“Toshiba seeks financial help with £8bn UK nuclear project” – a knock-on for EDF/Hinkley C?

Our Heart of the South West Local Enterprise Partnership has put almost all OUR eggs into its nuclear egg basket. Not surprising when several of its board members have direct or indirect nuclear interests.

“Toshiba, the technology company at the centre of plans to build more nuclear reactors in Britain, is looking for outside help to fund its £8bn programme after a collapse in its share price.

The Japanese group is in talks with local financial institutions to support the construction of an atomic plant near the Sellafield facility in Cumbria, after running up losses following an accounting scandal.

The emergence of Toshiba’s problems will add to worries over Britain’s nuclear plans after the French energy group EDF, which plans to build the Hinkley Point C station in Somerset, dropped out of France’s CAC 40 index of leading shares.

There is widening concern in the City about the escalating costs of huge nuclear projects, which are damaging company share valuations and undermining the government’s commitment to new nuclear at a time when it has promised to phase out coal-fired power stations.

“It has become difficult for Toshiba to do this (fund the NuGen programme in the north-west of England) on its own,” one source told Reuters, which reported that Toshiba had hired HSBC bank to help find new funds.

On Monday, the Japanese financial regulator recommended that Toshiba be fined 7.37bn yen (£40m) for overstating profits and the share price of the company is down 40% since the start of the year.

Toshiba is a 60% shareholder in the NuGen project to build 3.4 gigawatts (GW) of electricity generating capacity close to the Sellafield plant, where spent fuel is reprocessed.

Neither Toshiba nor NuGen, a partnership with Engie (formerly GDF Suez) of France, was available for comment. The cost of building three reactors designed by a Toshiba subsidiary, Westinghouse, was estimated two years ago at £8bn but experts believe that figure could have at least doubled. That is in line with the price tag for Hinkley, which EDF puts at £18bn.

The 3.2GW Somerset reactors, to be built by EDF with the help of Chinese state companies, have been given the go-ahead by the UK government but the project is awaiting the final investment decision from France.

This week EDF blamed the 85% holding by the French state and lack of free float shares for its removal from the CAC index. But many analysts in the City of London have released gloomy equity forecasts on EDF, fearing Hinkley might go over budget like the company’s Flamanville reactor project in Normandy.”

https://www.theguardian.com/business/2015/dec/10/toshiba-seeks-financial-help-with-8bn-uk-nuclear-project

Nuclear watchdog to be investigated by – watchdog!

“Nuclear safety watchdog under review after series of accidents

Whitehall is investigating the nuclear regulator after The Times revealed that several serious accidents had been dismissed as posing no safety risk.
The Office for Nuclear Regulation (ONR) has come under fire from experts who argue it is too close to the industry to police it rigorously.

Yesterday an investigation disclosed that the inadvertent discharge of a torpedo at a nuclear submarine docks in Plymouth, a complete power cut at the country’s nuclear weapons base and the contamination of at least 15 workers with radioactive material were among the events it had said were of no concern.

Officials at the Department for Work and Pensions, which is responsible for the ONR, are understood to be looking into whether the regulator is doing enough to keep the country’s reactors, nuclear processing sites and military bases safe.

Although the number of publicly acknowledged accidents has been stable for more than a decade, the rate of incidents judged to be “of no nuclear safety significance” has crept up to more than one a day over the last five years.

Between 2012 and 2015 these included three road accidents involving nuclear material, a dozen leaks and at least 30 fires as well as 70 anomalies on the Atomic Weapons Establishment site at Aldermaston near Reading.

The ONR has said that all of its safety classifications followed international guidelines and insisted that it remained a robust and independent regulator.

Nuclear experts, however, called on the government to launch a review. Stephen Thomas, emeritus professor of energy policy at the University of Greenwich, said the news had reinforced his suspicions that “the first priority for the ONR is not to frighten the horses”.

He said the body had previously ignored warnings about the safety of extending the lifespan of the AGR, an old reactor design that is still in use at seven sites in the UK, as well as the reliability of the newer EPR model, the latest version of which is due to be installed at Hinkley Point C.

“Ironically, since they became an independent body rather than being part of the Health and Safety Executive [in 2014], they seem to have got worse,” Professor Thomas said. “Independence is just a cheap and easy way for government to wash its hands of its rightful responsibility.

“Independent regulators must be accountable to the public and if it is not through a democratically elected government, who is it through?”

Earlier this year the ONR appointed as its chief executive a career civil servant with no background in nuclear engineering. David Toke, reader in energy politics at the University of Aberdeen and a member of the Nuclear Consulting Group, said this suggested that nuclear safety issues were a “low priority” for the organisation.

“Of course there should be more attention to this issue and a discussion about whether the de facto slide towards less nuclear safety in the UK is a good one,” he said.”

© Times Newspapers Limited 2016

Sellafield nuclear power workers’ pension fight puts all plants at risk of strikes

Yet another problem for our beleaguered Local Enterprise Partnership?

“Serious industrial unrest” at Europe’s biggest nuclear site could threaten the Conservatives’ chances of winning a forthcoming byelection, unions have warned.

The byelection in the marginal Cumbrian seat of Copeland has been described as “Theresa May’s to lose”.

But the Conservative candidate hoping to overturn Labour’s 2,564 majority will have to explain to thousands of workers at the Sellafield nuclear reprocessing site why the government is trying to downgrade their final-salary pension scheme.

Trade unions representing many of Sellafield’s 10,000 workers have written to the government warning they cannot support either of the options being considered.

The Guardian has seen a letter sent shortly before Christmas to Lady Neville-Rolfe, minister of state at the business department. It comes from the Prospect union, which represents more than 5,000 Sellafield engineers and specialists.

The letter, signed by Prospect’s deputy general secretary, Dai Hudd, on behalf of his union, the GMB, Unite and Aslef, tells the minister “serious industrial unrest” cannot be ruled out by workers employed by the Nuclear Decommissioning Authority.

The NDA is the public body that owns Sellafield, a huge site in Copeland that processes nuclear waste from the old Windscale nuclear power station, where a fire in 1957 caused the UK’s worst nuclear accident.

It says: “Employees across the NDA estate fought hard to secure the statutory pension protections that currently apply. There will be an understandable adverse reaction with any proposals that trample over those protections.

“They will certainly not respond well to a raid on their pension benefits intended to achieve arbitrary savings agreed between the NDA and the Treasury, and agreement to which the workforce and their representatives played no part.

“If the NDA proceeds with its proposed consultation in its current form there will inevitably be a significant reaction from the members affected. The likelihood of serious industrial unrest cannot be ruled out. …”

https://www.theguardian.com/uk-news/2016/dec/28/sellafield-tory-conservative-byelection-cumbria-unions-copeland

East Devon Alliance: EDDC relocation “at any cost”

“East Devon District Council (EDDC) is leaving Sidmouth for new premises in Honiton and a renovated Exmouth Town Hall.

The latter is now vacant, but it will need work including a new boiler, rewiring and the removal of asbestos – renovations now estimated at £1,669,000, up from £1million in March 2015. [Mostly caused by EDDC doing their estimates and announcing projected estimated costs before commissioning a full structural survey which revealed nuerous expensive essential upgrades such as wiring, heating and insulation]

EDDC cabinet members last week agreed to accelerate the refurbishment so some key staff can relocate as early as November 2017.

Councillor Cathy Gardner told the Herald: “This truly is relocation at any price, because council tax payers will pick up the bill.”

The cabinet meeting heard that a new planning application to redevelop EDDC’s current HQ Knowle could be six months away or more after it refused PegasusLife’s bid for a 113-home retirement community earlier this month. The developer is yet to reveal if it will appeal the decision but the £7.5million it offered was intended to help fund the authority’s £9.2million [at the last estimate] relocation project.

Cllr Gardner said the project was initially sold to councillors as ‘cost neutral’ but is now costing taxpayers ‘over £2million and counting’ and cash will have to be borrowed. [This does not take into account building new offices for the EDDC Estates Department at Sidmouth’s Manstone Depot]

She added: “Proceeding with the refurbishment of Exmouth Town Hall weakens the bargaining position of the council with any purchaser of the Knowle – they know that the council is desperate to secure a sale.

“The cabinet approved this extra cost for Exmouth Town Hall without seeing an up-to-date report on the budget for the project overall. They have approved an increase in ignorance of the total costs.”

An EDDC spokeswoman said: “The council remains committed to relocating the rest of its staff into fit-for-purpose offices as soon as possible, despite the recent planning application for Knowle being rejected. The current budget and income projections for the overall project – taking into account both Exmouth and Heathpark – remain balanced. The council has a continued and reasonable expectation that relocation from Knowle will show significant savings compared to remaining in Sidmouth.

“The financial case will be tested again, as it was in March 2015 when the council decided to relocate.”

The decision was ratified at a full council meeting on Wednesday.”

http://www.eastdevonalliance.org.uk/in-the-press/20161228/sidmouth-herald-claims-eddc-is-relocating-from-sidmouth-at-any-cost/

“Downbeat Bovis to fall short of home build target”

“Bovis Homes Group PLC (LON:BVS) has cautioned new house sales this year will be lower than expected due to completions in December falling short.

The total for the year will now be between 3,950 to 4,000, with slower than predicted building times pushing 180 homes due to complete into the next trading year.

Total revenue in 2016 will still top the £1bn mark, but now be in a range between £1.04bn and £1.06bn ((£945mln) with profits within the previous forecast range of £160mln to £170mln (2015:£160.1 mln).

Prices this year have risen 10% from 2015’s £231,600, driven by improved mix and increased underlying market pricing, Bovis added.

Shares fell 3.5% to 825p.”

Source: Proactive Investors newsletter

“‘Cameron’s Cronies’ backlash: Nominated peers could have to prove they have ‘record of significant achievement’ “

(Un)fortunately, this will not include Hugo Swire – Cameron’s Old Etonian contemporary and holiday companion – who was only given a knighthood. OK for impressing social climbers but offering no further political influence.

“Theresa May’s ethics adviser has suggested aides and party donors nominated for peerages should be forced to prove their suitability in the wake of the ‘Cameron’s Cronies’ scandal.

Lord Bew, chairman of the Committee on Standards in Public Life, told The Telegraph the idea of putting political appointments through rigorous interviews should be considered.

The crossbench peer said his committee was “very interested” in tighter safeguards to ensure that only those suitable to enter the House of Lords are picked.

However he warned that peers selected by the Prime Minister should not face identical criteria to those picked for the crossbench and said parties must be consulted on any change.

The reforms – which would amount to the biggest shake-up in the selection of peers for a generation – have been gaining traction in Parliament in recent weeks. …”

http://www.telegraph.co.uk/news/2016/12/27/camerons-cronies-backlash-nominated-peers-could-have-prove-have/