Absolute liability limits on nuclear, offshore oil and gas debated in House of Commons; Global catastrophe numbers come mostly from flooding and hail; Ottawa sends Alberta $500 million in relief funding.
MPs debate raising liability limit on nuclear, oil and gas
Federal politicians are debating a proposed law that would increase the absolute liability for offshore oil and gas companies, as well as nuclear operators, to $1 billion.
Bill C-22, the Energy Safety and Security Act, was tabled in January by then-Natural Resources Minister Joe Oliver.
Greg Rickford - who recently replaced Oliver as Natural Resources Minister - moved in the Commons to have C-22 be read a second time and referred to committee. Several members spoke on the bill and debate was adjourned.
If passed into law, Bill C-22 would “increase the absolute liability to $1 billion, from $30 million in the Atlantic offshore and $40 million in the Arctic offshore,” says Kelly Block, the Conservative MP for Saskatoon-Rosetown-Biggar. “This means that fault or negligence does not have to be proven for that amount.”
Bill C-22 also proposes to require that operators demonstrate at least a $1 billion financial capacity to ensure they have sufficient funds if an incident were to occur.
“Currently the regulators require proof of an operator's financial capacity in an amount between $250 million and $500 million,” Block told the Commons. “We intend to raise the minimum financial capacity to $1 billion, in line with operators' absolute liability. Regulators may require higher amounts if deemed necessary.” (continued.)
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Bill C-22 would also make several changes to the Nuclear Liability Act (NLA), which stipulates that nuclear operators, are “without proof of fault or negligence, absolutely liable” for breaches of duties imposed by NLA.
Currently, nuclear operators are required to have basic liability insurance of at least $75 million for each nuclear installation, and that amount has not changed since 1976.
Flooding, hail make up most of global CAT damage
Flooding and hail damage made up the lion’s share of global insured losses from natural catastrophes and man-made disasters last year, which totalled $45 billion, according to the latest sigma study from Swiss Re.
Global insured losses from natural catastrophes and man-made disasters last year were $45 billion, with flooding and hail events contributing in large part, according to the latest sigma study from Swiss Re.
That’s still down $81 billion over 2012, partially because of the quieter hurricane season, Swiss Re said.
Of the insured losses, $37 billion was from natural catastrophes, especially hail in Europe and floods across several regions.
Total economic losses for the year were $140 billion, down from $196 billion in 2012, and below the 10-year average of $190 billion. the reinsurer said.
However, there were roughly 26,000 people killed in catastrophes in 2013, up from 14,000 the prior year, Swiss Re also noted. (continued.)
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Many of those victims were in the Philippines, following Typhoon Haiyan in November. More than 7,500 people died or went missing, and more than 4 million were left homeless, Swiss Re said. Economic losses from that storm were also immense.
Alberta receives first federal flood relief funding
The federal government has transferred the first payment of $500 million to Alberta to help offset the devastating effects of last June's widespread flooding.
Jason Kenney, the regional minister for Southern Alberta and minister of Employment and Social Development, made the announcement at the end of a speech to the Calgary Chamber of Commerce.
Ottawa had already set aside $2.8 billion to help after with the expenses Alberta incurred after several communities, most notably Calgary and High River, were hit hard by the flood waters beginning on June 21, 2013.
The federal government pays up to 90 per cent of the costs associated with disasters. Total damage for the worst natural disaster in Alberta history including insurance claims, is in excess of $6 billion.
Thousands of southern Albertans were forced from their homes during the flood and many have still not returned. Last fall, the province requested a $500 million advance from Ottawa.
“We transferred the first instalment for flood and disaster relief to the province of Alberta with a $500 million transfer to help cover the costs of flood mitigation, flood relief for the province of Alberta,” said Kenney. “This is the largest and earliest support that the federal government has ever given to a province for disaster relief.”
