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

[Gerry Byrne, Liberal, Humber—St. Barbe—Baie Verte, NL]

Mr. Speaker, I am pleased to be sharing my time this afternoon with the hon. member for Charlottetown to speak to Bill C-15, the Donkin coal block development opportunity act.

I note that my colleagues across the way have decided to introduce a new element to this particular debate, that of the Atlantic accord and the offshore developments. It is their choice. It would not be mine if I were them because of course that is not a stellar success story on behalf of the Conservative government right now at this point in time and that they would be wanting to talk about that.

I will say this. There is an incredible success story to be told and that is through the persistence of colleagues of mine, the member for Cape Breton—Canso as well as his colleague, the member for Sydney—Victoria, both from Cape Breton representing the needs and the aspirations of the people of Cape Breton and Nova Scotia for quite some time.

I want to congratulate him and the members for Cape Breton--Canso and Sydney--Victoria for keeping the pressure on this, and for bringing the views of the people of Cape Breton forward.

This is going to result in over 275 jobs for the people and miners of Cape Breton. It will mean that men and women who are currently working in other parts of the country and other parts of the world will be working at home now. It also means incredible new economic opportunities.

Cape Breton Island is really the Celtic tiger in so many ways. It has diversified its economy. It has gotten into the high tech sector. It has become involved in communications, manufacturing, software development, and has made huge strides in the development of its tourism sector. It deserves our congratulations and our support.

It is members like the Liberal member for Cape Breton—Canso as well as his colleague, the member forSydney—Victoria, that really I salute here today because they took the voice of the people who they represent and they translated it here on the floor of the House of Commons.

Bill C-15, to develop the Donkin resources, is simply a matter that the member for Cape Breton--Canso really kept the pressure up. He kept an eye on making sure that the legislation was drafted to meet the needs of the people whom he represented and brought those jobs home.

However, the members opposite on the Conservative side are actually wanting to raise the whole spectrum of the Atlantic accord. Just this morning, for the fourth consecutive time, there was to be a briefing by the Department of Finance for those interested in the amendments that were forced upon the people of Nova Scotia in their Atlantic accord agreement.

That is not what they asked for in these amendments. It is not what they were promised. Everyone in the House and everyone in the province of Nova Scotia, in Atlantic Canada and throughout this entire country knows that the promise that was given to the people of Atlantic Canada was 100% exclusion of all non-renewable natural resources for the equalization formula with no caps.

That however was not what was translated and provided by the Conservative government once it took office. That commitment was given on January 3 in an open letter to the Premier of Newfoundland and Labrador, followed by an open letter to the Council of the Federation under then Premier Ralph Klein, as chairman of all 10 provinces and 3 territories, that there would be 100% exclusion of all non-renewable natural resources for the equalization formula with no caps. The statement was also given, “no excuses”.

We seem to be surrounded now by excuses, by fine print and by a cap. That quite frankly I think causes the people of Nova Scotia still some great concern, especially when there was to be a briefing just this morning.

For the fourth consecutive time a briefing was scheduled for all interested parliamentarians from both sides of the House. That briefing was offered by the federal Department of Finance back in October of this year, so that we could actually learn firsthand the nature of the side, side, side deal between the Prime Minister and the Premier of Nova Scotia.

It was cancelled once, it was cancelled twice, it was cancelled a third time, and this morning, 14 minutes before the meeting was scheduled to occur, it was cancelled for the fourth time, even to the point where a member of the Department of Finance was actually showing up for the meeting. Because there was no BlackBerry in the--

[Gerald Keddy, Conservative, South Shore—St. Margaret's, NS]

Mr. Speaker, I mentioned earlier and I appreciate the fact that the Bloc members are supporting the principle of this piece of legislation, but we always see that constant and reoccurring habit of trying to drive those wedges. We are much better off when we all work cooperatively. I certainly appreciate his comparing this agreement to the offshore agreement.

Part of the argument that Nova Scotia put forward on the Donkin coal mine, and certainly on the methane, is that it is offshore, so it should be covered under the same agreement with offshore oil and gas. Methane gas and coal bed methane being drilled from jackups on the ocean, or from drill ships, or semi-submersibles, whatever it is drilled with, I concur, should be treated the same as other offshore resources.

Of course, the member should know the original agreement signed on the offshore has been available to Nova Scotia under our government since the beginning. It is part of what is on the table. He mentioned Premier Williams of Newfoundland and Labrador. It has been on the table for Newfoundland and Labrador as well.

It is up to the provinces to decide if they would choose to take that agreement or if they would choose to take the new equalization formula which offers 50% of their natural resources. Certainly, members should also be aware that the way the offshore accords were written the moment a province becomes a have province, it would lose the benefits of the offshore accords which would have given it 100% of its natural resources.

In the case of Newfoundland and Labrador in particular, that will probably be sooner rather than later. We are expecting it will become a have province and especially with the escalating value of its energy resources, Newfoundland and Labrador will probably become a have province in 2009. Therefore, it would lose the benefit of the original accord it signed anyway.

The new agreement is much better for the province of Newfoundland and Labrador in particular than the old equalization formula because under the new formula it would continue to receive 50% of its natural resources like any other province.

Again in closing, part of this and the reason why I took the time to explain that to my colleague from the Bloc is the fact that the Government of Canada, on this piece of legislation, Bill C-15, has worked in a cooperative manner in a positive way for a positive outcome both for the province of Nova Scotia and the federal government. It shows what we can do when we work together.

[André Bellavance, Bloc, Richmond—Arthabaska, QC]

Mr. Speaker, earlier, my colleague from Beauharnois—Salaberry—our party's natural resources critic—said that the Bloc Québécois supports the bill in principle, but that naturally, we will have to study the contentious provisions in Bill C-15, just as we do for all bills. As she said, that is the case with respect to revenue sharing and the exclusion of revenue from coal bed methane in the Canada-Nova Scotia accord on offshore oil. I would like the member to comment on offshore revenue since he is, if I am not mistaken, a member from the Maritimes.

It appears that the Conservative government is acting against Quebec's interests because the equalization formula does not take into account all non-renewable natural resource revenue, and therefore penalizes Quebeckers.

I would like to know if he thinks that the equalization formula should include offshore resources. We know that the Conservative government had some problems with this issue after the former Liberal prime minister's government made some promises and signed an agreement with provinces that have natural resources. We know that Mr. Williams, Premier of Newfoundland, was very angry when the Conservatives failed to keep their election promise. The former premier of Saskatchewan decided to sue the federal government because of that. This is a very serious problem. One Conservative member even became an independent because of it.

I would like to know what the member thinks of this, and whether he thinks that the equalization formula should include offshore revenue.

[Gerald Keddy, Conservative, Parliamentary Secretary to the Minister of the Atlantic Canada Opportunities Agency]

Mr. Speaker, it is a pleasure to rise and speak on Bill C-15, the Donkin Coal Block Development Opportunity Act. This is an act that is extremely important to the province of Nova Scotia and certainly to the island of Cape Breton.

Before I begin my remarks, I have a brief comment on the comments by my Bloc colleague. I think this act is an example of how the federal government and provincial governments, in this case the province of Nova Scotia, can work cooperatively for the better good of both. This act is not trying to drive divisions between areas.

The member for the Bloc is a member of the natural resources committee. She would be well aware that Nova Scotia's mining regulations, in particular the underground regulatory regime for coal mines and underground mines, are some of the best in the world because of the disaster that occurred at the Westray mine during the explosion there and the loss of those miners, which is still certainly in the minds of all Nova Scotians today. The laws have been improved because of that disaster and the regulatory regime that exists there has some of the best regulations in Canada.

To be clear, what is going to happen here is a single regulator in terms of resource development and labour matters. That regulator will be the Province of Nova Scotia. It will be facilitated by incorporating the provincial legislation into federal law and delegating to the province responsibility to administer these new federal laws. I want to be clear on how that will happen.

As I have mentioned, this legislation is about cooperation. It is not about driving wedges. It is not about causing a schematic shift across the country to pit one province against another province or one part of the country or one region of the country against another. This is a good, practical solution to an ongoing jurisdictional discussion between the Province of Nova Scotia and the Government of Canada.

Bill C-15 is an excellent example of what can be accomplished when we sit down and are committed to finding solutions. We are not committed to trying to find a way to pick a fight and cause an ongoing schism in the federation. We are committed to actually finding a solution.

The Government of Canada and the Government of Nova Scotia have worked cooperatively to ensure that Cape Breton benefits from this economic opportunity. As the Minister of Natural Resources has mentioned, Donkin is the last major undeveloped or underdeveloped coal resource off Cape Breton Island. This resource is not underground on Cape Breton Island. This resource is underground offshore Cape Breton Island. We need to be very clear about where this resource lies.

This legislation presents an excellent opportunity not only for the people of Cape Breton and Nova Scotians, but we expect that when the Donkin mine is open and in full operation it could create up to 275 jobs. This is extremely important to the province of Nova Scotia and the island of Cape Breton in particular. Indirectly, the project could generate 700 jobs. This is very good news for an area which in the past few decades has seen the decline of its coal and steel industries. The salaries, the equipment purchases and the sales of goods and services associated with Donkin could provide hundreds of millions of dollars to the economies of Cape Breton and Nova Scotia.

I will give members a bit of history on the development of the Donkin mine and coal in Cape Breton. Certainly, the region was settled because of coal, and coal mining has been the main livelihood for more than the past 100 years. On an historical note, it is interesting that when Nicholas Denys settled on Cape Breton Island in the late 1600s and had his trading post set up somewhere in the Sydney River area, it is thought now, he wrote in his diary of open seams of coal in the Sydney area on Cape Breton Island.

Certainly when Louisbourg was settled by the French, one of the reasons was the proximity of coal in the Cape Breton area. That was surface coal. The Donkin mine, of course, is under the ocean and offshore of the coal producing area.

The significance of coal is still evident today in the communities and the culture of Cape Breton. Miners who worked in the subsea mines have a long history. Many Cape Bretoners today can trace miners in their families going back more than 100 years. Cape Bretoners are proud of this mining heritage and they have never forgotten it.

In the early years, the work sustained many families, but it certainly was not an easy life. It was extremely dangerous and extremely hard work. Today, mining is still dangerous and hard work, but it is a very different profession compared to what existed 100 years ago. Mining provides good jobs and builds strong communities.

In the case of Donkin, it is important to note that this development is not starting from square one. A lot of the work at Donkin has already been done.

Exploration of Donkin began in 1977 with the original wells being drilled by ship. Eleven holes were drilled during a three year period and several seams of coal were detected. The Cape Breton Development Corporation of those days spent $80 million on two exploratory tunnels in the mid-1980s. At the time, the coal was deemed too expensive to extract, the tunnels were sealed and flooded, and the development did not proceed, but the coal is still there and the tunnels still exist.

As we can see, Cape Bretoners have lived both with the anticipation and with the disappointment of not seeing Donkin developed. Today I am happy to say that the pendulum has swung back to that feeling of optimism on Cape Breton Island.

As we all know, today's energy situation is very different from the recent past. Energy prices, including coal prices, have risen dramatically and new clean technologies are being developed, resulting in a new interest in coal as an energy source. Another factor favouring Donkin today is that the coal deposit may be of sufficient size and potential to be a source for international markets. We know that there is a very hot market for coal.

Nearby on Cape Breton Island, and certainly in Nova Scotia, there is a local workforce with extensive underground coal mining experience. These are some of the best workers in the world when it comes to mining and extracting coal. It is a workforce that welcomes the return of coal mining jobs. Local businesses certainly would welcome this development too.

Cape Breton also has two local coal-fired power stations capable of using Donkin coal. The rail infrastructure is in place to ship coal by train to two more power plants elsewhere in Nova Scotia.

Let us not forget the potential of Sydney Harbour, which sits ready to ship coal to international markets. The member for Cape Breton—Canso mentioned that in his speech. Some preliminary work may need to be done to assist the Sydney Harbour authority to move some of the larger ships in and out of the harbour, but that is all part of the infrastructure requirements that would be needed to fully develop the Donkin coal mine.

These are just some of the positive factors supporting this initiative. As we have heard, this is the last major coal deposit off Cape Breton Island. If it gets to the development stage, and I certainly believe it will, we expect to see at least 10 years of operations in the Donkin mine. In addition to providing much needed jobs, the development of Donkin would help stabilize the tax base of this community for many years.

This agreement signals a small revival of coal in Nova Scotia. It is not a return to the old days when coal was king in Cape Breton, but Donkin has the potential to provide a viable industry to Nova Scotia and help the province meet its energy needs.

The people of Cape Breton are anxious to see this development proceed. Certainly the Province of Nova Scotia is anxious to see it proceed and the Government of Canada is anxious to see it proceed. Coal mining will once again bring good jobs to this important region.

It should be clear from my comments that there the benefits of the initiatives I have outlined are manyfold. There are jobs and opportunities available. There are infrastructure jobs and there are dollars that will be helpful to the local community.

Clearly, there is broad support out there for this piece of legislation and for the Donkin mine and the Donkin coal seams to be developed. In fact, the federal government went so far as to carry out consultations with all interested stakeholders last spring, and I can report that there is very strong support indeed.

The community of Cape Breton is excited about this opportunity. The labour unions and groups representing the rights of workers, including the Nova Scotia Federation of Labour, have expressed support, and the employer and the offshore board have expressed support.

The Governments of Canada and the Province of Nova Scotia have a shared interest in seeing this further economic opportunity for Cape Breton. That is why they have worked closely together on this issue. I believe both levels of government deserve credit for their efforts to reach an agreement that will allow development of the Donkin coal seams. This bill provides a clear regulatory regime to permit the Donkin development if Xstrata decides to proceed with production.

There has been a fair amount of discussion here about existing provincial and federal laws, but existing provincial laws regarding matters such as labour standards, labour relationships, resource development and occupational health and safety will be incorporated into federal law as part of the agreement between the Government of Canada and the Government of Nova Scotia.

Again, this can happen when organizations work in a cooperative manner for the better good of both the Province of Nova Scotia and the Government of Canada. Nova Scotia will administer these laws so that a single and clear regulatory system can be established for the Donkin project.

In conclusion, let me say that this legislation allows both levels of government to retain their current positions, with nothing changing, with respect to ownership and regulatory jurisdiction, while facilitating the economic development of Cape Breton and certainly Nova Scotia.

By introducing this legislation, the Government of Canada is demonstrating its commitment to the economic development of the Cape Breton community and to Nova Scotia as a whole. This bill, I believe, is an outstanding example of cooperation between governments to facilitate a common interest in seeing the Donkin mine project proceed.

I would like to recognize the work of the Minister of Natural Resources, his parliamentary secretary and my colleagues on this side of the House, as well as the work done by my colleagues on the other side of the House.

I think there is pretty well unanimous support for this piece of legislation. There is some discussion and that is why we are in this place. We are here to look at the various areas of bills that we feel are projecting the common good and also to recognize what we see as flaws. I am happy to say, from what I have heard from members on the other side, that they recognize this as a cooperative and very positive piece of legislation for the province of Nova Scotia that will certainly benefit the regional economy of Cape Breton Island.

Before closing, I would like to say that coal was king in Cape Breton Island for many years, but it was also important to the entire province of Nova Scotia, certainly in the New Glasgow area. Earlier I mentioned the Westray explosion and the unfortunate circumstances that surrounded it. Coal was mined throughout Nova Scotia, in Springhill as well, and not just in Cape Breton. As well, there is still a very skilled workforce capable of underground mining, one that any employer would be lucky to hire.

I wish Xstrata, the company that will be primarily involved in Donkin, the best of luck. If the Province of Nova Scotia and the federal government can continue to work in a cooperative manner, I think this can be an example for other provinces.

[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.

[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.

[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.

[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.

Business of the House

[Peter Van Loan, Conservative, Leader of the Government in the House of Commons and Minister for Democratic Reform]

Mr. Speaker, because the official opposition was in disarray or whatever, it was unprepared to stand in the House and ask the Thursday question last week. As a result, I was unable to inform the House that this week's theme is “Effective Economic Leadership”.

I am proud to say that to date, we have been very successful.

Yesterday, the House approved the government's budgetary and economic plan to provide tax relief to Canadians by reducing the GST to 5% and cutting personal and business income taxes.

Tomorrow, we will continue to provide effective economic leadership by debating Bill C-7, which would amend the Aeronautics Act; Bill C-15, which would assist in developing natural resources, in Nova Scotia in particular; Bill C-4, which would amend the Pilotage Act; and C-14, which would amend the Canada Post Act.

If time permits, we will also continue with our plan to tackle crime and strengthen security by debating Bill C-3, which would improve the security certificate process.

Next week will be “Honouring our Veterans Week”, allowing members to be in their ridings during this important time.

Today, I would like to recognize the member for Bruce—Grey—Owen Sound who worked hard to make it a reality.

When the House resumes, we will carry on with our very full legislative agenda for democratic reform.

Therefore, I am proud to inform the House that the theme for that week will be “Strengthening our Federation through Democratic Reform Week”.

On Wednesday, November 14, the government will discuss Bill C-6 concerning the visual identification of voters.

We will also be debating legislation that we put on notice last night to address the issue of verification of residence for rural voters.

We hope that the opposition parties will work with the government to pass these two bills quickly before a general election or byelections take place.

We will continue to work toward increasing voter turnout by debating our expanded voting opportunities bill in committee, which would increase the number of advance polling days.

We will also move forward with other parts of our agenda to modernize Canadian democracy.

By debating and passing these legislative initiatives, we will strengthen Canada's political institutions and enhance public confidence in the integrity and accountability of those institutions.

Finally, Tuesday, November 13, will be a supply day, and today we will resume debate on the opposition motion.

Donkin Coal Block Development Opportunity Act

[Gary Lunn, Conservative, Minister of Natural Resources]

moved for leave to introduce 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.

(Motions deemed adopted, bill read the first time and printed)