New Nuclear Subsidy Unacceptable - Davey

9.38.53pm BST (GMT +0100) Tue 24th Oct 2006

Liberal Democrat Shadow Trade and Industry Secretary, Edward Davey MP

The Liberal Democrats today attacked the Government's proposal to break up and sell off British Nuclear Group and establish a National Nuclear Laboratory (NNL) as yet more backdoor subsidy.

Liberal Democrat Shadow Trade and Industry Secretary, Edward Davey MP, said:

"Today's announcement represents yet another breach of the Government's previous pledge not to subsidise nuclear power.

"By creating a publicly run NNL ministers are effectively providing yet more subsidy for nuclear research and development after 50 years of state handouts.

"Nuclear power is not a fragile new industry that needs taxpayers' support any more."

ENDS

Notes to Editors

The Energy Review was published on the basis that new nuclear power stations would be financed by the private sector.

Today's announcement acknowledges the need to establish a National Nuclear Laboratory because "whilst the UK nuclear R&D market is developing it might be necessary to preserve and develop these skills potentially as part of a National Nuclear Laboratory". In other words, the private sector cannot be relied on to undertake this function.