UK taxpayers pay heavy cost of BNFL fuel row

["Sandy Perle" <sandyfl@earthlink.net>]

UK taxpayers pay heavy cost of BNFL fuel row

LONDON, July 11 (Reuters) - Britain on Tuesday welcomed an end to the 
deadlock with Japan over a shipment of nuclear fuel, confirming that 
taxpayers will bear the cost of compensation and repatriating the 
fuel. 

Government officials sought to distance themselves from the long-
running row which ended after state-owned British Nuclear Fuels 
(BNFL) agreed to take back the fuel and pay Japan's Kansai Electric 
Power Co 40 million pounds ($60.54 million) in compensation. 

The fuel shipment was sent to Japan with faked safety data. 

A spokesman for the Department of Trade and Industry (DTI) confirmed 
that the compensation and the potentially huge cost of returning the 
shipment under armed guard would be paid for by British taxpayers. 

``Yes. It is right that the government and therefore the taxpayers 
underwrite the BNFL business.'' 

``In this aspect BNFL will not make a profit and will have to pay 
compensation and for the fuel's return,'' the DTI official said. 
Asked who would pay for it, he said: ``Taxpayers' money.'' 

The government official added that by funding these costs, the 
British government was ensuring that BNFL could start afresh with a 
clean slate: ``It could be regarded as an investment.'' 

Prime Minister Tony Blair's spokesman said the government was pleased 
the stand-off was over but sidestepped questions over why no British 
government minister had been sent to Japan to apologise for the 
scandal, leaving it to an official instead. 

``We're very pleased it is resolved,'' the spokesman said. 

``This has always been dealt with at official level. This is 
obviously something for the BNFL and Japanese partners. It is 
primarily an issue between the two companies.'' 

TAXPAYERS PAY THE PRICE 

But despite the government's insistence that it was a commercial 
matter, BNFL is a state-owned company which is ultimately bankrolled 
by the taxpayer when things go wrong. 

Britain has also been involved in high level government contacts with 
Japan to try to resolve the deadlock. Japan always insisted the fuel 
had to be taken away. 

DTI minister Helen Liddell said plans for the return of the fuel had 
been set out in an agreement between the two governments. The text of 
the deal was not immediately available. 

``There are two aspects to this inter-governmental agreement: an 
understanding based on our discussions with the government of Japan 
and a letter from my department to Kansai Electric Power Company,'' 
she said in a written answer. 

Deputy Prime Minister John Prescott was the highest level British 
government member to go to Japan but he failed to persuade the 
country to keep the fuel shipnment. 

Government officials said it was too early to say how much it would 
cost to bring back the fuel shipment from Japan or how long it would 
take. 

But Anna Walker, director-general of energy at the British DTI, said 
it could take three years. 

A DTI official told Reuters in London that not only would the 
government have to negotiate with all countries whose waters the fuel 
will navigate, it would also need to get approval passed through U.S. 
Congress. 

``This would deal with the arrangements to ensure its safe 
transportation,'' the DTI official said. 

Moves to bring the fuel back to Britain could also trigger fresh rows 
with international environmental pressure groups. 

($1-.6607 Pound) 

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Sandy Perle					Tel:(714) 545-0100 / (800) 548-5100   				    	
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