Tags

, , , , , , , , , , , , , , , , , , , , ,

The UK government has just decided to remove private contractor Nuclear Management Partners (NMP), Ltd., as overall manager of the Sellafield site, and apparently let management revert to the government’s NDA, thus removing one layer of private bureaucratic expense. Or, at least kind of, sort of: https://www.gov.uk/government/news/future-management-of-sellafield-announcement It’s not so clear. It may simply be a restructuring of patronage, a pre-election PR stunt, and/or an attempt to cast aside environmental standards, in the interest of speed.

The government entity called the Nuclear Decommissioning Authority (NDA) seems to be an overinflated bureaucracy in its own right, especially if the salary of its head, John Clarke, is indicative. He makes more than Areva’s Luc Oursel did and almost twice as much as President Obama. All three men are government employees.
Sellafield Sites Ltd Consortium http://www.sellafieldsites.com/profile/

A little over two years ago, a UK parliamentarian compared Sellafield to “a nuclear slum-perhaps the biggest nuclear slum in Europe.” He seems to have a point, doesn’t he? Slum Lords make a lot of money off the backs of the poor, and the majority of people in the UK are remarkably poor.
Sellafield B30 The Ecologist
Sellafield B-29 Facility - The Ecologist
See these and more: http://www.theecologist.org/News/news_analysis/2611216/leaked_sellafield_photos_reveal_massive_radioactive_release_threat.html

According to “The Daily Mail” (29 June 2013) John Clarke, CEO of the government’s Nuclear Decommissioning Authority (CEO) had a base salary of £460,000 and got another £48,000 a year to pay for a second home in London. (He’s apparently from near Cumbria, not London). That is, 508,000 British Pounds Sterling or approximately US $770,554. His predecessor, Tony Fontain was paid almost as much, and was the most highly paid bureaucrat (“Civil Servant”): http://www.theguardian.com/society/2011/aug/02/francis-maude-end-lucrative-public-pay. One should add that Prince Charles and the Queen get more, perhaps setting a bad example?

How much do the many other executives at the NDA get paid? Are the Board members paid? How much?

To better put this outrageous amount in perspective, the former CEO of Areva, Luc Oursel, is reported to have had a total remuneration of 450 000 € in 2013, or approximately US $529,661. French State owned Areva is the largest, or second largest, nuclear company in the world, and has approximately 250 subsidiaries throughout the world. http://fr.wikipedia.org/wiki/Areva

Areva was part of the NMP private sector consortium, which was just fired as managers due to cost overruns. And, yet, Areva’s CEO made less than the CEO of the NDA! Is the NDA more out of control than Areva? A look at the CEO salary, and cost overruns, suggests that the NDA may well be more out of control than Areva. Areva is in deep trouble for having allegedly lost 3 billion euros in the Uramin scandal. The UK Nuclear Decommissioning Authority appears to have lost much more, and will surely continue to do so, most likely while endangering public safety.

The most highly paid US bureaucrat-“Civil Servant” is the President ($400,000), at almost half of John Clarke’s salary, but quickly drops off to less than $200,000. The cost of living in the Washington DC area, where many US bureaucrats live, is high; the cost of living in Paris is high; the cost of living in Cumbria is not. It’s the cheapest in the UK because no one wants to live near Sellafield. And, hazard pay needs to be for those actually cleaning up the nuclear waste.

Parliamentarian Austin Mitchell remarked to this very same John Clarke, subsequent to a visit to Sellafield: “First of all, I want to thank you for the tour this morning,… But, I think it was a cunning plot to make us more sympathetic to your situation and the Nuclear Decommissioning Authority, because it showed us, I think, what a huge job you have there. It is something that seems to me like a cross between science fiction and a nuclear slum-perhaps the biggest nuclear slum in Europe. There is a huge problem in clearing that up and what worries me is that you have a very difficult job in controlling the costs.” © Parliamentary Copyright, OPL, 26 November 2012 http://www.publications.parliament.uk/pa/cm201213/cmselect/cmpubacc/uc746-i/uc74601.htm [2] (Emphasis added; See our notes at very bottom of post.)

From PowerInfo, part of the Nuclear Spin project of Spinwatch:
Nuclear Decommissioning Authority

The Nuclear Decommissioning Authority was set up in 2005 by the Government to oversee the enormous legacy of Britain’s nuclear waste.

Background

In 2005, the government reorganised British Nuclear Fuels Ltd plc (BNFL). The decommissioning business was taken on by the newly established Nuclear Decommissioning Authority (NDA) and the remaining businesses were sold off to other departments such as the Ministry of Defence and the Department of Energy and Climate Change (DECC). BNFL’s assets included the £2.3 billion Thorp plant, which processes used fuel, and the £490 million Sellafield Mox plant (SMP), built to recycle fuel.

The NDA is a non-departmental public body created in April 2005 under the Energy Act 2004 to oversee Britain’s “nuclear legacy”. Its core objective “is to ensure that the 20 civil public sector nuclear sites under its ownership are decommissioned and cleaned up safely, securely, cost effectively and in ways that protect the environment.” [1]

The NDA’s annual budget as of 2012/13 is £3 billion. Half of this is spent with the supply chain. [2]

A £70 billion clean-up bill

In March 2006, the NDA announced that the nuclear waste clean-up programme could cost more than £70bn, some £14 billion higher than previously thought.[3]

Criticism and controversies

Weakness in oversight
In November 2012, a report from the National Audit Office criticised the NDA’s “weaknesses” in its oversight of multi-billion pound contracts to clean up Sellafield Ltd, the “UK’s largest and most hazardous nuclear site”, parts of which “pose significant risks to people and the environment”.[4]

Bad deal for taxpayers
In February 2013, the House of Commons Public Accounts Committee published a damning report on the NDA. The committee’s chair, Margaret Hodge, said:
“Taxpayers are not getting a good deal from the Authority’s arrangement with Nuclear Management Partners. Last year the consortium was rewarded with £54 million in fees, despite only two out of 14 major projects being on track. All payments to Nuclear Management Partners and, indeed to its constituent companies, need to be strictly controlled and determined by the value gained, so that payments are not made where companies have not delivered.”[5]

The report criticised both the NDA and Sellafield Ltd’s management. “Recent performance has not been satisfactory” it said, adding that both organisations “must act with real urgency and improve project management to tackle the risks on the site in good time.” It was also critical of payments made by the NDA for ‘reachback’ – its term for staff being seconded from Nuclear Management Partners to Sellafield Ltd. It said:
The Authority has not been able to demonstrate what value it is getting for the payments made to Sellafield Limited. In 2011-12, the Authority paid out £54 million in fees, £17 million for ‘reachback’ staff and £11 million for executive staff seconded from Nuclear Management Partners. Sellafield Limited also awarded contracts to Nuclear Management Partners’ constituent companies worth some £54 million in 2011-12. That means, in effect, that those who let contracts awarded their own constituent companies contracts, which raises concerns about fair competition and value. The Authority should ensure all payments are linked to the value delivered and that payments are not made where companies have failed to deliver. It should also routinely provide assurance on the operation of its controls over payments for Nuclear Management Partners’ constituent companies.

The report revealed that 16 executives from NMP had been seconded to Sellafield at a cost of £11m in 2011-12 – an average of £690,000 per person. One director was paid just over £1.2m.[6]

The biggest nuclear slum in Europe?
After a tour of Sellafield, one MP from the Public Accounts Committee, Austin Mitchell, described the site as a “nuclear slum”. He said: “It is something that seems to me like a cross between science fiction and a nuclear slum — perhaps the biggest nuclear slum in Europe”.[6]

NDA secretly discussed going pro-nuclear
In 2008 the NDA secretly discussed making the controversial decision of actively promoting a new generation of nuclear power plants, even though the Agency is meant to be completely neutral. NuclearSpin obtained documents under the Freedom of Information Act prepared for a meeting between NDA managers and its PR consultants, Bell Pottinger in October 2008.

Under its “position on key issues”, the NDA sets out its policy on “new build” and asks: “how much longer is it sustainable to hold a neutral position? What is needed is clarity. What are the implications, legal and reputational and positioning wise of being pro new build”. The document then warns that this issue is of real concern “as the wrong answer to a question could trigger legal / Judicial Review possibilities from the antis.” [7]

The documents were prepared in preparation for a “High Level NDA Communications Strategy” that took place in December 2008, mapping out the NDA’s vision from Autumn 2008 until March 2010 as well as the organisation’s vision until 2020.

Realising their mistake in sending out the document, the NDA sent an agreed record of the NDA/ Bell Pottinger discussions, with the above text removed. [8]
Also removed was a draft of a “user friendly story of the NDA so far”. This included the sentence: “We recognised that while the nuclear industry has many strengths in terms of its technology and safety record, it also has weaknesses – namely, a tendency to be secretive and insular and, at times, of being guilty of intellectual arrogance.”

People

The Board
Stephen Henwood – Chairman. Former senior executive at BAE Systems (left BAE 2006)[9]
Janette Brown – Managing Director at Santander[10]
Patrick Dixon – former BP executive; Expert Chair for the Office of Carbon Capture and Storage) at the Department of Energy and Climate Change[11][12]
Murray Easton – advisor to the Ministry of Defence and former Managing Director of BAE Systems[13]
Chris Fenton – Group Strategy and Marketing Director for Amey plc[14]
Alistair Wivell – former Group Managing Director of Balfour Beatty plc[15]

Previous board members included:
Sir Anthony Cleaver – Chairman. Ex-Chair of UKAEA[16]
Tony Cooper – Former chair of the Nuclear Industry Association[17] [18]

Executives
John Clarke – Chief Executive of the NDA since June 2008, previously Managing Director of International Nuclear Services Limited (INS). In this role he managed the transition of INS from a subsidiary of Sellafield Limited to a wholly owned subsidiary of the NDA. He also sits on the boards of Britain’s Energy Coast (as the NDA’s representative member) and of Pacific Nuclear Transport Limited. [19]
Mark Lesinski – Chief Operating Officer, previously Managing Director of Magnox South Limited, owned by EnergySolutions EU Ltd[20]
David Batters – Chief Financial Officer, previously at BAE Systems[21]
Adrian Simper
Sean Balmer
Jon Phillips
Jim McLaughlin

The revolving door
The NDA’s senior executives have included senior figures from within the nuclear industry including BNFL or those who were closely involved from a regulatory perspective:
Richard Mrowicki – Head of Stakeholder Relations – ex-Deputy Director, Liabilities Management Unit, DTI and ex-BNFL where he was involved in stakeholder relations. [22] [23]
Richard Waite – The Engineering Director – Ex-BAe Systems. Before he joined the defence industry in 1998, Waite spent 18 years working in the civil nuclear industry, including Director of Projects for Nuclear Electric, the organisation that procured, constructed and ran the UK’s nuclear power plants. [24]
David Hayes– Strategy and Commercial Director. Ex-DTI. Hayes was “at the forefront of work to establish the NDA”. Been heavily involved in nuclear issues, including reviewing BNFL’s corporate strategy and revised MOX plans as well as the privatisation of British Energy.
Richard Griffin – was Nuclear Coal and Liabilities Unit at the DTI who helpled set up the NDA. [25]
Lawrence Williams – Nuclear Safety and Security Director – Ex- Chief Inspector of Nuclear Installations and Director of the Health and Safety Executive’s Nuclear Safety Directorate.
Mark Leggett- Ex-John Brown, Bechtel and Aker Kvaerner.

PR and lobbying operations

Internal
To spin its case, the NDA brought in high profile PR experts who are used to fighting controversial schemes. In 2005 it hired Jon Phillips, the ex-head of communications for Heathrow Airport to be its head of communications. Phillips led BAA’s successful campaign for a fifth terminal at Heathrow.[26]
The NDA also has a PR team based in Cumbria headed by Bill Hamilton ex-director at Grayling and ex-public affairs director at Safeway, and more recently group public affairs director for Transport for London.[27][28]

External lobbyists
In 2011 and 2012 Luther Pendragon was the declared public affairs firm handling the NDA’s account.[29]

The NDA previously hired Bell Pottinger Communications to run its PR led by Chime Communications division chairman Kevin Murray. Also involved were Bell Pottinger Public Affairs director Tim Walker and Corporate & Financial director Mark Herbert. The account was said to be worth £100,000.[30]

In November / December 2005 Private Eye revealed that Bell Pottinger was receiving £8,000 a month to give strategic advice to the NDA. The Eye noted:
“Why is the Bell Pottinger PR firm passing on potted biographies of MPs focusing on their supposed attitude to nuclear power to the Nuclear Decommissioning Agency (NDA)? The NDA’s job, after all, is to clean up the mess left by the old atomic generation, not to promote new nuclear power stations.”
The Eye continued: “The files certainly give the impression that Bell Pottinger thinks the NDA is part of the cosy nuclear club rather than a body charged with sorting out some of the worst problems created by the industry. In its bidding document Bell Pottinger emphasised that its chairman Kevin Murray ‘worked on the BNFL account during a tumultuous four-year period’. It also said Bell Pottinger director Tim Walker was a ‘former special adviser to Jack Cunningham’ when he was a very pro-nuclear MP and spent ‘more than a decade closely involved in the politics of the nuclear industry’. [31]

Bell Pottinger Experts in spin for the nuclear industry
Using the Freedom of Information Act, NuclearSpin has obtained a copy of Bell Pottinger’s pitch to the NDA. It underlines the extent of the company’s involvement with the nuclear industry. It states that Bell Pottinger’s consultants “have worked in a variety of capacities with the nuclear industry. These include:
Providing strategic advice and support for the Chairman and Chief Executive of BNFL including crisis management
Advising BNFL on corporate and financial communications
Developing day-to-day public affairs programmes for BNFL and the BNIF
Working with Parliamentarians with interests in the nuclear industry
Monitoring and tracking nuclear issues ranging from Parliamentary committees to public enquiries
Directly managing the in-house communications for the UKAEA and AEA Technology through privatisation
Briefing and rehearsing industry executives appearing before Select Committees.” [32] [33]

The NDA’s briefing paper for potential PR consultants boasts that the “NDA is not unique in being an organisation committed to open and transparent engagement with stakeholders, but it may well be the first organisation that has such objectives built in to its statutory requirements”. Nevertheless, Bell Pottinger’s successful pitch includes:
“Advising on the handling of particular announcements identifying the issues and bear traps in advance, advising on messaging, media strategy and tactics, questions and answers”
“Advising on an appropriate contact programme ie who are the journalists that should be courted, what are their issues, how best to handle them”
“Providing off the record information”. [34] [35]

‘Off the record, we’re open and trustworthy’
Minutes of meetings between Bell Pottinger and the NDA revealed what the PR company did after it won the contract. It told the NDA that its approach with the media “should be to establish credibility and claim high ground, eg around legacy handed to future generations, job preservation”. Bell Pottinger agreed to provide “analysis of key players and their positions in relation to the industry” (though this was later shelved) and run a briefing programme aimed at national newspaper editors to “explain the NDA and build a sense independence, trust, credibility and openness”. Even though these briefings were led by the NDA head Anthony Cleaver and supported by Jon Phillips, Bell Pottinger recommended that they “should be off the record”. [36] [37] [38]

Bell Pottinger was also paid to approve the NDA’s submission to a House of Commons Trade and Industry Committee hearing (see below), and coach NDA executives on what they should tell the committee’s MPs. Minutes of a meeting between Bell Pottinger and the NDA, dated 13 January 2006, noted: “Evidence was being drafted for the House of Commons Trade and Industry Committee, JP (Jon Phillips of the NDA) to pass to TW (Tim Walker of Bell Pottinger) for comments. It was agreed to arrange a rehearsal to be arranged when Committee dates have been set.” [39]

Another document suggests that the NDA was interested in how public perception of the safety of nuclear power could be changed. Bell produced “an assessment of the perception of the Caithness region created by media and online sources” for the NDA. The introduction notes: ‘Work is underway to stimulate the growth of new business in the Caithness area of the North Highlands, partly to compensate for the future loss of jobs as a result of the decommissioning of the Dounreay nuclear site’ and adds that ‘the external perception of what it is like to live and work in Caithness will be of critical importance’. [40]

The study finds that in the national press, ‘sources created the following perceptions:
A variety of concerns over the risks associated with nuclear activity indicate that this is an undesirable place to work and live. On a site with a history of proven and suspected safety problems, the receipt of high-risk material from Georgia and suggestions of Dounreay as a major terrorist target do not bode well for the area. The contamination of workers (2000) and discovery of radioactive particles on the beach near the plant suggest that the region is at a considerable risk from nuclear activity. There have been investigations into the links between nuclear plants and cancer clusters (1996) and the suggested link with child cancers (2005). A major local landowner has been sufficiently concerned by the emission of radioactive material that he has sued the Dounreay plant. Tourists may be at risk from radioactive particles and golf courses have been forced to close due to the risk. Dounreay was formerly a popular beach, though ruined aesthetically by the erection of the plant. The waters may contain ‘nuclear nasties’ causing meningitis, ear and kidney infections. The plant is an eye-sore on the coastline and although an integral part of the present economy, it is a deterrent to individuals hearing a range of stories over recent decades up to the present on the potential horror which could stem from mismanagement of nuclear material.’ Nevertheless, the document concludes that ‘there is enormous potential to make further use of the Internet as a tool to enhance perceptions of the area, promote new business and counter the effect of the inevitable negative stories in the press.’

Previous inquiries

In December 2005, the Commons Trade and Industry Committee announced an inquiry into the work of the NDA and UKAEA as both Non-Departmental Public Bodies are sponsored by the DTI. The Committee investigated:
The remit and activities of the NDA and UKAEA
The compatibility of current plans for the NDA and UKAEA with any increased reliance on nuclear power generation
The NDA and UKAEA’s performance and accountability.[41]

Affiliations

Has funded the Science Media Centre since at least 2010. [42]
Main external firms it works with are: Burges Salmon, Field Fisher ­Waterhouse, DLA Piper, spends around £3m-£4m annually (2009 figures) [43]

Resources

Steve O’Connor, Sellafield owner tried to cover up £300m error, 11 April 2012 http://www.independent.co.uk/news/science/sellafield-owner-tried-to-cover-up-300m-error-7631361.html
Facebook page Nuclear Decommissioning Authority

Related articles

Jonathan Leake and Dan Box, “When PR goes nuclear”, New Statesman, May 27, 2005.
Ravi Chandiramani (2005) Lib Dem Election Chief Nets Tfl Job, PR Week, 12 August, p1.
Ravi Chandiramani (2005) Nuclear Clean-Up Body Brings In Bell Pottinger, PR Week, 8 July, p2.

External resources

HC236 Nuclear Decommissioning Authority Annual Report & Accounts 2012/2013, Ordered by the House of Commons to be printed on 24 June 2013, ISBN: 9780102983104
SourceWatch, Nuclear Decommissioning Authority http://www.sourcewatch.org/index.php?title=Nuclear_Decommissioning_Authority

Notes

1. NDA website
2. *HC236 Nuclear Decommissioning Authority Annual Report & Accounts 2012/2013, Ordered by the House of Commons to be printed on 24 June 2013, ISBN: 9780102983104, p.11
3. BBC website
4. National Audit Office, Managing risk reduction at Sellafield, November 2012
5. Public Accounts Committee, ‘Public Accounts Committee publishes report on Nuclear Decommissioning Authority: managing risk at Sellafield’, UK Parliament website, 4 February 2013
6. 6.0 6.1 Public Accounts Committee, Nuclear Decommissioning Authority: Managing risk at Sellafield, UK Parliament website, 4 February 2013
7. NDA – For Discussion
8. Agreed record of NDA Comms/Bell Pottinger discussion 18th September 2008 as an input to ongoing development of NDA Communications Strategy
9. NDA, Stephen Henwood, undated, accessed 12 October 2012
10. NDA, Janette Brown, undated, accessed 12 October 2012
11. Business Week, Patrick Dixon, undated accessed 12 October 2012
12. LinkedIn, Patrick Dixon, undated, accessed 12 October 2012
13. NDA, Murray Easton, undated, accessed 12 October 2012
14. NDA, Chris Fenton, undated, accessed 12 October 2012
15. NDA, Alistair Wivell, undated, accessed 12 October 2012
16 Debretts, Sir Anthony Cleaver, undated, accessed 15 October 2012
17 Debretts, Tony Cooper, undated, accessed 15 October 2012
18 Nuclear Decommissioning Authority Annual Report & Accounts 2011/2012, accessed 16 July 2012
19 Board Members: John Clarke, Britain’s Energy Coast Board, undated, accessed 20 May 2012
20 NDA, Mark Lesinski, undated, accessed 12 October 2012
21 NDA, David Batters, undated, accessed 12 October 2012
22 BNES website
23 The Environment Council website
24 MTC website
25 DTI website
26 NDA, Jon Phillips, undated, accessed 12 October 2012
27 Spinwatch
28 NDA, News, undated, accessed 12 October 2012
29 UKPAC Register 1 Sept -30 November 2011 and APPC Register Entry for 1 Dec 2011 to 29 Feb 2012
30 SpinWatch
31 SpinWatch
32 Bell Pottinger Communications “Nuclear Decommissioning Authority Public Affairs Agency Brief – Bell Pottinger response” (pdf), undated, released by NDA under Freedom of Information Act, February, 2006.
33 Bell Pottinger Communications “Nuclear Decommissioning Authority Public Affairs Agency Brief – Bell Pottinger response – Bell Pottinger team” (pdf), undated, released by NDA under Freedom of Information Act, February, 2006.
34 Bell Pottinger Communications “Nuclear Decommissioning Authority Public Affairs Agency Brief – Bell Pottinger response” (pdf), undated, released by NDA under Freedom of Information Act, February 2006.
35 NDA “Nuclear Decommissioning Authority Public Affairs Agency Brief” (pdf), June, 2005.
36 Bell Pottinger “Nuclear Decommissioning Authority Media Programme” (pdf), August 24, 2005.
37 Bell Pottinger Contact Report, for NDA (pdf), 18 August, 2005.
39 Bell Pottinger Contact Report, for NDA (pdf), 20 July, 2002. (dated in error)
40 Bell Pottinger Contact Report, for NDA (pdf), 13 January, 2006.
41 Bell Pottinger Public Affairs “An assessment of the perception of the Caithness region created by media and online sources” (pdf), January, 2006.
42 UK Parliament website
43 SMC, 2010. Annual Review. Acc 16 May 2011.
44 Corinne McPartland, Power struggle: Roger Clayson, Nuclear Decommissioning Authority (NDA), The Lawyer, 27 July 2009, acc 16 Sept 2013
Categories: Nuclear Spin Pro-nuclear organisations Nuclear revolving doorScience Media Centre This page was last modified on 5 November 2014, at 16:08
. http://powerbase.info/index.php/NDA, CC-BY-SA-3.0 (Emphasis added)

NOTES FROM OUR INTRO:
[1] “Quango boss on £460,000 gets another £48,000 a year to pay for his second home John Clarke given £4,000 a month by Nuclear Decommissioning Authority Money goes towards a second home in London alongside base in Cumbria“, by Jason Groves for The Daily Mail, 29 June 2013

[2] The original parliamentary document says: “This is an uncorrected transcript of evidence taken in public and reported to the House. The transcript has been placed on the internet on the authority of the Committee, and copies have been made available by the Vote Office for the use of Members and others. Any public use of, or reference to, the contents should make clear that neither witnesses nor Members have had the opportunity to correct the record. The transcript is not yet an approved formal record of these proceedings.” OPL. http://www.publications.parliament.uk/pa/cm201213/cmselect/cmpubacc/uc746-i/uc74601.htm