| Westinghouse, the nuclear-engineering company | | | | and it seems folly to relinquish control of one of its |
| owned by the British Government has just been sold | | | | key assets in this field. |
| to Japanese company Toshiba for a price close to | | | | If the UK economy were meeting the Chancellor's |
| £2.8billion - almost twice the original estimate. | | | | stringent targets then perhaps the temptation of a |
| One may question the wisdom of the government's | | | | £2.8billion treasury lift would be less appealing |
| decision to sell given the current energy review which | | | | than the long-term benefits that such a state of the |
| is likely to support the building of new nuclear plant as | | | | art business could bring to the UK. After all, |
| a means to stem the growing dependency on foreign | | | | Westinghouse has come through some turbulent |
| gas. | | | | times in the past when nuclear energy was out of |
| It has been muted that one of the main reasons for | | | | vogue. But just as demand is growing steadily with |
| the sale is that China is interested in commissioning | | | | renewed turbulence in world energy markets we |
| the type of reactor produced by Westinghouse. This | | | | appear to be giving away a huge potential revenue |
| at first would seem a positive reason for holding on | | | | stream. |
| to the company. However, the Chinese will want the | | | | Perhaps the issue of limitless liability in China is just a |
| plant builders to sign indemnities which could lead to | | | | smokescreen to deal with a far more important issue |
| almost limitless liabilities should there be any future | | | | much closer to home - i.e. our economy is under |
| accidents. The UK government could not stomach | | | | performing and as our frugal chancellor may be |
| such a commitment. | | | | forced to concede that 'every little helps'! |
| It's difficult, though, to envisage why the Japanese | | | | Independent electricity supplier, electricity4business, |
| who are known to be just as risk averse would | | | | view this as yet another example of the short-term |
| contemplate such a risk especially since their history | | | | view taken by a government that preaches to the |
| with the Chinese is less than amicable. Furthermore, | | | | world about intervention to deal with environmental |
| their own experiences of nuclear catastrophe, albeit | | | | issues but when it comes to domestic energy policy |
| during war, would suggest that they are likely to be | | | | the free market reigns. |
| if anything, over cautious. | | | | Impact on business electricity - the decision to sell |
| It's common knowledge that Japanese companies are | | | | off Westinghouse may have little impact on the |
| eager to expand in heavy industrial, higher value | | | | current electricity market. However, markets operate |
| added businesses as their traditional strongholds of | | | | based on confidence in the future and the sale of an |
| electronics etc. are eroded by the Asian tiger | | | | asset which could add to the future security of |
| economies. | | | | supply will certainly have an impact on the price of |
| The UK already has vast experience in such sectors | | | | electricity in years to come. |