Natural Resources

The House of Commons Standing Committee on Natural Resources met to study the management and contracting of Canadian Nuclear Laboratories (CNL), hearing from Fred Dermarkar, President and CEO of Atomic Energy of Canada Limited (AECL), and Maude-Émilie Pagé, Acting Vice President of Indigenous and Stakeholder Relations.

Fred Dermarkar explained that AECL, a Crown corporation, owns all nuclear sites and assets, and oversees the contractor CNL under a government-owned, contractor-operated (GOCO) model. He stated that the new management contract with Nuclear Laboratory Partners of Canada (NLPC), a consortium of BWXT, Kinectrics, and Amentum, was awarded through a rigorous, fair procurement process that began in 2022, with an external fairness monitor confirming transparency. Dermarkar emphasized that AECL operates independently of government, that all CNL employees and supply chains are Canadian, and that strict conflict-of-interest provisions protect Canadian intellectual property and security. He noted that the Competition Bureau issued a no-action letter regarding the contract's impact on medical isotopes, and that the GOCO model has improved site cleanup and research at Chalk River.

Maude-Émilie Pagé addressed questions about the shipment of spent fuel from Gentilly-1 in Quebec to Chalk River, stating that consultations with municipalities occurred and that the RCMP coordinates security plans along the route. She agreed to provide a list of consulted municipalities and information on the nature of the communications, though she noted some details related to nuclear safety and security may not be shareable. She also confirmed that no foreign waste is imported to Chalk River, as Canadian policy prohibits it.

During questioning, Conservative members expressed concerns that the contract effectively hands control of CNL to American companies, risking Canadian sovereignty over medical isotopes and nuclear technology, especially amid U.S. tariff threats. They argued that the procurement lacked a requirement for Canadian ownership and that U.S. regulations could block technology exports. Dermarkar countered that the contract includes robust security and conflict-of-interest measures, that the consortium is incorporated in Canada and pays Canadian taxes, and that the board of AECL—appointed by the government—made the decision independently. Liberal members highlighted the GOCO model's origins under a previous Conservative government and praised its success in advancing nuclear research and site cleanup, while the Bloc Québécois focused on waste management and decommissioning practices at Gentilly-1.

The committee adjourned early after a Bloc Québécois member moved a motion to end the meeting, which was carried.