Mr. Speaker, as the member of Parliament for Renfrew—Nipissing—Pembroke, which includes the Chalk River Laboratories of Atomic Energy of Canada Limited, I say thanks on behalf of the almost 3,000 employees at the facility for the opportunity to discuss Bill C-22, Energy Safety and Security Act. It is an important piece of legislation that would increase accountability in Canada's nuclear and offshore industries.
As my hon. colleagues are aware, Bill C-22 has both a nuclear and an offshore component. Given the importance of the nuclear industry to my riding of Renfrew—Nipissing—Pembroke, I would like to speak to the nuclear aspect of the bill today.
Our Conservative government is strongly committed to responsible stewardship in support of a strong and sustainable nuclear industry in Canada. Nuclear energy is a key part of Canada's energy mix and one of the main reasons that our electricity supply is among the cleanest in the world. In fact, here in Ontario, more than half of the entire province's electricity is provided by safe, clean, and reliable nuclear power.
Canada's nuclear power industry is an important contributor to our national economy. It generates close to $5 billion a year in revenues and provides employment for more than 60,000 Canadians, most of them here in Ontario.
As Canadians, we are aware that our Conservative government is focused on Canada asserting its role as a clean energy superpower. Nuclear energy is an integral part of that energy mix. We know that modern and effective nuclear liability legislation is essential to the sustainable growth of Canada's nuclear industry. It helps to protect Canadians, and it provides stability to the entire industry.
In the highly unlikely event of a nuclear accident that results in civil damage, it is crucial that Canadians be compensated equitably and quickly. In order for that to happen, the operators of nuclear facilities must know their financial obligations so they can undertake appropriate planning. With this in mind, we are demonstrating our commitment by reintroducing legislation with new improvements to strengthen Canada's nuclear liability regime.
What most hon. members might not realize is that Canada's nuclear liability regime is already nearly 40 years old. Certainly, times and standards have changed when it comes to the nuclear industry in Canada. Therefore, this legislation clearly needs to be brought up to date.
When it comes to nuclear power, it is absolutely important to note that times have changed. Unfortunately, there are environmental extremists like Gerald Butts, the principal advisor to the trust-fund-pampered Liberal Party leader. Mr. Butts is co-author of the so-called Green Energy Act in Ontario that is causing electricity bills to skyrocket out of control, and hollowing out the manufacturing sector in Ontario as business flees to places like New York State, which receives taxpayer subsidized electricity from Ontario. These people, and others like them, are living in the past.
It used to be just the NDP that had its head in the sand when it came to economical, greenhouse gas-free nuclear power. With the dangerous presence of people like Gerald Butts, the Liberal Party has become a threat to the thousands of Canadians who work in our nuclear industry. Whenever the word “nuclear” is raised, informed Canadians, like the individuals in my riding who work in the industry, understand that the world has come a long way in 40 years when it comes to nuclear research.
When it comes to nuclear waste, the CANDU nuclear system, our Canadian nuclear success story, leaves behind a lower volume of waste due to its superior design utilizing more of the nuclear fuel than our competitors do with their light water reactors. As we work to perfect this technology, the end result is to reduce the radioactivity in spent fuel from the tens of thousands of years down to just hundreds of years or fewer, all the while generating emission-free electricity.
Our nuclear industry can supply this power, all at an economical price, compared to the industrial wind turbines that are bankrupting Ontario and making a few Liberal Party insiders rich.
Our government has sought advice from and received input on this legislation from a broad range of stakeholders over the years. They include the governments of nuclear power-generating provinces, as well as the nuclear industry. We are confident, therefore, that this legislation is a solid reflection of what we have heard from Canadians and the industry itself, both operators and insurers.
The current operator liability limit was set in 1976. This is clearly unacceptable. Under Bill C-22, our government would increase the liability beyond the current $75 million to an amount of $1 billion. This amount would put Canada's liability limit among the highest internationally. In the event there is an accident resulting in civil damages exceeding $1 billion, Bill C-22 would require the Minister of Natural Resources to table a report before Parliament estimating the cost of the damages. This report would allow the government to make any decisions about additional compensation on a case-by-case basis, and any final decision would be decided by Parliament.
Let me assure all hon. members that Bill C-22 would maintain the key strengths of the existing legislation. Most importantly, it would ensure that the liability of the operator would be absolute and exclusive. Put another way, it means that there would be no need to prove fault and no one else could be held liable. The new liability amount of $1 billion would ensure equitable compensation for civil damages—that is, within the capacity of insurers—and would not burden taxpayers.
This legislation would include a number of other significant improvements. First, it would include a new mechanism to periodically update the operator's liability. Under the legislation, the Minister of Natural Resources would have the authority to review the limit regularly and the amount could be increased by regulation. This would ensure that our nuclear liability system remained current at all times. Second, it would contain detailed new definitions of compensatory damage, including certain forms of psychological trauma, economic loss, preventive measures, and environmental damage.
Third, it would include a longer limitation period to submit compensation claims for bodily injury from the current 10 years to 30 years. The 10-year limitation period would be maintained for other forms of damage. Finally, it would elaborate the features of the quasi-judicial claims tribunal to be established to replace the regular courts if necessary. This would significantly accelerate claims payments to Canadians.
Under this legislation, operators would be permitted to guarantee their financial liability with traditional insurance and up to 50% with other forms of financial security, such as provincial government guarantees, letters of credit, and self-insurance.
The government would provide coverage for certain risks for which there is no liability insurance. It would also provide increased coverage for lower-risk nuclear facilities, such as small research reactors at universities, through indemnity agreements with operators. All of the measures I have highlighted in Bill C-22 have the same goal in mind: protecting the environment and the health and safety of Canadians.
Our government is taking concrete steps to address important issues in the nuclear sector. This includes responsibly managing legacy waste, restructuring Atomic Energy of Canada Limited, and promoting international trade. I would like to touch upon the international efforts our government has undertaken with regard to Bill C-22.
In December 2013, our Conservative government signed the international Atomic Energy Agency's Convention on Supplementary Compensation for Nuclear Damage. By joining the convention, Canada will bolster its domestic compensation regime by up to $450 million by bringing in significant new funding for compensation. In Canada, this would bring the total potential compensation up to $1.45 billion, and by joining this convention, our government is advancing our commitment to a strong and secure global nuclear liability regime.
Given that the United States, our closest ally and neighbour, is already a member of the convention, our membership enables us to establish civil liability treaty relations with it. By becoming a member, Canada is playing an important role in making this convention one step closer to reality.
