Nuclear Energy: Review (Hansard, 29 March 1994)

§ The Minister of State, Department of Trade and Industry (Lord Strathclyde)
My Lords, considerable preparatory work on the review of the future prospects for nuclear power in the United Kingdom has already been done. The Government will make an announcement about the terms of reference and how the review will be conducted as soon as possible. Noble Lords will appreciate that I cannot prejudge the terms of reference.

Lord Campbell of Croy
My Lords, I am grateful to my noble friend for his reply. Does he agree that decisions are needed soon to prevent British expertise being dispersed or lost to our country? Although nuclear generation involves decommissioning and capital costs, should not the financial benefits of reducing air pollution and greenhouse gases also be taken fully into account?

§ Lord Strathclyde
My Lords, I am sure that those are exactly the kind of views that will be taken into account when the Government have decided the exact terms of reference. My noble friend is right: it is a review that we wish to deal with sooner rather than later.

§ Lord Peston
My Lords, did I hear the Minister aright when he stated that the terms of reference for the review have not yet been determined? Will he then tell us why it has taken the Government so long even to think up the terms of reference? It is not that difficult; I could help him.

§ Lord Strathclyde
My Lords, I am delighted to accept the help of the noble Lord. The ultimate result may not be entirely what he has in mind, but I have never spurned his help in the past and I certainly shall not do so in this case.
The noble Lord is right. We have not yet issued the terms of reference. We are still consulting the various interested parties as to what those terms should be. As I said in my original Answer, considerable preparatory work has already been done but we still need to do a little more.

§ Lord Bridges
My Lords, will the Government confirm that it is their intention not to approve the construction of another nuclear power station until the nuclear review has been completed?

§ Lord Strathclyde
My Lords, in broad terms, and given the time that it takes to give approval to new nuclear power stations, I think that the noble Lord can take that as read.

§ Lord Skelmersdale
My Lords, has my noble friend registered the fact that the nuclear fuel industry in this country believes that it no longer needs the fossil fuel levy to pay for decommissioning costs? Therefore the 979 price of electricity costs for all of us would come down substantially. Will that factor be included in the terms of reference for the review?

§ Lord Strathclyde
My Lords, if my noble friend can contain his impatience for a little longer, I believe that he will find the answer to that question when we finally announce the terms of reference.

§ Lord Jenkins of Putney
My Lords, the noble Lord, Lord Campbell of Croy, expressed gratitude for the Minister's Answer. He was asked to give a timetable. Can the Minister come forward with nothing? Can he not give a prognostication of any kind, whatever name he gives to it?

§ Lord Strathclyde
My Lords, the noble Lord asks for a prognostication. I have given my answer in the best way possible. If that does not give the noble Lord satisfaction, I am very sorry.

§ Viscount Mersey
My Lords, can my noble friend at least give a prognostication on the likely start-up date for the building of the nuclear power station, Sizewell C? Does he agree that if we do not have that power station we shall be largely dependent on coal by 2020 AD?

§ Lord Strathclyde
My Lords, I regret to say to my noble friend that that point strays somewhat from the Question on the Order Paper. These are issue which will have to be dealt with one way or another in the future when we make an announcement about the review.

§ Lord Dormand of Easington
My Lords, the review referred to must necessarily take into consideration the amount of energy produced by the coal industry. Will the Minister confirm, for example, that we shall be lucky to have 10 pits left after the present review? Is it not now obvious that the Government must consider their policy towards the coal industry on the basis, first, of the security of the supply of coal, and, secondly, the fact that coal is now cheaper than nuclear energy and any other forms of energy produced? Is it the Government's intention to consider their policy?

§ Lord Strathclyde
My Lords, we have reviewed our intentions towards the coal industry. The noble Lord will be delighted to hear that very soon in this House we shall discuss in some detail the future of the coal industry under the terms of the Coal Industry Bill.

§ Lord Ezra
My Lords, the noble Lord, Lord Dormand of Easington, raises the issue of how wide ranging the inquiry will be. Although the Minister cannot tell us in advance the terms of reference, does he at least accept that, unless the review is fairly wide ranging, and not too narrowly related to the nuclear industry, it will serve little purpose?

§ Lord Strathclyde
My Lords, it is those kinds of issues that we are discussing within government before we can come forward with the terms of the review.

Lord Campbell or Croy
My Lords, while renewable sources can make a modest contribution to 980 our supplies of energy and should be encouraged, are they not restricted by factors of aestheticism and environment? For example, there are strong objections to a massive increase in wind farms.

§ Lord Strathclyde
My Lords, yes, it is important to recognise that there are a number of environmental considerations, not simply relating to wind farms but also to the nuclear industry and many other parts of the energy-creating industry of which Government need to be aware.

§ Lord Williams of Elvel
My Lords, the noble Lord has not answered a single question about the review in 1994 of energy from nuclear sources. He has said that there are no terms of reference. He has not said what kind of review it will be or what evidence will be taken. Is the noble Lord aware that the Government are committed to that review in 1994? If they are committed, he had better get a move on.

§ Lord Strathclyde
My Lords, I am surprised by the noble Lord, Lord Williams of Elvel. I thought that I had answered all the questions rather well and made the Government's position absolutely plain.