Energy Safety and Security Act

An Act respecting Canada's offshore oil and gas operations, enacting the Nuclear Liability and Compensation Act, repealing the Nuclear Liability Act and making consequential amendments to other Acts

This bill was last introduced in the 41st Parliament, 2nd Session, which ended in August 2015.

Sponsor

Joe Oliver  Conservative

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill.

Part 1 of this enactment amends the Canada Oil and Gas Operations Act, the Canada Petroleum Resources Act, the Canada-Newfoundland Atlantic Accord Implementation Act and the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act (the “Acts”) primarily to update, strengthen and increase the level of transparency of the liability regime that is applicable to spills and debris in the offshore areas.
More specifically, Part 1, among other things,
(a) expressly includes the “polluter pays” principle, which is consistent with the notion that the liability of at-fault operators is unlimited;
(b) increases to $1 billion the limit of liability, without proof of fault or negligence, to which certain operators are subject in the event of a spill or damages caused by debris;
(c) provides that an applicant for an authorization for the drilling for or development or production of oil or gas must demonstrate that it has the financial resources required to pay the greatest of the amounts of the limits of liability that apply to it;
(d) establishes a regime in respect of the development of transboundary pools and fields;
(e) provides for new circumstances in which information or documentation that is privileged may be disclosed;
(f) establishes a legal framework to permit the safe use of spill-treating agents in specific circumstances;
(g) harmonizes the environmental assessment process for projects for which the National Energy Board, the Canada-Newfoundland Offshore Petroleum Board or the Canada-Nova Scotia Offshore Petroleum Board is the responsible authority, as defined in the Canadian Environmental Assessment Act, 2012, with the requirements of that Act, including by establishing timelines for carrying out environmental assessments and creating participant funding programs to facilitate the participation of the public in environmental assessments; and
(h) creates administrative monetary penalty regimes.
Finally, Part 1 makes amendments to remove certain discrepancies between the English and French versions of the Acts, as well as to modernize the language in the Acts.
Part 2 of the enactment repeals the Nuclear Liability Act and enacts the Nuclear Liability and Compensation Act to strengthen the liability regime applicable after a nuclear incident. It also provides for the establishment, in certain circumstances, of an administrative tribunal to hear and decide claims and implements certain provisions of the Convention on Supplementary Compensation for Nuclear Damage. It also makes consequential amendments to other Acts.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Votes

Sept. 25, 2014 Passed That, in relation to Bill C-22, An Act respecting Canada's offshore oil and gas operations, enacting the Nuclear Liability and Compensation Act, repealing the Nuclear Liability Act and making consequential amendments to other Acts, not more than one further sitting day shall be allotted to the consideration of the third reading stage of the Bill; and That,15 minutes before the expiry of the time provided for Government Business on the day allotted to the consideration of the third reading stage of the said Bill, any proceedings before the House shall be interrupted, if required for the purpose of this Order, and, in turn, every question necessary for the disposal of the said stage of the Bill shall be put forthwith and successively, without further debate or amendment.
May 29, 2014 Passed That, in relation to Bill C-22, An Act respecting Canada's offshore oil and gas operations, enacting the Nuclear Liability and Compensation Act, repealing the Nuclear Liability Act and making consequential amendments to other Acts, not more than five further hours shall be allotted to the consideration at second reading stage of the Bill; and that, 15 minutes before the expiry of the time provided for Government Orders on the third day allotted to the consideration at second reading stage of the said Bill, any proceedings before the House shall be interrupted, if required for the purpose of this Order, and, in turn, every question necessary for the disposal of the said stage of the Bill shall be put forthwith and successively, without further debate or amendment.

Speaker's RulingEnergy Safety and Security ActGovernment Orders

September 15th, 2014 / 4:05 p.m.


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The Speaker Andrew Scheer

There is one motion in amendment standing on the notice paper for the report stage of Bill C-22. The sponsor of the motion as well as the two members who had submitted an identical notice have indicated to the Chair that they do not wish to proceed with the motion. Therefore, the House will now proceed without debate to the putting of the question on the motion to concur in the bill at report stage.

Speaker's RulingEnergy Safety and Security ActGovernment Orders

September 15th, 2014 / 4:10 p.m.


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Kenora Ontario

Conservative

Greg Rickford ConservativeMinister of Natural Resources

moved that the bill be concurred in.

Speaker's RulingEnergy Safety and Security ActGovernment Orders

September 15th, 2014 / 4:10 p.m.


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The Speaker Andrew Scheer

Is it the pleasure of the House to adopt the motion?

Speaker's RulingEnergy Safety and Security ActGovernment Orders

September 15th, 2014 / 4:10 p.m.


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Some hon. members

Agreed.

Speaker's RulingEnergy Safety and Security ActGovernment Orders

September 15th, 2014 / 4:10 p.m.


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An hon. member

On division.

Speaker's RulingEnergy Safety and Security ActGovernment Orders

September 15th, 2014 / 4:10 p.m.


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The Speaker Andrew Scheer

(Motion agreed to)

When shall the bill be read a third time? By leave, now?

Speaker's RulingEnergy Safety and Security ActGovernment Orders

September 15th, 2014 / 4:10 p.m.


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Some hon. members

Agreed.

Speaker's RulingEnergy Safety and Security ActGovernment Orders

September 15th, 2014 / 4:10 p.m.


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Conservative

Greg Rickford Conservative Kenora, ON

moved that the bill be read a third time and passed.

Mr. Speaker, I want to welcome all members of this place back, and in addition, the new members.

It is with great pleasure that I rise in the House today to discuss how our government has taken action to strengthen energy safety and security in Canada's offshore and nuclear energy industries.

The health and safety of Canadians and of our environment is of the utmost importance to our government.

In the Speech from the Throne we pledged that no resource development would proceed unless safe for Canadians and safe for the environment. In other words, no development would proceed unless rigorous environmental protection and health and safety measures were in place. That is the goal of Bill C-22. The legislation builds on Canada's already strong record of safety and security in the nuclear and offshore industries, and it will ensure that Canada's thriving energy sector will continue to grow.

One of the key features of the energy safety and security legislation is the $1-billion protection it provides to Canadians. The legislation would raise the absolute liability limits in both offshore and nuclear sectors to $1 billion. These changes would ensure that Canada continues to have world-class regulatory regimes. As hon. members know, Canada's liability regime is founded on the polluter pays principle. With Bill C-22, we are enshrining this principle into legislation for the first time. The bottom line is that Canadian taxpayers and the Government of Canada will not have to foot the bill in the unlikely, perhaps rare, event of a spill.

The Canadian offshore oil and gas industry is booming and provides many economic benefits for Canada's Atlantic region, including thousands of jobs and billions of dollars in revenue.

From an economic perspective, activities in the Newfoundland and Labrador offshore accounted for about 28% of the nominal provincial gross domestic product in 2012. In the Nova Scotia offshore, they represented about 3% of the provincial GDP.

Canada collected an impressive $8.4 billion in royalties from the Newfoundland and Labrador offshore and $2 billion from the Nova Scotia offshore and transferred those funds to these respective provincial governments. I am sure they appreciated that. Offshore development is currently one of the fastest growing sectors in Canada. Right now there are five major projects under way in the Atlantic offshore, another project under construction with initial production slated for 2017, a major prospect in the Flemish Pass, and several major exploration projects under way.

Atlantic Canada currently produces about 200,000 barrels of oil a day. That is about 15% of Canada's conventional crude oil production and seven million cubic litres a day of natural gas. Put another way, that is enough to heat about 950,000 Canadian homes for one year.

There are still opportunities for the oil and gas industry. Our country has the resources to help meet international demand for energy, which is expected to increase by one-third by 2035.

Most of that growth in demand is coming from emerging economies in Asia, Africa, and Latin America. Few countries are developing natural resources on the scale and at the pace of Canada. There are hundreds of major natural resource projects under construction or planned for the next 10 years. These are worth approximately $675 billion in investment.

The Government of Canada shares the management of the offshore with the governments of Nova Scotia and Newfoundland and Labrador. Companies operating in Canada's offshore have an excellent track record. Every stage of offshore oil and gas project development, from exploration to production, is managed and regulated by the Canada-Nova Scotia Offshore Petroleum Board or the Canada-Newfoundland and Labrador Offshore Petroleum Board.

These boards ensure that operators exercise due diligence to prevent spills in Canada's offshore. With this in mind, we work closely with these two provinces to update and expand legislation to ensure that Canada's offshore regime remains world class.

Canada's environmental safety record in the Atlantic offshore, for example, is already very strong. In fact, some 73 million barrels of oil are produced in the region each year, without a significant spill since production began in 1997. Our plan for responsible resource development strengthens environmental protection by focusing resources on the review of major projects. We have put forward new measures, new fines, to punish those who would break Canada's rigorous environmental protections. We have also increased the number of inspections and comprehensive audits of federally regulated pipelines.

What is more, we are bringing in tough new measures for oil tankers to ensure the safe transport of energy resources through our waterways. These measures include the introduction of the safeguarding Canada's seas and skies act and the formation of an expert tanker safety regime and proposed ways to strengthen it. Building on these measures with Bill C-22, our government is taking tangible steps to make our robust liability regime and its great record even stronger.

Our proposed changes focus on four key areas: prevention, response, accountability, and transparency. They will help further strengthen safety and security to prevent incidents and ensure a swift response in the rare or unlikely event of a spill. As I mentioned, our liability regime is founded on the polluter pays principle.

First, we are proposing to enshrine this principle in the legislation and to maintain unlimited liability when an operator is found to be at fault. This will clearly establish that polluters will be held accountable.

Second, we will ensure that the liability limits reflect modern standards. Under the current regime, offshore operators in the Atlantic have absolute liability of $30 million. Given the value of this resource and the boom currently under way in offshore exploration and production, most members, I think, can agree that this amount needs to be raised. That is why we are increasing the benchmark to $1 billion with this bill. In this way, Canada's benchmark remains among the highest in the world.

In addition to increasing the absolute liability in the Atlantic from $30 million to $1 billion, our government is also increasing the absolute liability in the Arctic from $40 million to $1 billion. Fault or negligence does not have to be proven for operators to be responsible for that amount of damage or compensation. I think that is important.

Let us move to a discussion, then, of financial capacity.

We must also ensure that companies operating offshore have the financial capacity to meet their obligations.

Before any offshore drilling or production can take place, companies have to prove that they can cover the financial liabilities and damages that may result from a spill. Currently the financial capacity requirements range from $250 million to $500 million, with $30 million to be held in trust for working in the Atlantic offshore and $40 million for working in the Arctic offshore. This deposit is held in trust by the offshore regulator as a letter of credit, guarantee, or bond. These amounts will increase to $1 billion for financial capacity and $100 million to be held in trust per offshore project. These are significant resources that I think go a long way to help build public confidence.

Furthermore, we are taking steps to create greater transparency in the offshore industry. With this in mind, we are making emergency planning, environmental plans, and other documents filed with regulators available to the general public. This will ensure that operators make protecting Canadians and the environment their first priority.

These are just some of the ways we are protecting Canadian taxpayers by ensuring that Canada has one of the strongest offshore liability regimes in the world.

In fact, with the passage of this legislation, Canada's offshore liability will be among the most stringent in the world. We will ensure that only those companies with an interest in operating safely and securely and with the financial wherewithal to address any problems will be able to comply.

I would like to spend some time talking about nuclear liability, the second piece of this act.

Canada's nuclear industry is also a critical component of our energy resource mix. This industry accounts for 30,000 high-quality jobs and helps make Canada's electricity supply among the cleanest in the world.

Electricity from nuclear energy powers our homes, our businesses, our cities and even our cars. In fact, nuclear energy is helping reduce Canada's greenhouse gas emissions by 89 million tonnes a year, which is the equivalent of over 18 million cars.

Our country is recognized the world over as a leader in nuclear energy for a number of important reasons. For one, Canada's nuclear industry boasts an impressive safety record. It has operated safely and securely for over 50 years. In fact, there has never been a single claim under Canada's nuclear liability act.

We have robust technology, a well-trained workforce, and rigorous regulatory requirements. The industry is supported by legislation, such as the Nuclear Safety and Control Act and the Nuclear Fuel Waste Act, and is overseen by the independent expertise of the Canadian Nuclear Safety Commission.

What most Canadians probably do not realize is that Canada's nuclear liability regime is already nearly 40 years old, young by anyone's standard in this place, I am sure. However, times and standards have changed when it comes to the nuclear industry. Clearly, this legislation needs to be brought into the modern age.

As a responsible government, we must ensure that our system is up to date and that it can respond to any incidents. That is why we have brought in a bill to modernize Canada's nuclear liability regime.

This new legislation will increase the amount of compensation available to address civil damage from $75 million to $1 billion. We believe that the $1-billion figure strikes the right balance between protecting Canadian taxpayers and holding companies accountable in the event of an accident. The amount is also in line with current international standards.

The proposed legislation maintains the key principle of absolute and exclusive liability for operators of nuclear facilities for injury and damage. This means that the liability of the operator will be unqualified and undivided. There will be no need to prove fault, and no one else will be held liable.

These are big numbers we are talking about. In fact, nuclear insurers have indicated that a $1-billion liability limit would mean an increase in premiums of five to eight times the amount operators are currently paying. If we take, for example, some of the operators in Ontario who have several reactors at their nuclear power plants, they currently pay premiums in the neighbourhood of up to $1.2 million for a $75 million insurance policy. Under this legislation, they would be required to pay annual premiums of up to $10 million for a $1 billion insurance policy.

What about the cost to ratepayers? Based on average monthly electricity consumption by Ontario households of 1,000 kilowatts an hour, the impact of the increased insurance would amount to a very small amount. In fact, it would be roughly less than $2 per year.

As for compensation, Bill C-22 will broaden the definition of compensable damage to include physical injury, economic loss, preventative measures, and environmental damage. It will also extend the limitation period for submitting compensation claims for bodily injury from 10 years to 30 years. This will help address any latent illnesses that may only be detected years later, after an accident. It is another important way our government is protecting the health and safety of Canadians.

Bill C-22 would significantly improve the claims compensation process, increase the financial liability of nuclear operators for damages and provide greater legal certainty for Canada's nuclear industry. Ultimately, these reforms would boost public confidence, Canadians' confidence in the safety and responsibility of the industry as a whole.

Our government is taking these concrete steps to address other important issues for the nuclear sector. This includes responsibly managing legacy waste, restructuring Atomic Energy of Canada Limited and promoting international trade.

Let us talk about international efforts.

As hon. members know, when we talk about nuclear energy, we are talking about a global issue that knows no borders. With Bill C-22, we are implementing the provisions of the International Atomic Energy Agency's Convention on Supplementary Compensation for Nuclear Damage. This convention is an international instrument to address nuclear civil liability in the rare and unlikely event of a nuclear incident.

By adhering to these additional international standards, Canada will bolster its domestic compensation regime by up to $450 million by bringing in significant new funding. This will bring the total potential compensation in Canada up to $1.45 billion.

Joining this convention will reinforce our commitment to building a strong, global, nuclear liability regime.

This underscores how important this Canadian bill is, not only with respect to financial issues, but also in other areas, such as clarifying what constitutes a nuclear incident.

These changes will also help provide greater certainty for Canadian nuclear supply companies that want to market their services in a country that is a member of the convention.

Given that our closest neighbour, the United States, is already a member, our membership will allow the two countries to establish civil liability treaty relations.

Korea and Japan have also signalled their intention to join the convention. Once Canada becomes a member, the convention will be one step closer to becoming a reality.

In conclusion, our government believes that economic prosperity and environmental protection are not mutually exclusive goals. They can and they do go hand in hand. The legislation we are debating today is designed to do just that.

This bill will ensure that Canada's energy resources are developed safely and responsibly and that the environment is protected.

The energy safety and security act would provide a solid framework to regulate the offshore and nuclear liability regimes in Canada and to ensure they would remain world class. It sends a strong signal to the world that Canada is a safe and responsible supplier of energy resources and that Canada, at the same time, is open for business.

That is why I want to urge all hon. members to support this important legislation. I have appreciated the debate in previous sittings, and I look forward to responding to questions from my colleagues at this time.

Speaker's RulingEnergy Safety and Security ActGovernment Orders

September 15th, 2014 / 4:25 p.m.


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NDP

Chris Charlton NDP Hamilton Mountain, ON

Mr. Speaker, as you can imagine, as the NDP critic for natural resources, I have a ton of questions for the minister that I would love to ask, but I do not want to offer him a big buffet today so he can pick and choose which ones he answers. I will focus in on something really specific.

Access to information documents acquired by Greenpeace indicate that the Department of Natural Resources commissioned a study on the impacts of the economic effects of a nuclear accident in 2013 to support revisions to the nuclear liability and compensation act.

According to those documents, Ontario Power Generation and the Canadian Nuclear Safety Commission limited the scope of another study on the health effects of a nuclear accident so they would not undermine the study by the ministry.

The CNSC study was released to the public and the Standing Committee on Natural Resources, but study on the economic consequences of a nuclear accident was not.

To me, it is completely unacceptable that both parliamentarians and the public would be kept in the dark with respect to that study as we are debating Bill C-22.

I am respectfully requesting the minister today to agree to table those documents in the House of Commons so we can all have the benefit of knowing what that study said before we give third and final reading to the bill.

Speaker's RulingEnergy Safety and Security ActGovernment Orders

September 15th, 2014 / 4:30 p.m.


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Conservative

Greg Rickford Conservative Kenora, ON

Mr. Speaker, I appreciate the hon. member's question and her participation in this debate.

At every turn throughout this debate, we have had an opportunity to look at legislation tabled here today, and in previous debates, that talks about a world-class liability regime. In getting to that point, we have had every opportunity to hear from experts.

There is plenty of information out there for us to rely on in order to advance the debate on this important and timely subject matter.

Speaker's RulingEnergy Safety and Security ActGovernment Orders

September 15th, 2014 / 4:30 p.m.


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Liberal

Geoff Regan Liberal Halifax West, NS

Mr. Speaker, during the committee reports at the committee stage, where the committee reviewed this bill, the scope of the committee's work was strictly restrained. It was very narrow, as decided by the government majority in that committee, of course.

One sometimes senses the invisible hand of the minister in the committee and the decisions that are made. However, one of the things that we ought to have been studying was the impact of this bill in the north and what the limits ought to be for liability, particularly in relation to oil and gas exploration in the north.

The Prime Minister likes to go to the north and go around on snowmobiles and so forth, and we see him on the front of ships, but he does not seem to show much interest in the environment. We never hear him mention climate change when he is in the north, for example. That is a concern.

In committee we ought to be able to look at questions like what our response capacity is and what we could do about incident prevention in the north. When the committee last talked about these issues a few years ago, at the time of the BP Deepwater Horizon blowout in the Gulf of Mexico, the experts that came before it said that the ability to deal with spills in the north, under the ice in the Arctic, was not there.

However, we know the minister has given approval for at least two wells. I think that there are three exploration licences that have been given in the Beaufort Sea, two of which are in deep water.

What is going to happen here?

Speaker's RulingEnergy Safety and Security ActGovernment Orders

September 15th, 2014 / 4:30 p.m.


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Conservative

Greg Rickford Conservative Kenora, ON

Mr. Speaker, I appreciate the hon. member's curiosity on this issue.

Canada's current absolute liability limits have not been updated since the 1980s. Indeed, we are taking a significant leap forward from the $30 million to $40 million range in the Atlantic and Arctic to $1 billion. This will place Canada's liability regime squarely among those of its peer countries.

In case of fault or negligence liability remains unlimited.

Speaker's RulingEnergy Safety and Security ActGovernment Orders

September 15th, 2014 / 4:30 p.m.


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Conservative

Joan Crockatt Conservative Calgary Centre, AB

Mr. Speaker, this is a bill that should be very interesting to all Canadians. All of us care about our environment. We want to ensure that our environment is protected. In fact, no government in Canadian history has been more proactive on the environment than this government.

I think what Canadians want to know is, in broad terms, how would Bill C-22 actually toughen the environmental standards? We are not content to sit where we have been. We are continually increasing the environmental standards.

I would like the minister to address how this bill would toughen our environmental standards, continue to hold our energy companies accountable and ensure that the environment is protected for Canadians while our development proceeds.

Speaker's RulingEnergy Safety and Security ActGovernment Orders

September 15th, 2014 / 4:30 p.m.


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Conservative

Greg Rickford Conservative Kenora, ON

Mr. Speaker, I appreciate the member's contributions and her hard work on the standing committee with her two hands, and not my invisible one.

I appreciate the fact that energy is a key issue for her constituents. What I can assure her is that our regime and what is proposed in this bill, in both offshore and nuclear liability, compares well with the international community in terms of competent, independent regulators and their ability to enforce the kinds of standards about which she is concerned. We recognize that there are other countries that have provided benchmark standards. Norway and Australia are world leaders in offshore regimes, based on their respective regimes of extensive regulation and predictable process.

We have looked to those regimes. We have considered the important and rigorous role that the independent boards perform at arm's-length in the interest of putting the safety of our Canadian communities in these areas, and Canada as a whole, at the forefront in developing these kinds of regimes, whether they are nuclear, offshore, pipelines, tanker safety and the like.

Speaker's RulingEnergy Safety and Security ActGovernment Orders

September 15th, 2014 / 4:35 p.m.


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NDP

Anne-Marie Day NDP Charlesbourg—Haute-Saint-Charles, QC

Mr. Speaker, the NDP also believes that polluters must pay. This reduces the liability of taxpayers, who should not have to pay for something that they did not do.

Could the minister explain to Canadians why the bill does not apply to the nuclear industry? I am referring to the 33rd meeting of the Standing Committee on Natural Resources on June 3, 2014.

Furthermore, why does a company like General Electric, a reactor supplier, not have any obligation in the case of an incident? This question is in reference to the 34th meeting of the Standing Committee on Natural Resources on June 5, 2014.

Speaker's RulingEnergy Safety and Security ActGovernment Orders

September 15th, 2014 / 4:35 p.m.


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Conservative

Greg Rickford Conservative Kenora, ON

Mr. Speaker, while some countries have an unlimited liability limit, which would be Finland, Germany, Switzerland and Japan, in practice the capacity for operators to compensate for damages is limited.

For example, in the aftermath of the Fukushima nuclear accident, the Japanese government stepped in to bail out its operator. This meant it was effectively putting the utility under government ownership in order to allow it to continue to supply electricity to its customers.

Speaker's RulingEnergy Safety and Security ActGovernment Orders

September 15th, 2014 / 4:35 p.m.


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NDP

Ryan Cleary NDP St. John's South—Mount Pearl, NL

Mr. Speaker, the hon. member pointed out the fact that the absolute liability for an offshore spill had increased from $30 million to $1 billion. That is a significant increase of $970 million, and that is a good thing. However, in the United States, for example, the cap on the absolute liability for a spill is at $12.6 billion U.S. Ours is going to be set at $1 billion Canadian and in the United States it is $12.6 billion U.S.

In 2010, the total cost for the British Petroleum spill in the Gulf of Mexico with the Deepwater Horizon is $42 billion U.S. and rising. That includes the total cleanup, the criminal penalties and civil claims.

The increase from $30 million to $1 billion is a significant increase, but is it enough?

Speaker's RulingEnergy Safety and Security ActGovernment Orders

September 15th, 2014 / 4:35 p.m.


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Conservative

Greg Rickford Conservative Kenora, ON

Mr. Speaker, I hope the member is signalling support for this industry as a whole. I had a chance to be in Newfoundland not too long ago where the palpable enthusiasm in economic activity in Newfoundland was very clear to me. The important role that we play in working with Newfoundland and Labrador on offshore activities, particularly in regard to this act, is significant in terms of striking that right balance between a liability regime that works for continued economic activity.

Canada's current absolute liability limits, as I said earlier, have not been updated since the 1980s. This bill seeks to ensure that Canada's offshore regime for oil and gas remains world class. The $1 billion absolute liability would place Canada's regime squarely among those of its peer countries. As I have said before in answers to previous questions, in the case of fault or negligence liability remains unlimited.

Speaker's RulingEnergy Safety and Security ActGovernment Orders

September 15th, 2014 / 4:35 p.m.


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NDP

Chris Charlton NDP Hamilton Mountain, ON

Mr. Speaker, I am pleased to rise in the House today to participate in the debate on Bill C-22, an act respecting Canada's offshore oil and gas operations, enacting the nuclear liability and compensation act, repealing the Nuclear Liability Act and making consequential amendments to other acts.

I suppose I should begin by giving a brief synopsis of what the legislation is about, since it has now been some months since the bill was last before the House.

With respect to nuclear liability, Bill C-22 would update Canada's nuclear liability regime to specify the conditions and the procedure for compensation of victims following an incident at a nuclear power plant. It would maintain the principles of absolute limited and exclusive nuclear liability for operators except in situations of war or terrorist attacks. It would increase the absolute liability limit from $75 million to $1 billion. These nuclear liability changes would apply to Canadian nuclear facilities, such as nuclear power plants, research reactors, fuel processing plants, and facilities for managing used nuclear fuel. Moreover, the bill would extend the limitation period for submitting compensation claims for bodily injury from 10 years to 30 years to address latent illnesses, while maintaining the 10-year period for all other forms of damage.

With respect to offshore oil and gas liability, Bill C-22 purports to update Canada's offshore liability regime for oil and gas exploration and operations to prevent incidents and to ensure a swift response in the event of a spill. It would maintain unlimited operator liability for fault or negligence and would increase the absolute liability limit from $40 million in the Arctic and $30 million in the Atlantic to $1 billion for offshore oil and gas projects in both Arctic and Atlantic waters. Significantly, the bill explicitly references the polluter pays principle to establish clearly and formally that polluters will be held accountable.

As members may recall, my NDP colleagues and I supported this bill at second reading in order to get it to committee so that it could be studied thoroughly and so we could present amendments to fix its many flaws. As we indicated at the time, our support was premised on the promise made by the former Minister of Natural Resources that there would be plenty of time for public consultations. I guess we should have known better.

After the cabinet shuffle in the spring, the new Minister of Natural Resources simply ignored his colleague's commitment. Instead of comprehensive public hearings and detailed scrutiny of the bill, the natural resources committee was allotted only three meetings, for a total of six hours, to study this important piece of legislation. Two of those meetings were set aside to hear from witnesses and one meeting was for clause-by-clause consideration. To add insult to injury, one meeting designated for witness testimony was cut short because members had to go to the House for votes, and that lost time was never compensated for at a later date.

With apologies to Thomas Hobbes, this committee process was “nasty, brutish and short”. The whole process was a sham, entirely in keeping with the government's utter disdain for public consultation. The government's desire to get this legislation passed without any meaningful input was, of course, not lost on Canadians.

As one witness said before the committee, her family lives just shy of four kilometres from the Pickering nuclear power plant. Her neighbours know nothing about Bill C-22 going through Parliament, and the witness did not have time to tell people that Pickering residents' personal assets were currently being discussed in the hallowed halls of Ottawa. They have one newspaper that goes out Wednesday and Thursday. They could not even get real-time news during the ice storm through the mainstream media, let alone news about a bill rushed through Parliament.

Not surprisingly, this impassioned plea for more time to study Bill C-22 and its impact on Canadians and their communities did nothing to change the government's approach to dealing with this important file.

Just as Canadians got the brush-off, so did members of Parliament. New Democrats put forward serious amendments, buttressed by expert testimony, that would have significantly improved the government's bill. The amendments were reasonable and simply aimed to strengthen the bill by bringing fairness and balance to its approach. However, not a single one of our amendments was adopted, and as a result, the government missed out on enacting a truly cutting-edge piece of liability legislation for Canada's energy sector.

It is unfortunate that I have only 20 minutes in the House today to reflect on some of the powerful witness testimony that we heard in committee. Twenty minutes is wholly inadequate to explain the importance of some of the amendments New Democrats moved and to explain the deleterious consequences of the government's inaction with respect to their adoption. At a minimum, I owe it to those who lent us their expertise to give a high-level overview of the bill's serious flaws.

In a nutshell, here is what New Democrats attempted to accomplish with our amendments. First, we tried to establish the polluter pays principle, including the removal of a liability cap. Second, we wanted to see the sustainability principle adopted in this legislation by including non-use value damages.

Third, we attempted to increase the incentive for safety by making suppliers and contractors liable, not just operators.

Fourth, we moved an amendment that would increase the timeframe for submitting claims regarding bodily injury, latent illnesses, and death.

Finally, we tried to get concrete commitments for inclusive public consultations on a go-forward basis.

We moved 13 amendments in these five broad categories, but not a single one was passed. Let us look at them in a little more detail so that folks who may be watching the debate here today can truly understand the potentially dire consequences of the Conservatives' intransigent attitude on this file.

Let us look at what the bill entails. The single biggest flaw in this bill is that it continues to subsidize the industry by making taxpayers assume any financial risk in excess of $1 billion. It does this by failing to uphold the critical principle of polluter pays. In Bill C-22, absolute liability is capped at $1 billion, putting public funds and taxpayers on the hook for accidents that exceed this limit.

Witnesses repeatedly told the natural resources committee that the $1 billion cap is as arbitrary as it is inadequate. Here is just a sampling of the testimony we heard.

In a submission from the Canadian Environment Law Association, Theresa A. McClenaghan wrote:

...the amount of $1 billion is far too low to provide assurance of the ability to adequately compensate victims of a severe accident in both the offshore oil and gas as well as the nuclear energy sectors. In the offshore oil and gas case we saw the experience with the Deepwater Horizon spill where President Obama established a $20 billion fund which is not even inclusive of the environmental damages or state clean up costs. The potential consequences of a Fukushima large accident from the nuclear plants in Ontario could far exceed the amount of 1 billion dollars; this number would have to be assessed in light in property values in the GTA as well as the experiences at Chernobyl and Fukushima. The concerns about the reality of potential accidents are not academic concerns; an article written by Dr. Kristin Shrader-Frechette of the University of Notre Dame just after the Fukushima accident listed 26 unintentional nuclear core-melt accidents that have occurred worldwide since the 1950s; the most notorious of course including Chernobyl in 1986 and the three at Fukushima in 2011 . For Fukushima, the Physicians for Social Responsibility have cited figures ranging between $250 billion and $500 billion in consequences from the events there. The scale of these types of accidents far exceeds the billion dollar amount that Bill C-22 establishes for the absolute liability limit in both the oil and gas and the nuclear sectors.

Professor William Amos from Ecojustice echoed those concerns. He said:

I sense the $1 billion number is literally picked out of thin air. Conversations we had with the government were not dissimilar to the question of what's the right number. We said there is no right number; it should be unlimited liability. It seems to me that at a certain point there has to be a recognition on the part of the government that, if there is going to be a functioning free market, then entities that want to engage in risky activities, for example Arctic offshore drilling, they should be able to pay the full freight. I think it is unlikely that we could expect the crown to recover all of the damages caused, including non-use damages, if there were a worst-case scenario off any of Canada's coasts.

He went on to say:

The goal of any extracontractual liability regime is to make sure that an operator's actions in terms of prevention are at the highest possible level and to make sure that the company itself, not the Crown or the taxpayers, assumes the clear risks. Certainly, when a regime is based on the polluter pays principle, and when the provisions of the legislation require the company to pay a greater part of the damages in the case of a catastrophic spill, the company will take steps in advance to modify its behaviour. In this case, modifying the behaviour of those with a financial stake is most important.

Finally, I want to quote from the testimony of Dr. Gordon Edwards from the Canadian Coalition for Nuclear Responsibility:

We urge you, as elected representatives of the Canadian population, not to approve this Act for third reading without insisting on due diligence. First of all, why is there a need for such a limitation of liability? Shouldn't every enterprise be required to accept full responsibility for potential offsite damages?If the government has to ultimately step in to deal with a messy situation, such as that at Lac Mégantic, so be it—but why should the owner or operator have his responsibilities lifted from his shoulders ahead of time? Secondly, where did the figure of one billion dollars come from? This is even less than the cost of a reactor refurbishment. It is far less than the cost of onsite damages in the event of a severe nuclear accident, for which the owner/operator is fully liable and adequately insured.... Costs are mounting. Overnight, the estimated cost of the radioactive cleanup of Port Hope went from $800 million to $1.8 billion. Overnight, the $7 billion cleanup of Chalk River went up by another billion dollars.

New Democrats on the committee took that expert testimony to heart and introduced amendments to abolish the $1-billion liability cap. We agree that Canadian taxpayers should not be on the hook for cleanup and compensation costs beyond the $1 billion. The Canadian taxpayer is not the polluter and therefore should not be held liable for damages caused by the industry. Only if we legislate the polluter pays principle will Canadians get the protection they deserve.

Keeping on the theme of liability, let me quickly raise a couple of other issues we sought to address through our amendments at committee. First, as if it was not bad enough that the Conservatives refuse to lift the liability cap altogether, they added insult to injury by giving additional discretion to the minister to reduce absolute liability even below the already inadequate $1-billion threshold. In the absence of any credible rationale for providing relief from liability, we moved to have those provisions scrapped from the bill. We simply cannot trust the Conservative government to protect the public interest when it has a track record of abusing arbitrary powers. Not surprisingly, our amendments were handily voted down by government members on the committee.

Our efforts to create a more even distribution of liability met a similar fate. In its current iteration, Bill C-22 completely excludes suppliers from any liability. On the nuclear side, they are not held accountable beyond negligence, thereby limiting the possibility of a more even distribution of liability. Not incorporating the supply chain as part of the liability process places the entirety of the blame on the operator. This allows smaller suppliers to act in a hazardous way, increasing the likelihood of a nuclear accident, as companies down the supply chain may act with financial impunity for their actions.

Instead of leaving taxpayers on the hook for cleanup costs that a company could not pay, New Democrats at the committee submitted amendments that would include suppliers and contractors in the liability process. This would increase the incentive for implementing best practices throughout the entire supply chain and would therefore help to ensure the safety of Canadians.

A number of witnesses supported our belief that we needed to fix the imbalance in the existing legislation. Theresa McClenaghan, from the Canadian Environmental Law Association, addressed supplier and contractor liability this way. She said:

Both aspects of the bill channel supplier and contractor liability to the operator or the licence holder for that absolute liability portion, but only on the oil and gas side is liability ever possible against suppliers and contractors and their negligence. On the nuclear side, that's never possible. The nuclear suppliers to that entire supply chain never have to consider the consequences of the decisions they are making around risk, and on the nuclear side as well as the oil and gas side, decisions are made every day around risk.

In its brief, CELA said:

...we would recommend amending Bill C-22 to bring suppliers and contractors into the liability framework in the nuclear sector, just as it does in the offshore oil and gas sector, and to remove the cap on liability so that the nuclear operators as well as others in the supply chain are liable for consequences of their negligence beyond their $1 billion insurance.

I could not agree more. We should not be allowing suppliers and contractors to engage in the nuclear sector with full immunity from any and all liability risks. Nuclear operators should be facing the full consequences of any negligence on their part, just like they do in the oil and gas sector.

Shawn-Patrick Stensil, a nuclear analyst from Greenpeace, agreed. He said:

At this time, in terms of liability, a reactor supplier has no obligation if an accident occurs. That is how the law is worded and that is also true of the new version. In our opinion, this is not a good thing. In the case of Fukushima, it was demonstrated that the designer, General Electric, was aware of the reactor's problems not only in design but also in manufacturing. That was not what caused the accident, but it did contribute to the radiation leaks into the environment. In any other industry, the Japanese could have sued the company.We therefore recommend that there be a right of recourse in that respect.The operator is always the entity that can be sued. However, a negligent supplier could be sued by the operator as he is in the best position to do so and thus obtain the largest amount of compensation for the affected population. That is what we are requesting.

Sadly, even this most reasonable amendment was rejected by the Conservatives at committee.

The same is true for another eminently reasonable amendment dealing with the health of Canadians. We moved an amendment that sought to increase the time frame for submitting claims regarding bodily injury, latent illnesses, and death. The current prescription for claiming damages due to injury and latent illness is 10 years. Bill C-22 would increase this to 30 years, but there is no medical evidence to suggest that health issues manifest and are then able to be identified within 30 years. On the contrary, from what we know about the mutagenic effects of radiation release and exposure, the government should have used this opportunity to include an additional generation to the time frame for submitting claims.

In an effort to strengthen this part of the bill, New Democrats moved an amendment that would have simply extended the time limit from 30 years to 50 years. However, even something as straightforward as that was met with Conservative opposition. Protecting the public interest was clearly not at the forefront of the government's objectives when drafting the bill.

It comes as no surprise, therefore, that the Conservative members on our committee would also vote down our amendment seeking to create meaningful and inclusive public consultation on this file. New Democrats moved an amendment that would require the review of the Nuclear Liability and Compensation Act to be made public, and that it be done in consultation with non-industry stakeholders and those not affiliated with the nuclear industry. Such an approach is crucial to transparency and accountability. As Dr. Edwards asked rhetorically at committee, “should there not be an opportunity for adequate public input and debate on the substantive pan-Canadian issues of equity that are involved? Shouldn’t citizens from provinces without nuclear power reactors be given the opportunity to comment on a bill that would potentially bind their children and grandchildren?”

The answer of course is yes; they absolutely should. However, that was not the answer we got from the Conservatives when we moved our amendment at committee. Those efforts too were voted down.

I know my time is almost up, but I do want to say just a few more things about the offshore oil and gas side of the bill. One of the cornerstones of the NDP's energy policy is sustainable development. It ought to be a guiding principle in all sectors of Canada's energy economy. However, as it is currently written, sustainability gets short shrift in Bill C-22. It de facto ignores those vital aspects of our world that cannot and have not been assigned a monetary value. The bill fails to provide any regulation-making provisions for the calculation of non-use environmental damages.

Here is what Professor Amos told our committee. He said:

...the Supreme Court of Canada recognized the availability at common law of natural resource damages, or damages which compensate for harm to non-use value...of the natural environment....However, natural resource damages claims at common law are currently subject to uncertainties. ...the process for assessing natural resource damages is ill-defined, reflecting a lack of baseline ecological information and the inherent difficulty in assigning monetary values to environmental values.

It is commendable that Bill C-22 includes the legislated imposition of liability for natural resource damages, including the explicit adoption of damages for non-use values. However, no regulation-making powers are included in Bill C-22 for the calculation of non-use damages. This is a serious gap, as significant regulations are needed to address the lack of baseline ecological information and the inherent difficulty in assigning monetary values to environmental values.

To close that gap, we moved an amendment to both quantify and account for the loss of non-use damages. We wanted to use the regulatory window to include the environment in assessing the scope and the cost of harm to the environment. Sadly, those provisions were never adopted, leaving the whole section on non-use damages deeply flawed.

None of our amendments were intended to tease the proverbial bears. We acknowledged that starting the debate on enhanced liability was a step in the right direction. However, failing to improve the bill represents a colossal wasted opportunity. We did not propose things that were radical or over the top. In fact, most of our amendments simply sought to bring greater fairness and balance to the legislation. Even our proposal to remove the liability cap altogether is not as radical as the government would like Canadians to believe. In fact, Germany, Japan, Sweden, Finland, Denmark, Austria, and Switzerland all have unlimited liability for nuclear power plants already. Even in the U.S., the absolute liability limit is $12.6 billion.

Do not let the Conservative response to that fool you, Mr. Speaker. Predictably, the Conservatives will try to suggest that an unlimited cap would encourage operators to claim bankruptcy instead of cleaning up after an accident.

However, that is looking at the problem upside down. New Democrats believe that liability has to be strong enough to ensure that a nuclear or offshore disaster never happens in the first place, and that operators will have to put the best safety measures into practice. That is how to protect the interests of Canadians, and frankly, they deserve nothing less.

Speaker's RulingEnergy Safety and Security ActGovernment Orders

September 15th, 2014 / 4:55 p.m.


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Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Mr. Speaker, the member talked about the very important issue of liability. There is no doubt that Canadians as a whole want to see more accountability for corporations in terms of developing our resources.

The question I have for the member is specific to the offshore oil and gas industry.

One cannot help but think of the economic benefits that Newfoundland and Labrador have experienced through a lot of offshore development. However, it would seem that the NDP position, or at least what the member seems to be implying, is that with any sort of offshore gas exploration whatsoever, any interested private sector company would have to provide, up front, the potential liability insurance for any potential disaster that may occur.

Could the member provide some clarification? What goes through my mind is the impact that would have had on today's oil and gas industry in Newfoundland.

Speaker's RulingEnergy Safety and Security ActGovernment Orders

September 15th, 2014 / 5 p.m.


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NDP

Chris Charlton NDP Hamilton Mountain, ON

Mr. Speaker, I welcome the question from my colleague specifically about the oil and gas offshore industry.

The member referenced Newfoundland, but it would be equally valid on the west coast. I appreciate what he is saying about unlimited liability seeming perhaps too high a threshold, which I suppose is what he is suggesting.

I would remind the member that the offshore BP gulf oil spill of 2010 is expected to cost as much as $42 billion for total cleanup. What the current government is proposing is that the company be on the hook for only $1 billion. If this happened in Canada, that would leave Canadian taxpayers on the hook for $41 billion.

To suggest that companies who engage in these activities ought to be liable in a polluters-pay-principle kind of way for their operations off our shores is not an unreasonable position. In fact, I dare say even members of the government, well not elected members from the government, but certainly bureaucrats who work for the government would agree.

I will read what Mr. Jeff Labonté, Director General, Energy Safety and Security Branch, Energy Sector, Department of Natural Resources, said when he was before the committee:

...I think providing for higher levels of liability provides a better level of protection. The higher the level of liability, the more likely that industry and actors within the community will take broader measures to be more preventative to help ingrain the safety culture that's expected of the operations.

Surely Canadians deserve to have the safety culture ingrained in their operations.

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September 15th, 2014 / 5 p.m.


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NDP

Raymond Côté NDP Beauport—Limoilou, QC

Mr. Speaker, I would like to thank my colleague from Hamilton Mountain for her very enlightening speech.

I have already had the honour of speaking to this bill in the House. What came out of the committee's work shakes me to the core and really scares me. I would like to quote Gordon Edwards, who had this to say about the problem of liability: “The exposure of the Canadian taxpayer is unavoidable under this legislation and it's unlimited. ...It is financial planning with no planning whatsoever.”

In other words, as with the Lac-Mégantic tragedy, the people responsible for those accidents will sneak away and the burden will fall on the taxpayers, the government, the provinces and the municipalities that may be victims of an accident.

Witnesses testified at only two meetings. I would like my colleague to tell me how those far-too-short meetings went and what the tone of the government representatives was.

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September 15th, 2014 / 5 p.m.


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NDP

Chris Charlton NDP Hamilton Mountain, ON

Mr. Speaker, I welcome the opportunity to comment on that again, because as I said during my comments in the speech, it was ridiculous. We had three meetings set aside at two hours each. Two sets of two hours to hear witnesses and then two hours to deal with this mammoth bill and for clause-by-clause consideration.

We did not have nearly enough time to hear from Canadians. Those who made submissions to our committee actually commented on the fact that they did not have enough time to give us thoughtful and in-depth expert opinion.

We were fortunate that some of the members I quoted, from Ecojustice, from CELA, from Greenpeace, gave us superb testimony, but my goodness, when we are talking about legislation that potentially deals with the equivalent of a Fukushima-type accident, which happened in Japan and cost $250 billion to $500 billion for cleanup, surely we should have taken our time in making sure that we have this piece of legislation right.

This is not only about taxpayers being on the hook for cleanup, that for sure is part of the equation, but equally important, as MPs in this House, it is our responsibility to make sure that we have legislation in place that prevents those accidents, those spills, from happening in the first place.

I am proud to serve in the caucus of a leader who was the environment minister in Quebec, who has years of experience and a proven track record on sustainable development, on environmental protection.

We had expertise to give and the time just did not allow us to do that job as fully as we would have liked.

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September 15th, 2014 / 5:05 p.m.


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Liberal

Geoff Regan Liberal Halifax West, NS

Mr. Speaker, I ask the hon. member if it is not the NDP position, essentially, that in this country the nuclear sector should not exist and should cease to exist. Is it the NDP position that in the oil and gas sector there should be no more exploration? What is its position in relation to this kind of resource development on both these issues?

Speaker's RulingEnergy Safety and Security ActGovernment Orders

September 15th, 2014 / 5:05 p.m.


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NDP

Chris Charlton NDP Hamilton Mountain, ON

Mr. Speaker, of course we acknowledge that the nuclear industry will be with us in the foreseeable future. What we on this side of the House would like to see is the government actually getting serious about investing in a diversified, mixed energy economy. To that end we would like the government to actually invest in new technologies, in green technologies, which is something the government has not done at all.

On the contrary, we have lost the renewable power production incentive and the wind power production incentive. Even something as beloved by Canadians as the eco-energy retrofit program for people's homes was gutted by the government.

Yes, we acknowledge that the nuclear industry will be part of our energy mix for some time to come, but we desperately want the government to diversify that mix, and we have not seen any commitment from the government. On the contrary, we are now taking steps backward.

Speaker's RulingEnergy Safety and Security ActGovernment Orders

September 15th, 2014 / 5:05 p.m.


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NDP

Ryan Cleary NDP St. John's South—Mount Pearl, NL

Mr. Speaker, I thank the hon. member for Hamilton Mountain for the way she summarized the shortfalls in the legislation. She was very thorough and she was eloquent in her speech as well.

I have also spoken on the legislation, and some of the immediate weaknesses in the legislation in terms of the absolute liability is the fact that it is not enough.

As the hon. member pointed out, there will be an increase in absolute liability from $30 million to $1 billion. That is a substantial increase, but when we compare it to other jurisdictions, as the hon. member pointed out, like the United States, for example, which has an absolute liability of $12.6 billion and where the case of the Deepwater Horizon, the 2010 spill in the Gulf of Mexico, has a total cleanup bill so far of $42 billion and rising, we can see that the $1 billion this legislation points out is not enough.

I have two questions for the hon. member for Hamilton Mountain. First, do we deserve any less in terms of absolute liability than the United States?

The second question is whether or not the increased liability could enhance the prevention of nuclear accidents or offshore oil and gas accidents.

Speaker's RulingEnergy Safety and Security ActGovernment Orders

September 15th, 2014 / 5:05 p.m.


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NDP

Chris Charlton NDP Hamilton Mountain, ON

Mr. Speaker, I welcome the question because both parts of it are spot-on. That is exactly what we should be focusing on in this debate.

I want to say that we had ministry officials, the minister's own advisers, before the committee. I quoted Mr. Labonté before. Let me do it again. Here is what he said:

...recognize that our liability levels were less than our peers and thus, we wanted to keep up.

If we wanted to keep up, why are we so far below the liability levels of our peers even now, even under this new legislation? Germany, Japan, Sweden, Finland, Denmark, Austria, and Switzerland all have unlimited nuclear liability for nuclear power plants in place already. Even in the U.S., as my colleague just rightly pointed out, the liability limit is $12.6 billion.

If we are taking this opportunity, the first in 40 years, to update the legislation, why not get it right? Why not do what the minister's own officials are suggesting and get us to the same level as our peers? We have failed to do that, and I think it is one of the reasons the bill is deeply flawed.

Speaker's RulingEnergy Safety and Security ActGovernment Orders

September 15th, 2014 / 5:10 p.m.


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Liberal

Geoff Regan Liberal Halifax West, NS

Mr. Speaker, it is a pleasure and an honour to be here today, in the House of Commons, to speak to Bill C-22.

The Conservative government has failed, on numerous occasions, to follow through on prior attempts to update nuclear liability legislation and update the safety and security regime for Canada's offshore. I am pleased to see that this legislation has finally come to third reading. Past attempts were started and then the government would either call an election or prorogue the House and not bring the bill forward. We have seen that with various government bills, whether it be on the Criminal Code or a variety of matters. The government introduces a bill with great fanfare and then we do not see it for months. It disappears, and the government does not present it again in the House. It is nice to see that finally we are getting somewhere in terms of this legislation moving forward because it does deal with an important issue in terms of nuclear liability and the liability for spills offshore.

I want to thank the witnesses who appeared before the natural resources committee to talk about this legislation. We would have liked to have heard a lot more from them, had we not been cut off a number of times, and had we not had a limited time of three days to consider the bill. I appreciate that they were willing to share their expertise, provide insightful comments, and give us their sage advice. We should all be thankful when experts appear before our committees.

Unfortunately, as is the case with much of the work conducted in committees of the House, the government restricted the scope of the study of this legislation. We all know that the government has the majority on almost all committees and can determine not only what the committee will study but the terms and scope of the study. It was very much restricted in this case. In fact, government members showed a distinct lack of interest in what we should have been doing, which was to make every effort to ensure that we ended up with the strongest possible legislation on this issue. If we think about the role of members of Parliament and our responsibility to hold the government to account and ensure that legislation is as good as possible, in my opinion, that did not allow us to do the job we ought to have been able to do, which is what committees are for.

If a member is a government backbencher or a member of the opposition and not a minister or a parliamentary secretary, then that member has the responsibility for holding the government to account. When governments have been going for a while, I have seen some members on the backbenches start to realize that. However, it would seem that we have fewer than ever with the Conservative government and we need to see more of that kind of attitude. There is a lack of interest in legislation that is focused on more than just the economic side of the equation, as in this case when we are dealing with the economy and the environment. We must do better than that in future.

The development of our natural resources and the strength of our economy depends on having good policies that people can have confidence in, so we can get community support for the kind of things that are happening or might happen in natural resources. If the government is seen as simply a cheerleader, as not being a responsible regulator, then we are going to have a hard time convincing Canadians that we are going to do a good job of regulating the natural resource sector. That is the fundamental problem that the government has at the moment.

The Liberal Party supports the development of our energy potential in Canada. We recognize the positive contribution that resource development has on our economic growth and job creation, especially for the middle class.

We also understand, and this is essential, that resource development must be done in an environmentally responsible and sustainable manner. It must be done through consensus building, which is something that is entirely lacking these days. The need is there to ensure that if an accident does happen, the proper regimes are in place to deal with an accident. Obviously a key part of that process is by making sure that legislation, like this legislation dealing with liability limits, is in place and that it protects our interests. With regard to Bill C-22, everyone in the House understands that there is a need to raise the absolute liability limit in terms of the offshore oil and gas sector and the nuclear sector.

Let us be very clear. Let us understand what this means. If we have a case where there is an accident, either at a nuclear site or in the offshore oil and gas sector, and negligence is proven by the operator, liability is then unlimited. The operator would have to pay for the entirety of the damages, whatever they might be.

What we are talking about is a case where negligence is not proven and the liability is absolute. This means that regardless of whether someone proves that the operator was negligent, it still has to pay, because the operator was undertaking this risky activity. That is what this is about.

That is the reason we have supported this legislation. It is going in the right direction. In the nuclear sector, it would increase the liability cap from $75 million to $1 billion, bringing Canada in line with the promises it made when it signed the international Convention on Supplementary Compensation for Nuclear Damage. In the offshore oil and gas sector, the absolute liability for companies operating in the Atlantic offshore would increase from $30 million to $1 billion, and in the Arctic, from $40 million to $1 billion.

With regard to the Arctic, as I was saying earlier when I asked the minister a question, there are still many unanswered questions. Is $1 billion adequate in the Arctic, where the environmental conditions make spill response efforts very challenging? There we are dealing with a situation where we are a long way from ports. It is a remote and isolated area, with difficult conditions.

We heard today that the minister has approved exploration licences, two of them in deepwaters in the Beaufort Sea. We heard at the natural resources committee a couple of years ago, at the time of the BP Deepwater Horizon well blowout in the Gulf of Mexico, that the technology did not exist to clean up a spill in the high Arctic in deepwater under ice.

It seems to me that this is a very irresponsible decision by the government when that kind of cleanup capacity is not there, yet we did not have a chance at the committee to get into this because the scope of our study was so restricted. That is most unfortunate.

Why did we not also take the opportunity to look at our ability to respond generally, and to review our ability to respond to other events and accidents in shallow water in the Arctic, or any kind of spill there? We did not get to that.

As my esteemed colleague from Ottawa South said in debate on Bill C-22, the committee should examine the question of response capacity and incident prevention in the Arctic. That should have been examined by the committee. I hope that the member is recovering well from a broken ankle that he unfortunately suffered not too long ago, and I look forward to his quick return.

Instead of being concerned that the science does not always exist to confirm how long ecological damage will last, the government has rushed through those Beaufort Sea exploration licences that I mentioned. That is perhaps why the government decided that the scope should be so narrow for our committee study.

The member for Ottawa South also correctly pointed out that while looking at the issue of nuclear liability, the committee should have addressed the question of what has been happening around the nuclear sector in the past eight years. I suspect that government members may have been told to avoid any discussion of how we are no longer a world leader in the production of nuclear power capacity, as we have been in the past. They may have been told to avoid discussion of how the government ran down the value of the AECL and sold it off at bargain basement prices, and how it compromised Canada's future with regard to nuclear energy. This is not to mention the production of medical isotopes, which has been so important, and where Canada has been one of the world leaders.

Part of the discussion at the committee around suitable liability limits should have been focused on how we see the role of nuclear power as part of the energy mix going forward. The committee, for example, could have looked at how nuclear might fit in with renewable power options in the future, and other energy sources, like geothermal or tidal.

Wind is another area that is very interesting these days. My province of Nova Scotia has tremendous wind resources. I suppose some might say MPs have good wind resources as well, but that is another kind of wind resource. I am not sure if my colleague appreciated that remark, but he seemed to agree.

I recently had the pleasure of meeting with Dr. Lukas Swan, a professor of engineering at Dalhousie University. He runs the renewable power storage lab where they are working with various kinds of batteries. However, the important thing is not so much the different kinds of batteries, as the examination of the different kinds of conditions that happen with wind turbines. Sometimes there will be different speeds and fluctuations, with all kinds of variables. They are trying to find out what works best in managing the batteries so that we can have more capacity.

At the same time, there is a new study going on in Liverpool, Nova Scotia, involving a company called LightSail. It started because of the research of a young woman from Dartmouth, Nova Scotia. She is a graduate of MIT and has developed new technology to store energy, in air basically, underground cabins that compress air. Previously there were problems with that, and she has created a new technology where a very fine mist can be sprayed so that heat is not created. Heat had apparently been a problem in this technology until now. There is a major trial project going on in Liverpool, Nova Scotia, thanks to the brilliant research of this young person, who is 26 years old and from Dartmouth, Nova Scotia. That is a marvellous example of renewable energy that is happening right here.

In fact, if we in Canada can get this right, if we can actually find a way to be successful with much better storage of electricity, we will overcome the problem of wind, which unlike the wind of some MPs of course, does not blow all the time. Wind does not blow all the time. Therefore variability is a problem when we want to have power. People want to turn on the television, a microwave, oven, or do the laundry, and not just when the wind is blowing. Getting this right so that we can even out the power supply with storage could make an enormous difference. In a place like Nova Scotia, it could remove the need for what we have now, which is power created by coal and natural gas, although more and more wind is playing an important role. We think tidal power is making very good progress, and we hope it will play a big role in the future.

It is unfortunate that the scope of the committee work was restricted. We did not get an opportunity to examine these important questions in a broader context. We could have perhaps ended up with a much stronger bill. It reminds me of a study that we did last year at committee on the cross-Canada benefits of the oil and gas sector. There is no question that there are benefits to that sector across this country. I am from Nova Scotia. We have natural gas off our shore, which is important. We have exploration by BP and Shell for oil, and that could have a positive impact on our economy. There are benefits across the country.

As I said before, it is the Conservatives who have majority at committee, so they have the ability to determine what a committee will study and what its scope will be. In having a study that looks only at the benefits, where we cannot ask questions about the cost, problems, challenges, or the downsides of an industry, we end up with a report that has no credibility with the public. It does not advance what we are attempting to do in creating a report that is credible, to tell of the impact across the country, both good and bad. Let us have a balanced approach and look at both of these things because there are benefits and there are costs that we need to examine. We need to make it more sustainable. We need to improve the performance of the industries. We have some that are good, but there is always room for improvement on the environment.

We all recognize that Bill C-22 is an important piece of legislation, particularly given some of the disasters we have seen recently around the globe. There was the devastating meltdown of the Fukushima Daiichi nuclear plant, which is estimated by the Japanese National Institute of Advanced Industrial Science and Technology to cost at least $31 billion; I heard a much larger figure earlier. The damages from the BP Deepwater Horizon spill, in the Gulf of Mexico, are estimated at $42 billion.

While this updated legislation is long overdue, we do need to ensure the level of liability is appropriate in relation to the level of potential damage of either a nuclear incident or an offshore spill. It is also relevant to consider how frequently these things occur. We have to examine those things. If we do not consider both of those, we have the view of the NDP, which is that we would not have the kind of exploration we have had off Newfoundland and Labrador and not have the economic benefit we have had.

We have to have a good regime that protects our environment, but let us have one that makes sense. Let us consider all of these things.

We of course need to make sure that Canadian taxpayers are not at risk and that the polluter pays principle is maintained. That is why it is important that if a company is negligent, it pays the whole shot, obviously. Let us keep that in mind.

The real question before us today is this: do we think the limit of liability for the nuclear sector should be at $75 million, or should it be $1 billion? For the offshore, should it be $30 million in the Atlantic and $40 million in the Arctic, or $1 billion? Which is it going to be?

In my view, the answer is fairly obvious. This bill is by no means perfect; it could have been much improved; it should have had much more study in committee; however, the answer is this bill should be supported.

Speaker's RulingEnergy Safety and Security ActGovernment Orders

September 15th, 2014 / 5:25 p.m.


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NDP

Andrew Cash NDP Davenport, ON

Mr. Speaker, it is an honour to rise in this place on behalf of my constituents in Davenport in Toronto.

I have to say that I am just a little confused about the Liberal position on this bill. The member is comparing the liability in this bill to accidents that have happened, Fukushima being one of them, in which the bill mounts beyond the $30-billion, $40-billion, $50-billion range, so I suppose the question is this: does the member think that $1 billion is enough, given the fact that the liability in the United States is over $12 billion? Does the member feel or believe that Canadians should be protected to at least the level that their American neighbours are protected, or is he happy with $1 billion?

Speaker's RulingEnergy Safety and Security ActGovernment Orders

September 15th, 2014 / 5:25 p.m.


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Liberal

Geoff Regan Liberal Halifax West, NS

Mr. Speaker, with all due respect to my hon. colleague, I think the question is actually this: do we think that we have to consider the environmental concerns and the impact of environmental disasters as well as the economic benefits of various activities? Do we consider both, or do we decide that we are not going to have any of these activities? The result of the NDP position on this issue would be that we would not have these activities at all. We would not have an offshore sector off Newfoundland and Labrador. Is that really what the NDP wants? They would not answer that question earlier. They would not say that they do not want that, but that is what flows from what they are saying.

Speaker's RulingEnergy Safety and Security ActGovernment Orders

September 15th, 2014 / 5:25 p.m.


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Liberal

Wayne Easter Liberal Malpeque, PE

Mr. Speaker, I appreciated the remarks from my colleague. I was not at the committee, but I am certainly concerned about the remarks that he made with reference to the committee, which seemed to describe the way that my committee operates too. There is a limited selection of witnesses, and it tries to narrow the focus of the study and not get to some of the broader issues.

In my area, liability would always be a concern, but I have to question the member. Liability is one side of the equation. What is the government doing in terms of prevention? In the fisheries in the gulf and on the east coast, fishermen are greatly concerned and are opposed to some of the exploration for oil development. That development could lead to an economic boom, but they are concerned because they do not believe enough preventive measures are being taken to assure the protection of the environment during that exploration and possibly during the drilling for oil and gas.

Therefore, my question is a broader one. Has the committee looked at those other issues from a preventive side rather than just from the liability side, as this bill seems to purport to do?

Speaker's RulingEnergy Safety and Security ActGovernment Orders

September 15th, 2014 / 5:25 p.m.


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Liberal

Geoff Regan Liberal Halifax West, NS

Mr. Speaker, as the member well knows, the fact is that the current government is not all that interested in prevention in general. We think of its attitude towards criminal penalties. In most cases the Conservatives are much more interested in penalizing people, especially in cases of criminality, than they are in prevention, and this is another example of that attitude.

As I was saying earlier, this is an area that the committee ought to have been able to study to see what is happening in this field and have experts tell us what is going on and what ought to be happening. I know that much more should be happening under the current government in terms of prevention.

However, the fact of the matter is that, again, the scope was restricted so much by the Conservatives in committee. The Conservatives, who have a majority, ended up with a scope so narrow that one was not able to get into it very much, and we had only three days to study the bill.

In the end, though, the question is whether we are better off with a limit of $30 million or a limit of $1 billion. I think the answer is obvious. In the utopian world of the NDP, perhaps it would be unlimited. Of course, then we would not have any of these activities at any rate. It is fine to think of living in utopia, but we do not.

Speaker's RulingEnergy Safety and Security ActGovernment Orders

September 15th, 2014 / 5:30 p.m.


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NDP

Ryan Cleary NDP St. John's South—Mount Pearl, NL

Mr. Speaker, there is no doubt that the bill would increase the absolute liability from $30 million to $1 billion, which is a good thing, and it is absolutely welcome. However, the increase would still pale in comparison to the absolute liability of the United States, which has been set at $12.6 billion U.S. That is $12.6 billion U.S. versus $1 billion Canadian.

The member for Halifax West seems to be suggesting that if we increase the absolute liability to any more than $1 billion, we would be killing the industry. However, if the United States can have an absolute liability of $12.6 billion U.S. for their industry, is the member saying that we cannot afford to have that same level of absolute liability set for Canadian waters and waters off Newfoundland and Labrador?

Speaker's RulingEnergy Safety and Security ActGovernment Orders

September 15th, 2014 / 5:30 p.m.


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Liberal

Geoff Regan Liberal Halifax West, NS

Mr. Speaker, this leaves me confused about what the NDP's position is. Is it in fact, as I have heard up until now, that absolute liability should be unlimited, or is it what the member is now proposing, which is the American level is of $12 billion?

This leaves me a bit confused. I am not surprised that I hear a confused response from NDP members on this issue, but I do not think it makes much sense to be unclear in the way that they are on this question.

As I said before, the fact of the matter before us is this: do we vote for a bill that would increase the limit in the offshore of Newfoundland and Labrador from $30 million to $1 billion, or do we not?

In my view, the bill is not ideal, but I have to decide whether it is an improvement and whether to vote for it or not, even if it is not the ideal. I know the NDP love the ideal, but we are not in the world of playing with ideals. We have to make a choice, and we are making the choice to move in the right direction, even if imperfectly.

Speaker's RulingEnergy Safety and Security ActGovernment Orders

September 15th, 2014 / 5:30 p.m.


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NDP

Raymond Côté NDP Beauport—Limoilou, QC

Mr. Speaker, were it not so disappointing, it would be pretty funny to see the hon. member for Halifax West mimicking the Conservatives. It is resignation on his part. He is giving up in the face of the challenge of trying to improve a bill that might have some relevance and a positive impact, but that stops far too short when it comes to the issues in question, whether we are talking about offshore oil development or the nuclear industry.

It is truly disappointing to see him use rhetoric, sophism, to bring everything down to “if you are not with us, you are against us”. If he is going to imitate George W. Bush, then maybe he could use his words. In any case, he could take the time to listen to our arguments to understand and see how woefully inadequate this bill is. That is why we are against it. I would like my colleague to explain why he gave up so quickly and why he is giving in to the Conservatives on a bill that is clearly inadequate.

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September 15th, 2014 / 5:30 p.m.


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Liberal

Geoff Regan Liberal Halifax West, NS

Mr. Speaker, I would like to thank my hon. colleague for his question.

I respect the NDP's right to take the stance that it has. If I understand correctly, they believe that absolute liability should be unlimited, even if there is no proof that there was any negligence. In my opinion, that would put an end to the oil industry in Newfoundland and Labrador and in Nova Scotia.

I respect their right to that opinion, but I do not agree with them. I believe that when we have the opportunity to improve the situation, by increasing the limit from $30 million to $1 billion, we should approve it. That is my opinion, but I respect their alternative position.

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September 15th, 2014 / 5:35 p.m.


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Saskatoon—Rosetown—Biggar Saskatchewan

Conservative

Kelly Block ConservativeParliamentary Secretary to the Minister of Natural Resources

Mr. Speaker, I will be sharing my time with the member for Wetaskiwin.

I appreciate this opportunity to speak to our government's proposal to modernize and strengthen Canada's nuclear and offshore liability regimes and how these proposed changes will ensure that Canada's safety system for these important industries continues to be world class. Knowing that some hon. members have had questions in this regard, I would like to specifically address the increase in the amount of absolute liability this bill would provide, an amount that not only meets but in many cases exceeds the standards set in other countries.

At the outset, I would like to remind my colleagues of the outstanding safety record of Canada's nuclear industry. We can be proud that it is second to none. Through decades of service, Canadian nuclear technology has a proven record for safety and reliability, a record for safety and reliability that matches or surpasses any in the world.

The regulatory framework for Canada's nuclear industry is similarly highly regarded around the world. It is solid and robust, supported by legislation such as the Nuclear Safety and Control Act and the Nuclear Fuel Waste Act, overseen by the independent expertise of the Canadian Nuclear Safety Commission. Together and with the industry's own commitment to excellence, this regulatory framework and independent oversight continue to assure Canadians that they can rely on our nuclear industry to be a safe, secure, reliable provider of clean electricity.

At the same time, our government is aware that one aspect of Canada's nuclear regulatory regime is not in keeping with international standards.

The existing Nuclear Liability Act has been in place since 1976. While the basic principles underlying the legislation remain valid, the act is almost 40 years old. It, indeed, needs to be updated to keep pace with international trends, including increasing the level of compensation to an adequate level in the unlikely event of a nuclear incident that leads to injuries or damage.

In fact, the liability limit would have been increased already had it not been for the ideological opposition that the NDP has for nuclear. Nonetheless, our government remains focused on establishing a modern liability regime to address potential civil damages that may result from a nuclear incident. That is precisely what Bill C-22 would do.

Bill C-22 would increase the amount of compensation available to address civil damage from $75 million to $1 billion. This amount is not only in line with current international standards, it is in fact significantly higher than the limits set by a number of what might be considered Canada's nuclear peers.

In the United Kingdom, for example, operator liability is currently capped at approximately $260 million, barely a quarter of the absolute liability that would be imposed by this bill. In France, a country with close to 60 power reactors, the operator liability limit is even lower, at about $140 million in Canadian funds. In Spain the limit is about $227 million in Canadian funds, in South Africa it is $240 million Canadian and in Belgium it is $450 million, less than half the liability amount that Bill C-22 would put in place in Canada.

I would also like to remind hon. members that we are talking about absolute liability. That means an operator is responsible for up to $1 billion in compensation for damages that may result from an incident, regardless of the cause, regardless of who is at fault and even if fault is never established or even alleged. This means Canadian taxpayers are not left on the hook. This bill would also require operators to demonstrate that they would have the financial capacity to deliver that amount.

I would remind hon. members as well that Bill C-22 would also serve to implement the provisions of the International Atomic Energy Agency's Convention on Supplementary Compensation for Nuclear Damage. By adhering to this convention, Canada increases its domestic compensation regime by up to $500 million by bringing in significant new funding from the other parties to the convention. In order words, the total potential compensation available in Canada could reach $1.5 billion.

It has been suggested that Canada should follow the example of the United States where nuclear liability limits appear to be higher. In fact, in the United States the individual operator's liability is capped at about $415 million in Canadian funds, again a fraction of what would be the case with this new legislation in Canada. It is true that in the event of an incident that resulted in damages in excess of an operator's liability insurance, the U.S. regime includes a provision for all operators of power reactors in the U.S. to contribute to a compensation fund, $125 million each for the reactors they own. The difference here, however, is that there are more than 100 power reactors in the United States. Such a system is not feasible in Canada where we have only 19 reactors and 4 operators.

In determining an appropriate limit for absolute liability, we must take into account, and this bill certainly does take into account, that liability must be within the capacity of insurers. Bill C-22 addresses the need for operators to provide appropriate compensation without burdening them with exorbitant costs for unrealistic amounts of insurance against events that are highly unlikely to occur in our country.

The $1 billion strikes a proper balance between providing adequate compensation for citizens for a nuclear incident and holding companies to account in the event of an incident. This amount is also well above the liability limit imposed on nuclear operators in many other countries and it is in line with limits that have been proposed in the E.U.

In summary, Bill C-22 would ensure Canada's nuclear liability regime meets the definition of “world class” in every respect, from the type of damages that can be claimed to the time allowed to make claims, to the $1 billion in absolute liability of nuclear operators to pay those claims. I urge all members in the House to support this important legislation.

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September 15th, 2014 / 5:40 p.m.


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NDP

Anne-Marie Day NDP Charlesbourg—Haute-Saint-Charles, QC

Mr. Speaker, I would like to read a quotation to the member.

The Canadian Nuclear Safety Commission requires that there be, at most, a 0.01% chance of any given nuclear reactor having a nuclear accident with core damage. For the 10 reactors in the Toronto area, a simple calculation demonstrates that this probability, over five years, is 10 times 5 times 0.01%, or 0.5%.

The probability exists. How can the member say that there is no risk to Canadians?

Speaker's RulingEnergy Safety and Security ActGovernment Orders

September 15th, 2014 / 5:45 p.m.


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Conservative

Kelly Block Conservative Saskatoon—Rosetown—Biggar, SK

Mr. Speaker, as I said, this act would modernize safety and security for Canada's offshore and nuclear energy industries. It would ensure a world-class regulatory system as well as strengthen safety and environmental protections. It builds on Canada's strong record and would ensure our energy sector could thrive. The $1 billion absolute liability would place Canada's regime squarely among those of its peer countries.

Speaker's RulingEnergy Safety and Security ActGovernment Orders

September 15th, 2014 / 5:45 p.m.


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Green

Elizabeth May Green Saanich—Gulf Islands, BC

Mr. Speaker, when looking at issues of liability, even though $1 billion in liability is certainly more money for which the nuclear industry would have to be responsible than in previous bills, the reality is, as we know from nuclear accidents, that $1 billion will not begin to cover the cost of a large-scale nuclear accident in Canada.

Initially, it was put forward as an excuse for holding it to $1 billion as a liability cap that if it were not there, it could affect provincial electricity rates. However, through questions on the order paper I had it confirmed that it would not affect provincial electricity rates to remove the cap.

I would like to ask my friend, the hon. parliamentary secretary, this. Would it not be more prudent to have no cap at all and to ensure that the nuclear industry, under the polluter pay principle, pays the full cost of the accident we hope will never happen, but could in fact happen any day in our country?

Speaker's RulingEnergy Safety and Security ActGovernment Orders

September 15th, 2014 / 5:45 p.m.


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Conservative

Kelly Block Conservative Saskatoon—Rosetown—Biggar, SK

Mr. Speaker, again, what we are talking about is absolute liability that will be paid in the event of an incident.

Operators will be expected to carry insurance to cover the costs of any incident should it occur. The $1 billion absolute liability will place Canada's regime squarely among those of its peer countries.

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September 15th, 2014 / 5:45 p.m.


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NDP

Ryan Cleary NDP St. John's South—Mount Pearl, NL

Mr. Speaker, the hon. member just said that the $1 billion absolute liability will put us “squarely among those of its peer countries”. However, the $1 billion pales in comparison to the absolute liability in the United States of $12.6 billion.

How can the member say that this puts us squarely among our peer countries when there is a difference of $11 billion or $12 billion? What is the member talking about?

Speaker's RulingEnergy Safety and Security ActGovernment Orders

September 15th, 2014 / 5:45 p.m.


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Conservative

Kelly Block Conservative Saskatoon—Rosetown—Biggar, SK

Mr. Speaker, it is not correct to say that the liability limit is $12 billion in the United States, as the member continues to assert.

The United States' system is very different from that of other countries. In fact, the operators' liability is capped at $375 million of insurance. In the event of an accident resulting in damages exceeding the liable operators' insurance, all U.S. operators, 104 reactors, would also contribute up to $125 million for each reactor they operate, which would make available a compensation pool of a maximum of $13 billion should it be required.

This type of pooling system would not be feasible in Canada given that we have far fewer nuclear reactors.

Speaker's RulingEnergy Safety and Security ActGovernment Orders

September 15th, 2014 / 5:45 p.m.


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Conservative

Blaine Calkins Conservative Wetaskiwin, AB

Mr. Speaker, I hope you had a great summer. It is nice to be back and to see all my colleagues here in the House. I trust that everyone had a great break. It is nice to see that we picked up right where we left off, in the spirit of co-operation here in the House.

I am pleased to participate in this important debate on Bill C-22. While it is not a topic around the barbecue circuit in my riding, be assured that it is very important that we discuss this. The bill is important, because it seeks to increase safety and accountability in Canada's offshore and nuclear liability regimes.

Most hon. members would know that Canadians are very fortunate. Canada has an extraordinary wealth of natural resources that other nations can only envy. In an increasingly energy-hungry world, we are among the world's leading energy producers of crude oil, natural gas, and uranium. With our vast energy resources, Canada is well positioned to play a leading role in meeting the world's future energy needs.

As the International Energy Agency has told us, traditional energy sources like oil and gas will continue to be the dominant energy source for many years to come. However, the world energy map is changing dramatically. In fact, global energy demand is expected to increase by about 40% from 2010 to 2035, with much of that new demand coming from Asia.

World energy demands are on the rise, and Canada has an enormous supply of energy to meet these demands. Growing energy demands in the Asia-Pacific and the developing world are ushering in a new era of energy use and opportunity for our great country. There are hundreds of major resource projects currently under way in Canada or planned over the next 10 years. They are worth approximately $675 billion in investment. That means hundreds of thousands of jobs for Canadian families, jobs in every sector of our economy and in every corner of our country.

With these opportunities on the horizon, our government is working to increase Canadian trade and investment and to expand Canada's energy infrastructure. That is why I would like to talk about the government's responsible resource development plan.

Our government's plan for responsible resource development is helping to ensure that Canada can seize these new opportunities and others to come. Our plan is sending a strong message that Canada is open for business and has a modern, efficient regulatory system. We have set firm beginning-to-end timelines for project reviews. Where provincial review processes meet federal requirements, we can get projects moving faster by eliminating the unnecessary duplication that has weighed down project reviews in the past. Our streamlined approach is providing clarity and predictability for project proposals. It is making international investments in Canada's natural resource sectors much more attractive. In a nutshell, it means that new projects and proposed infrastructure will be reviewed and approved to come on stream in a timely manner so that Canada can sharpen its competitive edge.

However, our plan is not just about developing resources efficiently. It is about developing them responsibly. Simply put, we will not approve any project unless it can be done safely. Let me assure members that we are committed to developing Canada's natural resources while strengthening our environmental protection. We firmly reject the notion that we cannot do both. Through our actions, we are proving that we definitely can.

Over the past year, our government has initiated a series of new measures to ensure the safe development of our natural resources. Through our plan for responsible resource development, we have introduced new enforcement mechanisms, including monetary penalties for non-compliance with environmental requirements. Oil and gas pipeline inspections have increased by 50% a year, and comprehensive audits of pipelines have been doubled.

While our government focused on increasing safety measures for our energy sector, what did the opposition do? They voted against more pipeline inspections, against implementing fines for companies that break the law, and against doubling the number of pipeline audits. That is truly a record of shame.

As part of our commitment to responsible resource development, our government promised Canadians that we would take action to maintain a world-class liability regime in Canada's nuclear and offshore energy industries. We have been clear: projects will only be approved if they are safe for Canadians and safe for the environment.

One of the key features of Bill C-22 is that it would raise the absolute liability limits in the offshore and nuclear sectors to $1 billion, bringing Canada's offshore and nuclear liability limits in line with similar regulatory regimes, such as in the United Kingdom, Norway, and Denmark.

As hon. members are aware, Canada's liability regime was founded on the polluter pay principle. With Bill C-22, we are fulfilling our commitment in the Speech from the Throne to enshrine this principle in law. This means that Canadian taxpayers would be protected in the unlikely event of a spill or accident. With the passage of this legislation, companies operating in Canada's Atlantic and Arctic offshore areas would be subject to one of the highest absolute liability standards in the world.

Canada's nuclear safety record is outstanding. In fact, there has never been a claim under Canada's Nuclear Liability Act. We have robust technology, a well-trained workforce, and stringent regulatory requirements. However, as a responsible government we must ensure that our security systems are always up-to-date and able to respond to any incident. That is why we are demonstrating our commitment by introducing legislation to strengthen Canada's nuclear liability regime.

Ultimately these measures are all about the same thing: acting responsibly by protecting Canadians and protecting our environment. This legislation would provide a solid framework to regulate the offshore and nuclear liability regimes in Canada to make them truly world-class. It would send a strong signal to the world that Canada is a safe and responsible supplier of energy resources and that Canada is also open for business.

Unfortunately, the NDP wants to shut down Canadian businesses by opposing the nuclear industry. As the leader of the NDP said, “I want to be very clear. The NDP is opposed to any new nuclear infrastructure in Canada.” That is not a responsible position.

The bottom line is that our government will not take any lessons from the opposition. We will focus on what matters to Canadians: ensuring that resource development is done responsibly and creating jobs, growth, and long-term prosperity for all Canadians.

I urge the NDP to abandon its reckless position and encourage all members to support this important legislation.

Speaker's RulingEnergy Safety and Security ActGovernment Orders

September 15th, 2014 / 5:55 p.m.


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NDP

Raymond Côté NDP Beauport—Limoilou, QC

Mr. Speaker, I would like to thank the member for his speech.

However, I will not hide the fact that I have many questions and concerns that he did not address.

My question is about a very specific topic, and that is damages associated with non-use value. This is an important principle that has been raised during debate on this bill. We can always quantify the economic value of a natural area, but we also need to look at other damages. There could be significant repercussions for communities.

With respect to marine areas, we were had by the Conservatives when they focused protection measures solely on commercially viable species, which overlooks the richness, the diversity and the complex interrelationships in a marine environment.

I would like to hear the hon. member's thoughts on the government's deliberate failure to include non-use value. It seems quite problematic to me. It is a huge loophole that companies could exploit.

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September 15th, 2014 / 5:55 p.m.


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Conservative

Blaine Calkins Conservative Wetaskiwin, AB

Mr. Speaker, the member is asking me a question in regard to changes made to the Fisheries Act, and the House is currently debating Bill C-22, which is nuclear and offshore liability changes we are proposing.

The reality is that everything under the absolute liability regime would be covered when it comes to the polluter pays principle. That would mean damages to people, damages to property, and damages to the environment. All of it would be covered under absolute liability. That is what the word “absolute” means. It is unfortunate that the hon. member does not understand that word.

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September 15th, 2014 / 5:55 p.m.


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Liberal

Geoff Regan Liberal Halifax West, NS

Mr. Speaker, I said earlier in my remarks on the bill that members on the Conservative side are only interested in one side of the equation, or they were in committee when we studied this legislation, but it is also true of the NDP and its position on the bill.

Does my hon. colleague not think that we ought to consider what tax revenue comes to Canada and its provinces from these industries? What revenue is there for Canadian workers who have salaries in the nuclear sector or in the offshore oil and gas sector? What revenue is there for pensioners who have pension funds or mutual funds that invest in these sectors?

We heard from the minister that going to $1 billion for absolute liability would increase the cost of insurance for these companies by eight or nine times. Could the member tell us if he knows what the NDP's plan of unlimited absolute liability would do to the cost of insurance for the companies in this sector? What would be the impact on these sectors?

Speaker's RulingEnergy Safety and Security ActGovernment Orders

September 15th, 2014 / 5:55 p.m.


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Conservative

Blaine Calkins Conservative Wetaskiwin, AB

Mr. Speaker, rare is the day when I have a colleague in the Liberal Party asking me to help him beat up colleagues in the NDP. However, I will take the bait, because here is what the NDP is proposing.

The NDP and the Green Party simply do not want nuclear facilities in Canada. I will answer my colleague's question directly. My understanding is that raising liability to $1 billion would cost the average household a couple of dollars a year on its utility bills to cover it. However, if we were to move to unlimited liability and the vast amount of liability being proposed by other parties, it would result in a hefty increase to those premiums. Ultimately, as we all know, regulated utility industries are regulated to the point where they will make a profit. That is the way those systems are set up, and those costs will be passed on through those energy utility boards in the various jurisdictions to those consumers. That much we do know.

It is a responsible approach to go to $1 billion of unlimited liability for the offshore sector for oil and gas and for nuclear liability. We have seen from various countries around the world that we are in line with what everyone else is doing. We are going to protect our environment but also not place an unreasonable burden. We will strike that right balance not only to protect taxpayers but to ensure that there is money left over on the kitchen table at the end of the month.

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September 15th, 2014 / 6 p.m.


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The Deputy Speaker Joe Comartin

Before resuming debate, I understand that there is a motion from the member for Leeds—Grenville.

Energy Safety and Security ActGovernment Orders

September 15th, 2014 / 6 p.m.


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NDP

Kennedy Stewart NDP Burnaby—Douglas, BC

Mr. Speaker, it is a pleasure to be back in the House after working in the constituency all summer. I am glad to see my colleagues' smiling faces around, all ready to co-operate as we move forward into this session.

I am pleased to rise today to speak to Bill C-22, an act respecting Canada's offshore oil and gas operations, and enacting the nuclear liability and compensation act. I will be splitting my time with the member for St. John's East whom, I am sure, will have lots to say about how the bill would affect Atlantic Canada.

I do have an admission to make. George Bush has been very influential in my life, and I somehow cannot seem to get nuclear and nucular straight sometimes, so I beg your indulgence, Mr. Speaker, if I do accidentally misspeak. I promise that is as far as I will go toward copying Mr. Bush.

I also thank the member for Hamilton Mountain for her hard work on the bill. She is an outstanding member of Parliament and also a great leader within the NDP. She has led the natural resources committee since taking over recently very well, so I thank her for her work.

Although we supported the bill at first reading, we did so with the hope that the committee would accept some of our amendments, would listen to the witnesses, listen to what we had to say on our side. Unfortunately, we will not be supporting the bill at third reading because we did not really feel we were listened to. We put forward 13 amendments, which we thought would improve the bill quite a lot, but the Conservatives rejected all 13 of those amendments.

I was formerly a member of the natural resources committee and quite enjoyed my time there. I found my colleagues on both sides to be open to suggestions, willing to bring in witnesses who were not partisan, and really conciliatory. I quite enjoyed my time in that committee. Even sometimes they would accept motions from the opposition parties for study, which I thought was quite good of them.

I do not actually think that the rejection of these amendments came exclusively from the members of the committee. It was probably from the PMO. As we know if we have been on enough committees in the House, no matter what kind of debate we are having or what kind of witnesses we hear from, we do have dictums that come from central office to say what exactly will show up in bills. Again, it is sad that this happens.

In fact, I think that perhaps this is related to the bill. There is a member of the natural resources committee from Saskatoon—Humboldt who has a private member's motion where committee chairs would have much more freedom over the content of their reports and also the committee agenda. I am proud to say I jointly seconded that motion and support it as it moves through the House, hopefully to enactment. That bill points out what should happen in committees.

However, I do think the members of the natural resources committee are reasonable on all sides and would do a very good job if they were freed from the constraints of the Prime Minister's Office. I really do not fault the natural resources committee for rejecting all our amendments, but we know that the all-seeing eye that is the PMO has probably made this happen.

My second comment about the bill is that it is all about energy, once again. It seems that all the time of the natural resources committee was spent talking about energy usage and disposal all across Canada. I find that this not only engages the natural resources committee but also the industry committee, which I have also sat on.

We have had many bills tabled in the House that specifically deal with how we use energy in Canada. This one is no exception. This one is about how we extract oil and gas or how we use nuclear power and what happens in the event of accidents. It is tied in to our consumption and usage of energy. It shows us a sliver of the complexity of energy usage in Canada.

For example, just to outline a little bit of what is included in the bill, it updates Canada's nuclear liability regime to specify the conditions to compensate victims following an incident at a nuclear power plant and the levels of liability of operators. That is needed. Every country in the world that uses nuclear power has to have these kinds of provisions. It is a needed step forward but a very small part of Canada's energy portfolio.

The second is dealing with oil and gas exploration off the coast. The measures in the bill are supposed to explain what happens in the event of an accident, so they are important. This is off the Arctic and Atlantic waters.

There are important issues that are dealt with in the bill. Although we know it has been tabled five times and finally coming through the House, whether it will make it all the way to the end I do not know. However, it is too bad that it was rushed through at this stage and none of our amendments were taken.

Part of our problem with the bill is that it does not really uphold the idea of polluter pays. It does discuss this notion but it does not really deal with polluter pays when it comes to the nuclear energy sector. For example, there are provisions in the bill, as I understand it as I was reviewing it again this morning, that allow the minister to make adjustments as to how much a company or operator would have to pay in the event of an accident. It does not mandate an inclusive consultation process for specific projects.

In my riding where this is not specifically related to oil and gas but the industry, when there is no proper consultation there are problems with getting the social licence from the local community. Therefore, whether it is pipelines, drilling offshore, or dealing with nuclear energy, if there is no proper consultation there will never be social licence and there will be problems.

We have had a pipeline rupture in my community in 2007. Because there was not an inclusive system in terms of how we deal with pipeline spills, there are still ripples within the community and real resentment toward the company for these types of accidents.

The other problem with the bill is that it removes company liability for oil spill chemical dispersants. That is also a problem because if we think that we have to clean up the oil and we use something that is as bad as oil or even worse, then there is no liability for the companies and we think that is a problem. I think the folks listening at home or reading what we propose would say that these are things that are worth including in the bill, but of course they have been rejected.

Our 13 suggested amendments were consistent with the principle of polluter pays, including the removal of the liability cap, which reduces taxpayer liability. As we have seen, these offshore spills, the BP spill in the gulf in the United States is a recent example, can run into the billions of dollars for cleanups. The liability cap right now is far below the costs of such a cleanup. Our amendments also included the principle of sustainability by adding non-use value damages, which are important to consider.

When I think about what we are debating here, what we are talking about, what is going through on this third reading, it is the whole idea of how we deal with energy in Canada. We do not have a comprehensive plan. Most countries in the world have a national energy strategy. They have not only a long-term view of what should happen in the country but also a comprehensive view, which is thematic. For example, in the United States energy security is probably the key principle of its national energy strategy and everything kind of falls from this key principle.

We have a sliver of a bill that deals with a very small component of our overall energy plans in this country. Unfortunately, it is not very comprehensive and non-inclusive. It is kind of a shallow vision instead of what we really need for Canada, which is a large vision. That is what people will get when they elect an NDP government in 2015.

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September 15th, 2014 / 6:10 p.m.


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Green

Elizabeth May Green Saanich—Gulf Islands, BC

Mr. Speaker, I thank my hon. colleague from Burnaby—Douglas for his important presentation. I share his concerns about the nuclear industry.

There has been no industry that constitutes such a giant white elephant in terms of its fiscal impact on Canadians. Contrary to what we heard earlier from a Conservative colleague, this industry has gobbled up about $40 billion in taxpayer subsidies. Removing the cap would not affect provincial electricity rates in any provinces that still use nuclear energy.

The reality is that, there but for the grace of God go we, every single event that occurred at Three Mile Island had previously happened in Ontario nuclear plants but not all on the same day and at the same reactor. Human error is always the biggest risk. As more reactors are brought on stream, the promises made when they are built are never fulfilled. We are always told they are going to be reliable and then we find that retubing is required or that the Point Lepreau reactor in New Brunswick is over budget, as always, or that it takes much longer than the government thought it would take. The government of the day in New Brunswick that approved retubing Point Lepreau ignored the recommendations of its own public utilities commission to do so. It ignored the advice, by the way, of the current leader of the Green Party of New Brunswick, David Coon, who clearly said more money would be wasted.

It is interesting to hear Conservative members defend an industry that has gobbled up things that they usually would have opposed, massive subsidies to something that simply cannot bear market forces.

I would ask my hon. colleague if he would not agree to just removing the cap on liability and making this industry pay its own way if, God forbid, we ever have a nuclear accident.

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September 15th, 2014 / 6:10 p.m.


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NDP

Kennedy Stewart NDP Burnaby—Douglas, BC

Mr. Speaker, there is a lot to deal with in the member's question.

Those of us who live on the west coast are very conscious of nuclear accidents. We were concerned about possible radiation coming on the shores of British Columbia as a result of the Fukushima plant accident. Government monitoring has been cut, so it is hard for us to determine the exact extent of this radiation.

However, I am quite excited about a new technology called fusion. A very active company in my riding called General Fusion is trying to move toward a much safer use of nuclear energy. I try to visit it every year and see its progress and it is going quite well. I am proud of its work and hopefully that technology will develop.

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September 15th, 2014 / 6:10 p.m.


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NDP

Anne-Marie Day NDP Charlesbourg—Haute-Saint-Charles, QC

Mr. Speaker, if there is one issue that sets us apart from the members across the way, it is natural resources.

Today, in response to a question I asked as to why nuclear energy was not included in Bill C-22, the minister more or less said—I do not have his exact words in front of me—that when disaster struck Japan, it was so bad—those are my words—that the government had to take matters into its own hands.

If I understand what this government is saying, we will pay once disaster strikes. Canadians will pay for everything that happens with regard to health, cancer, the environment, and cleanup. We saw what happened in Lac-Mégantic.

The NDP prefers to plan ahead. When a company sets up somewhere, can we estimate the environmental cleanup cost in the event of an accident? What would be the human cost and the health-related cost in the event of an accident?

We have to look at this from a sustainable development standpoint. That is the right approach. We need to have green development—we are indeed a green party—for our country so that Canadians can have what is best for them and their children.

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September 15th, 2014 / 6:15 p.m.


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NDP

Kennedy Stewart NDP Burnaby—Douglas, BC

Mr. Speaker, planning is essential and that is what we have been proposing since we were elected as the official opposition in 2011, and beforehand. My colleague from St. John's East could probably tell us how long we have been arguing for the need for a national energy strategy when we do forward planning, not only inclusive but comprehensive. That is greatly lacking on the other side. Those members are content to have foreign companies come in and do whatever they want in Canada. We think that is not the right way to go and more Canadians are agreeing with us.

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September 15th, 2014 / 6:15 p.m.


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NDP

Jack Harris NDP St. John's East, NL

Mr. Speaker, I am pleased to have an opportunity today to speak on third reading of Bill C-22. Third reading, of course, is the opportunity to debate the bill after the committee has, we hope, improved it during committee hearings by listening to experts from all sides, accepting recommendations from experts as to how the bill can be improved, and, in most Parliaments, accepting amendments from the opposition seeking to make the legislation better.

Unfortunately, in this Parliament we do not see much of that. In fact, it is very rare for amendments from the opposition to be accepted by the government, even when it agrees with them. In an incident during the debate on a justice bill, 88 amendments were made in committee; the government rejected them all, only to try to make them itself at third reading, and they were ruled out of order. That is how obstinate the government can be.

I spoke as well on second reading, and my colleagues in the NDP, the official opposition, as you may know, Mr. Speaker, supported this bill at second reading. We saw it as an improvement over the existing regime and we supported it in the collegial hope that when evidence was heard from experts in committee, their expertise, knowledge, and understanding would be taken into account and there would be a better bill at third reading. Unfortunately, the 13 amendments that were presented by the official opposition were all rejected by the government. Not only that, it limited the debate. There was a request for an additional week to deal with some of the debates and discussions that needed to take place, and that was refused.

I can say that there are some things New Democrats like about this bill, and I will repeat them because I think we are responsible for some of them.

This bill, in one form or another, without the oil and gas part of it, the nuclear side, has been before Parliament previously. This is, I think, the fifth time. At one time, the NDP was the only party that opposed the bill when the cap was raised from $75 million to $650 million. It is now up to $1 billion, so that is an improvement over what would have existed if the bill had gone through a couple of years ago, and New Democrats take credit for arguing that the $650 million limit was inadequate. There has been an improvement in that way, so we are pleased to say that we have had some effect on this aspect.

The real problem, of course, was that for some 38 years Canada's nuclear industry has had a cap of $75 million of liability. This is an industry that can cause enormous amounts of damage not only to the environment but also to the health of individuals for many years to come. We noticed that with the Fukushima situation in Japan, the Chernobyl disaster in Ukraine, and, of course, with Three Mile Island a number of years ago in the U.S. These were very serious accidents, and to say that we are going to have an absolute total liability of $75 million is clearly a direct subsidy to an industry—a licence, in fact, to not only pollute but also to cause extraordinary harm to the citizens of a country.

That is what we are talking about here. Some people might call it a subsidy to the industry, but it is also a licence to pollute, to destroy the environment, and to take risks.

One of the things about liability is the obligation to look after the damages that are caused. That is what the polluter pays principle is. If people pollute the environment and make a mess, they need to clean it up. If someone says they do not have to clean it up, there is going to be a bigger mess. Anybody who has teenagers in their homes knows that. If teenagers are told they do not have to clean up after themselves, that they can leave their dishes wherever they want and throw their clothes on the floor because someone else will look after that, then there are going to be a lot of messy dishes and a lot of clothes on the floor. Saying that people have liability and responsibility makes the operators, whether of offshore oil and gas or of a nuclear facility, care more about safety. Obviously there is going to be a safety regime, but it makes them take responsibility in a way that they might not otherwise and it gives safety a bigger priority.

The $1 billion sounds like a lot, but not when it is put into perspective. I heard the member for Wetaskiwin. I think he was trying to be reasonable. He said that the $1 billion liability is going to cost and that it will be the consumers who will have to pay for it. He said it would add $2 or maybe $3 a year to each consumer's electricity bill. I will take him at his word; I do not know the numbers. He must have some reference for those numbers.

However, if it was $5 billion liability, it would cost consumers $10 or $15 per year. We are talking about $1 a month. For the protection that we are talking about here, maybe that is reasonable. Maybe people opposite think it is unreasonable. I do not think it is unreasonable if we are talking about having protection versus not having protection and about having an incentive for a nuclear operator to pay greater attention to avoid accidents.

It is a little bit a question of degree, but it is also a question of principle. We have asked to see the polluter pay principle in both aspects of this bill. In the oil and gas section there is a $1 billion absolute liability, whether the operator is at fault or not, and in the case of fault on the part of an operator in the oil and gas industry, there is an unlimited liability. They have to find the resources or insure against the resources up to whatever the cost of the damage is.

It can be argued, and we would argue, that the $1 billion is enough in terms of absolute liability if we are looking at an accident in the Gulf of St. Lawrence or in the Arctic. Absolute liability means that it starts getting cleaned up right away, regardless of who ultimately has to pay.

That is what fault is all about. Lawyers will fight over who is responsible or what percentage of the fault lies with this party or that party. That is fair. I am not opposed to lawyers, as some people in this House seem to be. Lawyers have a role to play; I played one myself. The Speaker probably did a fair bit over his career as well. In the meantime, absolute liability is designed to make sure that the job gets done.

This is a question that has to be dealt with. Although the liability may be spread in fault after it is all over, and we are still seeing that in the Gulf of Mexico case with Deep Horizon, absolute liability means that it gets started right away. The work is done to clean up the damage that has been done because they are going to be responsible regardless of what the fault is, and we have that.

I am going to just end here. The reason we are not supporting the bill now is that it does not include the polluter pay principle on the nuclear liability side and it does not include the principle of sustainability. Even with the $1 billion absolute cap, it gives the minister the right to waive it or lower it at his discretion. That is the wrong thing to do, because it opens up the door to all sorts of lobbying and favouritism.

Everybody would lobby, presumably, because if it is available to them, why should they not? Why should they not seek an exemption? Why should they not seek to lower their liability because of the consequences it might have for shareholders of the company or for some other aspect of their operation?

Based on those problems, the failure to accept reasonable amendments to this bill, and the failure to recognize these principles in the bill, we cannot support this bill at third reading.

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September 15th, 2014 / 6:25 p.m.


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NDP

Hélène LeBlanc NDP LaSalle—Émard, QC

Mr. Speaker, I want to thank my colleague for his speech, which truly enlightened us about the possibilities and the limitations within this bill. I would like my colleague to elaborate on some of these limitations he talked about in his speech.

In his view, what improvements could be made to the bill? Can he talk about the NDP'S proposals to improve this bill that the government unfortunately left out?

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September 15th, 2014 / 6:25 p.m.


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NDP

Jack Harris NDP St. John's East, NL

Mr. Speaker, the improvements that we sought to make would have been to ensure that the principle of sustainability was contained in the bill and spelled out to demonstrate the requirement that there be a recognition of these principles of sustainability when one is dealing with inclusive participation, the precautionary principle, and equity or fairness with sustainable development between the environment and industry, but we do not have that. One of those aspects is, of course, the issue of absolute liability.

The total maximum liability for the nuclear industry is set at $1 billion. However, we know the extent of the accidents that have happened. Experts say that these accidents can happen somewhere in the world every 10 years, so it is not beyond the realm of possibility.

Obviously the industry tries to be as a safe as it can, but why should the people of Canada accept that liability beyond $1 billion when it seems that it is possible for the industry itself to accept it for a reasonable amount of money?

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September 15th, 2014 / 6:25 p.m.


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NDP

Raymond Côté NDP Beauport—Limoilou, QC

Mr. Speaker, I thank my colleague for his speech.

If we look at the nuclear sector specifically, one of the deficiencies of the bill is the issue of financial liability for all the suppliers and contractors working with operators. Right now, they are unfortunately not included and that might create problems in the supply chain, leaving only operators liable.

That seems problematic to me. I think my colleague will agree that, if all of the stakeholders in the supply chain are liable for problems and damages caused by a nuclear accident, we can obviously hope that they will adopt better practices. I would like to hear his thoughts on that.

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September 15th, 2014 / 6:30 p.m.


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NDP

Jack Harris NDP St. John's East, NL

Mr. Speaker, it is a bit complicated in one sense, but the insurance principle is basically that we spread the risk. The more people who share the responsibility, the easier it is to manage the risk. That is the basis of insurance.

Why should there not be liability for people who happen to be suppliers? If they are excluded from liability, then that seems to be a problem. We believe that they should be included in the responsibility for accidents. If they are participating in that industry, they should participate by bearing some of that risk themselves.

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November 7th, 2014 / 10:05 a.m.


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Conservative

Bob Zimmer Conservative Prince George—Peace River, BC

Mr. Speaker, I will be sharing my time with the member for Sarnia—Lambton today.

Mr. Speaker, I am pleased to join in the debate today on an extremely important piece of legislation: the energy safety and security act. The act would ensure the continued safety and security of Canada's offshore oil and gas and nuclear energy industries, helping to make a world-class regulatory regime even better while strengthening protection for Canadians and the environment.

Bill C-22 would modernize Canada's laws to ensure accountability in these industries and to protect taxpayers if a serious incident resulted in cleanup costs and compensation.

Our government has made a firm commitment, under our plan for responsible resource development, that no major resource project will proceed unless rigorous environmental protection measures are in place. Bill C-22 reflects this commitment by strengthening safety and security in Canada's energy sector by focusing on prevention, response, accountability, and transparency.

The energy safety and security act would give Canada one of the strongest liability regimes in the world, providing a solid framework to regulate Canada's offshore and nuclear industries into the future.

The legislation would also support the responsible promotion and development of our offshore and nuclear industries, which are essential to Canada's economy.

I would first like to speak about the strong regulations we have in our nuclear sector.

Canada has a proud and distinguished history in the development and application of nuclear technologies for peaceful purposes. Canada has been involved in almost every aspect of the nuclear industry, from uranium mining and processing to the development of our CANDU reactors for clean power generation to the production of medical isotopes. As well, in many aspects of nuclear science, including our regulatory regime, we have been world leaders.

The task of overseeing Canada's safety in the nuclear sector falls to the Canadian Nuclear Safety Commission, or CNSC, Canada's nuclear regulator. As hon. members are aware, the CNSC is independent with respect to licensing and regulatory matters. It reports to Parliament through the Minister of Natural Resources.

Our government places the highest priority on the protection of health, safety, security, and the environment in relation to nuclear activities in Canada. That is why we have ensured that the Canadian Nuclear Safety Commission has the resources it needs to do its mandated job.

The CNSC's compliance and enforcement system includes a number of enforcement actions, such as increased regulatory scrutiny, licensing, decertification, and prosecution. As part of our government's plan for responsible resource development, the CNSC has received an additional tool to ensure safety and environmental protection in Canada's nuclear sector: the Administrative Monetary Penalties Regulations. These new regulations authorize the use of financial penalties for violations of the Nuclear Safety and Control Act.

Our Canadian nuclear industry is strong. Unlike the NDP, our government is committed to taking the necessary steps to make it even stronger. If the NDP had its way, it would shut down the nuclear industry entirely, putting 17,000 highly skilled Canadian workers out of work and bankrupting Canadian businesses. This is obviously unacceptable

The government supports a strong and safe nuclear industry, and Bill C-22 further demonstrates our commitment to nuclear safety.

A key feature of Bill C-22 is the $1-billion protection it would provide. In the case of Canada's nuclear industry, we would be strengthening the liability regime to increase the amount of compensation available for civil damages from $75 million to $1 billion

Canadians can be assured that the CNSC would continue to diligently oversee all aspects of the Canadian nuclear industry to ensure that public health, safety, and security, as well as the environment, were protected.

I would now like to briefly touch on other parts of the bill that deal with the offshore.

Bill C-22 would also apply to oil and gas companies operating in the offshore, where we would be raising the absolute liability to $1 billion from its current levels of $30 million in the Atlantic offshore and $40 million in the Arctic.

With these measures, the energy safety and security act would reinforce, in unprecedented fashion, the polluter pays principle, which would protect Canadian taxpayers.

As hon. members know, on our east coast there are two independent offshore boards: the Canada-Newfoundland and Labrador Offshore Petroleum Board, and the Canada-Nova Scotia Offshore Petroleum Board. The accord acts give these boards the legal authority to regulate offshore oil and gas exploration and development activities.

Members of the offshore boards have professional expertise in various disciplines, including environmental protection, law, economics, engineering, and business. They are supported by highly qualified management teams and staff with extensive experience, including in the fields of environmental protection and safety. Each board ensures that operators exercise due diligence to prevent offshore spills. As a result, drilling cannot occur unless the responsible board is completely satisfied that drilling plans comply with federal regulations and are safe for workers and the environment.

With this in mind, we have worked closely with Nova Scotia and with Newfoundland and Labrador to update and expand legislation to ensure that Canada's offshore regime continues to be world class. Offshore installations and the equipment and training required to operate them must meet strict regulatory standards that are among the highest in the world. The Offshore Health and Safety Act, which received royal assent last spring, will further strengthen Canada's safety regime by giving the offshore industry a clear occupational health and safety framework that is enforceable by law and is free of jurisdictional uncertainty.

Bill C-22 would mean that companies operating offshore would have to have the financial capacity to meet the higher liability obligations. Before any offshore drilling or production activity could take place, companies would need to prove that they could cover the financial liabilities that could result from a spill. This legislation would also establish a cost-recovery regime for the operations of the offshore boards, oblige new requirements for transparency, and create new enforcement tools, such as administrative and monetary penalties.

In conclusion, our government knows that economic prosperity and environmental protection are not mutually exclusive. We are committed to protecting the safety of Canadians and the safety of the environment. Through our plan for responsible resource development, we have taken action to ensure that Canada's vast resource wealth can be developed responsibly by putting public safety and environmental protection first. With the passage of Bill C-22, Canada would have in place one of the most modern, efficient, and stringent offshore safety regimes in the world.

Our world-class standards are supported by strong environmental laws. We have worked closely with the governments of Nova Scotia and Newfoundland and Labrador to modernize this legislation to make Canada's already world-class safety regime even better.

Bill C-22 is yet another example of our government's commitment to being a leader in safety and environmental protection while ensuring that all Canadians benefit from the jobs, opportunities, and economic growth created by Canada's natural resources. I urge the New Democrats to stop their ideological opposition to resource development and urge all hon. members to allow the passage of Bill C-22.

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November 7th, 2014 / 10:10 a.m.


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Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Mr. Speaker, I want to reflect on the importance of offshore activities on the east coast, the number of jobs that have been generated, and the economic wealth that is being created because of the amount of exploration and drilling that is taking place.

The government is bringing forward legislation that would have a significant impact on the activities in that region. I am sure the member is sensitive to the fact that a number of stakeholders would want to participate in any discussion on legislation of this nature. Can the member indicate to the House to what degree the government has actually worked with different stakeholders in bringing forward this legislation?

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November 7th, 2014 / 10:10 a.m.


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Conservative

Bob Zimmer Conservative Prince George—Peace River, BC

Mr. Speaker, our government absolutely works with stakeholders across the country, especially in these areas that are affected to make sure that the plan works for everybody. We understand that natural resource development is key for our country and has been since Canada started as a nation. Absolutely, we will continue to consult with stakeholders, as we have in the past, to make sure that it is a good plan for everybody.

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November 7th, 2014 / 10:10 a.m.


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NDP

François Choquette NDP Drummond, QC

Mr. Speaker, I listened to my colleague's speech.

In his opinion, why have the Conservatives done nothing to comply with international standards before now? This bill will not allow us to catch up to our international partners. The Conservatives often brag that they want to be more like the United States, but the American government has adopted an absolute liability regime of $12.6 billion U.S.

Why, then, do the Conservatives not want Canada to adopt a regime that offers at least the same amount of protection as the U.S. regime? They are always saying that Canada is ahead of the United States, so why are they not showing leadership and attaining or surpassing the level of protection in the United States?

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November 7th, 2014 / 10:10 a.m.


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Conservative

Bob Zimmer Conservative Prince George—Peace River, BC

Mr. Speaker, we have nothing to be ashamed of on this side of the House. Absolute liability of $1 billion is significant, and there are further measures to capture more funds if it goes beyond that.

Canada is one of the top countries in the world in terms of the environment and developing natural resources. We care about them. I am from British Columbia. People in my province want to make sure that we can balance both, but we absolutely need natural resource development, as a country, to continue to prosper.

Again, $1 billion in absolute liability is significant and is among the top in the world.

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November 7th, 2014 / 10:15 a.m.


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NDP

Randall Garrison NDP Esquimalt—Juan de Fuca, BC

Mr. Speaker, I listened with interest to the member's comments on this bill. I know that he and his party are great advocates of the free market. I wonder why, in this case, they are putting forward a bill that relieves the nuclear industry of some of the pressures of the free market by, in a sense, subsidizing the risks involved in that industry. Why should the nuclear industry, just like any other industry, not bear the full cost of the risk? Why should the public pick up this expense for the nuclear industry?

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November 7th, 2014 / 10:15 a.m.


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Conservative

Bob Zimmer Conservative Prince George—Peace River, BC

Mr. Speaker, I am not sure I fully understand the question. In my speech I mentioned that we went from a $75-million liability to $1 billion. To me, that is a dramatic increase in liability for the proponent. I see it as quite an improvement to what existed before.

Again, Canada has nothing to be ashamed of. We care about the environment and resource development, and we will continue to do so.

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November 7th, 2014 / 10:15 a.m.


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Conservative

Rick Norlock Conservative Northumberland—Quinte West, ON

Mr. Speaker, my friend who previously spoke about liability for the nuclear industry was quite right in saying that we have gone from $75 million to $1 billion. I wonder if my friend could expand a little further. Among countries that have nuclear reactors, we recently saw with Fukushima that the government of Japan essentially took over the nuclear industry in that country because of the billions of dollars involved. I think it is now in excess of $12 billion.

Could my friend tell the House about the procedure in circumstances where liability exceeds $1 billion? I wonder if he could talk about it coming back to the House so that the government could ensure that the industry complies with the additional costs.

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November 7th, 2014 / 10:15 a.m.


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Conservative

Bob Zimmer Conservative Prince George—Peace River, BC

Mr. Speaker, the shift from $75 million to $1 billion in absolute liability is significant, but there is also a requirement that any proponents that go beyond that have to come up with the difference.

I would like to state again how important the nuclear industry is to Canada. It supports 17,000 jobs for Canadians and their families. We support the industry and want to make sure that it is environmentally sound but also competitive.

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November 7th, 2014 / 10:15 a.m.


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Conservative

Patricia Davidson Conservative Sarnia—Lambton, ON

Mr. Speaker, I would like to thank the member for Prince George—Peace River for sharing his time with me.

It is my privilege to speak to Bill C-22, the energy safety and security act. This legislation would ensure continued world-class safety and security for Canada's offshore oil and gas, and nuclear energy industries. It would enhance regulation and ensure that development is done in a manner that is safe for Canadians and safe for our environment.

Our government has been very clear, taxpayers should not be liable in the highly unlikely event of an incident in either of these industries. It is the company that must be held liable. The bill would deliver on the promise made in the Speech from the Throne to enshrine the polluter pays principle into law. As well, it would fulfill our commitment to provide $1 billion in protection to Canadians by raising absolute liability limits in both these sectors. Absolute liability holds the company responsible regardless of fault.

Canada has an enormous wealth of natural resources that generate significant economic benefits for Canadians. It is not an exaggeration to say that the resource sector is the cornerstone of Canada's economy. Natural resources account for nearly 20% of our gross domestic product, and 50% of our exports.

In fact, the energy, mining and forestry industries provide over $30 billion a year in revenue to governments, money that supports critical social programs such as health care and education. Furthermore, 1.8 million Canadians currently work in the natural resource sectors or in industries that service these sectors. Put another way, one in 10 Canadians work directly or indirectly for the natural resources sector.

Natural resource jobs are in every part of Canada from coast to coast to coast. Today, more than 30,000 aboriginal people work in energy, mining and forestry jobs throughout Canada, making the natural resources sector the largest private sector employer of aboriginal people.

There is true potential for massive investments in resource sectors in every region across Canada. It is estimated that hundreds of major resource projects are currently under way in Canada or planned over the next 10 years, worth approximately $650 billion in investment.

These investments will generate enormous economic growth and create hundreds of thousands of well-paying jobs in communities across Canada. Responsible resource development achieves the right balance to unleash the potential of our resource sectors to create high-value jobs across Canada while strengthening safety and environmental protection.

The legislation before us today will strengthen the growth of Canada's energy sector, and will protect Canadians and the environment. With respect to Canada's booming offshore oil and gas industry, the economy of Atlantic Canada has been truly transformed.

Over the past 15 years, Nova Scotia offshore oil and gas production has generated over $2.4 billion in government revenues and annually supports some 750 jobs. At the same time, Newfoundland and Labrador production has generated over $9.2 billion in government revenues and provides over 12,800 direct and indirect jobs annually.

Every stage of offshore petroleum activity, from exploration to production, is subject to strict regulations and oversight by the Canada-Nova Scotia Offshore Petroleum Board, and the Canada-Newfoundland and Labrador Offshore Petroleum Board.

Canada's environmental record is strong, and we are making it stronger by focusing on what matters to Canadians: jobs, economic growth and long-term prosperity. Our government manages Canada's offshore oil and gas resources jointly with the provinces. We worked in collaboration with Nova Scotia, and Newfoundland and Labrador to develop these changes.

Bill C-22 would hold companies to account in the case of an incident. By fulfilling our promise in the Speech from the Throne and enshrining the polluter pays principle into law, we are ensuring the continued success of offshore development.

In the Atlantic offshore we are increasing absolute liability from $30 million to $1 billion. We are also increasing the offshore absolute liability in the Arctic from $40 million to $1 billion. This means that companies are responsible for damages up to that amount, regardless of whether they are at fault for the incident. As is currently the case, we would continue to maintain unlimited liability where fault or negligence is proven.

Additionally, companies would need to demonstrate that they have $1 billion in available financial capacity. The bill would make companies responsible for their product and require them to pay for any damage caused. The bill would also strengthen the transparency of our safety regime by giving the public access to emergency planning, environmental plans and other documents filed with regulators. We feel strongly that the public deserves access to this important information and we will make sure that they have it.

Through our government's actions, oil and gas companies operating in the Atlantic and Arctic offshore would be subjected to the highest safety and liability standards in the world.

As my colleagues have mentioned, the energy safety and security act would also strengthen Canada's system for nuclear liability. It places Canada in line with internationally accepted compensation levels and significantly increases the operator's absolute liability for civil damages from $75 million to $1 billion. This increase brings Canada in line with modern western nuclear power generating countries.

This is an important aspect for Canadians because they want to be assured that nuclear power generated in Canada is done safely. Of course, the safety and security of this sector is paramount to the bill and I am proud that we are taking steps to update the liability limits for nuclear.

It is unfortunate that the NDP continues to oppose thousands of jobs in the nuclear sector and the non-emitting electricity generated by nuclear power. I do not need to remind Canadians of the importance of our energy sector. Most willingly acknowledge the huge role that it plays in our national economy and many Canadians would even suggest Canada is blessed with an abundance of resources. The question is why any responsible party would attempt to minimize or negate the importance of one of the most important players in the energy sector, the nuclear industry, as it relates to the overall economic well-being of Canada.

While other parties refuse to support hard-working Canadians or the creation of high-paying jobs across the energy sector, our government is moving forward to ensure that we have world-class safety standards for the benefit of all Canadians, which will in turn lead to even better economic opportunities for all.

In conclusion, the energy safety and security act offers Canada a solid, modern framework to regulate the offshore and nuclear liability systems in Canada for decades to come. Despite the divisive nature of the debate against Canada's development of our various natural resources, the truth that many Canadians realize is that economic prosperity and environmental protection can both be achieved.

Canadians trust our government to grow the economy, create jobs and responsibly develop Canada's resources.

Energy Safety and Security ActGovernment Orders

November 7th, 2014 / 10:25 a.m.


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Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Mr. Speaker, the member is quite right in her assertion of just how dependent Canada is on our natural resources, which employ a good number of people from every region of our country. She also put emphasis on our aboriginal and first nation communities. There is no doubt there is a great deal of reward economically.

My question is with regard to the idea of having a social contract related to the development of our natural resources, and therefore, being able to have sound environmental laws, but along with that, ensuring that there is a sense of working with the public as a whole. When we look especially at some of the pipeline issues, we have found that the government has fallen short on getting that social contract with Canadians.

Could the member provide some thoughts as to why she believes the government has not done as well on that aspect of developing our natural resources?

Energy Safety and Security ActGovernment Orders

November 7th, 2014 / 10:25 a.m.


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Conservative

Patricia Davidson Conservative Sarnia—Lambton, ON

Mr. Speaker, I am pleased to respond to that member's question.

We need to remember that Bill C-22 would do four important things. It would raise the absolute liability for companies operating in the Atlantic offshore. We talked about that. It would also raise it in the Arctic. It would amend the agreements that are in place with both the Canada-Nova Scotia Offshore Petroleum Board and the Canada-Newfoundland and Labrador Offshore Petroleum Board. In the nuclear sector, it would increase the absolute liability amount to $1 billion. It would also take steps to replace the 1976 Nuclear Liability Act.

There are other things that this bill would do. Coming from an area such as Sarnia-Lambton, I am well aware of the importance of the energy sector to our economy and the safety and environmental issues that are inherent in that energy sector. I am also well aware of pipelines. We probably have an inordinate number of pipelines in my area, far more than in any other area in this country.

Bill C-22 also puts in place some other measures that would provide an improved response, a stronger accountability and greater transparency. Therefore, I am looking forward to all members supporting the bill and getting it passed quickly.

Energy Safety and Security ActGovernment Orders

November 7th, 2014 / 10:30 a.m.


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NDP

François Choquette NDP Drummond, QC

Mr. Speaker, of course a $1 billion liability seems like a lot. It is an improvement.

Nonetheless, my colleague surely knows the estimated cost of the 2011 nuclear disaster in Fukushima. In case she does not remember, I will remind her that it is $250 billion. There is a huge difference between a $250 billion liability and a $1 billion liability, a $249 billion difference, to be exact. The federal government would have to subsidize the rest of the repairs and upgrades, and that means it would fall to Canadian taxpayers and the people of Drummond. I do not think the people of Drummond would be pleased to learn that.

How will my colleague explain to her constituents that if there were ever a nuclear disaster like the one in Fukushima, it would be up to Canadians to pay $249 billion?

Energy Safety and Security ActGovernment Orders

November 7th, 2014 / 10:30 a.m.


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Conservative

Patricia Davidson Conservative Sarnia—Lambton, ON

Mr. Speaker, this is a point that we need to be clear on. Bill C-22 would raise the liability limits for the operator to $1 billion. We know we needed to do that. We were operating under a nuclear bill that was several years old and needed to be updated. We know when we compare the billion-dollar operator liability to other countries that this will put Canada among the highest limits in the world.

The United Kingdom, France, Spain and other European countries are moving to an operator limit of $1 billion. They are not there yet but they are thinking of going that way. Other non-European nations, including South Korea, South Africa and Argentina, have lower liability limits.

We ask, “Why not move it higher?” We know that in the aftermath of Fukushima the Japanese government had to step in and bail out the operator. In the highly unlikely event of an incident that exceeded the billion dollar limit, the Minister of Natural Resources in Canada would be required to table a report before Parliament containing estimates of the costs of the damages from the nuclear incident. That report would provide government the opportunity to make recommendations on the desirability of additional compensation beyond the liability limit based on relevant consideration at that time.

Energy Safety and Security ActGovernment Orders

November 7th, 2014 / 10:30 a.m.


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NDP

Jinny Sims NDP Newton—North Delta, BC

Mr. Speaker, it is my pleasure to rise today in opposition to Bill C-22. It is called “an act respecting Canada's offshore oil and gas operations, enacting the Nuclear Liability and Compensation Act, repealing the Nuclear Liability Act and making consequential amendments to other acts”. I suppose, compared to some other names I have seen for bills coming before the House, this one is not as reactionary or volatile.

I have a major concern. We are dealing with a piece of legislation that is critical, and I am hearing that from colleagues on the other side. First, it took them forever to bring the bill here. They could have done it a long time ago. Now they keep moving time allocation on it. Here we are, once again, speaking to a bill, and it is one out of eighty bills that has had time allocation.

This is getting to be ridiculous. I urge my colleagues to take a serious look at that. Not only has the government placed time allocations in the House, but at committee stage it prevented a full array of experts and other witnesses from coming forward to present testimony so that the legislation can be well thought out and based on opinions of those in the field. It prevented experts from talking, who know a lot more about this issue than many parliamentarians in the House.

Once again, we, as parliamentarians, have been denied access to that kind of expertise and science. Knowing the government's allergic reaction to science and expert opinion, I should not be surprised, but I am still very disappointed.

I have heard a number of times today that the bill is an improvement on what we have. I agree.

Mr. Speaker, I forgot to say that I will be splitting my time with my esteemed colleague, the member for Nanaimo—Cowichan. My apologies to her.

The bill has taken a long time to come here. The changes are long overdue, but once again my colleagues across the way have failed to address fundamental issues that need to be addressed.

I always hear from my colleagues about how the U.S. does it, and that if the U.S. is dropping missiles into Iraq we have to follow because we are very close friends. However, it seems in this case that they are quite willing to ignore what the U.S. is doing in this area, and what other countries are doing. Germany, Japan, Sweden, Finland, Denmark, Austria, and Switzerland have unlimited liability for nuclear power plants. We are not talking about one or two countries;.this is a series of countries that I have listed.

The Conservatives have set the bar even lower than the U.S., the closest to us border-wise. That causes me major concern. When it suits us, we have to be like the U.S. and follow it here and there. However, when it does not suit us and it concerns the pocketbooks of Canadians and our future well-being, then they are quite willing to look the other way.

Even the U.S. has standards that are much higher than the ones proposed in the bill. The U.S. has an absolute liability regime of $12.6 billion U.S., compared to $1 billion. We can all see, even my grandchildren in school would be able to see, that there is a huge difference there.

However, if the companies are not paying, guess who is paying? It is the taxpayers. The current government, which is always talking about being good managers of taxpayers' assets, in this case is willing to land the taxpayers with billions and billions of dollars worth of liability. I am not exaggerating. We only have to look at what has happened in the past when it came to cleanup.

It is not as if we do not have any examples. We can look at the cost of cleanup around Japan's 2011 Fukushima nuclear disaster. The Japanese government estimates that the cleanup for the nuclear disaster at the Fukushima Daiichi plant could be over $250 billion.

I am not grabbing these numbers out of the air. This is a country that has experienced that reality, and it is giving us its best opinion. Japan has already spent well over hundreds of billions on this.

What do the so-called smart economic managers for our Canadian taxpayers do, who are sitting on the other side? They are proposing a total liability of $1 billion. That does not speak well for being good managers of taxpayers' money.

We are pleased to see that the bill would bring some changes, which include unlimited liability for gas and oil companies. Coming from beautiful British Columbia and being very proud of our pristine coastline, we are very concerned. We want to see obstacles put in the way so that the business community, oil explorers, and other companies, will make sure that they take every precautionary step possible to avoid a leakage, spill, or any other kind of disaster.

If this measure is good enough for the oil and gas industry, it should be good enough for the nuclear industry as well. I am finding it very hard to get my head around why we would treat two industries so very differently. Neither industry is new; they are both well established.

After years of experience as the environment minister in Quebec, I believe that the NDP leader knows environmental protection and sustainable development inside and out. I absolutely believe that he would not support, nor would he bring forward, legislation that would put liability for nuclear companies at only $1 billion.

Subsidizing the most profitable industries in the country and leaving taxpayers on the hook for a massive nuclear disaster or oil spill does not make sense. However, the Conservative government would do exactly that.

I would say that the Conservatives are going against the common sense test. If I were to put this idea forward to a grade 5 class in my riding, they would say “Really? That's not fair”. It is not right, and it concerns me. I think it is shameful that we have a bill before us that does not put the interests of the taxpayers before narrow corporate interests, and that is what we are seeing here.

I will finish with wishing everyone in the House a happy and productive week in their ridings. I know that all of us will be participating in Remembrance Day ceremonies, which are always filled with pathos, sadness, and memories as we honour those who sacrificed for us. However, this year, in light of the events we have personally experienced here, they will take on a different level of poignancy.

Energy Safety and Security ActGovernment Orders

November 7th, 2014 / 10:40 a.m.


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Conservative

Patricia Davidson Conservative Sarnia—Lambton, ON

Mr. Speaker, I listened intently to the remarks that my colleague made. If I heard her correctly, she stated at the beginning of her speech that this legislation was long overdue and she was wondering why it has taken the government so long to bring it forward. I am a bit curious about that comment. If I recollect correctly, this is about the fifth time that we have introduced legislation on this important issue, and each time it has been opposed by the NDP.

Does the member opposite not agree with stronger accountability, improved response, and greater transparency when it comes to nuclear operations?

Energy Safety and Security ActGovernment Orders

November 7th, 2014 / 10:40 a.m.


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NDP

Jinny Sims NDP Newton—North Delta, BC

Mr. Speaker, it is a bit rich to hear about transparency and accountability from that side of the House. It is absolutely because we want accountability and transparency, and because we want the polluter pays principle applied to the nuclear branch as well, that we are opposed to the bill. The bill is deficient. We would not be doing our homework.

I hear about the minister. This legislation proposes to give discretionary power to the minister that could lower the amount from $1 billion. That seems asinine to me.

This is not about transparency or accountability. This is about doing favours for the government's corporate friends.

Energy Safety and Security ActGovernment Orders

November 7th, 2014 / 10:45 a.m.


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Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Mr. Speaker, the issue of liability insurance could be of great interest to many people with regard to the cost of acquiring it. There is a need for government to get engaged sometimes, and the best example I can come up with was after the 9/11 disaster when the government had to get involved in terms of insurance in order to secure air flights.

Does the member believe that at some point limits should be put on liability insurance, or should it be 100% recoverable through insurance? I am referring to companies that want to drill or export or transfer oil, or deal with nuclear material.

Energy Safety and Security ActGovernment Orders

November 7th, 2014 / 10:45 a.m.


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NDP

Jinny Sims NDP Newton—North Delta, BC

Mr. Speaker, I feel that it should be polluter pays, and at no time should taxpayers be burdened with the cost of cleanup, whether it is nuclear material, oil, or gas.

Energy Safety and Security ActGovernment Orders

November 7th, 2014 / 10:45 a.m.


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NDP

Marc-André Morin NDP Laurentides—Labelle, QC

Mr. Speaker, I would like to ask my colleague two or three questions.

Assuming there is no limit to how much an oil company can get out of the ground, if an oil deposit contains $20 billion worth of oil, the oil company will take that $20 billion worth of oil. Since the resource potential is unlimited, why should the company's liability be limited? What are we supposed to tell people if a company causes damage in excess of $1 billion?

Energy Safety and Security ActGovernment Orders

November 7th, 2014 / 10:45 a.m.


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NDP

Jinny Sims NDP Newton—North Delta, BC

Mr. Speaker, I always appreciate the insightful conversations that I have with my colleague and his thoughtful contributions in the House.

If we believe in the principle of polluter pays, then that has to be applied consistently. We cannot pick and choice and say that it will apply to one industry but not the other.

My friends across the way have commented that a report will be made to Parliament. What difference would that make? It would be great to have a report that says it costs more than $1 billion, but at the end of the day, who is going to pay for the cleanup? Companies are not going to pay. Taxpayers are going to end up paying, and that is unacceptable.

Energy Safety and Security ActGovernment Orders

November 7th, 2014 / 10:45 a.m.


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NDP

Jean Crowder NDP Nanaimo—Cowichan, BC

Mr. Speaker, I am sure the public is well aware that we are debating Bill C-22, an act respecting Canada's offshore oil and gas operations, enacting the Nuclear Liability and Compensation Act, repealing the Nuclear Liability Act and making consequential amendments to other acts.

This legislation has a number of sections, but the part that I will focus on is the fact that it would modify Canada's civil liability regimes for the offshore oil and gas industry and it would notably increase the absolute liability threshold to $1 billion to operators of offshore oil and gas and nuclear facilities. The current threshold for offshore oil and gas operations are $40 million in the Arctic and $30 million for all other offshore areas.

Offshore drilling does not take place in all parts of Canada. The legislative summary points out that, in addition, offshore exploration activity is currently being conducted in Newfoundland and Labrador and Nova Scotia. Offshore petroleum wells may also be drilled in the Beaufort Sea. Drilling programs there are undergoing a regulatory screening process. In addition, offshore basins near Nunavut's high Arctic islands and in the eastern Arctic may be developed in the future.

Currently, there is a federal moratorium on oil and gas activities in place on the offshore of British Columbia. In Quebec, a provincial moratorium exists on the oil and gas offshore activities in the Gulf of St. Lawrence. A permanent prohibition on such activities applies in waters northwest of the Gulf of St. Lawrence and its estuary.

What we have heard from the other side is that the New Democrats should approve and support whatever bill the government brings forward. One member talked about the fact that this was all about jobs. Any responsible member of Parliament must, first, do their due diligence. However, second, when we talk about resource development and issues pertaining to resource development, we need to consider them in the economic, environmental and social contexts. We would be irresponsible if we did not take a very broad view of any resource development that happens in Canada and the consequent liability.

The NDP has been critical of this bill on a number of fronts, but there are three principles of sustainable development: equity, precautionary principle and broad inclusive participation. Bill C-22 would not uphold the polluter pays principle in the nuclear part of the bill and it would fail to create an inclusive consultation process for projects. It would allow the minister to be subject to lobbying, thus reducing the minister's accountability.

Bill C-22 would not mandate a solid inclusive consultation process for specific projects, which is essential, given the potential impact these projects could have on the quality of life and well-being of concerned communities and regions.

The government's proposed $1 billion cap for offshore drilling would apply to no fault liability, while operators would continue to face unlimited liability should they be found at fault or negligent. Companies would also be required to demonstrate to the regulators their financial capacity to cover $1 billion in cleanup costs should it become necessary. It would also increase coverage for exploratory drilling operations offshore, production operations, the loading of tankers for transport and undersea pipelines, such as natural gas from Sable Island to the Mainland in Atlantic Canada.

Here is the sticker. The bill would provide for ministerial discretion to reduce absolute liability levels to below the legislative level of $1 billion. This discretionary provision could undercut the advantages of the legislative increase in the absolute liability limit contained in Bill C-22.

The legislative summary refers to section 2.1.4.2 under “Public Hearings”. Bill C-22 would add new sections to the Canada oil and gas operations, allowing the National Energy Board to conduct a public hearing in relation to the exercise of any of its powers or the performance of any of its duties and functions under the act.

The New Democrats absolutely support a public process with regard to reviewing applications that come forward around resource development. However, I want to highlight the fact that the National Energy Board has been subject to some pretty severe criticism with regard to its operations. Simply because it is in this bill that the National Energy Board would be able to conduct a public hearing, it does not give us any confidence about how that public hearing would be conducted, who would be involved and whether the information would actually be considered.

I want to turn to a letter dated October 30, that was sent to the secretary of the National Energy Board. It is about an intervenor making a licence withdrawal from the hearing on the Trans Mountain expansion project. I will read an excerpt from this letter, because again, if the legislation mentions it but we do not have confidence in the process, why would we support it? In this letter, the intervenor says:

The unwillingness of Trans Mountain to address most of my questions and the Board’s almost complete endorsement of Trans Mountain’s decision has exposed this process as deceptive and misleading. Proper and professional public interest due diligence has been frustrated, leading me to the conclusion that this Board has a predetermined course of action to recommend approval of the Project and a strong bias in favour of the Proponent.

In effect, this so-called public hearing process has become a farce, and this Board a truly industry captured regulator.

If the government is to review applications in sensitive offshore areas like the north and if this is the kind of process to which these reviews would be subject, it does not leave us any confidence that we will end up with the best kinds of decisions.

The letter goes on to say:

In addition to gutting the oral-cross examination feature of a public hearing process that supports proper questioning and an adequate level of due diligence, there are other Board decisions that have been made over the course of this hearing that reflect a pre-determined outcome.

The evidence on the record shows that decisions made by the Board at this hearing are dismissive of intervenors. They reflect a lack of respect for hearing participants, a deep erosion of the standards and practices of natural justice that previous Boards have respected, and an undemocratic restriction of participation by citizens, communities, professionals and First Nations either by rejecting them outright or failing to provide adequate funding to facilitate meaningful participation.

Certainly in British Columbia that continues to be an ongoing source of irritation, which is probably too light of a word. However, many people who want to intervene in an NEB process simply do not have the capacity to review the thousands of pages of documents and to present a finding, so funding becomes critical, particularly with regard to first nations communities that will be directly impacted by projects.

It is a lengthy letter, so I cannot read it all, but further in the letter the intervenor indicates:

The Board had stated that the elimination of cross-examination of the Proponent’s evidence can be evaluated through the two scheduled Information Requests. But we have a Kafkaesque outcome. Trans Mountain refuses to answer questions and the Board does not compel them to do so.

We have a proponent that can say whatever it wants, yet intervenors have no ability to question it, because the board will not allow the questions.

The intervenor goes on to say:

The Province of British Columbia stated that “Trans Mountain’s failure to file the evidence requested by the Province in Information Request No. 1 denies the Board, the Province and other intervenors access to the information required to fully understand the risk posed by the Project, how Trans Mountain proposes to mitigate such risk and Trans Mountain’s ability to effectively respond to a spill related to the Project.”

The National Energy Board is not fulfilling its obligation to review the Trans Mountain Expansion Project objectively. Accordingly it is not only British Columbians, but all Canadians that cannot look to the Board’s conclusions as relevant as to whether or not this project deserves a social license. Continued involvement in the process endorses this sham and is not in the public interest.

One of the reasons the NDP has objected to the bill is the lack of clear process around public consultation. The government continues to say that Canadians should not worry, that the National Energy Board will look after their interests. When we have had a very credible intervenor raise questions about the NEB's independence, we need to do a far better job of telling Canadians how projects would be evaluated.

We need that openness, transparency and accountability so Canadians have confidence that when a project is approved, that it has been tested for the environmental, economic and social impacts. It is with very good reason that the New Democrats do not support the bill at this stage. We attempted to make a number of amendments at committee stage and of course to no surprise, those amendments were rejected by the government.

I point out, once again, that we are under time allocation and that limits the amount of time and the number of witnesses who can be called to review the bill. With very good reason, the New Democrats oppose the legislation.

Energy Safety and Security ActGovernment Orders

November 7th, 2014 / 10:55 a.m.


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The Acting Speaker Bruce Stanton

There will be five minutes for questions and comments for the hon. member for Nanaimo—Cowichan when the House next turns to debate on this question.

Energy Safety and Security ActGovernment Orders

November 7th, 2014 / 12:25 p.m.


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Durham Ontario

Conservative

Erin O'Toole ConservativeParliamentary Secretary to the Minister of International Trade

Mr. Speaker, it is my pleasure to rise today on Bill C-22, the energy safety and security act. I will be splitting my time with my neighbour, the very capable member for Northumberland—Quinte West.

This bill has been a long time coming to the House. It addresses a number of specific provisions for the offshore oil and gas industry as well as the nuclear energy industry. It is our government's effort to modernize legislation and regulation around these industries. We are hoping that this will not be the third or potentially fourth time that the NDP attempts to delay and block such important modernizing legislation.

The offshore industry is an area where the federal government works collaboratively with the Atlantic provinces. There are accords with the Government of Nova Scotia and the Government of Newfoundland and Labrador. Those provinces will update their legislation following the passage of Bill C-22. For offshore exploration in the north, it is the National Energy Board that is responsible for the oversight of exploration and drilling, whereas with Nova Scotia and Newfoundland and Labrador, it is the offshore petroleum boards that are the specific and expert regulators.

This bill is our attempt to make sure that Canada continues to have world-class and modern regulation of these industries, which are parts of Canada's dynamic energy economy; to make sure that safety is at the forefront of these industries; and to make sure that the environment is respected in the process as well.

As I said, the two areas addressed by this bill are the offshore industry and the nuclear industry. I will speak to both briefly in my remarks on elements of the bill, and then I will discuss something dear to my heart, which is the nuclear energy industry in Canada.

On the offshore oil and gas exploration side, this bill would carry out an important act by clearly enshrining the polluter pays principle in legislation. That is important. It would recognize that when there is fault or negligence on the part of operations in the offshore environment, there would be unlimited liability for people who are negligent or at fault in their operations in that sector.

In the no-fault regime, this legislation is important because it would update and modernize an approach and compensation levels and structures that are remnants of the 1970s. In the case of the offshore oil and gas industries, the no-fault provisions would be increased from a $30 million range for compensation to a $1 billion range for compensation. I think most Canadians would agree that these things should be updated at least every 25 to 30 years. In this case, we are looking at a gap of almost 40 years in updating the regulatory approach and updating those limits and insurance requirements for operators.

The bill would also make it much easier for the government to be directly capable of seeking damages for environmental impact from operations. We all want to make sure that those things never happen, but this bill, which promotes safety and security, would address these liability issues with unlimited liability where there is fault, as I said, and with requirements for compensation of up to $1 billion in the no-fault regime. Canadians think that that is important.

The other aspect, as I said at the outset of my remarks, is the nuclear industry. This is another case in which the regulatory regime and compensation levels would be updated after a lag time of 30-plus years. In cases of incidents in nuclear energy generation, the old cap of civil liability, which is in the $75 million range, would also be increased to $1 billion. Absolute liability would rest with the operators.

The operators, who have a terrific track record in Canada, a perfect track record, I might add, certainly know that they are required to keep the highest standards and ensure that they have adequate operating and insurance coverage to meet the new limits, which would be updated with Bill C-22.

Importantly, on the nuclear side, we are also increasing the limitation period from 10 years to 30 years. This is important because claims may arise from an incident. Remember that we are talking about the what ifs, the very unlikely scenario of any incident. The claims period for accessing compensation should be longer than 10 years. As a lawyer, I know limitation periods are important, but it is important to have a limitation period that acknowledges that some damages or injuries will present themselves long after the incident. This is another way of bringing this up to a modern era.

This bill would also allow Canada to be a signatory to an international convention, the International Atomic Energy Agency's convention on supplemental compensation. This would bring us up to a standard where we could be a signatory to that important international convention, which deals with transborder and international issues with respect to offshore and the nuclear energy industry. This would also make sure we would be world class. Our compensation levels are among the top in the world, particularly in the top for countries with active industries in these sectors.

This is an important modernization of the regulatory and compensation structure for these important industries.

As the member of Parliament for Durham, I am also very happy to be an active proponent of nuclear energy in Canada. Our world-class excellence in this area is something we do not talk about enough. I wanted to do that as an MP, someone who had worked in some energy regulatory matters as a lawyer beforehand, so I helped create the nuclear caucus in Ottawa to promote the industry, to try to raise the level of knowledge among parliamentarians and certainly among Canadians on the important role this industry played in Canada.

Canada was the second nation to have controlled nuclear fission, to create cheap and affordable clean energy. That is an achievement we sometimes forget. The great part of our experimental work in industries in the nuclear sector is that we were never a nuclear nation in terms of warheads. We always used nuclear energy peacefully, and our technology remains among the world's best.

There are 71,000 jobs connected to the nuclear and supply industry in Canada, representing a $7 billion benefit to our GDP. There are 19 operating reactors across Canada. In Darlington, there are four reactors, which, in 2013, were awarded an international safety award from the Institute of Nuclear Power Operations.

If we look at the Durham region at large, beyond just my riding, 50% of Ontario's electricity is generated by nuclear power, a good portion of that coming from the Durham area. This is important because this power is affordable and predictable, it is baseload power, and it is GHG emission-free. So many people in the House, particularly in the NDP, talk about reducing greenhouse gas emissions, but then, at the same time, oppose nuclear energy. It is really an absurd position.

I would note that the member for Winnipeg Centre actually said in the House, “We do not want to see the Darlington nuclear power plant doubled in size. We want to see it shut down”. When 50% of the baseload electricity in Ontario is from nuclear, we cannot set up a few wind turbines to replace that. It shows the absurdity of the position of the member for Winnipeg Centre and many of his colleagues.

I have been a proud supporter of working not only with Darlington Nuclear Generating Station in my riding, but also the Organization of Canadian Nuclear Industries. Our government provided it with an $88,000 global opportunities for associations grant to sell technology abroad. AECL Candu technology is present in China, Romania, India, Pakistan, Argentina, and in Canada, with a perfect track record. I do not want to forget that It is also in South Korea. When I was in South Korea, people talked positively about our industry. It has an error-free record and some of the best technology in the world, so we need to celebrate industries that are world champions.

I would also like to mention the University of Ontario Institute of Technology's clean energy research laboratory, where nuclear power can help work with hydrogen and isotopes to create clean technology.

The bill is important to modernizing our regulatory structure and allowing our industries' offshore industry and the nuclear industries to excel.

Energy Safety and Security ActGovernment Orders

November 7th, 2014 / 12:35 p.m.


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NDP

François Pilon NDP Laval—Les Îles, QC

Mr. Speaker, I would like to thank my colleague for his speech.

He said that the $75 million for compensation has been increased to $1 billion because the compensation levels dated back to the 1970s. In his speech, he also said that the amount should be updated every 25 years. That said, the amount was updated for the 1990s. Does he not think it would be appropriate to update it again, given that this is 2014?

Energy Safety and Security ActGovernment Orders

November 7th, 2014 / 12:35 p.m.


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Conservative

Erin O'Toole Conservative Durham, ON

Mr. Speaker, I would like to thank the member for asking the question in the way that he did because it allows me to politely chastise his party. This is the fourth time that our government has tried to bring this type of legislation before the House, only to be delayed, blocked, and impeded by the New Democratic Party, which has a very bizarre position on nuclear energy. New Democrats, and the member for Winnipeg North, oppose nuclear-generated electricity which provides the majority of Ontario's power, yet they want more reductions on greenhouse gas emissions.

They do not seem to realize that in certain provinces with an industrial base, like Ontario, we cannot pull out 50% of the electricity generation which is all greenhouse gas emission-free, and replace it with wind or solar. It shows that the NDP does not understand the modern economy.

I would ask the member to speak to his leader, and members like the MP for Winnipeg North, to tell them to stop blocking this legislation to update our standards.

Energy Safety and Security ActGovernment Orders

November 7th, 2014 / 12:40 p.m.


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Simcoe—Grey Ontario

Conservative

Kellie Leitch ConservativeMinister of Labour and Minister of Status of Women

Mr. Speaker, the member is doing an outstanding job in his area of the country, in Durham region, and part of that is making sure that jobs are protected and jobs are created.

Moving forward with Bill C-22, our government is very much focused. Unlike what the NDP would like to do, essentially bankrupting these companies that are moving forward, and putting people out of work, we are moving forward to make sure this is done in a responsible way and that we are creating jobs in the interim.

I would like to ask the member for Durham for his thoughts with regard to how this contributes to job creation, and with respect to the opposition members' position and how it is a job-killing motion.

Energy Safety and Security ActGovernment Orders

November 7th, 2014 / 12:40 p.m.


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Conservative

Erin O'Toole Conservative Durham, ON

Mr. Speaker, I would like to thank the Minister of Labour for her intervention and for her passionate work across Canada. She certainly has a soft spot for the Durham region, and that is appreciated by me and all of the MPs. For a time she was one of the leading surgeons in our area, and it was deeply appreciated.

She certainly also understands the importance of this industry, not just to Ontario but to the Canadian economy. If we look at the generation and supply network, there are 71,000 jobs in a very high-tech and innovative sector. Canadian technology, represented by CANDU technology, is world class, with a perfect operating record. We should be promoting this more internationally.

We do have plants in half a dozen or so countries around the world, generating greenhouse gas emission free power. However, our regulatory regime, the safety and environmental represented in Bill C-22, needs to be updated. This should not be an opportunity where the NDP, and even the Liberal Party, because the Liberal candidate in the by-election called the nuclear industry “a necessary evil”, stand in the way of modernizing the regulatory framework for some of our leading energy industries, the offshore and nuclear. This is about world-class regulation and promoting jobs in Canada.

Energy Safety and Security ActGovernment Orders

November 7th, 2014 / 12:40 p.m.


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Conservative

Rick Norlock Conservative Northumberland—Quinte West, ON

Mr. Speaker, I am pleased to speak today in support of Bill C-22, the energy safety and security act, and particularly on the ways in which the bill would enhance environmental protection.

As part of our responsible resource development plan, our government has been clear that the development of our natural resources will only proceed if it is safe for Canadians and safe for the environment.

Over the past year, our government has initiated a series of new measures to ensure that the development of our natural resources in the offshore is balanced with the protection of the environment. For example, we have increased the number of tanker inspections, required the use of double-hulled ships, and we have improved navigational tools and surveillance used in offshore.

Our government has worked closely with the governments of Nova Scotia, and Newfoundland and Labrador to ensure that Canada's offshore oil and gas regime remains world class. In each province, offshore oil and gas projects are closely and jointly managed by a federal-provincial offshore board, namely the Canada-Nova Scotia Offshore Petroleum Board and the Canada-Newfoundland and Labrador Offshore Petroleum Board.

Bill C-22, the proposed energy safety and security act, builds on this work and would provide a world-class regulatory regime for Canada's offshore oil and gas sectors, as well as the nuclear sector, while strengthening protection for Canadians and the environment.

Bill C-22 is focused on the three main areas: prevention, response, and accountability. Today I would like to focus on the area of accountability, namely polluter pays.

In our Speech from the Throne, our government committed to enshrining the polluter pays principle into law. Bill C-22 would do exactly this. It would place accountability on industry and protect Canadian taxpayers in the unlikely event of an accident.

The polluter pays principle assigns responsibility to the polluter, who would have to pay for any damage done to the environment as well as any associated cleanup costs. In doing so, this principle would encourage industry to put more emphasis on the need to protect the environment through the course of its operations.

Under Bill C-22, our government would deliver on the promise to enshrine the polluter pays principle in the law for the offshore civil liability regime.

The current offshore civil liability regime is twofold. First, in the event of an at-fault accident, the offshore operator is subject to covering all costs related to cleanup and remediation. Second, an offshore operator could be subject to absolute liability, even without fault, of up to $30 million in Atlantic Canada and $40 million in the Arctic. This means that if an operator deliberately or negligently causes an accident, it is wholly responsible for all damages and cleanup costs. If it is not negligent in causing the accident, the offshore operator is liable for the accident and any damages that emanate from it, but only up to $30 million in the case of the Atlantic offshore and $40 million in the Arctic. This is clearly out of date, and the legislation before us will update these liability limits.

One of the key features of Bill C-22 is that it will raise the absolute liability limit to $1 billion. This would bring Canada's offshore liability limit in line with other countries, including the United States and the United Kingdom. It would mean that if a company caused an accident in the offshore or Arctic but was not found at fault or negligent, it must cover costs of up to $1 billion. I think we can all agree that this would be a significant improvement from the current $30 million and $40 million, in the offshore Atlantic and Arctic respectively.

Unlimited liability will remain. This means that if found at fault, a company must pay for all of the costs regardless of how much they are.

Another key feature is that the legislation would establish a basis to seek environmental damages. This would ensure that any damage to species, coastlines, or other public resources could be addressed in a timely and effective manner. The civil liability regime created under the bill would be one of the most robust and comprehensive in the world.

In addition to actual losses, environmental damages resulting from an accident will be included in the new civil liability regime. This is an important aspect of our legislation, and I would like to outline what can be claimed under that regime.

The regime is set out in three broad categories of damage, as follows: first, claims for all actual loss or damages incurred by any person as a result of an incident; second, the costs and expenses incurred by the federal government, a provincial government, or any other person in taking action in respect of a spill; and the third category would cover claims by the federal or provincial governments for loss of what is referred to as “non-use value” relating to a public resource that is damaged by a spill.

The scope of what would be included under the first category of damage is broad. It would cover all actual loss or damage, including loss of income and future income. With respect to aboriginal peoples, it would include the loss of hunting, fishing, and gathering opportunities. This head of damage would include the loss of what falls under the term “use value”, which would include claims for damages to what is commonly referred to as “ecosystem services”.

The second category of damage would enable the federal and provincial governments, or any other party, such as third-party response contractors, to recoup the costs they incur in the course of taking measures to respond to or mitigate a spill.

The third and final category of damage would create liability for loss of what falls under the term “non-use value” in relation to public resource. This would mean that the federal government or provincial government could bring forward a claim for damage to environmental assets that are valuable to Canadians and future generations.

We introduced authority to account for loss of non-use value in the calculation of fines for environmental offences, in 2009.

Bill C-22 would mark the first time that civil claims for loss or of non-use value of public resources would be available under federal legislation. This would clearly be a big step in improving environmental protection. I am proud that our government has brought it forward.

In conclusion, future generations depend upon our taking a long view of protection: establishing clear liability rules, plus an economically meaningful marker demonstrating that we value the full scope of benefits that we receive from our environment.

Bill C-22 would recognize the economic and social value of our natural resource assets, and the diverse and unique value that the environment holds for Canadians.

I urge all of my hon. colleagues to support this important legislation, and I remain available for any questions that may arise.

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November 7th, 2014 / 12:50 p.m.


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Conservative

Bob Zimmer Conservative Prince George—Peace River, BC

Mr. Speaker, I know our party is concerned about both sides of the issue, the environmental issue and also the jobs that come from natural resource development. The opposition seems to think it is an either/or discussion. We believe that we could do both and do it responsibly.

Would the member explain how that responsibility is important to us, to the Conservative Party?

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November 7th, 2014 / 12:50 p.m.


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Conservative

Rick Norlock Conservative Northumberland—Quinte West, ON

Mr. Speaker, we do not think that it is either the environment or jobs. We believe that the responsible use of our natural resources coupled with environmental protection is doable, and that is what the bill actually enhances.

We know that the extractors of this country, whether it be the petroleum industry, the mining industry or the forestry sector, all combined, create the basis of our economy, the basis upon which much of our economy is founded.

We can do that responsibly. Indeed, Canadians are known around the world as some of the best mining researchers. Almost every single operation around the world has mining engineers or someone from the Canadian mining industry involved. We have learned from other countries that do not have the track record that we have. We have learned that responsible resource management and the protection of the environment go hand in hand to create jobs. I want to thank the hon. member who comes from an area of Canada where this is most important.

The hon. member for Durham talked about the nuclear industry and the jobs it created. In my riding, which is adjacent to Darlington, we produce nuclear fuel. Cameco Corporation is the largest non-government employer in Northumberland County.

We know all too well the importance of this industry to Canada. I thank the hon. member for Durham for bringing that to the attention of the House and all Canadians.

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November 7th, 2014 / 12:50 p.m.


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NDP

François Choquette NDP Drummond, QC

Mr. Speaker, liability in the nuclear energy sector is one of our concerns.

Increasing the liability to $1 billion is a good start. However, the Japanese government estimates that the cleanup from the Fukushima accident will cost $150 billion. That is far higher than $1 billion.

If a similar accident were to happen in Canada, who would be liable for the remaining $149 billion? If the people of Drummond and my colleague's riding were to receive the bill, I would like him to explain to his constituents why they have to pay so much money while the companies are not held more accountable.

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November 7th, 2014 / 12:55 p.m.


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Conservative

Rick Norlock Conservative Northumberland—Quinte West, ON

Mr. Speaker, that question just confirms what the hon. member for Durham said about the NDP. It is really not interested in what the liabilities are and the fact that we are increasing them. It just does not like the nuclear industry and wants to find any excuse whatsoever to not support the legislation.

Let me assure the hon. member that the Canadian nuclear industry post-Fukushima was reviewed by a task force created by that industry by the commission itself in 2011.

The hon. member for Durham has said, and this is a fact, that in over half a dozen countries around the world and in this country, there have been no nuclear incidents that caused anywhere near the concern that the hon. member refers to in Japan. That accident occurred due mostly to human error, and that is not a fault of the nuclear industry but a human error.

In Canada, with the nuclear reactors that we have, the CANDU reactors, those types of human errors have not occurred and are highly unlikely to occur. To reassure the member, the legislation says that once that threshold of $1 billion is exceeded, the matter comes back before this Parliament, before the government, and the House will decide what further action needs to be taken.

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November 7th, 2014 / 12:55 p.m.


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NDP

Françoise Boivin NDP Gatineau, QC

Mr. Speaker, I should let you know that I will be sharing my time.

It is a pleasure for me to rise in the House to represent the people of Gatineau on this lovely Friday before we go back to our ridings for a week. People might wonder why the people of Gatineau would be interested in the Act respecting Canada's offshore oil and gas operations, enacting the Nuclear Liability and Compensation Act, repealing the Nuclear Liability Act and making consequential amendments to other Acts. Unlike my colleague who just spoke, I can say that it is of great interest to us, as it should be to all Canadians.

This law outlines what would happen if serious problems were to occur, especially in cases of offshore oil and gas spills. This legislation also outlines the levels of responsibility in the event of nuclear incidents. Nonetheless, as we all know, it is often Canadians who are expected to foot the bill.

I always have to smile a little when people talk about the government's money. It is not the government's money; it is the taxpayers' money. That always reminds me of the time someone told me that the government was nice because it had sent him a cheque at tax time. I told him that the government did not send the cheque out of the goodness of its heart, but because it had taken too much of his money, and, on top of it, without paying interest.

I already spoke to this bill at second reading, and I want to acknowledge the tremendous work done by my colleagues from Hamilton Mountain, Abitibi—Témiscamingue and Edmonton—Strathcona, for this is not an easy issue. That act is very hard to read.

In my speech at second reading, I said I was very pleased that our critic in this area had made a recommendation to approve the principle of the bill and suggest amendments at the committee stage. The amendments sought expanded liability and the implementation of global best practices.

The member said that she was going to present amendments to try to strengthen the bill. After some explanations and some rather heated debates, the NDP caucus, which always works very well together, rallied behind the member and her recommendation and voted in favour of the bill at second reading.

Of course now we are getting a slap on the wrist from the government because we have announced that we will be voting against the bill. I find many things in the House pretty shocking, but I was deeply shocked when the Conservatives flatly rejected the serious, intelligent amendments presented by my colleagues of the official opposition.

This is a very important bill that could potentially represent billions of dollars. The sun can't shine every day. We have to be prepared for the tough times. That is what we call risk management. If we do not plan ahead, we might go bankrupt and have to borrow money to pay for things.

This should raise a flag for the Conservatives, unless they think it is up to Canadians to always pay for their mistakes. I want to pick up on what my colleague said. I am still trying to digest what he said about the fact that there has been no human error because accidents only happen as a result of human error.

According to him, since there has been none, this justifies neglecting to include the necessary compensation guarantees with regard to the nuclear industry. With all due respect to the hon. member, that is a bit cavalier because the principle of this bill is to protect against the risk of accidents.

The goal is also to ensure that there are reasonable amounts of money to do so.

I often tell the House that we have a tendency of forgetting the past and that is why we continue to make the same mistakes.

There has not been a case of human error in the nuclear sector. So much the better. However, human error was a factor in Lac-Mégantic, and there is a cost attached to that. All kinds of repairs and rebuilding are going to cost millions if not billions of dollars. I do not wish that on anyone.

I represent the riding of Gatineau, which is in the Outaouais region and the National Capital Region. Chalk River is not very far from there. I remember reading articles in the Ottawa Citizen about the transport of rather dangerous and radioactive materials. Quite often we are not even aware of what is happening under our noses.

I believe it is our duty to ensure that the legislation we pass protects Canadians. At the same time, Canadians should not be our country's cash cows.

Some companies earn huge amounts of money from their industry, and we are not against industry, as one of my colleagues mentioned earlier. We simply want to ensure that polluters pay their share and that they do it the right way. For example, if an accident happens, we want companies to be required to compensate anyone who is affected and to fully fix the situation, not to stop at $1 billion. Although $1 billion is a nice figure, it is just a drop in the bucket if you look at the astronomical costs associated with events that happen around in the world.

I would like to talk more about the work done in committee. I was shocked to see that the Standing Committee on Natural Resources had three meetings. Some might say that holding three meetings is fine. However, there were just two meetings with witnesses on a bill that is really not easy to study, and one meeting for the clause-by-clause study.

If memory serves, the two meetings with witnesses were not even full meetings, because of interruptions for votes. All members experience this in committee. Sometimes groups of witnesses are forced to wait for us while we come back to the House to vote. To date, we have come to the House 80 times to vote on time allocation motions, as was the case with this bill.

I am rising in the House to speak to a bill at third reading that is subject to a majority-led gag order. In other words, since the government holds a majority, it is in control of the committee so no one really knows what happens during in camera meetings. There were requests to extend the meetings in order to hear from all of the witnesses who wanted to share their opinion and provide information. Although I do not know what was said behind closed doors, I understand that those requests were denied.

Committees are not an extension of our work here. It is not simply about debating one another. It is about listening to the witnesses and trying to understand the bill. However, given what happened and in light of the comments from some witnesses, we do not get the impression that the bill was seriously, thoroughly studied in committee. There were not very many witnesses who were able to speak. That saddens me deeply.

Another thing that saddens me deeply is that Bill C-22 is being debated under an 80th time allocation motion.

I have already expressed my views on time allocation motions, which can be necessary. They have been used by other parties in power, which were not our party. I hope that we will never have to get into that kind of discussion. I would not like to be criticized for something I said. I am usually consistent and I walk my talk. However, 80 times is really too much.

I would like to take the time I have left to say that I hope the people of Gatineau can participate in Remembrance Day day ceremonies that honour this special time we set aside to remember what our veterans have done for us every day.

I will be at the Norris and Pointe-Gatineau branches of the Royal Canadian Legion to honour the presence and bravery of our veterans.

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November 7th, 2014 / 1:05 p.m.


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Liberal

Kevin Lamoureux Liberal Winnipeg North, MB

Mr. Speaker, I have a question for the member in regard to liability insurance. Is it the position of the New Democratic Party that, whether it is nuclear or offshore oil drilling, any private sector company wanting to go in that direction would be obligated to have unlimited liability insurance?

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November 7th, 2014 / 1:05 p.m.


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NDP

Françoise Boivin NDP Gatineau, QC

Mr. Speaker, I know the member's question is specific. I will not necessarily give such a specific answer. I am not a specialist in the matter.

What I said in my speech is that what I want to avoid is that it falls on Canadians, everyday Canadians, to pay for these things. The idea behind the legislation is to try to have reasonable amounts covered. I am not so sure about the amounts that are there and whether the committee had the chance to do a proper study of what those amounts really represent for the industry and Canadians.

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November 7th, 2014 / 1:05 p.m.


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NDP

Djaouida Sellah NDP Saint-Bruno—Saint-Hubert, QC

Mr. Speaker, I thank my colleague for her eloquent speech.

If the nuclear industry is truly mature, it should cover costs in accordance with the polluter pays principle. Unfortunately, this bill maintains subsidies to the industry and downloads the financial risk onto taxpayers for costs that exceed $1 billion.

Taxpayers are not the ones doing the polluting.

Does my colleague think that citizens deserve better protection if companies make a mess?

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November 7th, 2014 / 1:10 p.m.


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NDP

Françoise Boivin NDP Gatineau, QC

Mr. Speaker, that is our biggest complaint about Bill C-22. If the Conservatives really wanted to protect Canadians and the environment, they should have harmonized the two parts of Bill C-22 by imposing the same standards on the nuclear energy and oil and gas sectors.

That is what has me stumped about this bill. The government has not provided an adequate, acceptable or reasonable response to explain this double standard that seems to exist between the oil and gas industry and the nuclear industry. Is it because the government knows that damage caused by the nuclear industry would be much worse and more costly and, in that case, it is not prepared to force the industry to provide compensation?

I do not know what is behind all this, but something does not feel quite right. I think it is a shame that a thorough study of the bill was cut short to benefit the people who keep telling us about their nice nuclear industry in television ads. Congratulations, they do things. We must not think that the nuclear industry is fundamentally bad. The nuclear industry does a lot of very good things, but let us be realistic.

We do not talk about it enough, but there is potential for human error. I realize that there may not have been any errors yet, but something could happen. To err is human. That is what we have to protect ourselves against. We must ensure that we treat the industries the same way.

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November 7th, 2014 / 1:10 p.m.


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The Acting Speaker Bruce Stanton

Before I recognize the hon. member for Esquimalt—Juan de Fuca, I will let him know that there are only two and a half minutes remaining in the time allowed for debate on the question. However, I will give him the usual signal, and I am sure he will have something to add to the debate this afternoon, even if it is for two and a half minutes.

The hon. member for Esquimalt—Juan de Fuca.

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November 7th, 2014 / 1:10 p.m.


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NDP

Randall Garrison NDP Esquimalt—Juan de Fuca, BC

Mr. Speaker, the fact that there are only two and a half minutes remaining to debate this bill really does illustrate the point that many members have made on our side.

The government has now used time allocation 80 times. It shows that what I want to say about this bill will not get into the record today. I cannot possibly deal with this matter in two and a half minutes. Other members of our caucus will not be allowed to speak at all on this very important bill.

Previously the member for Gatineau was talking about how this bill was considered when it was in committee. There were only two days of hearings, in which only nine witnesses called, and on the second day those hearings were cut short, and understandably, by bells in the House. Then time allocation and scheduling that were forced on the House and on its committees by the government meant that the committee was not able to complete its consideration of the bill.

Then only one day was given to deal with possible amendments to the bill. There were 32 amendments submitted from the opposition. If we think about the amount of time, namely two hours, with 32 amendments and four opposition members, it is clear that the government was not interested in hearing what people had to say, because they were allowed about one minute each to explain these amendments. Obviously, on a very technical and important bill, one minute per amendment is not taking Parliament and democracy seriously.

It is an indication that the government is not prepared to listen to anything that people have to say on this side of the House. It is indicative of what I would say is the Conservatives' attitude toward democracy. For them it seems to be all about winning and only about winning.

Lately we have seen yet another Conservative member who took that idea way too far. He was forced to leave the House because of his disrespect for the rules about making politics fair.

Time allocation is also indicative of the government's attitude toward debate. It seems to believe that debate is something it has to sit through until it gets its way. For me, debate is very important here. I was elected by my constituents to bring their concerns to the House of Commons, and those concerns will vary from member to member. I represent a riding on Vancouver Island. There are people who represent an entire country. On the same bill, the interests of our constituents will be different, even if we are in the same party. The government seems to view all of this as a needless process because it won the election. I have a much higher view of democracy than that.

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November 7th, 2014 / 1:10 p.m.


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The Acting Speaker Bruce Stanton

It being 1:15 p.m., pursuant to an order made Thursday, September 25, it is my duty to interrupt the proceedings and put forthwith every question necessary to dispose of the third reading stage of the bill now before the House.

The question is on the motion. Is it the pleasure of the House to adopt the motion?

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November 7th, 2014 / 1:10 p.m.


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Some hon. members

Agreed.

No.

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November 7th, 2014 / 1:10 p.m.


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The Acting Speaker Bruce Stanton

All those in favour of the motion will please say yea.

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November 7th, 2014 / 1:10 p.m.


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Some hon. members

Yea.

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November 7th, 2014 / 1:10 p.m.


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The Acting Speaker Bruce Stanton

All those opposed will please say nay.

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November 7th, 2014 / 1:10 p.m.


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Some hon. members

Nay.

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November 7th, 2014 / 1:10 p.m.


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The Acting Speaker Bruce Stanton

In my opinion, the yeas have it.

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November 7th, 2014 / 1:10 p.m.


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Some hon. members

On division.

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November 7th, 2014 / 1:10 p.m.


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The Acting Speaker Bruce Stanton

(Motion agreed to, bill read the third time and passed)

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November 7th, 2014 / 1:15 p.m.


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Conservative

John Duncan Conservative Vancouver Island North, BC

Mr. Speaker, I rise on a point of order. I would seek concurrence to see the clock at 1:30 p.m.

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November 7th, 2014 / 1:15 p.m.


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The Acting Speaker Bruce Stanton

Is that agreed?

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November 7th, 2014 / 1:15 p.m.


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Some hon. members

Agreed.

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November 7th, 2014 / 1:15 p.m.


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The Acting Speaker Bruce Stanton

Accordingly, the House will now proceed to the consideration of private members' business as listed on today's order paper.