Clause 5 - Constitution of NDA
Energy Bill [Lords]
10:00 am
Mr Norman Baker (Shadow Secretary of State for the Environment, Environment, Food & Rural Affairs; Lewes, Liberal Democrat)
It is germane to this clause to welcome the vision that the Minister set out in his previous contribution, particularly his recognition that the industry and the NDA must be seen to be separate, and that the NDA must be independent—that is exactly right. The amendment suggests a way of demonstrating to the public that the NDA is separate
from the industry, as well as giving the assurance that its primary duty—to deal with the decommissioning of facilities and its consequences—is separate from the interests of nuclear generators.
It is unclear exactly what the NDA's first year programme will be, because we have not discussed that yet. A figure of £2 billion has been bandied about as the money that it will have for the first year. Will the Minister confirm or deny that? In any case, who will determine the spending priorities? It is important that those who are appointed to leading positions on the NDA are separate from the industry so that they can focus clearly and independently on the role that the Minister expects them to fulfil. If people in Cumbria cross the road to join the NDA immediately, there will not be the traditional break that applies to civil servants or Ministers when they take up positions after having been in office.
There is a good reason for that break period; it is an essential safeguard. It is a well established Government practice, and the amendment would install it in this context. Without that break, the independence of the NDA could be compromised. More importantly, key personnel appointed to the NDA could come straight from the industry and determine the first year's spending programme. If the spending programme is drawn up by DTI officials, there will be a degree of independence. However, if it is drawn up based on submissions from British Nuclear Fuels Ltd., British Energy or others, we will have to question whether the priorities are right. How the money is spent is important.
In the first year, the NDA will enter into contracts—often long-term contracts—with individuals and companies pursuant to its powers and duties under the Bill. If mistakes are made in the first six months or year, they will be difficult to rectify subsequently. One might say—the hon. Member for Southampton, Test (Dr. Whitehead) alleges that this is my conspiracy theory—that those with an interest in the preservation and enhancement of nuclear power would be interested in how the programme is constructed by the NDA. To avoid any suggestion of that, the NDA should be entirely independent. That is what the amendment would secure. I hope that the Minister will support it.
The industry recognises that opportunities will arise from the NDA's first year of operation. Only last week, an advert from BNFL appeared in The Parliamentary Monitor that stated:
''The onset of new legislation presents a whole new world for BNFL. This legislation will manifest itself as the Nuclear Decommissioning Authority.''
It continued that freedom from restraints, such as historic waste,
''will allow us to develop commercially and internationally in both government and utility sectors. In short, it's the dawning of a new era for BNFL.''
So, it clearly sees an opportunity from the establishment of the NDA. It is matter of Government policy as to whether it is a new dawning for BNFL, but that is separate from the establishment of the NDA. We must ensure that the personnel involved are clearly separate and not helping BNFL with its objective.