My name is Dr. Michael Ivanco. I'm vice-president of the Society of Professional Engineers and Associates, or SPEA, as we're called. I'm also a scientist who works for Atomic Energy of Canada Limited. With me is Peter White, president of SPEA and a nuclear engineer.
We represent engineers, scientists, technicians, and technologists who work for the CANDU reactor division of AECL. Our members work in Ontario, Quebec, New Brunswick, and internationally. Collectively we represent most of Canada's nuclear design expertise. Indeed, the intellectual property associated with CANDU technology is resident primarily within our members. To design and maintain nuclear reactors, you need experience in all fields of engineering and natural science. It took decades for AECL to acquire this unique capability through our members.
Part 18 of Bill C-9 contains proposed legislation that allows for the sale of AECL—but, essentially, it's our members who are for sale. As a company, the CANDU reactor division of AECL does not hold a large number of patents. It holds few physical assets such as buildings or property. The sale consists primarily of the transfer of the knowledge, skills, and experience of the employees who work there, namely, our members. Hence, we have a keen interest in this bill.
Given the size of the industry and the fact that AECL is its cornerstone, we were somewhat shocked to see that the sale was buried in a few pages of a 950-page budget implementation bill. We do not believe that a crown asset with the distinguished history of AECL, and created through an act of Parliament, should be dismantled through an “act” of cabinet. We think that Canadians deserve better.
Seventy percent of Canadians polled by the government last year actually opposed the privatization of AECL. It's difficult to imagine how a 100% sale would lead to a positive outcome for the Canadian industry. No private sector Canadian company can be of sufficient size to give potential buyers the assurance that they will still be around to support the CANDU product for decades to come. A 100% privately owned Canadian company would have little chance of selling reactors abroad. It would likely be relegated to the refurbishment of existing units—the nuclear equivalent of a VCR repair company.
A foreign company with its own technology would likely only be interested in our members, not our technology. If this were to be the outcome, our members would rather leave AECL on their own terms and not wait for any sale. Indeed, a critical mass of our senior members is on the verge of doing so. This subset consists of those who can retire early but have chosen not to, or those who could get jobs next week with a competitor—and likely earning more money in doing so. They're understandably frustrated by the secrecy of the privatization process, the inappropriate inclusion of AECL in an omnibus bill, and the lack of consultation with SPEA, which represents their interests. If they choose to leave, the asset value of AECL would drop like a stone.
SPEA has grave concerns about the nature of part 18 of Bill C-9. It allows for cabinet to make deals with potential buyers behind closed doors, without scrutiny by Parliament. The interests of Canadians can only be assured when they know all the facts. A national debate in Parliament on the sale of AECL would at least be one step in the right direction. Canadians have made an investment in AECL that has created an industry and given us a stature and place among the world's scientific elite. Nuclear science, research, and production are an important policy objective worthy of continued support.
This committee hearing should not be the last chapter of that story. There's still much that Canada can contribute, and there are thousands who would be proud to make that contribution. Do not allow us to lose an industry and our leadership position internationally without a proper national debate on the future of AECL.
That's all.