Natural Resources Committee on Nov. 25th, 2014

[Geoff Regan, Liberal, Halifax West, NS]

So it's $35 million, but it's confidential, so we can't really know what that's about. I'm not going to pursue that further, because there's obviously no point in doing so.

[Greg Rickford, Conservative, Kenora, ON]

I can say that it would be confidential between those parties, for sure.

[Geoff Regan, Liberal, Halifax West, NS]

What are the total costs associated so far with selling off CANDU assets to SNC-Lavalin? Do you anticipate additional costs, and if so, how much and for what?

[Greg Rickford, Conservative, Kenora, ON]

I don't have the precise figures in front of me, so we'll be happy to follow up with the response.

[Geoff Regan, Liberal, Halifax West, NS]

Thank you, Minister.

Can you tell us how much is budgeted for the creation of the Canadian Nuclear Laboratories and for the transfer of CNL to the private sector? Is there a final figure at this stage, for example?

[Greg Rickford, Conservative, Kenora, ON]

Are you talking about the NRU in particular, or the...?

[Geoff Regan, Liberal, Halifax West, NS]

You have to create the Canadian Nuclear Laboratories, so that whole entity has to be created. I would think there must be money budgeted to do that. And then there must be costs associated with the transfer of CNL to the private sector.

[Greg Rickford, Conservative, Kenora, ON]

I gave those first figures in your rapid-fire approach here, which I very much appreciate, on the National Research Universal reactor and medical isotopes. We're taking action here to ensure security and diversity of supply by investing more than $60 million in alternative technologies to diversify sources of supply. This would come through the isotope technology acceleration program—I think ITAP is its acronym—investing in three projects led by innovative Canadian organizations. We're also active in internationally encouraging a better coordination of world supply and the efficient use of medical isotopes, which is often the biggest concern in this discussion.

We note, then, that before 2010 the NRU produced more than 40% of the global supply. Today those supplies are between 15% to 20%.

[Geoff Regan, Liberal, Halifax West, NS]

Minister, I'm not sure I'm getting what I'm looking for here, which is what's budgeted for the creation of CNL basically, and the costs of transferring it.

[Greg Rickford, Conservative, Kenora, ON]

I'd be happy to provide those specific particular figures to you.

[Geoff Regan, Liberal, Halifax West, NS]

Thank you.

[Greg Rickford, Conservative, Kenora, ON]

The answer of course deals with the transition that is going on particularly at that facility. I think it represents a great opportunity for Canada's nuclear industry.

[Geoff Regan, Liberal, Halifax West, NS]

This brings the AECL funding to $332 million with the additional $35 million. How much of that is for the operation of the NRU?

[Greg Rickford, Conservative, Kenora, ON]

For the operation of the NRU.... Well, I appreciate the questions. They don't form part of supplementary estimates (B), but we'll be happy to provide that for the questions you've asked that are outside of the supplementary (B)s in terms of specific figures for your review.

[Geoff Regan, Liberal, Halifax West, NS]

I appreciate that, Mr. Minister. Thank you for your comments. Certainly this ranged a bit broader than just the supplementary (B)s.

Let me ask you, have you budgeted any funds for the operation of the NRU beyond 2016?

[Greg Rickford, Conservative, Kenora, ON]

Thank you for that question.

As I mentioned to you earlier, we are focused on the transformation of that facility to a GOCO, and obviously there is a process taking place there that is focused in particular on being licensed to operate until 2016. No decisions have been made beyond that time.

[Geoff Regan, Liberal, Halifax West, NS]

So you have no number in terms of what...? You haven't budgeted anything for any operation beyond that certain time limit.

[Greg Rickford, Conservative, Kenora, ON]

The NRU is currently licensed to operate until 2016 and no decisions have been made beyond that time.

[Geoff Regan, Liberal, Halifax West, NS]

What are the expected shutdown costs of the NRU and how much has already been spent on preparatory work for that shutdown?

[Greg Rickford, Conservative, Kenora, ON]

Again, we would be happy to provide those figures to you since they lie outside of the specific supplementary estimates. I don't believe that at any point in time in my earlier comments I expounded on it, at risk of these questions around nuclear energy external to the supplementary estimates.

[Geoff Regan, Liberal, Halifax West, NS]

Well, you did certainly talk about medical isotopes, so let me ask you, what work has been done to determine the impact on global supply of medical isotopes when the NRU shuts down?

That has been a matter of great concern for the Canadian Association of Nuclear Medicine, which warned that shutting it down will put the supply of medical isotopes internationally in serious danger and that alternatives may not be available. In fact, the nuclear medical association states:

The potential “doomsday” scenario of simultaneous closures/shutdown/maintenance of the NRU and other reactors in Europe or elsewhere in the following 2 to 4 years could be postponed or cancelled if the NRU was allowed to operate for a few more years.

[Greg Rickford, Conservative, Kenora, ON]

Well, there are myriad quotes on this, and, of course, you, Mr. Chair, and this committee would have been seized of a number of issues over the course of the past two decades with respect to medical isotope production and what occurred or didn't occur at that facility over the course of those two decades.

I'm sure the member knows that the state of the science, technology, and policy positions both of nuclear organizations around the world and of countries is to move away from highly enriched uranium as the source for medical isotopes. That's why Canada has responded in earnest, focused on isotope technology acceleration programs, not just a more nimble but ultimately a safer way of producing medical isotopes for important health diagnostic capacities and the opportunities they present for domestic and international markets.

I can say that bilaterally, just with the United States alone, and with other countries' positions as well, they support alternative ways to produce medical isotopes. That said, Mr. Chair, this government is very cognizant of the importance of medical isotopes to diagnostic capacity here in Canada and abroad, has invested in acceleration programs, and appreciates the ongoing—however, markedly reduced—contribution of the NRU to those specific kinds of isotopes. But we'll continue to protect them as a source as new alternatives are nearly ripe for full-time production.

[The Chair, Conservative, Leon Benoit]

Thank you.

Thank you, Mr. Regan.

We go to the five-minute round now. There will be four questioners in the five-minute round, starting with Mr. Leef, and then we'll go to Monsieur Lauzon, Ms. Duncan, and Mr. Trost.

Go ahead please, Mr. Leef, for up to five minutes.

[Ryan Leef, Conservative, Yukon, YT]

Thank you, Mr. Chair.

Minister, welcome to our committee. It's great to have you here. I'm hoping that you're going to be able to expand a little bit on a section of your opening remarks in which you talked about the increase in the supplementary estimates (B) that includes $18.8 million to support our work in defining the limits of Canada's continental shelf in the Arctic Ocean, including the North Pole. I'm wondering if you could highlight the importance of this work for Canada and maybe tell us a little bit more about this year's survey.

[Greg Rickford, Conservative, Kenora, ON]

That's a good question.

Attaining international recognition for the full extent of our continental shelf is a priority for the Government of Canada. It's a fundamental effort and, importantly, a legacy for future Canadians. This international recognition is vital to future resource development, so in December 2013 we filed a partial submission with the Commission on the Limits of the Continental Shelf to define the outer limits of the continental shelf in the Atlantic Ocean. At the same time, Canada filed preliminary information concerning its continental shelf in the Arctic Ocean. These are issues that you have shown tremendous leadership on.

The 2014 survey, more precisely that you're talking about, for the eastern Arctic was completed in September using the CCGS Louis S. St-Laurent and the CCGS Terry Fox. Surveys were conducted in the vicinity of the North Pole and the Lomonosov Ridge. In excess of 12,000 kilometres of bathymetric data were acquired and 746 kilometres of seismic reflection data was produced.

I can tell you that preparations for the next survey are under way.