§ Norman BakerTo ask the Secretary of State for Trade and Industry what recent assessment she has made of the solvency of(a) British Energy and (b) BNFL. [89089]
§ Mr. Wilson[holding answer 8 January 2003]: British Energy has submitted a plan to Government for the solvent restructuring of the company. The Department and its financial advisers have assessed the implications and have decided to support it in allowing the company to attempt solvent restructuring.
In respect of BNFL, it is for its Board to assess the Company's solvency. In doing so the company comply with relevant corporate governance and financial accounting requirements. This is independently reviewed by the company's auditors.
BNFL reported a net asset deficit in 2002. However the company has significant cash resources which, coupled with the ongoing proposals relating to the management of the UK's civil nuclear liabilities, means that the company can continue to trade.
BNFL's Directors confirmed that the company remains a going concern in their Corporate Governance Report included in the company's 2002 annual report and accounts.
§ Mr. Andrew TurnerTo ask the Secretary of State for Trade and Industry what plans she has to protect British energy markets from state-aided competition. [89568]
§ Mr. WilsonComplaints about undertakings believed to be in receipt of unauthorised state aid should be directed to the European Commission for investigation.
This Government's policy is to ensure rapid progress is made in developing a single EU energy market to the benefit of UK consumers and business. As is the case with other industries in this country, our policy is to ensure that all companies, regardless of ultimate ownership, are strictly regulated in the interests of the consumer and the environment. All utilities are subject to legal regulatory and environmental obligations and controls.