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ARCHIVED - RPP 2007-2008
Canadian Nuclear Safety Commission


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SECTION I - CNSC OVERVIEW

Message from the President and Chief Executive Officer

Linda J. Keen, M.Sc. President & Chief Executive Officer It is my pleasure to submit to Parliament the Canadian Nuclear Safety Commission's Report on Plans and Priorities for the years 2007 to 2010. This strategic plan builds on the ongoing efforts of the Canadian Nuclear Safety Commission (CNSC) to be effective and transparent; to attract and retain excellent staff; and to be efficient in delivering its legislated mandate. The challenge has never been greater. The nuclear industry is growing at an unprecedented rate, creating a perfect storm of demands for heightened regulatory oversight across all sectors -such as -aging nuclear power plants, expanding uranium activities, health care and industrial radiography. At the same time, the demand for new reactors is creating a significant increase in the CNSC's regulatory workload. Be assured, the CNSC is well prepared to address these challenges.

Concurrent with industry expansion, there is a greater focus on accountability, good governance and strong regulatory oversight. In the context of a nuclear industry that is becoming more significant and complex, the public attention on industry, governments and on the regulator has never been greater. Canadians will continue to look to the CNSC to protect their health, safety, security and environment. The CNSC is committed to public consultation and accessible processes as it provides the regulatory oversight and makes the regulatory improvements that will meet the new demands.

The CNSC has initiated appropriate improvement initiatives. With its concentration on a modern regulatory framework and process - one that is risk informed and forward looking - the CNSC will ensure its continued effectiveness.  The CNSC will also improve the transparency of its processes for decision making and environmental assessments, in order to foster public confidence. In the area of staffing, the CNSC is strengthening its leadership capabilities as well as increasing and broadening its recruitment and retention strategies. In addition, the continuing implementation of a quality management system that integrates and provides greater consistency in processes will continue to improve efficiency throughout the CNSC.

Next year will see me turn over the Chair of the Convention on Nuclear Safety - which, by that time, will have realized significant improvements in scope, transparency and focus to which I am proud to have contributed. I am equally honoured to accept the position of Chair of the Heads of Federal Administrative Tribunals Forum, an organization created to coordinate federal tribunal activities. This will be a forum for tribunals to build on experience, strengthen the broader Canadian regulatory regime and provide a basis for benchmarking regulatory practices.

The CNSC has laid out an ambitious agenda of regulatory work, governance and process improvement. Our relationships with international counterparts in the G-8 and other major regulators throughout the world, who are undertaking similar activities, will allow us to measure our progress and to share best practices while we work toward similar goals. I am confident that the CNSC will continue to prove itself as a strong, effective regulator who is trusted and respected throughout Canada and across the globe.

Linda J. Keen, M.Sc.

Management Representation Statement

I submit for tabling in Parliament, the 2007-2008 Report on Plans and Priorities (RPP) for
the Canadian Nuclear Safety Commission.

This document has been prepared based on the reporting principles contained in the Guide for the Preparation of Part III of the 2007-2008 Estimates: Reports on Plans and Priorities and Departmental Performance Reports:

  • It adheres to the specific reporting requirements outlined in the Treasury Board Secretariat guidance;
  • It is based on the CNSC's Strategic Outcome(s) and Program Activity Architecture that were approved by the Treasury Board;
  • It presents consistent, comprehensive, balanced and reliable information;
  • It provides a basis of accountability for the results achieved with the resources and authorities entrusted to it; and
  • It reports finances based on approved planned spending numbers from the Treasury Board Secretariat.

 

_____________________________
Linda J. Keen, M.Sc.
President & Chief Executive Officer

 

Summary Information

Mission, Vision and Values - The mission of the Canadian Nuclear Safety Commission (CNSC) is to regulate the use of nuclear energy and materials to protect health, safety, security, and the environment and to respect Canada's international commitments on the peaceful use of nuclear energy

In pursuing its mission, the CNSC is working toward its vision of being one of the best nuclear regulators in the world.

To realize its vision, the CNSC is committed to four strategic objectives:

  • ensuring the effectiveness of its regulatory regime
  • operating with a high level of transparency
  • attracting and retaining excellent staff
  • maintaining the efficiency of its regulatory regime

In carrying out its mandate, the CNSC upholds the values of quality, integrity, competence, dedication and respect for others.

Governance

The Canadian Nuclear Safety Commission is an independent, quasi-judicial administrative tribunal and federal regulatory agency. The CNSC is a departmental corporation under Schedule II of the Financial Administration Act and reports to Parliament through the Minister of Natural Resources. As a tribunal, the Commission sets overarching regulatory policy, establishes regulations as required, and decides on major licence applications, renewals and related requests. Members of the Commission, who are appointed by the Governor in Council, are separate from CNSC staff to maintain independence when making licensing and related decisions.

The CNSC staff advises the Commission, implements Commission decisions and enforces compliance with regulatory requirements (see Section III - Organizational Information for more details).

Regulatory Framework

The CNSC is created under the Nuclear Safety and Control Act (NSCA) and derives its mandate from the Act. The CNSC regulatory framework is an evergreen framework of regulations and associated regulatory policies, standards and guides that apply to all nuclear industries including, but not limited to:

  • nuclear power reactors;
  • non-power nuclear reactors, including research reactors;
  • nuclear substances and radiation devices used in industry, medicine and research;
  • the nuclear fuel cycle, from uranium mining through to waste management; and
  • the import and export of controlled nuclear material, dual-use material, equipment and technology identified as proliferation risks.

The CNSC also administers the Nuclear Liability Act, conducts environmental assessments under the Canadian Environmental Assessment Act (CEAA) and implements Canada's bilateral agreement with the International Atomic Energy Agency (IAEA) on nuclear safeguards verification. As a model of regulatory efficiency, the CNSC regulates the entire nuclear cycle and all aspects of nuclear safety in Canada.

Note: The Canadian Nuclear Safety Commission is called the CNSC when reference is made to the organization and its staff in general. The tribunal component is referred to as the Commission.

Strategic Framework and Program Activity Architecture

The CNSC's strategic framework is aligned with the Management Resources and Results Framework prescribed by the Treasury Board for government-wide planning and resource management, and is based on the CNSC logic model shown in Section III.  The CNSC works to achieve its strategic outcome through a single operational program activity: nuclear regulation. This program activity is sub-divided into five key programs or sub-activities that align with the logic model's activity areas.

The following table outlines the CNSC's program activity architecture:


Strategic Outcome:  Safe and secure nuclear installations and processes solely for peaceful purposes; and public confidence in the nuclear regulatory regime's effectiveness.

Estimated Planned Spending*
($ thousands)

Program Activity: 
Nuclear Regulation:

"To regulate the use of nuclear energy and materials to protect health, safety, security and the environment and to respect Canada's international commitments on the peaceful use of nuclear energy"

Program
Sub-Activity

Expected Outcome

2007-08
Expenditures

2008-09
Expenditures

2009-10
Expenditures

Regulatory Framework

A clear and pragmatic regulatory framework

10,531

8,959

8,959

Licensing and Certification

Individuals and organizations that operate safely and conform to safeguards and non-proliferation requirements

22,752

21,134

21,134

Compliance

High levels of compliance with the regulatory framework

35,811

32,723

32,723

Cooperative Undertakings

Cooperation and integration of CNSC's activities in national/international nuclear fora.

18,155

16,441

16,441

Stakeholder Relations

Stakeholders' understanding of the regulatory program

7,306

6,619

6,619

Total Financial Resources ($ thousands)

94,555

85,876

85,876

Total Human Resources (Full-Time Equivalent)

730

693

693


* Estimated planned spending includes corporate services. Most costs incurred for the CNSC's regulatory activities are recovered by the federal government from licensees under the Canadian Nuclear Safety Commission Cost Recovery Fees Regulations (2003). Fees are collected by the CNSC and deposited into the Consolidated Revenue Fund and are not a source of revenue for the CNSC. In 2007-2008, the CNSC projects to recover approximately 65% (about $62 million) of its total operating costs from fee-paying licensees.

Detailed CNSC plans to deliver expected results are presented in Section II - Analysis of CNSC's Program Activity.

Linking CNSC's Program Activity to Government of Canada Outcomes

The federal government's whole of government framework provides a logic model for the Government of Canada (GoC) that maps the contributions of all federal departments, agencies and Crown Corporations to high-level Government of Canada policy areas. The framework consolidates departmental and agency strategic outcomes and program activities into thirteen broad GoC outcome areas within four broad policy areas. In accordance with the framework, a strategic outcome may contribute to more than one GoC outcome area whereas a program activity may contribute to only one. The CNSC's strategic outcome contributes to three GoC policy areas as follows:

 Economic Affairs: 

  • a clean and healthy environment

 Social Affairs: 

  • healthy Canadians with access to quality health care
  • safe and secure communities

International Affairs:

  • a secure world through international cooperation

The CNSC's current Program Activity Architecture has only one program activity that, for the purpose of Government of Canada reporting, has been aligned to the federal outcome of "safe and secure communities" under the Social Affairs policy area. The CNSC will review its Program Activity Architecture annually with the Treasury Board Secretariat and make changes if required to ensure meaningful reporting.

Operating Environment and Challenges

The Canadian Nuclear Safety Commission licenses the siting, construction, operation, decommissioning and abandonment of all nuclear facilities in Canada. The CNSC also licenses nuclear substances and radiation devices used in industry, medicine and research. Examples of these uses include equipment for industrial radiography and for teaching, research, medical diagnosis and treatment, including cancer. In addition, the CNSC licenses the import and export of controlled nuclear material, equipment and information, and ensures that Canadians and Canadian companies comply with Canada's international obligations related to non-proliferation of nuclear weapons and peaceful use of nuclear energy.

The Canadian nuclear industry is undergoing significant growth in all sectors, from uranium mining and milling to power production, waste management, and cancer treatment. The CNSC will continue to put in place a modern, up-to-date regulatory framework for all facilities - one that considers all available science as well as input and operating experience from Canadian operators and other stakeholders. The CNSC will also draw upon recommendations of the IAEA and best practices from the international community wherever practicable. The resulting regulatory framework will, however, be Canadian.

a. Life extension of nuclear reactors and plans for new nuclear power plants 

Canada has 22 nuclear power reactors, many of which are approaching the end of their designed operating lives. Nuclear power plant licensees, are moving forward with projects to refurbish these plants for continued operation. To date, eight reactors have either been refurbished, are in the process of being refurbished, or have refurbishment proposals being considered by the Commission. In all cases, the refurbishment licensing applications must meet CNSC requirements for safe operation. 

With respect to new nuclear plants, the CNSC has received licence applications from Bruce Power and Ontario Power Generation to prepare their respective sites at Kincardine and Darlington for the construction of new nuclear units. As of December 31, 2006, the CNSC has conditionally accepted these applications.  Given that new reactors have not been constructed in Canada for many years and that worldwide operational and regulatory environments have changed, licensees, governments and the public require clarification of the modern regulatory requirements and processes for new nuclear power plants. In response, the CNSC has developed a licensing process and is creating a modern regulatory framework for the siting, design, construction, and operation of new nuclear power plants, while considering modern domestic and international standards.

Projects to extend the lives of existing reactors and to construct new nuclear power plants are expected to take place over the next 10 to 15 years.

b.  Uranium mines, mills and processing facilities

Several factors have triggered an increased demand for uranium: construction of new nuclear power plants worldwide, improved reactor operations throughout the world, extension of the operating lives of reactors, and significant depletion of existing uranium stockpiles. To meet this demand, mining licensees are expanding production from existing mines where possible, developing currently known smaller deposits of ore in Saskatchewan, and expanding current mine operations. In addition, mineral exploration companies and current licensees involved in new mine exploration are signalling the likelihood of submitting licence applications for new mines.

c.  Nuclear waste management

Both federal government and provincial governments are currently undertaking numerous initiatives to address legacy waste issues in several provinces and territories. In addition, the nuclear power industry is moving forward with projects to expand its waste storage facilities to accommodate the volumes of waste associated with on-going operations, as well as waste arising from reactor life-extension projects.

Projects to address legacy radioactive waste include Atomic Energy of Canada's plans to deal with legacy waste at its Chalk River Laboratory, and the Port Hope Area Initiative, led by the Low-Level Radioactive Waste Management Office, to construct a disposal site for low-level legacy waste in Port Hope, Granby and Welcome.

Long-term initiatives to manage and store radioactive waste include Ontario Power Generation's proposal for a deep geologic repository in Kincardine, Ontario, to house low- and intermediate-level radioactive waste. Also planned are projects for long-term management and disposal of spent fuel, in accordance with the Government of Canada's response to the recommendations of the Nuclear Waste Management Organization. These projects present significant technological, geological and community relations challenges for both industry and the CNSC. To prepare for these challenges, the CNSC is participating in the development of a Canadian waste classification system.

d.  Accelerators, nuclear medicine, and nuclear substances and radiation devices

Among the facilities that the CNSC licenses are high-power accelerators at TRIUMF at the University of British Columbia and the Canadian Light Source (CLS) at the University of Saskatchewan. The nuclear-related activities at these facilities require CNSC oversight, especially those at the CLS, where beam lines are being added to create an expanded research program.

Licensing and compliance activities associated with the regulation of nuclear substances, radiation devices and equipment and Class II nuclear facilities (where equipment is used for medical, industrial and research purposes) have increased substantially and are forecasted to continue growing over the next several years. Due to higher activity in oil and gas, logging and other related industries, the use of industrial radiography is rising rapidly. New procedures and new radioisotopes are also being introduced in nuclear medicine. As shown in the following bar chart, the number of licences issued for Class II nuclear facilities (principally cancer treatment facilities) is projected to grow from 325 in the year 2006 to at least 500 by the year 2015. An ongoing challenge will be to manage this growth while maintaining current licensing and compliance activities for existing Class II nuclear facilities, nuclear substances and radiation devices.

Members of Class II Facilities Projected and Actual 2000 - 2015


e. Nuclear Security and Emergency Management

National security and emergency management will remain ongoing areas of concern and important activities for the CNSC in the foreseeable future. The CNSC, with the new Nuclear Security Regulations, has a comprehensive regulatory framework to ensure rigorous and consistent oversight of facilities and processes. The CNSC works closely with officials of security agencies in Canada, the United States and the international community to gather and share security-related intelligence that is essential to maintaining integrity of the worldwide nuclear security network. Such cooperation and liaison, coupled with the CNSC's regulatory oversight and licensee vigilance, enables Canadian nuclear facilities to put in place appropriate security measures based on ongoing assessment of domestic and international risk.

Nuclear security also includes measures to prevent the diversion of nuclear material and radioactive sources for unauthorized or malicious acts. International and Canadian expectations in this area are set out in the January 2004 IAEA Code of Conduct on the Safety and Security of Radioactive Sources, which Canada has committed to implementing.  As such, the CNSC has developed and implemented a Sealed Source Tracking System, which is integrated with the CNSC's National Sealed Source Registry, and is also strengthening its regulatory processes for controls on the export and import of risk-significant radioactive sources.  These new initiatives will result in full Canadian implementation of the Code during the current planning period and a regime for consistent oversight and monitoring. Canada will be one of the first nations in the world to have this regime in place.

f.   International Safeguards

The CNSC is responsible for implementing the safeguards agreements between Canada and the IAEA and, increasingly, for assuring that all nuclear materials and activities in Canada are declared and adequately accounted for. To obtain international assurances under the IAEA Non-Proliferation Treaty and the Additional Protocol, the CNSC facilitates IAEA inspection in Canada and provides the required reports to the Agency. In recent years, the IAEA has significantly increased its verification efforts in Canada, particularly concerning the detection of undeclared nuclear material and activities. In addition, concern about nuclear terrorism has emphasized the need to appropriately control and account for all nuclear material in Canada. These demands will increase as more facilities and nuclear material require regulatory oversight, both domestically and internationally.

The CNSC's principal challenge is to ensure effective regulatory oversight of nuclear materials and activities in Canada. The CNSC is currently working with other departments and agencies to develop the policy framework for a new national safeguards system that meets the needs of Canadians and licensees while respecting Canada's obligations to the international community.  CNSC will seek additional resources needed to implement a new verification program, which will effectively complement the IAEA's efforts to draw positive conclusions, on an annual basis, for the international community.    

g. International Leadership

For the CNSC to fulfil its vision of becoming "one of the best nuclear regulators in the world," it must continue to be active with its international nuclear regulatory counterparts and relevant international organizations.

The CNSC maintains good working relationships with its regulatory counterparts through the International Nuclear Regulators Association, the CANDU Senior Regulators group, the IAEA and its Commission on Safety Standards (CSS), and the Nuclear Energy Agency of the Organization for Economic Cooperation. In addition, it co-operates with key bilateral partners, particularly the United States, France, the United Kingdom, Finland and the Republic of Korea.

The CNSC's international activities for the planning period from 2007-2010 will be influenced by multilateral initiatives aimed at harmonization of nuclear regulatory approaches and safety goals, expansion in nuclear cooperation with foreign regulatory counterparts, and introduction of new technologies into Canada, but it will also be limited by the organization's capacity to commit resources to these activities while it fulfils its domestic regulatory mandate for health, safety and security in Canada.

h.  Public hearings and stakeholder consultation

Nuclear facilities and materials have always attracted significant attention from the public, governments and public interest groups. Expansion in all sectors of the nuclear industry is driving the need to communicate more information to the public, especially in communities most affected by nuclear facilities. This is resulting in more frequent Commission hearings, more hearings in communities most affected by licensing decisions, greater consultation with First Nations on whom projects  may have an impact, and stakeholder desire for easier and faster access to information related to matters before the CNSC.

The CNSC must respond to these emerging demands and provide the public with information to understand nuclear safety and with opportunities to participate in regulatory document development and licensing decisions in a meaningful way. This will be key to upholding public confidence in the regulatory regime.

i.   Staffing requirements to meet increased workload

One of the CNSC's most critical ongoing challenges is sustaining an adequate workforce with the appropriate mix of scientific, technical and other professional knowledge, skills and experience. With the growth in nuclear sector activity creating industry competition for skilled resources, the CNSC continues to face significant challenges in attracting, recruiting and retaining experts. This challenge is compounded by the expected retirement of many of CNSC's most senior staff.  The CNSC will continue its ongoing efforts to secure required resources to meet emerging new demands.

CNSC Plans and Priorities

This section articulates the CNSC's priorities in two dimensions: program priorities and management priorities.  In order to achieve these priorities work will be undertaken in each of the CNSC program sub-activities.  They have been selected to achieve the CNSC's strategic outcome in consideration of the challenges and risks anticipated over the planning period.

Program Priorities

The CNSC's program priorities aim to provide Canadians with a forward-looking, transparent, and reliable regulatory process that protects health, safety and security while dealing with the challenges of rapid growth that are expected during this planning period. The CNSC's three program priorities and associated plans, for the current planning period, are as follows:

1.   Deliver an effective regulatory program for existing facilities

When allocating resources, the CNSC's first priority is to assure Canadians of the safety and security of the current nuclear industries in Canada. The organization is committed to maintaining adequate regulatory oversight of existing facilities. The following plan to achieve this priority has been developed:

  • Complete current regulatory documents development program and necessary amendments to regulations for existing facilities;
  • Execute baseline compliance program requirements across all regulatory programs;
  • Develop strategies to promote/enforce compliance where licensee deficiencies have been identified,  and respond to risk-significant licensee reports and findings;
  • Review and make recommendations (by staff) to the Commission with respect to applications for renewal of current licences across the regulatory program; and
  • Effectively implement Canada's obligations under its International Atomic Energy Agency (IAEA) safeguards agreements.

2.         Effectively manage growth of the regulatory program

As described earlier in this document, the nuclear industry is growing in all sectors. The CNSC must ensure that new facilities and uses, expansions and/or life extensions of existing facilities and increased international security issues are subject to the same risk-informed regulatory oversight as existing facilities. CNSC requested and received additional resources to enable it to expand its oversight to meet the growing regulatory demand. The CNSC will continue its efforts to secure required resources to meet emerging demands over the planning period and beyond. The following plans are in place to achieve this priority.

  • Produce regulatory documents for current and new activities (for example,  new reactor builds, uranium mining and milling expansion, waste repositories, Class II facilities, etc.) to ensure a modern framework;
  • Undertake a comprehensive, evergreen environmental scan to improve understanding of growth areas;
  • Provide regulatory oversight for power reactor refurbishment and projects for construction of new nuclear power plants by creating and executing regulatory activity plans;
  • Conduct environmental assessments to respond to licence applications for new mines, new reactor construction, refineries, waste repositories and Chalk River Laboratories legacy projects;
  • Implement the Code of Conduct on the Safety and Security of Radioactive Substances, by strengthening import/export licensing and control of risk-significant sources; and
  • Design and implement a new national safeguards system to complement international agreements.

3.         Implement improvement initiatives

The CNSC is committed to continuous improvement of its regulatory structure and management practices, so it can maintain an effective regulatory regime that is efficient, modern and evergreen. Program improvement plans for the planning period are as follows:

  • Improve planning and performance management;
  • Enhance and complete documentation for the CNSC's environmental assessment and oversight programs;
  • Implement environmental assessment (EA) processes including panel review processes for EA's of new power reactor projects;;
  • Institute changes to the regulatory framework to make it more strategic, forward looking, and in line with international- benchmarks, while maintaining its transparency;
  • Develop, implement, monitor and improve CNSC's management system, which includes systematic documentation of policies, processes, procedures and tools for both licensing and compliance activities; and
  • Increase communication efforts.

Management Priorities

Management priorities focus on improving management practices, controls and enabling infrastructure to ensure effective delivery of the regulatory program.

1.   Quality Management System

In 2005, CNSC formally committed to establishing a corporate-wide quality management system that is being developed in accordance with the International Atomic Energy Agency's Safety Standard GS-R-1 and accompanying safety guides, which include the international standard for nuclear regulatory bodies. This quality management system, which is consistent with the Treasury Board's Management Accountability Framework, will facilitate documentation and continuous improvement of the CNSC's business processes and practices.

The CNSC's action plan to implement its quality management system has the following major components:

a. Consistent Operations Management

To ensure consistent application of its operational processes, compliance procedures and licensing decisions, the CNSC will -over the course of this planning period- finalize refinement, integration and modernization of its compliance program and licensing processes. The resulting performance-based programs and processes will be clear, well defined, risk informed and integrated. Consistent and defensible regulatory decisions and licensing recommendations, as well as clarified expectations and common understanding by stakeholders, are only a few of this long-term initiative's important objectives.

b. Integrated Planning and Performance Management

The Integrated Planning and Performance Management initiative was launched in 2006 to: (i) improve integration of processes and procedures at all levels of planning, performance management; (ii) provide simple, timely and integrated tools, information and performance metrics to enable CNSC's leaders to refresh plans as required by significant changes in operating context and performance results and; (iii) develop a corporate risk profile and improve longer term environmental scanning as a foundation for improved strategic planning. With its growth, the CNSC is committed, over the next two years, to improve its results-based management approach to priority setting, resource allocation and measurement of success.

c. Leadership and Management Development

Current and expected growth at the CNSC and the need for excellence in leadership capabilities necessitates a more strategic and cohesive approach to leadership development. Recently, the CNSC updated its Leadership Development Program. Implementation, which began in 2006-07, will ensure that the CNSC's current and future leaders have competencies, behaviours, and attitudes consistent with the organization's values and its commitment to excellence.

d. Integrated Management Information Systems

A larger regulatory workload has increased the volume and complexity of licensee information that the CNSC must maintain. For this reason, the CNSC is investing in a single, integrated management information system. This initiative's initial phase will involve installing a database across all regulated sectors to consistently capture licensing and compliance information, including inspection results, and will support integrated planning and performance management processes.  The project will also introduce electronic documentation systems that will allow e-filing of regulatory information. In order to provide secure, comprehensive, timely regulatory reviews and approvals, and to improve ongoing licensee compliance activities and related communications, MITS2 -compliant, secure communications networks, electronic document handling technologies and appropriate administrative procedures will be implemented. These measures will ensure the ongoing protection of commercially confidential licensee information.

  2MITS - Management of Information Technology Security is a federal government operational standard that defines security requirements that federal departments and agencies must fulfil.

2. Federal Accountability Act

The Federal Accountability Act was passed into law by Parliament on December 12, 2006. The CNSC has done preliminary analysis of the implications and is implementing policies, controls and procedures where such action is required to fully meet the provisions of the Act. As the Government leads the implementation of the Act over the next months and years, the CNSC is committed to implementing any changes in its governance, internal controls and other practices as required.

3. Implementation of a First Collective Agreement

The CNSC is a separate employer under Schedule II of the Financial Administration Act and has recently signed its first collective agreement with its represented employees.  The agreement, which took effect November 20, 2006, is for the period June 14, 2004, to March 31, 2008.  CNSC management looks forward to continued engagement with union and staff members in building strong, cooperative labour management relationships.