Natural Resources Committee on Dec. 4th, 2012

[Serge Dupont]

I don't have the figure with me.

[Peter Julian, NDP, Burnaby—New Westminster, BC]

Okay. Could you provide it to the committee?

[Serge Dupont]

Yes, absolutely, sir.

[Peter Julian, NDP, Burnaby—New Westminster, BC]

That would be wonderful. Thank you.

Has AECL signed any contracts subsequent to the sale?

[Serge Dupont]

For AECL, the crown corporation that remains, no, it has not, because it has basically gotten out of the business of pursuing commercial sales of reactors. Candu Energy is now working on a new contract in Argentina, which is a refurbishment of the reactor in Argentina.

[Peter Julian, NDP, Burnaby—New Westminster, BC]

When was that announced?

[Serge Dupont]

That was announced in the summer of 2011. It was actually announced shortly before the sale that the contract would be going ahead.

[Peter Julian, NDP, Burnaby—New Westminster, BC]

Would it be correct to say August 2011?

[Serge Dupont]

I think that's correct, sir.

[Peter Julian, NDP, Burnaby—New Westminster, BC]

Yes. And the sale was announced on June 29?

[Serge Dupont]

I don't know whether any of my colleagues would know that date.

The transaction was negotiated by AECL, on the condition that it could be transferred over to Candu Energy.

[Peter Julian, NDP, Burnaby—New Westminster, BC]

Okay.

What was the value of that contract?

[Serge Dupont]

I would like to confirm with you in writing, but if memory serves, it was in the range of $450 million.

[Peter Julian, NDP, Burnaby—New Westminster, BC]

Okay. We sold assets of potentially hundreds of millions of dollars, and a contract that was negotiated by AECL of $440 million was announced shortly after the sale. Just to confirm, we obtained for the taxpayer $15 million, plus some royalties.

I'm not trying to put you on the spot; I just want to confirm—

[Serge Dupont]

No, that's okay.

Number one, you said hundreds of millions of dollars of assets. I did not say that; you said that. I will have to come back to you on the assets.

On the contract, the $400-some million—$440 million, as I recall—is essentially a revenue stream that has to be matched by the actual commitments on the part of Candu Energy to meet that requirement, to do the work.

I will remind the committee that AECL had also received some funding and revenues from some of its contracts, but had managed to lose a lot of money on those contracts. The fact that there is a sale number attached to a contract does not mean there is a value unless there's a company that's able to produce that for less than the revenue.

[Peter Julian, NDP, Burnaby—New Westminster, BC]

I understand your explanation, but I think the taxpayers would be hard-pressed to understand the logic behind this.

We have an additional payment, then, that is in effect a subsidy, of $76,800,000.

I appreciated your answers to my questions. I would certainly appreciate getting the asset amount.

[Serge Dupont]

Can I—

[Peter Julian, NDP, Burnaby—New Westminster, BC]

No, I'm going to move on, because I only have another minute or two.

[The Chair, Conservative, Leon Benoit]

Mr. Julian, I think it's important.

I like the members to manage their time as much as they can—

[Peter Julian, NDP, Burnaby—New Westminster, BC]

Yes, and I—

[The Chair, Conservative, Leon Benoit]

—but I think it's important to allow the witnesses to answer.

Monsieur Dupont, go ahead.

[Peter Julian, NDP, Burnaby—New Westminster, BC]

Mr. Chair, I want to go on to the pine beetle funding. You could certainly ask a Conservative to follow up on that.

On the pine beetle funding, I'd like to know—

[The Chair, Conservative, Leon Benoit]

Order, please, Mr. Julian.

Go ahead with the answer, please.

[Peter Julian, NDP, Burnaby—New Westminster, BC]

Mr. Chair, I would appreciate asking about pine beetles.

[The Chair, Conservative, Leon Benoit]

Mr. Julian, order, please.

You will get a chance to do that.