Thank you very much, Mr. Chair. I will abbreviate my remarks to reflect the time availability.
First of all, Mr. Chairman and honourable members, I would like to thank you for the opportunity to be here today to discuss approved vote 35 funding of $222 million provided to AECL.
A national nuclear energy program, safety support to provincial and international reactors, isotope production, and other essential R and D require investment. Let me describe the public investment in AECL as a commercial crown corporation.
AECL currently receives an annual parliamentary appropriation, included in the main estimates, of $103 million to support the ongoing operations of the large, complex, and aging Chalk River nuclear laboratories. Incremental funding for health, safety, security, and environmental projects totalling $6 million was also included in our 2009 appropriations.
Chalk River Laboratories, which employs about 3,000 of the country's best scientists, engineers, and technical staff, is where Canada's unique and successful CANDU nuclear energy program was born in the 1940s. The primary public policy objective of Chalk River is to carry out nuclear safety research, nuclear R and D, new reactor development, isotope production, and nuclear waste management.
Budget 2009 provides a $351 million one-time cash contribution to AECL for 2009-10 operations, including ongoing support for the development of the advanced CANDU reactor and to maintain safe and reliable operations at the Chalk River Laboratories.
The vote 35 contribution approved in budget 2009 will be used as follows: $67 million for Project New Lease, which reflects capital projects and operations to upgrade the Chalk River site; $50 million to support ongoing Chalk River operations; and $105 million for the continuing advanced CANDU reactor design engineering and systems development in 2009-10.
Many of the items being funded are multi-year projects that extend beyond 2009-10. To date in 2009, we have spent $45 million on budget 2009 initiatives: $9 million for Project New Lease, $19 million for Chalk River operations, and $17 million for the ACR development.
Vote 35 funding has allowed AECL to support an estimated 1,600 positions: engineering and design jobs, construction, logistics, and security, to name just a few. Some of the funding is being used to pay for external labour and subcontractors estimated to create an additional 720 jobs outside of AECL.
AECL has a solid accountability framework and a sound governance regime in place, with appropriate mechanisms for financial oversight on spending, including approval and monitoring processes. The Chalk River projects, including PNL, are approved by the science, technology, and nuclear oversight committees of our board of directors, and they are monitored quarterly by the board.
ACR development timelines and expenditures are monitored by the project risk review committee of the board, and recently completed internal audits on both Project New Lease and advanced CANDU reactor projects were provided to the audit committee of the board. Washington Safety Management Solutions, an independent firm, reviewed the PNL plan to ensure that the infrastructure and process improvements were required to meet the regulatory and safety standards.
Specific budgets and monitoring processes are in place. Monthly and quarterly management meetings confirm we are tracking to plan.
And finally, the Office of the Auditor General reviews AECL's systems and practices and audits us on an annual basis.
To conclude, nuclear technology is a proven and reliable source of clean energy. In Canada and around the world, energy authorities are investing in nuclear power to meet energy security and climate change goals.
Continued government support for maintaining safe and reliable operations at the Chalk River Laboratories, as well as the development of the advanced CANDU reactor, will help strengthen Canada's nuclear advantage and generate significant value to Canadians through the creation of high-paying jobs. Vote 35 funding has enabled AECL to invest in these important jobs and to improve the safety of its nuclear infrastructure. It is seizing this opportunity, which is foremost in our goals at AECL, while being an effective steward of taxpayer money.
Thank you Mr. Chairman.