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New nuclear is indispensable, Hutton tells top energy meeting

DEPARTMENT FOR BUSINESS, ENTERPRISE AND REGULATORY REFORM News Release (2008/204) issued by COI News Distribution Service. 18 September 2008

John Hutton will today pledge his maximum support for new nuclear power stations in the UK, at the first meeting of the Government's new Nuclear Development Forum. Mr Hutton will say that energy from new nuclear generators is absolutely indispensable for keeping the UK's lights on, reducing our dependency on foreign oil and gas, and cutting carbon emissions.

The Forum brings together top figures from across the nuclear industry to support and advise the new Office for Nuclear Development in creating the right conditions for new nuclear power stations to be built in the UK as soon as possible.

During the meeting, Mr Hutton will also focus on the huge opportunity for British manufacturers to become part of the UK's new nuclear ambitions. He will highlight the benefits of as much as possible of the predicted £20 billion private sector investment and 100,000 jobs that could be created from new nuclear power stations to be secured for the UK.

But with strong competition from such countries as China - which has plans for 24 nuclear plants and outline proposals for another 76 - a strong British supply chain will be ideally positioned to benefit and provide the valuable equipment and skills necessary.

Mr Hutton will say:

"I'm determined to press all the buttons to get nuclear built in this country at the earliest opportunity - not only because it's a no-brainer for our energy security, but also because it's good for jobs and our economy.

"Insecure international sources of energy underline the case for a diverse mix. We are determined to get new nuclear up and running as soon as possible - securing clean low carbon energy and helping to keep the UK's lights on.

"But we're facing stiff competition for this investment and for the equipment we'll need to build these power stations which is why I'm determined to ensure Britain remains a competitive environment for nuclear investment.

"I know many manufacturers across the country already have the skills and expertise needed to build power stations - but more needs to be done to create and support a globally competitive UK supply chain, focussing on high value added activities to take advantage of the UK and global nuclear renaissance.

"I'm calling for a spotlight to be put on the opportunities available to our companies from the UK's and the world's nuclear new build programmes, and make sure they take advantage of it. The new Office for Nuclear Development, launched today, will play its part in this, working with the supply chain, vendors and operators to develop capability where gaps are identified."

The new Office for Nuclear Development (OND), part of the Department for Business, is designed to facilitate new nuclear investment in the UK - making the UK the best market in the world for companies to invest in nuclear, as well as advise the Secretary of State on the exercise of his regulatory and policy functions in relation to the nuclear industry.

The Government will also today publish its response to the consultation on the Funded Decommissioning Programme guidance. The new guidance, to be finalised following the Royal Assent of the Energy Bill, reiterates the Government's policy that nuclear operators - not taxpayers - will have to meet the full cost of decommissioning and their full share of waste management and disposal costs. It helps provide a clear UK framework for the new investment and underlines Government's confidence in the private sector to deliver without any taxpayer funding

Notes to Editors

1. The new Office for Nuclear Development will retain and build on the current work of the Nuclear Unit in the Department for Business, joining-up the approximately 40 staff currently based there with staff from other nuclear-focused teams from across Government. The Office for Nuclear Development will be part of the Department for Business.

2. The OND will exercise its functions in a manner which takes account of the relevant regulatory regimes and Government's broader energy goals. The OND, whose staff will be drawn from both the civil service and from industry, will bring together the relevant Government teams and resources to achieve its objectives. It will be led by a non-executive chair. This appointment has yet to be made, but the Chair will be a person with appropriate experience of the nuclear industry.

3. More information about the work of the OND can be found at:
http://www.berr.gov.uk/energy/sources/nuclear/

4. The Government response to the consultation on Funded Decommissioning Programme guidance will be available at: http://www.berr.gov.uk/energy/sources/nuclear/consultations/closed-response/page47749.html

5. Figures on China's nuclear build programme are contained in the Economic Research Council Digest of Energy Statistics, 2008: http://www.ercouncil.org/energystatsdigest2008.pdf

6. The Department for Business Enterprise and Regulatory Reform helps UK business succeed in an increasingly competitive world. It promotes business growth and a strong enterprise economy, leads the better regulation agenda and champions free and fair markets. It is the shareholder in a number of Government-owned assets and it works to secure, clean and competitively priced energy supplies