Mr. Speaker, I am pleased to speak this evening on Bill C-6, which represents amendments to the Yukon Quartz Mining Act of 1924 and the Yukon Placer Mining Act of 1906. Both pieces of legislation have not been substantively amended since the time of regional enactment.
I would like to preface my remarks by saying that Yukon, which has a geographic land mass the same size as Sweden and a population of 32,000, is undergoing a number of processes which have been referred to by other speakers this evening. One of them is the land claims and self-government process approved by the House last year. At the same time the resource activities are undergoing a lot of scrutiny in Yukon.
I am pleased to say that in this case mining does represent a very large proportion, about 30 per cent, of Yukon's economy. It has been a very significant part of the economy since the days of the gold rush and it continues to be today. In fact, mining activities in Yukon today are on the increase.
One of the challenges in a territory the size of Yukon, which has in many ways the characteristics of the last frontier, is how we preserve the environment, ensure the wilderness is preserved and enhanced, as wilderness tourism is a large part of our economy, and ensure mining activity can responsibly take place.
I have never believed the issue is mining versus environment. I believe we are able to come to a conclusion, an agreement, a balance between those two. We can have responsible mining activity and legitimate, realistic environmental regulations that do not undermine the industry and the environment. I think the process that took place to come to these amendments in Bill C-6 goes some way to achieving that.
As mentioned by the previous speaker, the whole issue of streamlining regulations in support of the mining industry is a very complex regulatory regime in Canada. In Yukon I address specifically a very complex regulatory machine for the mining industry. I had hoped these amendments would help substantively not to reduce regulation but to streamline it. This legislation does not meet that test. It does not significantly streamline the process, as we could do while not undermining the sector and not undermining environmental regulation.
The bill is intended to bring in Yukon mining legislation and particularly exploration. It is not that there is not any environmental regulation at the moment, but particularly in the exploration sector there has not been an environmental regime of any strength. This bill will bring much of the environmental regulation in conformity with other jurisdictions and federal legislation.
As other speakers have mentioned, the amendments are the result of a process which I would like to refer to because I think it is very important. It began in 1990. It was a process that involved stakeholders of the industry, the territorial government, the federal government, the department of fisheries, the Department of Indian and Northern Affairs, Yukon First Nations. A committee was established with an independent chair. That was particularly important in terms of the process because it meant that no one stakeholder, no one government department was in control of this. It truly was a body made up of all interested parties chaired by a person independent of any one group. Much of the success of this process must be given to the establishment of that form of independence and grassroots development.
It is not a process without problems. During the time this committee was established in 1990 the federal government changed, the territorial government changed and there were certain changes to federal legislation. For example, the waters act used to be the federal inland waters act. It became the Yukon Waters Act. All of these changes obviously brought about changes in the working of the committee.
Unfortunately the committee did not have staff resources dedicated specifically to that committee. There was a certain lack of ability to follow up and implement both consultation processes and other processes related to the technical aspects that had to be done by the various departments and stakeholders.
In general it was a good process, one that could really be looked at in other resource sectors. At the moment I am looking at this in terms of the forest resource sector in Yukon because it was an attempt to involve everyone and to come to some kind of made in Yukon solution which would address industry, environmental and public policy concerns in this sector.
It was also hoped that would streamline the process and it probably has not done a lot of that, but there is some integration of various processes, not probably going nearly as far as we should go in this area, but there is some of that.
The challenge was to find a consensus and a balance between industry and governmental and public views. It proved very difficult because of the many changes taking place at the time. There were governmental changes in jurisdiction of legislation and the land claims and self-government processes.
There is no legislation currently that requires the mitigation of environmental effects of mining activities on claims until the operator has applied for a licence from the Yukon Water Board. Up to that point there is no environmental requirement. This addresses the exploration stage and not necessarily the development and working stage.
At the point of applying for a licence to operate from the Yukon Water Board, the assessment processes under the Canadian Environmental Assessment Act take place, but it was clear provisions needed to be instituted for exploration in order to conform to general environmental principles.
This act attempts to address this. Mining activities are further regulated by other federal acts such as the Fisheries Act, the Yukon Waters Act and the Canadian Environmental Assessment Act.
Bill C-6 sets out four categories or classes as identified in the legislation related to exploration, class one, class two, class three and class four.
There is at the moment no legislation in place to regulate land use activities on mining claims during exploration. Each mining activity now, pursuant to this legislation, will come under one of the classes.
It is proposed that there will be a six month phase-in for the provisions on the Yukon Quartz Mining Act and a 12 month phase-in for amendments to the Placer Mining Act. That is why it is quite important. We have already missed this year's mining season, which is in full swing now. It is important that we try to deal thoughtfully but expeditiously with this legislation so that it can begin to be put in place for the coming months and mining season.
One of the things that is extremely important about this legislation, a very positive point, is there is provision for a two year review after implementation of this act. This is important because often when laws and regulations are made in Ottawa and even by the territory in operation they may not prove to attain the objectives intended. It is a very positive part of this act that the two year review period is incorporated to ensure the act is meeting the objectives for which it was intended.
In its present form Bill C-6 has the support from both the hard rock and placer mining industry, noting that this was intended to be a consensus. Last summer, as recently as two weeks ago and certainly for the nine years I have been member of Parliament I have attended many meetings. I visited many mines, both underground and placer. There is a real anxiety in the mining industry that regulations will become so onerous that especially the small operators will not be able to function.
The committee was extremely sensitive to this because in Yukon placer mining in particular is often a family run business. I often compare it to Saskatchewan family farms because that is really what it is like. One does have to be sensitive that in small operations regulations can be conformed with in a way that it is commensurate with ensuring that business can continue.
There was a lot of suspicion and concern. In the end, the consensus making process certainly produced no winners. People in the mining industry were not necessarily happy with some of the provisions and, as I will mention later, other participants had some real concerns as well.
Letters I have received indicate that members of the industry, including the Yukon Chamber of Mines and the Klondike Placer Miners Association, are totally in support of this legislation in its present form and would like to see it passed in its present form.
Other groups have some concerns. As legislators, as federal parliamentarians, it is important to listen to those concerns in the committee process. The Yukon Conservation Society, which was a member of the Yukon Mining Advisory Committee, has withdrawn its support for this legislation.
The Council for Yukon First Nations has some concerns on specific issues but also regarding the fact that there was some difficulty with a lack of resources in being able to fully do a consultation with all the 14 First Nations. In support of the department, DIAND has made a special effort to do that consultation with the First Nations, although there was a representative on the Yukon Mining Advisory Committee. These are real concerns about this process.
The Yukon Fish and Wildlife Management Board, established under the land claims agreement, also has some reservations. While I am generally supportive of the legislation and I would like to see it supported by the House and go to committee I believe those expressing these concerns have some valid points which we must seriously consider in committee. Some of the recommended amendments must be addressed by committee members.
I will briefly outline some of the concerns which will come before the committee. Perhaps one of the most consistent concerns is that related to class one activities. Class one activities do not require notification to the public, to the government in either case of quartz or placer mining. This is opposed to the other three classes, which do.
Mining activity can impact on sensitive wildlife habitats. I have a case now which is interesting. In the city of Whitehorse staking is taking place on a greenbelt which is basically a park in a residential area. This is occurring three feet from people's backyards.
These greenbelts were established in a densely populated area to represent a buffer area. This is of considerable concern to homeowners, although it is perfectly legal under these acts and that would not necessarily be changed by Bill C-6. Members of the House might think about how they would react if they looked out in their backyards and someone was slashing trees and putting up stakes for a mining claim.
This can be resolved because under the act it is possible for the city of Whitehorse to make requests to the federal government to withdraw these lands from staking. The city has been doing this, and I am in support of this. It is one of those things that obviously strikes people as the kind of challenge that occurs with regard to mining. It is related to the second issue and concern raised by several groups, which is in many ways the same issue, free entry.
In other words, it is quite legitimate under the law to go into any area and stake, as in the above example. Exploration can take place on any public land. Some groups make the point, which I think is a serious one, that the principle of free entry is incompatible with long term conservation of fish and wildlife habitat. If they do not have to do any kind of study, if anyone can go without first establishing whether it is a sensitive area, clearly there may be a real conflict about the free entry principle.
The Canadian Parks and Wilderness Society states that by having the free entry principle the ability of the government is limited to place terms and conditions on mining exploration in sensitive areas, an issue that does have to be considered by the committee. I am sure that the Canadian Parks and Wilderness Society will want to put its point of view before the committee.
A third issue mentioned by several groups is the requirement for security which must be posted by operators. Bill C-6 states that security can be requested where the risk of significant impacts are likely or where the operator has a poor track record. The amount of security, according to the bill, is limited by reasonable cost to perform the required mitigation of any damage that is caused by the mining activity.
The concern is really rooted in the experience of the past. I agree with my colleagues who have said that the mining industry's reaction and the Mining Association of Canada are very strong in their support for environmental regulation. In some ways we are dealing with concerns about what has happened in the past, although I have to say that in my very recent experience I have seen situations where mining companies have left or gone bankrupt and the taxpayer has been left with the bill for clean-up. The point that various groups are trying to make is that this should not be the responsibility of the taxpayer but should be the responsibility of the industry.
An example of that right now is in an area near Carcross, Yukon where there was a mine. It was discovered a couple of years ago that arsenic was leaking into the water, into the land, into the berries and into all of the flora around that area and affecting the animals. The owners, Venus Mines, have long since disappeared. It is estimated that the cost to the taxpayer of the clean-up will be minimally $800,000. This is a relatively small mine site so one can appreciate the concern that is expressed here about the discretion of the security and whether there might not be a better requirement for security to be placed.
Such impacts of mining should be, as the Canadian Parks and Wilderness Society states, a cost of doing business and not an infinite liability to the taxpayer.
Therefore, the issue of posted security must be reviewed under Bill C-6. I agree that we do not want to make extensive amendments to this bill. It is a result of a consensus process. At the same time there are substantive issues that must be thoroughly reviewed, heard and considered by the committee.
In summary, the general principles of this bill are supportable. The process had some flaws but in general it was a positive attempt to reach a consensus on a very contentious issue. I would say that all participants and, in particular, the chair, must be commended for their efforts and various governments, both the previous and the current one, for their support of this process.
It is recognized by all participants that there were no clear winners in this, that everyone had to give up something. I suppose that is a model we might look at in Canada and as usual it seems to me the Yukon is setting a good model for the rest of Canada.
I would interject in summary one cautionary note. This legislation will only be effective if the Government of Canada is prepared to put in place the resources to enforce the legislation. I am very concerned that with federal cutbacks we will not have those resources. I hope the government will make a clear commitment that there will be sufficient resources for enforcement of the legislation. I must say that if there are not, it will simply increase in the public the suspicion of government making laws which it either cannot enforce or does not intend to enforce.
On that cautionary note I would urge the government to consider this. The House has a responsibility to carefully consider the views of all interested parties. I urge a careful review by the committee of
the points I have raised and I urge passage at second reading so we can get to the discussion of these issues.