Bill C-15 (Historical)

Donkin Coal Block Development Opportunity Act

An Act respecting the exploitation of the Donkin coal block and employment in or in connection with the operation of a mine that is wholly or partly at the Donkin coal block, and to make a consequential amendment to the Canada--Nova Scotia Offshore Petroleum Resources Accord Implementation Act

This enactment provides a legal regime to facilitate the exploitation of the Donkin coal block and to regulate employment in or in connection with the operation of any mine that is wholly or partly at the Donkin coal block. It gives the Governor in Council the authority to incorporate Nova Scotia laws into federal law by regulation, and gives Nova Scotia the power to enforce those laws. It further governs the royalties from the exploitation of the portion of the Donkin coal block in frontier lands, including providing for payment of the amount of the royalties to Nova Scotia after the royalties have been paid to the Receiver General. It also makes a consequential amendment to the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act.

Donkin Coal Block Development Opportunity Act

[Jay Hill, Conservative, Prince George—Peace River, BC]

moved that Bill C-15, An Act respecting the exploitation of the Donkin coal block and employment in or in connection with the operation of a mine that is wholly or partly at the Donkin coal block, and to make a consequential amendment to the Canada--Nova Scotia Offshore Petroleum Resources Accord Implementation Act, be read the second time and referred to a committee.

[Michael Chong, Conservative, Wellington—Halton Hills, ON]

Mr. Speaker, I am pleased to have this opportunity to speak in support of Bill C-15.

As the minister mentioned, the bill would facilitate provincial management of the Donkin mine and provide a clear regulatory regime to government its development.

Bill C-15 presents real opportunities, not only for the people of Cape Breton but also for Canada. The passage of the bill has the real potential to usher in a new era for mining in Cape Breton and to continue the region's long history with this traditional industry.

Our government is standing up for workers and communities that rely on traditional industries. We recognize the vital role that the mining sector plays to ensure Canadian prosperity.

There is a strong mining presence in Canada from coast to coast and as far north as one can see. Canada is one of the largest mining nations in the world, producing over 60 minerals and metals. We are a world leader in the production of mining products, such as potash, uranium, aluminum and nickel. Canada ranks third in global production of diamonds in terms of value. Mining and mineral processing contributed some $40 billion to Canada's gross domestic product in 2006.

Twenty-five coal mines were in operation in Canada at the end of 2006. Most large scale coal mines are located in western Canada, in New Brunswick and in Nova Scotia.

Of all our fossil fuels, we know that coal produces the greatest amount of carbon dioxide, a greenhouse gas that contributes heavily to global warming. As a result, we are more conscious than ever that we need to develop clean alternatives and clean up fossil fuels.

In the area of renewable energy, we are investing $1.5 billion in wind, small hydro, tidal power, solar, biomass and geothermal energy.

As for coal, the energy source that Bill C-15 is related to, clean coal technologies are being developed in order to significantly lower the emissions from coal burning power plants and to reduce the environmental side effects of the coal industry as a whole.

The rapid growth of clean coal technologies is of the greatest interest to the Government of Canada. To that end, we have launched the ecoenergy technology initiative, a $230 million investment in the research, development and demonstration of clean energy technologies. A major component of this initiative is the development of the science and technology that will make our conventional energy sources cleaner.

The very first investment this government made under this initiative was in clean technology. Earlier this month, my colleague, the Minister of Natural Resources, announced an $11 million investment in federal funding for a project that will make Canada a world leader in clean coal technology. This project will be a joint undertaking by the Government of Canada and industry. It will support research in developing a coal gasification power plant that will turn sub-bituminous coal into synthetic gas and hydrogen.

It is a significant process with important implications. By converting coal into synthetic gas and by capturing and sequestering the resulting carbon dioxide, we can create electricity that is cleaner than that produced by the best natural gas facility operating today.

Through Natural Resources Canada's CANMET Energy Technology Centre, the government has been investing in the development of viable technology for near zero emission clean fossil fuel such as oxyfuel combustion. This centre has also developed a clean coal technology road map which outlines a vision for the development and implementation of clean coal technologies.

This technology will thus not only help us to reduce emissions of greenhouse gases, but also reduce air pollution. It will reduce greenhouse emissions to almost zero. Consequently, this clean coal technology will help Canada and countries around the globe educe greenhouse gases and pollution.

We must recognize that coal will continue to play an important role in our future and in the world's future. At the world level, coal accounts for about 25% of energy consumption and is used to produce 40% of the world's electricity supply. It will continue to be an important component of the energy mix in the foreseeable future. Therefore, we must do everything we can to clean up this resource and ensure it is used in a way that minimizes greenhouse gas emissions and pollution.

The history of coal mining in Cape Breton is well-known to members of this House and to all Canadians. Most of this mining was done under the sea, with the greatest subsea extension out from shore being almost four miles. It is very similar to some of the mining that I know took place in Nanaimo and on Vancouver Island which was also underneath the seabed.

The Donkin block is part of what is known as the Sydney coalfield, a resource that has made an enormous contribution to the Canadian economy. Total coal production for Nova Scotia between 1863 and the year 2000 was some 455 million tonnes, of which 72% was produced from the Sydney coalfield. This coalfield contains the largest coal resource in eastern Canada with 12 major seams. Donkin represents the most eastern extension of the Sydney coalfield that is accessible from the north coast of Cape Breton. It is the last primary block of unmined coal that can be mined from the coast.

The developer of the Donkin mine, as selected by the Nova Scotia government, is the Xstrata Donkin Mine Development Alliance. It expects to complete a feasibility study next year and production could start shortly thereafter. The coal that will be produced by the Donkin coal block development is a most valuable resource and one that will contribute to the economic well-being of Cape Bretoners and Canadians as a whole.

For the Cape Breton region, the Donkin mine will mean an additional 275 jobs directly, and indirectly, the project could generate another 700 jobs. Nationally, about 370,000 Canadians are employed in the mining and mineral processing industry. Canada's 1,200-plus exploration and mining companies operate in over 100 countries globally and hold over 8,700 mineral projects around the world, of which almost 50% are located outside of Canada.

A major challenge the mining sector faces in Canada is that our current regulatory regime is not keeping pace. Companies have expressed, time and time again, a complete frustration with our regulatory system, how it is too slow, too unpredictable and designed without efficiency.

Our government has recognized that we need to improve our system to adequately respond to our environmental priorities, which is why we have invested $150 million in increasing capacity in federal departments and in establishing a major projects management office. This new office will ensure that regulatory reviews are carried out with greater efficiency, transparency and coordination across departments.

Mr. Speaker, I would like to split my time with the member for Cypress Hills—Grasslands, if that is so amenable to you.

The benefits of mining in Canada are clear: $40 billion to our gross domestic product and 370,000 Canadian employed. Clear, too, is the benefit of facilitating a return of the mining industry to Cape Breton, a community that wants this development and a province that wants to move ahead.

Therefore, I call upon all my colleagues, both on this side of the House and on the opposite side, to support Bill C-15 and to move this project forward.

[The Deputy Speaker, NDP, Bill Blaikie]

I should bring to the attention of the hon. member that because this is the first round there is a requirement for unanimous consent if the hon. member wants to split his time. I will consider that the hon. member has sought the unanimous consent of the House to split his time with the hon. member for Cypress Hills—Grasslands. Is there unanimous consent?

[Some hon. members]

Agreed.

[The Deputy Speaker, NDP, Bill Blaikie]

Everybody is in an agreeable mood today. We hope that lasts.

Questions and comments.

The hon. member for Cypress Hills--Grasslands.

[David Anderson, Conservative, Parliamentary Secretary to the Minister of Natural Resources and for the Canadian Wheat Board]

Mr. Speaker, we appreciate the spirit of cooperation that exists in the House. I am sure that is due to you being in the chair.

I am pleased today to introduce Bill C-15, An Act respecting the exploitation of the Donkin coal block. This bill demonstrates once again that our government is committed to building a stronger, safer and better Canada.

We are committed to encouraging economic development in all regions of this country and to create job opportunities for all Canadians, regardless of where they live. For the people of Cape Breton, Bill C-15 would help to create that opportunity for economic development.

I will begin by explaining the resource, the Donkin coal block, that the legislation deals with. The Donkin coal block is a large, economically promising coal vein located off Cape Breton Island. In fact, it is the last major undeveloped subsea coal resource in the Cape Breton region.

It has been described as the largest undeveloped coal resource in all of eastern Canada. Both the province and the federal government have obligations regulating the development of the Donkin coal resource block, including labour, health and safety matters.

The immediate objectives of the bill are to facilitate the provincial management of the mine by Nova Scotia and to provide a clear regulatory regime to govern its development. This legislation would also allow both levels of government to retain their current positions with respect to regulatory jurisdiction.

Beyond these immediate objectives, however, a larger purpose is being served. The legislation would provide Cape Breton with an opportunity to advance its own economic development. It does so by facilitating a return to Cape Breton's time honoured industrial tradition of mining coal.

Some very clear benefits will follow the development of the Donkin mine. To begin with, mining will once again bring good jobs to this traditional mining region of Canada. The development of the Donkin mine is forecast to create 275 direct and up to 700 indirect jobs.

Development of the mine could also mean hundreds of millions of dollars to the provincial economy in salaries, equipment and goods and services. Three hundred million dollars is expected to be spent in start-up investments alone and coal royalties will be in the range of up to $5 million annually.

Finally, the development of the Donkin will help stabilize the tax base of this community for many years. If it gets to the development stage, we expect to see at least 10 years of operations.

Coal was first mined in Cape Breton 322 years ago. The island was settled because of coal and coal mining was its livelihood for hundreds of years. Most of this mining was done under the bottom of the sea with the greatest subsea extension out from shore being almost four miles.

In the mid-1980s, the Cape Breton Development Corporation, DEVCO, spent $80 million to dig two exploratory tunnels from the shore out to the face of the Donkin block. However, the mine was never brought into production. The tunnels were sealed and flooded to avoid pumping costs. DEVCO closed its last Cape Breton mine in 2001.

Since the closure of the last mine on Cape Breton, energy prices, including coal prices, have dramatically increased. This and newer technology, such as clean coal technology and carbon capture and storage, have renewed interest in coal as an energy source and renewed interest in the Donkin project.

There are numerous advantages to the Donkin site. For example, the Donkin block is located in a proven mining district with a long history of safe and successful extraction. The block appears to have sufficient size, potential and access to domestic and international markets for industry to stand on its own financially. The passage of Bill C-15 will help to determine whether this is so. Nearby there is a local workforce with extensive underground coal mining experience, a workforce that welcomes the return of coal mining jobs.

The block is near a railway connection and two deepwater ports equipped to export coal to an international market.

Finally, the Donkin site has a valuable asset in the two exploratory tunnels which are already driven to the face.

Nova Scotia announced a call for proposals to develop the Donkin coal block in 2004. A year later, a company by the name of Xstrata was announced as the winning bidder. The Xstrata Donkin Coal Mine Development Alliance began to evaluate the potential of bringing the Donkin mine back into production. It was at this point at which a considerable challenge arose. It was clear that if Xstrata or any company decided to proceed with development there would be confusion and uncertainty over regulatory jurisdiction because both the Governments of Canada and Nova Scotia have ownership claims to the offshore.

It was also clear that Xstrata Donkin Coal Development Alliance would soon face major decisions on whether to proceed with development or not. Because regulatory matters affect cost and planning, Xstrata was in need of certainty over the applicable regulatory regime before its decision could be properly made.

Both the governments of Canada and Nova Scotia shared an interest, as they do today, in seeing further economic opportunity in Cape Breton. Therefore, both governments sat down together to find a solution that would provide Xstrata with a clear regulatory regime that would permit development to proceed, if that decision was made, and to do all this without jeopardizing either government's claim to jurisdiction.

The bill before us today is that solution. Essentially the bill permits existing provincial laws regarding matters such as labour standards, labour relations, resource development and occupational health and safety to be incorporated into federal law. The administration of these laws is then delegated to the province of Nova Scotia. This will permit a clear and single regulatory system to be established for Donkin Coal Development. It will also permit both levels of government to retain their current positions with respect to regulatory jurisdiction while facilitating the economic development of Cape Breton Island. This is a solution that works for everyone.

The bill also provides that all Donkin coal and coal bed methane royalties will be collected by Nova Scotia and remitted to the Receiver General for Canada. A remittance in that same amount will then be turned back over to the province. In other words, the province will receive the benefit of all royalties if the mine goes ahead.

The components of this bill may appear complex, but their intent is quite simple. The bill provides Cape Breton, and Nova Scotia, with greater opportunity for economic development. It permits the development of the Donkin mine to proceed under an appropriately designed regulatory regime and it facilitates provincial management of the endeavour.

It is important to emphasize that Bill C-15 does not guarantee the development of the Donkin mine. It guarantees that the decision to proceed or not to proceed will be free from any uncertainty regarding regulatory matters.

I would emphasize that Bill C-15 is an outstanding example of cooperation. It is an example of cooperation between governments to fulfill a common interest in seeing the development of the Donkin mine.

By introducing this legislation, the government is demonstrating its commitment to the economic development of the Cape Breton community and to Nova Scotia as a whole.

Bill C-15 applies directly to the development of the Donkin mine, but our government has also taken national initiatives to support the mining sector. Since coming to office 21 months ago, our government has taken consistent action to reduce the tax burden on Canadian businesses, including those in the mining sector.

Our mining sector presents extraordinary opportunities across Canada and our government will help seize those opportunities by providing a single window for major projects approval. The major projects management office provides a single point of entry into the federal government for the approval of proposed projects. This is going to improve our ability to apply our world class environmental standards while increasing regulatory efficiency.

Before I finish, I would like to acknowledge the hard work of my colleagues, the hon. member for Central Nova and the hon. member for South Shore—St. Margaret's and the support they have given in moving this file forward.

I would now ask all hon. members to support the opportunity that the legislation represents.

[Alan Tonks, Liberal, York South—Weston, ON]

Mr. Speaker, under the terms of this bill, the federal government is transferring responsibility with respect to the administration of occupational health and safety to the province of Nova Scotia.

We are all reminded of the terrible tragedy and the events that occurred around the Westray mine disaster. Is the member and the government totally satisfied that under the terms and conditions and the process by which this transfer has taken place to the province of Nova Scotia, those provisions of the occupational health and safety act will be entrenched in the province? Is the federal government satisfied that the province will carry out the intent and spirit of the occupational health and safety legislation in order that that kind of tragedy would never occur again?

[David Anderson, Conservative, Cypress Hills—Grasslands, SK]

Mr. Speaker, there has been a lot of work done between the government of Nova Scotia and the federal government on exactly these issues.

There were a number of provincial acts and federal acts that were brought into agreement so that the provincial government could administer them. HRSD and labour program officials undertook a comparison of provincial and federal regulations with regard to coal mining regulations. The changes have been made to bring Nova Scotia's regulations into line with federal law so that they can be incorporated into federal law and then they will be applying that law.

We think that the due diligence has been done on these issues and that the regulatory system that is going to be in place is going to be a good one for the mine, for Nova Scotia and for the country of Canada as well.

[Rodger Cuzner, Liberal, Cape Breton—Canso, NS]

Mr. Speaker, I would like to thank my colleagues across the way from Cypress Hills--Grasslands and Wellington--Halton Hills for their comments on this legislation.

It is good to see this legislation finally come forward. Negotiations between the province and the federal government have been ongoing for a number of years. I think back to the last election and my Conservative opponent at the time said that the foot dragging on the part of the then Liberal government was going to negate a great opportunity to develop the Donkin mine site. He also said that when his party was elected as government, this issue would immediately come forward. Two years later, it is finally coming forward.

It is necessary that this take place. It is certainly what we were working toward back then. There were long, arduous and protracted negotiations between the two levels of government, but the legislation is here today, and it is a positive thing for the people of Cape Breton, for the people of Nova Scotia, and for the people of Canada as a whole.

As my colleagues have indicated through their comments, the history of coal mining in Cape Breton dates back over 300 years. Coal was discovered in Cow Bay, which is now Port Morien. That coal was shipped to Louisbourg and provided heat for the Fortress of Louisbourg during the years of development.

Coal has been mined in Cape Breton for numerous years. It fired up the engines of our navy's boats in both world wars. It has contributed to industry in central and western Canada. Cape Breton coal has powered much of what Canada is as a country. We have a proud and rich tradition of coal mining in Cape Breton.

What we support in Cape Breton is submarine mining and underground mining. There is a great deal of opposition and concern around surface mining. We cannot confuse the two. We want to make that clear. The legislation before us today is about underground mining.

Work started on the Donkin project back in 1970. I will share quickly a story with my colleagues across the way. As a young university student during a summer in the late 1970s, I and three friends took up a contract to help clear the land on the Donkin site. We were paid a certain amount for every acre that we cleared and the pulp that we felled and the brush that we burned. It was during that summer that I realized I was not going to make my living as a woodsman in the woods of Cape Breton. However, it was a great opportunity.

Shortly thereafter, because of the situation with OPEC, Devco pursued the Donkin opportunity. It drilled two tunnels three and a half miles out in the ocean and about 200 metres down. Things changed and the price of coal altered quite a bit on the world market, and the project was shelved and the mines were flooded. Currently, the world price for coal is at an all-time high. It is now about $95 a tonne.

We on this side of the House are very committed to long term, sustainable energy opportunities. Cape Breton is seeing an increase in sustainable energy initiatives, such as Cape Breton Power's incorporating windmills in many places where coal mines used to exist. They are making a contribution to the overall energy package for the people of Nova Scotia, but there still remains a high demand for energy. As has been indicated, 40% of the world's energy still comes from fossil fuels. We cannot be intimidated by that and dismiss coal as a source of energy.

In some of the investments that have been made, it is important that we as the nation of Canada get out in front on some of this clean coal technology. We have certainly done that to date and continue to do it. I had the great opportunity to see the NRCan facility in Bells Corners and some of the work it has undertaken with clean coal technology. It is truly impressive.

We have seen the demand outside our borders, such as in China, and that is only going to increase.

It should be Canadian technology that leads the way in solving the CO₂ problems. We have seen the investment that has been made at the CANMET site in CO₂ sequestration by capturing and sequestering the CO₂ in the ground. The technology has come so far so fast. As a nation we have to continue to invest in that type of technology so that we can continue to decrease our carbon footprint.

In essence, the province of Nova Scotia through this legislation will be the regulator. There will be federal regulations for the site, but they will be applied by the province of Nova Scotia. That will look at resource development, labour standards, occupational health and labour issues. All of those things will be administered by the province of Nova Scotia under this legislation.

As had been mentioned by the previous speaker, Xstrata is currently developing the Donkin site. Xstrata is an international player in the minerals exploitation community. It has the fiscal and technical capabilities of taking on a project of this size. It is a very large, complex mining project under sea considering the dangers of undersea mining. It is the world's largest producer and exporter of thermal coal. It is one of the top five producers of coking and metallurgical coal.

Xstrata has 43,000 employees worldwide. It has operations in Australia, Germany, Norway and South Africa. It is a tremendous player in the coal market. It has an excellent record on health and safety and environmental issues. It is very excited about this Donkin project.

I had the opportunity to speak with Darren Nicholls, the project manager. He shared with me the fact that he could not see this project going any better. The company is very pleased with the way it has gone to date. The company is very supportive of this piece of legislation. It may want to tweak things a bit, which can be done within the regulations, but the company is supportive of this legislation.

It has done a good job since it has come to Cape Breton in getting involved in the community. I was very impressed with that. This past year I had the opportunity to go to Donkin. The Donkin development association just finished a project. It opened a passive park area adjacent to a school, Veterans Memorial Park. Xstrata played a fairly significant role. It worked with the councillor, Kevin Saccary, and a community group of volunteers and developed a park, very much supported by the community. Xstrata stood shoulder to shoulder with community members and helped deliver on this. That is an indication the company cares about the community and is willing to invest in it.

As I had said, the federal position was that federal laws were applicable in this situation and there was an obligation to enforce them. However, it is very pleased that the province of Nova Scotia, wanting to exploit this resource, is entering into a agreement that would address labour relations, labour standards and occupational health concerns.

As well, it has been indicated before that pieces of infrastructure are there now. Rail spurs are there now as well as a deepwater port. However, that comes to another part of what will be necessary with the opening of Donkin mine.

We have a very active port in Sydney, with a coal mixing area. Provincial Energy currently mixes coal at the Sydney harbour site. However, there is a dredging problem. We hope the government will see the merit and the importance, through the Atlantic gateway initiative it is putting forward, of dredging the Sydney harbour.

Currently there is about 45 feet of clearance. Right now it is shipping partial loads with some of its coal transfer. In order to take full boats, we hope the government will be able to invest in Sydney harbour, look at the dredging project put forward by the community and the harbour authority and assist with that. It is more of a bump in the midst of Sydney harbour, but it would go a great way in unlocking the full potential of that harbour.

This initiative would have tremendous benefits for the people of Cape Breton, in Glace Bay and broader areas. We have a rich coal mining tradition. A good friend of mine, Billy Delaney, said that Glace Bay was a child of industry and without it we would be an orphan.

We have come a long way, too. In the late 1990s our unemployment rate was on either side of 25%. Now we are currently down around 12% or 13%. There is still a fair amount of seasonal employment. A lot of guys working out west who are coming home and the money is coming back home. That is not the ideal situation. We still need that anchor industry. Our community understands fully that this is a tremendous opportunity, and we look forward to it. There will be 275 jobs. We know that jobs within the mining sector usually pay 3:1 or 4:1 in other job developments. Therefore, we think that will be a shot in the arm.

I know that some of those guys who are working out west now are looking forward to coming back and resuming mining careers. We have young people who are very interested in getting started in the mining industry. I know the industry will get 275 guys who will make that mine hum and it will be nothing but successful.

We anticipate in the order of $300 million in startup costs for an initiative of this size. As well, the coal royalties will be paid to the federal government and then they will be fully remitted back to the province. We anticipate approximately $5 million annually in coal royalties that will stem from the Donkin project.

Darren Nicholls and the Xstrata people are extremely excited about the legislation coming forward and this opportunity.

I had the opportunity to speak with District 26 United Mine Workers president, Bobby Burchell, just recently. The union is pleased with this as well. It was consulted earlier on this project, back in April and May. No major concerns have been expressed, but the union believes it can address whatever the concerns might be, through the regulations.

Again, it is an important day for the people of Cape Breton—Canso. It is an important day for this broader community. We have been through a lot as a community. We are seeing our economy transition. Things are okay.

During the briefing, the comment was made that it would bring much needed jobs to an economically depressed area of the country, which was kind of interesting. We are past that now. I think the members of the House, who have been to Cape Breton, can see that. I have a colleague from Nova Scotia who can see that. We are not Mississauga or Kelowna yet, but things are going okay. However, this will be a tremendous shot in the arm as we continue. While this is a retooling of the economy, it is the old game coming back that will make a contribution.

Some of the estimates put forward today in the speeches have probably been somewhat conservative, that the mine might operate for 10 years. There is probably potential for even greater operation past 10 years, and some of them have been up to 25 years. They may be ambitious, but nonetheless, with the legislation there is very little we can find that would prove to be any problem whatsoever.

My colleague was asked a question about the Westray incident. I believe the province of Nova Scotia has learned a great deal through the Westray experience. Through consultations, the federal government has clearly outlined its expectations. The province of Nova Scotia will be required to and will administer those regulations to the best of its ability.

It is without reservation that I will work with my party to support the legislation to ensure it goes forward. We hope it will provide a tremendous opportunity for the people of Cape Breton.

[David Anderson, Conservative, Parliamentary Secretary to the Minister of Natural Resources and for the Canadian Wheat Board]

Mr. Speaker, as I mentioned before, the hon. member for Central Nova and the member for South Shore—St. Margaret's have worked hard on the bill. I know this has been important as well to the member for Cape Breton—Canso. I thank him and I appreciate the efforts he has put into informing his colleagues of the importance of the bill and getting them on side. We look forward to working with the other parties as well to pass the bill as quickly as possible.

Could the hon. member address the issue of the urgency to pass the legislation and maybe talk a bit about the importance of some of the coming deadlines for Xstrata, so people can understand it is important that the bill be passed as quickly as possible?

[Rodger Cuzner, Liberal, Cape Breton—Canso, NS]

Mr. Speaker, I know Xstrata has been patient as have the people who have worked on this file. It is always a concern. It was brought up that the project may fall apart if this were not in place. They are saying now that we should get this done and off the table so we know with what we are dealing. They say that the parameters should be set so as we go into this everybody will be on the same page.

The province of Nova Scotia is in the process of putting forward its legislation. It may be done on a parallel track.

I will do everything on this side of the House. I will work with my colleagues and hopefully we can fast track this. If so, everybody wins.

[Claude DeBellefeuille, Bloc, Beauharnois—Salaberry, QC]

Mr. Speaker, I would like to thank my colleague for his speech and his passion. It is clear that this issue is close to his heart, and his arguments were masterful. He seems pleased that Nova Scotia and the federal government have come to an agreement, made some compromises and harmonized their laws and regulations so that the mine can finally be operated.

I have a question for my colleague. The federal government has demonstrated its openness. Is my colleague prepared to support the Bloc Québécois when it asks the federal government to respect the Charter of the French Language, which means adapting the Official Languages Act and the Canada Labour Code in order to apply Quebec's Bill 101 so that all federal institutions and workers can work in Quebec's official language?

Given that Nova Scotia has benefited from the federal government's openness and flexibility, I would like to know whether the member thinks that the government will be open to respecting Quebec's Charter of the French Language within the Official Languages Act and the Canada Labour Code.

[Rodger Cuzner, Liberal, Cape Breton—Canso, NS]

Mr. Speaker, I agree that having the provincial and the federal governments come together for some kind of an agreement is somewhat monumental. In the period of time that it has taken we have to exhibit patience. I wish the Bloc all the best in seeing this through to fruition.

What I have commented on today is the fact that our opposition party will support the government on this legislation. We are very pleased that the federal government has worked with the province of Nova Scotia to see this through. We think it will provide a great opportunity for the people of our area. We think it will provide a safe and productive workplace for at least 250 people from my community. On this one, it is an example that there are those opportunities where the federal and provincial governments can work together.

In this case, we will support the government, and we applaud it.

[Claude DeBellefeuille, Bloc, Beauharnois—Salaberry, QC]

Mr. Speaker, I am pleased to speak to Bill C-15, An Act respecting the exploitation of the Donkin coal block and employment in or in connection with the operation of a mine that is wholly or partly at the Donkin coal block, and to make a consequential amendment to the Canada--Nova Scotia Offshore Petroleum Resources Accord Implementation Act.

I would like to begin by telling the House that the Bloc Québécois supports Bill C-15 in principle. My colleague from Nova Scotia can count on the Bloc's support. Members of the Standing Committee on Natural Resources will study this bill seriously and thoroughly.

The Bloc Québécois believes that the federal government should do more for regional economic development. It should stop undermining the efforts that provincial governments—particularly the Government of Quebec, since I am a member from Quebec—want to make by respecting the priorities set by the provinces.

For members of the Bloc Québécois, creating and maintaining jobs in the regions, as well as providing assistance to workers in difficulty, such as those in the forestry or fishing sectors, is just as important in Quebec as it is elsewhere. In our view, this Conservative government is washing its hands of the whole issue, by refusing to propose any support programs for older workers—we mean real income support for older workers—or change the employment insurance criteria, and by renouncing its earlier ideas concerning the creation of an independent employment insurance fund.

In short, all too often, the federal government listens to reason and develops legislation and policies to promote this regional development. Fortunately for Nova Scotia, that is what it is doing with the Donkin coal mine project.

Furthermore, the efforts of the elected representatives of that riding cannot be overlooked. According to my colleague, they fought to convince the government that enough time had been wasted and it was time to act. Thus, it has been a happy ending for Nova Scotia and it appears that everyone is finally happy with the agreement.

The Bloc Québécois' position is that, since Bill C-15 is the result of an agreement between the federal government and the Government of Nova Scotia and has to do with a specific case, that is, the Donkin coal mine, and since there are no direct repercussions for Quebec, the Bloc Québécois does not intend to oppose it. We will work hard in committee, as I was saying, to push the bill through as quickly as possible.

A word of caution, however: being in favour of the principle of the bill does not mean that we have absolutely no problem with the spirit of the bill. I alluded to this a little earlier when I asked my question. We deplore the fact that the federal government is prepared to incorporate provincial legislation by reference when it comes to creating 275 jobs, but that it is not willing to do so, far from it, when it is a question of the language of work, for instance. I will come back to this.

Lastly, with its trademark rigour and hard work, the Bloc Québécois will examine the provisions of Bill C-15 that raise questions. This is the case, for instance, when it comes to the sharing of royalties and the exclusion of royalties on coal-bed methane from the Canada-Nova Scotia offshore petroleum resources accord.

In the matter of offshore revenues, this Conservative government is acting against the interests of Quebec because the equalization formula does not take into account all revenue from natural resources and therefore penalizes Quebeckers.

For the time being, I would prefer to focus on the main objective of Bill C-15. I would like to point out, and it is truly important to say so, that this bill is the result of an agreement between the federal government and the Government of Nova Scotia, which seeks primarily to settle a jurisdictional matter. These two governments both claim to have jurisdiction over the Donkin coal block. Many discussions have taken place to establish who has jurisdiction over the management and exploitation of the Donkin coal block.

To settle this issue, Nova Scotia and the federal government arrived at an agreement: establish a single set of regulations governing resource development and labour issues, including industrial relations, occupational health and safety and labour standards

The regime proposed by this bill may be divided into three parts.

It provides a legal regime to facilitate the exploitation of the Donkin coal block. It gives the Governor in Council the authority to incorporate Nova Scotia laws into federal law by regulation, and gives Nova Scotia the power to enforce those laws.

Bill C-15 further governs the royalties from the exploitation of the Donkin coal block, through a system similar to the existing one for petroleum royalties.

It also amends the Canada—Nova Scotia Offshore Petroleum Resources Accord Implementation Act to exclude coal bed methane associated with a coal mine.

I would like to point out to this House that coal bed methane is the natural gas found in most coal seams. It is considered to be the cleanest burning fossil fuel and one of the purest forms of natural gas, often so pure that it only requires slight processing and can be delivered directly by pipelines.

The first of these three items, the legal reference regime, is dealt with in clauses 13 and 15, which are the core of Bill C-15.

Clause 13 states that the Governor in Council may make regulations excluding from the application of the Canada Labour Code any employment in connection with the operation of the Donkin coal block.

Furthermore, it allows the Governor in Council to make regulations to incorporate by reference any act of the Province of Nova Scotia to make it applicable to the Donkin mine workers.

Clause 15 states that an authority designated by the province, and not federal institutions, is responsible for applying the regulations incorporated by reference.

Bill C-15 allows the federal government to exempt workers of the Donkin mine from its own legislation in favour of Nova Scotia's legislation.

For the second point, clauses 9 to 12 of Bill C-15 address the issue of royalties specifically. They establish a system similar to the one that already exists for oil royalties, namely that the royalties on coal and coal bed methane are to be collected by the Receiver General of Canada and a portion will be remitted to the province in accordance with the terms of an agreement to be reached between them.

Third, the purpose of clause 16 is to amend the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act in order to exclude coal bed methane associated with the development or operation of a coal mine from the definition of natural gas and therefore exclude it from the accord.

Let us now come back to the offshore revenues I was talking about earlier. Budget 2007 announced an equalization reform that unduly favoured the provinces receiving revenues from natural resources and blatantly ignored some of Quebec's basic requests.

What is more, on October 10, 2007, the Prime Minister of Canada and the Premier of Nova Scotia announced an agreement between that province and the federal government on equalization reform.

The federal government announced it would relax the application standards of the equalization formula. Budget 2007 allowed Nova Scotia to choose between two equalization formulas. It could either use the old formula and continue to receive 100% compensation for offshore development, or it could choose the new equalization formula whereby basic equalization payments increase but compensation for offshore development decreases. Nova Scotia could choose to stick with the old calculation method, but once it used the new equalization calculation it could no longer go back to the old formula.

The announcement on October 10 changed all that. Nova Scotia can now choose the formula that is most advantageous to it at the beginning of each fiscal year, until the expiry of the Atlantic accords in 2020.

In order to enjoy the benefits of future offshore projects, Nova Scotia had chosen to retain the old equalization formula. If it had adopted the new formula, it would have received additional equalization payments estimated by the provincial government at $289 million for 2008-09. The new formula will therefore let Nova Scotia keep additional amounts calculated under the new formula and it can return to the old formula if the development of new offshore platforms makes the old formula more advantageous.

The reason that this is to Nova Scotia’s benefit is that, in our opinion, it is still being done at Quebec’s expense: the equalization formula still does not take all natural resource revenues into account.

So that formula does not reflect what Quebec is calling for. It contains loopholes that favour the fossil fuel producing provinces by allowing them to exempt natural resource revenues from the equalization formula.

Quebec is calling for the equalization formula to be reformed to reflect a 10-province standard, 100% of natural resource revenues and the real value of property taxes. That is the only formula that will result in equalization achieving its objective, which is to provide the receiving provinces with a per capita fiscal capacity equivalent to the Canadian average. It seems that the Conservative government is not worried about that, though.

Let us come back to the language of work. It must be noted that when it comes to creating 275 jobs, something we applaud, the federal government is prepared to incorporate the laws of Nova Scotia by reference. But the government does not want to consider incorporating compliance with the language of work provisions of Quebec’s Bill 101 by reference.

And yet this is the government that boasts about recognizing that Quebeckers form a nation. To date, that recognition has not been supported by any actions or consequences, although what it means is that the House of Commons recognizes the attributes of the Quebec nation, and in particular its language and culture, by definition.

In fact, when the House of Commons recognized the Quebec nation last fall, the Bloc Québécois emphatically pointed out that that recognition had to have consequences, that there could not simply be purely symbolic recognition.

The official language of Quebec is French, everywhere in Quebec, except in matters relating to the federal government, for which there are two official languages.

That is the first concrete action that must be taken: to recognize that in fact Quebeckers form a francophone nation in America. If the Canadian parties are consistent in that recognition, they will have to understand that the Quebec nation and the French language are inseparably connected. Recognizing one means recognizing the other.

The Quebec nation has developed a tool for ensuring that French is the common public language: the Charter of the French Language or Bill 101. We often forget, though, that insofar as Ottawa is concerned, Bill 101 does not exist. As a result, areas under federal jurisdiction are exempted, including within Quebec. For example, banks, telecommunication firms, interprovincial transportation companies such as CN and CP, ports and airports are exempt from Bill 101.

The Bloc Québécois wants the federal government, therefore, to recognize and abide by the Charter of the French Language in Quebec in the Official Languages Act and comply with the spirit of the Charter in regard to the language of signage and of work in related legislation.

Contrary to what the Conservatives have suggested, the Bloc Québécois is obviously not asking the federal government to interfere in linguistic issues in Quebec. All we want is for the federal government to comply with the Charter of the French Language. The Official Languages Act and the Canada Labour Code are both federal.

The Canada Labour Code already requires the federal government to adjust to provincial legislation when setting minimum wages. In Bill C-15, the Conservative government agrees to exempt workers from its legislation in deference to the laws of Nova Scotia. If it is possible to adjust the federal legislation in both these cases, how can they justify refusing to adjust the federal legislation on language?

Federal or federally regulated companies are not affected by the Charter of the French Language, particularly insofar as the language of work is concerned. Some of these companies choose to abide by it, but it is all entirely voluntary.

The Bloc Québécois wants the Canada Labour Code to contain a provision, therefore, that “any federal work, undertaking or business carrying on activities in Quebec is subject to the requirements of the Charter of the French Language”. This would comply with the request voiced in 2001 in the Larose report.

This amendment would eliminate the legal void that enables federal companies to flout the Charter of the French Language when it comes to the language of work. It is important, though, to note that many federal companies decide on their own to abide by the francization programs of the Office de la langue française.

Nevertheless, some federal companies fail to comply with Bill 101 and do so with impunity. Since 2000, some 147 files have been closed at the Office de la langue française because it could not do anything in view of the fact that the companies were under federal jurisdiction. These figures refer only to files that were opened in response to complaints. If no one complains, no file is opened. We can conclude, therefore, that the number of delinquent firms was probably higher.

This was a long aside to explain why we are happy that Nova Scotia and the federal government have managed to reach an agreement by negotiating an accord to abide by the provincial legislation and that the federal government demonstrated a real openness in this case. We are asking for much the same thing.

In conclusion, I would like to reiterate the position of the Bloc Québécois: since Bill C-15 is the result of an agreement between the federal government and Nova Scotia, and it deals with a particular situation, the Bloc will not oppose it and will agree in principle.

However, I will not forget this precedent. And I will make sure that I remind the Canadian government about this type of legislative adjustment it offers to some provinces but not others. I pledge to remind the government of this precedent when we debate this issue in the House of Commons.

[Alan Tonks, Liberal, York South—Weston, ON]

Mr. Speaker, I have the pleasure to sit on the natural resources committee with the member for Beauharnois—Salaberry. Her speech is in keeping with the hard work that she does on that committee.

I was drawn particularly to the part of her speech that deals with coal fed methane. She had indicated that as a result of the CO₂ capture and sequestration approaches through the gasification process of clean coal that there was a tremendous opportunity, at a scale I would think, that clean coal could be part of a national energy framework or strategy.

Is the member satisfied that the committee in its deliberations is taking into account the opportunities with respect to clean coal, especially with the research work that is being done at CANMET at Bells Corners? Is she satisfied that the committee has taken the opportunities of clean coal and coal fed methane as part of a national strategy? Would she have any suggestions if she is not satisfied as to how we could have the committee focus in on the opportunities that she has outlined in her comments?