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US firms lobbying hard to take over Sellafield. |
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David Siddall, Whitehaven News , 30 November 2006
The up-market Renaissance Hotel, in Manchester, was the venue, as the NDA opened up the bidding war.
At stake is £5 billion of business for the first five years of the contract and, according to the NDA, an estimated profit in excess of 4 per cent.
The NDA said the sell-off of the state owned business could generate “an annual fee potential in excess of £40 million.”
Although the NDA has pledged “transparency” in the selection process, a spokesman for the NDA admitted much of the detail from bidders would be “commercially confidential” and not seen by the public.
Union leader, Peter Kane, among those at the Manchester event, said that the trade unions “did not see any concerns over pay and conditions because they are protected through the contract.”
But he said before the event: “We will be at the Manchester event, meeting the various firms. We will be showing no preferences for any particular firm.”
But he warned: “We know the type of company we don’t want. We need to check on firms’ track records in union relations, safety and environmental performance and investment in the local community.”
Asked about the pensions provision for staff, after any sell-off, Mr Kane said there had been assurances but more details were being sought over the pensions for new starters.
He said that it would be a money purchase pension scheme for new starters and “ we are still awaiting details of this money purchase scheme.”
Asked how the NDA could claim that bidding firms could earn higher profits through increased efficiency Mr Kane said: “It is rumoured they would do this by bringing work forward and through more flexibility in work practices.”
In a statement the NDA said of the Manchester event: “The NDA now starts the process of selecting a new contractor to manage its Sellafield group of sites in one of the UK’s largest ever public procurements.
The winning contractor will become the temporary owner of the Site Licence Company, responsible for the decommissioning and commercial operations at the Sellafield, Calder Hall, Windscale and Capenhurst sites.
The contractor, known as the Parent Body Organisation, will own the shares of the SLC for the duration of the contract, and will be responsible for driving performance and value-for-money for the NDA.
The contract on offer will be for an initial five years with options to extend, and will be awarded in mid 2008, to be followed by a period of transition before commencing fully in late 2008 or early 2009.
Sellafield represents around 60 per cent of the NDA’s programme, and has a turnover of about £1 billion a year.
Competition is designed to bring innovation and best practice from around the world, which in turn is expected to deliver improved performance and value-for-money.
Significant cost reductions to the overall cost of decommissioning are expected, while at the same time maintaining and improving safety and environmental performance.
In return, rewards for the successful contractor are substantial, with annual fee potential in excess of £40 million, subject to the SLC meeting challenging targets.
NDA chief executive, Ian Roxburgh, said: “We are absolutely committed to an open and transparent process to ensure a level playing field for all those wishing to bid.”
Speakers at the Manchester conference included Dr Ian Roxburgh NDA chief executive; Mike Parker BNFL Group chief executive; Jamie Reed MP for Copeland, Elaine Woodburn Leader of Copeland Council and Peter Clements on behalf of Sellafield trades unions.
The Whitehaven News understands that after the transfer of the industry new starters will only be offered a money purchase pension plan. Such schemes can leave pensioners dependant on the performance of stocks and bonds. |
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