Mr. Speaker, I appreciate the opportunity to participate in this debate about federal government funding of the national fusion program.
For a number of years the federal government has co-funded research and development of fusion, the national fusion program, in partnership with Hydro-Quebec and Ontario Hydro.
The cost of the Quebec part of the national program, the Canadian Centre for Magnetic Fusion at Varennes, has been shared by the federal government, Hydro-Quebec and the University of Quebec. The federal government's contribution to the Quebec program is currently $7.2 million annually.
Since 1981 the investment by the federal government in fusion research at Varennes has amounted to $90 million. This investment has helped to develop scientific expertise and industrial technology in Quebec and it will continue to pay dividends in the future.
In nuclear energy the mandate of Atomic Energy of Canada Limited is to seek to maintain a viable, competitive business in supplying and servicing CANDU reactors at a reduced cost to the federal government. This will mean that AECL will no longer conduct non-CANDU related basic science. AECL is working with the federal government to wind up or transfer elements of its basic science programs to other facilities if possible.
High technology industries in Quebec will continue to benefit from the nuclear industry through contracts developed from CANDU sales to Korea and through the good performance of the Gentilly 2 CANDU reactor.
Consultants' studies show that a typical CANDU 6 sale overseas could bring over $100 million in contracts to Quebec and generate about 4,000 person years of employment. AECL expects to sign contracts for the sale of CANDU reactors to China in the near future and there are prospects for the sale of additional units to Korea.
These two corporations, among the very largest in Canada, have received a year's notice of the federal government's intent to terminate funding for the national fusion program. The federal government will work with them to ensure a smooth transition. We are continuing to fund the program in the current fiscal year.
These are the principal reasons that have gone into the decision by the federal government to end funding for the national fusion program.