moved that the bill be read the third time and passed.
Mr. Speaker, I rise to address the House on the third reading of Bill C-4, an act to amend the Nuclear Safety and Control Act.
Bill C-4 is a one clause bill which clarifies the wording in subsection 46(3) of the act. Subsection 46(3), as currently worded, has had the consequence of extending the potential obligation for site remediation, in the unlikely event contamination occurs, beyond the owners and managers to private sector lending institutions. This has in turn deterred private sector financial houses from lending to the nuclear industry.
Under the current wording of subsection 46(3), the Canadian Nuclear Safety Commission has the authority to order the owner or occupant of, or any other person with a right to or interest in, to take prescribed measures to reduce the level of radioactive contamination. The proposed amendment clarifies the subsection by deleting the words “person with a right to or interest in” and replacing them with the words “person who has the management and control of”.
Under the amended subsection 46(3), owners, operators or managers of nuclear facilities would still be liable for cleanup.
With regard to lenders, the amendment would quantify their risk. If Bill C-4 is enacted, a lender would stand to lose, at most, no more than the moneys advanced. The lender would not face a potential unlimited liability. However, a lender who went into management and control of a nuclear facility would be within the reach of this subsection. Canadian law generally limits lender liability to those with charge, management or control of secured assets.
Some members of the opposition have alleged that the bill represents a change in government policy. The answer is no. The change contemplated by the amendment would simply put the nuclear industry on an equal footing with other industrial and power generation sectors. No other industrial sector or power generation sector is encumbered by a federal provision of this nature that discourages access to bank lending.
Loans may be needed by the industry to refurbish, modernize and extend the life of nuclear power plants. The nuclear industry must have access to commercial credit to finance its needs, like any other sector. This amendment would allow the nuclear industry to attract market capital.
Bill C-4 is not and should not be misconstrued as a measure to provide favourable treatment to the nuclear industry. As I have already emphasized, there is no similar federal requirement for other industries. Amending subsection 46(3) would remove an anomaly which is keeping banks away from lending to the nuclear sector in order to avoid assuming potentially unlimited liability. Limiting liability to the owner, occupant or those who have management and control is normal practice in federal environmental law. Canadian law generally limits lender liability to those with management or control of secured assets.
I want to assure the House that Canada has a stringent regulatory regime for the nuclear industry. This would continue to be the case after this amendment. Canada's regulator, the Canadian Nuclear Safety Commission, or CNSC, would retain sufficient authority to protect health, safety, security and the environment.
The regulations of the CNSC require licence applicants to submit information on the effects of their operations on the environment. This information is used by the commission, in consultation with other federal and provincial regulatory bodies, to establish the operating parameters for a nuclear facility. The CNSC has a compliance program in place that confirms that these parameters are observed.
There are tough sanctions for offences under the Nuclear Safety and Control Act. It is an offence to fail to comply with any condition of a licence. The CNSC can also suspend, revoke or amend a licence if conditions are not met. Licences can include the requirement for a financial guarantee to cover contingencies that may arise.
The issue before us is not the safety of Canadian nuclear plants. Canada has in place a stringent safety regime under the Canadian Nuclear Safety Commission. The Canadian nuclear industry has a very strong safety record.
The issue before us is access to financing, financing that owners and operators of nuclear facilities may wish to seek to retrofit or modernize nuclear facilities and at the same time meet the stringent safety requirements of Canada's nuclear regulator.
I also would like to thank all hon. members and ask them to join me in supporting Bill C-4.