§ Mr. GibbTo ask the Secretary of State for Trade and Industry (1) for what reasons her Department has engaged Andersens as a consultant to advise on the restructuring of BNFL; [72430]
(2) who the (a) engagement partner and (b) client partner at Andersens are who will be carrying out the work on behalf of her Department into the restructuring of BNFL. [72429]
§ Mr. WilsonThe Department has not engaged Andersens. Following a competitive tender, the Department is in the process of appointing Deloitte and Touche as its accountancy adviser on BNFL and the 1337W proposed Liabilities Management Authority. Deloitte and Touche has invited partners and staff at Andersens in the UK to join Deloitte and I understand that arrangement is currently being implemented. The Deloitte's team will be led by David Wadsworth, a long-standing partner at Deloitte.
§ Mr. GibbTo ask the Secretary of State for Trade and Industry if she will make a statement on the financial position of BNFL. [72548]
§ Mr. WilsonBNFL announced its results for 2001–02 on 16 July 2002. The company reported a loss after tax and exceptional items of £2,090 million, caused primarily by exceptional charges of £1.9 billion relating to a review of strategy for historic waste management and £375 million for the early closure of the Magnox nuclear power stations Calder Hall and Chapelcross. Before tax and exceptional items, the company made a profit of £22 million.
BNFL also announced a net asset deficit of some £1.85 billion. However, the Company has a strong cash position. Further, in November 2001 my right hon. Friend the Secretary of State for Trade and Industry announced proposals to establish a Liabilities Management Authority (LMA) which will take on financial responsibility for the nuclear legacy liabilities. The Government are committed to pushing ahead with the proposed LMA at the earliest opportunity and published on 4 July 2002 a White Paper "Managing the Nuclear Legacy" which, among other things, sets out in more detail the plans for the LMA.