Debates of May 21st, 2013

Natural Resources—Main Estimates, 2013-14

[Marc Garneau, Liberal, Westmount—Ville-Marie, QC]

Mr. Chair, I think the minister said this time that it “will bring us” halfway, which is different from saying that they are halfway. We should be able to see right now, if the government claims that it is halfway, that it knows that we are at or below 670 megatonnes now. Can he give me a straight answer, please?

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, frankly, I find it a bit rich to be attacked on this issue by the Liberal Party, which signed us on to an international agreement that it had no intention of complying with and that it did not comply with. During their tenure, the result was an increase in greenhouse gas emissions by, I believe, some 30%. We do not have to listen to belated comments from the members of the Liberal Party. The apologies are belated, and we are still waiting for them.

[Marc Garneau, Liberal, Westmount—Ville-Marie, QC]

Mr. Chair, I do not think I am going to get an answer about how we are halfway to our 2020 targets, but let me ask another question. Can the minister tell us what share of the progress that has been made is due to the provinces, as distinct from federal government action?

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, our obligation is an obligation for the country, and that means that we all have to collaborate together. The natural resources sector is an area of shared jurisdiction, and in the case of the environment, it is directly shared, so of course, we expect and are receiving co-operative action from the provinces, and we are doing our part.

The emissions, as I said, from 2005 to 2011, fell by 4.8%, while the economy grew by--

[The Assistant Deputy Chair, Conservative, Bruce Stanton]

Order, please. We still have to try to work on getting the response time similar to the time taken for the answer as close as we can.

The hon. member for Westmount—Ville-Marie.

[Marc Garneau, Liberal, Westmount—Ville-Marie, QC]

Mr. Chair, that was a non-answer.

Let me say that I have also witnessed a first this evening. This is the first time the Conservatives have actually acknowledged that it is a team effort. They did not tell us how much the provinces have contributed, but up until now, for the past number of years, they have made it sound as if it has been only through their efforts that the actual numbers have been reduced. I am not even talking about the slowdown in the economy. It is the first time there has been some kind of recognition that the provinces are also playing a role in this.

Let me go on to my next question. Canada has the opportunity to be a world leader. The Conservative government claims that it is a world leader in renewable energy. Why is it that the government is missing the opportunity, with its staggering $328 million in cuts to clean energy funding? For example, there is $162 million cut from the clean energy fund and $60 million cut from the ecoENERGY for biofuels fund. There is $59 million cut from the grant for Sustainable Development Technology Canada for next generation biofuels.

How is it that the government is able to go down to the United States and to Europe and say that it is taking all sorts of responsible actions, when it is cutting the programs that are intended to develop the clean energy sources we need to have in this country?

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, Canada is a recognized leader in clean energy and energy efficiency. For example, the International Energy Agency ranks Canada as second only to Germany, among 16 countries, in its rate of energy efficiency improvement from 1990 to 2008. Since 2006, our government has invested more than $10 billion to reduce emissions and to protect our environment through investments in green infrastructure, energy technologies, clean energy and the production of cleaner energy and cleaner fuels. These investments increase our competitiveness globally and create jobs for Canada.

Our government's clean energy investments contribute to our goal of reducing greenhouse gas emissions by 17%. With respect specifically to energy efficiency, we have shown strong leadership. In 2015, energy performance standards will be in place for 55 appliances and equipment used in Canadian homes and businesses. This is expected to save an estimated 48 megatonnes of greenhouse gases annually by the end of this decade. In 2011, our government announced $195 million over five years to continue its momentum in improving energy efficiency in Canada.

It is this type of action that will assist in meeting our greenhouse gas emission targets.

[Marc Garneau, Liberal, Westmount—Ville-Marie, QC]

Mr. Chair, the government likes to talk about its sector-by-sector approach, and it has indeed brought in a couple of initiatives, one dealing with car exhaust emissions and the other dealing with coal-fired generating stations. The big one, because it is the one that is most susceptible to our not being able to reach our 2020 targets is, of course, the sector dealing with oil and gas. We have been waiting for a long time for this one, and it is really the elephant in the tent.

Can the government tell us on what date the government will introduce its long-delayed oil and gas regulations under its sector-by-sector approach? Is there funding from the minister's department involved in the implementation of the regulations?

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, I am pleased that the member opposite recognizes the significant progress we have made in the transportation sector, which makes up 24% of Canada's emissions.

In October 2010, light-duty vehicle regulations for model years 2010 to 2016 came into force, establishing a common Canada-U.S. standard. In November 2012, Canada announced regulations to improve fuel efficiency and to reduce GHG emissions from passenger automobiles and light trucks for model years 2017 and beyond. As a result of our actions to date, 225 passenger vehicles and light trucks will emit about half as many GHGs as 2008 models.

[Marc Garneau, Liberal, Westmount—Ville-Marie, QC]

Mr. Chair, my next question deals with the fact that there are premiers in the country who are taking some initiatives. I speak about the Premier of Alberta, in particular, who is trying to work with the other provinces and has made trips to visit other premiers from other provinces and has advocated the idea of a Canadian national energy strategy, working collectively in the interests of Canada and the Council of the Federation.

I would like to ask the minister whether he believes in the concept of a national energy strategy. If he does, what action does he plan to take?

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, we of course support the collaborative efforts that our provincial colleagues are making with each other and within their own provinces on this file.

I had the opportunity to meet with many of the provincial premiers and many of my counterparts right across the country. Of course, we have an annual meeting every year. We had one in Kananaskis. We had one in Charlottetown, Prince Edward Island. There will be one in Yellowknife. We will continue to work with the provinces on a collaborative basis.

The Liberals—

[The Assistant Deputy Chair, Conservative, Bruce Stanton]

Order. We have time for one more short question. The hon. member for Westmount—Ville-Marie.

[Marc Garneau, Liberal, Westmount—Ville-Marie, QC]

Mr. Chair, the environment commissioner's spring report gave a scathing review of the lack of federal government oversight and management with the chemicals used in fracking.

Is there funding allocated in this year's estimates to rectify this inaction?

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, without question the government is moving in the right direction on this important issue. We place great emphasis on science. It is worth noting that in British Columbia there has been horizontal drilling and hydraulic fracking for almost 50 years. There is not a single instance of contamination of drinking water in that period of time.

However, we will continue to work with scientists to make sure that the best science is available to protect Canadians and protect the environment.

[The Assistant Deputy Chair, Conservative, Bruce Stanton]

That will complete the opening round. Now we will proceed into the first rotation.

Resuming debate, the hon. member for Vegreville—Wainwright.

[Leon Benoit, Conservative, Vegreville—Wainwright, AB]

Mr. Chair, I am delighted to participate in this debate here tonight. Canadians are very fortunate, as I think we all know, that our country is wealthy in natural resources, and we are the envy of many other countries around the world.

For generations natural resources have brought opportunity, jobs and growth to every region of this country, and today natural resources account for 15% of our gross domestic product and 50% of our exports. When we include the spinoff industries that provide goods and services to this sector, natural resources account for close to 20% of our GDP, nearly one-fifth of our economy.

Specifically, the energy, mining and forestry industries provide over $30 billion a year in revenue to governments, money that supports critical social programs such as health, education, pensions and old age security. That $30 billion is equal to half the spending by all governments together on hospitals last year. Therefore, those MPs across the way who oppose all natural resource development—and that would be the New Democrats—are slowing development, which means that they are limiting the amount of money available for health care and other social programs.

Other benefits include jobs. About 800,000 Canadians work directly in natural resources, while another 800,000 are employed in sectors that serve the natural resource industries. Added up, close to 1.6 million Canadians depend on natural resources for their jobs, making up 10% of all employment in Canada.

Importantly, these are good jobs. My wife Linda and I have five children, and all five of them work in the natural resource sector. All five of them have good jobs because of the success of the businesses in the sector. Not only that, they are all married, and all five of their spouses work in the natural resource sector and have good wages and good jobs. That is something we should all take pride in, instead of working against it, as some across the floor would do.

At the same time, over the next 10 years over 600 major natural resource projects will be under way across this country. That means about $650 billion in spending on major natural resource projects over the next 10 years. With these opportunities at hand, the Government of Canada is working to increase Canadian trade and investment to facilitate the expansion of Canada's natural resource infrastructure. Sadly, the New Democrats are working against this development as well. They oppose any pipeline that has ever been proposed. They oppose projects like that, and they probably will continue to do so. They laugh about it, but it is a serious issue.

Now I want to talk a bit about our responsible resource development.

To capitalize on these opportunities, our plan for responsible resource development will ensure Canada's regulatory regime is among the most efficient and competitive anywhere in the world. Responsible resource development has put in place more predictable and timely reviews with fixed end dates and will end unnecessary duplication with provincial regimes that meet federal requirements to deliver on our shared objective of one project, one review.

These changes will save time and money, providing the certainty that investors demand. In fact, the reality is that with this accelerated and streamlined process, if a project is given the “no” answer and a company is told that it cannot go ahead, it would much rather that happen after a two-year period than after the eight years that it often takes now for some of the larger projects. Even if the answer is no, it is a lot easier for a company to take if it has invested less time and money in the project.

However, our approach is not just about developing resources efficiently; it is about developing them responsibly. For this reason, our government is committed to protecting the environment. Simply put, we will not approve projects unless they can be done safely.

It is not a question of either developing our natural resources or protecting the environment; we can do both and we must do both. Responsible resource development will ensure stronger environmental protection by increasing our focus on major projects with the most potential for significant environmental impacts on areas of federal jurisdiction and through the introduction of new measures to strengthen compliance and enforcement, including tough new fines for companies that break environmental safety laws.

The Government of Canada has also taken action to strengthen pipeline safety as a part of our plan for responsible resource development. For example, budget 2012 provided the National Energy Board with $13.5 million more to increase the number of annual inspections on oil and gas pipelines by 50%. That would increase the number of inspections by 50%, from 100 to 150, to improve pipeline safety right across this country.

Further, the government is doubling, from three to six, the number of comprehensive annual audits of oil and gas pipelines to identify potential safety issues before they occur.

On March 18, 2013, we also announced a comprehensive set of measures to ensure we have in place a world-class marine safety system, including a tanker safety expert panel to review Canada's spill response requirements, a review of the liability and compensation regime to ensure the polluter pays for all the costs of cleanup, scientific research on marine pollution risks, the creation of an incident command structure to strengthen emergency response oversight and new investments in navigational aids, inspections, surveillance and monitoring.

Our goal is to prevent incidents from happening, to strengthen our response capacity in the unlikely event that an incident does occur and to ensure that Canadian taxpayers are not left on the hook for the cost of the cleanup.

Responsible resource development also includes a commitment to ensuring more meaningful and consistent consultation with aboriginal peoples and exploring new economic partnerships with aboriginal groups.

The government also recently announced the appointment of a special federal representative to engage aboriginal communities on aboriginal opportunities related to proposed west coast energy infrastructure, such as oil and gas pipelines and marine terminals.

These efforts will help identify opportunities to facilitate greater aboriginal participation in resource development as well as in our ongoing efforts to strengthen environmental protection.

Quite frankly, we have already seen that development and that engagement of aboriginal people. In the oil sands we have seen companies that are led by aboriginal people and owned by aboriginal people. This model can certainly be expanded.

Just recently—in fact, yesterday—I came back from a meeting of the NATO Parliamentary Assembly. I chair one of the economic committees in that group. We are doing a study on unconventional gas and oil production. At those meetings, we get the message very clearly that Canada had better be as quick as it possibly can in developing liquid natural gas terminals or it will simply be done by other countries around the world.

The United States already has applied for export permits for natural gas. Australia will very soon become the largest producer and exporter of natural gas in the world. The competition is there. We cannot just assume that in Canada we can take our time to develop these liquid natural gas exports and that the markets will be there for us. The reality is that with the cost of the infrastructure required to develop an LNG project, well over $10 billion, long-term contracts and investment from the country buying the gas are going to be involved. Off the west coast, we could expect China to be one of those, so it is important that we move ahead at the fastest pace that we possibly can.

In closing, I would just like to say that we have done one of the most beneficial things that governments have done in the last many years, probably since the free trade agreement. In putting in place this responsible resource development program, which is a comprehensive program, we have done an awful lot that will allow natural resource industries to move ahead in the future.

I am looking forward to that happening.

[The Assistant Deputy Chair, Conservative, Bruce Stanton]

Questions and comments.

[Leon Benoit, Conservative, Vegreville—Wainwright, AB]

Mr. Chair, I will go straight into questions. It is a format that happens every now and again, but not all that often around here.

We know that resource development is crucial to our success as a country. I think we all know that, at least on this side of the House. As an Albertan, I can see these benefits in my riding. They are widespread. I talked about my five children and their spouses. This is what keeps them going. This is what makes their families do quite well, frankly.

Last year, our government implemented our responsible resource development plan that recognized the balance between resource development and environmental protection. How do we ensure that we continue to benefit from resource development while ensuring that the environment is well protected because Canadians expect that of us?

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, I would like to thank the hon. member for Vegreville—Wainwright for his hard work as chair of our natural resource committee.

As he knows, our plan for responsible resource development would ensure Canada's regulatory regime is among the most efficient and competitive in the world. Responsible resource development would ensure stronger environmental protection by increasing our focus on major projects with the most potential for significant environmental effects, introducing tough new fines for companies that break our environmental laws, and advancing new measures to ensure world-class pipeline and marine safety regimes.

Our plan for responsible resource development would achieve the balance needed to unleash the potential of Canada's resource sector to create jobs and economic prosperity, while ensuring strong environmental protection and enhanced consultation with aboriginal communities.

[Leon Benoit, Conservative, Vegreville—Wainwright, AB]

Mr. Chair, we have been talking about our responsible resource development program that would put more onus on companies to be much more careful in the way they operate in the natural resource sectors, that would put a lot more onus on them when it comes to the environmental process, to get approval.

With this extra responsibility on companies, I would like to ask the minister whether he believes this process, which in fact would just cut down the timeline for approval or rejection of a project, would actually push companies away from investing in Canada or whether it would encourage more companies to invest in Canada and I would like him to give the reasons for his answer.

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, the NDP policy chaos is a little like looking at a train wreck. The leader of the NDP says that the oil sands are not beneficial for Canada. In fact, he said it is a definition of a Dutch disease. He also thinks that it is a curse.

Then he goes to Alberta and says, “We want to be a partner for the development of our resources”.

Then he goes to Washington and has a meeting with Nancy Pelosi, who says that “Canadians don't want to see the pipeline in their own country”.

After the meeting, he sends his deputy leader to Washington, who then says “We're trying to present a different face of Canada on this”.

We know what that difference face is. It is anti-jobs. It is anti-development. It is anti-trade. The fact is, the NDP cannot be trusted to develop Canada's economy.

Mr. Chair, I would like to take a few minutes to talk about the oil sands, which constitute the third largest oil reserves in the world, create jobs and stimulate economic growth across Canada and in all sectors of the Canadian economy. The oil sands development is expected to support an average of 630,000 jobs a year across Canada between 2011 and 2035. An estimated $2 billion will be injected into the economy—

[The Assistant Deputy Chair, Conservative, Bruce Stanton]

Order. That will conclude the time allocated in this particular round. We will go to resuming debate. The hon. member for Vaudreuil-Soulanges.

[Jamie Nicholls, NDP, Vaudreuil—Soulanges, QC]

Mr. Chair, I will be using my full 15 minutes to ask questions.

Can the minister tell me how many new resource development projects the National Energy Board was asked to review in 2012?

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, through the National Energy Board, our government has taken action to prevent pipeline accidents and improve our ability to respond to any incidents that do occur. We increased the number of inspections of federally regulated pipelines by 50% and doubled the number of annual audits.

The NDP members refuse to even--

[The Assistant Deputy Chair, Conservative, Bruce Stanton]

Order. The short questions compel short responses. I appreciate that it does have to take some time to get that response in order, but we will try to keep the times as equal as we can on either side.