Evidence of meeting #15 for Finance in the 40th Parliament, 3rd session. (The original version is on Parliament’s site, as are the minutes.) The winning word was part.
A recording is available from Parliament.
Bloc
Assistant Deputy Minister, AECL Restructuring, Department of Natural Resources
It will depend on the offers submitted.
Liberal
The Vice-Chair Liberal Massimo Pacetti
Thank you. You have already gone over the five minutes you were allowed.
Mr. McCallum for five minutes, then it will be Ruby Dhalla, followed by Monsieur Mulcair.
Liberal
John McCallum Liberal Markham—Unionville, ON
Thank you.
Thank you to the witnesses for being here today.
My first question has to do with the possibility of a 100% sale to any kind of entity, foreign or domestic. I've heard it said that foreign purchasers of CANDU reactors would very much be unlikely to buy if they had no government backing, because you're talking about an asset that might last for 50 years. I remember, when I was briefly NRCan minister, visiting China on behalf of AECL, and the government element was critical.
Is this an issue? Would a country, whether it's Korea or China or any country, buy such an asset without some sort of government involvement or backing?
Assistant Deputy Minister, AECL Restructuring, Department of Natural Resources
It is premature at this time to determine what proposals will be presented by the potential investors. All proposals will be examined and governed by decisions of the Governor in Council--
Liberal
John McCallum Liberal Markham—Unionville, ON
No, but that's not the question. I know we don't know what it is. It's a hypothetical question. I'm saying if the buyer buys 100% of the company and there is no government role any more in AECL, is that not an issue in terms of sales of reactors?
Assistant Deputy Minister, AECL Restructuring, Department of Natural Resources
This is one of many elements that will be considered in the binding offers that will be proposed and deposited by the potential investors.
Liberal
John McCallum Liberal Markham—Unionville, ON
Can you tell me, though, as somebody with...?
I'm not quite sure who all the people are here.
Assistant Deputy Minister, AECL Restructuring, Department of Natural Resources
We're NRCan, and they're another group.
Liberal
John McCallum Liberal Markham—Unionville, ON
My question is really a policy question for somebody who knows that industry and that market. Is it a good contention, or does it make sense to say, that without government backing, certain governments around the world would be less inclined to buy because they don't have that guarantee?
Assistant Deputy Minister, AECL Restructuring, Department of Natural Resources
It is a consideration, as many others are on the table, that will be taken into account in the proposals that will be presented.
Liberal
John McCallum Liberal Markham—Unionville, ON
No, I'm not asking you whether it's a consideration. Has some analysis been done of that issue?
Assistant Deputy Minister, AECL Restructuring, Department of Natural Resources
It is a consideration that is part of the elements that will be considered by government in the binding offers that will be presented in the coming months.
Liberal
The Vice-Chair Liberal Massimo Pacetti
Maybe I could help: have you seen any other situations, other than in Canada, where a nuclear reactor would have been sold without the interest of a foreign government?
Is that correct, Mr. McCallum?
Assistant Deputy Minister, AECL Restructuring, Department of Natural Resources
What we see is that there are different companies, different models that exist. As you know, this is a sector that is evolving as we speak. It is a sector that is going through a new renaissance, so this is part of the elements in an evolving market. This is part of what cabinet will have to consider when they examine the binding offers that will be presented.
Liberal
John McCallum Liberal Markham—Unionville, ON
I have one more question. I hope the chair's intervention didn't eat into my time.
This has to do with refurbishing. I think a lot of the revenue for AECL comes from refurbishing existing reactors. One concern would be if the company were purchased by, say, Areva, a foreign-owned company that might want to get rid of the technology of CANDU reactors. If there were no capacity in the future to do refurbishing, then many existing reactors around Canada would have to purchase new reactors and wouldn't be able to get refurbished.
Is that a consideration or a concern?
Assistant Deputy Minister, AECL Restructuring, Department of Natural Resources
This is part of the consideration that will be taken into account by cabinet when binding offers are examined.
Liberal
John McCallum Liberal Markham—Unionville, ON
Mr. Chair, I don't understand what is the point of having these witnesses if they just give that rote answer to every question.
It's meant to be a serious question. Why don't we get a serious answer?
Assistant Deputy Minister, AECL Restructuring, Department of Natural Resources
Because it's premature for us to speculate on what offers will be presented. That's why you are getting these kinds of answers. We don't know at this time what will be the elements of what's going to be presented, and--
Liberal
John McCallum Liberal Markham—Unionville, ON
But an answer to my question is not contingent on knowing the outcome. It's a question about whether this is a serious concern or whether there are reasons for it not being a serious concern. It affects owners of reactors around Canada and around the world.
Assistant Deputy Minister, AECL Restructuring, Department of Natural Resources
We are answering you: this is part of the considerations that are on the table. It's one of the serious concerns, but there are many on that file. It is one of the topics that will be part of the decision-making in the future.
