Secretary of State for Trade and Industry, Patricia Hewitt today published the Government’s conclusions for the restructuring of BNFL ahead of the Nuclear Decommissioning Authority (NDA) being established in April 2005.
Last July the Secretary of State announced that a flotation of the company was not in the best interests of the taxpayer and initiated a joint review between Government and BNFL to evaluate alternate strategies in the post- NDA market.
The review was conducted in accordance with the Government’s priority to ensure the safe, efficient and effective clean up at Sellafield and other civil nuclear sites, and to focus BNFL’s future activities more closely on the challenges of UK nuclear clean up.
The Government concluded that a new parent company will be established in April 2005 to hold those parts of BNFL that will not become the NDA’s responsibility and that the principal focus of the new parent company will be the clean-up at UK sites.
Concurrently with the new parent company being established, a new group of subsidiary companies will be set up with initial responsibility for managing clean-up operations at sites under arrangements to be agreed by the NDA.
The vast majority of the existing BNFL UK workforce will remain employed by companies that operate current BNFL sites whilst other employees will transfer into companies within the clean-up group.