Nuclear Liability and Compensation Act

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

This bill is from the 39th Parliament, 2nd session, which ended in September 2008.

Sponsor

Gary Lunn  Conservative

Status

Third reading (House), as of June 19, 2008
(This bill did not become law.)

Summary

This is from the published bill. The Library of Parliament has also written a full legislative summary of the bill.

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.

Similar bills

C-22 (41st Parliament, 2nd session) Law Energy Safety and Security Act
C-15 (40th Parliament, 3rd session) Nuclear Liability and Compensation Act
C-20 (40th Parliament, 2nd session) Nuclear Liability and Compensation Act
C-63 (39th Parliament, 1st session) Nuclear Liability and Compensation Act

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from Parliament. You can also read the full text of the bill.

Bill numbers are reused for different bills each new session. Perhaps you were looking for one of these other C-5s:

C-5 (2021) Law An Act to amend the Criminal Code and the Controlled Drugs and Substances Act
C-5 (2020) Law An Act to amend the Bills of Exchange Act, the Interpretation Act and the Canada Labour Code (National Day for Truth and Reconciliation)
C-5 (2020) An Act to amend the Judges Act and the Criminal Code
C-5 (2016) An Act to repeal Division 20 of Part 3 of the Economic Action Plan 2015 Act, No. 1

Votes

May 6, 2008 Passed That Bill C-5, An Act respecting civil liability and compensation for damage in case of a nuclear incident, be concurred in at report stage.
May 6, 2008 Failed That Bill C-5 be amended by deleting Clause 47.
May 6, 2008 Failed That Bill C-5 be amended by deleting Clause 32.
May 6, 2008 Failed That Bill C-5, in Clause 68, be amended by deleting lines 1 to 3 on page 20.
May 6, 2008 Failed That Bill C-5 be amended by deleting Clause 30.
May 6, 2008 Failed That Bill C-5, in Clause 66, be amended by deleting lines 10 to 12 on page 19.
May 6, 2008 Failed That Bill C-5, in Clause 66, be amended by deleting lines 7 to 9 on page 19.
May 6, 2008 Failed That Bill C-5, in Clause 66, be amended by deleting lines 3 and 4 on page 19.
May 6, 2008 Failed That Bill C-5 be amended by deleting Clause 21.

Nuclear Liability and Compensation ActGovernment Orders

June 19th, 2008 / 5 p.m.

NDP

Catherine Bell NDP Vancouver Island North, BC

Mr. Speaker, my hon. colleague from Burnaby—New Westminster understands what this bill means and why we tried to amend it but, sadly, could not get it amended in committee and could not get it amended in the House at report stage. We want our voices to be heard loud and clear, which is what he has done, about the problems in the bill and why it should not go forward.

One of the biggest issues is the amount of the liability. I want to ask a similar question to the one I asked my Bloc colleague. Does he think the government is devaluing Canadian communities that have nuclear facilities where there could be an incident? When we say that a community is only worth $650 million and we know it is worth a lot more, does he think the government is devaluing Canadian communities by having such a low liability?

Nuclear Liability and Compensation ActGovernment Orders

June 19th, 2008 / 5 p.m.

NDP

Peter Julian NDP Burnaby—New Westminster, BC

Mr. Speaker, the member for Vancouver Island North represents an area that has been devalued by the Conservative government, North Vancouver Island. Through the devastating softwood lumber sellout, she has seen first-hand what she has had to do to fight on behalf of her communities.

The Conservative government basically sold out pretty well every community in British Columbia, certainly, northern communities across the prairies, northern Ontario and northern Quebec, with the softwood lumber sellout. Ten thousand jobs were lost. There was a hemorrhaging of jobs to the United States and a billion dollars were given up, which is absolutely ridiculous.

We see yet another initiative of the Conservatives as part of their great agenda to sell out Canadian communities. There is absolutely no doubt that when we limit liability to $650 million and we know the potential in a nuclear catastrophe is in the order of hundreds of billions of dollars, when we see that other countries like Germany and Japan have unlimited liability, which forces the companies to assure proper practices in the nuclear sphere, and when we see it in its entirety, it is very clear that the Conservative government does not value Canadian communities, whether they be in Newfoundland and Labrador, or on Vancouver Island or in the north.

Nuclear Liability and Compensation ActGovernment Orders

June 19th, 2008 / 5:05 p.m.

NDP

Thomas Mulcair NDP Outremont, QC

Mr. Speaker, based on the analysis he just gave, does my hon. colleague not agree that it would actually be better for Canada to find ways to produce electricity that are permanent, sustainable and viable, unlike atomic energy? Does he not also think that, since such a low limit is being established, there is good reason to believe that that limit could be surpassed?

Indeed, as the member just mentioned, would it not be better to follow the example of countries that are setting much higher limits as a guarantee that companies will do everything they can, knowing the consequences they face in the event of a tragedy?

Nuclear Liability and Compensation ActGovernment Orders

June 19th, 2008 / 5:05 p.m.

NDP

Peter Julian NDP Burnaby—New Westminster, BC

Mr. Speaker, I thank my hon. colleague from Outremont for his question.

He is quite right. It is important to establish a strategy that includes other kinds of energy.

Fortunately, we in the NDP have done so recently, with the energy plan we are currently establishing in order to really create a new kind of sustainable development in Canada. We believe that a vast majority of Canadians support this new kind of development.

I know the hon. member represents a very important community in Quebec and I also know that he is worried about the position of the Bloc Québécois, who wanted to follow the NDP's lead regarding Bill C-5, but who threw in the towel and said they would stop fighting the Conservative government, as one Bloc member just mentioned.

The Bloc says the Conservatives and the Liberals are too strong and that it cannot do anything. We saw this with the softwood lumber agreement and we are seeing it again with air safety. Time and time again, the Bloc Québécois refuses to represent Quebeckers—

Nuclear Liability and Compensation ActGovernment Orders

June 19th, 2008 / 5:05 p.m.

The Acting Speaker Royal Galipeau

It is with regret that I must interrupt the hon. member for Burnaby—New Westminster. We are now resuming debate.

The hon. member for Argenteuil—Papineau—Mirabel would like to take the floor, but it is the member for Outremont's turn to speak.

Nuclear Liability and Compensation ActGovernment Orders

June 19th, 2008 / 5:05 p.m.

NDP

Thomas Mulcair NDP Outremont, QC

Mr. Speaker, such excitement. For a moment I thought the member for Argenteuil—Papineau—Mirabel would speak, but no. Maybe one day we will hear his voice in this House.

We are talking about an extremely important bill that aims to relieve the nuclear industry of its responsibility. Nuclear energy represents very real dangers. Because using nuclear energy to produce electricity is so dangerous, the Conservative government, which has no vision for sustainable development, wants to make things easier for companies should an accident occur.

What I am about to say may seem incredible, but to the south of us, in the United States, the limit on compensation that could be paid out for a nuclear accident is $10 billion. The Conservatives would like to set the limit at $650 million. However, we know that the total cost of damages from an accident like Chernobyl would be hundreds of billions of dollars. For a single accident. The proposed amount is obviously insufficient. It does not even represent 1% of the potential damages in the event of an accident, which is not something anyone wants to see happen, of course.

How did we get to this point? The answer is simple. For at least the past 13 years, the Liberals claimed they were doing something about sustainable development, but in reality they were not. They were all talk and no action, as is their habit. Although we do not agree with the Conservatives, at least they do not pretend to care about future generations. All they want to do is get as much as they can now, look after today and let tomorrow look after itself. That is their attitude, and it is reflected in all their decisions.

We are faced with a situation that came about through Liberal inaction: no vision, no plan for clean, renewable energy, no hydrogen, no wind power, no solar power or hydro. What we have instead is an attempt to promote nuclear power in Ontario and Saskatchewan.

I want to be very clear. The NDP is opposed to any new nuclear infrastructure in Canada. We find it regrettable that, instead of looking at potential energy sources—and what Quebec is doing is a perfect example—instead of developing clean, renewable energy sources, the government is relying on a technology that is more than 60 years old.

As I just demonstrated with the case of Chernobyl, in Ukraine, nuclear accidents can have devastating consequences. I am talking about damage in the hundreds of billions of dollars, as well as tens of thousands of deaths. Many people died immediately, as a direct result of the accident, but a huge number of people also developed cancer. By looking at the concentric circles emanating out to Europe from Chernobyl, we can even see changes in types of cancer 5, 10 and 15 years after the accident, which occurred about 20 years ago.

I am reading a book about Chernobyl and was interested to see that the accident prompted Gorbachev and Reagan to focus on the urgent need to work for peace. However, it seems as though these lessons—pursuing peace and working to eliminate the real danger of any form of nuclear energy, whether it be a nuclear weapon or, in the case of Chernobyl again, a series of reactors to produce electricity that could get out of control—are often lost.

Let us look at how extraordinary Canada is. It is the second largest country in the world, in terms of geographic area, with a small population of barely 35 million. In this country, solutions have varied over the years and generating electricity is a provincial and local responsibility. We could work, for example, with wind energy. Did you know that Quebec is heading toward a production of 4,000 megawatts? That means 4,000 times a million watts in wind energy. We have potential wind energy sites all across Canada, in other words, sites that are particularly favourable for generating wind energy, particularly in regions where first nations live.

Last week, quite rightfully, the government apologized for some of the harm caused to the first nations. What an incredible opportunity for us to have a vision of the future, to work with the provinces, which are primarily responsible, to provide incentives, including tax programs, to develop clean and renewable energy that comes from the wind.

If we combine wind energy with hydroelectricity, which is often a potential source of energy across Canada, we can, when weather and market conditions are suitable—why not export clean, renewable energy if we have it in abundance?—we can create something that is sustainable and also very useful for future generations.

Quebec's current finance minister, Monique Jérôme-Forget, recently went to different capital cities to explain the intrinsic value of Hydro-Québec, and I must admit that I more or less agree with her. She was talking about the wealth that can be created, but the Conservatives do not see it that way. To them, the only thing worth doing in Canada is to develop the oil sands in Alberta as quickly as possible and soon those in Saskatchewan, too.

In an extraordinary new book by Montreal journalist William Marsden, aptly entitled Stupid to the Last Drop, he considers the oil sands and recalls a historical fact. In the early 1950s, the suggestion was made that to get oil out of the oil sands in Alberta, it would be a good idea to set off atomic bombs here and there throughout that province. Plans were created and analyses carried out. It would not surprise me to learn that they actually tried that.

Something almost as stupid is now being proposed: the construction of a number of nuclear plants to generate the steam used to extract the oil from the tar sands. This is already an unsustainable situation. Natural gas is presently used to extract oil from tar sands. And the oil is being exported directly to the United States without any value added.

This is somewhat similar to the mistake made, generation after generation, with respect to our forests. My colleague just explained to us how ridiculous it was to sell out to the Americans. Even if there were real concerns about the sustainability of certain forestry practices, that did not at all justify, in light of NAFTA, giving away $1 billion just to settle the dispute. But that is what was done. We were directly exporting our forest products, while the value added, the processing, was done elsewhere, primarily in the United States. Most of the time, this is also true of ores and our other resources from the primary sector.

The same thing is happening with oil. The new Keystone project, just approved by the National Energy Board, proposes to export 200 million litres per day to the United States. Despite the problems of extracting the oil and the pollution that already exists in Canada, the errors will be stupidly compounded by exporting the oil in bulk to the United States, along with all the jobs in processing.

For the Keystone project alone, that amounts to 18,000 jobs that will be exported to the United States. The environmental problems will be placed on our shoulders and on those of future generations and the first nations. All the benefits will be exported. With regard to the obvious problem of NAFTA, we are creating a situation where the Americans can, under the NAFTA rules of proportionality, demand that we continue sending the same amount.

This bill exemplifies the Conservatives' lack of vision in terms of energy production. They have gone so far as to draft a bill to help the nuclear industry avoid its civil responsibility. It is outright shameful and I am very proud to be a member of the only political party that has the courage to rise in the House of Commons and to express its disapproval. I am very disappointed that the Bloc and the Liberals support the Conservatives in this matter.

Nuclear Liability and Compensation ActGovernment Orders

June 19th, 2008 / 5:15 p.m.

NDP

Charlie Angus NDP Timmins—James Bay, ON

Mr. Speaker, I believe the member has a good understanding of the problem with this bill. He was once Quebec's environment minister. Therefore, he has a lot of experience with the need to develop a long-term plan, with environmental requirements, and with the effects of power-generating projects. The NDP is opposed to this bill and to the development of the nuclear industry.

The reason for our opposition is there are so many issues of liability as well as unanswered questions.

Clearly no one has never come up with a plan for the waste, for the MOX fuel, for the spent rods and for the contamination that is created in the nuclear industry. It is shipped in barrels and moved on trucks. Continually the great lands of the north are looked at as an ideal dumping ground. I am proud to say the citizens of Timmins—James Bay will stand steadfast in ensuring that such waste is never dumped on us. However, there is lack of a plan for contaminated substance that has thousands of years of liability and impact on the environment.

From his many years of experience with the Government of Quebec, could he explain to us, if this process is so safe, why we still have not found anybody, any jurisdiction or any way of addressing or accepting the waste left from these projects?

Nuclear Liability and Compensation ActGovernment Orders

June 19th, 2008 / 5:15 p.m.

NDP

Thomas Mulcair NDP Outremont, QC

Mr. Speaker, my colleague and friend, the member for Timmins—James Bay, has hit the nail right on the head with his question. That is where the real problems of sustainable development, longevity and viability arise.

Like him, people on Quebec's North Shore are concerned about certain companies. This concern is not merely theoretical. There are some companies—and I can comment on them because I knew them when I was Quebec's environment minister—that have definite designs on the region because they think there is nothing there, nothing but a few people, anyway. They think the place is huge and that they can always dig deep enough.

That is exactly the mentality underlying this bill. The fact that they are exploring the vast reaches of northern Ontario and Quebec looking for places to dig and bury waste, hoping that it will not escape somehow, which makes no sense at all, is proof positive of the problems inherent in nuclear development, just like the problems with this bill to limit liability.

The very idea of limiting liability reveals the danger this kind of activity poses. The government recognizes these threats, but it does not want to reduce them; it wants to limit companies' liability. That is why this bill is so shameful, and that is why it is so unfortunate that the Bloc Québécois and the Liberals are supporting the Conservatives on this one.

Nuclear Liability and Compensation ActGovernment Orders

June 19th, 2008 / 5:20 p.m.

NDP

Catherine Bell NDP Vancouver Island North, BC

Mr. Speaker, I referred to the bill as a sad case of trying to introduce carbon offsets for our greenhouse gases in the oil sands. The Conservative government seems to think nuclear is clean energy and it is sadly mistaken.

Because my time is so short, does my hon. colleague think the $650 million, this small amount of money attributed to operators of nuclear facilities, is basically a devaluing of Canadian communities? So many communities that have nuclear facilities are populated areas with businesses, families and homes and these assets are worth a lot more, collectively, than $650 million. Is it a sellout to our Canadian communities to not go with an unlimited liability?

Nuclear Liability and Compensation ActGovernment Orders

June 19th, 2008 / 5:20 p.m.

NDP

Thomas Mulcair NDP Outremont, QC

Mr. Speaker, my colleague is exactly right. It is a further illustration of the fact that the Conservatives simply do not believe in sustainable development. What is saddening today is the Liberals and the Bloc are endorsing their positions against sustainable development.

Nuclear Liability and Compensation ActGovernment Orders

June 19th, 2008 / 5:20 p.m.

NDP

Bill Siksay NDP Burnaby—Douglas, BC

Mr. Speaker, I am pleased to have the opportunity to participate, at least for a little while, in this important debate on Bill C-5, An Act respecting civil liability and compensation for damage in case of a nuclear incident, also known as the nuclear liability compensation act, or as some of my colleagues in this corner of the House have referred to it as the worst nuclear practices act.

That should give an indication of where New Democrats stand on this issue. We have been very opposed to the legislation. We thought it needed significant improvement before we would be able to support it. Unfortunately, despite doing our best in committee and later here in the House, those improvements did not happen and the bill is headed to be endorsed by the Liberals, the Bloc and the Conservatives. We think that is very disappointing for Canadians.

We know many Canadians have very serious concerns about nuclear energy. We know many Canadians understand that nuclear energy is not green energy, that the potential for accidents, the safety concerns surrounding nuclear energy, are very significant. Also the serious concerns about the disposal of waste from the nuclear power process have also baffled and troubled Canada for many years.

The member for Timmins—James Bay made it very clear that attempts to deposit waste from nuclear plants in northern Ontario will be resisted by the people of northern Ontario again and again because of the problems with that kind of process and waste.

There are many problems with the legislation. The legislation was developed to limit the amount of damages a nuclear power plant operator or fuel processor would pay out should there be an accident causing radiological contamination to property outside the plant area itself. The legislation really only applies to power plants and to fuel processors. Those unfortunately are not the only places where nuclear material is used, where there is the potential of an accident that might cause a claim for liability and compensation.

The current legislation dates from the 1970s and it is incredibly inadequate. We know changes are needed to that legislation. Right now under the existing legislation the liability limit is only $75 million, which is a pittance when we consider the kinds of accidents and liability claims that might come about as the result of a nuclear accident.

The proposal before us, however, only considers raising that to $650 million, which is the rock bottom of the international average of this kind of legislation around the world. We know, for instance, the liability in Japan is unlimited, with each operator having to carry private insurance of $30 million. The liability in Germany is also unlimited, except for nuclear accidents caused by war, and each operator has to have almost $500 million in private insurance. That is a far different approach than we take in Canada. Even in the United States, there is a limit of $9.7 billion U.S., with each operator needing up to $200 million in insurance.

The Conservatives' attempt pales by comparison with the assessment of other countries of what the level of liability, what the dollar amount attached to liability, should be. It is easy to understand why it should be so high when we consider the kinds of problems that would result from a serious nuclear accident.

The problem also with the legislation is that once the $650 million liability threshold is reached, the Canadian taxpayers are on the hook for the rest. A nuclear operator would only have to pay out a maximum of $650 million, while the public would be on the hook for millions, possibly billions of dollars in the case of an accident. There would be a special tribunal set up by the Minister of Natural Resources to look at the liability beyond $650 million and that liability would be paid out of the public purse. That is not an appropriate approach that Canadian taxpayers could support.

There are a lot of concerns. Many believe the legislation is an attempt to make the situation for the privatization of Canada's nuclear industry more attractive to foreign corporations to step in and get involved in the ownership of the Canadian nuclear industry, that the Conservatives have a plan to move that way. Given some of their other movements and their other steps, it is hard not to believe that it is what they have in mind.

British Columbia fortunately does not have nuclear power generation, but we are concerned about nuclear power and fuel processing at the Hanford station in Washington state in the U.S. It has been a long time source of concern for many people in British Columbia. We know that over many years the nine nuclear reactors and five massive plutonium processing complexes put nuclear radioactive contamination into the air and into the water of the Columbia River.

Thankfully the Hanford site has been decommissioned and is now in the process of a huge clean up, which will cost a minimum of $2 billion a year, and this clean up will go on for many decades. There are other specialized facilities to aid in the clean up, like the vitrification plant, which is one method designed to combine dangerous waste with glass to render it stable. That facility will cost $12 billion. Sadly the clean up has been put off. The timelines originally scheduled will not be met.

Billions of dollars are being spent just to remediate a former nuclear processing plant area and a nuclear generating site. This shows the extreme cost of an accident, which would be far more expensive.

Nuclear Liability and Compensation ActGovernment Orders

June 19th, 2008 / 5:25 p.m.

The Acting Speaker Royal Galipeau

It being 5:30 p.m., the House will now proceed to the consideration of private members' business as listed on today's order paper.

When we return to the study of Bill C-5, there will still be three minutes for the hon. member for Burnaby—Douglas.