Mr. Speaker, I thank the hon. member for Kingston and the Islands for asking about financial liabilities regarding Canada's regulatory regimes for nuclear operations and offshore oil and gas activities.
The health and safety of Canadians and protecting our environment are the government's top priorities. We recognize that accidents can happen anywhere, regardless of our laws and safety measures.
We are also very confident in our safeguards. We have strong environmental laws and standards, and a robust safety regime for offshore exploration and drilling. Oil and gas rigs used in the Canadian offshore industry, as well as the equipment and training required to operate them, must all meet strict regulatory standards that are among the highest in the world.
The National Energy Board evaluates each drilling application in the northern offshore for compliance with federal regulations. On the east coast, the Canada-Newfoundland and Labrador Offshore Petroleum Board and the Canada-Nova Scotia Offshore Petroleum Board have similar responsibilities. Drilling cannot occur unless the responsible board is fully satisfied that the drilling plans are safe for workers and the environment. It is important for everyone to understand that when it comes to offshore activities, decisions are made with great care and only after much scrutiny.
We have been working closely with the governments of Newfoundland and Labrador, and Nova Scotia to identify gaps in the current legislation on cost recovery in the offshore.The accord acts are the cornerstone for all oil and gas activity offshore. They provide the legal authority for the boards to regulate oil and gas activity on behalf of the provinces.
Canada's liability regime is founded on the polluter pays principle. As noted in the recent report by the Commissioner of the Environment and Sustainable Development, the responsibility rests with operators to immediately take all reasonable measures to clean up a spill and prevent further damage.
Clearly our government recognizes the value of financial assurances as an important tool for protecting the environment and taxpayers. We are taking action to address the commissioner's recommendations, and work is under way to increase the liabilities required of industry.
Our government also intends to modernize the Nuclear Liability Act and increase the operator liability limit to an amount in keeping with international standards. Proposals will be brought forward for updating the legislation in the coming weeks and months.
Our government is fully confident that the offshore boards will continue to provide comprehensive oversight of oil and gas operators. We will continue working with the National Energy Board, the offshore boards, and the provinces and territories to ensure our regulatory regime remains one of the strongest in the world.