Mr. Speaker, it is good to be back again speaking about nuclear safety.
I am pleased to speak to Bill C-20, An Act respecting civil liability and compensation for damage in case of a nuclear incident. Members may be familiar with this bill. It was introduced in the last Parliament as Bill C-5. It is a bill that has had a long history of consultation. It also has a history of good support in the House.
The last time we brought the bill forward both the official opposition and the Bloc supported the bill. We were able to bring it through committee and into third reading without amendment. We look forward to working with the members on the other side of the House to get this bill through as quickly as possible.
Later, I think we will hear the member for Mississauga—Brampton South speak for the official opposition and the member for Trois-Rivières speak for the Bloc. We look forward to working with them at committee to bring this bill through to conclusion as quickly as possible.
The history of nuclear energy in Canada goes back some 75 years. For the past 30 years, it has been a part of Canada's energy mix. It has benefited this country and the citizens of this country in numerous ways.
As members know, a strong nuclear industry brings great economic and environmental benefits. However in order to encourage investments in nuclear facilities, liability rules are needed to provide legal and insurance certainty for suppliers and operators. Without the certainty of the rules concerning liability, insurers would not provide coverage to nuclear facilities, and no one would participate in nuclear development.
At the same time, it is important to ensure that Canadians have access to reasonable compensation in the unlikely event there is a nuclear incident. The health and safety of Canadians is a top priority of the Government of Canada. Canada's nuclear safety record is second to none in the world. We have a robust technology, a well-trained workforce and stringent regulatory requirements.
There are two pieces of legislation that provide a solid framework for regulating the industry. They are the Nuclear Safety and Control Act and the Nuclear Fuel Waste Act. Nevertheless, we must be prepared for the possibility of a nuclear incident, which could result in civil damages.
The responsibility for providing an insurance framework to protect Canadians and provide stability to this important industry falls under federal jurisdiction. The Government of Canada has a duty to assume its responsibilities in this area, and we are doing that.
Traditional insurance is not appropriate for dealing with this kind of liability. It is difficult to determine levels of risk. Canada, like virtually all other nuclear countries, has addressed this void with the enactment of special legislation.
In Canada we put in place the Nuclear Liability Act. This legislation established a comprehensive liability framework in case of a nuclear incident. It is the framework that is in existence today. Both this earlier legislation and Bill C-20 apply to things like nuclear power plants, nuclear research reactors, fuel fabrication facilities and facilities for managing used nuclear fuel.
The framework established under the initial Nuclear Liability Act is based on several principles. Those principles include the absolute and exclusive liability of the operator, mandatory insurance, and limitations in time and amount. These principles are common to nuclear legislation in most other countries, such as the United States, France and the United Kingdom. The principles that were put in place years ago are just as relevant today.
Let me quickly explain these principles. Absolute liability means the injured party does not have to prove that a nuclear reactor was at fault in an incident, only that injury or damages were caused by that incident. As well, the Nuclear Liability Act holds the operator of a nuclear facility to be exclusively liable for civil damages caused by a nuclear incident. In other words, no other business, organization, supplier or contractor can be sued for these damages. The operator is responsible.
This has two advantages. First, it makes it very easy for individuals to make a claim. They know who is liable and 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 the facility. This is a widely accepted practice in countries generating nuclear power.
The Canadian regime also places limitations on liability in time and amount. In terms of amount, the maximum that has been payable under the Nuclear Liability Act is currently $75 million. As well, injury claims must be made within 10 years of the incident.
These underlying principles of Canada's existing nuclear liability framework address the needs of Canadians while permitting our country to develop nuclear capabilities.
The Nuclear Liability Act made it easier for injured parties to make claims. It guaranteed that funds would be made available to compensate individuals in the unlikely event that there is an incident.
It is a tribute to Canada's nuclear industry that there have been no claims paid out under the act. Still it has served as an important safety net for Canadians and it has provided stability and security that is needed to support the continued development of Canada's nuclear power industry.
Although the basic principles underlining Canada's nuclear liability legislation remain valid, this act is over 30 years old and it needs updating. If we consider the possibility of new investments in nuclear reactors in Alberta, Saskatchewan, New Brunswick or Ontario, we can see why this legislation must be made as robust as we can make it. We also have to keep pace with international developments in the field over the years.
As a result of this, the Government of Canada has conducted a comprehensive review of the Nuclear Liability Act and is proposing the new legislation that is before the House today. This has been done with extensive consultation across the country with the industry and with Canadians.
The bill is intended to strengthen and modernize Canada's nuclear liability regime through an all-encompassing package of amendments. Bill C-20 is a major step forward in modernizing the act. It puts Canada in line with internationally accepted compensation levels. It clarifies definitions for compensation and what is covered in 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.
I would like to talk a little about the key changes in this legislation. The main change proposed in Bill C-20 is an increase in the amount of operator's liability from $75 million to $650 million. This balances the need for operators to provide compensation, without imposing high costs for unrealistic insurance amounts, amounts for events highly unlikely to occur in this country. This increase will put Canada on a par with most western nuclear countries.
It is important also that Canada's legislation is consistent with international conventions, not only on financial issues but also with regard to what constitutes a nuclear incident, what qualifies for compensation, and so on. Accordingly, the bill makes Canada's legislation more consistent with international conventions. These enhancements will establish a level playing field for Canadian nuclear companies, who will welcome the certainty of operating in a country that acknowledges these international conventions.
Both the current liability framework and Bill C-20 contain limitation periods restricting the time period for making claims. Under the current act, claims must be brought within 10 years of the incident. However, since we know today that some radiation-related injuries have long latency periods, this limitation period has been extended under Bill C-20 to 30 years for injury claims, while maintaining the 10 year limit for other claims.
Both the current legislation and Bill C-20 provide for an administrative process to replace the courts in the adjudication of claims arising from a large nuclear incident. The new legislation clarifies the arrangements for a quasi-judicial tribunal to hear claims. The new claims process will ensure that claims are handled equitably and efficiently. I think that is an important amendment that people need to pay attention to.
The challenge for the government in developing this legislation was to be fair to all stakeholders and to strike an effective balance in the public interest. I firmly believe the proposed legislation fully meets that challenge. This is supported by the initial reactions that we received with Bill C-5, as well as the reactions we have received with Bill C-20.
We have consulted with nuclear operators, suppliers, insurance and provinces with nuclear installations, and they generally support the changes I have described. I know that some nuclear operators may be concerned about the cost implications of higher insurance premiums, but they also recognize that they have been sheltered from these costs for quite some time.
Suppliers welcome the changes, as they would provide more certainty for the industry. Nuclear insurers appreciate the clarity that would be provided in the new legislation and the resolution of some of their long-standing concerns.
Provinces with nuclear facilities have been supportive of the proposed revisions to the current legislation. Municipalities that host nuclear facilities have been advocating revisions to the Nuclear Liability Act. They are supportive of the increased levels of operator liability and the improved approaches to victims' compensation.
In short, Bill C-20 was not developed in isolation. The evolution of policy was guided by consultation with key stakeholders over several years and by the experience that has been gained in other countries.
Let me now turn to another aspect of our involvement with nuclear technology. There are three other aspects that I would like to point out quickly today.
The first is the safety record of our nuclear industry. Our CANDU reactor is arguably the safest reactor in the world and has all kinds of built-in systems to protect workers and the public.
I would also like to point out Canada's involvement in the nuclear industry and in research and development that has been exclusively for peaceful purposes.
Third, I would like to highlight the fact that Canada's nuclear industry is among the highest tech industries. It spurs innovation, which is the cornerstone of a competitive economy, generating more than $5 billion a year in economic activity. Canada's nuclear industry employs more than 30,000 people. Many Canadians probably do not realize that. Many of those are highly skilled people in well-paying jobs.
It must be recognized that the development of Canada's nuclear industry has been made possible by the civil liability rules provided by the initial Nuclear Liability Act. The improvements by Bill C-20 are now necessary for Canada to remain a leading player in the nuclear industry.
There is an additional aspect to Canada's involvement with nuclear energy. Much of our work in the nuclear industry has been to produce electricity, electricity to provide home comforts and to drive industry and promote jobs across the country. Electricity has contributed to a healthy environment through cheap and clean energy.
In this country we have made a commitment to achieve an absolute reduction of 20% in greenhouse gas emissions from 2006 levels by 2020. We are also committed to meeting 90% of our electricity demand from low-emitting sources by that same year.
As part of reaching these targets, our government is making substantial investments in measures to increase our supply of renewable energy, including wind, solar, small hydro and tidal energy. We also see nuclear energy as part of the clean energy mix that will advance Canada as a clean energy superpower. However, in order for us to advance in clean energy production, we need the certainty provided by an appropriate and up-to-date nuclear liability framework in order to protect Canadians and provide stability to this important industry.
In conclusion, Canada's nuclear safety record is second to none in the world. The Nuclear Safety and Control Act and the Nuclear Liability Act provide a solid legislative framework for regulating the industry and have done so since Canada's industry emerged as a world player. The former seeks to prevent and minimize nuclear incidents, while the latter applies should an incident occur. However unlikely as it may be, we must be prepared for the possibility of a nuclear incident that could result in significant costs.
For these and other sound reasons, I would ask members to support this legislation.