HC Deb 18 June 1996 vol 279 cc455-6W
Mrs. Beckett

To ask the President of the Board of Trade, pursuant to his answer to the hon. Member for East Lothian (Mr. Home Robertson) of 30 January,Official Report, column 657, and the Government's reply to the second report of the Trade and Industry Committee, Session 1995–96, HC 383, on nuclear privatisation, what is the division of third-party liability for British Energy between the operator and public funds; what is the extent of the liability for compensation from public funds; which other private industries are liable for compensation to be paid out of public funds; and what plans he has to establish the maximum liability of the private operator at 300 million special driving rights. [32502]

Mr. Lang

[holding answer 11 June 1996]: Under the Nuclear Installations Act 1965, as amended, the third party nuclear liability of a licensed nuclear operator is limited to £140 million per incident. The Act requires the operator to make provision, through insurance or other means, as approved by Government, for sufficient funds

Date SWIDB members Applicant Assistance applied for £ Assistance offered £
27 March 1990 Kenneth Holmes South West Farm Processors Ltd. 250,000 200,000
26 June 1990 Roger Harris Felix Engineering Ltd. 175,000 175,000
19 March 12991 Michael Knight Western National Ltd. 210,000 210,000
25 June 1991 Roger Harris Redruth Brewery (1792) Ltd. 200,000 200,000
26 November 1991 Roger Harris ROM-Data Corporation Ltd. 750,000 750,000
31 March 1991 Roger Harris and Graham Stirling Barden Corporation (UK) Ltd. 320,000 320,000
27 October 1992 Roger Harris Fibre Data Group Ltd. 220,000 220,000
23 February 1993 Roger Harris Pendennis Shipyard (Holdings) Ltd. 350,000 350,000
27 July 1993 Roger Harris B and S Screw Machine Services Ltd. 750,000 750,000
30 November 1993 Roger Harris Falmouth Oil Services Ltd. 925,000 850,000
Roger Harris Porthcurno Management Company Ltd. 500,000 500,000
Roger Harris Rittal-CSM Ltd. 250,000 250,000
21 December 1993 Roger Harris Omitec Thin Films Ltd. 250,000 222,000
26 January 1994 Roger Harris Wrafton Laboratories Ltd. 500,000 450,000
23 February 1994 Roger Harris Roach Foods Ltd. 750,000 750,000
23 Marach 1994 Roger Harris and Michael Jordan Magrathea (Pendennis) Ltd. 400,000 400,000
Graham Stirling Thomson IBL Ltd. 500,000 500,000
25 May and 29 June 1994 Roger Harris ZoMed International Ltd. 900,000 800,000
25 May and 27 July 1994 Phil Gregory1 and Roger Harris Squaresail Shipyard Ltd. 150,000 150,000
27 July 1994 Roger Harris Tecalmit Systems Ltd. 475,000 400,000
Roger Harris Allen and Heath Ltd. 500,000 350,000
11 August 1994 Roger Harris Bairdwear (Bridgwater) Ltd. 200,000 150,000
Roger Harris FalFab LLC 266,667 250,000
25 January 1995 Roger Harris Topfoto Services Ltd. 325,000 250,00
12 Apr 1995 Roger Harris Redruth Brewery (1792) Ltd. 975,000 700,00

to be available at all times to ensure that duly established claims are satisfied up to £140 million in respect of each of the cover periods specified in the Act. The Act also provides that Government shall make available such sums, as when aggregated with funds available through insurance, or from contributions made by other parties to the Brussels convention on civil nuclear liability, or other means, may be necessary to ensure that claims up to an amount equivalent to 300 million special drawing rights—currently equivalent to £286 million—may be met. Parliament may also vote further funds.

These arrangements, which derive from the Brussels convention, are specific to the nuclear industry which is subject to strict liability and legal channelling. They apply whether an operator is in the public or private sector. When the UK limit of operator liability was set at £140 million, it took into account the capacity of commercial insurance available in the market. There has been no significant change in insurance capacity since then. The Government continue to monitor the situation.