Madam Speaker, ITER is a huge research project to study the engineering feasibility of making fusion energy a reality. Because of its cost, such an undertaking can only be implemented through an international grouping of leading countries in the field of fusion.
The original members were the European Union, the United States, Japan and Russia. The United States withdrew in 1997 but rejoined the project early this year along with China and South Korea.
ITER would take 10 years to build and 20 years to operate. It is not an energy project and no electricity will be produced. It is an experiment.
Since 1995 the Government of Canada has supported the efforts of ITER Canada and its predecessor, the ITER Siting Board, to host the ITER project in Canada. ITER Canada is a non-profit consortium of large construction and engineering firms, financial institutions, labour unions, universities and Ontario Power Generation.
The Government of Canada made a $3 million contribution to help cover ITER Canada's bid preparation expenses. In mid-2001 the Government of Canada submitted to the other ITER parties ITER Canada's bid to locate the project adjacent to the Darlington nuclear power station in Clarington, Ontario. The government has participated in the international negotiations and provided diplomatic support to the ITER Canada bid.
Under the offer tabled by Canada in 2001 ITER Canada was to provide the site, the infrastructure and the buildings, and assemble the components provided by the other parties. This was to constitute the Canadian contribution during the construction phase. ITER Canada was to finance its contribution to the project through private sector loans. During the operating phase, ITER Canada planned to sell products and services to the project and use the sales revenues to pay back its loans.
The government agreed to submit ITER Canada's bid on the assumption that the Clarington site enjoyed such cost and other advantages over other potential sites that Canada would be selected to host the project without federal financial support. ITER Canada provided assurances that no federal funding support would be required to support the project. The Government of Canada was advised on numerous occasions that the natural and cost advantages of the Clarington site were such that no federal funding would be needed to attract the ITER project to Canada.
Since then, that circumstance has changed. In 2002 both the European Union and Japan tabled their competitive offers to host the project with substantial sovereign government financial commitments. ITER Canada then solicited financial contributions from the Government of Canada in support of the bid process and its involvement.
It is now evident that billions of dollars will be required to support a Canadian bid. Even if the ITER project was located in another country, Canada, as a party to the project, would still be required to contribute approximately a billion dollars to an overseas site.
The other ITER parties consider fusion to be an integral part of their energy policy and have committed significant financial resources to investigate fusion as an energy option. The Government of Canada, on the other hand, took the considered decision in 1995 not to engage in fusion research as it is not a science nor an energy priority--