Mr. Speaker, I will be sharing my time with the member for Wetaskiwin.
I appreciate this opportunity to speak to our government's proposal to modernize and strengthen Canada's nuclear and offshore liability regimes and how these proposed changes will ensure that Canada's safety system for these important industries continues to be world class. Knowing that some hon. members have had questions in this regard, I would like to specifically address the increase in the amount of absolute liability this bill would provide, an amount that not only meets but in many cases exceeds the standards set in other countries.
At the outset, I would like to remind my colleagues of the outstanding safety record of Canada's nuclear industry. We can be proud that it is second to none. Through decades of service, Canadian nuclear technology has a proven record for safety and reliability, a record for safety and reliability that matches or surpasses any in the world.
The regulatory framework for Canada's nuclear industry is similarly highly regarded around the world. It is solid and robust, supported by legislation such as the Nuclear Safety and Control Act and the Nuclear Fuel Waste Act, overseen by the independent expertise of the Canadian Nuclear Safety Commission. Together and with the industry's own commitment to excellence, this regulatory framework and independent oversight continue to assure Canadians that they can rely on our nuclear industry to be a safe, secure, reliable provider of clean electricity.
At the same time, our government is aware that one aspect of Canada's nuclear regulatory regime is not in keeping with international standards.
The existing Nuclear Liability Act has been in place since 1976. While the basic principles underlying the legislation remain valid, the act is almost 40 years old. It, indeed, needs to be updated to keep pace with international trends, including increasing the level of compensation to an adequate level in the unlikely event of a nuclear incident that leads to injuries or damage.
In fact, the liability limit would have been increased already had it not been for the ideological opposition that the NDP has for nuclear. Nonetheless, our government remains focused on establishing a modern liability regime to address potential civil damages that may result from a nuclear incident. That is precisely what Bill C-22 would do.
Bill C-22 would increase the amount of compensation available to address civil damage from $75 million to $1 billion. This amount is not only in line with current international standards, it is in fact significantly higher than the limits set by a number of what might be considered Canada's nuclear peers.
In the United Kingdom, for example, operator liability is currently capped at approximately $260 million, barely a quarter of the absolute liability that would be imposed by this bill. In France, a country with close to 60 power reactors, the operator liability limit is even lower, at about $140 million in Canadian funds. In Spain the limit is about $227 million in Canadian funds, in South Africa it is $240 million Canadian and in Belgium it is $450 million, less than half the liability amount that Bill C-22 would put in place in Canada.
I would also like to remind hon. members that we are talking about absolute liability. That means an operator is responsible for up to $1 billion in compensation for damages that may result from an incident, regardless of the cause, regardless of who is at fault and even if fault is never established or even alleged. This means Canadian taxpayers are not left on the hook. This bill would also require operators to demonstrate that they would have the financial capacity to deliver that amount.
I would remind hon. members as well that Bill C-22 would also serve to implement the provisions of the International Atomic Energy Agency's Convention on Supplementary Compensation for Nuclear Damage. By adhering to this convention, Canada increases its domestic compensation regime by up to $500 million by bringing in significant new funding from the other parties to the convention. In order words, the total potential compensation available in Canada could reach $1.5 billion.
It has been suggested that Canada should follow the example of the United States where nuclear liability limits appear to be higher. In fact, in the United States the individual operator's liability is capped at about $415 million in Canadian funds, again a fraction of what would be the case with this new legislation in Canada. It is true that in the event of an incident that resulted in damages in excess of an operator's liability insurance, the U.S. regime includes a provision for all operators of power reactors in the U.S. to contribute to a compensation fund, $125 million each for the reactors they own. The difference here, however, is that there are more than 100 power reactors in the United States. Such a system is not feasible in Canada where we have only 19 reactors and 4 operators.
In determining an appropriate limit for absolute liability, we must take into account, and this bill certainly does take into account, that liability must be within the capacity of insurers. Bill C-22 addresses the need for operators to provide appropriate compensation without burdening them with exorbitant costs for unrealistic amounts of insurance against events that are highly unlikely to occur in our country.
The $1 billion strikes a proper balance between providing adequate compensation for citizens for a nuclear incident and holding companies to account in the event of an incident. This amount is also well above the liability limit imposed on nuclear operators in many other countries and it is in line with limits that have been proposed in the E.U.
In summary, Bill C-22 would ensure Canada's nuclear liability regime meets the definition of “world class” in every respect, from the type of damages that can be claimed to the time allowed to make claims, to the $1 billion in absolute liability of nuclear operators to pay those claims. I urge all members in the House to support this important legislation.