HC Deb 14 February 1996 vol 271 cc1000-1
9. Mr. Beith

To ask the President of the Board of Trade if land at Druridge bay, Northumberland, owned by Nuclear Electric, is to be released for sale. [13511]

Mr. Page

The land held by Nuclear Electric at Druridge bay is to be assigned to Magnox Electric, and will therefore be staying in the public sector.

Mr. Beith

Will the Minister convey to his right hon. Friend the Minister for Industry and Energy my appreciation of the fact that he decided not to release the land to Nuclear Electric's successor, British Energy? Does he recognise, however—given the 40,000-signature petition that we took to the Department—that local people want the land to be taken entirely out of the hands of the nuclear industry? I am sure that the Minister would not want the industry to remain nationalised indefinitely, but I think that he would want it to be made clear that that will not be the site of a nuclear power station.

Mr. Page

The right hon. Gentleman has been prominent in the campaign to retain the site in the public sector. I shall pass on his good wishes to my right hon. Friend the Minister for Industry and Energy. The settling of the terms on which Magnox Electric will hold Druridge bay will start shortly; those working on the site will be consulted, and I hope that a satisfactory solution will be achieved.

Mr. Atkins

Does my hon. Friend recognise that the nuclear industry plays a significant part in the operation of our economy—not least in Lancashire, where British Nuclear Fuels Ltd. employs a large number of people, and has been so successful that it is about to provide 100 new jobs in the Lancashire area? That demonstrates yet again that our policies work, unlike those of the Labour party.

Mr. Page

My right hon. Friend makes the point that privatisation will be valuable to the nuclear industry, just as it has been to many other industries. I confidently expect that there will be more jobs and expansion, and that Nuclear Electric will provide a stimulus and competition for other power generators.

Mr. Battle

Does the Minister agree that the Government's proposals to privatise the nuclear industry are increasingly being exposed as a bad deal for the taxpayer? Is this not proving to be a closing-down sale that will cost the country billions? Moreover, it cannot be assumed that a Labour Government will pick up the tab for unknown nuclear liabilities if the assets are stripped. Is not nuclear privatisation likely to prove even more disastrous than the Government's botched attempts to privatise British Rail? It is clearly not in the public interest. Will the Government call it off?

Mr. Page

I can give a short answer to that question: certainly not. We will not call off the privatisation. As I have said, I expect it to raise substantial sums for the taxpayer, and it will free the industry to make its own decisions. As for the liabilities, I know that a segregated fund will be established to ensure that long-term decommissioning liabilities will not fall on the taxpayer by default.