Campbell warns nuclear power is "the ultimate stealth tax"

2.30.00pm BST (GMT +0100) Tue 20th Jun 2006

A new generation of nuclear power stations will cost taxpayers and consumers tens of billions of pounds, Sir Menzies Campbell MP, Leader of the Liberal Democrats has warned.

The Liberal Democrats say that new nuclear power, in addition to posing safety and environmental risks, will only be possible with vast taxpayer subsidies or a rigged market. They have published a new analysis of recent international experiences of nuclear power.

Sir Menzies argued instead that an alternative energy strategy based on renewables, microgeneration, energy efficiency and clean coal technology is more affordable.

Sir Menzies underscored the value of microgeneration by visiting a combined heat and power station and a fuel cell project that power a leisure centre in Liberal Democrat-run Woking Council, a Beacon Council for Climate Change.

Sir Menzies said "Every UK citizen is already paying over £1,500 to clean up the nuclear waste of the last 50 years - and that bill regularly gets revised upwards. If the Prime Minister gets his way and a new generation of nuclear power stations are built, both the taxpayer and consumer will get stung again. Nuclear power is the ultimate stealth tax."

Sir Menzies added "Evidence from abroad shows nuclear power is not competitive. Last year the US Government was forced to offer nuclear subsidies of $13.7 billion to persuade investors. The new nuclear power plant being built in Finland needed hidden subsidies through export guarantees from France, 30 year long contracts and government guarantees over future decommissioning and waste. The real question for the forthcoming energy review is, where will Blair hide his nuclear subsidy?"

Commenting on Tony Blair's attitude Sir Menzies said "There is a low carbon, non-nuclear alternative - and it was backed by the Prime Minister only three years ago. If we get serious about energy efficiency and renewables and if we invest in a decentralised energy system with local Combined Heat and Power and domestic microgeneration, there is simply no need to waste money on nuclear power. As the Prime Minister used to say, nuclear power will impose a tax on the country, costing consumers billions of pounds, distorting the market and squeezing out competition."

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Find out more details about the costs of nuclear power and the Lib Dem alternative, download our policy briefing on nuclear power .