Minister signals future is nuclear
The new Government believes nuclear power will play a "key role" in the future – signalling that the building of new reactors in the West is almost a certainty.
The new Energy Minister declared yesterday that nuclear would feature in the coalition's plans for providing Britain's energy – as long as there is no cost to the taxpayer.
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Chris Hendry, the Conservative minister, stressed that he will press on with plans drawn up under Labour even though coalition partners the Liberal Democrats oppose them.
Labour had earmarked Hinkley Point in Somerset and Oldbury in South Gloucestershire as favoured sites for new nuclear power stations.
Last night, the pledge was welcomed by the West MP who represents the place where the first new nuclear reactors in a generation will be built.
But anti-nuclear campaigners insisted a new generation of reactors will not be possible without generous public subsidies.
Mr Hendry, in his first major speech on the issue, told the Nuclear Industry Forum in London: "The coalition agreement clearly sees a role for new nuclear, provided that there is no public subsidy.
"We are clear. It is for private sector energy companies to construct, operate and decommission new nuclear plants. It will be for us to ensure the appropriate levels of safety, security and environmental regulation."
Mr Hendry told senior energy figures at the event: "From the commitment I've seen from the nuclear industry I have no doubt that you can rise to the challenge. Nuclear power can have a key role in our energy mix. But I appreciate clarity from us is essential if new investment is to happen.
"I am pleased that some of those most interested in new nuclear, such as EDF, have welcomed the coalition's position on nuclear."
He said his discussions with companies suggest they are willing to invest without being subsidised by the taxpayer.
But the Government will take steps to remove barriers to building new nuclear power stations, a process that has taken many years in the past.
And Chancellor George Osborne may introduce measures in next week's emergency Budget to improve incentives for investing in low-carbon power, including nuclear.
Mr Hendry's boss, Energy and Climate Change Secretary Chris Huhne, a senior Lib Dem, will today be questioned about the situation.
The coalition agreement allows the Lib Dems to "maintain their opposition to nuclear power" and abstain in Parliamentary votes.
But the issue clearly has potential to put the coalition under strain, as many Lib Dem activists will want party MPs to vote against any new nuclear reactors.
Jim Duffy, of Stop Hinkley, told the Western Daily Press: "I think the Liberals are between a rock and a hard place.
"They have been pushed into a position where they have to accept the idea of nuclear power but sit on their hands in Parliament."
He said the question of subsidies was a matter of interpretation, as there were issues over what to do about nuclear waste, and the proposed incentives for low-carbon.
And there was an issue about insurance, which at the moment was only £140 million if something went wrong.
There were proposals through the EU to increase it to around £600 million, but that was "still pretty pathetic" as the Government would have to step in and pay for any costs beyond that.
Tory MP Ian Liddell- Grainger, whose Bridgwater constituency includes Hinkley Point, said: "I want to make absolutely sure that the Government continues their drive to nuclear power no matter what. It is important for the nation as we are not going to produce enough energy otherwise."
EDF Energy wants to build two new nuclear reactors at Hinkley by 2018, as well as two at Sizewell in Suffolk, starting in Somerset where public consultation is already under way.
Oldbury could be supplying energy by 2025, but the West's third nuclear plant, Berkeley in Gloucestershire, is at an advanced stage of decommissioning and is not a potential new site. The plans would bring 18,000 jobs to the West and pump billions of pounds into the region's economy.











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