Previous Business – Commons: Select Committee (19 Apr 2017)
Business, Energy and Industrial Strategy: Leaving the EU: energy and climate negotiation priorities. 9:30 am; Room 6, Palace of Westminster
Witnesses: The Rt Hon Greg Clark MP, Secretary of State for Business, Energy and Industrial Strategy Jesse Norman MP, Parliamentary Under-Secretary of State Nick Hurd MP, Parliamentary Under-Secretary of State, Department of Business, Energy and Industrial Strategy

Magnox: Early Contract Terminations (27 Mar 2017)
Greg Clark: I can confirm that the terms of reference make it very clear that the inquiry can make any recommendations that it sees fit, including as to any disciplinary investigations or proceedings that may, in its view, be appropriate as a result of its findings.

Magnox: Early Contract Terminations (27 Mar 2017)
Greg Clark: I will. It is important when there is such a serious set of consequences for public money that the conclusions should be publicly available, and available to this House and to other Government Departments that may want to reflect on them.

Magnox: Early Contract Terminations (27 Mar 2017)
Greg Clark: This morning, I informed the House that the NDA has terminated its contract with the Cavendish Fluor Partnership for the decommissioning of 12 redundant Magnox sites. The NDA ran a £6.1 billion tender process from April 2012, which resulted in a 14-year contract being awarded in September 2014 to the partnership, which is a joint venture between the British firm, Cavendish Nuclear, and...

Magnox: Early Contract Terminations (27 Mar 2017)
Greg Clark: The hon. Lady is quite right to ask her questions, and I hope she will agree that the written ministerial statement I have made today is thorough and comprehensive. I am very happy to have conversations with her and the Select Committee over the weeks and months ahead. The hon. Lady asked some specific questions about the termination of the contract and the litigation. On the latter, there...

Magnox: Early Contract Terminations (27 Mar 2017)
Greg Clark: My hon. Friend is absolutely right. We have a duty to consider the further risks to public money, which is why my accounting officer, the Chief Secretary to the Treasury and I accepted on advice that, however painful it is—these are significant sums of money, as my hon. Friend the Member for Finchley and Golders Green (Mike Freer) said—we should prevent the sums of money from...

Magnox: Early Contract Terminations (27 Mar 2017)
Greg Clark: I join my right hon. Friend in paying tribute to the workforce. As he will be aware, good progress has been made in decommissioning the site in Bradwell, with the underground waste vaults containing intermediate level waste having been cleared and decontaminated. That is a reflection of the hard work. There is a separate set of discussions and consultations going on with regard to the pension...

Magnox: Early Contract Terminations (27 Mar 2017)
Greg Clark: I have mentioned the settlement—it is nearly £100 million for the settlement of the litigation. The chief executive of the NDA has come to the end of his contract.

Magnox: Early Contract Terminations (27 Mar 2017)
Greg Clark: A little humility might be appropriate here, because the Scottish Government provided oversight of this procurement as part of the NDA competition programme board. I am sure that the lessons to be learned from 2012 to 2014 also apply to the Government in Scotland. I am sure that, whatever the view on future new nuclear power, the people of Scotland, as well as those of the whole of the...

Magnox: Early Contract Terminations (27 Mar 2017)
Greg Clark: I agree with my right hon. Friend: it is important quickly to learn the lessons and to apply them. This is very important work. The work is being carried out to a high standard, but those lessons must be learned and applied.

Magnox: Early Contract Terminations (27 Mar 2017)
Greg Clark: Yes. There have been constructive discussions with the representatives of the workforce. Those discussions and consultations continue. Of course, we want to bring them to a satisfactory conclusion.

Magnox: Early Contract Terminations (27 Mar 2017)
Greg Clark: I am grateful to the Chairman of the Select Committee for what he said. I can confirm that the governance and the management arrangements of the NDA are very much in scope. I put the terms of reference in the Library of both Houses of Parliament this morning. It is open to Mr Holliday to go where the evidence takes him—to use that phrase on this. The particular concern is over this...

Magnox: Early Contract Terminations (27 Mar 2017)
Greg Clark: This is about a procurement process that was mis-specified around decommissioning; it is not against the build costs of a future reactor. If Steve Holliday’s report includes wider lessons for the industry, we will be sure to take them.

Magnox: Early Contract Terminations (27 Mar 2017)
Greg Clark: I will, indeed. The terms of reference that were published with my written statement this morning make it very clear that, as is absolutely right and proper, the inquiry applies to the NDA and Government Departments, from the beginning of the procurement in 2012 to the conclusion of the litigation and the termination of the contract.

Magnox: Early Contract Terminations (27 Mar 2017)
Greg Clark: One reason I have asked Mr Holliday to make a report by October is so that that can happen. I will meet him in the coming days, as he sets out the scope and timetable, but that is one of the key reasons for the report, and I am sure he will want to make his recommendations available for the new process.

Magnox: Early Contract Terminations (27 Mar 2017)
Greg Clark: I will certainly meet the hon. Lady. I am glad that she has given me the opportunity to emphasise that the work will continue as planned at all the sites. As she will know, work is ahead of schedule in the plant she mentioned. In the light of that, I will meet her to update her on the latest timings.

Written Ministerial Statements — Department for Business, Energy and Industrial Strategy: BEIS Non-Departmental Public Bodies (27 Mar 2017)
Greg Clark: I would like to inform the House that the Nuclear Decommissioning Authority (NDA) has today announced its decision to terminate its contract with Cavendish Fluor Partnership (CFP) for the management and decommissioning of 12 redundant Magnox sites (including 2 research sites) which, together with the Calder Hall reactor on the Sellafield site, formed the UK’s first fleet of nuclear...

Business, Energy and Industrial Strategy: UK Space Sector (14 Mar 2017)
Greg Clark: The UK’s space sector is world leading. A quarter of the world’s telecommunication satellites are either built here or are built with key UK components. Our recently announced draft Spaceflight Bill will enable UK businesses to enter a global market worth an expected £25 billion over the next 20 years. Our industrial strategy will ensure that we build on that and continue to...


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