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N.D. 36

Statement by Hon. R.W. Swartz, M.P., Kinister for  National Development,

NUG1DAR POWER STATION AT JERVIS BAY '

The Government has decided to defer a decision  on the Jervis Bay Nuclear Power Station for 12 months, It will re-examine the matter in the light of the  circumstances then existing.

Ip announcing this Mr Swartz said that in i968  ;  the Government, observing the rapid development of this new technology throughout the world, had foreseen that

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nuclear ppwer would be required in Australia and that its  introduction v/as only a matter of time.  In 1969 the then  Minister ior National Development, had had discussions with

State Ministers to ascertain their views and plans for nuclear power in State generating systems,  New South Wales, ;  Victoria, South Australia and Western Australia saw a need  for nuclear power at varying times in the 'future,  New  South Wales expressed a keen interest in nuclear power and  a willingness to collaborate with the Commonwealth in the

establishment of a nuclear power station which would feed  electricity into the State's interconnected system.

|  The Government considered that the Commonwealth should assist the States by taking the lead in building the  first nuclear power station,

/  Construction of this station by the Commonwealth would provide Australian industry with experience in the  fabrication of equipment and components to the standards required  by the nuclear industry. It would also give the State generating

authorities and their staffs an opportunity to gain experience in  the tendering, construction and operation of a nuclear station.

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Pollowing discussions between the Atomic Energy  Commission and the Electricity Commission of New South Wales,  tenders were called in 1970 for the nuclear steam supply  system for a nuclear power station of 500 megawatts nominal

capacity.

The tenders received were subjected to intensive  examination on both technical and economic grounds. This  examination was completed in a short time by a large group  of engineers and technologists from the Atomic Energy  Commission, assisted by the Electricity Commission of N.S.W.  and the A.A.E.C.1s consultants, Bechtel Pacific Corporation.

This group developed cost estimates for the whole  station for the selected system, including all the additional  plant, equipment and buildings required ever and above the  nuclear system as such. The final cost estimates took

account also of other substantial items such as interest  during construction and probable escalation of labour and  materials prices expected in the 5-year construction period.

This estimating task resulted in a realistic figure for what  might be the final total cost to the Commonwealth.

The final figure was higher than that expected  in 1969. This result, viewed in the light of the current  financial circumstances of Australia, made the Government  feel it should not proceed with the project immediately.

The deferment of action would also enable the Commission  to study the matter further and to take account of continuing  advances in nuclear technology, which could have a bearing on  the Australian project.

Mr Swartz said that he understood that current planning  of the E.C.N.S.W. could accommodate the deferment now decided by  the Government.

CANBERRA.

9 June, 1971.

