Peter Mandelson puts UKAEA clean-up crew up for sale

The UK Atomic Energy Authority's decommissioning business will be the next piece of the nuclear industry to be privatised
Phillip Inman
guardian.co.uk, Monday 30 March 2009 20.46 BST

The break-up and privatisation of Britain's nuclear industry will complete its first phase by the summer after business secretary Peter Mandelson today agreed to sell the UK Atomic Energy Authority's decommissioning business unit.
The planned sale follows the privatisation of large swaths of formerly government­-owned nuclear generation and decommissioning facilities, leaving the regulation of the industry, research and development and some consultancy businesses in public hands.
More than 200 staff at UKAEA who handle decommissioning, waste management and clean-up of Dounreay fast breeder reactors and ageing Magnox plants Harwell and Winfrith will be part of the sale.
In a written statement, Mandelson said the government would keep a minority stake in the business and hoped to complete a deal before the end of July.
The winning bidder is expected to be in prime position to pick up work undertaken by UKAEA and decommissioning work offered separately by the Nuclear Decommissioning Authority, though the government has pledged that rival bidders will enjoy a level playing field whichever firm succeeds in buying the unit.
Following the sale, the government is expected to offer contracts for decommissioning Dounreay, Harwell and Winfrith.
Mandelson said: "The sale is recognition of the work done by management in creating a commercially viable enterprise that has become an important repository of key nuclear skills that will help ensure that the UK will remain at the forefront of the nuclear services industry."
The Tories suggested the sale was motivated by a pressing need to boost the public finances. "The timing of this sale raises concerns," said the shadow energy secretary, Greg Clark. "This sale may be being made to help the government out of a short-term cash crisis at the expense of our long-term competitiveness.
"The government has awarded contracts worth millions of pounds to UKAEA Limited for decommissioning nuclear power stations and is reliant on the company to deliver them. The government must have cast-iron guarantees that any buyer will not hold the taxpayer to ransom for further payments for decommissioning Dounreay, Harwell and Winfrith."
UKAEA chairwoman Barbara Judge said more than 500 staff would remain at UKAEA to handle IT services for the industry, property development on nuclear sites and a fledgling consultancy business.
Bidders are expected to include several private equity firms and engineering firms such as Amec and Bechtel.
US energy firm Fluor has indicated it wants to enter the UK market after teaming up with Toshiba to develop a new generation of nuclear reactors in the US. Last year it lost out to Amec on a £1.3bn contract to clean up Sellafield. In January Mandelson welcomed Fluor's plans to expand its presence in the UK with a new headquarters in Farnborough, Surrey.