§ Mr. Alan SimpsonTo ask the Secretary of State for Defence if he will make a statement on the compensation claim by Blue Circle International for contamination of their land adjacent to AWE, Aldermaston. [52159]
§ Mr. SpellarFollowing an exceptionally severe storm in July 1989 water bearing low level radioactive material from ponds situated at AWE, Aldermaston overflowed onto adjacent marshland belonging to Blue Circle Industries plc. The company later sought damages for economic loss from the collapse of negotiations related to a possible sale of the Blue Circle Industries estate. The High Court awarded damages of some £6 million against the MOD.
On legal advice, the MOD appealed against this ruling. The Appeal was heard in May and judgment handed down on 10 June with the Court finding for Blue Circle Industries plc and increasing the award by a further £600,000.
As agreed by both sides, there was no physical damage to human or animal health, and the area affected was well away from land regularly used by the company or to which the public had access. The affected sediment was removed at MOD's expense in 1994 by suitable qualified contractors to the satisfaction of the regulatory Authorities and Blue Circle Industries.