HL Deb 13 December 1985 vol 469 cc459-60
Lord Stoddart of Swindon

My Lords, I beg leave to ask the Question standing in my name on the Order Paper.

The Question was as follows:

To ask Her Majesty's Government what is the value of contracts so far placed and what expenditure has been incurred to date by the Central Electricity Generating Board in connection with the proposed building of a pressurised water nuclear power station at Sizewell.

Lord Brabazon of Tara

My Lords, I am advised that contracts placed to date for Sizewell B amount to £440 million. Of this, less than £100 million is for preparatory design work which is proceeding. The balance of £340 million is for manufacture and supply which will proceed only if the project receives consent. To the end of November 1985 the Central Electricity Generating Board had incurred expenditure of £172 million covering essential design and development work to prepare the safety case and enable a prompt start on site if consent is granted for the project to proceed.

Lord Stoddart of Swindon

My Lords, I should like to thank the noble Lord for that very full Answer to the Question. Would he agree that these sums of money are quite enormous? Is he aware that a great deal of concern is being expressed that the CEGB is anticipating the result of the inquiry which, I understand, is likely to be delayed? Can he further explain to me and to the House just exactly what would happen in relation to these hundreds of millions of pounds if by chance the inquiry came down against the project? Would that money be written off, or what would happen?

Lord Brabazon of Tara

My Lords, as I said in my original Answer, the amount of money I specified of £340 million is subject to the project receiving consent, so if the project did not receive consent, that money would not be spent. On the other point that the noble Lord mentioned—that is, the enormous sums of money and the concern that it could be wasted—it is inevitable in such situations that where any company is going for a contract some money will be spent on preparatory work without necessarily being known that that contract will go ahead. Regarding the timing of the inquiry, the latest information I have is that the inspector has informed my right honourable friend the Secretary of State that he now expects to deliver his main recommendations in the spring of 1986.

Baroness Gardner of Parkes

My Lords, in view of the article in the journal of the Institution of Mechanical Engineers which quoted Mr. John Baker as saying that the CEGB was already committed to spending over 90 per cent. of the total station cost with British manufacturers and suppliers, am I to take it from the Minister's earlier Answer that that is a commitment to buy British rather than a commitment to spend that 90 per cent of the money? From his earlier answer is it clear that the money will be spent, as he said, only if the inquiry result is favourable?

Lord Brabazon of Tara

My Lords, my noble friend is quite correct. The figure I have is that some 93 per cent. of the total cost of the project would be for contracts placed in this country. However, that would depend upon the project going ahead.

Lord Bruce of Donington

My Lords, the amount that the noble Lord has mentioned in connection with the cost of preliminary work seems to be very large indeed. Can he give the House some particulars (or will he do so on some future occasion, if he finds it more convenient) as to how this enormous sum of money has been spent? Can he asssure the House that no further sums will be expended or committed on preliminary work because it is yet uncertain as to how far this preliminary work will result in the materialisation of the project.

Lord Brabazon of Tara

My Lords, I should be happy to try to give an analysis to the noble Lord at some stage, perhaps in a letter, of how this money has been spent so far. As I have said, most of it is involved in preparatory design work. There has been only one physical contract for £12 million. As for the future, that will depend entirely upon the results of the inquiry.

Lord Stoddart of Swindon

My Lords, I am 263 sorry to come back on this, but can the Minister confirm that the amount of money which will be expended and written off will amount to about 15 per cent. of the total estimated cost of the construction of the whole power station? Can he say whether, if that money has to be written off, the electricity consumers or the Government will pay?

Lord Brabazon of Tara

My Lords, obviously if the project did not go ahead, that money would be written off, but this is a matter for the commercial judgment of the CEGB. They realise that it is important to get some work done at this stage. It is a risk that they have taken. It would be a matter for them to find this money. If I am wrong on that, I shall certainly let the noble Lord know.

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