Jun 25, 2010
DURHAM — It’s a small line in the recently passed federal budget, but if you ask some politicians, it could have far-reaching implications — positive or negative, depending on who’s discussing it — with regard to the proposed construction of new nuclear reactors at the site next to Darlington.
The line grants the federal government permission to sell “or otherwise dispose of some or all of the securities” of Atomic Energy of Canada Limited (AECL) — the federal Crown corporation with which the Province had been negotiating to design and build the new reactors proposed for Darlington. It waives the requirement for the usual regulations and tests normally associated with the sale of the Crown corporation, which Durham MP Bev Oda said could in fact help provide the stability for AECL the Province says is necessary before a deal can be done more quickly.
Not everyone feels that way. The federal government’s treatment of AECL has “created a huge challenge,” said Ontario’s Energy and Infrastructure Minister, Brad Duguid, last week.
“Imagine being in the middle of buying two new nuclear reactors only to find the proponent being negotiated with is up for sale,” he said.
The Province had announced land adjacent to the existing Darlington nuclear plant as the preferred site for new reactors and, in 2006, instructed OPG to begin the environmental assessment necessary before construction can begin. But then, about a year ago, the Province announced that while AECL, the supplier of the CANDU reactor, had provided a compliant bid, it was billions of dollars too high.
More recently, the budget line led to speculation in some quarters about when or if the plan to build new reactors at Darlington will move forward.
Pickering-Scarborough MP Dan McTeague calls it more than a “challenge”. Passage of the legislation “has cast a pall on new build,” he said.
“The point is, in the absence of certainty, and as a result of legislative trickery, the government has created uncertainty where there was once absolute certainty” in terms of new build at Darlington, Mr. McTeague contended, noting his concern for “thousands of jobs” in Durham.
The line was “buried” in the 900-page budget bill, charges Mr. McTeague, who currently sits in opposition at Parliament Hill. And he contends his party had no choice but to vote in favour of the overall budget bill, despite what he calls its many “Trojan horses”.
“The way it has worked with this government is to threaten an election at every turn,” he said. Defeat of the budget bill would have triggered just that.
Because of “the public’s desire not to have an election, the government was able to pass legislation that had nothing to do with the budget,” Mr. McTeague said.
The budget must still wend its way through the Senate.
Now, rumours abound as to how the sell-off of portions of AECL would proceed, and which parts could be sold.
Some reports indicate one of the front-runners to purchase the reactor side is Bruce Power, a corporation made up of a number of private partners that runs the Bruce nuclear generating station on Lake Huron. And some have theorized this could lead to new build happening closer to Bruce’s existing station.
A spokesman for Bruce declined comment on such “speculation”.
“The rumour mill is full of prospects that could happen,” Mr. McTeague said. And while he could confirm none, he said he feels “it doesn’t point to good scenarios (for Durham).”
But Ms. Oda said how AECL is restructured and who eventually owns it shouldn’t alter the fact that the Province feels Darlington is the right place for new reactors. And selling off the reactor side of the Crown corporation could, in fact, lead to the investment necessary to open CANDU technology to greater global opportunity, at a time when countries around the world are considering nuclear to help provide baseload power, Ms. Oda suggested. All of that should increase certainty and move forward on new build in Durham — which means the sooner the legislation that allows for AECL’s unfettered sale makes it through, the better, she said.
“Why would who owns (AECL) change” Darlington as being the best place to construct the new reactors, Ms. Oda asked.
And Mr. Duguid said the Province continues to feel Darlington is the right spot.
“We are committed to building two new nuclear reactors,” he said. “The best place to build them in our view is Darlington…and that is where we intend to build.”
The problem, he said, is timing.
“The concern is, if (the federal government) was to proceed as they say they’re planning on, it could be two years before we get a (builder) in place, and that doesn’t fit with our timelines,” the minister said, noting he feels the federal government needs to step up.
“The concern of people in Durham should be that right now, the federal government appears not to be supportive of the nuclear industry in Canada, in Ontario, and that’s going to impact all of us,” Mr. Duguid said.
