Nuclear Liability and Compensation Act

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

This bill was last introduced in 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.

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.

Elsewhere

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

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 / 4:15 p.m.


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NDP

Catherine Bell NDP Vancouver Island North, BC

Mr. Speaker, I listened carefully to the speech by my hon. colleague from Beauharnois—Salaberry and I take exception to several things she said but one in particular. It is not irresponsible to put forward amendments to try to make a bill better.

I will not apologize for putting forward amendments. It may take a bit of time but it is our due diligence, which is something we must do in the House. It is our job as members of Parliament, as people who represent our communities and our country, to make the best of a bill.

Yes, the NDP put forward amendments. She mentioned that we did not put forward any at committee but that is absolutely wrong. The NDP introduced 30 amendments in committee but, unfortunately, they were not supported. These amendments would have made the bill better and stronger.

My colleague from Western Arctic introduced those same amendments in the House at report stage. They were ruled in order by the Speaker and we debated them. We were hoping the broader House might take an interest in them because, unfortunately, in committee the Bloc, the Liberals and the Conservatives did not.

The other thing my colleague said was that if there were an incident or accident at this moment, Canadians would not be on the hook. AECL is owned by the Government of Canada and if there were to be any kind of situation, especially involving the NRU reactor at Chalk River, Canadians would be on the hook for that.

I want to ask my colleague if she understands any of what I said.

Nuclear Liability and Compensation ActGovernment Orders

June 19th, 2008 / 4:20 p.m.


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Bloc

Claude DeBellefeuille Bloc Beauharnois—Salaberry, QC

Mr. Speaker, sometimes when we say things in this House—and I am not criticizing the interpreters—we speak quickly and it can be very difficult to interpret our comments properly. If I may, I would like to make a few corrections.

I never said that the NDP never proposed amendments in committee. I said that it did propose amendments in committee and that a series of other amendments had been proposed at report stage. I found it too bad that those that were proposed at report stage had not been presented in committee for debate so that we could call new witnesses to look into the new amendments further. When making accusations, one has to be sure to have understood what the other said. That is the first clarification I want to make.

I would like to make a second clarification. I never said that people would not be entitled to compensation. I said—and I will say it again slowly—that, currently, in the event of a nuclear incident causing harm to people or communities, the amount of compensation would be $75 million, which is considered insufficient. In that sense, the status quo is not acceptable.

Nuclear Liability and Compensation ActGovernment Orders

June 19th, 2008 / 4:20 p.m.


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NDP

Catherine Bell NDP Vancouver Island North, BC

Mr. Speaker, I only have 10 minutes on debate, but I could speak for 20 or 30 minutes on this subject.

As I mentioned in some of my questions to my colleagues, this bill was put forward by the government to amend the Nuclear Liability Act. Unfortunately the bill as put forward was not acceptable to the NDP. We felt it needed to be amended quite substantially, so we proposed many amendments at committee. Unfortunately, they were not supported by my colleagues at committee.

We are quite concerned because we feel the bill is being put forward in this fashion in an effort to aid the government to use nuclear energy in this country basically as a carbon offset. This is the biggest offset plan that anybody could have imagined.

Unfortunately, seeing nuclear energy as a clean source of energy is also misguided. The production of nuclear energy causes waste and that waste has to be dealt with. We have never been able to find an acceptable solution for dealing with the waste. It is still there. It will last for millions of years. It is highly toxic and dangerous. At any point in time an incident could result.

With all these things in mind, we felt it was incumbent upon us at committee and in the House to put forward our recommendations and amendments to try to make the bill better so that we could support it.

We also agree that as it stands now, nuclear liability in this country is far too low at $75 million. That is not nearly enough to cover any kind of disaster in any community. It needs to be increased, but to increase it to the minimum international standard is also not the right way to go. That is why we put forward amendments to increase it to an unlimited liability on the part of the nuclear operator. We feel very strongly that Canadians, including Quebeckers, should not be put on the hook by having their tax dollars used to pay the potential billions of dollars that would be needed to cover the cost of a nuclear incident in this country.

We do have some facilities near our borders. If a nuclear incident were to occur near our borders, what would be the impact from other countries? What would we be on the hook for there?

This is a serious issue and we take it very seriously. We are not here to try to hold up the bill just to play games. We are very concerned about this issue. We want to make the bill better and something we could support.

Right now there is an issue with AECL, the company that operates under the government. The taxpayers basically own this company. If there were to be an accident or an incident, the taxpayers would be on the hook for that company. We would never want to see that.

Earlier today my colleague from Winnipeg referenced a book, Nuclear Power Is Not the Answer, by Helen Caldicott. I found some interesting passages in this book, which I want to share with the House and with Canadians. It talks about accidental, and unfortunately, terrorist induced nuclear meltdowns, and says:

Nuclear power plants are vulnerable to many events that could lead to meltdowns, including human and mechanical errors; impacts from climate change, global warming, and earthquakes; and, we now know, terrorist attacks.

I would like to read a couple of excerpts to give people a sense of what could happen and why it is important that we have unlimited liability on our facilities so that Canadian taxpayers are not on the hook.

We know also that in this country the reactors are aging. The NRU reactor at Chalk River is around 50 years old. The Canadian Nuclear Safety Commission is looking at having to allow that unit to operate longer. It is only supposed to operate until 2011 but we are looking now to 2016. It is going to continue to operate because there is no replacement for that.

The aging nuclear facilities in this country will have more and more problems as time goes by. Metal fatigue, rust and all kinds of things can happen as things age. We have to ensure that we have the safety and protection of Canadian people in mind when we are talking about nuclear liability.

In her book, Nuclear Power Is Not the Answer, which is an American publication, Dr. Caldicott says that even though today's reactors were designed for a 40 year life span, the NRC, the Nuclear Regulatory Commission, acceding to industry pressure, is currently approving 20 year extensions to the original 40 year licences for nuclear power plants.

That is a concern. Although that refers to the U.S., the same kinds of things are happening in Canada. I am concerned about these aging facilities, that we do not have replacement power. They do not have to be nuclear facilities. They could be cleaner energy alternatives such as solar and wind. We could look at doing an east-west grid across this country.

We could have alternatives to nuclear power. We would not have to worry about pressure being put on our Nuclear Safety Commission to prolong the licences for these facilities if we had alternatives to that energy source. It is quite a concern. If the aging facilities called on the Nuclear Safety Commission to extend their licences for longer periods, we would have to start worrying about the near misses that might happen in continuing the use of those aging facilities.

Another thing that Dr. Caldicott talks about is global warming. Who would have thought that global warming would have impacted nuclear facilities. She says in her book that there are many facilities that are built on coastlines which could possibly be impacted by tsunamis or earthquakes in places around the world such as India. They could be impacted by global warming.

She talks about terrorist attacks, which we are quite concerned about as well. According to this book, the necessary steps have not been taken to increase security around nuclear facilities in case of a terrorist attack. We have seen increased security measures at airports and other border security measures, but we have not had an increase in security around nuclear facilities.

We need to make sure that the steps are in place to protect Canadians in the event of a nuclear accident. We must make sure that the liability on the part of the operator is a lot higher than $650 million, because we know that if there were an accident, the liability costs would be in the billions of dollars.

Nuclear Liability and Compensation ActGovernment Orders

June 19th, 2008 / 4:30 p.m.


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Bloc

Claude DeBellefeuille Bloc Beauharnois—Salaberry, QC

Mr. Speaker, I listened very carefully to my colleague across the way. We share many of the same concerns about the safety of citizens and communities in terms of nuclear energy.

We have grown increasingly worried since the Conservative government interfered politically with the Canadian Nuclear Safety Commission by firing its president, Ms. Keen, last year. That action shattered the trust of Quebeckers and Canadians. And since our nuclear reactors are getting older, trust in the commission is waning.

My colleague works with me on the Standing Committee on Natural Resources. I would like to ask her if, in light of the testimony we have heard during our current study of the MAPLE and Chalk River reactors, she is reassured when it comes to nuclear safety.

Nuclear Liability and Compensation ActGovernment Orders

June 19th, 2008 / 4:30 p.m.


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NDP

Catherine Bell NDP Vancouver Island North, BC

Mr. Speaker, that is a very good question. I know that the member is very concerned about nuclear safety as because that came up in the discussions at committee and she put forward questions in a very forthright manner. I have to congratulate her on her interventions there.

Yes, it is an issue of trust for many Canadians and something that was shaken very severely back in November when we had the incident at the NRU reactor in Chalk River. Canadians are very concerned.

I have received many calls and many letters from my constituents and we do not even have nuclear facilities in our area, but they are worried about what might happen across this country.

This is an issue of national trust and we must do everything we can to ensure that Canadians are protected in every way.

Nuclear Liability and Compensation ActGovernment Orders

June 19th, 2008 / 4:35 p.m.


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NDP

Charlie Angus NDP Timmins—James Bay, ON

Mr. Speaker, I was very interested in the points my hon. colleague raised about these aging facilities and the real serious questions about safety.

I want to be very careful. As someone who is closer to 50 than 30 now, I am a little more sensitive to the issue of age. However, I would not drive a Studebaker. I would not use a reel-to-reel tape recorder. I would not use an IBM adding machine. I would not wear a ducktail or have my wife go around in a poodle skirt.

Now I know that members in the Conservative Party probably figure Canada peaked mid-1950s and it has been downhill ever since, but I certainly also would not want the safety of our country to be dependent on facilities that were not meant to last past 50 years, facilities with incredible risks of liability.

Given the fact that the Conservative government, which again probably still is in the black and white world, fired the head of the regulatory safety commission that is looking over these aging energy behemoths, I would like to ask my hon. colleague if she has any concerns about the state of our present facilities.

Nuclear Liability and Compensation ActGovernment Orders

June 19th, 2008 / 4:35 p.m.


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NDP

Catherine Bell NDP Vancouver Island North, BC

Mr. Speaker, this is another good question from my colleague. I go back to what my colleague from the Bloc also asked. The nuclear safety commissioner was basically fired in the dead of night for doing her job of protecting Canadians. This has again shaken the trust of Canadians.

We know that the NRU unit is 50 years old. It is starting to deteriorate. Increased safety measures are having to be put in place and yet, there is nothing coming forward for the replacement of this facility which makes, primarily, medical isotopes. Unfortunately, this is something that we have to get our heads around.

Nuclear Liability and Compensation ActGovernment Orders

June 19th, 2008 / 4:35 p.m.


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The Acting Speaker Andrew Scheer

It is my duty pursuant to Standing Order 38 to inform the House that the questions to be raised tonight at the time of adjournment are as follows: the hon. member for Kitchener Centre, Elections Canada; the hon. member for Davenport, Cluster Bombs.

Nuclear Liability and Compensation ActGovernment Orders

June 19th, 2008 / 4:35 p.m.


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Bloc

Mario Laframboise Bloc Argenteuil—Papineau—Mirabel, QC

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

I am especially pleased to be speaking right after our critic, the member for Beauharnois—Salaberry, who does an excellent job and very capably represents the Bloc on the Standing Committee on Natural Resources. A specialist in community services, she always defended peoples' interests when she was in business or working in the community. She always paid special attention to the men and women around her. That is why she is capable of defending her constituents every day, and that is why our colleague from Beauharnois—Salaberry sits on the Standing Committee on Natural Resources.

I am not an expert. I have some things to say. I listened to her speech and learned from it. However, I do understand the political game the NDP is playing. It will always astound me, because the NDP has never been in power in this country—

Nuclear Liability and Compensation ActGovernment Orders

June 19th, 2008 / 4:35 p.m.


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NDP

Peter Julian NDP Burnaby—New Westminster, BC

In five provinces and one territory—

Nuclear Liability and Compensation ActGovernment Orders

June 19th, 2008 / 4:35 p.m.


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Bloc

Mario Laframboise Bloc Argenteuil—Papineau—Mirabel, QC

We will not talk about the disasters in the provinces or the NDP disasters in Ontario. This member makes me laugh when he says that the NDP has been in power in five Canadian provinces. In any event, it has never been in power federally. We have an advantage over the NDP in that we know we will never be in power, whereas the NDP is doing everything it can to come to power.

The NDP will never come to power for the simple reason that the New Democrats do not get it. That is the tragedy of the New Democratic Party: it does not understand. It does not understand that the Conservative Party introduced this bill on compensation because it wants to develop nuclear energy.

We know that, in Quebec, nuclear energy will not solve all our problems. Those days are gone. We have plants in Gentilly, but those days are gone. We have moved on to hydroelectricity. We in Quebec do know, though, that we are going to have to pay 22% of the bill when there is damage. That is a fact.

Every day in committee, the member for Beauharnois—Salaberry defends the interests of Quebeckers, as I do every day, and as all our Bloc colleagues do. Our objective is to defend our fellow citizens. We are Quebeckers.

This bill has one benefit: everyone agrees that the $75 million for compensation is out of date. It is true that we would have liked to improve on the $650 million.

We would have liked to have supported the NDP, except its problem is that it did not understand that the Conservatives and the Liberals were together and had decided that $650 million was enough. What the NDP is doing is just delaying the implementation of this bill. In the meantime, if there were an accident, there would be no bill to guarantee the $650 million in compensation.

As the member for Beauharnois—Salaberry said, at least the bill states that it will be reviewed every five years. If the minister ever finds that the compensation is insufficient, he will be able to increase the amount. Once again, it is a matter of understanding the dynamics of politics.

Earlier, the NDP critics said that they are not playing politics. When the Liberals say white, all they do is say black. It is always the same. Since I came here in 2000, it has always been the same. In their approach to politics they are cut from the same cloth as the Liberals. They look at what the Liberals are going to do and then decide to do the opposite.

That amazes me, especially when we are talking about issues as important as compensation for damage in case of a nuclear accident. It does not need to be spelled out. We know that reactors, not just in Canada, but throughout the world, are not in good shape. We know that these nuclear reactors are dangerous.

So it is important to be able to counter that. Obviously the Conservatives want to develop this energy system. It is really something to hear the Minister of Natural Resources claim that it is a clean energy, yet no one knows what to do with the nuclear waste.

Furthermore, the tragedy for Quebeckers is that the government wants to bury the nuclear waste in the Canadian Shield in Quebec. We are not the ones producing the waste, and we are the ones getting stuck with it.

Every day in this House, the Bloc Québécois will fight tooth and nail to keep nuclear waste that has been produced in other provinces from being buried in Quebec. Imagine. Other members in this House need to realize this.

In Quebec, we decided to develop hydroelectricity without a penny from the federal government. I hope that no one faints: we did not get one penny from the federal government.

Quebeckers alone paid for the development of hydroelectricity, through their taxes and their hydro bills, which they pay to Hydro-Québec, a crown corporation. The federal government has never contributed a cent, yet Quebec has always paid 22% to 25% of the costs of nuclear energy based on its contribution and its population compared to that of Canada. Quebec has always footed approximately a quarter of the total bill for development of nuclear energy, non-renewable energies and fossil fuels, the oil sector and all of the investments made. That is a fact.

So there is no reason to be surprised if the Bloc Québécois members rise in this House to defend the only solution we see—quite simply, Quebec's separation—so that we can manage our own energy development. Quebec is the province most likely to respect the Kyoto protocol because we developed our hydroelectric system with our own money.

We are doing the same thing with wind energy. Admittedly, the federal government is somewhat involved, but not anywhere in the range of the $900 billion invested in fossil fuel development.

I would point out that tax credits for petroleum development still exist, but there is no such development in Quebec. Furthermore, not a single litre of oil produced in western Canada goes to Quebec, because of the Borden line. People listening to us all think that Canada is an oil producing country and that we pay our share, but not a single litre of that oil makes it to Quebec, thanks to the famous Borden line, which comes from the west and stops at Borden. The rest goes to the United States. We, on the other hand, have to get our supply from other countries. It arrives by tanker along the St. Lawrence. We buy it from overseas. That is the reality.

If Quebec were its own country, it could have energy self-sufficiency. It would be very easy, simply because we produce our own hydroelectricity and receive our oil from other countries. We buy it internationally, so we do not need Canada. People must accept that reality.

We worked very hard in committee, especially the hon. member for Beauharnois—Salaberry, to try to improve this bill as much as possible, in order to force companies in nuclear development to be responsible in the future, and have them pay compensation and pay out large sums in the event of a nuclear disaster. We are talking about $650 million. We chose the maximum amount possible, while remaining very realistic.

The Conservatives and the Liberals were in bed together and therefore had the majority. Considering the Conservatives' hunger to develop this sector, we simply want to pass a bill very quickly to increase fines and compensation in the event of a nuclear incident or disaster. That must be clear. Otherwise, the Conservatives will sell the development of this sector to the Americans, as they have done with so many Canadian businesses. They like to let things take their course. Clearly, that allows foreigners to come and make their profits at our expense and, especially, in the event of an incident, at the expense of certain people who could not be reimbursed for all damages.

Once again, we are supporting certain bills but we are not happy about it. We had hoped the NDP amendments would be adopted and we supported them. However, reality caught up with us. The Conservatives and the Liberals are in league on this one. They have chosen to go full steam ahead in that direction. Unduly delaying Bill C-5, as the NDP is doing, will prevent passage of a bill that could be of great benefit in the event of a nuclear disaster.

We saw what happened after the nuclear disasters at Chernobyl in Ukraine and Three Mile Island in the United States. No one wants disasters to happen but they do. The only way to avoid them is to stop building nuclear power plants or to devote them to producing other types of energy. However, there are none. The Conservatives have no imagination when it comes to energy. The Conservatives' priorities are oil, nuclear power and the military. They do nothing for seniors, the forestry and manufacturing sectors or the general public and everything for all-out development.

Once again we will vote in favour of the bill even though we know it could have been better. It is nonetheless better than what we have.

Nuclear Liability and Compensation ActGovernment Orders

June 19th, 2008 / 4:45 p.m.


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NDP

Catherine Bell NDP Vancouver Island North, BC

Mr. Speaker, if there were a nuclear facility in Montreal and there were an accident at that facility, how much does my colleague think Montreal would be worth? Would it be worth $650 million or would it be more? I just want to get an idea as to whether he thinks $650 million would be enough liability or if he thinks it should be more in the case of a nuclear incident.

Nuclear Liability and Compensation ActGovernment Orders

June 19th, 2008 / 4:45 p.m.


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Bloc

Mario Laframboise Bloc Argenteuil—Papineau—Mirabel, QC

Mr. Speaker, my colleague can rest easy: no nuclear plants will be built near Montreal. She can be sure of that because we have hydroelectric power. However, should $650 million ever have to be paid out, it would probably not be enough; it will never be enough. Of course I agree with them on that.

Nevertheless, we have to face political reality and understand that the Conservatives and the Liberals have decided that $650 million is enough. We can try to block it or stop it, but in the meantime, the $75 million figure applies. That is the NDP's position: if an incident were to occur tomorrow, the $75 million maximum would apply. That is what it is focusing on.

If we were to listen to the New Democrats and do as they suggest, the maximum liability would remain at that level for a long time because they are delaying the passage of the bill, thus limiting compensation to $75 million. That is probably what they are hoping. I have never understood their political strategy, and I still do not understand it today.

Nuclear Liability and Compensation ActGovernment Orders

June 19th, 2008 / 4:45 p.m.


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Bloc

Claude DeBellefeuille Bloc Beauharnois—Salaberry, QC

Mr. Speaker, I would like to congratulate my colleague on his excellent speech. Because he is an infrastructure specialist, because of his responsibilities within the Bloc Québécois, and because he has been a mayor and president of the Union des municipalités du Québec, my question will be very precise.

Earlier, our New Democratic colleagues recommended solar and geothermal energy as alternatives to nuclear energy, and we agree with that. They recommended an east-west power grid. The Bloc Québécois does not agree with that solution. We agree with the idea of a grid, but as to who will pay for it, that is another matter.

I would like my colleague to comment on that issue and the debate over an east-west power grid.

Nuclear Liability and Compensation ActGovernment Orders

June 19th, 2008 / 4:50 p.m.


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Bloc

Mario Laframboise Bloc Argenteuil—Papineau—Mirabel, QC

Mr. Speaker, I want to thank my colleague from Beauharnois—Salaberry for working every day in the interest of Quebeckers.

Again, given that Quebec paid for its own hydroelectric network without any federal contribution, given that we buy our gas and oil ourselves internationally, which is delivered by ships on the St. Lawrence River, I hope that my colleagues in this House will understand that Quebec is going to sell its electricity to the highest bidder.

It is obviously not our role to support the development of this grid and it is certainly not our role to pay a cent for one-quarter of developing it, because Canada has never paid for the development of Quebec's hydroelectric grid.

I hope hon. members will be understanding and respectful enough of Quebeckers not to make them pay 25% of the bill to develop grids for the others and that they will understand that we are going to sell our electricity for the best market price to those who will give us the most money. If it is the Americans, then it will be the Americans. If it is Ontario, then it will be Ontario. If it is the other provinces, then it will be the other provinces. We are here to do business, the way they have always done business with Quebec. They have always exploited us to the maximum. That is the reality.