Labour's �10bn nuclear sell-off

Guardian Unlimited | Special reports | Labour's �10bn nuclear sell-off

US firms tipped to bid for Sellafield

Terry Macalister
Friday September 30, 2005
The Guardian


Operations at Sellafield and other major nuclear plants such as Sizewell and Dungeness are to be sold off to the private sector for more than £10bn under plans drawn up yesterday by the board of British Nuclear Fuels Ltd (BNFL).
American companies such as Halliburton and Fluor are seen as likely contenders in any race to take over British Nuclear Group, which is the main operating arm of the government-owned BNFL, handling nuclear generation, reprocessing and clean-up businesses. The transfer of key operations out of state hands at a time when Britain is facing an energy shortfall will generate surprise, particularly with North Sea oil and gas running down and the government edging towards a decision to proceed with a new generation of nuclear reactors. But a sell-off is likely to be approved by the government when Gordon Brown is struggling to fund his spending commitments.


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Last night, the traditionally-secretive BNFL refused to confirm publicly that any definite disposal move had been made but a spokesman said: "No decision on a sale will be taken without the secretary of state, the trades unions, customers and other stakeholders being properly consulted." Industry sources said the company was determined to find a new future for BNG through a partnership with the private sector or, more likely, through an outright sale of the business which employs 8,000 staff.
The Prospect union expressed alarm at the development. "We are particularly concerned at the loss of government influence over the future direction of the British nuclear industry at a time when we face huge changes such as a major decommissioning programme and the prospect of a new building programme," said Mike Graham, north-west officer for the union who deals with BNFL.

Norman Lamb MP, the Liberal Democrat trade and industry spokesman, called for the government to clarify its position on the proposed sale, which would have implications for decision-making in the nuclear industry. BNG runs a dozen atomic sites, some with relatively new reactors such as Sizewell B in Suffolk.