To ask the Secretary of State for Environment, Food and Rural Affairs what the limit on the liability incurred by a nuclear operator is in the case of accident; whether that limit is subject to (a) negligence and (b) other conditions; whether that limit is set under international law; whether that limit is under review by his Department; and if he will make a statement. (106991)

I have been asked to reply.

A UK nuclear operator’s liability for third-party property damage and personal injury caused by a nuclear accident is generally limited to £140 million. The limit is set in the Nuclear Installations Act 1965, as amended. The Act gives effect to the UK’s international legal obligations under the Paris Convention on third-party nuclear liability and the Brussels Supplementary Convention. The Paris Convention sets a minimum liability limit for nuclear operators. In the event of a nuclear accident for which a UK operator was liable the UK operator would be obliged, as the law stands, to pay compensation very greatly in excess of the Convention minimum and significantly in excess of the OECD recommended minimum. The operator is strictly liable, which means that it would not be necessary for a person seeking compensation for property damage or personal injury to prove negligence. Other requirements and conditions apply under the Act and the Conventions. For example, the operators of licensed nuclear sites in the UK are required to maintain insurance or other financial security covering their liability. The Paris and Brussels Conventions have recently been amended, but the amendments are not in force. Amongst other things, these amendments will, generally speaking, increase the amount of compensation an operator must provide to at least €700 million per incident. In that context, therefore, the liability limit of UK operators is under review. Work to implement these changes into UK law is being taken forward together with other contracting parties to the Conventions.