Recommendations & Conclusions
11 items
4
Recommendation
Twenty-Eighth Report - The Nuclear Deco…
Not Addressed
For the new delivery model to work, it will be vital that the Department exercises strong oversight of the Nuclear Decommissioning Authority and implements the findings of forthcoming reviews into the failure of the original Magnox contract and the role of the Authority. Under the previous delivery model of outsourcing …
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For the new delivery model to work, it will be vital that the Department exercises strong oversight of the Nuclear Decommissioning Authority and implements the findings of forthcoming reviews into the failure of the original Magnox contract and the role of the Authority. Under the previous delivery model of outsourcing the decommissioning of nuclear sites to a ‘parent body organisation’ from the private sector, the Department was a further step removed from exercising oversight of the decommissioning process than it is now. Indeed, the Department The Nuclear Decommissioning Authority’s management of the Magnox contract 7 acknowledges that this led to it missing some of the problems that arose with the Magnox sites and contract. The Department tells us that its relationship with the NDA has changed, with improved oversight of both the NDA’s strategy and progress with its major projects, a dedicated team in the Department looking at the NDA, and a representative of UK Government Investments on the NDA’s own board who reports to the Department’s accounting officer. But we remain concerned about the Department’s capacity to oversee the NDA effectively, and about the number of players from different parts of Government who are involved. Key to learning lessons from the past and establishing appropriate oversight and governance will be implementing the recommendations of the Holliday inquiry into the Magnox contract and the Department’s ‘Tailored Review’ of the role of the NDA. We welcome the Department’s commitment to completing and publishing these reports as a priority, but it is frustrating and concerning that it is taking so long for these important reviews to be published. Recommendations: On publication of the Holliday report and tailored review, the Department and the Nuclear Decommissioning Authority should set out publicly what has been learnt from them and how the reports are being used to inform the development of the new delivery and governance models. In res
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Government response AI summary
The government response describes actions to improve contract management, procedures, training, and information sharing, but does not address the specific request to publicly set out learnings from the Holliday report and tailored review.
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HM Treasury
1
Conclusion
Twenty-Eighth Report - The Nuclear Deco…
Not Addressed
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department for Business, Energy and the Industrial Strategy (The Department) and the Nuclear Decommissioning Authority (NDA) on the decommissioning of the UK’s Magnox power stations and other civil nuclear sites.1
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On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department for Business, Energy and the Industrial Strategy (The Department) and the Nuclear Decommissioning Authority (NDA) on the decommissioning of the UK’s Magnox power stations and other civil nuclear sites.1
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Government response AI summary
The government response reiterates that the committee took evidence and published its report, without addressing any specific points from the committee's introductory paragraph.
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HM Treasury
10
Conclusion
Twenty-Eighth Report - The Nuclear Deco…
Not Addressed
The NDA told us about some notable achievements in relation to the decommissioning of the Magnox sites to date: for example, all 26 Magnox reactors have now been defueled, and all the fuel taken to Sellafield for safekeeping, thereby reducing by over 95% the radioactivity on the Magnox sites;18 and …
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The NDA told us about some notable achievements in relation to the decommissioning of the Magnox sites to date: for example, all 26 Magnox reactors have now been defueled, and all the fuel taken to Sellafield for safekeeping, thereby reducing by over 95% the radioactivity on the Magnox sites;18 and in Chapelcross in south-west Scotland, the NDA had overseen the largest asbestos clean-up in Europe, with thousands of tonnes of asbestos cleaned up across turbine halls, heat exchangers, and the whole industrial complex.19 It also told us about new technologies being developed by the UK nuclear industry such as an innovative robot which was developed by a company in the north-west of England. By using the robot to carry out dangerous work to remove hazardous material, exposure for humans had been reduced, which makes it both safer and more efficient because robots can spend almost unlimited time exposed to radiation. The NDA is aiming to fund similar projects in the fields of artificial intelligence and robotics to help make decommissioning work safer, and noted that there has already been interest in the adoption of some of this UK-based technology internationally, including at Fukushima.20 15 Q 74 16 Qq 39–43 17 Qq 71, 49 18 Q6 19 Q7 20 Qq 18, 19 12 The Nuclear Decommissioning Authority’s management of the Magnox contract
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Government response AI summary
The government response is an incomplete reproduction of the committee's own text and does not provide any governmental stance or additional information.
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HM Treasury
11
Conclusion
Twenty-Eighth Report - The Nuclear Deco…
Not Addressed
The NDA owns and occupies substantial amounts of land that could be returned to communities or exploited for commercial or socially beneficial use, and could provide employment in nearby communities. For example, at its Harwell site the NDA said it had been able to excavate and give 50 acres of …
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The NDA owns and occupies substantial amounts of land that could be returned to communities or exploited for commercial or socially beneficial use, and could provide employment in nearby communities. For example, at its Harwell site the NDA said it had been able to excavate and give 50 acres of land back to be used for a new vaccine manufacturing centre. The NDA is also looking at opportunities to use land from its sites for green power generation including with hydrogen plants or solar farms. The NDA is aware of more land which could be returned but faces ongoing challenges with understanding and managing the hazards.21 21 Qq 21, 76, 79 The Nuclear Decommissioning Authority’s management of the Magnox contract 13 2 Meeting the future challenges of nuclear decommissioning Shortages of the right skills
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Government response AI summary
The government response restates the committee's observation about the NDA owning substantial amounts of land with potential for community or commercial use.
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HM Treasury
12
Conclusion
Twenty-Eighth Report - The Nuclear Deco…
Not Addressed
In our 2018 report on the Magnox contract we identified that lack of commercial capability—including getting rid of the post of Commercial Director—contributed to the organisation being unable to manage the original Magnox contract effectively.22 The NDA informed us about a number of areas in which it has made improvements …
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In our 2018 report on the Magnox contract we identified that lack of commercial capability—including getting rid of the post of Commercial Director—contributed to the organisation being unable to manage the original Magnox contract effectively.22 The NDA informed us about a number of areas in which it has made improvements since then. It has, for example, strengthened the central executive team with a new commercial director, general counsel, operations director and a risk and assurance director. The NDA has also appointed a new Chief Executive of Magnox Ltd (the NDA’s subsidiary responsible for day to day management of the Magnox sites), who has, in turn, recruited a new executive team. The NDA noted that having all the sites managed in-house helps to break down barriers and improve cooperation between teams and nuclear sites to bring about more standardisation of approach, improved learning and better efficiency. Nevertheless, the NDA admits that further capability is still required in some areas.23
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Government response AI summary
The government response restates the committee's finding about past lack of commercial capability and the NDA's subsequent improvements in strengthening its executive team.
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HM Treasury
13
Conclusion
Twenty-Eighth Report - The Nuclear Deco…
Not Addressed
The Department and the NDA pointed to the increasing importance of developing skills across the industry. The NDA is taking steps to increase training opportunities to further develop technical skills that are in short supply in the UK and which are in high demand from the private sector and from …
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The Department and the NDA pointed to the increasing importance of developing skills across the industry. The NDA is taking steps to increase training opportunities to further develop technical skills that are in short supply in the UK and which are in high demand from the private sector and from projects to build new nuclear power stations, such as Hinkley Point C. The NDA told us that it has introduced a nuclear graduate scheme involving placements across the industry, which has had over 200 graduates since its introduction and 40 entrants in its most recent cohort, 46% of whom were women. The Department and the NDA stressed the need to improve skills in science, technology, engineering and mathematics (STEM) across the UK more broadly and the Department emphasised the importance of working closely with the Department for Education to ensure the commitments on skills made by government and industry in the 2018 nuclear sector deal are met.24 Departmental oversight and the new delivery model
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Government response AI summary
The government response is an incomplete reproduction of the committee's own text and does not provide any governmental comment or additional information.
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HM Treasury
14
Conclusion
Twenty-Eighth Report - The Nuclear Deco…
Not Addressed
The Department acknowledged the improvements which the NDA has made in developing its own skills and capability.25 The Department also told us that, to improve its capability to oversee the NDA’s activities, it had so far been able to retain high quality staff with relevant experience, despite the challenges of …
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The Department acknowledged the improvements which the NDA has made in developing its own skills and capability.25 The Department also told us that, to improve its capability to oversee the NDA’s activities, it had so far been able to retain high quality staff with relevant experience, despite the challenges of rewarding long service in central government, largely due to their commitment to the mission of making nuclear sites safe.26
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Government response AI summary
The government response is an exact reproduction of the committee's text, providing no governmental comment or additional information.
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HM Treasury
15
Conclusion
Twenty-Eighth Report - The Nuclear Deco…
Not Addressed
In September 2019, the NDA’s Magnox contract with CFP ended following a two- year run off period, and the 12 sites transferred to the NDA under the management of its subsidiary, Magnox Ltd.27 Under the previous model, the NDA essentially outsourced management and oversight of nuclear sites to the private …
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In September 2019, the NDA’s Magnox contract with CFP ended following a two- year run off period, and the 12 sites transferred to the NDA under the management of its subsidiary, Magnox Ltd.27 Under the previous model, the NDA essentially outsourced management and oversight of nuclear sites to the private sector. The NDA described 22 PAC’s report, summary para 4 23 Q 44 24 Qq 45, 48 25 Q 48 26 Qq 57, 65 -67, 69 27 C&AG’s Report, para 1.8 14 The Nuclear Decommissioning Authority’s management of the Magnox contract its intention to bring all of its major sites within its control rather than running them through a private sector consortium, with Dounreay in Scotland and the Low Level Waste Repository in west Cumbria being the last two major sites to be transferred to the NDA’s management upon completion of those contracts’ 12 month run-off periods. The NDA set out a number of potential advantages to the change in delivery model, including operating the sites as a family or federation of businesses and sharing lessons between sites more effectively. The NDA also said it intends to apply lessons from its experience of the run-off period from the Magnox contract to the remaining sites.28
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Government response AI summary
The government response restates the committee's description of the Magnox contract ending in September 2019 and the subsequent transfer of sites to Magnox Ltd.
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HM Treasury
16
Conclusion
Twenty-Eighth Report - The Nuclear Deco…
Not Addressed
We asked the Department if it believed it now had sufficient oversight and governance arrangements in place to oversee what the NDA is doing. The Department admitted that under its previous governance regime it had missed some of the issues that led to the failure of the Magnox contract, but …
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We asked the Department if it believed it now had sufficient oversight and governance arrangements in place to oversee what the NDA is doing. The Department admitted that under its previous governance regime it had missed some of the issues that led to the failure of the Magnox contract, but told us that the relationship between the Department and the NDA had since been transformed, with the Department now providing greater scrutiny. Since 2017, the Department has been represented on the NDA’s Board by someone from UK Government Investments (UKGI) who can alert the Department about any emerging issues, and the Permanent Secretary of the Department has access to all NDA board papers and minutes. Since 2016, the Department has also had a dedicated team looking at the NDA which has grown over that period, and which interacts with the NDA in a stronger way than before. The Department receives a quarterly performance report which goes into detail across all the NDA group’s major targets, and holds quarterly meetings with NDA officials which look at both the decommissioning strategy and policy and progress with specific projects, and the CEO of the NDA and Permanent Secretary of the Department meet separately every quarter to discuss progress.29 The NDA also runs an enhanced commercial assurance process which looks at an early stage at commercial decisions that are coming down the track, and the Department is embedded directly into that process.30
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Government response AI summary
The government response restates the committee's account of the department's perspective on its current oversight and governance arrangements for the NDA, including past issues and reported transformations.
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HM Treasury
17
Conclusion
Twenty-Eighth Report - The Nuclear Deco…
Not Addressed
We asked the Department about the progress of the Holliday inquiry into the failure of the Magnox procurement and contract which was launched in 2018, and of the Department’s ‘Tailored Review’ of the role and governance of the NDA. The Department committed to ensuring that these reports are completed and …
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We asked the Department about the progress of the Holliday inquiry into the failure of the Magnox procurement and contract which was launched in 2018, and of the Department’s ‘Tailored Review’ of the role and governance of the NDA. The Department committed to ensuring that these reports are completed and published as a priority, and said it expected the Holliday report to be published imminently and the Tailored Review by the end of the year.31 It said that the delays with the Holliday inquiry had been due to a number of legal challenges related to the inquiry, but that the Department had accepted all the conclusions of the inquiry’s interim report and the most important forward-looking actions recommended in that report had now been taken. The Department also confirmed it would comply with the recommendation of our 2018 report on the Magnox contract to write to us within six months of publication of the Holliday inquiry with progress on the implementation of the inquiry’s recommendations.32 Transparency about the scale and nature of the challenge
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Government response AI summary
The government response is an incomplete reproduction of the committee's own text and does not provide any governmental stance or update on the commitments mentioned.
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HM Treasury
18
Conclusion
Twenty-Eighth Report - The Nuclear Deco…
Not Addressed
The public is not fully aware of the challenges of nuclear decommissioning and given past problems in the industry, the public image of the sector requires some improvement.33 28 Qq 89, 90 29 Qq 55 - 57 30 Q 69 31 Qq 53–54, 32 Q 86, PAC report, recommendation 6. …
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The public is not fully aware of the challenges of nuclear decommissioning and given past problems in the industry, the public image of the sector requires some improvement.33 28 Qq 89, 90 29 Qq 55 - 57 30 Q 69 31 Qq 53–54, 32 Q 86, PAC report, recommendation 6. 33 Qq 44, 84 The Nuclear Decommissioning Authority’s management of the Magnox contract 15 It can be difficult to find, for example, information about the timescales for completing decommissioning work at specific sites and returning land to communities.34 When asked how it makes sure that where possible nuclear sites, or elements of them, can be reused during the ‘care and maintenance’ phase of decommissioning, the Department said information about developments in and around sites is often contained in broad local industrial strategies and that its own cities and local growth unit looks at which sites have high potential.35 The NDA gave a number of examples of potential projects to repurpose NDA land and property, including for hydrogen production in and around Sellafield, a potential solar farm at Chapelcross in Scotland, and a new technology site at Berkeley in Gloucestershire.36 34 Q 24 35 Qq 77–78 36 Q 76 16 The Nuclear Decommissioning Authority’s management of the Magnox contract
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Government response AI summary
The government response is an incomplete reproduction of the committee's own text and does not provide any governmental response to the observations made.
Read full response →
HM Treasury