Source · Select Committees · Public Accounts Committee
Recommendation 5
5
The Nuclear Decommissioning Authority is not doing enough to exploit its various assets, either for...
Conclusion
The Nuclear Decommissioning Authority is not doing enough to exploit its various assets, either for the benefit of local communities or the UK economy as a whole. The UK was the first country to establish a civil nuclear power generation industry and is still a world leader in nuclear decommissioning. It can point to some notable achievements in relation to the decommissioning of the Magnox sites alone, such as the successful defueling of all the Magnox reactors which has reduced the level of radioactivity on the sites by 95%, and the largest clean-up of asbestos waste to have been undertaken in Europe at Chapelcross. Furthermore, the NDA has provided advice and exported skills to other countries, including Japan in relation to the clean-up of Fukushima and the Ukraine in relation to Chernobyl. The NDA receives around £800 million a year in income from its commercial activities. Given the expertise and technologies which the NDA and the UK nuclear industry have developed over the years, there are further opportunities, in fields such as Artificial Intelligence and robotics, with export potential which could benefit the UK economy and provide jobs for people in local communities. The NDA also owns and occupies substantial amounts of land. It is encouraging to hear that around 50 acres of land at Harwell has been released and is currently home to a manufacturing centre for coronavirus vaccine. The NDA’s wider estate contains land which could be exploited for commercial and socially beneficial use and could provide much needed employment in nearby communities. Recommendation: The NDA should develop a strategy for maximising the economic benefits of developing and, where appropriate, exporting its knowledge and assets to alleviate the burden on the taxpayer. These include the skills and experience of the UK nuclear industry, the decommissioning technologies it has 8 The Nuclear Decommissioning Authority’s management of the Magnox contract developed, and the land and oth
Government Response
Not Addressed
HM Government
Not Addressed
5: PAC conclusion: The Nuclear Decommissioning Authority is not doing enough to exploit its various assets, either for the benefit of local communities or the UK economy as a whole. 5: PAC recommendation: The NDA should develop a strategy for maximizing the economic benefits of developing and, where appropriate, exporting its knowledge and assets to alleviate the burden on the taxpayer. These include the skills and experience of the UK nuclear industry, the decommissioning technologies it has developed, and the land and other physical assets the NDA holds. 5.1 The government agrees with the Committee’s recommendation. Target implementation date: Winter 2021 5.2 NDA’s forthcoming Strategy, a draft of which was recently subject to consultation, discusses the economic benefits of the NDA’s work, its support for the Nuclear Sector Deal and its strategy to support international opportunities and collaboration. 5.3 NDA’s mission is to deliver safe, sustainable and publicly acceptable solutions to the challenge of nuclear clean-up and waste management. In doing this the NDA are cognisant of the need to consider value for money to the taxpayer and the interests of the workforce and communities around its sites. 24 5.4 The NDA group has an annual budget of circa £3.3 billion of which around £1.9 billion flows through the supply chain. The main socio-economic impact generated by the NDA’s work comes from local wages and supply chain expenditure. NDA has a supply chain strategy that seeks to build commercial capability to maintain a resilient, sustainable, diverse, ethical and innovative supply chain that optimises value for money for the UK taxpayer when sourcing goods and services. There are many examples of companies within the UK supply chain developing techniques and equipment which they are then able to deploy on specialist work in other countries such as at Fukushima in Japan, and in other sectors. The NDA already supports the UK Nuclear Sector deal, the skills agenda for the nuclear industry and the Department for International Trade’s export agenda, 5.5 In addition, the NDA generates significant commercial income from its current operations (£789 million in financial year 2019-20) which includes revenue from our overseas reprocessing contracts amongst other sources. This income is used to offset some of the costs of the decommissioning programme. 5.6 The NDA will report on progress in this area in its annual report to provide greater transparency.