HC Deb 23 November 1987 vol 123 cc11-2
13. Mr. Heathcoat-Amory

To ask the Secretary of State for Energy what proportion of electricity will be generated by nuclear means by 2000 on present projections.

Mr. Michael Spicer

On the basis of present plans, the industry projects that nuclear will comprise almost 20 per cent, of electricity generating capacity in the year 2000.

Mr. Heathcoat-Amory

Does my hon. Friend agree that that is a small proportion, bearing in mind the conclusion of the Layfield report, which showed that modern nuclear power stations had considerable cost advantages over coal-fired power stations, even assuming that coal could be bought in at world prices? When he designs his measures to denationalise the electricity industry, will he do it in such a way as not to prejudice the expansion of the nuclear power industry?

Mr. Spicer

It is certainly true that on the latest figures, on 1987 prices, Hinkley Point generates electricity at 2.82p per kilowatt hour, whereas the latest Drax figures are 3.03 per kilowatt hour. As I have already told the House, we shall ensure that the nuclear industry has a thriving place in the privatised industry.

Mr. Campbell-Savours

Will the Minister congratulate the former Labour Government on bringing in the Thorp project and announcing the original order for the reprocessing of nuclear fuel in the United Kingdom? Will the Minister give me an assurance that insofar as the contracts for reprocessing for foreign countries provide for the return of nuclear materials to those countries, no unreasonable obstruction is put before British Nuclear Fuels Ltd. in the exercise of those contracts, which are important money-makers for the county of Cumbria?

Mr. Spicer

I have no hesitation in answering yes to both those questions. The only qualification that I would make is to ask the hon. Gentleman whether his other hon. Friends would likewise congratulate the previous Labour Government on their decisions.

Mr. Colvin

Will my hon. Friend confirm that nearly two thirds of France's electricity is now generated by nuclear power stations? Does he notice any inconsistency in the suggestion of the Liberal party that we should buy our surplus electricity needs from France when coupled with that party's call for the phasing out of all nuclear power stations?

Mr. Spicer

There is certainly an inconsistency in that. When 1992 comes, the fact that the French are producing electricity so cheaply through nuclear power will cause other countries in Europe, especially West Germany, to worry about the importation of cheap French nuclear-generated electricity.

Mr. John Garrett

What does the Minister say to the International Energy Agency's statement that Britain has no energy policy, and to its observation that the Government steadfastly refuse to forecast their use of nuclear power?

Mr. Spicer

The Government certainly do have an energy policy, and we shall spell it out in the months to come. I have already said that the Government are committed to the future of the nuclear industry and have today given the figure of 20 per cent, for the industry's forecast. That remains the Government's position.