Debates of May 31st, 2010

Natural Resources--Main Estimates, 2010-11

[Christian Paradis, Conservative, Mégantic—L'Érable, QC]

Madam Chair, NRCan has made great strides in the north through work with leading edge science to help Canada exercise our Arctic sovereignty, protect the north's environmental heritage and promote social and economic development.

Through NRCan, we have invested $100 million in the geo-mapping for energy and minerals program, or GEM, to better understand the potential for new energy and mineral deposits in the north. Northerners can expect to see the benefits of more economic opportunities and jobs as industry works to explore and develop oil, gas and mineral deposits. A key activity of the GEM program is collecting new field data and introducing innovative concepts that help improve our understanding of the resource potential.

As well, budget 2010 provided $80 million to create the Canadian high Arctic research station. NRCan has provided significant technical advice on the science and technology goals, location analysis and logistical requirements, and $85 million has been provided to maintain and upgrade key Arctic research facilities.

NRCan's polar continental shelf program will use $11 million to better support more than 1,000 researchers from Canada and around the world. This funding will significantly boost the capacity of the polar continental shelf program in Resolute Bay and facilities to support field research throughout Canada's Arctic.

[Dick Harris, Conservative, Cariboo—Prince George, BC]

Madam Chair, this government believes in the potential of all regions of the country. Hamilton, Ontario has been hit very hard by the economic downturn. During these times, the manufacturing and auto industries have been very tough.

Could the minister give an example of what this government is doing to help hard hit regions like Hamilton, Ontario?

[Christian Paradis, Conservative, Mégantic—L'Érable, QC]

Madam Chair, the Government of Canada is moving its main materials research facility from Ottawa to Hamilton, the hub of the automobile and manufacturing industries. I am referring to the Materials Technology Centre of the Canada Centre for Mineral and Energy Technology, known as CANMET-MTL.

The proximity of the companies and universities that are very involved in leading-edge research on materials and their development, as well as their marketing, will stimulate innovation in Canada's manufacturing sector. It will also stimulate economic activity and ensure that high-quality jobs are maintained as well as created.

We know that our government recently launched the science and technology strategy, which recognizes the need to create synergies between industry, universities and government in order to promote innovation in science and technology.

[Claude Guimond, Bloc, Rimouski-Neigette—Témiscouata—Les Basques, QC]

Madam Chair, I am pleased to take part in this debate this evening. As we know, Quebec has been particularly affected by the forestry crisis that has been raging for too long, unfortunately. The people of our region are reaching the end of their rope. The minister must know this because he represents a rural area in Quebec. His government turned its back on forestry workers but did not hesitate to rush to the assistance of Ontario's auto industry. That is the reality.

The new Conservative government policy is: Give it all to Ontario. Give Ontario more MPs. Give Ontario the securities regulator. Give Ontario's automobile industry billions of dollars.

In the meantime, the Prime Minister's puppets from Quebec have quietly agreed to promote Ontario industry while loudly claiming to defend the Quebec nation.

The minister and the government know very well that the forestry industry needs loan guarantees to get back on track. Everyone knows that is the solution, but the government is still doing nothing.

Why does the government claim in the House that loan guarantees are illegal under the softwood lumber agreement while its lawyers are trying to prove the opposite to the London Court of International Arbitration and legal opinions establishing their validity have been issued by various law firms?

What will the minister do if the London Court of International Arbitration ruling in the Canada-U.S. dispute on loan guarantees for the forestry industry states that they are legal?

[Christian Paradis, Conservative, Mégantic—L'Érable, QC]

Madam Chair, I thank my colleague for his question, but not for his jeers. That party jeers at the government far too often. It does not matter; we will have a constructive dialogue.

Indeed, part of my riding is an RCM that depends on the forestry industry. There are border mills in my region, and I am well aware of the problems facing that industry at this time.

Clearly, it is a question of markets. We need to both consolidate what we have and give the industry the boost it needs to advance into the economy of the future. That is why the latest investment announced in our budget—$100 million over the next four years—says a great deal. The Forest Products Association of Canada welcomed this investment, which it described as the boost it needed to develop new markets for bioproducts. When a sawmill has logs to cut, they must be cut. However, we must use all the byproducts to create bioproducts in order to bring in additional revenue, instead of treating byproducts as waste.

We are also providing industries with support to deal with the market downturn. We are in the midst of a global economic crisis. I would remind my colleague that through EDC, nearly $14 billion has gone towards financially supporting hundreds of forestry companies in Quebec. Between January 2009 and March 31, 2010, we invested $14 billion. That is an enormous amount, representing significant support. Yes, we need to continue. We announced this new measure in budget 2010, in order to make even greater progress and better position ourselves in the economy of the future.

[Claude Guimond, Bloc, Rimouski-Neigette—Témiscouata—Les Basques, QC]

Madam Chair, the minister very clearly said, once again, that the government had allocated $100 million for the forestry crisis, but he did not mention that it had allocated $9.7 billion for the crisis in the automotive industry in Ontario.

Does the minister think that the government should influence the forest product market to make it easier for the industry to modernize and innovate new products, in light of the fact that this could be an excellent solution for the forestry industry in Quebec?

[Christian Paradis, Conservative, Mégantic—L'Érable, QC]

Madam Chair, everyone agrees that we must keep the softwood lumber agreement. Everyone knows that, including my colleague. The industry has said so and continues to say so. That is why we sat down with Quebec and with industry stakeholders to find out where investments could make a difference.

We invested $200 million in Quebec to support silviculture work through agreements in Saguenay-Lac-Saint-Jean, Nord-du-Québec, Abitibi-Témiscamingue and Saguenay-Côte-Nord. Then, we invested $34.7 million to repair bridges and culverts on multipurpose routes.

My colleague, the Minister of State for the Economic Development Agency of Canada for the Regions of Quebec, recently announced $100 million in assistance for forestry communities. I must point out that all of these commitments by the federal government have helped maintain or create 8,300 jobs in Quebec. That is significant.

[Claude Guimond, Bloc, Rimouski-Neigette—Témiscouata—Les Basques, QC]

Madam Chair, 8,300 jobs were saved, but how many have been lost as a result of years of inaction? In light of the current situation, I have a hard time showing my gratitude to the minister for what he is telling us.

This might be a good time to point out to the minister that Bill C-429, introduced by my Bloc Québécois colleague, the member for Chicoutimi—Le Fjord, is currently before the House. We think this bill is an excellent initiative to help the forestry industry by promoting the use of wood in the construction of federal buildings. The bill was supported by all of the opposition parties. Only the Conservatives opposed it.

What will the minister do when the majority of this House is calling for the implementation of this bill? What will he do when the time comes to once again vote on this bill?

[The Deputy Chair, NDP, Denise Savoie]

I would ask all hon. members to address the minister through the Chair.

The hon. minister has the floor.

[Christian Paradis, Conservative, Mégantic—L'Érable, QC]

Madam Chair, let me tell the House what we are doing for the industry. Economic recovery is on the horizon although it is still fragile. However, the fact remains that the price for softwood lumber has increased by 71% over the same period last year and the price of pulp has gone up by 50%.

A number of companies have started resuming operations in some plants, such as Quesnel and Crofton. Thanks to the community adjustment fund alone, labs in Quebec will receive $78 million in support for innovation and the development of new technologies in the forestry sector in areas such as bioenergy and next generation construction systems, and they will receive more than $1 million to develop a business plan and a technical design for a pilot demonstration project for the production of nanocrystalline cellulose.

In 2009, EDC provided services to more than 200 forestry businesses in Quebec, which resulted in roughly $14 billion in exports. Recently, I went to Quebec City to meet with the Quebec Forest Industry Council and announce funding for cecobois and for QWEB to help them better develop markets. Not only do we respect all the efforts being made, but we support them as well.

[Claude Guimond, Bloc, Rimouski-Neigette—Témiscouata—Les Basques, QC]

Madam Chair, I was at the same meeting as the minister in Quebec City recently, and what the people in attendance were also asking for was, once again, loans and loan guarantees.

Although sustainable development and environmental protection have become imperative and the more enlightened among us know that we must focus on renewable energy, the Conservatives continue to focus on traditional sectors that are major polluters. Since Canada draws some of its wealth from the highly polluting oil sands, the government is reluctant to follow the lead of countries that are entering the 21st century. Quite the opposite is true in Quebec. Along with Norway, Quebec is the only industrialized society in which oil is not the primary energy source.

Instead of pitting economic growth against environmental protection, as successive federal governments have always done so well, it is time to give sustainable development the stimulus it needs. Solutions related to sustainable development abound. For instance, a business from my riding, the Coopérative forestière Haut Plan Vert in Lac-des-Aigles, recently appeared before my colleagues and me on the Standing Committee on Natural Resources. The company's goal is to revive rural communities by redeveloping abandoned agricultural lands in order to produce energy that the community can use to meet its own needs. What a great project. There is no shortage of great ideas like this one. The problem is that there is not enough money to carry out such projects.

Under these circumstances, how can the minister explain that out of $1 billion earmarked for the clean energy fund, $800 million was allocated to carbon capture and storage projects in western Canada?

[Christian Paradis, Conservative, Mégantic—L'Érable, QC]

Madam Chair, I believe that the main energy source that my colleague was referring to is electricity. We know that hydroelectricity is the main source of electric energy in Quebec, but when it comes to transportation, it is fossil fuels, as it is everywhere else. We know that here in Canada, transportation is responsible for 27% of all greenhouse gas emissions. That is why my colleague, the Minister of the Environment, is working with the United States to align our regulations in order to reduce our environmental footprint on that front. That is why we, at Natural Resources Canada, are putting effort and energy into ensuring that the oil sands can be exploited in such a way that the environmental impact can be reduced as much as possible, be it in relation to rehabilitating the land, recycling water or reducing greenhouse gases.

I was in Chicago, in the United States, as part of the clean energy dialogue and it was suggested that hydroelectricity is a clean energy source that should be exported to the United States. It is a major plan for a player such as Hydro-Québec and we may be able to help in that sense. We are aiming to have 90% of our electricity produced by non-emitting sources by 2020. We are presently at 75%.

Yes, Quebec plays a very important role given that the electricity produced is predominantly hydroelectricity. However, we will continue to improve in that area to encourage investment in clean energy. In Quebec, the $100 million that was announced in the 2010 budget is very good news. Our people can begin to focus on opportunities such as biomass. We have been asked about that for a long time and the Forest Products Association of Canada and Quebec's forest products association are happy about this good news.

[Claude Guimond, Bloc, Rimouski-Neigette—Témiscouata—Les Basques, QC]

Madam Chair, speaking of biomass, earlier I was talking about the Haut Plan Vert forestry cooperative in my riding, which will be using a new energy plant to play a part in the green economy. I would like to know if the minister can find a way to fund projects like that.

Does the minister have programs to provide funding for small projects like the Haut Plan Vert forestry cooperative in Lac-des-Aigles in my riding?

[Christian Paradis, Conservative, Mégantic—L'Érable, QC]

Madam Chair, the member is capable of doing his work without asking me for help. He was elected as an MP to take care of his riding and to provide direction to the people in his riding. There is the clean energy fund, the green infrastructure fund and CED programs. There are lots of programs, but it is not up to me to go through those programs to find out what applies to projects that people in his riding bring to his constituency office.

However, if he has questions about Natural Resources Canada's programs in general, I would be happy to respond that what he should focus on right now is the fact that $100 million was set aside in the 2010 budget to produce biomass and bioproducts. We will keep a close eye on this.

[Claude Guimond, Bloc, Rimouski-Neigette—Témiscouata—Les Basques, QC]

Madam Chair, is the minister aware that the $800 million he is giving to the oil companies over two years for carbon capture and storage is simply veiled subsidies for this billion dollar industry, compared to little projects like the one I just mentioned by the Coopérative forestière Haut Plan Vert in Lac-des-Aigles?

[Christian Paradis, Conservative, Mégantic—L'Érable, QC]

Madam Chair, this is the problem we are facing. One does not exclude the other. The green economy, yes, but fossil fuels for transportation are here to stay for years to come.

The government is making strategic, targeted investments to reduce our environmental footprint in terms of air, water and land. This does not mean that renewable energy projects cannot be carried out in different parts of Canada. That is why we have programs and why our government has invested $10 billion since 2006 in clean energy alone.

[Dick Harris, Conservative, Cariboo—Prince George, BC]

Mr. Chair, I would like to take a moment to congratulate the minister for the superb leadership he has given to this important portfolio and the most explanatory response to questions about the estimates that he has given tonight. I am sure the people of Canada appreciate that, as we do in the House.

I would be remiss if I did not say of the deputy minister and her departmental officials that we are all very proud of the great job they have done in the management of their department and in support for the minister.

I would like to take this opportunity to provide to the House a perspective on some of the challenges that the forest sector has and is facing and on the actions that our government is taking to help create a more sustainable and competitive sector for the future.

The Canadian pulp and paper industry is going through a period of major reconstruction. Challenges in recent years include the declining demand for newsprint, the high Canadian dollar, and increased competition from low-cost producers. The negative effects of these have been further intensified by the recent global recession.

While these challenges still exist, there is a great potential for new opportunities to drive the Canadian forest sector towards a renewed, more sustainable and competitive future.

The Government of Canada recognizes this under the leadership of our Prime Minister and our Minister of Natural Resources. We recognize this and that is why we are making well-targeted, quality investments that will improve energy efficiency and promote market diversification by developing new renewable energy products and processes, all of which will create significant economic and environmental benefits.

Since 2006, the Government of Canada has allocated over $10 billion, I repeat that, $10 billion to reduce our greenhouse gas emissions and protect our environment by investing in green infrastructure, energy efficiency, clean energy technologies, and the production of energy products that pollute less.

Most recently, the 2010 budget provides $100 million to help support the commercialization of market-ready technologies in the forest sector to create a world-class industry able to compete in tomorrow's bioeconomy.

Let me talk for a moment about the pulp and paper green transformation program. The Canadian pulp and paper sector has made great strides in reducing its environmental footprint.

This effort must continue. This is why our government has established the pulp and paper green transformation program.

Under this program, Canadian pulp mills that produce black liquor are eligible to access up to $1 billion to undertake capital investments that improve the energy efficiency of their facilities, their capacity to generate renewable bioenergy, and their overall environmental performance.

The program will also generate new investments in pulp and paper mills throughout the country, making them greener, more sustainable and more competitive, and positioning them at the forefront of the bioeconomy.

These are monumental steps that this government has taken in the last three or four years, steps that the previous Liberal government had no idea to take in the 13 years it was in power. I congratulate our Prime Minister and this government for that foresight.

I would like to cite some examples among the 24 pulp and paper companies in Canada that have received funding under this program. One is Celgar in the Kootenays of British Columbia. The Government of Canada is investing $40 million in the Celgar pulp mill, one of Canada's largest and most modern pulp mills, in Castlegar, British Columbia. This investment will allow the mill to generate clean, green energy from forest biomass.

It will also enable the mill to take advantage of waste heat, increase the production of steam from wood waste, and increase capacity to generate bioenergy, something we all strive for. With these improvements in place, the mill will generate enough renewable electricity to meet its own needs and supply some energy to the B.C. grid by late 2010.

Another pulp mill taking advantage of this program is Domtar. Our government is investing $57 million in two capital projects at Domtar Corporation in Kamloops, British Columbia. The projects will allow the mill to acquire new equipment and modify existing equipment in order to increase its capacity to produce renewable energy and reduce particulate emissions. With this investment, Domtar will improve its environmental performance and contribute to a more sustainable pulp and paper industry in Canada.

Another pulp company in British Columbia is Howe Sound Pulp and Paper. A $6 million investment by the Government of Canada will allow Howe Sound Pulp and Paper to invest in a series of upgrades to its evaporator to redirect more steam for the production of electricity. By increasing its renewable energy production, the mill is reducing its reliance on natural gas, which will lead to a reduction in greenhouse gas emissions.

The upgrades are also expected to produce in excess of 8,200 megawatt hours of electrical power, enough energy to power 800 homes a year, which the mill can sell to B.C. Hydro. This is a well-planned development.

This is only the beginning. The federal government has received over 40 applications from companies that want to launch projects in all parts of Canada, right from coast to coast to coast. A number of new announcements will take place in the next few months.

This is a government with a vision of cleaning up the environment, reducing greenhouse gases, and this is just one of the programs that is making huge steps toward that goal.

If I might add at this time, I am going to share my time with the members for Tobique—Mactaquac and Montmagny—L'Islet—Kamouraska—Rivière-du-Loup.

In conclusion, by supporting the Canadian pulp and paper sector in its ability to become more energy efficient and generate renewable bioenergy, this Conservative government is also helping to save jobs and enhance our capacity to take advantage of future market opportunities.

This Conservative government is proud to be a partner with companies that are at the forefront of the green transformation taking place throughout the pulp and paper industry.

I think it is just the most obvious thing that these represent significant investments by this government, billions of dollars by this government in a short, four-year period, when the previous Liberal government had 13 years to tune into the greening of our world and bioenergy and reducing greenhouse gas emissions. They chose not to get involved in a program like this. In fact, the Liberals chose to increase greenhouse gas emissions. They chose to do nothing and let the greenhouse gas emissions increase. That is a shameful example of environmental stewardship.

What this Conservative government has done in just the last four years under our Prime Minister and this minister has been significant investment.

I would like to ask the minister who has led us down this path to bioenergy and greener transformation to expand on how these—

[The Chair, Conservative, Andrew Scheer]

Order, please. I wish to inform the hon. member for Cariboo—Prince George that he has taken up 10 minutes of his slot. If he intends to share his time, he may want to put his question quickly so that his colleagues can speak.

[Dick Harris, Conservative, Cariboo—Prince George, BC]

Mr. Chair, could I ask the minister to expand on how these sorts of measures will benefit the forest industry and ensure a successful sector for the future?

[Christian Paradis, Conservative, Mégantic—L'Érable, QC]

Mr. Chair, I would like to thank my hon. colleague for his excellent speech, which of course I listened to very carefully.

I will be happy to respond to the hon. member's question. Our government's investment in the pulp and paper green transformation program is one of the many steps we have taken to support forestry workers in communities right now, while securing a stable and competitive sector for the future. This program allows pulp and paper mills across Canada to further reduce their environmental footprint, while establishing themselves as world leaders in renewable energy production. The example of funded projects mentioned by my colleague demonstrates that this program is delivering real results for communities, for Canadians and for the forest industry as a whole.

I would like to take this opportunity to mention that we are also building on past investments to drag the industry toward the next generation of renewable energy products and processes.

In addition to the pulp and paper green transformation program, $170 million is being provided to help our forestry industry develop new products and processes and capitalize on new market opportunities.

The $100 million recently announced in budget 2010 will help accelerate the development of new technologies to create a more diversified and stronger forest sector that offers a range of new, high volume products in the form of renewable energy. This clearly shows that our government is looking to tomorrow's markets today, working now to drive growth and ensure that Canada emerges a leader in the clean energy economy of tomorrow.

We understand the importance of Canada's forestry industry to local communities and our national economy. The record shows that right from the beginning our government has taken decisive action to assist Canada's forestry industry, while recognizing its important role in tomorrow's bio-economy.

[Mike Allen, Conservative, Tobique—Mactaquac, NB]

Mr. Chair, I want to follow-up on that. Pulp and paper mills across Canada are looking for new ways to maintain their environmental and economic sustainability. One of those is turning the black liquor product, a byproduct of the pulping processes, into heat and power. AV Nackawic in my riding received money for this recently. It makes dissolving pulp to be used in rayon for clothes.

Recently. J.D. Irving's Lake Utopia Paper in New Brunswick received $22 million in funding under the pulp and paper green transformation program to install a new biomass boiler that will reduce the mill's reliance on fossil fuels to power its manufacturing operations and lower greenhouse gas emissions.

Could the Minister of Natural Resources tell us more about how this pulp and paper green transformation program is working in reality?

[Christian Paradis, Conservative, Mégantic—L'Érable, QC]

Mr. Chair, the pulp and paper green transformation program is laying the groundwork for a greener, more sustainable future for Canada's pulp and paper sector. The program supports innovation and environmentally friendly investments in areas such as energy efficiency and renewable energy production. It will allow pulp and paper mills in Canada to further reduce their greenhouse gas emissions, while helping to position them as leaders in the production of renewable energy from forest biomass. The pulp and paper green transformation program will provide up to $1 billion to projects such as the one the hon. member spoke about in New Brunswick.

Further, by meeting market demands for sustainably manufactured pulp and paper products, mills like Lake Utopia will remain economically viable, enabling them to maintain jobs within the community.

The pulp and paper green transformation program complements the $100 million in budget 2010 being delivered over four years to support the development, commercialization and implementation of advanced technology in the forest sector, helping create a world-class industry able to compete in the clean energy economy of tomorrow.

[David McGuinty, Liberal, Ottawa South, ON]

Mr. Chair, I will be splitting my time this evening with the member for Kings—Hants.

Could I ask the minister a questions, going back to the eco-energy program for Canadians who are watching. He mentioned earlier that over one million Canadians have taken up the program. I am not sure what timeline he had in place. However, could he tell us what has been the increase in uptake on that program in the last three years?

[Christian Paradis, Conservative, Mégantic—L'Érable, QC]

Mr. Chair, I will clarify what I said. At the end of 2011, we expect that half a million Canadians, half a million families, will get that program.

Mr. Chair, there have been many increases. To begin with, $160 million was set aside in budget 2007 to introduce the program.

Then our economic action plan included an additional investment of $300 million. Another $205 million was added from the clean energy fund. Finally, another $80 million has been added. This means a total investment of $745 million in this 2007 program.

[David McGuinty, Liberal, Ottawa South, ON]

Mr.Chair, I did not get an answer to the question. I asked the minister specifically what the percentage increase has been in three years. He has no answer.

In 2006 the government killed $5.6 billion of climate change funding, including a commercial buildings retrofit program to help our companies and our commercial operations achieve energy efficiency. Now we learn the government is killing an eco-energy program for everyday Canadian householders, everyday Canadian homeowners, co-op and condo owners who want to do the right thing and become more energy efficient.

Let me ask the minister this next question. He is very big on metrics. He says he is doing an assessment of the program. What has been the net effect of the eco-energy program on driving energy efficiency retrofits out of the underground economy?