Nuclear Industry (Privatisation)

Part of the debate – in the House of Commons at 7:35 pm on 18 June 1996.

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Photo of Mr Ian Lang Mr Ian Lang , Galloway and Upper Nithsdale 7:35, 18 June 1996

The hon. Gentleman may jump to conclusions of that kind. Those figures have been struck on the basis of the best possible advice and which will be reviewed quinquennially. Independent trustees are responsible for those matters, and it is the best estimate that those figures will be adequate. As I have said, nothing is set in stone, and they can be reviewed as required, but we are talking about a long-term accumulation of resources.

The final misconception on which I want to put the record straight arises from the stories of a dividend sweetener of £100 million being paid by the taxpayer from a special reserve fund. The first dividend that will be received by investors is an interim dividend in respect of the year ending 31 March 1997. That dividend will be paid by British Energy, using its own cash resources, and there is no question of payment by the taxpayer from a special reserve fund.

Opposition Members have also sought to create fears that the uncovered dividend will be paid for with money needed for long-term liabilities. Again, that is totally untrue. The company is satisfied on cash flow grounds that it will be able to meet all its liabilities. Were there ever to be a question of priorities, of course, liabilities would always come first.

I shall now discuss another benefit arising from this privatisation.