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Gauges are shown in the control room of Atomic Energy Canada Ltd.'s research reactor in Chalk River, Ont., in December of 2007.FRED CHARTRAND

The Natural Resources Minister spent part of Wednesday morning defending his government's decision to sell off the nuclear power division of Atomic Energy of Canada Ltd.

But Christian Paradis had a little more trouble explaining why the legislation that will allow the government to negotiate the sale is buried in a massive, 900-page budget bill.

Mr. Paradis began his testimony before the Senate finance committee by explaining the nuclear industry employs some 30,000 Canadians and every year it generates billions of dollars in economic activity. Three years ago, the Conservative government initiated a full review of AECL, the minister said.

"The review found that AECL'e structure was no longer appropriate to carrying out its mandate. It was in fact acting as a hindrance to the company's success, thus limiting the benefits to Canada."

Although AECL's competitors in the global marketplace are few in number, they are much bigger and they are well financed, Mr. Paradis explained.

The Candu reactor division is too small to establish a strong presence globally and it needs a significant investment to be able to advance in the right direction, he said. So in December the government invited investors to submit proposals to take it over.

"Bill C-9 provides the enabling legislation that will allow the government to move forward with AECL's restructuring," Mr. Paradis said.

"Its passage will allow us to complete the transaction process in a timely fashion and to achieve our policy objective to attract new investment and expertise. ... The status quo is not an option. If the status quo is maintained it becomes a huge burden for Canadian taxpayers."

Catherine Callbeck, a Liberal senator from Prince Edward Island, said she agreed with Mr. Paradis's assessment that the nuclear industry is an important economic driver for Canada.

"So why," she asked, "is AECL lumped in to a 900-page bill which has items covered by the budget but also environmental assessment, post office [restructuring].. As one witness said, it's like a Christmas tree, it's got everything. If AECL is such a major and important industry, why have we not got a stand-alone legislation?"

Mr. Paradis responded by saying he wants to meet his government's policy objectives, which include ensuring that taxpayers are protected and keeping the industry viable. "We have to restructure because, when you check with the different stakeholders, everybody agrees that the status quo is not an option." And the government needs flexibility to proceed, he added.

Ms. Callbeck frowned. "With all due respect minister," she said, "you haven't answered my question. Why is it lumped into a bill with 900 pages that's got everything in it?"

Mr. Paradis replied that Bill C-9 has been before parliamentary committees. Opposition MPs and senators, he said, have had plenty of opportunity to ask questions about it.

The important thing, the minister noted, is "we need to see quick restructuring, swift restructuring done in a responsible way. The way to do that is to ensure the passage of this legislation."

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