Thank you very much. Thank you for the introduction.
Ladies and gentlemen, securing a reliable supply of medical isotopes for Canadians in both the short and the long term is the focus of my department right now. It's important to underline that when we talk about security of supply, we are talking about a global industry and a global market. The issues surrounding security of isotope supply are global in nature. We are very concerned about this situation. I look forward to the committee's contribution to achieving the results that we all seek in this matter.
I would like to underscore at the outset that we are facing a situation now very different from the one we were facing in December 2007, when Parliament passed emergency legislation to overcome an impasse between the regulator and AECL and to enable the NRU to be restarted.
Last time, there was no good reason to keep the reactor in a shutdown state. The reactor was brought back online quickly and safely after Parliament heard from six witnesses and unanimously passed legislation. This time, we are faced with a significant technical problem that must be addressed before the reactor can be brought back into operation.
The last time, there were poor lines of communication between AECL, the CNSC, and the government, and significant delays in notifying the medical community as a result. This time, the medical community was informed within hours of the government's being informed that the reactor outage needed to be extended, so that necessary contingency planning could be put into effect immediately.
Last time, we were not equipped to take steps to secure alternative supplies, and officials were scrambling to understand the industry and make hurried contacts with foreign reactor owners, all to no avail. This time, we have international infrastructure in place, which will be necessary in the coming weeks and months to help the global community address a serious shortage that will persist for some months.
I will be dealing with all of the above in my opening remarks today, but let me first begin by updating on the status of the NRU.
As the committee is aware, routine monitoring uncovered a small heavy water leak at the NRU reactor on May 15. AECL has indicated that the NRU will remain shut down for a minimum of three months to identify what repairs are required and to implement the repairs. AECL has further updated concerning their process this afternoon.
I wish to take this opportunity to repeat that we are assured by both AECL and the Canadian Nuclear Safety Commission that the leak is contained and poses no risk to worker or public safety or to the environment, and an inspection program is under way. The duration of the outage will not be known until the investigations are completed and the repair options are identified.
The NRU produces some 30% to 40% of the global supply of a key isotope used in medical diagnostic procedures: molybdenum–99 and its decay product, technetium-99m. In fact, all of NRU's production is exported after further processing by MDS Nordion. About 10% of the exports are imported back into Canada by our health care providers.
As has been the case for some time, aside from NRU, only four other reactions are equipped to produce this essential medical isotope for the international market. Like the NRU, all of these are of an advanced age. This age and the maintenance requirements of all five major reactors contribute to the fragility of the global medical isotope supply chain. However, there are other factors in a highly regulated complex supply chain that relies on multiple public and private sector participants to get product to customers.
There are a limited number of processors in the chain. These are the companies that take the raw isotopes from the reactor and turn them into pharmaceutical products for use in hospitals. Due to the brief shelf life of the product and the short timeframe for delivery, it is preferable that processors be located in close proximity to the producing reactor. A further constraint is that not all processors can accept products from all reactors, for technical, contractual, and other reasons.
While assuring a reliable supply of isotopes is an important issue for Canadians, it is also very much a global issue, given the global demand's reliance on just five aging reactors. Unfortunately, it is also an issue for which there is no quick or easy solution.
That does not mean that we're simply throwing up our hands. What we can do, and what we will continue to do, is work with our partners in Canada and around the world to protect the health and safety of Canadians in both the short term and the long term.
To this end, we continue to move forward with a five-point plan. This plan includes the following: one, resuming NRU operating as quickly and safely as possible and pursuing a renewal of the NRU operating licence; two, mitigating short-term supply disruptions; three, engaging major isotope-consuming and -producing countries to coordinate short-term supply and to investigate long-term solutions; four, exploring alternatives to moly-99-based medical procedures; and five, encouraging alternative moly-99 production sources in the long term.
In terms of the NRU, AECL is working to bring the reactor back online as quickly as possible and in consistency with the highest safety standards. In addition, AECL and the CNSC have concluded a memorandum of understanding to identify the requirements for extending the NRU operating licence beyond its current expiry date of 2011. Indeed, in Budget 2009 our government allocated $47 million to AECL specifically for this work.
Second, since the last extended shutdown of the NRU, in December 2007, our government has taken concrete action to manage the impact of short-term isotope supply disruption such as we're experiencing now.
In January 2008, my department, Natural Resources Canada, together with Health Canada and AECL, concluded the protocol for notification and information sharing concerning shortages of medical isotopes. This protocol ensures that provincial and territorial health authorities and health practitioners are advised quickly of any potential or real disruption in the isotope supply chain.
With timely information, the medical community can respond quickly in order to prioritize procedures, take steps to extend and share limited isotope supplies, and utilize alternative procedures when possible. The health community has responded favourably to this initiative.
In December 2007, Health Canada struck the ad hoc working group on medical isotopes. This group reviewed the 2007 NRU outage and presented a number of recommendations to Health Canada. The working group has provided recommendations for enhancing communications, improving physician engagement, and developing best practices in triaging guidelines. Health Canada is working with the working group, as well as provincial and territorial health authorities and medical practitioners, to further this work.
The working group continues to meet and provide advice on a regular basis. It recently facilitated the sharing of guidelines that will assist the medical community to deal with the shortfalls in supply.
Government officials have also met with Canadian and U.S. private sector participants in the isotope supply chain, including MDS Nordion, Lantheus, and Covidien. These meetings are helping to ensure that the Canadian health care system continues to receive its fair share of product during periods of limited supply.
Third, the Government of Canada has been instrumental in drawing the international community together in a cooperative effort to foster global solutions. For example, at our government's request, the Nuclear Energy Agency convened an international workshop on the security of supply of medical isotopes in late January. The workshop attracted representatives from every part of the supply chain, including reactor operators, private sector isotope processors, the health industry, medical practitioners, government regulators, and policy experts.
Participants at this workshop recognized the global nature of the issue and underscored the need to deepen and develop contingency plans for supply disruptions in the near term and to share these plans as appropriate. More importantly, and at our government's urging, participants agreed to establish a high-level group to move the agenda forward.
Two weeks ago, I led a teleconference with many of those who are represented on this high-level group, including government and industry representatives from isotope-producing countries, to emphasize the importance of the international collaboration. The high-level group, consisting of representatives from key isotope-producing and -consuming countries, held its first formal discussion this morning. In acknowledgement of our international leadership on this file, Canada was today named the chair of this working group. I participated in the call and took the opportunity to underline that global cooperation will be required to maximize isotope supplies in the short term. It is also required to improve transparency in transmitting the best possible information to the medical system, and also to address impediments to the development of secure isotope supplies over the long term.
We were encouraged to learn that the Netherlands' reactor was working to increase production by 50% and the South African reactor by 20%, in the short term. Belgium indicated it has received approval to increase its processing capacity, and Australia is now producing isotopes and looking to ramp up production significantly. So we are seeing helpful developments on the supply side. But there are still challenges ahead.
The fourth point in our plan involves work being undertaken through Health Canada in concert with provincial and territorial counterparts and medical practitioners to facilitate the use of alternative medical and diagnostic procedures—alternatives that are helping to ease the demand for moly-99 in the short term while medium- and long-term alternatives are being explored.
The fifth point in our plan involves supporting efforts to develop new sources of supply for moly-99 over the long term. A number of concepts and ideas have been put forward since December of 2008. Some involve new technologies; others the enhancement of existing facilities; and still others are new facilities based on existing technologies. My department has supported feasibility studies regarding the use of an existing facility at the McMaster nuclear reactor to produce moly-99. Our government has also funded a workshop at the University of British Columbia and the TRIUMF research facility to explore the use of particle accelerators for the production of moly-99 through photo-fission.
But there are no easy or short-term solutions, and any efforts to develop new sources of moly-99 will take time and will take investment to implement. But last Thursday, our government announced the establishment of an expert panel to review proposals from the private and public sectors for new sources of key medical isotopes for Canada. The expert review panel will bring together world class expertise in the domains of health science, applied science, and public policy in order to assess the various proposals advanced, against technical, economic, and other criteria. The panel will provide its assessment in the fall.
Also on Thursday, I announced that our government is proceeding with the restructuring of AECL, now that the review of the corporation has been completed. The review concluded that a restructuring at AECL would inject strength in the nuclear industry in Canada, further strengthening its culture of growth, its culture of innovation, and its culture of leadership at a time of global expansion in the market.
Our objective through this restructuring is to position the Canadian nuclear industry to retain and create skilled jobs in designing, building, and servicing nuclear energy technology in Canada and abroad. Restructuring will not resolve issues surrounding the NRU and the supply of medical isotopes. Ensuring a reliable supply of medical isotopes is not only an issue for Canada; it is a global issue that requires a global solution.
It is also worth noting that on March 24, 2009, I introduced to Parliament Bill C-20, the Nuclear Liability and Compensation Act, a bill that will modernize the 1976 Nuclear Liability Act. I was pleased to see that this bill was sent to committee yesterday, and it is my hope that you will give the bill early consideration and return it to the House quickly.
To conclude, Mr. Chair, the Government of Canada is making every effort to minimize the impact on Canadians of the current disruption in the global supply of medical isotopes. Furthermore, we are exercising our responsibility as a major part of the global supply chain to foster the global cooperation needed to achieve a long-term solution.
I want to thank you for your time, and I look forward to any questions the committee may have.