Moorside nuclear plant: Calls for clarity amid Toshiba losses

Moorside nuclear plant: Calls for clarity amid Toshiba losses

Tim Farron called for the government to urgently intervene to secure investment

1 hour ago From the section Cumbria

Business and political leaders have called for clarity over plans for a new nuclear power station in Cumbria after they were thrown into doubt.

A £10bn scheme at Moorside, near Sellafield, is in limbo after Toshiba announced a review of its investment in overseas nuclear projects.

The Japanese corporation has a 60% stake in NuGen, the firm contracted to build Moorside.

It is set to report a net loss of 390bn yen ($3.4bn) in the year to March 2017.

Those losses were expected to prompt Toshiba to confirm it would withdraw from all its nuclear operations outside Japan, but no information was forthcoming when it released a statement earlier.

It is now expected to be another month before it clarifies its intentions.

Liberal Democrat leader Tim Farron, the MP for Westmorland and Lonsdale in Cumbria, said it would be a "hammer blow" for the region if Toshiba cancelled its planned investment.

Describing the nuclear industry as "the backbone of the local economy", he added such a move would risk "hurting the livelihoods of thousands of people".

Chris Jukes, the GMB union's senior officer for Sellafield, called on the government to commit to providing funding in the event of the company pulling out.

He said: "New infrastructure, new roads, better railways, demand for housing, health and school places, would all follow a brand new power plant.

"All of these can fuel employment and keep skills in the area."

Mike Starkie, the independent mayor of Copeland, told BBC Cumbria he believes Toshiba is still on board but thinks the government would step in if that was no longer the case.

"I'm very confident this project will go ahead and there's certainly encouraging noises coming from the government that if Toshiba do pull out then action will be taken to fill that void."

South Korea's Kepco is seen as a likely candidate to step in if other backers are needed.

The plant, one of the "next generation" of UK nuclear power stations, is expected to provide electricity for six million homes.

Analysis: Bob Cooper, Political Reporter, BBC Radio Cumbria

The nuclear industry is crucial to West Cumbria's economy.

More than 10,000 people work at the Sellafield reprocessing site and thousands more in the nuclear supply chain.

Moorside is seen by many as a vital investment in the area - although it is not without its detractors on environmental grounds.

Last week the Business and Energy Secretary Greg Clark was in West Cumbria and he told me the government was totally committed, despite recent uncertainty.

How far the government will go to save the deal remains to be seen.

The Conservatives have put great emphasis on their support for the nuclear industry in the campaign for the upcoming Copeland by-election.

They see it as a weakness for Labour, with Jeremy Corbyn having previously opposed nuclear power.

But now the Labour leader has come out in favour of Moorside and Greg Clark's shadow Rebecca Long-Bailey has called for the government to invest public money to rescue the project if necessary.

UKIP and the Liberal Democrats are also strongly supportive of Moorside, as are the two independent candidates standing in Copeland.

http://www.bbc.com/news/uk-england-cumbria-38967305

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