The proposals for national policy statements on energy - Energy and Climate Change Contents


Examination of Witnesses (Questions 740 - 759)

WEDNESDAY 10 FEBRUARY 2010

LORD HUNT OF KINGS HEATH OBE, MR ADAM DAWSON AND MS ANNE STUART

  Q740  Colin Challen: Does this not illustrate that there is in fact an inherent bias towards nuclear?

  Lord Hunt of Kings Heath: No, I do not think that is a fair comment. What we are clear about is that we want to see a diversity of energy generation. In itself, the commitment on renewable energy of 15 per cent by 2020 translating into about roughly 30 per cent electricity is a clear statement of government policy and priority, so I do not think that that is the case. I think the case in relation to nuclear is due to the specific issues around the decision to go back to new nuclear, the commitment in 2006, and I think also a recognition that the number of sites for potential nuclear development is pretty limited, and I think it is rather different from wind and other generations.

  Q741  Colin Challen: But it seems to me as if the nuclear industry is getting a head start. In dealing with public opinion, the fact that we will have NPSs in relation to renewables, and particularly wind which is perhaps the most controversial, and because there is so much held up in the pipeline, all the battles that local people have about the siting of wind farms have yet to happen or they are happening and they are being generally backed by local councillors who support objections. That does mean that wind still has a lot of resistance to overcome, does it not, despite the NPSs?

  Lord Hunt of Kings Heath: I think that there is no doubt that, if we are talking about onshore wind and planning consent, this has been a major problem. Indeed, when I got this job back in autumn 2008, I think that the two major issues that were raised with me by the industry were access to the grid and the problem of planning. We know that the record of local authorities in giving planning consent to wind is pretty poor, and clearly we hope that the new planning system in relation to onshore above 50 megawatts will lead to a more rational approach and an approach which at the same time allows local people to have their say and, nonetheless, recognises the national importance of major wind applications. I understand that the wind industry themselves did not want the site-specific approach for the reasons that I have suggested. I am optimistic; it does seem to me that in the last two or three years we have seen considerable momentum in relation to wind, and of course offshore the third leasing round by Crown Estates which was announced in January was very, very successful indeed with major companies coming in with major investment, so I would recognise that those developers who have tried to take wind projects forward have found considerable barriers, but I am optimistic. With the combination of the emphasis that we are giving in Government to renewable energy and the reformed planning system, I am hopeful that this will lead to much greater progress in the next few years.

  Q742  Mr Weir: Obviously, we have had evidence from local groups who have been very critical about the public consultation, specifically the nuclear-specific one, and the Department has produced a very interesting and detailed breakdown of the publicity. The residents of Hinkley Point were particularly critical. I notice that there were 5,000 leaflets dropped, according to this, through a long list of villages, but that seems to be considerably less than were dropped at the other nuclear stations when there were between 10,000 and 11,000 in most of them, as far as I can see from this. They were also critical about the area in which they were distributed. Do you feel that sufficient information was given in this case?

  Lord Hunt of Kings Heath: Well, I am. I do believe that we have had a good process in relation to the consultation events, that sufficient information was available, not just through leaflets, but through the local media. Could I ask Mr Dawson to perhaps respond in general because he has been very much involved in the planning of these events.

  Mr Dawson: Indeed, yes. The first point to make, I think, is that the number of leaflets was determined by the geography as opposed to meeting any particular target, so we aimed to leaflet within six miles of a site, so that may explain some of the differences in the numbers that you saw. In addition, we have also sought to advertise in newspapers and we have done that in advance of the public events that we were holding. We have also recently re-advertised the imminent ending of the National Policy Statements consultation so that people have had the opportunity to input their views later in the process as well. Then, associated with all of the events, we have done media, so there have been interviews with ministers and officials on the local media in the areas that have been affected, so I think actually we have gone to quite considerable lengths to make sure that all sites were aware of the activities that were going on and people had the opportunity to come along and have their voices heard.

  Q743  Mr Weir: The other point was that many people did not know, they did not hear it on the media and they did not necessarily get the local paper, so it is interesting that you have included in your paper local pressure group publicity and the Stop Hinkley website, and there the point was that they had to get it out to a lot of people because they were not getting it through the media. My geography of the area is perhaps a bit vague, but Bridgwater was not included in the original leaflet drop, I note from your own thing, and I note also that you have had a second bite at it at Hinkley. Is that evidence that perhaps you accept that it was not so well done in the first place?

  Mr Dawson: The reason why we had the second event was because Hinkley was only the second of the programme of events and we felt that it might have been the case that we were not able to give enough publicity in advance because it happened very soon after we had launched the National Policy Statement. We got feedback from the area that they would like another event, so we responded to that and organised one. Incidentally, Hartlepool, which was the very first very shortly afterwards, we received similar feedback there, so we went back there as well and participated in a session that the local authority organised there.

  Q744  Mr Weir: On a more general point, Lord Hunt, the other point which has consistently been brought forward is the aspect that in the nuclear one, because it is site-specific, it is easier to get public engagement, but with the other ones, where it has not been site-specific, it is very difficult to get local people involved because they do not see the immediate impact in their area. Are you satisfied that there has been sufficient public involvement in these non-nuclear NPSs?

  Lord Hunt of Kings Heath: Well, I do think that the events that we have had nationally on the whole suite of the energy National Policy Statements have been successful and lots of viewpoints have been put forward. One has to recognise that we are at the first part of this whole process and, in the case that you have mentioned of non-nuclear potential developments, of course the whole IPC process means that the developer will have to go through a very extensive process of local engagement before the application can be accepted by the IPC in which the local authority will have involvement. Then, of course you then come to the IPC process itself when it actually takes a planning application and the opportunity for people who have concerns to express their views, in open hearings so we took the decision, which I think was the right one, to only have the site-specific element in relation to nuclear, I think that we got the balance right between national and local events. At the end of the day, the question is this, and this is testing out the National Policy Statements: are they fit for purpose? There is a whole purpose of the current consultation and parliamentary scrutiny and what I can say so far is that we are being tested and that people are raising legitimate issues which we will have to consider. At the end of this part of the new planning system, will we have National Policy Statements that are fit for purpose? Well, I think we will do so. You can always find different ways to consult, and we all are experienced in that, but I believe they are thorough and it has been thorough and effective.

  Q745  Sir Robert Smith: Is there not a danger though in what you just said about the process, that a member of the public comes along on the last day when the IPC are looking at an application and is horrified, shocked, bewildered and gets told, "Oh well, you see, these National Policy Statements constrain us in what we have to do and we have to comply with these National Policy Statements. You really should have taken an interest back then when those Policy Statements were going through", and that is why it is so important to engage the public now? Much of my planning casework is people coming along, saying, "I don't want this development", "Well, you missed it in the Local Plan, you missed it in the strategic plan and you only woke up when the planning application came in", but that is too late to influence the policy process.

  Lord Hunt of Kings Heath: Well, of course I understand the point that you are putting and I would not at all seek to underestimate the value of public involvement in the current part of this process, making sure that these draft National Policy Statements are up to scratch, but let us be clear, that we are at the stage where Government in the end comes to a view on national policy, following scrutiny by Parliament and public input into the National Policy Statements. Now, that seems to me that that is very much the role of Government. When it comes to the individual applications, then that is a matter for the IPC and they will deal with it, using the planning considerations that they have to take into account. I do think that one of the big differences between the current planning regime and what is going to emerge is the amount of work that the developer will have to do with the local authority and the local community before the IPC will even take the application. I also would say that, as you will know, why we are here is because of the experience of previous planning applications where there have been public inquiries and where days and weeks have spent debating the issue of whether you should have a particular technology or not rather than focusing on issues to do with local planning consents and infrastructure; all the issues that we all are interested in locally. What this does is allow much more focus to be given to those local issues and concerns without having the overriding issue of, for instance, do you go back to nuclear or not because, surely, that is right for Government, accountable to Parliament, to actually decide.

  Q746  Sir Robert Smith: One of the other questions on the consultation is on the nuclear side, that a lot of the sites are next to existing plant, and that was very much expected and in the pipeline, but there are greenfield sites. Have you made extra effort to alert the community to the greenfield areas, or have you noticed any difference in the engagement?

  Lord Hunt of Kings Heath: Well, perhaps I could ask Mr Dawson to answer that.

  Mr Dawson: There are indeed two greenfield sites, one is at Kirksanton and the other one is at Braystones, which is fairly close to the Sellafield site. We considered very carefully how to engage with these communities. For example, at Braystones, initially we had considered whether we should do a single event and activity to cover both Braystones and Sellafield, given that they were so close to each other, but we concluded that would be wrong and we decided to run separate events, even though the two sites were very close to each other. We publicised each one separately and we have run separate exhibitions and so on so that we were able to distinguish the greenfield site from the legacy site that was already there in that case. Kirksanton was the other one. We, I think, probably had just about the most vigorous response to our consultation from Kirksanton of all of the sites and I do not think that there can be any doubt that people in the area were aware that this was going on. Certainly, those of us who went there were very aware of the feelings that the people had in the area and we went to considerable lengths to make sure that it was properly publicised, so I do not think there should be any issue of people, certainly in those two greenfield sites, not knowing that it was going on or not feeling that they had the opportunity to input.

  Lord Hunt of Kings Heath: I have done an interview with a local newspaper and the local regional TV on the issues in Cumbria, so we certainly are pretty clear that there are issues that people have raised and we understand them and will consider them.

  Q747  Paddy Tipping: I am pleased that you are having a special event in Dungeness. Is there a strong case for a new nuclear plant there?

  Lord Hunt of Kings Heath: Well, I think as you will know, we concluded that, because of the site of special significance due to the unique nature of the shingle and given the advice that we have had from Natural England, it would not really be possible to mitigate in a satisfactory way or deal with the adverse consequences, and that is why we concluded that we would not be able to recommend Dungeness as a site for development. I know that this has proved to be a controversial decision and I know that there are many people in the vicinity of Dungeness who would wish Dungeness to be considered, and Mr Dawson is attending an event in Dungeness this Saturday where there will be further discussion of it, but, as the Minister who received the advice, I looked at this very carefully indeed. One has to recognise, I have to say, that these are draft National Policy Statements and I quite certainly do not have a closed mind to this issue, but equally the advice I received in looking at the issue would suggest that development in Dungeness would be very, very difficult indeed.

  Q748  Paddy Tipping: But, if it came out on Saturday that it would in fact be possible to mitigate, would you ask Natural England to look at it again?

  Lord Hunt of Kings Heath: I will ask Mr Dawson perhaps to deal with this in detail, but I think probably I have answered your point really, that we do not have a closed mind. If substantive evidence were produced which would suggest that it would be possible to meet the kinds of objections that have been put forward, including the advice received from Natural England, then of course we would consider that. I think I must stress here that we are talking about draft National Policy Statements and I do think that this whole undertaking is one in which we will look very seriously at the comments we receive, but perhaps Mr Dawson—

  Paddy Tipping: No, a statement of principle is fine. We have talked a bit about need and I want us to explore that a bit more.

  Q749  Dr Turner: Philip, we have had a lot of comments about the way in which the NPSs deal with the question of need. Building on what you have just said, you have suggested that the existence of the NPSs would obviate the need for the IPC to go through the sort of angst-ridden considerations whether to have a nuclear station or whatever which have taken up so much time in the planning process in the past. Indeed, the overarching Statement says that "the IPC should expect to receive applications for all types of electricity generation. It should start its assessment of them from a basis that there is significant need for all types of generation". One of the points made by NGOs is that there is sufficient gas-fired generation already in the pipeline to obviate the need, or virtually obviate the need, for any further gas-powered generation. Is there not a risk that, as stated, the NPSs could lead to an over-representation of carbon-intensive generation in the generation mix?

  Lord Hunt of Kings Heath: Well, I understand the point that is being put here and it is sometimes described as the `dash for gas'. The concern is that, although we have policies that are very much about having diversity of energy generation and wanting to see renewables, new nuclear and indeed coal-powered with CCS, the investors will simply go for gas and that that will make it very difficult for these other energies to come forward. Let me say at once that, if the Government saw evidence that that was the case, then I believe the Government would need to intervene, and it would be the role of Government to make sure that the market was responding in an appropriate way in order to meet our overriding energy policy. It is not, I think, for the IPC to take on that role because it has been suggested that the IPC might set arbitrary limits on the development consent they would give for each technology. I am confident that we have the right mechanisms in place to see the development of renewable energy generation alongside new nuclear and carbon capture and storage. I think we should also recognise that gas does have a role to play. It has an important role to play now and you could argue that gas is, in a sense, part of the transition, that it enables us to make the transition from where we are now to where we want to be in the future and, I have to say as Energy Minister, I believe one of my most important roles is to ensure that in the North Sea, the UKCS, we continue to exploit our oil and gas reserves there and to make sure that the decline happens as slowly as possible because gas does have an important role to play in the future, but I understand the fear about the `dash for gas' and I can assure the Committee that, if it became apparent that the fears which have been expressed by the NGOs looked like it was coming about, then of course we would need to look at interventions.

  Q750  Dr Turner: But, since the NPSs are basically a statement of government energy policy and the government energy policy is that we should have 30 per cent of electricity from renewables, et cetera, it is not really reflected on the face of the NPSs. The suggestion has been made that the NPSs should at least indicate a hierarchy of desirability of different types of generation, which could well be a consideration, and, if the IPC is considering a raft of applications, three of which are renewable and two of which are carbon-intensive, then the NPSs would have a very clear steer about which was more desirable.

  Lord Hunt of Kings Heath: I would be very, very wary of going down that route because essentially, it seems to me, that would bring the IPC into the arena of policy-making. I believe that it is Government's role to do that. The IPC has to take each planning application on its merits and not, if you like, make value judgments about whether one particular energy technology is deemed to be better than another. I do think that that must be for Government to make sure that we have sufficient interventions and incentives so that we get the right mix. I would also say that I understand the hierarchy approach, and others have suggested that you set a sort of gigawatt per energy technology limit for the IPC to give consent up to, but there are two points about that. First of all, even though they give consent, you do not know with absolute certainly that that development is going to take place. Secondly, I think I would argue that you might put undue pressure on the IPC if, for instance, you are almost setting a quota. Would that not be undue influence on the IPC to give consent where it might not be appropriate to do so? Surely, it is better for the IPC to judge each application on its merits. It is for Government; we set the policy on energy and, if we find that the applications that are being made, looking at the mixture of technologies, do not look as though they are going to meet our low carbon requirements or energy security requirements, then it is up to Government to intervene. We are doing pieces of work at the moment looking ahead to the kind of technology mix and requirements on energy going up to 2050, and we are also doing work looking at the market, which is called the `energy market assessment', where again we hope to produce preliminary work on this at the time of the Budget, very much looking at whether we have got the right levers, do we need more levers, but I do think that that must be the role of Government and Government must accept responsibility for this.

  Q751  Dr Turner: I do not think anyone is suggesting rigid quotas or anything like that, but it would have a role to express some provision for hierarchy, especially if you consider the relationship between the IPC and, as the statutory consultee, the Committee on Climate Change, which is in a position to advise the IPC on the relationship between the carbon intensity or otherwise of a given application and the progress of carbon budgets so that in fact, between the NPS and the Climate Change Committee, the IPC could be given a very clear and dependable steer so that they would not be placed in an invidious position.

  Lord Hunt of Kings Heath: I know, Mr Tipping, why there should be interest in trying to give steers to the IPC on this, but I think that it would be unworkable. I think it would be invidious for the IPC to have what, in effect, would be value judgments between different technologies, and I do not think it is what the IPC itself would want to do. It is very, very important that they have clarity that their job is to receive each planning application on its merits, that they make their decisions in relation to the impact assessment and all the other assessments they are required to make, but, if you were to actually say to them, "In addition to that, you, the IPC, have to ensure that the energy mix is right according to government policy", I think that takes them out of that independent view in relation to planning consents and they would become much more a kind of operational arm of Government in deciding whether a particular application should be allowed or not. I think it is very important that Government accepts responsibility for this. There will always be argument about whether we have got the right policies and the right interventions, but it is right that the Government should bear that responsibility.

  Q752  Dr Turner: But, having set up the NPS mechanism and the whole new planning system, the Government has put this at arm's length, so the Government has deprived itself of the ability to intervene if it wishes to, so, if the Government wishes to make sure that climate change mitigation is considered as a very important factor in assessing need, how is it going to do it?

  Lord Hunt of Kings Heath: Well, in a sense, we are sort of repeating some of the debates about the planning legislation in the first place. I think it was right, first of all, to ensure that with these major planning applications in future the debate locally should not be about whether it was right that you had a particular technology and that falls to Government because on energy policy the Government has to set the framework for the way in which the energy market, the energy infrastructure and the energy supply, is going to be developed. When it comes to planning applications, surely the planning body must deal with those on the basis of the merits of that application. Now, the question then is: does Government have enough interventions? Now, I think the question there is that we think that we have developed a series of policies which do ensure that we get the right energy mix, but I am not at all complacent about that and that is why we are doing this work on the energy market assessment to make sure that, as we go ahead, if we need further interventions, we will take them, but it is our responsibility.

  Q753  Paddy Tipping: I think, Phil, that is an issue that we will come back to talk to you about at a later date, about how far the framework is strong enough, the role of Government, and the new Ofgem Report, Project Discovery, says some interesting things about that.

  Lord Hunt of Kings Heath: Certainly, it is interesting that Ofgem, whom I have always seen as the apostle of the free market, have now decided that government intervention is required. Clearly, we are looking at the Ofgem Report and in fact it was very helpful to us in terms of the energy market assessment that we are doing.

  Paddy Tipping: We have begun to talk about the role of the IPC in terms of carbon budgets and carbon accounting, so let us pursue that a bit further.

  Q754  Mr Weir: We have had conflicting evidence, I suppose, about what the role of the IPC should be in respect of carbon budgets and, in particular, should they have a role in assessing the cumulative carbon emissions arising from their consenting decisions. What is your view on that?

  Lord Hunt of Kings Heath: No, I think they should not. My argument is exactly the same as my response to Des Turner, which is that, if the IPC is making essentially a value judgment in terms of looking at the carbon emissions of each proposed application, I think it becomes rather more than a planning body; it is bringing itself into making, if you like, energy policy decisions. It is for us, the Government, to do that. Our job is to make sure that the market, the interventions, the subsidies through renewables and all the other interventions that we have produce the right result in terms of energy policy and energy outcome. I think it really does confuse the picture if you give to the IPC a wider responsibility, and I think for developers it will create a great deal of uncertainty in terms of what process do they have to go through in order to get planning consent. I am also very wary of taking responsibility from the Government when I am clear that energy policy is our responsibility and we properly should be held accountable for that.

  Q755  Mr Weir: How would the Government deal with the situation when the IPC is purely looking at developments from a planning point of view, not as to the type of generation and the carbon emissions from that? There must be a danger that the wrong type of developments are put forward by developers. The Government is going to have to step in at some point and, I do not know, would you call in a certain development or stop a certain kind of development? There must be a point where you would have to take an interest or take action if the wrong type of developments were going through the IPC.

  Lord Hunt of Kings Heath: Well, quite clearly, the question of development of energy infrastructure is of close interest to Government and, clearly, we take a very close look at how developments are taking place and ensuring that the cumulative output meets the kind of mix that we want to see. What are the kind of interventions that can take place? Well, clearly, as a lot of this is around the kind of subsidies that are available, if we talk about renewables, we have recently seen the impact of introducing banding for the Renewables Obligation. The result has been a very, very successful licensing round in terms of offshore wind, and I think that is a good example of how an intervention can actually ensure that you meet the policy objective. The work that we are doing on the energy market assessment is looking at whether there are other interventions that need to take place, how can we ensure that the investment that is likely to be required over the next 20/30 years is going to come about, but I do not think we should use the IPC to be part of that process. If the National Policy Statements themselves look like they are not fit for purpose, then of course they can always be reviewed and withdrawn, these are not set in stone for decades to come, so I am satisfied that we will have the necessary ability to influence what is happening to make sure we get the right technology mix, but I do think that trying to give the IPC a kind of additional responsibility to essentially manage energy policy, which is what this would do, I would be very wary of going down that path, and I think the IPC would too.

  Q756  Mr Weir: What about the interaction between the IPC and the Committee for Climate Change? Will the Committee have a role in advising the IPC on this matter of stepping in in any way should they be concerned about the way that the generation capacity is developing?

  Lord Hunt of Kings Heath: I think it is entirely appropriate for the Committee on Climate Change to comment on what is happening in relation to energy policy, where they think things are going wrong, where they think they are going right and making suggestions to Government about what interventions they might make. That is what the Committee is doing at the moment and I have no doubt that, if they wish to comment on the planning process, they will be well able to do so. What again I would be wary of is the Committee for Climate Change being asked to actually make comments on an individual planning application; I do not think that that is the Committee's remit. In terms of, as you know, the Committee on Climate Change, it has had enormous effect in terms of advice to Government and, I am sure, will continue to do so, but again surely, rather than commenting on a specific application, it would be much more looking at what is happening in relation to the energy mix, whether we are likely to meet our climate change targets and, if we are not, then that would be the alert that they would be giving to Government and to Parliament, and it seems to me that that should be their role. I am very clear here that the IPC itself is not in itself an instrument of government policy in relation to energy; that is not its role. There is a real worry that we get into a sort of grey area here where people are not clear about what the IPC is there to do.

  Q757  Mr Weir: I understand your point, but the overarching NPS is supposed to be a statement of government policy. Now, should there not be, whether it is the Committee on Climate Change, someone looking at the way that the IPC is operating? The IPC, from what you are saying, is operating purely on a planning basis, and we understand why, but the planning decisions of the IPC will have a significant impact on the development of a type of generation and surely there must be someone having a look at that to make sure that that is fitting within government policy for climate change and carbon reduction?

  Lord Hunt of Kings Heath: Well, I think that is for Government, is it not?

  Q758  Mr Weir: But who is going to do it? Surely, there must be someone to give them a steer there and say, "No, you can't keep giving permission for this type of generation because it is leading to an imbalance"?

  Lord Hunt of Kings Heath: Well, I do not think that is how it would work because I certainly think that Government should be doing that. Other organisations, I am sure, will as well and in fact I suspect that every decision made by the IPC is going to be clawed over. Clearly, stakeholders, pressure groups and parliamentarians are going to be looking at the cumulative impact, so I am not at all worried that there will not be a very close eye kept on the IPC decisions and the cumulative impact. I still think you come back to the issue where, as a result of those decisions, and of course those decisions are only made as a result of applications being brought forward by developers, if one gets a view that the kinds of interventions and incentives that are in place at the moment are not producing the energy mix that we require, then it must come back to Government to look at the interventions and to see what else needs to happen. Equally, if it became clear that there were gaps in the National Policy Statements or problems, then again you have got the process of suspension or withdrawal, so you do have those mechanisms as well, so I understand what you are saying, but it does seem to me that there will be a lot of monitoring of what the IPC does. The Government itself has every interest in ensuring that its own policies get us the energy mix we require because the Committee on Climate Change, which is a statutory consultee in relation to the National Policy Statements, of course, if it reports in the future on our energy mix and any concerns it has, Government will listen to it.

  Q759  Paddy Tipping: Can I just ask you to comment on some evidence that the IPC gave us, and let me just read it out to you: "Consideration of climate change impacts is likely to form an important part of the IPC's examination of proposed energy nationally significant infrastructure projects, and commissioners must consider all relevant evidence submitted". The IPC thinks it has got to look at carbon effects.

  Lord Hunt of Kings Heath: Can I ask Ms Stuart to answer that.

  Ms Stuart: I think there are two aspects here. It is very obvious and, I think, very clear on the face of the NPSs that we do expect the IPC to take a very serious interest in climate change adaptation. With everything they consent, they have to actually consider the impacts of not merely what would happen at present levels, say, of flood risk, but what would be the predicted climate change impacts, so I think yes, they have got a very clear interest and a very clear mandate to be interested in climate change and I would not expect them to be ignoring it. They also have an interest in, for instance, the emissions of power stations, and obviously one of the emissions to air is carbon dioxide and other things and they will take an interest in that. I think what I would be very wary of is saying to them not merely, "You can't consent an individual power station if it reaches a certain level of unacceptability", but we have obviously said to them, "You cannot give consent to a coal-fired power station that does not have a CCS demonstration", which is a climate change issue. What they are not being asked to do is say, "We can't give consent to this power station because we consented that one previously" or "because we know another application is coming along". What we are trying to make them do, and what I think they want to do, is to focus on the application in front of them and make a decision on the acceptability of that application.

  Lord Hunt of Kings Heath: I must say, I think that you have to draw a distinction between the sort of climate change impacts, so, if you have a generator that is by the sea, you have to look at what the impact of a rise in sea levels would be. I think that is rather different from looking at what gigawatts it has and what technology. The IPC are trying, through planning decisions, to meet the kind of mix that we want to see, and that is the distinction that I would draw there.


 
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