Nuclear Power: Procurement

Viscount Hanworth Excerpts

Monday 11th November 2013 Lords Chamber

Asked by

[Viscount Hanworth]

To ask Her Majesty’s Government what steps they are taking to ensure that United Kingdom suppliers will be called upon to provide the components that will be required in building any new nuclear power station in the United Kingdom.

[The Parliamentary Under-Secretary of State, Department of Energy and Climate Change (Baroness Verma) (Con)]

My Lords, the Government are committed to ensuring that the UK supply chain is able fully to capitalise on the opportunities that will come with the UK’s nuclear new-build programme. Investor confidence continues to grow with projects being taken forward by three consortia. These projects have set out plans to develop around 16 gigawatts of new nuclear power in the UK, which could support an estimated 29,000 to 41,000 jobs across the nuclear supply chain at the peak of its construction.

[Viscount Hanworth (Lab)]

I thank the Minister for that reply. Recently, one of the EDF executives called into question the competence of the UK to supply high-tech equipment for the Hinkley C power station. This contradicts a current capability report of the Nuclear Industry Association, which maintains that, apart from a few large-scale items, the UK could supply almost all of the mechanical and electrical equipment, including the controls and the instrumentation. There are some essential misgivings concerning the possible wilful exclusion of competent UK suppliers. Will the Minister declare more fully what steps, if any, are being taken to protect their positions?

[Baroness Verma]

My Lords, EDF has indicated that around 57% of the opportunities in the construction of Hinkley Point C would come to the UK, while Horizon has estimated that it is expected that around 60% of the value of the first plant will be locally sourced. Nuclear is a key growth industry that provides highly skilled jobs. The 16 gigawatts of new-build capacity planned by industry would create a very large number of jobs, as I said. We in this country have the capability and the capacity.