Tom Adams

January 11, 2006

PRESS RELEASE

Subsidies to Atomic Energy of Canada Limited (AECL), the federal nuclear promotion agency, are responsible for 12% of today’s federal government debt, according to a new study from Energy Probe. Since its inception in 1952, $74.9 billion of today’s federal debt is attributable to subsidies provided to AECL.

In a related analysis, the study established that, had our federal government’s nuclear subsidies been invested in the Canadian economy, the value today would be $194.6 billion – an amount equal to 11.5% of the value of the Canadian companies traded on the TSX.

In addition, AECL has amassed a variety of contingent liabilities, some of which could confer very large future costs on taxpayers. These liabilities have been amassed through reactor export financing, guaranteeing the business outcomes of large nuclear refurbishment projects in Ontario and New Brunswick, and a troubled reactor partnership with the medical products firm MDS Nordion.

The study’s author, Tom Adams, Energy Probe’s Executive Director, concludes that subsidies to AECL are a significant drain on the national resources of Canada and there is no prospect of Canadian taxpayers recovering their investment in AECL. Adams urges slashing Canada’s nuclear technology support program to a tiny fraction of the current subsidies and reorienting toward radioactive waste management, basic scientific research, and scientific support for international peace and security efforts.

For the complete study, please see: "Federal government subsidies to Atomic Energy of Canada Limited".