Special Risk Nuclear Indemnity

Andrew Murrison Excerpts

Thursday 27th March 2014 Written Statements

[The Parliamentary Under-Secretary of State for Defence (Dr Andrew Murrison)]

It is normal practice when a Government Department proposes to undertake a contingent liability of £300,000 and above for which there is no specific statutory authority for the Department concerned to present to Parliament a minute giving particulars of the liability created and explaining the circumstances; and to refrain from incurring the liability until 14 parliamentary sitting days after the issue of the minute, except in cases of special urgency.

Subject to no objections being received, I intend to authorise the proposal to undertake contingent liability for nuclear indemnity, after the usual 14 parliamentary sitting days. I have today, in accordance with the usual parliamentary procedures, laid a departmental minute on the proposal.

The Treasury has approved that, where the financial impact of an event would make the contract untenable due to the nature of work being undertaken, the contractor may be relieved of their liability. Although the contractor is not working directly with nuclear, there is a low risk that their activities may cause an incident to occur. If, during the period of 14 parliamentary sitting days beginning on the date on which this minute was laid before the House of Commons, a Member signifies an objection by giving notice of a parliamentary question or a motion relating to the minute, or by otherwise raising the matter in the House, final approval of the proposal will be withheld pending an examination of the objection.