Mr. Speaker, I rise to address the House on Bill C-23, the Nuclear Safety and Control Act.
In 1946 when the Canadian nuclear industry was in its infancy, Parliament passed the Atomic Energy Control Act which gave the federal government control over the development, application and use of nuclear energy. Fifty years later, despite the dramatic changes in the size and the scope of the nuclear industry, that legislation has never been significantly revised or updated. Clearly changes are long overdue, changes that this House can help bring about today by supporting Bill C-23 at second reading.
I would like to take this opportunity to review the key elements of this proposed legislation so that hon. members will have a true appreciation of why Bill C-23 is important for the nuclear industry and for all Canadians.
I will talk about the paramount importance of worker and public safety and environment protection and a more modern and effective regulatory framework that focuses on these goals. I will talk about reduced overlap and duplication, improved efficiency of the federation, increased competitiveness and job creation but, most important, I will demonstrate that Bill C-23 is a bill of good government.
When the current legislation establishing the federal role in the nuclear sector came into force, Canadians could only dream about the benefits of nuclear technology. Today each and every one of us in this House and each and every one of our constituents has experienced those benefits firsthand.
Nuclear power now accounts for approximately one-fifth of Canada's electricity supply. The nuclear sector has brought tremen-
dous economic benefits to our nation by ensuring a safe and reliable source of energy, supporting industrial growth and high technology jobs and contributing to our balance of trade. Nuclear technology has also brought enormous social benefits. For decades nuclear isotopes have been crucial for a range of medical uses.
The nuclear industry has grown to the point where it affects the lives of Canadians in many different ways. Yet the law governing the industry has not changed significantly since 1946. The focus of regulation is no longer the security of atomic secrets as it was in the 1940s, but it is now on the health, safety and environmental impact of using nuclear technologies.
Societies expectations about how and why government should regulate the nuclear sector have also changed considerably. For 50 years the Atomic Energy Control Board has used its authority under the current act wisely and effectively. The AECB has been influential in the development of strong safety cultures at Canada's nuclear reactors. Its vigilance with regard to safety is one reason why the safety of Canada's nuclear sector is second to none in the world.
Nevertheless, the status quo is no longer acceptable to Canadians or to this government. The current legislation's deficiencies have been noted by the courts, the media, special interest groups, committees of this House and Canada's auditor general.
Bill C-23 addresses these shortcomings by providing for more explicit regulation of nuclear activities and by ensuring that the regulatory body will have the legislated powers needed to fulfil its responsibilities.
Canada's nuclear regulatory agency will be given a clear mandate to focus on public concerns about the safety of nuclear facilities and the environmental impact of nuclear activities in Canada.
In keeping with this mandate, the AECB will be renamed the Canadian nuclear safety commission. This name change will help Canadians better identify with the principal role of the commission and will eliminate confusion with the Atomic Energy of Canada Limited or AECL, the crown corporation responsible for the development and support of Candu nuclear reactors.
The Canadian nuclear safety commission will continue to have responsibility for nuclear security issues. Bill C-23 will ensure a firm basis for implementing Canada's nuclear policy and fulfilling our obligations with respect to the non-proliferation of nuclear weapons. Under the non-proliferation policy, for example, the use of certain nuclear materials including uranium must be fully accounted for by Canada's nuclear customers. Bill C-23 clearly defines the new commission's responsibility for ensuring the proper accounting of these materials.
Nuclear matters are a federal responsibility. Over the past two decades this has led to some jurisdictional problems and to some overlap and duplication in regulations. The federal government has worked with the provinces to address the issue. For example, the government recently introduced amendments to the Canada Labour Code that would allow the government to adopt provincial legislation governing labour matters including labour relations and occupational health and safety, and to delegate responsibilities for administering these laws and regulations back to the provinces.
The proposed nuclear safety and control act includes similar interdelegation mechanisms that will give the Canadian nuclear safety commission the authority to enter into agreements with each province to adopt other relevant provincial standards, codes and laws that would then apply to nuclear activities. This would effectively establish a regulatory regime that respects provincial jurisdiction. The legislation also allows for the responsibility for administering regulations in these areas to be delegated to the provinces.
This new power to co-operate with the provinces is expected to reduce regulatory duplication between federal and provincial orders of government. In so doing it will help reduce administrative costs and establish greater certainty for the industry, thereby increasing the competitiveness of Canada's nuclear sector. This increased competitiveness will in turn preserve and create high tech jobs in Canada.
By explicitly referring to health, safety and protection of the environment, the proposed legislation will clearly match the commission's mandate to public expectations of its role. The government is committed to protecting the health and safety of Canadians and our environment.
The proposed legislation will permit the Canadian nuclear safety commission to order the clean up of radioactive contamination when responsibility for the contamination is unclear, under dispute, or where the polluter refuses to act. Currently the AECB does not have this power. This is precisely the kind of protection for Canadians that the auditor general called for in a report to the House in 1994.
It is also worth noting that the high standard for worker protection enshrined in Bill C-23 has received significant support from labour. In fact I have received a letter from the Canadian Labour Congress urging quick passage of Bill C-23.
As the Parliamentary Secretary to the Minister of Natural Resources I am pleased to inform the House that Bill C-23 has a strong environmental focus which is in keeping with the concerns of all Canadians and with the promise made in the red book that the Liberal government would lead in protecting Canada's environment.
Bill C-23 will explicitly require that the environmental effects of a proposed nuclear facility be assessed as part of the commission's licensing process. However I assure hon. members that the legislation will not in any way change the process for ensuring that the requirements of the Canadian Environmental Assessment Act continue to be met. In addition, Bill C-23 will make it possible to substitute the commission's hearing process for that of the CEAA.
The proposed legislation also contains many other characteristics of a modern regulatory system. The power of federal inspectors will be enshrined in the law. The maximum penalty for offences will increase dramatically from $10,000 to $1 million.
The new commission will also have the clear authority to order remedial action where necessary and to require financial guarantees for decommissioning, thus ensuring that owners meet high environmental standards.
At the same time the proposed legislation is intended to conform with the mining reclamation trust provisions of the Income Tax Act. This means that mining companies could be eligible for certain tax benefits, if they are required to settle such a trust as a licence condition.
Bill C-23 authorizes the new commission to charge fees to recover the costs associated with its regulatory activities. Although the AECB has collected fees from licensees to recover costs since 1990, its authority to do so is not explicitly legislated.
Bill C-23 proposes that the number of members of the commission be increased from the current five to seven. The government believes it is important to have a sufficient number of commissioners to deal expeditiously with all licensing decisions. It has become apparent that the current complement of five board members, only one of whom is full time, is insufficient. We believe the commission needs members who represent a wide range of expertise to deal with the broader set of issues now considered by this regulatory body.
These objectives can be achieved by increasing the number of positions on the commission. The cost of this increased representation, which amounts to approximately $100,000 per year, will be funded from internal reallocations.
Like any other modern regulatory agency, the new commission needs certain authority to function effectively. Consequently the commission will be declared a court of record and will have the authority to conduct formal public hearings, compel witnesses to appear, take evidence and control its proceedings.
Bill C-23 responds to the calls from many quarters for a modern law that will reflect the federal government's responsibilities and powers relating to the regulation of the nuclear industry.
The legislation will enable the federal government to ensure the nuclear industry continues to operate in a manner that protects the health and safety of Canadians and their environment.
Bill C-23 is an important step toward avoiding unnecessary regulatory overlap and duplication between the federal and provincial orders of government. It will also ensure that federal regulations are applied in a fair and just manner.
The steps will minimize the cost to the nuclear industry and allow it to pursue opportunities in an increasingly competitive world, creating new jobs for Canadians and contributing to the country's economic growth.
The commission will be better equipped than the current Atomic Energy Control Board to conduct public hearings and environmental assessments. It will have clear powers to inspect nuclear facilities and other premises where licensed activities are carried out, to enforce federal regulations, to order environmental clean-ups, and to seek suitable penalties.
Further, the use of additional commissioners will enable the commission to work in a cost effective manner while ensuring balanced decision making that fulfils the public interest.
Clearly the proposed legislation represents good government in action. The legislation acts on commitments outlined in the recent speech from the throne for sustaining our environment and for ensuring a modern regulatory regime that will meet the needs of the 21st century.
Based on an open and honest discussion of Bill C-23 and its many merits, I am confident hon. members on both sides of the House will join me in voting to send the legislation to committee.
