BNFL/Magnox merger means axe for 2,000
Tuesday 23 December 1997
BNFL yesterday confirmed that approximately 10 per cent of the 19,000 workers at the two companies would lose their jobs as the two nuclear de-commissioning companies were brought together. John Battle, the energy minister, yesterday said the Government would transfer its shareholding in Magnox to BNFL, creating "better incentives for securing cost reductions".
Early next year, Magnox will become a wholly owned subsidiary of BNFL and take on the running of BNFL's two Magnox stations at Sellafield, Cumbria and Chapelcross, Scotland.
John Guinness, the chairman of BNFL, insisted the deal was a "win-win- win" for taxpayer, company and Government alike. BNFL would no longer have to pay for Magnox profits. Combined expertise would also give the company a competitive edge in world markets for de-commissioning power stations and fuel, Mr Guinness said.
The Government is scaling down its commitment to pay billions of pounds in subsidy to Magnox for the cost of de-commissioning nuclear power stations, without which the merged company would have been bankrupt.
The Government will still allow the pounds 3.7bn subsidy to rise by 4.5 per cent a year, but will cut out this year's increase, saving pounds 600m. Gradual payments of the subsidy do not begin until 2006. It has also cut out altogether a "letter of comfort", established in 1990, without which Magnox would have been bankrupt owing to a pounds 500m deficit.
- 1 Woman and two children killed by mob in riots over 'blasphemous' Facebook post in Pakistan
- 2 The secret report that helps Israelis to hide facts
- 3 Danish TV reporter is all business up top, all party down below
- 4 Ross Burden dead: MasterChef and Ready Steady Cook star, dies aged 45
- 5 Businessman charged £75 for three small bottles of water in London hotel
Danish TV reporter is all business up top, all party down below
Israel-Gaza conflict: President Obama presses Netanyahu to call ‘immediate and unconditional’ Gaza ceasefire
Ross Burden dead: MasterChef and Ready Steady Cook star, dies aged 45
Zayn Malik on Israel-Gaza: One Direction singer bombarded with Twitter death threats after posting #FreePalestine
MH17 crash: Black boxes show plane suffered 'massive explosive decompression' following shrapnel hit
The secret report that helps Israelis to hide facts
A day in the life of Vladimir Putin: The dictator in his labyrinth
Were 'Poor Doors' added to mixed developments so wealthy residents don't have to go in alongside social housing tenants?
A new Russian revolution: The cracks are starting to appear in Putin’s Kremlin power bloc
Arizona execution lasts two hours as killer Joseph Wood left 'snorting and gasping' for air
Opponents of Israel's military operation in Gaza are the real enemies of Middle Eastern peace
iJobs Money & Business
Data Governance Manager (Solvency II) – Contract – Up to £450 daily rate, 6 month (may go Permanent)
£350 - £450 Per Day: Clearwater People Solutions Ltd: We are currently looking...
£500 - £560 per day: Orgtel: Java Developer FX - Banking - London - Up to £560...
£350 - £400 per day + competitive: Orgtel: My client, a leading bank, is curre...
£26000 - £30000 per annum + Benefits: Ashdown Group: Account Manager - (Produc...