MEPs CALL FOR AN END TO HIDDEN SUBSIDIES FOR NUCLEAR POWER - LIZ LYNNE

3.27.53pm GMT Wed 16th Nov 2005

Commenting on the vote today in the European Parliament which called for an end to hidden subsidies when decommissioning nuclear power plants, Liberal Democrat MEP for the West Midlands, Liz Lynne said:

"For too long the nuclear industry has been hiding the true cost of decommissioning.

"Too often in the past the nuclear industry has got its sums wrong and then come begging for financial assistance to ensure that decommissioning is managed in a safe and environmentally sound manner.

"The nuclear industry cannot even start to claim it is competitive while there are backroom deals and hidden subsidies.

"If waste management costs are not calculated properly at the start then government assistance becomes State aid by the back door."

ENDS

Notes to editors:

The question of the decommissioning of nuclear plants is set to become an increasingly important issue: of the 155 reactors currently operating in the enlarged EU, some 50-60 are likely to be decommissioned by 2025.

MEPs voted to uphold the 'polluter pays principle' and avoid any recourse to state aid.

On 22 Sept 2004, the European Commission approved, subject to certain conditions, the State aid (over £180 million) which the UK Government is giving to British Energy plc as part of the company's restructuring plan. Article 2 of the Commission's decision requires the UK Government submits Annual Reports on implementation no later than 22 September of each year.