Bill C-5 (Historical)

Nuclear Liability and Compensation Act

An Act respecting civil liability and compensation for damage in case of a nuclear incident

This enactment establishes a liability regime applicable in the event of a nuclear incident that makes operators of nuclear installations absolutely and exclusively liable for damages up to a maximum of $650 million. Operators are required to hold financial security in respect of their liability. This amount will be reviewed regularly and may be increased by regulation. The enactment also provides for the establishment, in certain circumstances, of an administrative tribunal to hear and decide claims. Finally, this enactment repeals the Nuclear Liability Act and makes consequential amendments.

Nuclear Liability and Compensation Act

[Claude DeBellefeuille, Bloc, Beauharnois—Salaberry, QC]

Mr. Speaker, I thank my colleague for his question. The law that applies at present is the current act, before Bill C-5 is enacted. Of course, nuclear installation operators are liable for up to $75 million, which would not really be enough. If a disaster occurred, communities would be at a serious disadvantage in terms of compensation, and the consequences would be terrible.

With respect to waste, I would recall what the Minister of Natural Resources said. He said himself, in a speech, that we are still decades away from being able to determine how, and most importantly where, to store this waste. We know that the waste is currently being stored underwater for a decade and then put in dry storage.

But what will happen if we create more and more nuclear installations and waste? We really have to think about this and debate the question publicly. I urge all of my opposition colleagues to put this request to the Minister of Natural Resources.

[Christian Ouellet, Bloc, Brome—Missisquoi, QC]

Mr. Speaker, I would like to congratulate my colleague from Beauharnois—Salaberry for her excellent speech. It was very clear and unequivocally stated the Bloc's position. However, I would like her to return to the issue of liability amounts. If I understood correctly, in the case of a war, sabotage or terrorist activity, the insurance would not apply, which means that in this case, citizens would pay. But we know that nuclear plants are prime targets for terrorists. There is no bigger target than that in Canada.

Are the minister and the government really irresponsible enough to propose nuclear power instead of other sources of clean energy, as my colleague mentioned? These energy sources are definitely not dangerous and there is no need to take out insurance to protect them.

Is Bill C-5 not in contradiction with the energies available now, in 2007? This is no longer 1970, when the original bill for this law was introduced. I would really like my colleague to assess the possibilities and risks that the costs would fall on citizens.

[Claude DeBellefeuille, Bloc, Beauharnois—Salaberry, QC]

Mr. Speaker, I am very pleased to speak to this important government bill, specifically, Bill C-5, An Act respecting civil liability and compensation for damage in case of a nuclear incident.

We recall that this bill was introduced by the Minister of Natural Resources during the previous session of Parliament and had to be introduced in this House again after prorogation. It was quickly reinstated and has now been assigned the number 5, which says a lot about this government's priorities.

I would first like to give an outline of the bill and briefly put it into context. Like many environmental stakeholders, the Bloc Québécois has noted a renewed interest in nuclear energy, across Canada and around the world. In Canada, we have been hearing a lot about it since the current Conservative government was elected. A number of statements by the Minister of Natural Resources, who is one of its main proponents, clearly illustrate his government's renewed interest in the nuclear sector—at least, that was the case until very recently.

According to the newspapers, it will now be harder for the Minister of Natural Resources to promote nuclear energy. Le Droit reports that ministers will now have to tread lightly when promoting nuclear energy because Quebeckers and Canadians are particularly concerned about this controversial subject. It may therefore not be in the government's interest to hold a public debate on the issue just now.

The minister seems to have forgotten that nuclear energy is not, as he claims, clean energy. Radioactive waste is still a big, expensive problem. After 40 years, Canada still does not have a solution. That is why, when it comes to nuclear energy, the Bloc Québécois is calling for strict, effective control at every stage of the process, from extraction and transportation to the generation of heat and electricity.

For these reasons, the Bloc Québécois supports the principle underlying this bill concerning operator liability in the event of a nuclear incident. Nevertheless, it is deplorable that the Conservative government has failed to respond to recent reports, such as the one last June about burial of nuclear waste, by holding Canada-wide consultations on nuclear power.

The government has decided to promote nuclear energy without holding a debate even though there is no consensus at all on the issue. In fact, environmental groups are very critical of nuclear energy. The Bloc Québécois refuses to make compromises when it comes to the safety of Quebeckers. We must never forget what happened at Chernobyl in Ukraine and at Three Mile Island in the United States, where the fallout from nuclear incidents was extremely serious. We must do everything in our power to prevent such incidents.

I would like to reiterate the goals of Bill C-5, which, and I quote, “establishes a liability regime applicable in the event of a nuclear incident that makes operators of nuclear installations absolutely and exclusively liable for damages up to a maximum of $650 million.”

Bill C-5 also seeks to amend and update the Nuclear Liability Act. It also replaces the power to create a nuclear damage claims commission with the power to create a nuclear claims tribunal.

In Canada, the Nuclear Liability Act, which came into force in 1976, assigns liability for nuclear damage to the operators of nuclear installations. The maximum coverage under the law is $75 million. Part II of the act enables the governor in council to create a Nuclear Damage Claims Commission, which examines the claims for compensation in cases where the federal government is of the opinion that the cost of damages caused by a nuclear incident could be more than $75 million.

Since the operator's liability is limited to the amount of its insurance, $75 million, it is presumably the federal government that would have to make up the difference.

The act is administered by the Canadian Nuclear Safety Commission, which designates the nuclear installations subject to the act, determines who is the operator by issuing permits in accordance with the provisions of the Nuclear Safety and Control Act, and establishes the amount of the basic insurance with the approval of the federal Treasury Board.

The framework for nuclear power for civilian use is particularly developed in Europe. European states that were promoting the use of stand-alone nuclear power plants for the generation of electricity wanted to ensure adequate financial compensation would be available for victims in the event of an accident.

They were the ones who initiated the first instrument to be put in place, the Convention on Third Party Liability in the Field of Nuclear Energy of July 29, 1960, known as the Paris Convention. Developed under the auspices of the OECD and covering European countries, it incorporated a number of principles governing nuclear liability law.

In Canada, nuclear liability is based on the same principles: operators are absolutely liable for damage suffered by a third party; operators are exclusively liable for damage suffered by a third party; operators' liability is limited in terms of time and amounts claimed; and operators are required to hold insurance or some other financial security to cover their liability.

However, although limitation of liability is a known principle, European countries and Canada interpret it differently. There are gaps. One of these gaps has to do with the amount of liability.

In chapter 8 of her 2005 annual report, the Commissioner of the Environment and Sustainable Development dealt specifically with insurance coverage for operators of nuclear facilities, in response to two petitions. The commissioner indicated that the accident insurance requirements for nuclear facilities did not comply with international standards. The $75 million of coverage required by the Nuclear Liability Act is woefully inadequate by international standards.

Senior officials with Natural Resources Canada said that, with inflation, $250 million of coverage in current dollars would be equivalent to the amount required in the act when it was passed and that to meet international standards, roughly $650 million Canadian would be required. This opinion was shared by the Commissioner of the Environment and Sustainable Development in her own report in 2005.

Under the Paris convention, which most European governments signed, the recommended limit is $600 million. Why Canada is lagging so far behind, when the parliamentary committee that examined the bill before it was passed in 1976 recommended that it be reviewed every five years? Twenty-five years later, it still has not been updated.

The then Minister of Natural Resources stated in March 2003 that “it is time to bring forward revisions to the Nuclear Liability Act to update it and bring it up to international standards”.

Clearly, the current Nuclear Liability Act, with its limit of $75 million, is even more inadequate in 2007, and it is time the act was updated.

Now I want to talk about the review of the Nuclear Responsibility Act. This is the second deficiency. In an evolving issue such as this it is imperative to adjust the legislative and regulatory framework regularly in order for new realities to be taken into account. Review of the maximum award for which nuclear plant operators are liable has been quite deficient so far.

In 2003, officials from Natural Resources traced the history of the Nuclear Responsibility Act and the review process that should have increased the liability threshold. The act was passed in 1970, but not enacted until 1976, after an agreement was reached with a group that is now known as the Nuclear Insurance Association of Canada, or NIAC, on the matter of liability. In 1982, six years after the legislation was enacted, the Canadian Nuclear Safety Commission asked an interdepartmental working group to review the act. In 1984, the working group presented a discussion paper in order to get public input. It was not until 1990, however, that the recommendations were forwarded to the Minister of Energy, Mines and Resources. We also had to wait until 1995 for a new interdepartmental review committee to resume the modernization work. This work was not done until February 2001. The minister finally received the recommendations, but never carried them out. It is only now in 2007, 31 years after the legislation was put into force, that a bill is finally being introduced to modernize legislation that was supposed to be reviewed every five years. Thirty-one years in such a critical area clearly illustrates a significant deficiency.

Although Bill C-5 is rather voluminous in clauses and pages, it can be summed up in three major points: first, the definition of an operator's responsibility—by operator we mean the operator of a nuclear power plant or installation—the terms and financial limit of the liability and, lastly, the establishment of a nuclear claims tribunal, which would adjudicate claims for damage arising from any nuclear accident and determine who is liable for said accident.

Bill C-5 establishes the specific responsibilities of operators of nuclear installations and clearly indicates the damages that can be compensated and those that cannot. Of the most important clauses, clause 9 specifies that the operator's liability is absolute, and more importantly that it is automatic in the event of radiation emissions, as proof of fault is not required. Clearly, that means that in the event of an incident, no matter the cause—except for war, civil war or insurrection—the operator of the installation is liable and must compensate the persons harmed. Clauses 13 to 20 list all compensable damages and expenses, including bodily injury and property damage, economic loss, costs related to the loss of use of property and costs incurred for preventive measures ordered by an authority acting under federal or provincial legislation relating to environmental protection.

The second aspect deals with the financial aspects of liability. The main clause, clause 21, states that the liability of an operator under this act for damage resulting from a nuclear incident is limited to $650 million. The Governor in Council may, by regulation, amend subclause (1) to increase the amount. Subclause (1) does not relieve an operator from payment of the costs of administering claims, court costs or interest on compensation.

Thus, liability is being gradually increased from $75 million to $650 million over a period of four years. This considerable jump must not obscure the fact that such an adjustment is necessary at this time, precisely because of the federal government's failure to regularly adjust the amount.

If the federal government had fulfilled its responsibilities in this matter for the past 31 years, the amount of insurance would have been raised gradually to allow for suitable compensation, instead of increasing it so drastically, because it has become apparent that the amount is ridiculously low.

We can consider ourselves lucky that there were no major incidents here in Canada in the last 30 years, because citizens and communities would not have received enough compensation.

In clause 23, the bill specifies that insurance must be maintained separately for each nuclear facility, which only makes sense, since each facility could, on its own, be the source of an incident.

Lastly, the bill also establishes a special tribunal to hear claims, when the Governor in Council believes that it is in the best interest of the public.

The Governor in Council may declare that the claims in respect of a nuclear incident are to be dealt with by a tribunal, if the Governor in Council believes that it is in the public interest to do so, having regard to the extent and the estimated cost of the damage, and the advantages of having the claims dealt with by an administrative tribunal.

Subsequent clauses define the powers of the nuclear claims tribunal, granting it broad powers intended to accelerate and simplify the claims process, whenever circumstances and considerations of fairness permit.

Finally, in an effort to process claims expeditiously, the tribunal may establish classes of claims that may be determined by a claims officer without an oral hearing and designate as a claims officer anyone it considers qualified.

In closing, I would like to point out that the Minister of Natural Resources seems to have little credibility when it comes to nuclear energy. Indeed, the minister's enthusiasm for this energy resource, even though no serious debate has been held—a debate we in the Bloc believe is necessary—leaves us fairly speechless.

In his press releases and speeches, the minister alleges that nuclear energy is clean because it emits virtually no greenhouse gas. While it is true that nuclear energy produces only a small quantity of greenhouse gas, it does produce radioactive waste that is difficult and expensive to manage. To ignore this is to neglect an important consideration and mislead Canadians, especially when the Minister of Natural Resources is in favour of using nuclear energy to boost production of oil from the tar sands.

Nuclear energy may produce little greenhouse gas, but oil produces a great deal. The equation is simple. The benefits of using nuclear energy—reduced greenhouse gas emissions—will be offset by increased oil production.

The Minister of Natural Resources should show some restraint when it comes to this energy source, because it is far from being unanimously accepted by Canadians, and especially Quebeckers, and it carries very real risks.

Without being alarmist, we have to realize that nuclear energy should not be this minister's first choice. He should invest more in developing clean energy such as wind, solar and geothermal power.

The Bloc Québécois therefore supports Bill C-5 in principle, but will examine the bill carefully in committee to make sure that it has no loopholes that will allow operators to shirk their responsibilities, that taxpayers will not unduly share the risk and the cost of compensation and, finally, that the amount of insurance coverage is reviewed regularly, in compliance with international standards, and represents the real cost of the damage that may result from a nuclear accident.

[Nathan Cullen, NDP, Skeena—Bulkley Valley, BC]

Mr. Speaker, I am glad my colleague has such enthusiasm for a bill I am not entirely sure he has read.

When the question was put to the minister in terms of what happens to liability claims that go beyond the cap of $650 million, the minister replied that there is some legislation in front of the House which means that, just so everybody is clear and we understand, if the claims go beyond the liability the provider is meant to hold, then a committee is set up by this place and the committee would designate how much money the public coffers of Canada would dole out to the actual victims of a nuclear reactor disaster.

If the public in this case were to pick up the cost of any unforeseen accidents, is that a good scenario in terms of the public purse?

[Omar Alghabra, Liberal, Mississauga—Erindale, ON]

Mr. Speaker, I want to thank the member for his ongoing dedication to his riding and to his constituents.

I know that in his riding there is a nuclear power generation plant. I can assure him that I will be consulting with him and other stakeholders in his riding about the future of this bill and the direction it will be taking. From what I understand so far, the minister has outlined that this comes up to international standards. It certainly is a significant improvement from the previous one. The information that I have so far leads me to believe that it is close to the international standards. I am certainly keen to listen to the ideas and the advice of expert witnesses in considering the future of this bill.

[Dan McTeague, Liberal, Pickering—Scarborough East, ON]

Mr. Speaker, the member is treating this issue with great vigour and dedication. He brings a very fresh perspective to the area as critic for natural resources. Ostensibly, issues of energy will flourish over the next few days, certainly, with the cost of energy as we head into a colder period of time.

During the deliberations, will the hon. member be able to provide direction to the government, considering what has happened south of the border in the United States? In California, a relatively depopulated area, we see that the forest fires there have accounted for well in excess of $1 billion in liability. Considering the cost of damage and that a number of our reactors find themselves in populated areas, I am wondering if the hon. member would be able to provide at least some direction to both the committee and to the House, should this bill be referred to the committee, as to whether or not that amount itself would be sufficient given the current realities in market valuations.

[Omar Alghabra, Liberal, Mississauga—Erindale, ON]

Mr. Speaker, I am not so sure what the member's question indicates about his listening capacity, but the first thing I said in my speech is that we will support sending this bill to committee and that we will perform our duty as the official opposition in listening to stakeholders, in listening to experts and in having discussions with our colleagues in the House and in committee and then perhaps producing amendments.

In the meantime, I want to stress the fact that we have been very clear and we have taken leadership on this issue. The member himself and the Minister of Natural Resources know that this bill was started under the previous Liberal government. The minister said in his speech that this was a combination of discussions that took place over a few years.

I am glad this bill has come to fruition, and we will be performing our role as the official opposition.

[David Anderson, Conservative, Parliamentary Secretary to the Minister of Natural Resources and for the Canadian Wheat Board]

Mr. Speaker, the member opposite challenged us to show leadership on the energy file and on this file in particular. That is what we have done. That is why we are here this morning. That is why this bill is important enough that it is at the lead of our legislative agenda.

The member opposite said that the Liberals would like to do something on this. They had a report for over five years that encouraged them to do exactly what we are doing, which is to raise the liability limit under the Nuclear Liability and Compensation Act. We are doing that. The Liberals did nothing.

While the member was speaking, I noticed he was extremely vague about the position that he is going to be taking on this issue. Could the member tell us if the Liberals are going to be supporting the bill or opposing it, or has the Liberal leadership confusion over there resulted in their not knowing what position they are going to be taking at this point?

[Omar Alghabra, Liberal, Mississauga—Erindale, ON]

Mr. Speaker, I appreciate the opportunity to speak to Bill C-5. I want to thank the minister for tabling the bill and I also want to take this opportunity to thank department officials for providing me with an informative and educational briefing session yesterday afternoon.

As the minister extensively outlined, the bill is a housecleaning bill which updates the 1976 act and reviews the liability limit that was set in that act. He also did talk about the fact that it is a culmination of many years of discussions and consultations. In fact, I am aware that the Senate tabled a committee report a few years ago that recommended adjusting that limit. So this is a very important bill and I will be recommending to my caucus and my leader that we support it and send it to committee. In committee we will be doing our job as official opposition listening to stakeholders and experts, and we will review the bill in detail.

Since I am given the opportunity today to speak on this bill I want to discuss the importance and the significance of the energy file to our country. Energy is an important dimension of the triple E triangle. The triple E triangle is made up of energy, environment and the economy. Energy relies and has an impact on the environment. The economy depends on energy and this ongoing circle or triangle is very important and significant to the future and success of our country.

Unfortunately so far, the Conservatives have presented no national energy strategy. They have outlined no vision and have not acted. I want to take this opportunity today to call on the Conservatives to put some energy into their energy plan and produce real action and an outline for Canadians of what they plan on doing for this sector.

The Prime Minister always likes to talk about how Canada is an energy superpower, but he has yet to outline for members of this House and for Canadians what he means by that and what he plans on doing with that power. I agree with him that Canada is rich in natural resources. Canada is rich in skills and talent. Canada is a major producer of energy to the world, but what are we doing about that? We need real action and a real plan.

I want to take this opportunity to highlight an example that I would call on the Prime Minister to follow. The Ontario Liberal government under the premiership of Dalton McGuinty has just outlined a 20 year energy plan to set a strategy for the Province of Ontario for the electricity production system. The plan talks about conservation, renewable energy, nuclear and natural gas, power production, and this is a really important milestone in the history of the Province of Ontario. Obviously this was overdue after the eight years of mismanagement by the Conservative government in Ontario.

I would like to call on the Minister of Natural Resources and the Prime Minister to review this plan and to follow the lead that was set by Premier Dalton McGuinty in outlining a 20 year plan for energy supply needs.

Energy supply, energy suppliers, economists and industry talk about the need for energy predictability, and so far we are lacking that at the national level. We need to talk about conservation, about renewable energy plans, new technology, environmental consideration, and about our short term, medium term and long term goals.

My Liberal leader has already taken a leadership role on that and he has outlined various plans to address these concerns. My leader has talked about his carbon budget to address our environmental need for meeting the most important challenge that our planet is facing, climate change. We cannot sustain the rise of greenhouse gas emissions and we must put in a plan to deal with this increase.

My leader has clearly and strongly outlined what we could do about confronting this challenge. He set an ambitious target of 12,000 megawatts of renewable power, almost 10% of our total electrical power. He has outlined a vision of how to get there and that we must get there by 2015. We talk about energy conservation and working with industries and Canadians on how to achieve those goals.

Obviously nuclear energy is an important component and an important source of electricity as we face the rise in increasing needs. Greenhouse gas emissions are garnering greater attention than before. This deserves more debate and thoughtful discussion.

The Minister of Natural Resources said earlier this year that we are a nation of energy consumers and we must be prepared to have an open discussion about nuclear power. I could not agree with the minister more, but I am still waiting for the open discussion that he talked about. I am still waiting to receive an invitation to those discussions. I am hearing from stakeholders and Canadians in general that there is a great concern about the increased secrecy and lack of accountability when it comes to nuclear energy in particular.

It was reported in 2006 that the Prime Minister had been engaged in discussions in the global nuclear energy partnership initiative. It has been more than a year and we have yet to receive any information about what the Prime Minister plans to do, what the Prime Minister has committed Canada to doing and what the Prime Minister has in mind.

There is an increased shroud of secrecy, lack of accountability and an avoidance of openness. There are many unanswered questions. This initiative brings forward many issues to which Canadians want answers, for example, on waste disposal and the production of nuclear power. There are many unanswered questions. The government which claims to be a champion of accountability and openness appears to be avoiding this discussion. It does not want to reveal any information.

The Minister of Foreign Affairs did not want to answer questions earlier this month about his discussions with our international partners. It appears as though this discussion has become too radioactive for the Conservatives. I am not clear as to why. Even though they wanted to talk about it initially, all of a sudden it is a matter of secrecy and darkness.

We in the Liberal Party want to shed light on these discussions. We want to be involved in the discussions. We want all Canadians to be involved in the discussions. We call on the minister and the Prime Minister to open up the discussions and invite thoughtful debate.

I understand that the Conservatives do not appear to be that energetic about this discussion. I understand there is no political excitement in this topic, but it is very important for Canadians. We as elected officials must play our roles and accept our responsibility toward Canadians by engaging in debate. It is incredibly important for the well-being of our country economically, environmentally and socially.

I call on the minister and the Prime Minister to show leadership and to heed the calls of economists, engineers, environmentalists, other stakeholders and Canadians in general to follow the lead of the Liberal Party leader and the Ontario Liberal premier and articulate a national energy strategy that can set the tone for the next few years. This would create predictability for the industry and energy producers. It would respond to the needs of Canadians and put them at ease with regard to the many unanswered questions.

[Gary Lunn, Conservative, Minister of Natural Resources]

moved that Bill C-5, An Act respecting civil liability and compensation for damage in case of a nuclear incident, be read the second time and referred to a committee.

Mr. Speaker, it is my pleasure to rise in the House to present Bill C-5, the nuclear liability and compensation act. This legislation will replace the 1976 Nuclear Liability Act.

The purpose of this bill is to update the insurance framework that governs the nuclear industry and protects the interests of Canadians. This is an area in which we as a federal government have a responsibility to take action. The existing insurance framework was introduced in the 1970s and has become outdated in the last 30 years.

Today, I would like to explain a bit more about our role in this area, the principles of the insurance framework, and the modernizations this bill proposes.

The history of nuclear energy in Canada goes back some 75 years. For the past 30 years, nuclear power has been an important part of Canada's energy mix. Currently, there are 22 nuclear reactors in Canada providing over 15% of our electricity needs. These reactors are located in three provinces: Ontario, Quebec and New Brunswick.

The operators of these reactors are different in each province. In Ontario, Ontario Power Generation and Bruce Power are the operators. In New Brunswick, it is New Brunswick Power. In Quebec, it is Hydro-Québec, which has safely managed its nuclear program for more than 30 years.

Decisions on the appropriate role, if any, that nuclear energy plays are decisions made by individual provinces. As I have said before, at the end of the day it will be up to each and every province to decide on its own energy mix, but we will be there to support them if they believe nuclear power should be part of their energy mix.

The responsibility of providing an insurance framework for the nuclear industry falls under federal jurisdiction. The Government of Canada has a duty to assume responsibility in this area. I am pleased to say that we are doing just that.

Canada addressed this responsibility with the enactment of the Nuclear Liability Act of 1976. This legislation established a comprehensive insurance framework for injury and damage that would arise in the very unlikely event of an incident. It is the framework in existence today. Both this earlier legislation and Bill C-5, now before the House, apply to nuclear power plants, nuclear research reactors, fuel fabrication facilities and facilities for managing used nuclear fuel.

The framework established under the legislation of 1976 is based on the principles of absolute and exclusive liability of the operator, mandatory insurance, and limitations in time and amount. These principles are common to the nuclear legislation in most other countries such as the United States, France, the United Kingdom, Germany and Japan. These principles are just as relevant today as they were when the original act was introduced.

Let me explain these principles in more detail.

Absolute liability means there is no question as to who would be at fault in the unlikely event of an accident. There is no need to prove that an operator was at fault in an accident, only that injuries and damages were caused by the accident.

As well, the legislation holds the operator of the facility to be exclusively liable for civil damages. In other words, no other business, organization, supplier or contractor can be sued for these damages.

This has two advantages. First, it makes it very easy for those who would make a claim for damage. They know who is liable. They do not need to prove fault or negligence. The other advantage is that exclusive liability allows the insurance industry to direct all of its insurance capacity to the operators.

The principle of mandatory insurance is straightforward. All nuclear operators must carry a prescribed amount of liability insurance in order to be licensed to operate its facility. This is a widely accepted practice across the world in countries generating nuclear energy.

The Canadian regime also places limitations on liability in both time and amount. In terms of the amount, the maximum that is payable under the current 30 year old legislation is $75 million. As well, injury and damages claims must be made within 10 years of an incident.

These underlying principles of Canada's existing nuclear insurance framework both protects the interests of Canadians, ensuring that they are covered in the unlikely event of a nuclear incident, and provides the certainty and stability that allows the nuclear sector to develop.

The insurance framework makes it easier for claimants and guarantees that funds are available to provide compensation.

Although there have been no major claims under the act, it has served as an important safety net for Canadians. At the same time, it has provided the stability and security needed to support the continued development of Canada's nuclear power industry.

Although the basic principles underlying the existing legislation and insurance framework remain valid, the act is over 30 years old. It needs updating to keep pace with international norms and standards.

The bill is intended to strengthen and modernize Canada's nuclear insurance framework through an all-encompassing package of amendments. It would put Canada in line with the internationally accepted compensation levels and it would clarify definitions for compensation: what is covered and the process for claiming compensation.

The bill is a culmination of many years of consultation involving extensive discussions with major stakeholders, including nuclear utilities, the governments of nuclear power generating provinces and the Nuclear Insurance Association of Canada. They wanted to be consulted and they have been.

Canada's nuclear compensation and liability legislation should be consistent with international nuclear liability regimes. This requirement goes beyond financial issues related to liability and compensation. It extends to definitions of what constitutes a “nuclear incident” and what is a “compensable damage”, and so on.

Consistency brings Canada a broader national benefit. It makes it possible for us to subscribe to international conventions we do not already belong to should we wish to subscribe in the future. There are two international conventions that establish compensation limits: the Paris-Brussels regime and the Vienna Convention.

In the case of the Paris-Brussels regime, the maximum compensation is approximately $500 million Canadian, available through a three tier combination of operator, public and member state funds.

The Vienna Convention sets the minimum liability limit at approximately $500 million Canadian. The operator's liability can be set at $250 million by national legislation, provided public funds make up the difference to $500 million.

Although Canada is not a party to either of these conventions, it has participated in them in order to monitor international third party liability trends and other issues of interest, such as definitions of nuclear incidents and the extension of time limits for death and injury claims. It encourages investment in Canada. It also levels the playing field for Canadian nuclear companies interested in contracts abroad. These companies may be inhibited from bidding because of uncertainty about liability and compensation issues.

Consistency is important for a more fundamental reason. It demonstrates Canadian solidarity with other nations on issues of safety and liability. And, as a major user and exporter of nuclear power technology, Canada must uphold its reputation for uncompromising excellence, responsibility and accountability.

The key change proposed in Bill C-5 is an increase in the amount of the operator's liability from $75 million to $650 million. The current limit of $75 million is outdated and unrealistically low. Changing this limit balances the duty for operators to provide compensation without burdening them with huge costs for unrealistic insurance amounts. This increase would put Canada on par with most western nuclear countries.

It is important also that what is proposed in this bill is consistent with international conventions, not only on financial issues but also in regard to definitions of what constitutes an incident, what qualifies for compensation and so on. These enhancements would establish a level playing field for Canadian nuclear companies that will welcome the certainty of operating in a country that acknowledges international conventions.

Both the current insurance framework and Bill C-5 contain limitation periods restricting the time period for making claims. Under the current act, claims must be made within 10 years of an incident. However, since we know today that this is not adequate, the limitation period has been extended under Bill C-5 to 30 years for personal injury claims.

Both the current legislation and Bill C-5 provide for an administrative process to replace the courts in the adjudication of claims arising from a large accident.

The new legislation clarifies the arrangements for a quasi-judicial tribunal to hear claims. The new claims process would ensure that claims are handled equitably and efficiently.

In developing this legislation, we needed to be fair to all stakeholders and to find the right measures to protect the public interest. I firmly believe that the proposed legislation fully meets this challenge.

We have consulted with nuclear operators, suppliers, insurers and provinces with nuclear installations and they are supportive of the changes I have described. It is our intent to continue this practice and that stakeholders with expertise are consulted as the necessary regulations are drafted.

I know that some nuclear operators may be concerned about the cost implications or higher insurance premiums but they also recognize that they have been sheltered from these costs for some time. Suppliers welcome the changes as they provide more certainty for the industry. Nuclear insurers appreciate the clarity provided in the new legislation and the resolution of some long-standing concerns.

Provinces with facilities have been supportive of the proposed revisions to the current legislation. Municipalities that host nuclear facilities have been advocating for revisions for some time. They are supportive of the increased levels of the operator liability and improved approaches to compensation.

Parliamentarians have also spoken on this issue. In 2001, the Standing Senate Committee on Energy, the Environment and Natural Resources recommended that the government increase the mandatory operator liability limit from $75 million to $600 million.

In short, Bill C-5 was not developed in isolation.

The evolution of policy was guided by consultations with key stakeholders over the years and by experience gained in other countries.

I will now broaden my remarks and talk about the context within which I put forward the proposed legislation. As I said earlier, nuclear energy in Canada has a long history that goes back some 75 years. I should note that never in the history of Canada have we had a significant nuclear incident. We are a leader in peaceful development of this technology.

To highlight one of the great Canadian success stories, Canada is a leader in the production of radioisotopes, an element produced by nuclear reactions. Isotopes have been put to dozens of uses that have improved agriculture and made industry more efficient. Their most significant applications, however, have been in medicine where they have performed wonders in the prevention, diagnosis and treatment of disease.

It is a little known fact that Canada supplies 50% of the world's reactor-produced radioisotopes for nuclear medicine and is used for the treatment of cancer and in over 12 million diagnostic tests each and every year. I believe the medical isotopes produced here in Canada are used in some 76,000 medical procedures each day.

The most widely used radioisotope is produced at AECL's Chalk River laboratory and prepared at MDS Nordion's facility in Ottawa. The short half life of this radioisotope requires efficient transportation around the world. Shipments are on airplanes within 24 hours of the material coming out of the reactor. Globally, an estimated 76,000 people benefit from these diagnostic procedures each day.

The improvements provided by Bill C-5 are now necessary for Canada to remain a leading player in the nuclear industry.

Much of our work in the nuclear industry has been to produce electricity, electricity to provide home comforts, to drive industry and to promote jobs across the country. Nuclear electricity has contributed to a healthy environment and affordable clean energy.

Purely from an environmental point of view, one has to consider nuclear power as a clean, greenhouse gas emission-free technology. Our government recognizes that Canada needs this type of clean energy. We need to encourage the development of all types of clean energy in Canada.

I believe that as an emerging energy superpower, Canada must become a clean energy superpower.

Under our eco-action plan, we are contributing to the development of clean energy technologies and practices that will provide cleaner air, reducing pollution and greenhouse gases and sustaining both our environment and economic competitiveness.

These cleaner sources involve hydroelectric power, wind, solar, tidal, biomass and other forms of renewable energy. I see nuclear power as part of that clean energy mix that will advance Canada as a clean energy superpower.

However, in order for Canada to advance in clean energy production, we need the certainty provided by the appropriate and up to date nuclear reliability framework to protect Canadians and provide stability to this important industry.

Canada's nuclear safety record is second to none in the world. Nuclear power is an important part of Canada's diversified energy mix. Now we need to update and modernize our nuclear insurance framework to reflect international norms and continue to provide the protection Canadians deserve. For this reason, I would ask all members to support this legislation.

[Loyola Hearn, Conservative, St. John's South—Mount Pearl, NL]

moved for leave to introduce Bill C-5, An Act respecting civil liability and compensation for damage in case of a nuclear incident.

(Motions deemed adopted, bill read the first time and printed)