Thank you very much, Mr. Chair.
I'd like to tell the committee on this one that I do have a much shorter presentation; therefore, you'll have lots of time.
I'm pleased to have this opportunity to speak to the standing committee today on Bill C-20, an act respecting civil liability and compensation for damage in case of a nuclear incident. The legislation passed second reading in the House of Commons in June, and it's to repeal the Nuclear Liability Act and bring Canada's liability legislation in line with the other pieces of our modern nuclear regulatory framework.
As committee members know, a strong nuclear industry brings great economic and environmental benefits, but there's also responsibility to ensure that the public interest, health, safety, and the environment are protected through strong legislation and regulations, and to ensure the legal framework is in place to allow nuclear development to proceed efficiently.
Canada's nuclear safety record is second to none in the world. We have a robust technology, a well-trained workforce, and we have stringent regulatory requirements. The three main pieces of legislation that govern Canada's nuclear industry are the Nuclear Safety and Control Act, the Nuclear Fuel Waste Act, and the Nuclear Liability Act. Both the Nuclear Safety and Control Act and the Nuclear Fuel Waste Act are modern pieces of legislation that put Canada at the forefront of nuclear regulation. The Nuclear Liability Act, while standing the test of time, does need to be updated to complete our modern legislative framework for nuclear power.
In Canada, we put in place the Nuclear Liability Act over 30 years ago to establish a comprehensive liability framework for injury and damage arising from nuclear incidents. Both this earlier legislation and Bill C-20, now before the House, apply to the following: nuclear power plants, nuclear research reactors, fuel fabrication facilities, and facilities for managing used nuclear fuel. The framework established under the initial Nuclear Liability Act is based on the principles of absolute and exclusive liability of the operator, mandatory insurance, and limitations in time and amount. These principles are common to nuclear legislation in most other countries such as the U.S., France, and the United Kingdom, and these principles are just as relevant today.
Mr. Chairman, the underlying principles of Canada's existing nuclear liability framework balance the needs of victims with society's interest in nuclear development. It has provided the stability and the security needed to support the continued development of Canada's nuclear power industry.
However, although the basic principles underlying Canada's nuclear liability legislation remain valid, the act does need updating to address issues that have become evident over the years and to keep pace with international developments. As a result, the Government of Canada has conducted a comprehensive review of the act and is proposing the new legislation that the committee is considering.
Bill C-20 is a major step forward in a comprehensive modernization of Canada's nuclear liability legislation. It puts Canada in line with internationally accepted compensation levels, and it clarifies definitions for compensation, and as well the process for claiming it.
The challenge for the government in developing this legislation was to be fair to all stakeholders and to strike an effective balance with the public interest. The bill is the culmination of years of consultation involving extensive discussions with major stakeholders, including nuclear utilities, the governments of nuclear power generating provinces, and the Nuclear Insurance Association of Canada--and it has received broad support.
I know that some nuclear operators may be concerned about cost implications for higher insurance premiums, but they also recognize that they have been sheltered from these costs for some time. Suppliers welcome the changes, as they provide more certainty for the industry. Nuclear insurers appreciate the clarity provided in the new legislation and the resolution of some long-standing concerns. Provinces and municipalities with nuclear facilities have also been supportive of the proposed changes.
In conclusion, Mr. Chairman, Canada's nuclear safety record is second to none in the world. The Nuclear Safety and Control Act and the Nuclear Liability Act provide a solid legislative framework for regulating the industry, and have done so since Canada's industry emerged as a world player: the former seeks to prevent and minimize nuclear incidents, while the latter applies should an incident occur. However, unlikely as it may be, we must be prepared for the possibility of a serious nuclear incident that could result in significant compensation costs. For these and other sound reasons, I would ask the honourable members to support this legislation, and I stand open for questions.