Natural Resources Committee on Feb. 10th, 2009

[Cassie Doyle]

Very briefly, there was indeed a protocol developed, really as a follow-up to the incident last December. But that is a protocol for notification and information sharing among AECL, NRCan, and Health Canada, and it's specifically targeted toward the potential for shortages of medical isotopes. As you'll recall, this was the driving imperative around that whole situation. It concerned, specifically among those agencies and the medical community, ensuring that there's early notification when there's any potential risk that there would be a shortfall in the supply of medical isotopes.

[Alan Tonks, Liberal, York South—Weston, ON]

Thank you very much for that. I think the point is well taken that we can still build better information sharing, because the public was tremendously affected then, as it is now.

Mr. Chair, my question is a very simple one. The minister referred to the energy efficiency program, with the $300 million. I don't think anybody can deny that there are tremendous advantages to it. But in the budget itself, in the supplementary estimates, there is $20 million in grants and another $20 million in funds available for spending priorities. I'd like to know where the $20 million comes from. It must come from some other area. I'm not arguing that there is not huge value added. And what is the $20 million for? Is it part of the program, or is it for the administration of the program?

[Cassie Doyle]

Thank you very much.

That $20 million is definitely part of the program. Our program was authorized to spend $46 million in the fiscal year starting on April 1, 2008. Due to unprecedented demand, this limit was reached for applications dated up to October 31, 2008. So we've had tremendous response to our ecoENERGY retrofit.

As you'll recall, over this last fiscal year the price of energy was really accelerating, and so we received an unprecedented demand. It's necessary for us to increase, and what we are requesting through the supplementary estimates is an additional $20 million for grants for individual homeowners.

[Alan Tonks, Liberal, York South—Weston, ON]

Can I have one last question?

[Leon Benoit, Conservative, Vegreville—Wainwright, AB]

You have time for one short question.

[Alan Tonks, Liberal, York South—Weston, ON]

I'm going to the issue of strengthening Canada's nuclear advantage. Within the budget there's a direct reference to private sector participation. The minister confirmed for the committee today that the department had received the report. Could you tell us explicitly whether there was a recommendation to privatize or not?

[Cassie Doyle]

My associate, Serge Dupont, has been taking a particular lead on the nuclear file, so I'm going to ask him to respond.

[Serge Dupont]

I think your question is whether the department has recommended one course of action or another. I think you'll appreciate that the department makes recommendations to the minister and to the government. The review, as the minister has indicated, is ongoing, to take into account policy factors, business factors, economic factors, market factors. Again, this review is ongoing.

[Alan Tonks, Liberal, York South—Weston, ON]

It's yet to be done. Okay.

Thank you.

[The Chair, Conservative, Leon Benoit]

Thank you, Mr. Tonks.

We go now to the government side again, to Mr. Allen, for up to five minutes.

[Mike Allen, Conservative, Tobique—Mactaquac, NB]

Thank you, Mr. Chair.

I'd like to ask a few questions on a couple of different topics. I want to continue the forestry theme a little, specifically around energy, biomass, and that type of thing.

One of the things that came up a lot in the consultations with some of the communities was a significant interest not only among companies but also among small groups within communities to develop community energy solutions, if you will, in their communities. In some cases, as we all know, one of the major costs for our forest group is energy cost, and one of the ways they see of getting it down is through the use of biomass—if it can be burned in a clean way, obviously.

I would like your comments with respect to whether, through either the clean energy fund or possibly even through the community transition fund, something like that would be available. Is the department thinking that way: that funds would be available for communities to pursue development of these projects and potentially capture the heat and pump hot water, for example, through the systems of the municipalities?

[Cassie Doyle]

That's a great question. It's exactly what the Canadian Forest Service has been promoting and we've also been promoting, under ecoENERGY, for renewable power: the development of biomass in the forest industry. We anticipate that under the community adjustment fund there would be an opportunity for investments that would encourage further development of biomass and electricity from biomass in communities, with the opportunity of selling back electricity to the grid—not only providing biomass for the forest facilities but using it as a source of power in the community.

We haven't defined the final details of the community adjustment fund, but that is one interest that we certainly heard in the pre-budget consultations: the interest within communities to develop this as a diversified aspect of their economy—particularly among those in the forest industry.

[Mike Allen, Conservative, Tobique—Mactaquac, NB]

So that will certainly be under consideration as part of the policy development side of this.

[Cassie Doyle]

Yes, it will.

[Mike Allen, Conservative, Tobique—Mactaquac, NB]

Concerning the $40 million that's going to be for Canada wood and value to wood programs, a number of value-add people I know in my riding are pursuing value-added types of activities, rather than just the sawn lumber. One particular operation is doing veneer products, which they're shipping for skateboards all across the world. It's been very interesting. But they've been challenged with cashflow; that's always a challenge as well.

How do you see companies being able to access this value to wood program easily as an opportunity for possibly providing cashflow?

[Cassie Doyle]

Thanks for that question. I'm going to ask the head of the Canadian Forest Service to respond, Jim Farrell.

[Jim Farrell]

Thank you, Mr. Chair.

Mr. Allen, the value to wood program is made up of two elements. One is a research and development element, to try to move the research along a bit more quickly to those who can use it. But the second and probably the more attractive element is what we call the technology transfer part of it.

We have, with FPInnovations, something in the neighbourhood of 30 to 35 industry advisers in locations across rural Canada—across the country; I'd say in almost every province. Their job is to go into the small to medium-sized manufacturing facilities and give them advice on how to improve their productivity and competitiveness. To a great extent, the secondary manufacturing industry is in those small to medium-sized enterprises, where technical advice makes a big difference to their productivity and competitiveness. We've had this program now for about five or six years, and it has definitely picked up in terms of participation and interest from all of the provinces. We're a financier, but almost every province participates as well, including those in Atlantic Canada.

[Mike Allen, Conservative, Tobique—Mactaquac, NB]

Is there a window or a door into the program that people can navigate to try to help find that?

[Jim Farrell]

Exactly. I would suggest FPInnovations. They have a website, they have offices in Quebec City, Pointe-Claire, and Vancouver. From that, I think you could get the names and the locations of the closest industry adviser to advise any firms that may be interested in participating.

[Mike Allen, Conservative, Tobique—Mactaquac, NB]

Okay.

How much time do I have, Mr. Chair?

[The Chair, Conservative, Leon Benoit]

Your time is up.

Thank you, Mr. Farrell, for answering the questions.

Thank you, Mr. Allen.

We go now to Mr. Hiebert from the Conservative Party, for up to five minutes.

[Russ Hiebert, Conservative, South Surrey—White Rock—Cloverdale, BC]

Thank you, Mr. Chair. I'll transfer the balance of my time, if there's any time left.

As I was going through the estimates, I noticed a couple of smaller details that I thought it might be helpful to get more information about.

On page 3, there's a $50,000 contribution to an EcoCAR competition, a student vehicle competition. Is this a new initiative? How long has this been going on? Who is organizing it? I would imagine this is part of our government's effort to increase the environmental sustainability of energy with respect to vehicles. Can you give us any information about that?

[Serge Dupont]

This is a transfer from Transport Canada. It's related to the contribution agreement for the student vehicle competition, EcoCAR. It's been agreed with Transport that we would be taking the lead in negotiating the contribution agreement for this competition to take place, and therefore we are receiving this money from Transport Canada. That's why it is shown in the supplementary estimates.

[Russ Hiebert, Conservative, South Surrey—White Rock—Cloverdale, BC]

So it's a new initiative?

[Serge Dupont]

That's a good question. It's a three-year competition. I can't find it, I'm sorry.