The Time has Come


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Think Nuclear The Time has Come The Facts about Nuclear Safety Nuclear Energy and the Environment Nuclear Fuel Management Understanding Medical Isotopes And so much more Publication Mail Agreement # 40916054

Contents

action! | volume two | issue five

A Message From the Chair Get Informed about Nuclear Development.................................... 3 By the Numbers ............................................................................... 4 What Does It Mean? Understanding Medical Isotopes ................................................... 8 Thinking Nuclear Uranium in Saskatchewan ............................................................. 7 The Facts About Nuclear Safety ................................................... 10 Nuclear Energy and the Environment........................................... 12 The Life of a Nuclear Power Plant ................................................ 14 Nuclear Fuel Management .......................................................... 16 A Guide to Provincial Politics The Legislative Report ................................................................. 18 Rants & Resolutions Expansion of Border Services for Saskatchewan............................ 20 Succession Planning Open Communications............................................................... 22

The Saskatchewan Chamber of Commerce Vision: Saskatchewan Business making Saskatchewan the best place to live, work and invest. Mission: To strengthen Saskatchewan’s business community and competitive enterprise system for an improved quality of life. action! Magazine, a publication of the Saskatchewan Chamber of Commerce. Reproduction of any material contained in action! is permitted provided credit is given to the Saskatchewan Chamber of Commerce Opinions expressed by contributors are their own and do not necessarily represent those of the Saskatchewan Chamber. Editor: Kristin McKee The Saskatchewan Chamber of Commerce’s 2009-2010 Officers

Welcome New Members

Chair: Holly Hetherington

For membership information or to refer your leads please contact: Trevor Doroshenko at 352-2671

Immediate Past-Chair: Dale Lemke

Landis & District Chamber of Commerce

P.O. Box 4 Landis, Saskatchewan Ph: (306) 658-2100 Website: www.landissask.ca Contact: Dan Huber, President Description: A non-profit, voluntary organization of progressive individuals working together to advance the commercial, financial, industrial and civic interests of the community of Landis, Saskatchewan.

Federation of Saskatchewan Indian Nations

100 – 103A Packham Avenue Saskatoon, Saskatchewan Ph: (306) 665-1215 Website: www.fsin.ca Contact: Jaela Shockey, Executive Director – Economic Development Description: FSIN represents 74 First Nations in Saskatchewan. FSIN is committed to honouring the Spirit and Intent of the Treaties as well as the promotion, protection and implementation of Treaties that were made with the First Nations more than a century ago.

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Sheraton Cavalier Saskatoon Hotel

612 Spadina Crescent East Saskatoon, Saskatchewan Ph: (306) 652 – 6770 Website: sheratoncavalier.com/saskatoon Contact: Shawna Nelson, Director of Sales & Marketing Description: With 249 guest rooms and suites, the Sheraton Cavalier in Saskatoon offers services, products and amenities that are very important to guests. Ideally situated in the heart of Saskatoon, make connections at the nearby business and financial districts.

Cover Photos Courtesy of Bruce Power and Cameco

1st Vice-Chair: Richard Ahenakew 2nd Vice-Chair: Colleen Vancha Staff: Steve McLellan, CEO Dawn Boxall, Administrative Assistant Trevor Doroshenko, Membership Coordinator Kristin McKee, Communications Coordinator Kristen McLeod, Event and Project Coordinator Ryan Paradis, Research Coordinator Peter Prokopiw, Finance Coordinator The Saskatchewan Chamber of Commerce 1630 - 1920 Broad Street, Regina, Saskatchewan S4P 3V2 Ph: 306-352-2671 Email: [email protected]

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A Message From the Chair

Get Informed about Nuclear Development

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t some point in the next few months and over the next few years our province will be making decisions on the future of uranium value-added activities in Saskatchewan. It is vital that our entrepreneurs and wealth generators get involved in this discussion because the decisions will impact your future. Saskatchewan needs more power. Our population is expanding and so are our industries. We are finally realizing our potential and the potential of our vast natural resources; however, if we are going to capitalize on these new opportunities to expand our mines, grow our manufacturing sector, and so much more, we are going to need the electricity to do it. The planned decommissioning of the aging Boundary Dam generation facility as well as the future decommissioning of existing capacity, coupled with growing demand, is expected to result in a baseload supply-demand deficit. Ultimately, electricity need will be determined by population and industrial growth, but even under a conservative 1% growth scenario, 1,200 additional MW of baseload power will be required by 2020. We need the power. What are our options? Saskatchewan is rich in coal and we could continue to burn it for our power needs. However, burning coal emits carbon which has been linked to climate

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Nuclear power is a viable option for Saskatchewan. It has benefits and weakness as all power sources is do. However, unlike the other energy resources, it is the one that we are being asked to make a decision on. change. The environmental cost of burning coal for electricity is no longer acceptable. Clean coal technology is being developed but this technology is still very new. We can and should continue to expand our use of renewable power in Saskatchewan. However, these energy sources require significant amounts of land and are intermittent, as the sun does not shine and the wind does not blow every day. Renewable energy sources can complement a stable system but the technology is not yet at a point where they can operate alone. Nuclear power is a viable option for Saskatchewan. It has benefits and weakness as all power sources do. However, unlike the other energy resources discussed above, it is the one that we are being asked to make a decision on. The people of Saskatchewan need a well founded and factual discussion so that we can make an informed decision on nuclear development. This edition of action! magazine will help answer some of your questions related to nuclear development. I also encourage you to review the Chamber’s lengthier Frequently Asked Questions on

Nuclear Development in Saskatchewan available online www.saskchamber.com. Please add your voice to the discussion by engaging in one of the public consultations listed below.

THE FUTURE OF URANIUM IN SASKATCHEWAN – PUBLIC CONSULTATION SCHEDULE June 8th – Prince Albert June 9th – Buffalo Narrows June 10th – Lloydminster June 11th – North Battleford June 15th – Saskatoon June 16th – La Ronge June 22nd – Regina (Stakeholder Meetings) June 23rd – Regina (Stakeholder Meetings) For more information on the consultation progress please visit www.saskuranium.ca/.

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April-May 2009

By the Numbers There is an emerging consensus among economic observers that the “credit crunch”, the root cause of the global recession, is now dissipating and that the Canadian and USA economies will start to grow again later this year or early in 2010. There also seems to be agreement that the growth will be slow and fragile. If this turns out to be true – and these same observers have been spectacularly wrong before – then Saskatchewan will have entered this recession later than most and may very well emerge earlier than other provinces and countries.

POPULATION

As of January 2009, the population of the province was 24,000 above the one million mark. The annual growth rate is 1.5% compared with 1.0% a year ago. An increase in the number of people moving to Saskatchewan from other provinces and other countries is the reason for the population growth. In the fourth quarter of 2008, interprovincial

EMPLOYMENT AND EARNINGS Adjusted for normal seasonal ups and downs, employment in the province has been effectively constant near 520,000 since last fall. The labour market has weakened substantially in other provinces and there are signs that the same thing is happening in Saskatchewan. Compared with a year ago, employment in April 2009 was up 1.9% overall but all of the growth was among part-time workers. Also, the public sector is growing more quickly than the private sector.

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out-migration of just over 3,700 persons was offset by in-migration of just over 4,600 persons. The net increase was 949. The positive interprovincial migration, when added to the 1,308 new international immigrants and natural growth (births less deaths) of about 500, generated a population increase of 3,000 people compared with the previous quarter.

There are strong employment increases in agriculture and construction and large declines in transportation, manufacturing, and the “information/ culture/recreation” group. Summer jobs for students should still be plentiful in the construction sector; but they will be harder to find in stores and restaurants.

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RETAIL SALES

After dropping by 8% between October and December last year, gross sales have been more or less stable in the first part of 2009. In nominal terms, retail sales in the first quarter of 2009 are down 2.9% compared with the same period in 2008. The largest drops have been among services stations (-14%), new motor vehicle dealers (-8%), and home centres/hardware stores (-9%). There are increases in grocery stores (+6%),

CONSUMER PRICE INFLATION Economists worry about deflation (a drop in consumer prices) because it makes consumer and business debt more onerous and because it encourages people to save rather than spend. Inflation is not negative in Saskatchewan yet, but with the annual 0.6% increase in consumer prices for April it is getting close. In the most recent figures, large increases in grocery

INTERNATIONAL MERCHANDISE TRADE

The value of merchandise exports to other countries in the first quarter of 2009 was down 17% compared with a year ago. The value of imports increased slightly so net trade dropped by 27%. The value of international trade is coming off the record highs in 2008 but the drop is more the result of a change

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sporting goods stores (+10%), and liquor stores (+13%). The 2.9% decline in Saskatchewan retail sales is not as dramatic as the 11% drop in Alberta, the 4% drop in Manitoba, or the 6% drop in Canada as a whole. April employment in retail trade was 81,200, down 2.2% from a year ago.

prices (+10.6%) were offset by large declines in transportation costs (-9.8%). Shelter costs are increasing more slowly (+3.5%) than they have in three years. The April inflation rate was negative in Alberta and in the three Maritime provinces. If present trends continue there will be several months of deflation in Saskatchewan starting this summer.

in the price for exported goods than it is the result of any change in the volume of goods exported. The up tick from February to March was the result of higher sales of crude oil to the USA and potash to China and India.

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April-May 2009

By the Numbers continued CONSTRUCTION

In the first quarter of 2009, the value of residential permits was down 22% compared with the same period in 2008. Non-residential permits, on the other hand, were up 63%. The extra activity in the first part of 2009 is concentrated in Regina.

Saskatchewan are down 73% in the first four months compared with the record setting levels a year ago) whereas the non-residential side is still growing because of a backlog of projects and healthy levels of new capital investment in infrastructure.

The residential housing market has slowed considerably (starts in urban

April employment in construction was 34,100, up 2.4% from a year ago.

MANUFACTURING SALES

Saskatchewan’s manufacturing sector is facing difficult markets for some goods (e.g. wood products), falling prices in others (e.g. petroleum refining), and stiff competition in others (e.g. machinery manufacturing). In spite of these challenges, the value of manufacturing

sales has dropped by only 4% in the first quarter of 2009 compared with same period in 2008. April employment in manufacturing was 30,200, down 5.6% from a year ago.

AGRICULTURE

Gross farm cash receipts grew by 23% in 2008 to reach a record $9.4 billion for the year. However, this increase was evident only for grain producers. Receipts from the sale of grain are up 39% compared with a 3% increase for livestock products. There have been increases in both grain and livestock

prices early in 2009 so if the weather cooperates, this could be another good year. Employment in agriculture was 44,900 in April, an increase of 12.8% from a year ago.

Large increases in grocery prices (+10.6%) were offset by large declines in transportation costs (-9.8%) to make Saskatchewan’s inflation rate in April 0.6%. Shelter costs are also increasing more slowly (+3.5%) than they have in three years.

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action!

Thinking Nuclear

Uranium in Saskatchewan

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he province of Saskatchewan occupies the enviable position of being the world’s largest producer of uranium; however, this position is slipping. Forecasts indicate that Kazakhstan will overtake Saskatchewan this year and that Australia could overtake it next year. While Saskatchewan’s position on the world stage maybe slipping, this valuable resources will still have a significant effect on the province. The uranium deposits in Saskatchewan are large, contain high-grade ore and can be extracted at a very competitive production cost. So far, uranium has been produced from two main areas in Saskatchewan. The initial discovery and development of uranium deposits in Saskatchewan occurred in the Beaverlodge District (Uranium City) on the north shore of Lake Athabasca, while the richest uranium deposits in the world occur at or near the base of Saskatchewan’s Athabasca Basin.

Raisebore Drilling at McArthur River Uranium Mine.

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The Uranium Industry in Saskatchewan • The uranium mining industry spent more than $188 million on salaries, wages and benefits for its direct employees. Of this, over $58 million was paid to residents of Saskatchewan’s North. • The industry’s contractors paid out an additional $116.5 million to their employees. • The value of goods and services purchased by the industry was $769 million. • Taxes and royalties of $98.6 million were paid to the province of Saskatchewan, $107 million to the federal government, and $4 million to local governments. The total amount of taxes and royalties paid was over $209.8 million. • Approximately $4.2 million was spent on licensing fees and $2.4 million was paid in surface lease fees. • $2.7 million was donated to community and charitable organizations and another $270,000 was given as scholarships and other forms of support to contribute to the education of Saskatchewan’s youth. There are currently three uranium mining operations in the province: Eagle Point, McArthur River and McClean Lake. Uranium ore in Saskatchewan is mined by both underground and open pit mining. The ore is then crushed and milled to separate the uranium. The uranium, now a product known as yellowcake (U3O8), is shipped out of the province for conversion, enrichment and fuel manufacturing. Uranium is an important resource to Saskatchewan. This vibrant sector attracts investments to the province from both global-scale players and junior companies. It employs approximately 3,000 people in Saskatchewan, about 80% of whom work at mine sites located in the province’s north. This

creates significant direct and spin-off benefits for the local and provincial economies through wages, taxes and local investment. Supporting this sector are miningrelated programs at the province’s post-secondary educational institutions and select Saskatchewan-based research facilities, such as the Slowpoke II reactor and the Canadian Light Source synchrotron. At current rates of extraction, Saskatchewan’s discovered uranium resources would last approximately 45 more years. However, it is estimated that $195 million was spent on uranium exploration in Saskatchewan in 2008, out of the approximately $378 million spent in Canada as a whole, so there could easily be new deposits discovered across the province.

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What Does it Mean?

Understanding Medical Isotopes

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ith the recent shutdown of the Chalk River nuclear reactor, Canada is once again facing a medical isotope shortage and serious diagnostic tests are being postponed. Currently, Chalk River facility makes a third of the world’s supply of medical isotopes. However, the facility is 52 years old and has recently been experiencing frequent shutdowns. In the Uranium Development Partnership’s report Capturing the Full Potential of the Uranium Value Chain in Saskatchewan, it was recommended that the provincial government “partner with the Federal Government to pursue the

Currently, Chalk River facility makes a third of the world’s supply of medical isotopes. However, the facility is 52 years old and has recently been experiencing frequent shutdowns. construction of a research reactor in the Province as a complement to synergies with existing research infrastructure and capabilities…. Pursue medical isotope production as part of the reactor’s mandate.” It is important to note that medical isotopes are not produced in a nuclear power reactor.

What is a medical isotope?

A medical isotope is a very small quantity of radioactive substance used in safe, cost-effective imaging and treatment of disease. New technologies enable medical isotopes to be delivered directly to the site of diseased cells. Medical isotopes have become the standard treatment for some cancers. They have also brought medical imaging to new levels.

Who uses medical isotopes?

The medical specialty that utilizes medical isotopes for diagnosis and treatment is called nuclear medicine. The doctors that perform nuclear medicine procedures for cancer are called radiation oncologists.

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What can medical isotopes do in diagnosis?

Radioisotopes give off energy that can be detected by special equipment. When small quantities are introduced into the body, the imaging equipment tracks their location and movement. This enables the doctors to learn more about the diseased tissues than a diagnostic procedure that just takes a picture from the outside. Medical isotope diagnostic procedures often facilitate an earlier and more complete disease diagnosis and therefore more rapid and effective treatment.

What can medical isotopes do in cancer treatment?

The energy given off by radioisotopes can zap diseased cells. When they are delivered straight to the cancer cells, healthy tissues are spared while cancer cells are eliminated. Medical isotopes are delivered to the cancer cells in several different ways.

How are medical isotopes important in the Canadian context? action!

The National Research Universal (NRU) reactor went fully online at Chalk River, Ont., on Nov. 3, 1957. It has been used for scientific research, including the development of nuclear medicine. It remains the biggest single source in the world of the isotope cobalt-60, which has been used in cancer treatment for more than half a century. Chalk River’s importance gained worldwide attention in November 2007 when the reactor was taken offline, causing a worldwide shortage in medical isotopes. The reactor produces enough isotopes to treat more than 76,000 people a day — more than 20 million a year.

What’s happening to ensure stable production of medical isotopes?

The National Research Universal (NRU) reactor at Chalk River was scheduled to be decommissioned in 2005 and be replaced by two new reactors called MAPLE 1 and MAPLE 2. The MAPLE reactors were a pool-type reactor with a compact core of lowenriched uranium fuel surrounded by a vessel of heavy water. The MAPLE reactors were initially supposed to be completed in the early years of this decade and be dedicated solely to the production of medical isotopes. However, in May 2008, Atomic Energy of Canada Ltd (AECL) decided to end development of the reactors because of continuing technical problems and cost overruns. The discontinuation of the MAPLE project has put more pressure on NRU to continue to supply the bulk of the isotopes.

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While there are other reactors that can produce medical isotopes in Canada, for instance, McMaster University in Hamilton, Ont. has operated a small reactor capable of producing a few medical isotopes for 48 years, there are not enough to pick up the slack caused by the extended shutdown of the NRU reactor. The four other main reactors in the world producing medical isotopes are the BR-2 reactor at the Belgian Nuclear Research Centre, the Osiris reactor in France, South African operated Nesca’s Safari-1 reactor and the High Flux Reactor at Petten in the Netherlands.

Opportunities for Medical Isotope Production in Saskatchewan

It is clear that the world needs increased stability in its medical isotope supply. In addition, increasing demand coupled with the planned decommissioning of some current medical isotope

production facilities means that the world could be facing significant shortages if more production is not brought online. If Saskatchewan decides to pursue a research reactor, medical isotope production could be an attractive use of this facility. However, as the Uranium Development Partnership Report makes clear, the economics of a stand alone medical isotopes reactor are not attractive and isotope production should only occur in Saskatchewan if it is done within the context of a broader research reactor. There are different options available in terms of reactor type and Saskatchewan would be able to draw upon the experience of other jurisdictions to find the best fit for the province. Expanding Saskatchewan research and training capacity through a new research reactor, and providing the province with a new opportunity for medical isotopes production, is a opportunity that needs to be examined closely.

Medical Applications of Radioisotopes Several isotopes with unique medical applications can be created as a result of the radioactivity within a nuclear reactor. These medicial isotopes serve three different functions: Medical imaging, radiation therapy, and therapeutic drugs. Diagnostic Imaging – isotopes are injected into a patient along with a pharmaceutical companion agent that targets the isotopes to specific issues, which can then be detected by specialized imaging machines. Radiation Therapy – radiation emitted from an isotope source is directed into a tumour to destroy cancerous cells. Therapeutic Drugs – isotopes are manufactured into injectable/ insertable drugs for cancer treatments. Source: Uranium Development Partnership. Capturing the Full Potential of the Uranium Value Chain in Saskatchewan. March 31, 2009

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Thinking Nuclear

The Facts about Nuclear Safety

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hen you start talking about safety in relation to a nuclear reactor, two thoughts typically come to mind: radiation and accidents. However, a deeper look into the safety of nuclear power plants shows that misinformation has led to misplaced fear.

Over 400 reactors are operating safely and reliably around the world. Canada’s 18 reactors have been operating safely since the 1960’s.

Does having a nuclear facility in your area cause health issues?

The historical and current presence of the nuclear industry in Port Hope has resulted in over 40 studies reporting on the health of its citizens. Canadian Nuclear Safety Commission (CNSC) staff reviewed and considered all relevant, known and recognized studies before concluding that the health of Port Hope residents is not at risk.

Radiation is released naturally from the ground and atmosphere everywhere. Like many things, radiation can be both beneficial and harmful. Large doses are dangerous, while abundant evidence indicates that small doses are harmless. The radiation produced within the core of nuclear reactors is similar to natural radiation but more intense. At nuclear power plants, protective shielding isolates this radiation, allowing millions of people to live in safety nearby. Typically, the radiation people receive comes 90% from nature and 10% from medical exposures. Radiation exposure from nuclear power is negligible.1 The most comprehensive Canadian studies on nuclear facilities and health issues have occurred in the area around Port Hope, Ontario. Port Hope is home to uranium conversion, waste management and nuclear fuel conversion facilities, and although a nuclear reactor is not in the immediate

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area, these studies provide valuable insight into the risk of living next door to nuclear waste.

None of the studies reviewed show unusual patterns of cancer or any other diseases related to the nuclear industry, either in workers or members of the community. In addition, the health of Port Hope residents is consistent with the rest of the population of Ontario and Canada.2 With regard to nuclear reactors in Canada, the radiation dose to the public as a result of radioactivity from all nuclear power plants in Canada is much less than regulatory limits and the radiation dose from naturally occurring sources.3 A study on the incidence of childhood cancer around nuclear power plants in Great Britain by the Health Protection

Agency concluded that there has been no increase in childhood cancers for children living less than 25 kilometres from a nuclear power plant.4

What happened at Three Mile Island and Chernobyl?

The accident at the Three Mile Island Unit 2 (TMI 2) nuclear power plant near Middletown, Penn. in 1979 was the most serious in U.S. commercial nuclear power plant operating history, even though it led to no deaths or injuries. The cause of the accident was a major loss of the cooling function for a sustained period of time. Despite the fact that a significant portion of the core melted, the safety mechanisms in place protected the local community. The off-site consequences were insignificant and the maximum off-site dose to any member of the public was substantially below levels that could cause health effects.5 The 1986 accident at the Chernobyl nuclear power plant in Ukraine is the only accident in the history of commercial nuclear power to cause fatalities from radiation.

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The International Atomic Energy Agency (IAEA) and World Health Organization (WHO), attribute 56 deaths directly to the accident (nine children who died of thyroid cancer were added to the 47 initial deaths), and estimate that there may be 4,000 extra cancer deaths among the approximately 600,000 most highly exposed people.6 The Chernobyl accident was the result of a severely flawed Soviet-era reactor design that was operated with inadequately trained personnel and without proper regard for safety. The accident, caused by a sudden surge of power, destroyed the reactor and released at least 5% of the radioactive reactor core into the atmosphere and downwind.7 The health of Chernobyl residents has been monitored since 1986, and to date there is no strong evidence for radiationinduced increases of leukemia or solid cancer (other than thyroid cancer). The increase in thyroid cancer occurred among a large number of children and adolescents who in 1986 received substantial radiation doses in the thyroid after drinking milk contaminated with radioactive iodine.8 To date, about 4,000 thyroid cancer cases have been detected among these children. Although 99% of these children were successfully treated, nine children and adolescents in the three countries died from thyroid cancer. Fortunately, no evidence of any effect on the number of adverse pregnancy outcomes, delivery complications, stillbirths or overall health of children has been observed among the families living in the most contaminated areas.9

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The facility at Three Mile Island.

There are currently 436 nuclear power plants operating in the world, with 18 in Canada. Over the last 50 years, thousands of people have built an everstronger foundation for the safe and effective use of nuclear energy.

Have a question not answered in this article? Please check out the Chamber’s Frequently Asked Questions on Nuclear Power in Saskatchewan available at www.saskchamber.com.

Sources 1) World Nuclear Association. Facts on Radiation. 2) The Canadian Nuclear Safety Commission (CNSC). Understanding Health Studies and Risk Assessments Conducted in the Port Hope Community from the 1950s to the Present. April 15, 2009. . 3) Canadian Nuclear Association. Nuclear Energy: Reliable, affordable and clean electricity. April 2007. www.cna.ca/english/pdf/NuclearFacts/2008/CNA_Nuclear_Energy_Booklet08.pdf 4) The Health Protection Agency for the Committee on Medical Aspects of Radiation in the Environment. Committee on Medical Aspects of Radiation in the Environment. 2005. 5) United States Nuclear Regulatory Commission. Fact Sheet on the Three Mile Island Accident. March 2009. < http://www.nrc.gov/reading-rm/doc-collections/factsheets/3mile-isle.html>. 6) International Atomic Energy Agency. In Focus: Chernobyl. . 7) World Nuclear Association. Chernobyl Accident. April 2009. <. 8) The Nuclear Energy Institute (NEI). The Chernobyl Accident and Its Consequences. Washington D.C., United States, April 2006 9) Ibid.

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Thinking Nuclear

Nuclear Energy and the Environment

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he renewed interest in nuclear power is being driven by a number of factors – most notable, given growing concerns regarding climate change, is its very low carbon profile.

According to Environment Canada, climate change is a long-term shift in average weather conditions over time, including temperature, precipitation, winds, and other indicators. Scientists from around the world believe that climate change has been caused by the significant increase of human generated greenhouse gas (GHG) emissions, primarily carbon dioxide. On a per capita basis, Saskatchewan is one of the largest emitters of GHG in Canada. The primary sources of GHG are transportation and electricity generation. About 2/3 of Saskatchewan’s electricity comes from burning coal, a significant source of GHG. Nuclear power plants emit no CO2 or other noxious gases. In nuclear power plants the energy to generate the electricity comes from a nuclear reaction

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In 2007, about 16% of Canada’s electricity came from nuclear power (18 reactors provide over 12,600 MWe of power). If the electricity produced by Canada’s nuclear power plants was generated by coal there would be an additional 70 million tonnes of CO2 emitted into our atmosphere each year. entirely within the uranium fuel inside the reactor. In 2007, about 16% of Canada’s electricity came from nuclear power (18 reactors provide over 12,600 MW of power). If the electricity produced by Canada’s nuclear power plants was generated by coal there would be an additional 70 million tonnes of CO2 emitted into our atmosphere each year.

What about Renewable Energy Sources?

While a strong case can be made for nuclear power because of its low carbon emissions, the same can be said for wind and solar power.

‘Renewable’ sources of electricity such as wind and solar power are intermittent, producing electricity only when the sun is shining or the wind blowing. These systems require that a full-time backup method for power generation be available to ensure the province can have continuous access to electricity. Additionally, vast land requirements are necessary for solar and wind electricity generation. For wind generators to produce all the electricity needed to supply a city of 3 million people, such as Toronto, the land required would be about 40 times the area of Metropolitan Toronto. This is more than four times the area of Prince Edward Island.1 Apart from the vast land requirement, and the visual and noise effects of the wind generator towers themselves, there would be considerable environmental impact [erosion, bird and bat deaths, fragmented animal habitats]. If that same city’s electricity were to be supplied by solar collectors, a land area twice the size of Metropolitan Toronto would be needed. 2

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Wind power generation poses an additional problem to Saskatchewan that needs to be addressed. With the amount of wind power currently in service in the province (approximately 172 megawatts) SaskPower is experiencing grid operating challenges due to the natural variability of wind power. SaskPower is studying and assessing the effects of wind power on the provincial system through the Wind Power Integration and Development Unit (WPIDU) and will determine the benefit of building future wind facilities based on the results of this effort. Unlike solar and wind, hydro electricity is not intermittent as it converts the natural flow of water into electricity. Hydro works by capturing water as it flows and falls from a height. The energy is produced by the falling water turning the blades of a water turbine, which in turn drives a generator to produce electricity.

Hydro electricity generation is GHG emissions free but it also has its challenges. Hydro plant production may affect the water’s ecosystem and fish habitat significantly. Further, construction of a Hydro facility may require flooding which can cause serious environmental consequences such as the loss of large areas of forest and destruction of fertile land. New hydro-electric generating stations will also have to be located far from the consumer core and will therefore require very long transmission lines. These transmission lines mean that even more power will be needed, as some is lost in transmission and additional costs will have to be incurred to establish these lines. The future of hydro-electricity is also uncertain. The changes in glacial melts will impact river flows, making it difficult to predict the quantity and timing of flows.

Nuclear energy is the largest source of emissions-free energy, which means it emits no pollutants into the air. This keeps the air clean, prevents acid rain, preserves the earth’s climate and prevents ground level ozone formation.

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Daggett, California.

Conclusion

The world’s growing population wants and needs electricity. Through the use of nuclear power we can have the ability to minimize the amount of greenhouse gas we put into the atmosphere. That way we can enable a good standard of life for all people while avoiding the dangers of climate change and global warming.

Sources: 1) Canadian Nuclear Association. Nuclear Facts: Is Nuclear Energy a Good Choice for the Environment? 2) Ibid.

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Thinking Nuclear

The Life of a Nuclear Power Plant

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askatchewan is growing. New home construction and industrial expansion means the province needs more power. Couple this with the planned decommissioning of current power facilities and it is easy to see that without action Saskatchewan will face a power supply shortfall.

The Cost of Nuclear Power

The government of Saskatchewan is already warning of annual electrical rate increases because of needed capital expenditures, increased generating costs and more stringent environmental standards. In fact, the province’s current climate change plan will cause rates to increase by over 20% alone once it is implemented.

Constructing a new nuclear power plant is expensive and these capital costs occur over several years. As such, there are always risks of capital cost overruns and delays. This is true of any project of this scale, including new coal plants and hydro dams. However, recent international experience indicates that the major vendors of nuclear power plants have significantly improved budget and scheduled performance. Given this situation, the cost of nuclear power is becoming increasingly competitive with other forms of electricity generation. Furthermore, when the environmental and social costs of fossil fuel power generation are considered, nuclear is extremely attractive.

Constructing a new nuclear power plant is expensive and these capital costs occur over several years. As such, there are always risks of capital cost overruns and delays. This is true of any project of this scale, including new coal plants and hydro dams. However, recent international experience indicates that the major vendors of nuclear power plants have significantly improved budget and scheduled performance. Due to the long timelines and high costs associated with building a nuclear power plant, the provincial government may have a role. To date, the cumulative risks of building a new nuclear power plant have been too large for the private sector to bear alone and governments have played some role in the facilitation of the project.

An exterior view of the Bruce B generating station.

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Thus far, the government of Saskatchewan has not indicated, what, if any, public dollars will be invested in a nuclear power plant should the province decide to move forward. Currently, the most important role of government is to

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provide strong and effective regulation for the nuclear power industry and to provide policy stability that will allow efficient licensing, construction and operation. Once a nuclear power plant is operational it is not subsidized by the government. In Ontario, Bruce Power leases the facility at Kincardine from Ontario Power Generation (a provincial crown corporation), sells some of its power to the province at agreed upon rates. Should Bruce Power proceed with expansion in Saskatchewan they are likely to use this model as guidance.

Deciding to Build a Nuclear Power Plant

The regulatory process for licensing a new power plant, starting from the initial site application to commercial operation, requires that the applicant receive three separate licenses: one to prepare the site, the second to construct the plant and the third to operate the plant. The Canadian Nuclear Safety Commission (CNSC) has estimated that the duration of licensing activities from receipt of an application for License to Prepare Site to License to Operate is approximately nine years. Before a nuclear power plant can be constructed an Environmental Assessment must also be conducted. An Environmental Assessment evaluates the impact the proposed project will have on the surrounding environment and ensures development is sustainable. Furthermore, in the case of a nuclear power plant for the generation of electricity, the normal provincial approvals required for any major project will also be required.

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Decommissioning a Nuclear Power Plant

At the end of a nuclear plant’s useful life it is decommissioned and over a period of time the site will be returned to “Greenfield” conditions. According to International Atomic Energy Agency, the design life of a nuclear power plant is typically 30–40 years. However, with advances in technology, it is quite feasible that many plants will be able to operate in excess of their design lives provided that all safety requirements are met. Information on the decommissioning process must be provided to CNSC during each of the licensing stages and financial guarantees for funding the plants decommissioning must also be provided. Another license from CNSC is needed to perform this decommissioning work. In Ontario, Ontario Power Generation (a provincial crown corporation) is responsible for the decommissioning and nuclear waste management associated with all nuclear power plants. OPG contributes annually to a fund which will be used to pay for station decommissioning and long-term management of nuclear waste.

Should Saskatchewan decide to build a nuclear power plant, regulatory and/ or legislative changes will have to be made to ensure the province can play a proactive and significant role in determining how the plant will be addressed and monitored in the long term.

The regulatory process for licensing a new power plant requires that the applicant receive three separate licenses: one to prepare the site, the second to construct the plant and the third to operate the plant. It is estimated that the duration of licensing activities is approximately nine years.

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Thinking Nuclear

Nuclear Fuel Management How is Used Nuclear Fuel Managed?

The fuel for nuclear power reactors is in bundled tubes containing pellets of uranium oxide. Initially, unused CANDU fuel bundles are so slightly radioactive that they can be carried by hand. However, when the fuel is discharged from the reactor it can not be handled directly due to radioactivity. The bundles are inserted into and removed from the reactor by remotely operated fuelling machines. Typically a bundle will reside in the reactor for about two years. Used fuel is sometimes referred to as “high-level nuclear waste”. This is something of a misnomer since only a

The Nuclear Waste Fuel Act requires the utilities operating nuclear power plants to form a Waste Management Organization to deal with the long-term management and also to establish a trust fund to cover all future costs. very small portion of the used fuel is radioactive byproducts of the fission process. Used nuclear fuel is perceived by some to be uniquely hazardous. However, like many non-radioactive but toxic materials that require permanent isolation, the potential hazard can be eliminated by careful isolation and management.

How Do We Currently Manage Used Fuel? Used fuel from nuclear generating stations in Canada is stored onsite. When the fuel first exits the reactor, it is placed in water-filled bays. Water cools the fuel and shields the radiation. After several years in the bays, when the radioactive fission products have largely decayed and the associated heat generation has diminished, the used fuel can be transferred to dry storage onsite, typically large concrete cylinders. There is enough space at each nuclear generating station to store all its used fuel for the operating life of the station. A 600MW CANDU nuclear reactor produces only 20 cubic metres of used fuel bundles per year.

Who Pays for Used Fuel Management?

Fuel Bundles are used to generate electricity in Candu Reactors.

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The cost of onsite storage of used fuel is included in the total operating costs of the station, reflected in the electricity rate. The Nuclear Waste Fuel Act requires the utilities operating nuclear power plants to form a Waste Management Organization to deal with the long-term management and also to establish a trust fund to cover all future costs.

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What are the Alternatives to Onsite Storage?

There are a number of alternatives to onsite storage for the long-term management of used nuclear fuel. One method would be to gather all used fuel in a central place and store it in concrete canisters on or near the surface. To ensure the continuing security of this method, the canisters would need to be monitored on an ongoing basis as they are now at reactor sites. Permanent isolation is another method considered by nations with nuclear power programs. This method would not rely on long-term human supervision but on passive safety. A number of such options are being examined in several countries. These options include isolation in granite, in salt domes and other solid rock formations. Finland and Sweden are proceeding with the development of geologic disposal facilities for their used nuclear fuel.

What is an Isolation Vault?

Extensive research and testing was carried out by Atomic Energy of Canada Limited (AECL) on the potential for a permanent disposal location for used fuel. This concept would locate the used fuel in a vault deep in stable grantitic rock in the Canadian Shield. Many of the rock formations in the Canadian Shield have been in place for two billion years. As part of this research, AECL constructed its Underground Research Laboratory (URL) near the town of Lac du Bonnet in Manitoba, to demonstrate the conceptual designs for isolation

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and storage of spent fuel. A single vault could hold all the used fuel arising from 100 years of operation of all existing Canadian nuclear generating stations. Many sites can be found in the Canadian Shield that would meet the geological requirements established by Canadian and international scientists for the safe isolation of high-level nuclear waste.

Is Permanent Isolation Safe? A federal Environment Assessment Panel examined the concept for an isolation vault described above. In its report, the Panel found the safety of the concept had been adequately demonstrated from a technical perspective.

A number of uranium ore bodies in the world provide valuable evidence about geological containment. The Oklo deposit in Gabon, the Koongara in Australia, and Cigar Lake deposit in Saskatchewan are some of the best known examples. The Cigar Lake deposit has been buried under porous, wet sandstone for more than a billion years, yet has retained its radioactive components so well there is no trace of them at the surface.

What about the Longterm Care of Canada’s Used Nuclear Fuel? The Nuclear Waste Management Organization (NWMO) was established in 2002 to develop with Canadians a management approach for the long term care of Canada’s used nuclear fuel. An Adaptive Phased Management approach has since been selected and the NWMO is now responsible for collaboratively implementing the plan with Canadians.

Adaptive Phased Management features: • Centralized containment and isolation of used nuclear fuel in a deep geological repository in a suitable rock formation. • Continuous monitoring with the potential for retrieval for an extended period of time. • An informed and willing host community. • Ongoing public engagement. Used nuclear fuel will remain safely stored at Canadian nuclear reactor sites until the design, siting, environmental assessments, licensing, site-specific R&D, transportation systems, confirmation of site suitability, final design, safety analysis and decision to construct are complete. Citizens will be engaged in decision making at every step of implementation. Courtesy of Canadian Nuclear Association

Used nuclear fuel is perceived by some to be uniquely hazardous. However, like many nonradioactive but toxic materials that require permanent isolation, the potential hazard can be eliminated by careful isolation and management.

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Photo courtesy of Tourism Regina

A Guide to Provincial Politics

Legislative Report Province Changes Greenhouse Gas Targets

The Government of Saskatchewan recently introduced The Management and Reduction of Greenhouse Gases Act. Under this Act, Saskatchewan will adopt the federal target of a 20% reduction on greenhouse gas emissions by 2020. Environment Minister Nancy Heppner and federal Environment Minister Jim Prentice have signed an Agreement in Principle to negotiate an equivalency agreement with a view to achieving equivalent environmental outcomes under provincial regulation. The Management and Reduction of Greenhouse Gases Act also establishes a Saskatchewan Technology Fund to administer carbon compliance payments received from large emitters and to finance investments in low-emitting technologies and processes that reduce greenhouse gas emissions, as well as a Climate Change Foundation to

The Saskatchewan-Montana partnership will construct a technology-neutral CO2 capture plant (reference plant) at an existing coal-fired electrical generating station in Saskatchewan and construct a North American CO2 storage facility in eastern Montana including injection infrastructure with the option of using CO2 for enhanced oil recovery. promote research and development and demonstration of low-carbon technologies.

Montana and Saskatchewan Sign MOU

The Government of Saskatchewan recently signed a Memorandum of Understanding (MOU) with the State of Montana. This MOU commits both parties to work together on the development of one of the largest international carbon capture and storage demonstration projects in the world. Under the MOU, the SaskatchewanMontana partnership will construct a technology-neutral CO2 capture plant (reference plant) at an existing coalfired electrical generating station in Saskatchewan and construct a North American CO2 storage facility in eastern Montana including injection infrastructure with the option of using CO2 for enhanced oil recovery. Saskatchewan and Montana will also construct a pipeline for the transportation of CO2 from the reference plant in Saskatchewan to

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the storage facility in Montana. The estimate of the total cost of the project in Canadian dollars is $270 million. On the Canadian side, it is approximately $150 million to design and build the CO2 reference plant, related CO2 pipeline infrastructure and a North American training facility for CCS technicians.

Government Set Power Bill Increase at 8.5% Although SaskPower had originally sought a rate increase of 13%, the Provincial Government recently announced that power rates will increase by an average of 8.5%. As of June 1st, residential customers will, on average, see their power bills increase by about $8 per month and farm customers will see an average increase of about $18 per month.

As part of the Saskatchewan Rate Review Panel’s report, SaskPower will undertake a number of “cost containment” measures and cut their budget by two per cent in operations, maintenance and administration spending. Nevertheless, this may be the start of a series of power bill increases in Saskatchewan, as SaskPower struggles to upgrade its

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aging fleet of power plants and conform to new environmental regulations in the years ahead.

Restaurant Inspection Report are now Public

According to new regulations under the Public Health Act, Saskatchewan residents can now access all restaurant inspection reports dating from October 1, 2008. These reports can be viewed online. Regional health authorities are responsible for carrying out restaurant inspections in their area. A copy of the full inspection report for each restaurant is available from the health region in which the facility is located for a fee of $30 per application.

South West Enterprise Region Launched

The newest of the province’s Enterprise Regions, the South West Enterprise Region, was launched in early May. The region covers an area from the Alberta border to Morse, south to the U.S. border and north to Kyle. The Enterprise Regions, of which there are 13 throughout the province, replace the old REDA system that wound down operations on March 31, 2009. Not without their critics, especially pertaining to the scale of the new regions (the Southwest ER is the largest at 48,000 square kilometres), the new Enterprise Regions are gradually filling the gap previously occupied by REDAs. The Enterprise Regions have been given $5 million in funding to operate, of which the SouthWest region will receive $300,000.

New Deputy Minister to the Premier Premier Brad Wall recently announced the appointment of Doug Moen, QC

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Saskatchewan’s New Cabinet

Minister of Finance – Rod Gantefoer Minister of Energy and Resources – Bill Boyd Minister of Enterprise – Ken Cheveldayoff Minister of Environment – Nancy Heppner Minister of Advanced Education, Employment and Labour – Rob Norris Minister of Highways and Infrastructure – Jim Reiter Minister Responsible for Crown Investments Corporation – June Draude Minister of Tourism, Parks, Culture and Sport – Dustin Duncan Minister of Social Services – Donna Harpauer Minister of Municipal Affairs – Jeremy Harrison Minister of Agriculture – Bob Bjornerud Minister of Justice – Don Morgan Minister of First Nations and Métis Relations – Bill Hutchinson Minister of Corrections, Public Safety and Policing – D. F. (Yogi) Huyghebaert Minister of Health – Don McMorris Minister of Government Services – Christine Tell as Deputy Minister to the Premier. Moen takes over from Garnet Garven, who is returning to the University of Regina where he will work to establish a western Canadian office of the Ottawabased policy think-tank, the Public Policy Forum. Moen takes over from Garven on June 1, 2009.

Affordable Housing Gets Funding

The federal and provincial government recently signed an amendment to the Canada-Saskatchewan Affordable Housing Program Agreement and an extension to the Canada-Saskatchewan Housing Renovation Program Agreement. This means that there will be more affordable housing projects

occurring in Saskatchewan. The recent announcement will result in a joint investment of more than $161 million over the next two years.

NDP Memberships Cancelled

In early May, the provincial NDP leadership campaign came under scrutiny after it was reveled that some 1100 memberships had been improperly obtained on two First Nations Reserves in the Meadow Lake Constituency. Dwain Lingenfelter’s campaign took responsibility for errors; however, Lingenfelter himself was clear of wrongdoing after an internal inquiry. The questionable memberships have since been cancelled.

Premier Brad Wall recently announced the appointment of Doug Moen, QC as Deputy Minister to the Premier. Moen takes over from Garnet Garven.

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Rants &

Resolutions

A regular column by members who not only want to Rant but also offer Resolutions.

Expansion of Border Services for Saskatchewan

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rowing global competition, the rise of the knowledge economy and recent forecasts of economic recessions have accelerated the need for improved relations between Canada and the United States. Global markets bring volatility and an unpredictability that requires us to continuously seek avenues to improve upon our trading abilities in order to remain competitive. Since NAFTA there has been progressive integration of the

Exporting companies require special services in order to transport goods across the border. These full service offerings are largely only available through the North Portal and this results in significant transportations costs for Saskatchewan producers. North American economy. This means that exports to continental markets, as opposed to local or national markets, account for a growing share of local GDP in communities across Canada. Our ability to access markets is an increasingly important factor driving growth of local economies. Saskatchewan’s communities need better access to these markets. We need a second 24-hour full commercial and technical services border crossing in Saskatchewan. Communities and businesses, large and small, which are not well connected, will not survive in the new global environment. Future growth hinges on our willingness to invest in transportation and trade infrastructure that allows communities and business access to continental markets. The value of trade and transport corridors is increasingly necessary to provide a business environment that is conducive to future growth and competitiveness. In the face of such economic challenges, it is especially important to note that

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Saskatchewan is one of the most trade dependent provinces in the most trade dependent country in the world. The U.S. is our largest trading partner, accounting for roughly 67% of exports and 88% of imports. Such a heavy reliance on exports alone underscores the importance of ensuring that goods can move freely out of the province as almost 70% of our economic wealth creation is reliant on export infrastructure. Current economic strength gives us the ability to proactively address some of the critical issues and opportunities we face. We need to examine the viability of a second trade corridor in Saskatchewan. At present, Saskatchewan has 13 border crossings which, for the most part, offer limited hours of operation and technical and commercial services. Exporting companies require special services in order to transport goods across the border. These full service offerings are largely only available through the North Portal and this results in significant transportations costs for Saskatchewan producers.

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Since 9/11 a costly layering of increased border crossing fees, inspections and wait times pose additional challenges for all sectors of our economy engaged in cross-border activity. Inadequate hours of operation at most border-crossings mean that cross-border visiting and shopping is limited. These restrictions impact already troubled wholesale and retail trade along with accommodation and food services sectors, creating additional challenges for the future of our tourism industry. It is time to take the necessary steps to lay the groundwork for our economic future and to ensure our ability to trade freely and efficiently in available markets. A project is currently underway

It is time to take the necessary steps to lay the groundwork for our economic future and to ensure our ability to trade freely and efficiently in available markets. A project is currently underway to develop a business case to illustrate the viability of adding a second 24-hour full commercial and technical services border crossing in Saskatchewan. to develop a business case to illustrate the viability of adding a second 24-hour full commercial and technical services border crossing for Saskatchewan.

urged to write letters of support. Please add your voice. Visit us online at www.actionsouthwest.com.

For the project to be successful support must be garnered from across Saskatchewan and Montana. Businesses, communities and individuals are being

Sandra Blyth, Regional Project Manager, Action Southwest Business Networks Coalition

The real tragedy is Troy’s injuries could have been prevented.

We’re not just talking about great rates, convenient locations, and friendly staff. We’re talking about real goals and big dreams. Think about the kind of stuff that changes lives. Imagine that.

TThere’s no such thing as an accident. Every on of the 40,000 work-related injuries that one was reported in Saskatchewan last year was predicta predictable and preventable. It’s up to every employer and every worker to help us eliminate workplace injuries and achieve Mission Zero. Zero injuries. Zero fatalities. Zero suffering. worksafesask.ca

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Imagine the possibilities www.innovationcu.ca North Region: 446.7000 or 866.446.7001 South Region: 778.1700 or 800.381.5502

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Succession Planning for Your Business

Open Communications

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ou are reading the second article in the series “Succession Planning for Your Business!” Previously, we introduced the topic of succession planning and stressed the importance of this topic in particular for the estimated 70% of Saskatchewan business owners who are looking to retire over the next decade. We also outlined the first steps of developing a succession plan, including the completion of current situation analysis, and future planning through the 5-year business strategy and the 10-year business vision. Now we consider in more detail the challenges associated with succession planning, and the value of open communications with professional advisors …

The Challenges of Succession Planning

The development of a succession plan is a complex multi-stage process, which will include everything from establishing goals and objectives for the business to managing family and employee involvement in decision-making, planning retirement financing, preparing business contingency plans, evaluating corporate structure and ownership transfer methods, going through detailed business valuation processes, and finally developing the exit strategy. It is unlikely that any one business owner will have the necessary expertise in all of these areas, nor should they be expected to.

Business owners will have spent the course of their careers being passionate about succeeding in their own business ventures, not passionate about exiting them. And although it’s the tendency of many business owners to want to tackle everything themselves, involving a variety of professional advisors in the various stages of the process can significantly ease the challenges associated with succession planning.

WHO Should Be Involved and WHY?

Several professionals can assist during the stages of succession plan development. Most commonly included in these stages are accountants, tax specialists, lawyers, financial planners, business brokers, and business valuators.

Accountant

An accountant will be able to help you sort through your financial statements and prepare for the business valuation process. If necessary, they will be able to recast your financial statements according to GAAP, which will help your business look more financially sound and potentially improve the attractiveness for buyers.

Tax Specialist

A tax specialist can provide insight into appropriate business restructuring methods, and may recommend the use of family trusts, implementation of estate freezes, or income splitting to maximize benefit to your company. A tax specialist can also help to decrease capital

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gains, estate, and other taxes associated with exiting a business.

Lawyer

To be beneficial to the succession planning process, a lawyer should have experience in drafting buy-sell agreements, shareholder agreements, setting up family trusts and restructuring corporate capital. The lawyer that has helped you over the years may not be the appropriate choice if they are not familiar with succession law.

Financial Planner

A financial planner who is knowledgeable about succession planning will be able to provide advice on specific insurance needs, tax implications related to exiting the business and retirement income.

Business Broker

A business broker will be able to help generally with the sale of the business. Business brokers will often have access to large pools of buyers and consequently have the ability to discreetly advertise your business for sale without compromising the view of your business in the market. They will also handle initial negotiations with potential buyers.

Business Valuator

A professional valuator will thoroughly research all components of the business, from finances, situation in the market and industry, to management practices and governance. A business valuator can also make recommendations to help you increase the value of your business. Early communication with these professionals will improve the succession planning process. It is important to engage professionals

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who have experience specifically with succession planning, and if you can find a professional with prior experience in your particular industry, even better! Having said that, each business is unique, and the recipe for success for each individual business and business owner in terms of formulating a succession plan will be different. The professionals will be able to aid business owners in the review of alternatives, and help select a method of transfer best suited to the needs of that particular business. Open and honest communications about your 5-year business strategy and 10-year vision will also help ensure that there is alignment between the goals that professionals are working towards and the objectives that you have set. Written by Andrea Mulholland, fourth-year student at the Paul J. Hill School of Business, University of Regina. Andrea is a student

consultant with the Centre for Management Development at the University of Regina. The Centre provides business consulting services, Executive Leadership Development and customized training, and publishes applied research. Visit www.uregina.ca/admin/cmd.

Family Communications Often family communications are an even greater challenge for business owners than that of communicating with professionals. The following are suggestions to help smooth communication between you and your family during the succession planning process: Establish your family’s level of involvement in the succession planning process early to alleviate stress related to inheritance, management, and ultimately ownership. Create formal processes for communicating with your family. Keep all key members involved in decision-making processes, or at least informed about decisions that are being made. Separate business and family. Be sure that the decisions being made are critical to the ongoing success of the business, and not solely in the interest of your family members. Finally, don’t hesitate to involve professionals in mediation of family discussions about the business!

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