HC Deb 11 November 1998 vol 319 c222W
Mr. Chidgey

To ask the Secretary of State for Trade and Industry what tender process was undertaken for the review of British Nuclear Fuels prior to the appointment of KPMG accountants; and if he will list the firms which submitted tenders. [59089]

Mr. Battle

[holding answer 10 November 1998]: KPMG were chosen following a competitive tender process. Six firms were invited to participate in the tender. KPMG were selected after interview of the four firms which submitted tenders. It is not normally the Department's policy to disclose the names of firms participating in such competitive tendering exercises.

Mr. Chidgey

To ask the Secretary of State for Trade and Industry what the terms of reference are for KPMG accountants' review of British Nuclear Fuels. [59090]

Mr. Battle

[holding answer 10 November 1998]: KPMG were engaged to carry out an initial review of the options for BNFL's future structure including, but not restricted to, some form of Public Private Partnership, having regard to the Government's objectives, which are as follows: Safety and environmental impact to ensure that the highest standards of safety are applied throughout BNFL's operations and that regulatory standards on environmental impact are fully complied with. Efficient management of liabilities to ensure that the nuclear liabilities created by past, present and future operations are discharged safely and as cost effectively as possible including the possibility of sharing risks and rewards in management of liabilities with the private sector. Efficient management of company and employee involvement to ensure effective incentives and disciplines are in place to deliver efficient management of the company, while ensuring employee commitment to the success of the company. Maximise the value of the business subject to the points above, to provide a framework in which BNFL can get the best out of its assets and maximise its value as an international business by making best use of its expertise and taking advantage of commercial opportunities as they arise. Full value for taxpayer to ensure that any deal involving a full or partial sale of assets provides full value for the taxpayer consistent with the degree of risk passed on to the private sector.

Mr. Chidgey

To ask the Secretary of State for Trade and Industry what estimate he has made of the cost of the review of British Nuclear Fuels being carried out by KPMG; and when the review will be completed. [59088]

Mr. Battle

[holding answer 10 November 1998]: My department is paying KPMG a fixed fee of £100,000 for this work. The review will be completed by the end of this month.