HC Deb 06 December 1995 vol 268 cc360-1
10. Mr. Clapham

To ask the President of the Board of Trade what plans he has to bring the date for privatisation of the nuclear industry forward. [2608]

Mr. Lang

The privatisation of the nuclear industry remains on track for the summer of 1996.

Mr. Clapham

I am pleased to hear that the Secretary of State is not bringing forward the date of privatisation of the nuclear industry. However, is he aware that the proposed two nuclear companies will provide 24 per cent. of the United Kingdom's electricity and that that will all be base load electricity which will be bid into the pool at zero? Therefore, those companies will be in an advantageous position if they are allowed to diversify into gas. If they do diversify into gas, their gas units will compete not with their nuclear capacity but with other gas units and other coal units, possibly pushing coal further down the grid. In such a situation, will the Minister ensure that there are restrictions on the new nuclear companies to provide only nuclear generation, or will they be free to distort the energy economy?

Mr. Lang

I cannot give the hon. Gentleman the undertaking that he seeks. This is a competitive industry and it is important that, both domestically and industrially, electricity is supplied at the most competitive price available.

Dr. Michael Clark

While we are discussing the nuclear industry and privatisation, would my right hon. Friend care to comment on the significant contribution of the late John Collier, latterly chairman of Nuclear Electric, and his significant contribution during many years to the nuclear industry in general and the privatisation of that industry in particular?

Mr. Lang

I am grateful to my hon. Friend for giving me the opportunity to pay tribute to the late John Collier, who served Nuclear Electric with great distinction and who worked extremely positively towards the nuclear privatisation and the successful future of that industry to which we all look forward. He will be sadly missed.

Mr. Hardy

What public liabilities will continue after privatisation of the nuclear industry?

Mr. Lang

I think that the hon. Gentleman knows that the Magnox liabilities will be retained with the Magnox stations, and the other liabilities will pass into the private sector with the nuclear stations.