Sizewell B: Cost Estimate (Hansard, 12 July 1990)

§ Viscount Ullswater
My Lords, Nuclear Electric plc, the company which is building Sizewell B, recently carried out a full review of the cost of the project. My right honourable friend the Secretary of State for Energy has restated the Government's commitment to the project after conducting a full analysis of Nuclear Electric's revised cost estimate. The estimated cost to completion of the project is now £2,030 million in 1987 prices. The estimated cost to completion when the CEGB sanctioned the capital scheme was £1,691 million, also in 1987 prices.

§ Lord Hatch of Lusby
My Lords, has the noble Viscount read the most recent report of the Energy Committee of another place and in particular has he read paragraph 127 of that report? It states: Given the recent history of nuclear power it will never again be possible to take assurances as to the viability of any type of nuclear power on trust". Does the noble Viscount agree with that judgment? If so, what is the value of the figures that he has given this afternoon? If not, how does he claim that he knows better than the work of the Energy Committee in another place?

§ Viscount Ullswater
My Lords, since that project was approved in 1987, the only real cost increase, setting aside inflation, was the 10 per cent. increase announced last autumn. I remind the noble Lord that the 10 per cent. increase at that stage was due to higher than expected costs as the detailed design was finalised. Some measures were brought in by the nuclear inspectorate on the finalised design. Nuclear Electric states, after its latest review, that there would have been no reason to increase again the estimated costs if the November nuclear decision had not been taken.

§ Lord Dean of Beswick
My Lords, is it not a fact that some of the extremely steep increases in the construction of Sizewell B have been brought about by the moratorium imposed on the building of a succession of nuclear power stations? Is it not because of that decision that Sizewell has had to carry a far higher proportion of initial research and development costs than would have been the case if the costs had been divided among the new nuclear power stations?

§ Viscount Ullswater
My Lords, yes. The Government's decision to cancel further nuclear stations means that some costs which would have been 438 spread over the four proposed PWR stations will now fall on Sizewell B. Nuclear Electric's review has taken full account of that.

§ Lord Wade of Chorlton
My Lords, does not my noble friend agree that the nuclear power industry has now been with us for some 35 years—the first nuclear power station was built in 1956 or 1957—and has been the responsibility of successive governments? It is only under this Government that truer information has come to light which has enabled a more efficient operation to be put into place.

§ Viscount Ullswater
My Lords, my noble friend brings out a very valuable point. The nuclear industry has been conducted on a bipartisan basis over the past 30 or more years. In fact, the Labour Party was responsible for the ordering of the AGR stations, and while in power commissioned most of the Magnox stations.

§ Lord Jenkins of Putney
My Lords, is the noble Viscount aware that The Times, in a leader recently, has joined the majority of people who believe that Sizewell B should be abandoned? In view of the fact that last night noble Lords were displaying great affection and appreciation for Mr. Murdoch, will the Government not take very seriously the advice of one of his newspapers?

§ Viscount Ullswater
No, my Lords.

The Earl of Halsbury
My Lords, can the noble Viscount confirm that the cost of nuclear power in this generation includes the cost of writing down to nothing in the books 400 years' supply of depleted uranium which we shall bequeath to our grandchildren and great grandchildren as their future supply, and that this sort of waffle is a complete waste of time?

§ Viscount Ullswater
My Lords, if the nuclear industry continues and we make a fast breeder reactor, our grandchildren will be very grateful for that supply of plutonium.

§ Lord Stoddart of Swindon
My Lords, is the noble Viscount aware that it is not waffle to want to have the truth about the costs of nuclear power? Is he aware that over the past 20 years Parliament, the department and the people of this country have been completely and utterly misled by the CEGB and various commercial organisations as to the real viability of nuclear power and its cost in relation to other forms of energy, particularly energy produced from fossil fuels?

§ Viscount Ullswater
My Lords, nuclear power contributes enormously to the security of supply, and also to help with the cost of cleaning up the environment. That is something which, if we burn only fossil fuels, will cost us a great deal. I see that the noble Lord shakes his head; but the amount of acid rain which has fallen since we have burned all-fossil fuels must be dealt with in some way.

§ Lord Stoddart of Swindon
My Lords, the Minister is not answering the question that I asked.

§ Lord Peston
My Lords, as someone who is pro nuclear, I find it interesting to see that there is no limit to the different arguments invented for nuclear power.
439 Perhaps I can ask the noble Viscount whether the station will be built for £2,030 million? I also ask if there is any amount of money that the station could cost that the Government would not be willing to spend?

§ Viscount Ullswater
My Lords, the £2,030 million is the latest figure, at 1987 prices, for the cost of the station. The station is on target for completion. It is going along at a proper clip, and it will be completed on time.

§ Lord Hatch of Lusby
My Lords, is the noble Viscount discarding the work of the Energy Committee of another place? In addition to the paragraph that I quoted, has he read paragraph 46 which states, we are convinced that there has been a systematic bias in CEGB costings in favour of nuclear power"? Under this Government, that statement has been given in evidence to public inquiries. The figures were a complete fraud and are exposed as a complete fraud in this report. Is the Minister discarding all the work done by the Energy Committee of another place?

§ Viscount Ullswater
Of course not, my Lords. The Question on the Order Paper related to the cost of building Sizewell B and not the cost to which the noble Lord refers. I have given the latest cost for the building of Sizewell B. I repeated that to the noble Lord, Lord Peston. Those are the figures.

The Earl of Halsbury
My Lords, can we dismiss the word "fraud" as nonsense and pass to the next business?