Isra-Mart srl:Clegg hints at UK nuclear rethink

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Deputy Prime Minister Nick Clegg has given the clearest indication yet that the UK may be forced to delay plans for a new generation of nuclear power plants in the wake of the ongoing nuclear crisis in Japan.

Speaking to reporters during a trip to Mexico, the Liberal Democrat leader said that the likely increase in liabilities faced by nuclear developers could make it difficult for them to build new reactors in the UK without recourse to public subsidy - a condition that the coalition government has insisted must be met if it is to approve new power plants.

"We have always said there are two conditions for the future of nuclear power: [new plants] have to be safe, and we cannot let the taxpayer be ripped off," he said.

"We could be in a situation now where the potential liabilities are higher, which makes it more unlikely to find private investment."

The comments are the clearest indication yet from a senior figure within the coalition that the crisis in Japan could force a rethink in the UK's nuclear policy.

In the immediate wake of the disaster at the Fukushima nuclear power plant, Energy and Climate Change Secretary Chris Huhne insisted that no decision on the UK's plans would be made until a comprehensive review of the incident and its implications for UK facilities had been completed.

However, Clegg's comments will further fuel fears that the long-term impact of the crisis on liability costs for developers will increase pressure on the government to subsidise the construction of new reactors or block them from being built.

The disaster could also have political implications for the coalition government as the Lib Dems are traditionally opposed to nuclear power, and are adamant that new reactors receive no specific subsidies, while many Conservative ministers are committed to delivering a new generation of nuclear power plants.

Meanwhile, fears are mounting that workers at the Fukushima plant are losing the battle to prevent a major radiation leak.

Government officials confirmed yesterday that seawater near the plant has reached a higher level of radiation than previously reported.

Experts maintain that the chances of a repeat of a Chernobyl-scale disaster remain remote, but concerns are growing that contaminated material from the number two reactor has leaked onto the floor of the drywell.

Plant operator Tokyo Electric Power (Tepco) has now confirmed that it will decommission the four damaged reactors at the plant, and is considering whether to cover the reactors with a special material designed to prevent further radiation leaks.

There were also reports yesterday that the Japanese government is considering taking a majority stake in Tepco.