HC Deb 11 March 1957 vol 566 cc781-3
16. Mr. A. Roberts

asked the Paymaster-General if he will put out the building of the proposed new nuclear power stations to open tender.

Mr. Maulding

The tendering for the building of nuclear power stations is a matter for the electricity authorities. I understand, however, that they intend to place contracts on the basis of the widest possible competition.

Mr. Warbey

Has not the production division of the Atomic Energy Authority very great and successful experience in the field of construction of nuclear power stations, and should it not be encouraged to tender?

Mr. Maudling

It is a matter for the Electricity Authority to ask whom it wishes to put forward offers, basing competition on the groups that are available and are in the market for the manufacture of these projects.

Mr. G. R. Strauss

Will not the Ministry of Works be able to build these stations, as in the past? Will it be able to tender? In the past it has built all the atomic energy stations.

Mr. Maudling

This is quite different. We cannot talk about building large, commercial nuclear power stations on the basis of what has happened in the past, because this has not happened in the past.

Mr. Roberts

Can the Minister state the number of contractors that are able to deal with the programme outlined by the Minister in the building of these stations?

Mr. Maudling

There are, I think, four groups in existence at the moment, and others are being formed. That will be sufficient to make a very active range of competition for the construction of these stations, remembering that we are starting on a completely new industry on a very large scale.

24. Mr. Palmer

asked the Paymaster-General what action will be taken to ensure that contracts for plant and equipment in connection with the expanded nuclear power programme will be awarded to manufacturing firms under genuinely competitive conditions.

Mr. Maudling

I am satisfied that at present no action is called for in this matter.

Mr. Palmer

Would the right hon. Gentleman take into account the recent Report of the Monopolies Commission on some of the practices of the electrical manufacturing industry in relation to restrictions?

Mr. Maudling

At the present moment tendering for these nuclear power stations is extremely competitive.

Mr. Nabarro

Is it not a fact that the proper resort, were there any ganging up among manufacturers of plant, would be to refer the whole matter to the Restrictive Trade Practices Court under the provisions of the 1956 Act?

Mr. Maudling

As the whole matter is one which is of a highly competitive nature, I think the question of my hon. Friend the Member for Kidderminster (Mr. Nabarro) is rather hypothetical.

Mr. G. R. Strauss

As all the basic atomic energy plants were built by the Ministry of Works——

Mr. Nabarro

No.

Mr. Strauss

It is certainly true that the basic atomic energy plants were built by the Ministry of Works. If there is any difficulty or funny business by contractors, will the Ministry of Works be asked to put in a competitive tender?

Mr. Maudling

I really cannot accept in any way the assumption on which that question is based.

Mr. Bence

In view of the economies taking place and proposed in ordnance factories of the Ministry of Supply, will the right hon. Gentleman impress on his noble Friend that it would be worth while putting a great deal of this programme into the surplus capacity of the ordnance factories?

Mr. Maudling

Any question of work to be done in future by ordnance factories should be addressed to the Minister of Supply.