Nuclear sell-off planned

PLANS for an urgent, whole-scale privatisation of Britain's nuclear industry are being drawn up in secret by the Treasury. They could lead to an attempt to sell off the controversial Thorp reprocessing plant.

The plans, which would also transfer Britain's oldest and most dangerous nuclear power station to British Nuclear Fuels, are causing a row between Chancellor Kenneth Clarke and Mr Michael Heseltine, the President of the Board of Trade, who argues that they will lose votes at the next general election.

Mr Clarke wants to announce the sell-off before the Easter recess and is keen to realise the money to finance tax cuts. But Mr Heseltine is trying to persuade him to hold off. The industry itself is pressing vigorously for privatisation. Mr Heseltine argues that at best there are no votes in privatising nuclear power and at worst it could lose the Government even more support at the next election.

The Government tried once before to sell off Britain's nuclear power stations in 1989, but the City took fright at the cost of treating their waste and de-commissioning old plants. The Government imposed a moratorium on the building of new nuclear power stations and set up a review of the nuclear industry. Since then the industry has greatly improved its performance.

The new privatisation plans arise from the review. Under them BNFL would take over the Magnox power stations. This would divest Nuclear Electric and Scottish Nuclear of their greatest liabilities and create a third nuclear power generating firm.

Senior sources say that at a later stage BNFL could be split into two companies. One, which would include the Thorp reprocessing plant, would be sold off: the other, which would run the Magnox stations and reprocess their waste, would continue to be owned by the State.

Under the plans Nuclear Electric and Scottish Nuclear, once relieved of the Magnox stations, would be privatised. Scottish Nuclear is campaigning to be given two of Nuclear Electric's power stations - Heysham and Hartlepool - to enable it to compete better, but the English company is resisting this.

The nuclear industry is arguing that the Government must seize the opportunity for privatisation in the next two years.

Last night Mr Bill Brett, general secretary of the Institution of Professionals, Managers and Specialists said: "The Government should publish the nuclear review and put the issue in their manifesto so that the electorate can give their view on it."