10-10-05
Tony Blair has decided to back new nuclear power stations, which would be
built on the sites of existing plants and presented to the public and his party
as a job-creating answer to climate change.
A year-long government inquiry into Britain's future energy requirements is
expected by the Prime Minister to conclude that more nuclear energy is the only
plausible answer to reducing greenhouse gas emissions.
The nuclear industry is willing to proceed without any government money on
three conditions: that it is supported with planning applications, is helped
with nuclear waste disposal and offered protection against an energy price
crash.
In the past fortnight, the Prime Minister has privately disclosed that he is
firmly in favour of more nuclear reactors, and that he expects the coming
inquiry to make a case that can be supported by an all-party consensus. He
believes the mood among Labour MPs has been irreversibly shifted by their
involvement in the global warming debate, and that a backlash from the Iraq war
has stoked concern about UK dependence on oil from the Middle East.
Employment, Blair believes, will win over many on the Left - especially as
8,000 jobs are expected to be lost during the decommissioning of Sellafield
nuclear plant in Cumbria, which employs 12,000. However, the situation in
Scotland is complicated by the Labour-Liberal Executive's opposition to any new
station north of the Border.
Scottish Liberal Democratic leader Nicol Stephen upped the ante in a speech to
his party, saying the country should shift away from nuclear towards more wind
and wave power.
The Prime Minister's position on nuclear power has been made clear by those
who have spoken to him directly and believe he wants to send out a positive
signal to the nuclear industry so that they start planning now. Blair is
prepared to go as far as he can without prejudging the nuclear review. A
fortnight ago, he made the case for nuclear power to the Labour Party conference
while stopping short of calling for its implementation.
"Global warming is too serious... to split into opposing factions on it," he
told delegates. "And for how much longer can countries like ours allow the
security of our energy supply to be dependent on some of the most unstable parts
of the world?"
The Department of Trade & Industry confirmed that it has been holding
discreet talks with major energy providers about nuclear options: E.ON and RWE
of Germany, and EdF of France. BNFL has a design for a new plant.
The issue of nuclear power was avoided by the 2003 Energy White Paper, completed
at a time when plunging wholesale energy prices triggered the collapse of
British Energy. But rising prices make this viable again.
A merchant banking source advising one of the firms said they would seek a
system where this trap door could not open again -- and, above all, a degree of
political stability to ensure a future government would not change direction.
"We need certainty about energy prices, and that is very different from
subsidy," he said. "We need a thoroughly pro-nuclear White Paper, without any
sense of an argument about it from the Treasury."
This may come from the inquiry into the economics of climate change
commissioned by Chancellor Gordon Brown and led by Sir Nicholas Stern, deputy
permanent secretary at the Treasury and former chief economist at the World
Bank. The Chancellor now has family ties with the nuclear industry. Andrew
Brown, the Chancellor's brother, is head of media relations at EdF, the French
energy giant expected to be a main bidder.
Blair's advisers are pro-nuclear. Sir David King, his chief scientific officer,
decided three years ago that renewable energy sources would not be developed
fast enough to fill the gap expected in 2020.
Other Cabinet sceptics are coming around. Margaret Beckett, Environment
Secretary, earlier claimed at a climate change conference that she has "never
said" she is against nuclear power.
This contrasts with remarks by Elliot Morley, environment minister, who said in
September that "nuclear plants are expensive and if you're looking at the energy
mix, I think you'll probably get more value from investment in clean coal".
Research so far shows that, while there is political opposition, it is far
from overwhelming. A commons motion opposing more nuclear energy has been signed
by only 41 of Labour's 354 MPs. A Mori poll of MPs released earlier by the
British Nuclear Industry showed the balance of opinion in Labour against, with
45 % of Labour opposed and 35 % for.
Brian Wilson, a former energy minister who retired from politics in the May
general election, said fears of a House of Commons rebellion are overblown
because new plants do not require the permission of MPs.
"There has not been a nuclear moratorium -- it's open to anyone to come up with
new proposals," he said. "And you do not need legislation, just a level of
commitment that makes new propositions economically feasible."
A DTI spokesman said it was "highly unlikely the planning issue wouldn'thave
ministerial involvement" but confirmed that a new power plant "wouldn't
necessarily involve primary legislation".
Research conducted by the DTI has identified three sites to host a new nuclear
reactor: Hinkley in Somerset, Sizewell in Suffolk and Hunterston in Ayrshire.
Source: Scotsman.com