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British Energy plc

The Parliamentary Under-Secretary of State, Department of Trade and Industry (Lord Sainsbury of Turville): My right honourable friend the Secretary of State for Trade and Industry (Ms Hewitt) has made the following Written Ministerial Statement.

The Government have agreed to a request from British Energy plc to extend the long stop date for completion of the company's restructuring plan beyond 31 January 2005.

In granting this extension, the Government considered their overarching objectives of nuclear safety, security of electricity supplies and value for money for the taxpayer and consulted with the Health and Safety Executive's Nuclear Installations Inspectorate. The Government continue to believe that the company's restructuring plan is the best means of ensuring these objectives. Therefore, in the light of the intermediate milestones set out in British Energy's announcement of 30 November 2004,
 
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the Government have agreed, subject to two conditions, to extend the long stop date in the government restructuring agreement for a period of three months until 30 April 2005.

In the context of meeting their overarching objectives at this time, the Government believe that continuity and stability in the management of British Energy's business in the immediate future is desirable. We have also sought and received assurances from British Energy's management that any measures taken to manage the group's working capital will not adversely affect safety or security of supply. The extension is therefore subject to conditions relating to those two issues.

As I have said previously, contingency plans remain in place to ensure safety and security of supply if the restructuring plan fails for any reason and British Energy decides administration is the only option.

Air Depth Support

The Parliamentary Under-Secretary of State, Ministry of Defence (Lord Bach): My right honourable friend the Minister of State for Defence (Mr Adam Ingram) has made the following Written Ministerial Statement.

Following the announcement on the 16 September of my preferred option for future military aircraft support and the end of the trade unions' consultation period, I am announcing my decision to implement the preferred option.
 
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This will mean that the support for the Tornado GR4 aircraft will be concentrated forward to the main operating base (MOB) at RAF Marham; with the work on Tornado F3 aircraft remaining "as is" with support being carried out at both the MOB and DARA St Athan until the aircraft's out-of-service date. Depth support for Lynx, Chinook and Sea King will be concentrated backwards to DARA Fleetlands.

This decision is based on comprehensive analysis which was carried out on an objective and impartial basis, and offers the best outcome for defence in terms of operational effectiveness and value for money. It does, however, have implications for our military and civilian workforce, as well as for our partners in industry who undertake depth support of military aircraft.

At the time of the announcement, it was made clear that the Ministry of Defence would explore with other government departments, including the Welsh Assembly and the Wales Office, alternative options for the viable and economic use of St Athan after 2009, based on its transformation into an aerospace centre of excellence. Officials from my department, along with DARA senior management, have already had meetings with Welsh Assembly and Wales Office staff to explore possible options, and have agreed a strategic approach for taking this forward as a matter of urgency.

Implementation of the decision will be taken forward by the Chief of Defence Logistics—as the process owner for defence logistics—and responsible for the programme to deliver the changes to air depth support. Detailed consultation with the trade unions on the implementation of the decision will be taken forward.
 
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