The reaction to a nuclear future

Last week's Energy White Paper set out the government's long-term vision of how to keep the UK running on a full tank.

It kick-started a five-month consultation process on the building of more nuclear power stations and contained an undertaking to treble the amount of energy from wind and waves.

Broadly good news for the construction industry. But contractors poring over the detail would have been lucky to find any. While the sentiment was welcomed by most in the industry there was a call for more hard facts.

A spokesman for the Major Contractors Group (MCG) put it bluntly: "This White Paper is very light on detail and meat."

The Civil Engineering Contractors Association (CECA), another group set to benefit from the nuclear push, was similarly guarded in its welcome. Director Rosemary Beales said: "Any national policy framework that sets out the UK's key infrastructure needs for the next 10 to 25 years must be backed up by a long-term, detailed programme for investment in transport infrastructure and other keys areas such as energy.

"Contractors need this so they can invest in technology, skills and resources to deliver the nation's needs."

National Framework

The Royal Institute of Chartered Surveyors (RICS) agreed and said the decision to invest in nuclear power cannot happen in isolation. RICS public policy officer Nadia Nath-Varma said: "Any decision to build nuclear power stations must be part of a national infrastructure framework so that decisions can be integrated into a wider, holistic development plan."

The MCG spokesman went further: "It shows a lack of leadership from the government as this paper just leads to yet more consultation. What we need is a partnership with the government so that we have plenty of forward notice to enable the industry to plan its programmes in advance. We need to know what the deal flow is. We are ready but we are waiting to hear from the government."

Not all were critical of the government though. Costain group business development director Stephen Wells said it was too early for fine print, due to uncertainty surrounding European trading standards on carbon emissions.

He said: "The government has to be careful because trying to work out a financial model is difficult when the cost of carbon still hasn't been factored in as a parameter. That's why the White Paper appears light on detail."

Elsewhere, there were the predictable reactions from either side of the debate. The Nuclear Industry Authority (NIA) backed the plan. Chief executive Keith Parker said: "A diverse energy mix is right for the UK and the White Paper reflects that. Nuclear must be part of the mix, we cannot hope to reduce emissions without nuclear's contribution of 20% low-carbon electricity."

And on the other side of the fence, Greenpeace was just as quick to condemn the move towards nuclear. Greenpeace director John Sauven said: "If ministers go down the nuclear route they will strangle the new, clean energy technologies of the investment and political support they need. Reaching for nuclear power to fight climate change is like an obese person taking up smoking to lose weight."

Goverment Commitment

The problem that contractors seem to have with the renewable energy argument is that the picture is still hazy. CECA head of external and public affairs Phil Morgan said contractors were reluctant to commit while the government's own commitment was uncertain.

Wells said it was a problem of market volume. "In terms of UK GDP growth, it's limited. We're pleased it's part of the mix but the problem is that the technology drivers for renewable energy are new and scaling existing technology is another problem in itself."

The Environmental Services Association (ESA) believe the balance could tip in favour of renewable energy if the government was more forthcoming on detail.

ESA chief executive Dirk Hazell said: "We already provide a third of the UK's genuinely renewable electricity and could do much more if the government promptly aligns the Energy White Paper with prospective planning policy in the forthcoming sector national policy statement."

Meanwhile, housebuilders broadly welcomed the green push. Imtiaz Farookhi, chief executive of the National House-Building Council, said: "We have been tasked with delivering on the government's zero-carbon target by 2016. The White Paper's aims to increase the levels of renewable energy sources will be central to achieving this aim, but only if greater emphasis is given to the issue of carbon offsetting."

The Way Forward

Most agree last week's planning White Paper will ease the way forward. Farookhi said one went hand in glove with the other. "We hope that by the 2016 zero carbon date the impetus to speed up and streamline the planning process will deliver the necessary major energy infrastructure."

Beales added: "A clear national policy framework and an independent commission on planning made up of leading experts will not just bring quicker decisions on major infrastructure projects, it will bring better decisions.

"By contrast, contractors have been waiting ten years for the government to provide leadership on energy."

UK power generation by fuel in 2006

Coal: 37%

Gas: 36%

Nuclear: 18%

Renewables: 4%

Oil and other: 5%