Twenty-Eighth Report - The Nuclear Decommissioning Authority’s management of the Magnox contract

Select Committee
Public Accounts Committee HC 653 27 November 2020
Report Status Government responded
Conclusions & Recommendations 18 items (8 recs)
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Government Response (AI assessment · 18 of 18 classified)
Accepted 7
Not Addressed 11
Government response
Treasury minutes: Government response to the Committee of Public Accounts on the Twenty eighth report from Session 2019-21 · published 25 Mar 2021
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Recommendations & Conclusions

18 results
2 Recommendation Accepted
The uncertainty affecting the Magnox sites reflects a wider uncertainty about the costs and timetable...
Recommendation
The uncertainty affecting the Magnox sites reflects a wider uncertainty about the costs and timetable of decommissioning the whole civil nuclear estate. According to the NDA’s most recent estimates it will cost the UK taxpayer £132 billion to decommission the … Read more
Government Response Summary
The government agrees to reduce decommissioning time, noting ongoing efforts and a summer 2021 target for strategy definition. It also commits to prioritising a geological disposal facility, stating a process is underway with an expected operational date by the 2040s, and is exploring near-surface disposal options.
HM Treasury
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3 Recommendation Accepted
A shortage of the right skills within the Nuclear Decommissioning Authority and across the nuclear...
Recommendation
A shortage of the right skills within the Nuclear Decommissioning Authority and across the nuclear industry remains a significant barrier to progress. In our 2018 report on the failure of the Magnox contract we were highly critical of the lack … Read more
Government Response Summary
The government agrees with the recommendation and sets a target implementation date of Summer 2021. It commits the Department and NDA to work with the Nuclear Skills Strategy Group (NSSG) to review and potentially update the existing Nuclear Skills Strategic Plan, to meet the demand for skills over the next 5-10 years.
HM Treasury
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4 Recommendation Not Addressed
For the new delivery model to work, it will be vital that the Department exercises...
Recommendation
For the new delivery model to work, it will be vital that the Department exercises strong oversight of the Nuclear Decommissioning Authority and implements the findings of forthcoming reviews into the failure of the original Magnox contract and the role … Read more
Government Response Summary
The government response describes actions to improve contract management, procedures, training, and information sharing, but does not address the specific request to publicly set out learnings from the Holliday report and tailored review.
HM Treasury
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5 Recommendation Accepted
The Nuclear Decommissioning Authority is not doing enough to exploit its various assets, either for...
Recommendation
The Nuclear Decommissioning Authority is not doing enough to exploit its various assets, either for the benefit of local communities or the UK economy as a whole. The UK was the first country to establish a civil nuclear power generation … Read more
Government Response Summary
The government accepts the recommendation for the NDA to develop a strategy for maximizing economic benefits from its knowledge and assets, setting a Winter 2021 target and committing to annual reporting on progress.
HM Treasury
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6 Recommendation Accepted
Public accountability is hindered by a lack of transparency about the scale and nature of...
Recommendation
Public accountability is hindered by a lack of transparency about the scale and nature of the challenge of decommissioning and the performance of the NDA. Nuclear decommissioning will cost current and future generations of taxpayers’ substantial sums of money and … Read more
Government Response Summary
The government agrees and commits to NDA making specific efforts in its Spring 2021 Business Plan to explain decommissioning work site-by-site with transparent dates and expenditure. Furthermore, the NDA will update its economic impact assessments during 2021 and report back to the committee.
HM Treasury
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1 Conclusion Not Addressed
On the basis of a report by the Comptroller and Auditor General, we took evidence...
Conclusion
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department for Business, Energy and the Industrial Strategy (The Department) and the Nuclear Decommissioning Authority (NDA) on the decommissioning of the UK’s Magnox … Read more
Government Response Summary
The government response reiterates that the committee took evidence and published its report, without addressing any specific points from the committee's introductory paragraph.
HM Treasury
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7 Recommendation Accepted
An informed understanding of the sites is important to develop reliable estimates of the potential...
Recommendation
An informed understanding of the sites is important to develop reliable estimates of the potential costs and duration of decommissioning each site and to support decision- making about the most efficient ways to decommission them and the order in which … Read more
Government Response Summary
The government accepts the recommendation to reduce decommissioning time and cost, with a Summer 2021 target for new strategy definition. It outlines the NDA's ongoing efforts like the 'One NDA' approach and commits to future reporting in annual business plans.
HM Treasury
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8 Recommendation Accepted
There is also an opportunity to save taxpayers’ money by accelerating the programme to create...
Recommendation
There is also an opportunity to save taxpayers’ money by accelerating the programme to create a deep storage facility, known as the Geological Disposal Facility, to store highly radioactive waste that is currently held at interim facilities at Sellafield and … Read more
Government Response Summary
The government accepts the recommendation, stating that progressing the geological disposal facility is a priority, with a process underway and an expected operational date by the 2040s. It is also exploring near-surface disposal options for less hazardous waste.
HM Treasury
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9 Recommendation Accepted
While the cost of decommissioning represents a substantial liability for the UK taxpayer, the NDA...
Recommendation
While the cost of decommissioning represents a substantial liability for the UK taxpayer, the NDA was keen to point out that it also raises substantial income—around £800m a year—through commercial opportunities including the export of advice, skills and technologies to … Read more
Government Response Summary
The government accepts the recommendation to maximize economic benefits from NDA assets, setting a Winter 2021 target. It states NDA's forthcoming strategy will address international opportunities and collaboration, with progress to be reported annually.
HM Treasury
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10 Conclusion Not Addressed
The NDA told us about some notable achievements in relation to the decommissioning of the...
Conclusion
The NDA told us about some notable achievements in relation to the decommissioning of the Magnox sites to date: for example, all 26 Magnox reactors have now been defueled, and all the fuel taken to Sellafield for safekeeping, thereby reducing … Read more
Government Response Summary
The government response is an incomplete reproduction of the committee's own text and does not provide any governmental stance or additional information.
HM Treasury
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11 Conclusion Not Addressed
The NDA owns and occupies substantial amounts of land that could be returned to communities...
Conclusion
The NDA owns and occupies substantial amounts of land that could be returned to communities or exploited for commercial or socially beneficial use, and could provide employment in nearby communities. For example, at its Harwell site the NDA said it … Read more
Government Response Summary
The government response restates the committee's observation about the NDA owning substantial amounts of land with potential for community or commercial use.
HM Treasury
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12 Conclusion Not Addressed
In our 2018 report on the Magnox contract we identified that lack of commercial capability—including...
Conclusion
In our 2018 report on the Magnox contract we identified that lack of commercial capability—including getting rid of the post of Commercial Director—contributed to the organisation being unable to manage the original Magnox contract effectively.22 The NDA informed us about … Read more
Government Response Summary
The government response restates the committee's finding about past lack of commercial capability and the NDA's subsequent improvements in strengthening its executive team.
HM Treasury
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13 Conclusion Not Addressed
The Department and the NDA pointed to the increasing importance of developing skills across the...
Conclusion
The Department and the NDA pointed to the increasing importance of developing skills across the industry. The NDA is taking steps to increase training opportunities to further develop technical skills that are in short supply in the UK and which … Read more
Government Response Summary
The government response is an incomplete reproduction of the committee's own text and does not provide any governmental comment or additional information.
HM Treasury
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14 Conclusion Not Addressed
The Department acknowledged the improvements which the NDA has made in developing its own skills...
Conclusion
The Department acknowledged the improvements which the NDA has made in developing its own skills and capability.25 The Department also told us that, to improve its capability to oversee the NDA’s activities, it had so far been able to retain … Read more
Government Response Summary
The government response is an exact reproduction of the committee's text, providing no governmental comment or additional information.
HM Treasury
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15 Conclusion Not Addressed
In September 2019, the NDA’s Magnox contract with CFP ended following a two- year run...
Conclusion
In September 2019, the NDA’s Magnox contract with CFP ended following a two- year run off period, and the 12 sites transferred to the NDA under the management of its subsidiary, Magnox Ltd.27 Under the previous model, the NDA essentially … Read more
Government Response Summary
The government response restates the committee's description of the Magnox contract ending in September 2019 and the subsequent transfer of sites to Magnox Ltd.
HM Treasury
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16 Conclusion Not Addressed
We asked the Department if it believed it now had sufficient oversight and governance arrangements...
Conclusion
We asked the Department if it believed it now had sufficient oversight and governance arrangements in place to oversee what the NDA is doing. The Department admitted that under its previous governance regime it had missed some of the issues … Read more
Government Response Summary
The government response restates the committee's account of the department's perspective on its current oversight and governance arrangements for the NDA, including past issues and reported transformations.
HM Treasury
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17 Conclusion Not Addressed
We asked the Department about the progress of the Holliday inquiry into the failure of...
Conclusion
We asked the Department about the progress of the Holliday inquiry into the failure of the Magnox procurement and contract which was launched in 2018, and of the Department’s ‘Tailored Review’ of the role and governance of the NDA. The … Read more
Government Response Summary
The government response is an incomplete reproduction of the committee's own text and does not provide any governmental stance or update on the commitments mentioned.
HM Treasury
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18 Conclusion Not Addressed
The public is not fully aware of the challenges of nuclear decommissioning and given past...
Conclusion
The public is not fully aware of the challenges of nuclear decommissioning and given past problems in the industry, the public image of the sector requires some improvement.33 28 Qq 89, 90 29 Qq 55 - 57 30 Q 69 … Read more
Government Response Summary
The government response is an incomplete reproduction of the committee's own text and does not provide any governmental response to the observations made.
HM Treasury
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