This bill was last introduced in the 42nd Parliament, 1st Session, which ended in September 2019.
Catherine McKenna Liberal
This bill has received Royal Assent and is now law.
This is from the published bill.
Part 1 enacts the Impact Assessment Act and repeals the Canadian Environmental Assessment Act, 2012. Among other things, the Impact Assessment Act
(a) names the Impact Assessment Agency of Canada as the authority responsible for impact assessments;
(b) provides for a process for assessing the environmental, health, social and economic effects of designated projects with a view to preventing certain adverse effects and fostering sustainability;
(c) prohibits proponents, subject to certain conditions, from carrying out a designated project if the designated project is likely to cause certain environmental, health, social or economic effects, unless the Minister of the Environment or Governor in Council determines that those effects are in the public interest, taking into account the impacts on the rights of the Indigenous peoples of Canada, all effects that may be caused by the carrying out of the project, the extent to which the project contributes to sustainability and other factors;
(d) establishes a planning phase for a possible impact assessment of a designated project, which includes requirements to cooperate with and consult certain persons and entities and requirements with respect to public participation;
(e) authorizes the Minister to refer an impact assessment of a designated project to a review panel if he or she considers it in the public interest to do so, and requires that an impact assessment be referred to a review panel if the designated project includes physical activities that are regulated under the Nuclear Safety and Control Act, the Canadian Energy Regulator Act, the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act and the Canada–Newfoundland and Labrador Atlantic Accord Implementation Act;
(f) establishes time limits with respect to the planning phase, to impact assessments and to certain decisions, in order to ensure that impact assessments are conducted in a timely manner;
(g) provides for public participation and for funding to allow the public to participate in a meaningful manner;
(h) sets out the factors to be taken into account in conducting an impact assessment, including the impacts on the rights of the Indigenous peoples of Canada;
(i) provides for cooperation with certain jurisdictions, including Indigenous governing bodies, through the delegation of any part of an impact assessment, the joint establishment of a review panel or the substitution of another process for the impact assessment;
(j) provides for transparency in decision-making by requiring that the scientific and other information taken into account in an impact assessment, as well as the reasons for decisions, be made available to the public through a registry that is accessible via the Internet;
(k) provides that the Minister may set conditions, including with respect to mitigation measures, that must be implemented by the proponent of a designated project;
(l) provides for the assessment of cumulative effects of existing or future activities in a specific region through regional assessments and of federal policies, plans and programs, and of issues, that are relevant to the impact assessment of designated projects through strategic assessments; and
(m) sets out requirements for an assessment of environmental effects of non-designated projects that are on federal lands or that are to be carried out outside Canada.
Part 2 enacts the Canadian Energy Regulator Act, which establishes the Canadian Energy Regulator and sets out its composition, mandate and powers. The role of the Regulator is to regulate the exploitation, development and transportation of energy within Parliament’s jurisdiction.
The Canadian Energy Regulator Act, among other things,
(a) provides for the establishment of a Commission that is responsible for the adjudicative functions of the Regulator;
(b) ensures the safety and security of persons, energy facilities and abandoned facilities and the protection of property and the environment;
(c) provides for the regulation of pipelines, abandoned pipelines, and traffic, tolls and tariffs relating to the transmission of oil or gas through pipelines;
(d) provides for the regulation of international power lines and certain interprovincial power lines;
(e) provides for the regulation of renewable energy projects and power lines in Canada’s offshore;
(f) provides for the regulation of access to lands;
(g) provides for the regulation of the exportation of oil, gas and electricity and the interprovincial oil and gas trade; and
(h) sets out the process the Commission must follow before making, amending or revoking a declaration of a significant discovery or a commercial discovery under the Canada Oil and Gas Operations Act and the process for appealing a decision made by the Chief Conservation Officer or the Chief Safety Officer under that Act.
Part 2 also repeals the National Energy Board Act.
Part 3 amends the Navigation Protection Act to, among other things,
(a) rename it the Canadian Navigable Waters Act;
(b) provide a comprehensive definition of navigable water;
(c) require that, when making a decision under that Act, the Minister must consider any adverse effects that the decision may have on the rights of the Indigenous peoples of Canada;
(d) require that an owner apply for an approval for a major work in any navigable water if the work may interfere with navigation;
(e) set out the factors that the Minister must consider when deciding whether to issue an approval;
(f) provide a process for addressing navigation-related concerns when an owner proposes to carry out a work in navigable waters that are not listed in the schedule;
(g) provide the Minister with powers to address obstructions in any navigable water;
(h) amend the criteria and process for adding a reference to a navigable water to the schedule;
(i) require that the Minister establish a registry; and
(j) provide for new measures for the administration and enforcement of the Act.
Part 4 makes consequential amendments to Acts of Parliament and regulations.
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.
The Assistant Deputy Speaker Carol Hughes
Order, please. I have allowed a bit more time so maybe the member will be able to add additional information during questions and comments.
Questions and comments, the hon. member for Yukon.
Larry Bagnell Liberal Yukon, YT
Madam Speaker, I will help you in your suggestion by allowing the member to finish his speech. He is on the committee of the eight Arctic nations with me, and we work very co-operatively with those other nations. The group includes Russia and the United States. For any parliamentarians who have anything to say to those eight nations, we go to the meetings four times a year, so they can let the member or me know.
From his experience in those other nations similar to ours, could the member add anything that would support his points, such as his point about the economy and the environment going together?
Larry Maguire Conservative Brandon—Souris, MB
Madam Speaker, when we look at all of the issues in these other countries, one of the things I did not get to say as I was finishing was that my father had a saying back in the days of his early farming career, and that is that if they look after the land it will look after them. I do not think there is anybody in this chamber right now or any member of Parliament who does not believe we need to have a strong environmental care package for future generations.
My colleague from Yukon, when we have travelled together, has certainly pointed out many of the cases of the work that we are doing here in Canada. There is the Cambridge Bay issue. The building of the scientific work that is being done up there is tremendous for our science-based issues in the Arctic. I commend the government for some of the work it has done on roads in some of those areas. We are working on communications development in those regions of the world as well. There is no denying that there is change taking place, and our job is to make sure we deal with it and try to have the least amount of impact on the lives of those who live there on a regular basis.
Elizabeth May Green Saanich—Gulf Islands, BC
Madam Speaker, in the past I practised environmental law for a while and I have worked in the environmental field for a long time and I am quite familiar with laws in other countries. It is unlikely that the hon. member will take my word for it, but Canada does not have the best environmental assessment process, the toughest regulations, and the best endangered species law at all. That was the case even before Bill C-38 in the spring of 2012. After the changes to environmental assessment by the Harper government in Bill C-38, we had one of the worst, weakest, and most inconsistent and incoherent environmental assessment processes in the industrialized world. Sadly, tragically, Bill C-69 would not restore the consistent, predictable process we had that ensured that anything within federal jurisdiction would be reviewed.
Just so the hon. member knows what countries to which I refer, anything in the European Union is stronger, the United States is much stronger, and New Zealand is much stronger in their anticipatory environmental assessments, which is why it is such a tragedy that Canada, which knows how to do this better, is failing to do so now.
Larry Maguire Conservative Brandon—Souris, MB
Madam Speaker, I think there was a question there from my colleague. I appreciate her experience in the law end of environmental science as well.
One of the main concerns that I have with the government's bill coming forward the way it has is the fact that people have lost confidence in some of the principles that were there before. If they have, and to my colleague's point, why in the world did the government set targets for its greenhouse gas emission reductions exactly the same as what the Harper government set, except the Liberals have not been as successful at it? The Harper government was the only government in Canadian history to reduce greenhouse gas emissions.
I take my colleague at her word for the work that she has done in other countries. I note that some of the European countries are certainly in the Arctic circle that my colleague across the way and I have had the opportunity to see.
As a result of the amount of rhetoric in the 370-page bill, it is hard to discern what the government's intentions are.
Kelly McCauley Conservative Edmonton West, AB
Mr. Speaker, I am pleased to rise tonight at this late hour to speak to Bill C-69, an act to enact the Impact Assessment Act and the Canadian Energy Regulator Act, to amend the Navigation Protection Act and to make consequential amendments to other Acts, also known as an omnibus bill. I also like to call this bill the let us never build another pipeline or major energy project in Canada bill, or we could call it the labyrinth act, after the David Bowie movie Labyrinth, with its never-ending maze, which is what our regulatory process is going to be.
According to the Liberal government, the main purpose of this bill is to create an environmental assessment process that increases consultation, broadens a number of social economic criteria for approval, and decreases legislative timelines. At a lengthy 350 pages, this bill has so many proposed changes, it is tough to digest them all at once. Here is one clear takeaway. It will ensure the private sector pipelines will never see the light of day in Canada again.
This comes straight from the Canadian Energy Pipeline Association that these introduced amendments or “Regulatory 'poisons' are 'suffocating' oil industry by driving investors away”.
At committee we heard this from a witness, “The impact assessment does not address the pipeline sector's most fundamental concern: a process that is expensive, lengthy, polarizing, and ends with a discretionary political decision.”
Hence, the the labyrinth act.
I was pleased to quote Ozzy Osbourne in an earlier speech today on Bill C-344, which is another act from the Liberals that will create another regulatory burden. I am glad I was able to mention the late David Bowie as well.
We have seen the Trans Mountain pipeline put on life-support worth $4.5 billion because of the Liberals' action and inaction. However, knowing the Liberals' spin machine, they are going to say that this $4.5 billion life-support system is actually a health care investment.
The Liberals want to introduce this bill to ensure that we never see another pipeline built in Canada again. In this bill, we can clearly see that this regulatory process is designed for political influence and intervention. The minister can step in any time she wants and kill any major energy resource project at any time. This even includes the various stages where there is no formal ministerial approval required. It is going to be energy east all over again. It does not clarify or streamline an objective evidence-based process where decisions will be made by experts.
The Liberals can scrap entire pipeline projects for purely political reasons, and there is nothing anyone can do about it. Of course members are sitting there saying that surely the Liberals would not kill something like an energy project, like a billion dollar gas plant for political reasons? I know that it was the Ontario Liberals, but where do people think most of the current Liberal PMO staffers come from? Of course, they come from Queen's Park.
Placing this kind of power in the hands of the minister will reduce transparency and give industry no guarantee that sensible projects will move forward. This planning phase is also concerning because, under the proposed bill, an environmental advocacy group from Sweden has as much right to be heard as a Canadian energy industry advocacy group.
I suppose we should give even more ministerial powers to the Liberals. After all, what could go wrong? We have had ad scam, the sponsorship scandal, the gun registry, Shawinigate, HRDC under the previous Liberal government, and of course the clam scam, where the fisheries minister personally intervened to give a lucrative clam fishing quota to, now get this, a brother of a sitting Liberal MP, a former Liberal MP, and a family member of the current fisheries minister. A Gordie Howe hat trick is described as a hockey game where one gets into a fight, scores a goal, and gets an assist. This is a Gordie Howe hat trick of corruption: a brother of a Liberal MP, a former Liberal MP, and to top it off, a family member of the deciding and interfering Liberal minister.
I could mention more Liberal scandals, but I should not talk about that if I want to finish by midnight. However, if people at home who are watching on CPAC are bored and want a more fulsome understanding of some of the Liberal scandals, they should take a look at https://www.mapleleafweb.com/forums/topic/4466-199-liberal-scandals.
I will return back to the bill. Steve Williams, the CEO of Canada's leading integrated oil and gas company, Suncor Energy, said that this legislation will effectively end his corporation's ability to invest in major Canadian projects. Suncor is worried about Canada's lack of competitiveness because, as he said, “other jurisdictions are doing much more to attract business”. The Liberal government just gave $4.5 billion of taxpayers' money to Kinder Morgan to invest back in the U.S. No offence to Mr. Williams and his comment, but he is incorrect. With the current government, other jurisdictions do not have to do more to attract business, because it will give money to companies to invest in other jurisdictions.
Canada's largest developer in the oil industry says it will not be able to invest in Canada, will not be able to create jobs in Canada, will not be able to pay more taxes in Canada, or create more wealth for Canadians. Suncor is a valued employer in Alberta, and provides thousands of well-paying jobs to indigenous people, youth, and new Canadians. Maybe if we change the name to Suncorbardier, then the Liberals would not try to phase out Suncor and our oil sands, but here we are.
We are talking about billions of dollars in investment going straight to the U.S. and other energy producing jurisdictions. This combined with higher taxes and more government uncertainty makes Canada a more difficult place to invest capital.
Bill C-69 completely fails to improve our ability to compete. In fact, it is only going to make matters worse. GMP FirstEnergy has also criticized Bill C-69 because it has “increased complexity, subjectivity and open-ended timelines”. The company sees “nothing in these proposed changes that will attract incremental energy investment to Canada.”
These statements do not exactly sound like a ringing endorsement for Bill C-69. We have some of the strongest and most stringent environmental regulations and standards in the entire world, so why are we introducing even more regulations when our system is world renowned?
We have seasoned experts telling us that over the years the ability of these major resource projects to get completed has become exceedingly difficult and is now almost impossible, and the Liberals want to introduce even more regulations to effectively put these projects six feet under.
Unfortunately, six feet under will refer to Alberta's economy and not the placement of a pipeline. Of course, the Liberals believe that adding increasingly complex legal frameworks and indeterminate regulatory methods will somehow expedite the process. The environment minister says we need a process with no surprises and no drama. I think what she meant to say is that she wants a process with no surprises, no drama, and no development, and perhaps no future for the young workers in Alberta.
I am sure members have heard this many times before. The Liberals love to talk about how the environment and the economy go hand in hand. However, Bill C-69 does not even live up to their own shaky standards in this regard. This policy puts red tape and the interests of foreigners first and the economy, jobs, and prosperity of Canadians dead last.
Energy development is crucial to jobs and economic opportunity in this country and Bill C-69 will only make it more difficult for private companies to receive approval for critical infrastructure projects.
I will remind the Prime Minister that many Albertans are still struggling to find work and pay their bills. His policies will only cause further harm to them and kick them while they are down.
Former premier Frank McKenna announced in mid-February that Canada has lost $117 billion due to pipeline woes. How does this legislation address that issue? I will answer that question: it does not. It does absolutely nothing. I would argue that the $117-billion loss is only going to climb higher in the future.
Bill C-69 will decrease Canada's economic competitiveness, without resulting in any meaningful environmental protection. While the United States scraps excessive regulations and cuts taxes for its citizens, the Liberal government has chosen to impose more unnecessary red tape, longer project timelines, and higher taxes for middle-class families. Bill C-69 will make it increasingly difficult to compete with countries around the world and grow our economy. The approval process will become even longer, more tedious, and completely unappealing to the private sector.
Seriously, what company wants to come forward and invest billions in Canada when they see the government actively kills energy projects and their only hope to get something done after the Liberal action is to nationalize it?
Venezuela is a mess right now because of nationalizing its oil industry. Experts are saying the way for Venezuela to get out of the hellhole it has created is to un-nationalize its oil industry. What are we doing? We are nationalizing our pipeline. We cannot afford to add uncertainty for companies who want to invest in Canada.
The Liberal government has managed to consistently decrease investor confidence with each and every passing day. It should be more cautious with its legislation. Liberals continuously outdo themselves and are setting the bar for failure as a government. We already have $20 billion in deficits every year, so what could possibly go wrong as investor confidence reaches new lows?
I cannot support a bill that would kill jobs in Edmonton, that would kill jobs in Alberta, and that would chase away energy investment at the same time as doing nothing for the environment.
Michael Cooper Conservative St. Albert—Edmonton, AB
Madam Speaker, I would ask the member for Edmonton West about the issue of standing in Bill C-69. Peeling that back to the last election, we saw an unprecedented assault on Canadian democracy with U.S. money funnelled to third parties that, in turn, backed the Liberal Party. Now we have Bill C-69, which opens standing up to foreign anti-oil sands activists. The government has now introduced Bill C-76, which leaves a major loophole with respect to foreign funding of third parties, which essentially says that it is open season for foreign entities to fund registered third parties if the monies are transferred before June 30.
Does the hon. member for Edmonton West think that this is all a coincidence or is this just a case of the Liberal Party trying to benefit from foreign funding to help it during elections and to advance its activist radical agenda to keep Alberta energy in the ground?
Kelly McCauley Conservative Edmonton West, AB
Madam Speaker, if only the Liberals were as efficient in governing as they are in skullduggery around such issues, Canada would be a much better place.
My colleague brings up some very valuable points. The U.S. treasury department is, right now, investigating Russian interference in its energy industry. Russia views the U.S. and Canada as major energy competitors. Without its energy industry, Russia would be bankrupt, so it is against the interests of the U.S. and Canada to grow their energy industries. Russia is funnelling money, as the U.S. treasury department says, into Tides U.S.A. Tides U.S.A. sends its money to Tides Canada, which then funnels it to Leadnow, which campaigns on behalf of the Liberal government of Canada.
Now the government is introducing Bill C-76 that will open the floodgates for more foreign money coming into Canada and Bill C-69 would also allow equal standing for radical environmentalists from the U.S., Russian activists, and a Canadian appearing before the regulatory regime.
Michael Cooper Conservative St. Albert—Edmonton, AB
Madam Speaker, the Minister of Environment stated that one of the objectives of Bill C-69 is to increase investor confidence. The hon. member for Edmonton West pointed out that under Bill C-69, the Minister of Environment has the discretion to cancel a project at any point, including during the planning stage before any environmental assessment is conducted, before any economic impact is studied, and before any scientific analysis is done. How does that square with increasing public confidence and investor confidence? It seems to me to be some kind of joke.
Kelly McCauley Conservative Edmonton West, AB
Madam Speaker, the member brings up very valid points about investment in Canada.
I will read from an article from Bloomberg today, which states, “Unlike portfolio investment, foreign direct investment is considered a stable source of funding that comes with the additional benefits of a transfer of know-how. Instead, an increasing amount of Canada’s funding needs are being met by short-term funds denominated in foreign currencies”, meaning loans, “which makes the country more vulnerable to a sudden loss of interest from foreign investors.” Bloomberg is saying that Canada is relying on debt for growth and not foreign investment.
It notes in this article that the amount that the Government of Canada is giving Kinder Morgan to buy Trans Mountain is greater than the entire investment in Canada in the last quarter of last year. Bill C-69 is only going to pile on the flight of capital from Canada.
Michael Chong Conservative Wellington—Halton Hills, ON
Madam Speaker, Bill C-69, in front of us today, has a lot of different changes to current acts of Parliament, but also introduces new acts of Parliament. While I support one of the principles in the bill, which is the “one project, one assessment” process for major natural resource projects, there are too many problems with this bill for me to support it.
In particular, I want to focus on the new impact assessment act that the bill creates. First and foremost, the bill will not streamline, and make quicker, assessments for projects designated to be included in the project list. While the government says that the proposed impact assessment act would reduce the current legislated timelines for reviewing projects from 365 days to a maximum of 300 days for assessments led by the new review agency, and from 720 days to a maximum of 600 days for assessments led by a review panel, it is failing to acknowledge that while these timelines are shorter, the new legislation also introduces a planning phase ahead of an assessment led by either the review agency or the review panel. That planning phase can last up to 180 days.
In fact, this legislation will actually increase the amount of time that it takes for major natural resource projects to be reviewed under a federal environmental assessment. Furthermore, while the timelines put in place for the actual impact assessment are shorter, the timelines in the current legislation in front of the House can be extended by the Minister of Environment and by the cabinet, repeatedly.
There is nothing in this legislation to suggest that the process by which we review proposed projects will be shorter, in fact it suggests that it is actually going to be longer. The legislation in front of us will not actually lead to more efficient and less costly assessments for companies looking to invest in Canada's natural resource sector. In fact, the evidence in the bill is that it is going to be much more expensive for companies to make these applications, because the government has proposed to substantially expand the number of criteria that the review agency or review panel has to take into consideration when it is assessing a project. It does not just have to take into account environmental factors. It now also has to take into account health, social, and economic impacts, as well as impacts on other issues, and these impacts over the long term.
When we take into account this vastly expanded criteria and that it is vastly expanded over the long term, it is clear that companies are going to have to spend a lot more money preparing for these applications and working through the application process.
Proposed subsection 22 of the impact assessment act lists more than 20 factors that have to be considered in assessing the impact of a designated project. For example, there is a reference to sustainability and to the intersection of sex and gender with other identity factors. These are just some of the added criteria that the government has added to the process, which is just going to increase the cost and complexity for proponents. It is not only going to be a much longer process for proponents to go through; it is also going to be a much costlier process.
This is a big problem, because we have a problem in Canada with attracting, not just domestic but foreign investment for natural resource projects. In fact, Statistics Canada recently, this past spring, highlighted that there has been the biggest drop in foreign direct investment into this country in eight years. Last year saw the deepest plunge in foreign investment in this country since the deep, dark days of 2010, when we were just coming out of the recession of 2009 caused by the global financial crisis of 2008.
We have seen a massive plunge in foreign direct investment, a massive drop in investors willing to invest in Canadian companies. In fact, last year, for the second year in a row, we saw more foreign selling of Canadian companies than purchasing of Canadian companies. This has led to a drop in investments, particularly in the oil sector, with the commensurate drop in jobs and growth.
However, there is another problem with the bill that I want to highlight, which has to do with the designated project list. In other words, there is a problem in how certain projects get designated for an environmental assessment and how other projects do not. It remains to be seen with the proposed legislation whether or not the government will get it right in regulation.
Earlier this year, the government announced that it was going to undertake consultations with a view to help revise the regulations concerning the designated projects list. The Liberals said they would be coming forward with new regulations under the proposed act, and I hope they read the Hansard transcript tonight of the debates here in the House of Commons to ensure that our input is incorporated if the bill does pass in these new regulations.
The problem is one of inequity and unfairness from a whole range of perspectives. If a mine is proposed in western Canada, let us say in Alberta, under both the pre-2012 rules and the current 2012 rules, and potentially under the proposed legislation, it would undergo a federal environmental assessment. However, if that same mine was proposed in southern Ontario, mines that we often call “gravel pits” or “quarries”, it would not undergo a federal environmental assessment.
I will give members an example of this. In 2011, a mega-quarry was proposed in southern Ontario by an American company that had acquired over 2,500 acres of prime farmland in Dufferin County. That American company had acquired the equivalent of 10 square kilometres of land to build an open pit mine. Under the pre-2012 rules and the 2012 rules, and potentially under this proposed legislation, the federal government said that it did not require a federal environmental assessment, yet if that same 10 square kilometre mine was proposed in Alberta, let us say an open pit bitumen mine, a federal environmental assessment most certainly would have been required. This is an example of the unfairness of the current and potentially the proposed system the federal government has.
If one builds a mine to extract iron ore or bitumen in western Canada, one would undergo a federal environmental assessment, but if the same mine is proposed in southern Ontario, then do not worry, the government will turn a blind eye and not have it undergo that federal environmental assessment. Therefore, it is not just treating one sector of the economy different from another, the oil and gas sector, or the iron ore sector compared with the aggregate sector, but it is also treating one region of the country differently from another, and that is not fair. I hope that the government, in undertaking these consultations, takes that into account.
It is also not fair to the environment when a 10 square kilometre open pit mega-quarry is proposed for southern Ontario, which would have plunged 200 feet deep and pumped 600 million litres of fresh water out of the pit each and every day. It should undergo the same federal environmental assessment that a mine of similar size would undergo in western Canada. It should undergo that, because in southern Ontario we have the most dense biosphere in the entire country. There is all the more need to protect this dense biosphere, which is under greater threat than any other part of the country largely due to the growing urban populations we see in the Montreal, Quebec City, Ottawa, Windsor, and Toronto corridor.
I hope the government's yet to be created project list, whether it is based on the current legislation or the proposed legislation, treats all sectors of the economy and all regions of the country fairly, and I hope the department is incorporating this input as it comes forward with new regulations.
There is yet another problem with the proposed legislation before the House, and it plays into a broader pattern of the government, and that is of political interference. As the member for St. Albert—Edmonton just pointed out, the proposed legislation would allow the minister a veto power over natural resource project applications. This is unprecedented in this country. Until the Liberal government came to power, not a single natural resource project had been rejected or approved by the federal cabinet before the federal environmental assessment process had been completed, and not a single federal environmental assessment process had been overruled by federal cabinet.
In other words, up until this government, the federal cabinet accepted every single recommendation coming out of a federal environmental review process over the many decades that it was in place. The current government's rejection of the northern gateway pipeline was the first time the federal cabinet had stopped the process for the review of a major natural resource project before allowing that process to be completed and before allowing the cabinet to accept fully the recommendations of that process.
Here, in this legislation, we see a repeat of that pattern. They are proposing to give the minister a veto power. Before an impact assessment can begin, the minister will have the power not to conduct an assessment if the minister believes the proposed project would cause unacceptable effects. That is so broad a criteria that a person could drive a Mack truck through that. There again we see the politicization of processes that were once arm's length, quasi-judicial, and left to the professional public service.
Another example of this politicization of what was once performed by the professional public service, by quasi-judicial entities is Bill C-49. Bill C-49 gives the Minister of Transport a political veto over a review of joint ventures by an airline. Up to Bill C-49, and for many years, any airline that wanted to enter into a joint venture had to undergo a review by one of the premier law enforcement agencies in the world, the Competition Bureau, to ensure that there were no anti-competitive results from a joint venture. In fact, when Air Canada proposed a joint venture with United Airlines some years ago, the Competition Bureau said no to the original proposal for that joint venture and said they had to pull out of that joint venture a number of cross-border routes because they would be deleterious to competition, and because it would increase prices for consumers and for businesses across Canada.
What the current government has done through Bill C-49, which it rammed through the House and Senate, is it has given the Minister of Transport the ability to veto that process through a broad definition of public interest to bypass the Competition Bureau's review of a joint venture, and to rubber-stamp a joint venture in the interests of the airline and against the competition interests of consumers in this country. With the recent passage of Bill C-49, Air Canada has announced a joint venture with Air China. I do not think that is any coincidence.
Thus, there are just a few examples of how the government is politicizing the process for law enforcement of our competition laws for the review of major natural resource projects that no previous government has ever done.
Finally, I want to critique the Liberal government's general approach to environmental issues. The Liberals have created a climate of uncertainty. On pipeline approvals, they have created uncertainty. That is why Kinder Morgan has announced that it is pulling out of Canada and why it sold its assets to the Government of Canada. They have created a climate of uncertainty in the business community. That is why, as I previously mentioned, Statistics Canada, this spring, reported that foreign investment into Canada plunged last year to its lowest level in eight years. There has been an exodus of capital from the country's oil and gas sector. Statistics Canada reports that capital flows dropped for a second year in a row last year, and are down by more than half since 2015. Net foreign purchases by foreign businesses of Canadian businesses are now less than sales by those foreign businesses, meaning that foreign companies sold more Canadian businesses than they bought.
On climate change, they have created a great deal of uncertainty.
The Liberals came with big fanfare with their price on carbon, but they have only priced it out to $50 per tonne to 2022. They have not announced what happens after 2022. We are four short years away from 2022, and businesses and consumers need the certainty of what happens after 2022.
Furthermore, the Liberals have created uncertainty because $50 per tonne does not get us to our Paris accord targets. In fact, last autumn the Auditor General came forward with a report saying that Canada will not meet its Paris accord targets of a 30% reduction in greenhouse gas emissions from 2005 levels by 2030 with the $50-per-tonne target. He estimated that we are some 45 megatonnes short of the target.
The Liberals have created uncertainty with their climate change policy because they have been inconsistent on climate change policy. They are inconsistent with how they treat one sector of the economy versus another. For example, they demand that projects in the oil and gas sector take into account both upstream and downstream emissions, while not requiring projects in other sectors of the economy to do the same.
They are inconsistent with climate change policy in the way they treat one region of the country versus another. The Auditor General's report from a week ago, report 4, highlights the inconsistency in the way they treat central Canadians versus the way they treat westerners.
For example, the Liberals tell western Canadian oil and gas producers that climate change impacts need to be part of the approval process of any major natural resource project, and yet they turn around and one of the first decisions they make as a government is to waive the tolls on the new federal bridge in Montreal, a $4-billion-plus bridge. The Auditor General reported, in report 4 last week, that waiving the tolls will result in a 20% increase in vehicular traffic over that bridge, from 50 million to 60 million cars and trucks a year, an additional 10 million vehicles crossing that bridge every year, with the attendant greenhouse gases and pollution that this entails.
The Liberals tell companies and Canadians on one side of the country that they have to take into account greenhouse gas emissions when they propose a new project in the oil and gas sector, but when the government builds a brand new federal bridge in Montreal for $4 billion-plus, it is not going to take into account those greenhouse gas emissions. In fact, it will waive the tolls, which is going to lead to a 20% jump in traffic, with the attendant greenhouse gas emissions that this entails.
Finally, the Liberals have created a climate of uncertainty by their failure to realize that our income taxes are too high. The government talks a good game about the environment and the economy, but the facts speak otherwise. They blew a once-in-a-lifetime opportunity to reduce corporate and personal income taxes. They failed to seize the opportunity of using the revenues generated by the price of carbon to drive down our high corporate and personal income taxes. They also failed to seize the opportunity to reform our income tax system to reduce its complexity and its distortive nature.
Our system was reformed in 1971 by the government of Pierre Trudeau. It was reformed again in 1986 by the government of Brian Mulroney. It has been over 30 years since we have had any significant income tax reform to our personal income tax system or our corporate income tax system, and the Liberals blew the chance to do it, even though they promised to take a look at tax reform in their very first budget.
The government talks a good game on the environment and the economy, but the facts say otherwise. It is a story of a missed opportunity, and that is why I cannot support this bill.
Larry Bagnell Liberal Yukon, YT
Madam Speaker, I always enjoy the member's speeches. He is very thoughtful, insightful, and deep. However, I do have some concerns with several of his points.
The member said that we failed on income tax reductions. Actually, the first item we put in the budget when we took power was a reduction in income tax for many Canadians. Unfortunately, it was the member who failed, because he voted against it. Subsequent to that, we put in an income tax reduction for 90% of families through the family tax credit, and again it was the member who failed, not us, because we provided the reduction.
The member talked about investment fleeing Canada, resulting in jobs fleeing Canada. Canada has the highest rate of employment in years, as well as the highest rate of growth in the G7. It is the bottom line that counts.
The member said that our government was giving only four years of certainty on pricing related to greenhouse gas emissions, but the Conservatives have given zero years of certainty to industry on what their plans would be. What are the member's plans for reducing greenhouse gas emissions so that industry can have the certainty that he suggested it should have?
Michael Chong Conservative Wellington—Halton Hills, ON
Madam Speaker, first, the government did not reduce income taxes in aggregate. It robbed Peter to pay Paul. It increased the upper marginal rate from some 29% to 33%, four percentage points, in order to pay for its middle bracket tax plan. Therefore, it did not reduce the overall income tax burden. In fact, income taxes are too high in Canada. Two-thirds of the federal budget's revenues come from income taxes, approximately $200 billion a year: about $170 billion a year from personal income tax and about $30 billion or $40 billion a year from corporate income tax. It did not reduce the overall income tax burden on the Canadian economy, and it blew the opportunity to do that. Hiking income taxes on one bracket of income earners to pay for income tax cuts on another bracket of income earners is not my idea of significant income tax cuts.
Furthermore, with respect to what our plan would do, it will be forthcoming in the election, but I will say that whatever problems there were with the previous government's approach, the sector by sector regulatory approach put decades of certainty into the process. Rather than them layering on, in addition to regulation this price, which ends in 2022, it creates that uncertainty for Canadian consumers and businesses.
Elizabeth May Green Saanich—Gulf Islands, BC
Madam Speaker, I want to return to this issue. It is obviously controversial in this chamber. Why is it that big oil has been exiting the oil sands? There is no question it has been. There is Marathon, Total, Statoil, ExxonMobil, ConocoPhillips, and Imperial Oil. I want to read the hon. member two quotes. This is what two large companies from the industry say about their departure. This is what was reported in Reuters in May of this year.
Norway’s Statoil said it aims to cut its carbon footprint more aggressively as measures to reduce global warming could reduce the value of its assets, leaving some of its reserves stranded underground.
Fortune magazine, referring to Shell stated:
If Shell failed to prepare for this new energy landscape, it could wind up saddled with massive stranded assets: buried oil and gas that its shareholders paid billions to find, but that, because of softening demand, the company found itself unable to profitably drill and sell.
There is a real phenomenon happening globally of large corporations examining the threat of the carbon bubble and they could end up with stranded assets. Unfortunately, bitumen is about the most heavy carbon-intensive fossil fuel product out there in the petroleum area. I wonder if my hon. colleague has any comments on that.
Michael Chong Conservative Wellington—Halton Hills, ON
Madam Speaker, with respect to Norway, in some ways it is much easier for them to make the case for reducing emissions than it is for us, because Norway, granted through foresight, built up a trillion dollar sovereign wealth fund and now has that asset to depend on its future interest and capital gains to fund all the programs that Norwegians have come to rely upon. We do not have that here in Canada, anywhere near that scale, so I think Statoil and Norway sovereign wealth fund are in some ways in an enviable position that we simply do not find ourselves in.
What I do know is this. I believe that every major resource project in the country should undergo a proper and full environmental assessment, but if we want to combat climate change and reduce emissions, the right way to do it is not by denying the construction of new pipelines, new highways, or things like that. It is to actually properly price carbon, either through a regulatory approach or other approaches that will actually result in a reduction in emissions, rather than targeting the method by which we transport those products.