§ The Parliamentary Under-Secretary of State, Department of Trade and Industry (Lord Sainsbury of Turville)My right honourable friend the Secretary of State for Trade and Industry (Ms Hewitt) has made the following Written Ministerial Statement.
The Government have agreed to a request from British Energy plc to extend the long stop date for completion of the company's restructuring plan beyond 31 January 2005.
In granting this extension, the Government considered their overarching objectives of nuclear safety, security of electricity supplies and value for money for the taxpayer and consulted with the Health and Safety Executive's Nuclear Installations Inspectorate. The Government continue to believe that the company's restructuring plan is the best means of ensuring these objectives. Therefore, in the light of the intermediate milestones set out in British Energy's announcement of 30 November 2004, 27WS the Government have agreed, subject to two conditions, to extend the long stop date in the government restructuring agreement for a period of three months until 30 April 2005.
In the context of meeting their overarching objectives at this time, the Government believe that continuity and stability in the management of British Energy's business in the immediate future is desirable. We have also sought and received assurances from British Energy's management that any measures taken to manage the group's working capital will not adversely affect safety or security of supply. The extension is therefore subject to conditions relating to those two issues.
As I have said previously, contingency plans remain in place to ensure safety and security of supply if the restructuring plan fails for any reason and British Energy decides administration is the only option.