Hinkley Point C Reactor
Debate between George Kerevan and James Heappey
George Kerevan
If my hon. Friend has been reading the French media over the past few days he will know that it is not just the French unions. Practically the entire French media are now referring to Hinkley Point and the EPR reactor as the “English threat” to EDF.
Hinkley is the biggest power project we have ever seen, at £25 billion and rising. Under our current energy plan we are dependent on it to deliver 7% of the UK’s generation capacity, at a moment when our capacity margins are close to zero. Having mortgaged the UK’s energy future to Hinkley C, the Government have failed consistently to keep Parliament informed about the crisis on the EDF board, up to and including last weekend when the person in charge of the company’s finances—the chief financial officer—was in effect forced to resign because of his resistance to going ahead with this project.
If a major UK engineering company had a contract with the Government, and its chief financial officer was opposed to that contract and was fired, imagine the scandal there would be. However, the Government are happy to stay quiet while the senior management of EDF are removed in order for the project to go ahead.
James Heappey (Wells) (Con)
Will the hon. Gentleman concede that the chief executive of EDF, both in the UK and France, has been consistently committed to the project, as indeed have the UK and French Governments? I am not quite sure what else it is we might like to know in this House, given that that commitment has been unanimous and unstinting.
George Kerevan
I am aware of that—that is the problem. Why is there a revolt on the board? It is not just the trade union members. It is true that a third of the EDF board is allocated to union members, union representatives and staff representatives. They are in favour of nuclear power, but they are worried about the impact on the company’s future. Why is there a vote? Why was the chief financial officer against this? EDF has a negative cash flow. Its debts are twice its company valuation. Its share price has halved in the past 12 months. How is it paying its dividend? It is doing so by issuing more shares and giving them to the shareholders. Imagine how insane that is.