Nuclear Sector Deal

Lord Walney Excerpts

Thursday 28th June 2018 Commons Chamber

[John Woodcock (Barrow and Furness) (Ind)]

(Urgent Question): To ask the Secretary of State for Business, Energy and Industrial Strategy if he will make a statement on the nuclear sector deal.

[The Minister for Universities, Science, Research and Innovation (Mr Sam Gyimah)]

The Business Secretary is currently in north Wales, in Trawsfynydd, launching the nuclear sector deal, which is why I am here in his place.

The industrial strategy sets out how long-term partnerships between the Government and industry can create significant opportunities to boost productivity, employment, innovation and skills. We committed to agreeing sector deals with industries that put forward ambitious proposals to boost productivity and earning power in their sector. The Government are today launching the nuclear sector deal, the fifth in a series of deals, as part of their industrial strategy. I would like to take this opportunity to praise the long-standing support and work of the hon. Gentleman’s predecessor, Lord Hutton of Furness, who has helped to facilitate the deal today from the industry side.

The nuclear sector in the UK is an economic powerhouse, equivalent in scale to the aerospace industry. It provides highly skilled, long-term employment for 87,500 people and is a driver of regional growth. Nuclear generation provides more than 20% of the UK’s electricity supply, and its low-carbon, reliable baseload power complements the growing renewable portfolio that is enabling the UK to reduce CO₂ emissions in line with our commitments. The nuclear sector deal announces a package of measures to support the sector as we develop low-carbon nuclear power and continue to clean up our nuclear legacy.

The deal is about the Government and industry working in partnership to drive competitiveness across the nuclear sector. We will use these initial actions as a platform for future collaboration and investment in the sector. The Government have notified Parliament of today’s deal by means of a written ministerial statement and deposited a copy of the sector deal in the Libraries of both Houses. This is a good day for the nuclear industry and for Wales, where we are focusing on small modular reactors that can help Wales become a world leader in this sector.

[John Woodcock]

I thank the Minister for reading studiously from the brief presented to him, but why on earth did the Business Secretary, or indeed the Minister for Energy and Clean Growth, not see fit either to come to Parliament or to make themselves available to answer questions on this important issue, but instead issue a press release last night and allow us as Members of Parliament to read about it?

The deal is indeed welcome, and I join the Minister in praising my predecessor, Lord Hutton, for the work that he did when in this Chamber and which he now does in his role in the civil nuclear industry in pushing the Government along on this. Can the Minister say more about small modular reactors? How many do the Government expect there to be within the next 10 years? How will the Government ensure that British firms and British research and development, and not simply foreign direct investment, benefit? Can he guarantee that this will supplement the larger civil nuclear build, rather than replace it? Planning for the long term, as this strategy seeks to do, is important and right, but as I hope he knows, the industry faces potential crisis now. What is happening on Euratom? Can he guarantee that standards will be maintained absolutely and that there will be sufficient people to deliver them as we approach the cliff edge?

What is the Government’s position on direct investment? Will the Government now pledge to invest directly in Moorside, as they are planning to do in Wylfa? More than 20,000 jobs are at stake in south Cumbria unless the Government act on that.

Talk of supporting nuclear clusters is all very well, but will the Department for Business, Energy and Industrial Strategy intervene directly with the Department for Transport in Cumbria and stop the wonderful, world-class nuclear cluster that we could have there being inhibited by the fact that we have to drive through a farmyard to get from civil nuclear in the west to the nuclear submarine building programme in the south, in my constituency?

[Mr Gyimah]

I understand the hon. Gentleman’s concern, but a written ministerial statement is being laid before Parliament today, and I reiterate that the Secretary of State and the Energy Minister are in Wales, launching the nuclear sector deal as we speak. Given the hon. Gentleman’s long-standing, diligent campaign in this area, I am happy to offer him a meeting with the Secretary of State and officials as soon as possible, to go through all the elements of the deal and especially its impact on his constituency.

The hon. Gentleman asked how many small modular reactors there would be. The honest answer is that the number is not set at the moment. The Government are recognising the potential for such reactors and investing in research and development.

On direct investment and whether we will pledge to do the same for Moorside as for Wylfa, I understand the hon. Gentleman’s particular interest. Our priority is to build the infrastructure that the country needs in a way that delivers value for money for taxpayers. On 4 June the Secretary of State made a statement to Parliament, announcing direct Government investment in the Wylfa Newydd project. For future projects we are looking at the viability of a regulated asset model, as we have done before.

Safety and security is obviously a top priority and we will work with the sector and regulators to ensure that our staff are in place, but I reiterate the offer of a meeting as soon as possible, at which the hon. Gentleman may discuss all the details with officials and Ministers.