Mr. Speaker, thank you for the opportunity today to comment on Bill C-5 and the modifications of Canada's nuclear liability framework.
Canada was, and if I may say so, is a pioneer in the development of atomic energy. We were at the creation, so to speak, in the 1940s at Chalk River and Montreal. During that period nuclear energy was developed through the cooperation of scientists in a few countries. We continue in that mode today but in a much wider circle.
I would like to centre my remarks on the international aspects in comparison of Bill C-5. I want to put the changes proposed by this piece of legislation into a broader global context. They relate to modifications in international conventions that were first influenced by events abroad. I would like to comment on these conventions and their relationship to Canadian interests, both domestic and international.
Let me begin with the proposal that Canada's nuclear compensation and liability legislation should be consistent with international nuclear liability regimes. This requirement goes beyond mere financial issues related to liability and compensation. It extends to definitions of what constitutes a nuclear industry, what is compensable damage and so forth.
Consistency brings Canada broader national benefits. It makes possible for us to subscribe to international conventions we do not already belong to and makes it easier should we wish to subscribe to them in the future.
There are two such conventions which are important and relate to this legislation, both of which date back to the early 1960s. The first is the Paris Convention on Third Party Liability in the Field of Nuclear Energy. Adopted under the auspices of the OECD, the Organisation for Economic Co-operation and Development, it is very much a European accord. It was reinforced by the Brussels Supplementary Convention. The second accord is the Vienna Convention on Civil Liability for Nuclear Damage. This is a product of the International Atomic Energy Agency, a United Nations body. It is modelled after the Paris Convention but is open to all members of the UN and is not merely concentrated on Europe.
Canada is not a party to either of these conventions. However, the Nuclear Liability Act is a sensible step in the direction of these conventions. It is important for our liability framework to remain consistent with these conventions as they evolve with our international partners.
The two conventions establish compensation limits. In the case of the Paris-Brussels regime the maximum compensation is approximately $500 million Canadian--but may I say that with our rising dollar, who knows where that number will be--and is available through a three tier combination of operator, public and member state funds.
At the time it was adopted, the Vienna Convention set the minimum liability limit at $5 million U.S., based upon the gold standard, the common international exchange mechanism at that time. Today the value is approximately $75 million Canadian. However, in 1997 the signatories revised the convention to establish significantly higher limits for operators. It is now approximately $500 million. The operators' liability can be set at $250 million by national legislation provided public funds make up the difference to $500 million.
At the time of these revisions, a new nuclear liability regime called the Convention on Supplementary Compensation for Nuclear Damage was adopted under the auspices of the International Atomic Energy Agency of the UN. This convention guarantees the availability of approximately $1 billion to compensate for nuclear damage. Half of this amount will be available under the national law of signatory nations and half through contributions made collectively by states that are party to the convention on the basis of their nuclear capacity and a United Nations assessment rate.
This convention is open to all countries regardless of whether they are parties to any existing nuclear liability accord. As a matter of interest, the United States ratified the Convention on Supplementary Compensation for Nuclear Damage in 2006.
Although Canada is not a party to either of these conventions, we participated in their review. We did so in order to monitor international third party liability trends and other issues of interest, such as definitions of nuclear incidents and the extension of time limits for death and injury claims.
For Canada the net result of these changes is a widening gap between Canada's regime and international standards. This makes it increasingly important to update and modernize our own liability arrangements. As a result, the changes in these conventions have influenced Canada's revision of the 1976 Nuclear Liability Act and many of the changes proposed in the new act bear their imprint.
International consistency in these areas benefits Canada at many levels and in many ways. It encourages investment in Canada. It also levels the playing field for Canadian nuclear companies interested in contracts abroad. These companies may be inhibited from bidding because of uncertainty about liability and compensation issues.
Consistency is important for a more fundamental reason. It demonstrates Canadian solidarity with other nations on issues of safety and liability. As a major user and exporter of nuclear power technology, Canada must uphold its reputation for uncompromising excellence, responsibility and accountability.
Bill C-5 is the culmination of a comprehensive review of the Nuclear Liability Act of 1976, which included an examination of its relationship to international standards. This examination led to the proposal of several improvements.
The current $75 million limit has been increased because it would likely not be sufficient in the event of a major nuclear incident. The $650 million that the new legislation proposes reflects the requirements as we understand them today.
Bill C-5 would also extend from 10 years to 30 years the period for a victim to claim compensation, a proposal which increases flexibility for ordinary citizens who may not immediately understand what may have affected them.
The proposed changes also include a redefinition of compensable damages to include environmental damage, preventive measures and also economic loss.
Bill C-5 is important to Canadians, the strength of our nuclear industry and our international stature. It deserves the support of the House.