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)

Source View on Parliament website

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

Read the government response ↗ Response on the tracker

Recommendations & Conclusions

11 results

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 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 of the Authority. Under the previous delivery model of outsourcing the decommissioning of nuclear sites to a ‘parent body organisation’ from the private sector, the Department was a further step removed from exercising oversight of the decommissioning process than it is now. Indeed, the Department The Nuclear Decommissioning Authority’s management of the Magnox contract 7 acknowledges that this led to it missing some of the problems that arose with the Magnox sites and contract. The Department tells us that its relationship with the NDA has changed, with improved oversight of both the NDA’s strategy and progress with its major projects, a dedicated team in the Department looking at the NDA, and a representative of UK Government Investments on the NDA’s own board who reports to the Department’s accounting officer. But we remain concerned about the Department’s capacity to oversee the NDA effectively, and about the number of players from different parts of Government who are involved. Key to learning lessons from the past and establishing appropriate oversight and governance will be implementing the recommendations of the Holliday inquiry into the Magnox contract and the Department’s ‘Tailored Review’ of the role of the NDA. We welcome the Department’s commitment to completing and publishing these reports as a priority, but it is frustrating and concerning that it is taking so long for these important reviews to be published. Recommendations: On publication of the Holliday report and tailored review, the Department and the Nuclear Decommissioning Authority should set out publicly what has been learnt from them and how the reports are being used to inform the development of the new delivery and governance models. In res Show less

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

View Details

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

View Details

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

View Details

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

View Details

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

View Details

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

View Details

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

View Details

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

View Details

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

View Details

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

View Details

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

View Details