UK nuclear decommissioning debacle costs government nearly £100m

The government has been forced to pay nearly £100m in a settlement with two US companies for mishandling the way it awarded a £6.1bn nuclear decommissioning contract.

Ministers have ordered an inquiry headed by the former boss of National Grid to find out why the procurement process was so flawed. Labour said the payout showed “dramatic levels of incompetence”.

By cancelling just two years into a 14-year contact the government has shown dramatic levels of incompetence in the procurement process of this deal.

“British tax payers who stand to lose nearly £100m should be asking themselves not just whether they are willing to put up such ineptitude but also whether the government actually has a well thought out and long term nuclear decommissioning strategy.”

Unions said they were concerned at any potential job losses as a result of the contract ending early. 

Mike Clancy, general secretary of Prospect, said: “This is an extraordinary situation given the scale and importance of the Magnox contract to the UK nuclear industry.

“The public, and our members, will want reassurance that the termination process and uncertainty over the future of decommissioning will not lead to standards deteriorating or the loss of UK expertise.”

The Unite union said the financial mess involved in awarding the contract showed the clean-up project should be taken into public ownership.

 

To read the full Guardian article: https://www.theguardian.com/business/2017/mar/27/uk-nuclear-decommissioning-debacle-costs-government-100m