Media Release
For release Tuesday, March 16, 1999
Majority of MPs Oppose Romanian Reactor Deal
Liberal MPs, all Opposition Leaders Opposed to Government’s Support for CANDU Sale
Ottawa -- 160 Canadian members of parliament from all political parties -- a majority of MPs -- oppose federal government financial support for a second CANDU reactor at Cernavoda in Romania. 42 senators have taken a similar position. Opponents of the deal include all opposition leaders as well as Liberal members of parliament.
In addition, over 50 Canadian environmental organizations have joined with 80 organizations around the world in signing an appeal from the Romanian environmental group Mama Terra opposing the Cernavoda II reactor. Organizations and individuals opposing Cernavoda II come from more than 40 countries.
Atomic Energy of Canada Limited (AECL) and its Italian partner Ansaldo are seeking over $1 billion (Cdn) in financing to allow the Romanian state electrical utility RENEL to complete construction of a second reactor at Cernavoda. It is expected that the Canadian government will provide most of this financing through the Canada Account of the Export Development Corporation (Canada's state-owned export-import bank). An interim ruling by the World Trade Organization on Canadian aerospace deals in February ruled that the Canada Account is an illegal export subsidy because it offers loans from government coffers at concessional rates. $200 million in financing was provided to Romania last year in order to keep the project alive. AECL announced at the time that it expected the remaining $1 billion in financing to be in place by the end of January 1999. About 25% of the reactor was completed before former Romanian dictator Nicolae Ceaucescu was deposed and executed in 1989.
During a visit to Canada in May 1998, Romanian President Emil Constantinescu called for concessions on the deal, including release from a requirement to provide a 100% guarantee for Canadian loans; longer payback periods for the loans; and a four-year holiday before payments start.
"Romania cannot afford nuclear power and does not need the electricity. The viability of the reactor will depend entirely on electricity exports that have yet to be confirmed." said Kristen Ostling of the Campaign for Nuclear Phaseout.
Dave Martin, Research Director of Nuclear Awareness Project, stated, "A reactor deal with Romania depends on export subsidies that may be illegal under international trade law. Canadian support for Romania's entry into NATO is another part of the deal."
Marc Chenier, of the Centre d'analyse des politiques énergétiques, stated, "After 47 years of government support and subsidies, Atomic Energy of Canada Ltd. should be allowed to sink or swim on its own."
As part of the pre-budget consultation process, the Campaign for Nuclear Phaseout released a study in November 1998 which calculated total subsidies to AECL at $15.8 billion. The government promised to reduce the annual nuclear subsidy to AECL, but it actually increased by 25% in 1996-97.
- 30 -
For further information please contact:
Campaign for Nuclear Phaseout, 613-789-3634
Nuclear Awareness Project 905-852-0571
Centre d’analyse des politiques énergétiques, 514-527-2712
Campaign for Nuclear Phaseout
cnp@web.net