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Lord Birt, the prime minister’s personal adviser in No 10, is understood to be pushing for Turnbull to chair the review, which could lead to the construction of six new generators. Birt is an advocate of nuclear power as a way of Britain meeting its targets for cutting greenhouse gas emissions.
Ministers see Turnbull, who steps down next month, as a close ally of Birt and some have questioned whether the review could be truly independent under his chairmanship.
His appointment would also lead to environmental campaigners complaining that the government is unwilling to listen to arguments against nuclear power.
The future of nuclear power has become an important issue in Labour’s third term. Some ministers support the setting up of a committee as a strategy to defuse the political row over the question. They have been impressed by the way the pensions commission — set up to investigate long-term solutions to paying for old age — has taken some of the political heat out of the issue.
The findings of the nuclear review would — like any pensions conclusions — be difficult for the prime minister and Gordon Brown, the chancellor, to ignore.
Supporters of nuclear energy point to Department of Trade and Industry (DTI) figures which show it as a cost-effective way of reducing carbon dioxide emissions.
Some officials, like the nuclear industry itself, believe a quick decision should be made as existing nuclear plants reach the end of their operating life and require replacement. A recent internal document to ministers said: “The case for looking at the nuclear question again quickly is that if we want to avoid a sharp fall in nuclear’s contribution to energy supplies . . . we should need to act soon, given the long lead times.”
The DTI will need to wait to make its decision at least until the autumn, when Margaret Beckett, the environment secretary, is due to produce a report on the implications of global warming.
Beckett is known to be more sceptical about nuclear power than some other ministers. She believes the government’s main task should be to look at measures to deliver the 20% cut in carbon dioxide that has been pledged by 2010, and achieving further cuts by 2020, building up to a 60% reduction from 1990 levels by 2050. She supports the establishment of a European scheme for trading emissions quotas between countries.
The Treasury is believed to be highly sceptical of plans to build new nuclear stations.
British Energy, a public company, had to be temporarily bailed out by the Treasury three years ago when it almost went into liquidation.
A damning report into a leak from the Thorp reprocessing plant at Sellafield in Cumbria which emerged in May, dented the confidence of industry advocates and gave ammunition to environmental campaigners.
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