Letter to Ministers: Organization of CANDU Industries Support of Nuclear

Mississauga, Ontario - Thursday, January 18, 2007

The environment is getting more and more attention around the world with a strong call for carbon reductions across the board.

January 18, 2007

Honourable Gary Lunn Honourable Jim Flaherty Honourable John Baird

Minister of Natural Resources Minister of Finance Minister of the Environment

580 Booth Street, 21st Floor 140 O'Connor Street 580 Booth Street, 21st Floor

Ottawa, ON Ottawa, ON Ottawa, ON

K1A 0E4 K1A 0G5 K1A 0G5

Honourable Vic Toews

President of the Treasury Board

140 O'Connor Street

Ottawa, ON

K1A 0G5

Dear Ministers:

Subject: Organization of CANDU Industries Support of Nuclear

The environment is getting more and more attention around the world with a strong call for carbon reductions across the board. Many world-class scientists and engineers like myself see the future harmony with the world’s eco-system by using carbon free electricity generation and increased conservation. Increased use of green technologies such as wind and solar are important but will not displace base load capacity that is so fundamental to industry, our schools and our homes. Nuclear power is showing a very strong resurgence around the world. Many countries are now either involved in building new nuclear plants (China) are in the serious planning phases (USA) or are now reconsidering their previous decisions regarding nuclear (Germany).

In Canada, CANDU technology is a made-at-home, major clean-air energy solution that also anchors our competitive industrial economy with affordable power and high-value employment. Our 86 member companies can attest to this high-value employment in both the supply of nuclear goods and services, and the leveraged participation in other high tech sectors such as aerospace.

We understand that your government will be making policy decisions soon about investment in the future of AECL and nuclear energy. We believe there is a pressing need to support existing CANDU technology (the Enhanced CANDU 6 reactor) and the next generation Advanced CANDU Reactor to respond to immediate, no-emissions electricity needs of Canadian provinces and for our potential export markets around the world. In the past, these export opportunities had significant impacts on our member companies.

At home here in Ontario, the Government of Ontario has already decided to build new nuclear plants. CANDU technology can meet Ontario’s new build schedule and provide lasting economic benefits for Canada and Canada’s workers and businesses. In fact, monies spent by choosing CANDU mean that Canadian dollars will stay work here in Canada from the mining of uranium to the construction and long life operations of the reactors. To ensure that CANDU technology is selected for Ontario new builds, additional federal funding decisions must be made soon in support of Canada’s nuclear research and development and the completion of the Advanced CANDU Reactor (ACR-1000). Federal co-investment in ACR‑1000 must be continued so that the next-generation of CANDU power plants can be project-ready on time for Ontario and other provinces, as well as for export markets.

Major government re-investment in Canada’s aging nuclear research & development laboratories at Chalk River is also desirable. Re-investment and maintenance of funding in the Chalk River laboratories facilities and operations will help to support the current CANDU fleet, Enhanced CANDU 6s and ACRs over the next 50 years.

CANDU technology is a truly remarkable success story. It is safe, clean, reliable and competitively affordable. CANDU plants worldwide have achieved the highest average lifetime performance levels compared to any other reactor type. A new twin CANDU build in Canada would result in:

Approximately 500,000 person years of employment over construction and operation;
$6 billion in business to Canadian firms, over construction and operation;
A platform for exporting CANDU technology worldwide, resulting in: up to $29 billion impact on Canada’s GDP, up to 470,000 person years of employment, and roughly $4 billion in tax revenues in the long term;
Development of a high tech green energy industry; and
An avoidance of 10 million tones of CO2 per year. Over an operating life time, these reactors would have a tremendous impact on reduction in Canada’s greenhouse gases

The Canadian Governments long-term investment in nuclear technology of some

$6 billion dollars has been sound: in exchange for this investment the Canadian economy has generated hi-end jobs for 30,000 workers working in 150 companies. According to CERI ^(1):

The value of production of the nuclear industry (uranium production, nuclear electricity generation, reactor sales and service, fuel and isotope production, research and development) was about $5 billion in 2001.
Canada’s nuclear electricity generating capacity provided 13% of total electricity in 2002.
The impact of nuclear generated electricity on Gross Domestic Product for Canada was some $2.0 billion in 2001.

Ministers, as you can see, our mature nuclear industry makes a significant impact in Canada. We believe a continued strong policy and investment funding support for CANDU technology is paramount to our energy future. Our membership would like to hear your views on this matter and your plans for continued support of our industry.

Yours truly,

Martyn R. Wash

President

C.c.

Hon. Tony Clement, Minister of Health and Minister for the Federal Economic Development Initiative for Northern Ontario

Hon. Rob Nicholson, Leader of the Government in the House of Commons

Hon. Jim Prentice, Minister of Indian Affairs and Northern Development and Federal Interlocutor for Métis and Non-Status Indians

Hon. Chuck Strahl, Minister of Agriculture and Agri-Food and Minister for the Canadian Wheat Board
Hon. Loyola Hearn, Minister of Fisheries and Oceans
Hon. Rona Ambrose, President of the Queen's Privy Council for Canada, Minister of Intergovernmental Affairs and Minister of Western Economic Diversification

Hon. Maxime Bernier, Minister of Industry
Hon. Lawrence Cannon, Minister of Transport, Infrastructure and Communities
Hon. Tony Clement, Minister of Health and Minister for the Federal Economic Development Initiative for Northern Ontario

Hon. Peter Van Loan, Leader of the Government in the House of Commons and Minister for Democratic Reform