Nuclear Sector Deal

Lord Fox Excerpts

Thursday 28th June 2018 Lords Chamber

[Lord Henley]

My Lords, I welcome the welcome of this deal by the noble Lord, Lord Grantchester, and I am pleased to be able to say how happy I am that he is happy that this is good for north Wales and Chester, his part of the world. I cannot give precise confirmation in answer to his question about Trawsfynydd, but I can confirm that there is new money coming in—money for advanced manufacturing and construction programmes from the Government, and money to invest in the national supply chain.

We also expect to see a 30% reduction over the years in the cost of new-build projects and also—very important for my part of the world, west Cumberland—reductions in the cost of decommissioning of some 20% over the years. This is a good deal not just for north Wales but for the whole country.

[Lord Fox (LD)]

My Lords, we generally welcome this announcement, with some reservations. In the Minister’s introduction, not much emphasis was given to decommissioning and waste disposal, which take up a large proportion of our nuclear industry at the moment. Perhaps the Minister can explain how this sector deal will reflect on that.

The Minister also mentioned the number of people employed in the industry, but there is likely to be a shortfall in skills if the expansion, as envisaged by the Government, goes ahead. The need for developing more skills in this industry, as well as many others, is clear. Perhaps the Minister could reflect on that.

Finally, there is a terrible irony in this announcement’s being made in Wales. I feel another Peer twitching behind me because just this week the Swansea Bay tidal lagoon was scrapped by the Government. This was an excellent example of a renewable programme. Does this sector deal reflect on the Government’s cooling even further on renewables?

[Lord Henley]

My Lords, I was wondering when the noble Lord would get on to Swansea Bay. We dealt with that in a Question only the other day. I think there was recognition from all parts of the House, other than on the Liberal Benches, that it would not be wise to go ahead with a project that would cost the consumers of electricity—remember, it is the consumers who pay for that electricity—three times as much as Hinkley Point, which is not a good deal for the people of Swansea or those around it.

As for decommissioning, yes, that is very important. We will continue our work on decommissioning and, as the sector deal makes clear, we are looking, over the next 20 years, or by 2030, for reductions in the cost of decommissioning of some 20%. That is important.

The noble Lord also mentioned the number of jobs in this area and the importance of making sure that we both generate people with the right skills and attract people with the right skills to this country. That is something that we are aware of. Currently, the industry provides long-term employment for some 87,500 people. The deal will potentially support 100,000 highly skilled jobs, in locations from Cumbria to Somerset. We will make sure we have people with the right skills to perform those jobs.