http://www.thespec.com/Opinions/article/594836

What is at stake is decades of Canadian innovation, significant public profit, and the very existence of a large part of Canada's high-technology sector. It is no wonder commentators are likening the state of affairs to the Avro Arrow, the jet fighter killed by the Diefenbaker government, effectively ending Canada's aerospace industry.

Atomic Energy Of Canada Ltd. (AECL) is a Crown corporation that conducts research, runs the troubled Chalk River facility that until recently produced a large share of the world's medical isotopes, and designs and manufactures Candu reactors.

Candu reactors are unique, entirely designed and built in Canada, and using different, and essentially simpler, fuel and technology than other countries' designs. Of about 440 operating reactors in the world, about 10 per cent are Candu; Canada is one of only five countries that can deliver a nuclear power station anywhere in the world.

And the world is re-embracing nuclear power generation in a big way. China and India are investing billions of dollars in nuclear; many Western nations are planning new nuclear plants. Canada, through AECL/Candu, has the chance to be a major player in that market. Billions of dollars could flow back into Canada with only a small share.

But Stephen Harper's spokesperson said last month that AECL was "one of the largest sinkholes of government money probably in the history of the government of Canada." Ottawa says it will sell some of AECL but isn't clear on which parts or under what conditions.

At virtually the same time, the Ontario government pulled the plug on its plans for a new nuclear station at Darlington, set to be operational in nine years. Energy Minister George Smitherman said the AECL bid was too high, leaving the door open for a better deal.

It was a nasty move. Smitherman and boss Dalton McGuinty are essentially telling Ottawa (same taxpayers, different pocket) to subsidize AECL's bid. If Ontario buys anything other than AECL reactors, it would likely be a death blow to Candu.

And, of course, Ontario's delay wastes an opportunity to build generating infrastructure while the recession has lowered demand. The delay risks power shortages again when the economy picks up.

The province is failing its commitment to nuclear power, risks critical power shortages, and imperils Ontario's share of nuclear-industry jobs and investment if it cripples Candu. Rather than lean on Ottawa for a bailout, the province should constructively rework the deal.

Ottawa, meanwhile, needs to bring clarity to the future of AECL and its Candu operations. Partial privatization could bring in needed capital investment, but a predatory takeover -- buying the Candu competition just to shut it down -- must be ruled out. Contracted private-sector management for AECL, with resulting free-market discipline, could also be an option.

But Canadians must continue to have an interest -- preferably a majority interest -- in AECL. Candu deserves to be protected.

Ottawa says banks and newspapers are too important to be sold to foreign interests. The same applies to Canada's hard-earned nuclear industry.

Editorials are written by members of the editorial board. They represent the position of the newspaper, not necessarily the individual author.