Call to shelve nuclear plan

Labour called yesterday for the planned pounds 2.6bn privatisation of the nuclear industry to be shelved following problems with the refuelling process and a subsequent shutdown at one of the most modern reactors, Heysham 2, in Lancashire.

A technical investigation has begun at Heysham and at Torness, an identical station, to establish whether there is a fundamental design fault.

John Battle, shadow energy spokesman, said: "The sale of nuclear does not add up economically and there now also seems to be a question over structural faults."

Mr Battle called for a halt to the privatisation process until the Nuclear Installations Inspectorate was able to give assurances there is no threat to public safety. The sale, scheduled to take place this summer, is already dogged by arguments over the financial structure of the industry between the Government and British Energy, the company to be privatised.

British Energy said the problem "really is a minor one" and the decision to shut Heysham 2 was taken voluntarily with no pressure from the NII.

The problem at Heysham 2 occurred as fuel rods were loaded into the reactor while it was still running. This "on-load" refuelling enhances performance of the reactors and could add millions of pounds to the profits of the privatised company. It is not yet clear whether the fault is a one-off.