Not true, zircaloy has an excellent track record.
However, the nuclear industry has not been sleeping for the last 50 years and is always looking to improve all aspects of the business.
"Although it has had a very good track record of safe use in nuclear reactors,
zircaloy becomes susceptible to failure over the long term. As a result, fuel rods are often taken out of service even though they may have a substantial amount of fuel remaining to produce energy.
To improve the resiliency, research has focused on finding a material that can withstand the conditions in a nuclear reactor core. "Many things like exposure to water and radiation degrade cladding," said David Carpenter, a researcher in the MIT Department of Nuclear Science and Engineering.
With the new material, silicon carbide fibers would be wound into a composite tube that is the same size and shape as traditional zircaloy cladding. The advantage to using the new material is that silicon carbide has several characteristics that make it well suited to the reactor core environment. It has excellent strength at high temperatures, works well with water, has very low neutron absorption and resists radiation damage, according to researchers at MIT."
http://www.energybiz.com/magazine/article/196201/boosting-nuclear-fuel