TNAG-1121-FCO40-1396-Amendment-of-Nuclear-Installations-Act-1965-extension-to-Dep-1982 — Page 28

is always likely to be within a current "cover period" in the sense

of section 19.) Consequently it appears that there are risks for which a

nuclear site licensee is required to provide financial security which

in fact it can not do except perhaps by the quite impractical means

of depositing a large sum of money in a Bank.

51. This question is being discussed with the insurers and the

Department is pressing them to satisfy it that it is possible to

provide cover. If however, it is eventually accepted that they

can (or will) not do so, it may be necessary to provide that claims

for damage which they do not cover should be addressed to the

"appropriate authority" under section 16(3) and that nuclear site

licensees should be relieved from the obligation to provide financial

security for such risks.

Repeal of Section 5 (3) of the Atomic Energy Authority Act 1954 (c.32)

52. The Atomic Energy Authority Act 1954 (the 1954 Act), which created the United Kingdom Atomic Energy Authority (the Authority) and transferred to it certain of the functions then exercised by the Lord President of the Council, was the first United Kingdom Act to impose specific duties on any body in relation to nuclear damage caused to third parties. Section 5(3) of the 1954 Act imposes such duties on the Authority alone. The 1959 Act introduced a system of licensing for persons other than the Authority and imposed duties on them (section 4) broadly similar to those imposed on the Authority by section 5(3) of the 1954 Act.

53.

Section 17 (1) of the Amendment Act read with Schedule 2 to that Act provided for the repeal of Section 5(3) of the 1954 Act but appears

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