice.

  Chairman: On that note, unless my colleagues have anything else to ask you we will declare the session closed and express our gratitude to you for your time and trouble. Thank you very much.







 
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