SA parliamentary committee questions economics of importing nuclear waste, Independent Australia, 19 August 2016, The economic benefits of SA’s push for a global nuclear waste dump took a negative turn during the current parliamentary committee inquiry. Noel Wauchope reports.
THE SOUTH Australian Parliament is holdinga Joint Committee on Findings of the Nuclear Fuel Cycle Royal Commission (NFCRC).
The five committee members, with one exception, the Greens Mark Parnell, have pro-nuclear opinions. I thought that it was going to be just a rubber stamp for the NFCRC. Now I am not so sure. The committee gave the NFCRC a grilling on the economics of the plan to develop a nuclear waste import industry in South Australia.
Answers indicated that the NFCRC is keen to have discussions with other countries before the matter is resolved at the political level…….
Trawling through the 173 pages transcript of hearings of this committee, I was surprised at the rigour of the questioning of witnesses by the politicians. They did ask hard questions about the arrangements for contracts from overseas countries, customers sending radioactive wastes to South Australia. They asked questions about who pays and when, and for what aspects of the process.
The most intensive questioning of witnesses was certainly on that subject of economics. After all, the plan is to make a financial bonanza for the state. There is no other reason for it. I sensed that the parliamentary committee was indeed focussed on this one basic question:
If it’s not going to make money, why do it?……
Dr Johnson went on to rather confusing statements about the contractual arrangements, and particularly about at what stage revenue would come to South Australia. I don’t think that the committee was inspired with confidence as Johnson discussed this. It was a very lengthy discussion. A few extracts illustrate the economic problems that were revealed in this discussion:
(Transcript p.24) Dr JOHNSON:
We recognised that, once waste got to South Australia, it was very unlikely to leave South Australia. It was very unlikely that there would be anywhere else you could move it on to, so the liability and the responsibility for that waste would be transferred to South Australia. What was a realistic value of that willingness to pay number? We looked at that in a number of different ways because there is no market for it……
a rare mention of the probability of a serious nuclear accident happening – who knows when? It raised the spectre of the expected nuclear waste bonanza suddenly fizzling out, after South Australia had committed to building the nuclear waste repository …..
Dr Johnson seemed to get a bit rattled:
In essence we are spending money up until we start signing the contracts, and at this stage on the 28-year timeline that occurs at year six-ish, but if it’s a 40-year timeline and there are delays, then it may well be that you keep spending money and you don’t get the precommitments until later than year six. : I am not an economist; I am a chemist. Quite clearly, we were not looking at this from an economic perspective. Our remit was to look at it from a financial perspective…….
Kristen Jelk asks:
Who is talking about “Brand South Australia”? ……….If SA is pitching safe products to an international market, and it becomes known that this Australian state has established a dump for nuclear waste, then the damage to brand SA will be immeasurable….It will not matter that the dump is in a desert, nor will it matter if the dump is a distance from prime agricultural land, nor will it matter if experts assure of safety standards. The perception that would prevail is that SA will be a dumping ground for nuclear waste. Perception is everything….
China is our largest trading partner. At present, Australia has clear marketing opportunities in China, and for our other nearer neighbours. In assessing the so called golden coin to be gained for bringing in radioactive trash, South Australia needs to also consider the other side of that coin —the economic opportunities that could be lost, along with the risk of a poor or no return on the waste facility investment. https://independentaustralia.net/environment/environment-display/sa-parliamentary-committee-questions-economics-of-importing-nuclear-waste,9371