Hinkley Point C

Lord Lawson of Blaby Excerpts

Thursday 15th September 2016 Lords Chamber

[Lord Lawson of Blaby (Con)]

My Lords, my noble friend—for whom I have the highest regard, as she knows—will also know that I am in no way anti-nuclear. The Statement refers to the fact that this is the first new nuclear power station for a generation. The last one was Sizewell B, for which I authorised the public inquiry when I was the Secretary of State for Energy in 1982. Is she not also aware that every single independent energy expert of whatever stripe has said that this is a thoroughly lousy deal, for reasons which will not be affected in the slightest by the changes she announced in the Statement?

It is charming, in this post-Brexit era, to throw out a lifeline to EDF, which as the noble Lord, Lord Teverson, pointed out, is on the verge of bankruptcy and has never built a power station of this kind. As he rightly pointed out, the company has two power stations under construction—one in France and the other in Finland—and both of them are hopelessly behind schedule and in deep, deep trouble. Can my noble friend give an assurance that, if this power station appears to be getting behind schedule and suffering the same sort of problems that are affecting Flamanville and the project in Finland, the Government will have no hesitation in ending this contract, whatever penalties there may be? I ask that because it is a lousy contract, and the sooner it is ended, the better.

[Baroness Neville-Rolfe]

While I agree with my noble friend about Sizewell B, which I had the pleasure of visiting during its construction phase all those years ago, I cannot agree with him on the general approach. For reasons that I have already explained, nuclear is a central part of our future and I have explained what would happen if the Hinkley power station is badly delayed. I do not believe it will be. We have learned from Flamanville and from the troubles in Finland. Our own chief scientist has given us reassurance on that. I have visited CGN myself. It is producing a nuclear power station in Taishan on similar technology, which is nearly ready for operation. We cannot afford to wait, because the existing fleet is coming offline. By 2030, except for Sizewell B—my noble friend’s legacy—we will not have any nuclear power stations, unless we invest now in a new nuclear fleet. This proposal is on the table and we have decided, having looked at all aspects, that it is right to proceed.