February 7, 2018
Japanese Communist Party member of the House of Representatives Kasai Akira on February 6 at a House Budget Committee meeting brought up the issue of government-guaranteed loans to Hitachi’s project to construct a nuclear power plant in the UK.
Kasai said that 100% financial support by the government for Hitachi’s project means that tax payers’ money will be used if the project falls into the red.
Hitachi is promoting a project to construct a nuclear power plant on the British island of Anglesey, with commercial operations scheduled to begin in the early 2020, through its British subsidiary Horizon Nuclear Power.
Hitachi plans to cover part of the total project cost, which is estimated at three trillion yen, with loans from Japan’s mega banks and the government-funded Japan Bank for International Cooperation. In regard to Hitachi’s huge loans, it has come light that the state-owned insurance company, Nippon Export and Investment Insurance (NEXI), will provide 100% guarantees to the lending banks.
In the House committee meeting, Kasai asked about the document that NEXI in December 2017 submitted to Hitachi indicating that the state-owned company made a decision on financial support for Hitachi.
NEXI Chairman Bando Kazuhiko in his reply avoided addressing the question.
Kasai pointed out that Prime Minister Abe and his British counterpart in the 2017 joint statement agreed to promote cooperation regarding the construction of a new nuclear power station in Britain. Kasai asked PM Abe whether he also agreed on financial cooperation or not.
PM Abe gave no response under the guise of protecting diplomacy.
Kasai referred to the fact that Hitachi Chairman Nakanishi Hiroaki, who is expected to become the new chairman of the Japan Business Federation in June 2018, in a meeting of the Abe-headed council on investments for the future expressed his appreciation for financial support from the government.
Kasai urged the government to stop promoting exports of nuclear power plants which impose heavier financial burdens on the general public. He also demanded that the government change its policy relying on nuclear energy to one promoting the widespread use of renewable energy resources.
Kasai said that 100% financial support by the government for Hitachi’s project means that tax payers’ money will be used if the project falls into the red.
Hitachi is promoting a project to construct a nuclear power plant on the British island of Anglesey, with commercial operations scheduled to begin in the early 2020, through its British subsidiary Horizon Nuclear Power.
Hitachi plans to cover part of the total project cost, which is estimated at three trillion yen, with loans from Japan’s mega banks and the government-funded Japan Bank for International Cooperation. In regard to Hitachi’s huge loans, it has come light that the state-owned insurance company, Nippon Export and Investment Insurance (NEXI), will provide 100% guarantees to the lending banks.
In the House committee meeting, Kasai asked about the document that NEXI in December 2017 submitted to Hitachi indicating that the state-owned company made a decision on financial support for Hitachi.
NEXI Chairman Bando Kazuhiko in his reply avoided addressing the question.
Kasai pointed out that Prime Minister Abe and his British counterpart in the 2017 joint statement agreed to promote cooperation regarding the construction of a new nuclear power station in Britain. Kasai asked PM Abe whether he also agreed on financial cooperation or not.
PM Abe gave no response under the guise of protecting diplomacy.
Kasai referred to the fact that Hitachi Chairman Nakanishi Hiroaki, who is expected to become the new chairman of the Japan Business Federation in June 2018, in a meeting of the Abe-headed council on investments for the future expressed his appreciation for financial support from the government.
Kasai urged the government to stop promoting exports of nuclear power plants which impose heavier financial burdens on the general public. He also demanded that the government change its policy relying on nuclear energy to one promoting the widespread use of renewable energy resources.
