(8 years, 4 months ago)
Lords ChamberI am grateful to my noble friend for his support. I completely agree: this is a good deal for Britain and especially for our nuclear industry, which used to be world-leading and could be again. It is also excellent news for the south-west. I talked this morning to the local MPs and the local council. They are very pleased. They had the sword of Damocles of a loss of a very important project to that area hanging over them and are delighted by the news today.
I agree with my noble friend about the college. It is extremely good that, with the help of EDF, we were able to set up a facility for training in the nuclear industry. That can be of merit right across the UK.
Cyberwarfare is a new reality. It was obviously one thing we took into account in looking at all the different components of this deal. We strengthened the security protections and of course we have a civil nuclear police, who I am looking forward to meeting and talking to shortly in my capacity as the new Energy Minister.
My Lords, I am strongly in favour of the development of nuclear power but the Statement says that the changes made will allow the UK Government to take a fair and consistent approach to the national security implications of all significant investments in critical infrastructure, including nuclear energy, in the future. How far have the critical issues been addressed as far as this project is concerned? My noble friend gave assurances about the future; we are interested about whether the Government are absolutely satisfied about the security implications here.
On the point raised by so many about the construction risks, it may be true that consumers will not pay a penny unless and until the plant generates electricity but, if the plant is not constructed, the losses incurred because we do not have a working nuclear plant will be just as important as the financial ones.
As I explained in the Statement, on the Hinkley project we will, following the changes to the deal, have a veto over change of ownership. The project will also be subject to what everybody agrees is the world-class oversight of the Office for Nuclear Regulation, which can intervene in development, construction and operations, and amend site licences, among other things. That is a very important control. Then we will consult on proposals to establish a legal regime that allows us to consider national security implications in all significant investments in critical infrastructure. Once that becomes law it will apply to major infrastructure in the UK.
My Lords, from these Benches I first express my sympathy for the workforce, whose jobs are being lost. Bearing in mind what has rightly been said about the importance of Port Talbot for our highly successful motor and white goods industries, I am pleased to hear of the determination of the Government, working with the Welsh Government, to see that Port Talbot has a sustainable and commercial future. I also welcome the specific measures that my noble friend has drawn attention to. However, on the question of rates, although it is true that there is a long-term review in England and that rates are the responsibility of the Welsh Government, surely there is a need for early and specific action in the steel industry on the rates question. Will my noble friend assure me that we will not necessarily have to wait to the end of the year for the completion of the long-term review of rates?
I hear what my noble friend says and completely agree that rates is a vital area. We have three ministerial working groups, set up in October. They are very aware of the importance of rates. My noble friend Lord O’Neill is leading the work stream on productivity and competitiveness. I will ensure that I pass on the comments made on rates.