§ 4.24 p.m.
§ THE PARLIAMENTARY SECRETARY, MINISTRY OF TECHNOLOGY (LORD SNOW)My Lords, with permission, I should like to repeat a Statement which has just been made by my right honourable friend the Minister of Technology in another place. It is as follows:
§ " The Government have decided that the Capenhurst plant of the Atomic Energy Authority should be modernised and reactivated so that it may supply enriched uranium for the manufacture of fuel for the second nuclear power programme.
§ " Owing to a decrease in the demand for enriched uranium for military purposes and because at that time the civil demand was very small, it was decided in 1962 that production of high-enriched material for military purposes should cease and that of slightly enriched material for civil use be reduced to the minimum level needed to maintain gaseous diffusion technology. This decision was implemented by the end of 1963.
§ "'The House will recall that an Advanced Gas-cooled Reactor of British design has been adopted for the Dungeness ' B ' station which is the first in the second nuclear power programme of 8000 MW by 1975.
§ " A.G.R. fuel is made from slightly enriched uranium oxide. For a programme of the size indicated the requirement will rise to several hundreds of tons annually worth many millions of pounds.
§ " The alternative to reactivating the Capenhurst plant would be to purchase enriched material for civil use from the United States. Initially the U.S. price would be lower, owing to the large scale of U.S. production capacity and the low cost of electricity available to their diffusion plants. However, the Atomic Energy Authority have designed modifications to the Capenhurst plant that would greatly improve efficiency of production, and have ad- 419 vised me that the gap between U.S. and Capenhurst prices should narrow progressively during the 1970s.
§ " Other factors had to be taken into account in the examination of the alternatives.
§ " First, since nuclear power is going to meet a steadily increasing proportion of total electricity demand there are obvious disadvantages in complete dependence on a foreign supplier.
§ " Second, United Kingdom production would save imports of some millions and ultimately some tens of millions of pounds per annum.
§ " Third, closure of Capenhurst would mean that Britain could not maintain its expertness in this important field of technology.
§ " Fourth, manufacture in this country will provide the Authority with opportunities to export slightly enriched uranium fuel.
§ " The Government have approved in principle plans involving capital expenditure of about £.13½ million, the first phase of which, to be started immediately, will cost about £7½ million. These plans are expected to meet the initial requirements of the new nuclear power programme. It is envisaged that the plant can be further expanded as requirements increase and decisions will be taken as necessary.
§ " Work will start immediately and the modernised plant will be in operation in sufficient time to supply fuel for the first A.G.R. of the second nuclear power programme, Dungeness 'B' "
THE EARL or BESSBOROUGHMy Lords, we are most grateful to the noble Lord for having repeated the Statement which has been made by his right honourable friend in another place, and we on this side of the House certainly welcome it. It is a most important announcement. I think it was to some extent foreshadowed in the Atomic Energy Authority's Report of 1964–65. I shall not in this case complain too much about delay, although I sometimes do complain about schemes which were already contemplated by us on this side of the House over a year ago. But this is an encouraging Statement, and it is encouraging 420 particularly in regard to exports, as well as to the home requirement. There are only two points on which I would ask the noble Lord for a little further clarification.
On this question of the demand, does he really think that the estimated supply will be sufficient to meet the initial demand, both at home and for exports? This is a very important point. It is indicated in the Statement that it should, but I think some of us feel that the demand in this case might outstrip the supply. This is a point which I think my noble friend Lord Sherfield might have made had he been in the House to-day. The second point is in regard to the cost. We hear that:
The Government have approved in principle plans involving capital expenditure of about £13½ million, the first phase of which, to be started immediately, will cost about £7½ million.Could the noble Lord tell me how far this will, in fact, involve increased costs? That is all. We welcome the Statement, my Lords.
LORD REAMy Lords, from these Benches I should also like to thank the noble Lord for repeating the Statement. There is one question which I would ask him, and it is rather the reverse of that which has been put by the noble Earl, Lord Bessborough. Is it not true that in many cases in this country plants are underemployed? I speak only from hearsay, but I have a feeling that, for instance, the Sellafield and Windscale works are not putting out all the enriched uranium that they are capable of. No doubt there is a balance here, but it seems odd to put the Capenhurst plans into reverse if other plants are not being fully employed. I am merely seeking information. I am in no way critical.
§ LORD OAKSHOTTMy Lords, as one who has known Capenhurst very well for a great many years—it is near the borders of my former constituency—may I add my thanks to those expressed to the noble Lord for the Statement that he has made to-day, and say how glad all the people in that area will be at the reactivation of this great project? Can he say what short-term and long-term effect this is likely to have on employment in that area? He will remember, of course, that this is adjacent to Merseyside, where unemployment is a perennial problem.
§ LORD SNOWMy Lords, there will certainly he some increase in labour, but I must not lead the noble Lord to think that it will be rather large in the immediate future. It is hard to estimate when the thing is in full capacity. I shall have to write to the noble Lord, Lord Rea, about Windscale, as this involves certain rather delicate considerations.
§ LORD SNOWThat is not the point, if I may suggest it to the noble Lord. It is in fact that there are certain things which involve matters not quite germane to this discussion. As to the question raised by the noble Earl, Lord Bessborough, we are confident that the supply can be increased to meet any foreseeable demand. It is a little like a child's blocks of bricks. The first £7½ million is one block, the next block of this programme is the second block, and you can add the third block just as easily as you can the second. This is sound engineering, and has been very carefully considered.