Nuclear Decommissioning Authority and Nuclear Transport Solutions Project

My noble Friend Lord Vallance, Minister for Science, Innovation, Research and Nuclear, has today made the following statement:

I have laid before Parliament a departmental minute describing the contingent liability that allowed the Nuclear Decommissioning Authority and Nuclear Transport Solutions to carry out a project to remove and transport a quantity of legacy civil nuclear material to the US from Venezuela.

It is normal practice, when a Government Department proposes to undertake a contingent liability in excess of £300,000 for which there is no specific statutory authority, for the Minister concerned to present a departmental minute to Parliament giving particulars of the liability created and explaining the circumstances.

Given the sensitivities associated with the project, the Department for Energy Security and Net Zero informed the chairs of the Public Accounts Committee and the Energy Security and Net Zero Committee in confidence of the Department’s intention to take on an indemnity to allow the Nuclear Decommissioning Authority and Nuclear Transport Solutions to deliver the project.

The indemnity was required to cover any residual risk that was left between commercial insurance and the United States of America’s Price-Anderson Act. The maximum potential liability was capped at £10 billion. The risk of this indemnity being relied upon was deemed to be very low. NTS operate a unique maritime transport capability and have done for half a century. They have had no significant safety incidents over that time.

The UK had received requests for assistance from both the United States and the International Atomic Energy Agency which had in turn received a request for assistance from the de facto authorities in Venezuela. The UK’s main contribution was the provision of a purpose-built vessel from Nuclear Transport Solutions to transport the material by sea. The arrival of the material in the US represents the conclusion of the UK assistance to this project.

The Treasury approved this proposal for the contingent liability in principle.

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