nuclear-news

Japan’s taxpayers will cop the bill for nuclear disaster

Japanese Taxpayers Likely to Shoulder Nuclear Liability – Law Blog – WSJ, 21 March 11, By Ashby Jones At the end of the day, who’s going to pay to compensate the victims of the problems at Japan’s nuclear reactors?Had the earthquake and resulting issues happened in the U.S., the answer would likely be quite complicated. In Japan, it’s simpler: the Japanese taxpayer will shoulder the burden, according to this WSJ story by Andrew Dowell and Erik Holm.

Japan’s nuclear liability law holds operators of nuclear facilities—in this case Tokyo Electric Power Co.– fully responsible for damage caused by nuclear accidents. But when catastrophic natural disasters are involved, the obligation shifts to the Japanese government.

That means Tokyo Electric and the companies that supplied the reactors now at risk of melting down, including General Electric and Toshiba, could be insulated from a potential cascade of lawsuits seeking damages.

The key phrase once the debates start may be “except in the case where the damage is caused by a grave natural disaster of an exceptional character.” That language in Japan’s nuclear-damage compensation law could let Tokyo Electric off the hook for any offsite damage caused by the incident.

But even without that determination, the government is still the most likely party to pay, said Omer Brown, a Washington lawyer specializing in nuclear liability.

Japanese Taxpayers Likely to Shoulder Nuclear Liability – Law Blog – WSJ

March 22, 2011 - Posted by Christina Macpherson | business and costs