Dáil Éireann debate -
Wednesday, 10 Feb 1993

Vol. 425 No. 7

Written Answers. - Eastern European Nuclear Industry.

Bernard Allen

Question:

103 Mr. Allen asked the Minister for Finance if he will make a statement on the recent decision issued by the European Commission to grant loans to the Eastern European Nuclear Industry; the plants, if any, to which this money has been allocated; and the financial implications, if any, for Ireland of this decision.

Minister for Finance (Mr. B. Ahern)

I assume that the Deputy is referring to a draft decision dated 9 December 1992 which has been submitted by the European Commission to the Council of the European Communities. This decision proposes to amend the existing Council decision in order to allow EURATOM loans to be made in respect of projects outside the Community in order to contribute to the financing required for improving the degree of efficiency and safety of nuclear power stations in the countries of Central and Eastern Europe (CCCE) and in the Commonwealth of Independent States (CIS).

The purpose of the draft decision is solely to permit the use of EURATOM loans to contribute to the financing required to improve the efficiency and safety of existing unsafe nuclear power stations in these countries. The Commission and indeed the international community has, for some time now, been seriously concerned with the state of many of the nuclear reactors in operation in these countries in that they do not meet internationally recognised safety standards. The scale of the problems involved in the process of economic and social reform is such that the countries of Central and Eastern Europe and the CIS are unable to find the necessary resources to finance improvements. The Commission has therefore proposed that financing be provided from EURATOM borrowings within the ceiling currently authorised. This ceiling has not been reached due to the slowdown of investment in the nuclear industry within the Community.

It is not possible to say at this stage what particular plants will benefit but special emphasis is being placed on Soviet-designed reactors known as RBMKs (graphite-moderated pressure-tube type boiling water reactor), and VVERs (pressurised water reactor).

Under existing EC budgetary arrangements, the proposal, if accepted, will not, in itself have direct financial implications for Ireland. The guarantee of the State in which the project is located will normally be required for each loan though other first class securities may also be contemplated. Only in the event of a default by the loan recipients or their governments would the proposal have some impact on the EC General Budget causing a small net increase in Ireland's EC Budget Contribution to cover any such defaults.