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| Government seeks to reassure investors as Hinkley Point C delayed | Government seeks to reassure investors as Hinkley Point C delayed |
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| The British government has tried to reassure France and China that plans for a controversial new nuclear power plant at Hinkley Point C are still on the table, despite ordering an unexpected review into the £18bn project. | The British government has tried to reassure France and China that plans for a controversial new nuclear power plant at Hinkley Point C are still on the table, despite ordering an unexpected review into the £18bn project. |
| The companies behind the initiative, EDF and China General Nuclear Power Corporation (CGN), were shocked when the UK refused to give immediate approval for the nuclear plant, which has been dogged by concerns about its cost and safety. The government intervened just two hours after French energy company EDF announced its board had approved construction of Hinkley Point C. | The companies behind the initiative, EDF and China General Nuclear Power Corporation (CGN), were shocked when the UK refused to give immediate approval for the nuclear plant, which has been dogged by concerns about its cost and safety. The government intervened just two hours after French energy company EDF announced its board had approved construction of Hinkley Point C. |
| However, the UK prime minister, Theresa May, is understood to have discussed her plans to reassess the £18bn project with François Hollande, the French president, during a phone call on Wednesday. | However, the UK prime minister, Theresa May, is understood to have discussed her plans to reassess the £18bn project with François Hollande, the French president, during a phone call on Wednesday. |
| Sources said French officials were satisfied with the UK taking a final decision in the autumn. | Sources said French officials were satisfied with the UK taking a final decision in the autumn. |
| However, officials close to the Chinese consortium said they were “bemused at the turn of the events”. | However, officials close to the Chinese consortium said they were “bemused at the turn of the events”. |
| Greg Clark, the business, energy and industrial strategy secretary, also met with the chief executives of both companies on Friday to try to reassure them that the government’s energy policy had not changed. | Greg Clark, the business, energy and industrial strategy secretary, also met with the chief executives of both companies on Friday to try to reassure them that the government’s energy policy had not changed. |
| A senior Whitehall source said: “There is a new prime minister and a new government with a major decision in the in-tray.” The source said it was not unreasonable for them to want time to assess a complicated deal that has taken years to develop. | A senior Whitehall source said: “There is a new prime minister and a new government with a major decision in the in-tray.” The source said it was not unreasonable for them to want time to assess a complicated deal that has taken years to develop. |
| However, there are understood to be new concerns within the government about the involvement of the Chinese state-backed CGN in the project. | However, there are understood to be new concerns within the government about the involvement of the Chinese state-backed CGN in the project. |
| May’s joint chief of staff, Nick Timothy, criticised the project last year and warned the government was “selling our national security to China”. | May’s joint chief of staff, Nick Timothy, criticised the project last year and warned the government was “selling our national security to China”. |
| Timothy wrote on the ConservativeHome website in October 2015 that it was “baffling” that the government was allowing Chinese state firms to invest in sensitive infrastructure and that “rational concerns about national security are being swept to one side because of the desperate desire for Chinese trade and investment”. | Timothy wrote on the ConservativeHome website in October 2015 that it was “baffling” that the government was allowing Chinese state firms to invest in sensitive infrastructure and that “rational concerns about national security are being swept to one side because of the desperate desire for Chinese trade and investment”. |
| He claimed security experts were worried the Chinese could build weaknesses into computer systems that would allow them to “shut down Britain’s energy production at will”. | He claimed security experts were worried the Chinese could build weaknesses into computer systems that would allow them to “shut down Britain’s energy production at will”. |
| Timothy’s views are in stark contrast to the approach adopted by the former chancellor, George Osborne, who courted investment from China in what was dubbed his “silk road” policy. | Timothy’s views are in stark contrast to the approach adopted by the former chancellor, George Osborne, who courted investment from China in what was dubbed his “silk road” policy. |
| Government sources played down the importance of Timothy’s comments on Friday. Ian Liddell-Grainger, the Conservative MP whose constituency includes Hinkley Point, added: “I am 100% sure this is going to happen, I am 100% sure it is going to be signed, and 100% sure that we will build it on time on budget. | Government sources played down the importance of Timothy’s comments on Friday. Ian Liddell-Grainger, the Conservative MP whose constituency includes Hinkley Point, added: “I am 100% sure this is going to happen, I am 100% sure it is going to be signed, and 100% sure that we will build it on time on budget. |
| “Knowing Theresa May, she is a formidable lady who makes up her own mind. When you send her things she questions it, and it is always her who responds. That is how she ticks.” | “Knowing Theresa May, she is a formidable lady who makes up her own mind. When you send her things she questions it, and it is always her who responds. That is how she ticks.” |
| EDF and CGN, which holds a 33% stake in the power plant, were preparing to sign the contracts to start the project on Friday and had to cancel a celebratory lunch for 150 VIPs. | EDF and CGN, which holds a 33% stake in the power plant, were preparing to sign the contracts to start the project on Friday and had to cancel a celebratory lunch for 150 VIPs. |
| However, Jean-Bernard Lévy, the chief executive of EDF, said on Friday he had no doubt about the British government’s support for the £18bn project. | However, Jean-Bernard Lévy, the chief executive of EDF, said on Friday he had no doubt about the British government’s support for the £18bn project. |
| “There is no comment to make. The statement made by Mr Clark is perfectly clear,” he said. “I have no doubt about the support of the British government led by Mrs May.” | “There is no comment to make. The statement made by Mr Clark is perfectly clear,” he said. “I have no doubt about the support of the British government led by Mrs May.” |
| Nonetheless, Levy confirmed he had not been warned about the government’s review and only found out when he saw the announcement on the internet. | Nonetheless, Levy confirmed he had not been warned about the government’s review and only found out when he saw the announcement on the internet. |
| EDF’s chief executive, Vincent de Rivaz, said in a open letter to staff the company was “ready” to start building as soon as the government gave the go-ahead, the BBC reported. | EDF’s chief executive, Vincent de Rivaz, said in a open letter to staff the company was “ready” to start building as soon as the government gave the go-ahead, the BBC reported. |
| De Rivaz said: “The new prime minister has been in post for just 16 days. Her full cabinet has been in post even fewer. | De Rivaz said: “The new prime minister has been in post for just 16 days. Her full cabinet has been in post even fewer. |
| “We can understand their need to take a little time. We fully respect the prime minister’s method.” | “We can understand their need to take a little time. We fully respect the prime minister’s method.” |
| He added: “The very good news is that we are ready. The board’s decision means that when the government is ready to go ahead, we are ready, too.” | He added: “The very good news is that we are ready. The board’s decision means that when the government is ready to go ahead, we are ready, too.” |
| The Guardian understands that May discussed the Hinkley Point deal at dinner with Hollande last week, in one of her first overseas visits as prime minister. While Cameron and Osborne had been waiting for EDF to give the green light to the project, May indicated that the final decision would be for the UK government, with one insider suggesting that September was talked about as a date for that decision. | The Guardian understands that May discussed the Hinkley Point deal at dinner with Hollande last week, in one of her first overseas visits as prime minister. While Cameron and Osborne had been waiting for EDF to give the green light to the project, May indicated that the final decision would be for the UK government, with one insider suggesting that September was talked about as a date for that decision. |
| Given that EDF failed to finalise the Hinkley Point deal under the leadership of David Cameron despite being urged to do so, officials believe it should not be surprised that a new government wants to proceed with caution. They claim final approval was always expected to be in the autumn until EDF announced last week it would hold a board meeting on Thursday. | Given that EDF failed to finalise the Hinkley Point deal under the leadership of David Cameron despite being urged to do so, officials believe it should not be surprised that a new government wants to proceed with caution. They claim final approval was always expected to be in the autumn until EDF announced last week it would hold a board meeting on Thursday. |
| One energy expert with knowledge of the deal, who previously worked in Whitehall when May was home secretary, agreed that she was not the sort of politician who would sign something off without understanding the detail. | One energy expert with knowledge of the deal, who previously worked in Whitehall when May was home secretary, agreed that she was not the sort of politician who would sign something off without understanding the detail. |
| “She’s not a knee-jerk politician. She takes her time. She likes evidence based policy.” He said that contrasted with Osborne, who was willing to agree to Hinkley at an even higher price. | “She’s not a knee-jerk politician. She takes her time. She likes evidence based policy.” He said that contrasted with Osborne, who was willing to agree to Hinkley at an even higher price. |
| Barry Gardiner, the shadow energy secretary, said the government was in chaos and the new review “sends the most appalling message out to investors”. | Barry Gardiner, the shadow energy secretary, said the government was in chaos and the new review “sends the most appalling message out to investors”. |
| He told the Guardian: “The government says we are open for business but it says to investors ‘we will dally with you for 10 years, we will give an indicative contract, and then after a final decision, we will pull the plug and say we will take another three months’.” | He told the Guardian: “The government says we are open for business but it says to investors ‘we will dally with you for 10 years, we will give an indicative contract, and then after a final decision, we will pull the plug and say we will take another three months’.” |
| Gardiner said Labour had warned about the project – which could eventually cost taxpayers £30bn – for years. However, he claimed that announcing the review so late risked damaging Britain’s relationship with France just as negotiations about Brexit begin. | Gardiner said Labour had warned about the project – which could eventually cost taxpayers £30bn – for years. However, he claimed that announcing the review so late risked damaging Britain’s relationship with France just as negotiations about Brexit begin. |
| “This is not a time to be making enemies, and particularly not of the French,” he added. | “This is not a time to be making enemies, and particularly not of the French,” he added. |
| Trade union leaders called the decision “bewildering and bonkers”. | Trade union leaders called the decision “bewildering and bonkers”. |
| Justin Bowden, GMB national secretary for energy, said: “After years of procrastination, what is required is decisive action not dithering and more delay. This unnecessary hesitation is putting finance for the project in doubt and 25,000 new jobs at risk immediately after Brexit. It is a gross error of judgment and must be reversed.” | Justin Bowden, GMB national secretary for energy, said: “After years of procrastination, what is required is decisive action not dithering and more delay. This unnecessary hesitation is putting finance for the project in doubt and 25,000 new jobs at risk immediately after Brexit. It is a gross error of judgment and must be reversed.” |