Scottish Green Party

Councils' 'Nuke-aid' is Confirmed as Illegal

Wed., November 06, 2002. 00:00.

Following reports that Scottish local authorities may be allowing nuclear operator British Energy to avoid paying its business rates1, it has been confirmed that this aid would be illegal2. Green MSP Robin Harper has this morning written to First Minister Jack McConnell demanding to know if any Labour-controlled local authorities are giving hidden financial aid to British Energy and also at what cost to local communities3.

The Scottish Green Party believes councils in North Ayrshire, East Kilbride and East Lothian could be illegally deferring the business rates of British Energy.

An opinion from the organisation Nuclear Free Local Authorities has stated that any deferment of business rates by councils is illegal under EU competition rules. Two English local authorities, Lancaster and Hartlepool, have already been implicated in the "nuke-aid" row. The Greens say the cost to local taxpayers in those English local authority areas will run to thousands, if not millions, of pounds in lost revenue.

The Scottish Greens understand that British Energy has approached Scottish Councils to ask for deferment of their business rates, but as yet enquiries to councils and have met with silence under claims of commercial confidentiality.

Green MSP Robin Harper said:

'The First Minister must step in here. These subsidies are illegal and this is no longer a matter that can be kept secret on the basis commercial confidentiality. Local people have a right to know whether councils are covertly and illegally contributing to the bail-out of nuclear power, and if so clearly it must stop.

'First the UK government bails out British Energy to the tune of £650 million, and now we discover councils may be giving millions more in illegal support. How many more millions are going to be poured down the nuclear drain rather than supporting clean and economic alternative energy sources?'

NOTES

  1. See Green News release 'Scottish councils implicated in 'Nuke Aid' scam' at www.scottishgreens.org.uk/news/2002/nov/021104nukeaid.htm

  2. Nuclear Free Local Authorities have said that if, in combination with other state aids (i.e the current UK government loan of £650 million), the amount of aid would exceed £100,000, then the rate deferral is prohibited unless sanctioned by the European Union Competition Directorate.

  3. Mr Harper has also today laid questions and a motion on the matter in the Scottish Parliament.

  4. British Energy operates nuclear power stations at Torness in East Lothian and Hunterston in North Ayrshire. Its headquarters at are at East Kilbride.

    5. CONTACT

    Steve Burgess, Researcher 0131 348 5955 or 07887 682 574

    /Release ends

    Contact the Scottish Greens' press team on 07909 933 074.