Bill C-88 (Historical)

An Act to amend the Mackenzie Valley Resource Management Act and the Canada Petroleum Resources Act and to make consequential amendments to other Acts

Part 1 of this enactment amends the Mackenzie Valley Resource Management Act to establish an administration and enforcement scheme in Part 5 of that Act that includes the issuance of development certificates. It also adds an administrative monetary penalty scheme and a cost recovery scheme, provides regulation-making powers for both schemes and for consultation with Aboriginal peoples and it allows the Minister to establish a committee to conduct regional studies. Finally, it repeals a number of provisions of the Northwest Territories Devolution Act that, among other things, restructure the regional panels of the Mackenzie Valley Land and Water Board, but that were not brought into force.
Part 2 of the enactment amends the Canada Petroleum Resources Act to allow the Governor in Council to prohibit certain works or activities on frontier lands if the Governor in Council considers that it is in the national interest to do so.

(The House divided on the motion, which was agreed to on the following division:)

Vote #1287

Mackenzie Valley Resource Management Act

[The Speaker, Liberal, Geoff Regan]

I declare the motion carried.

I will inform the House that because of the proceedings on the time allocation motion, Government Orders will be extended by 30 minutes.

The House resumed from December 3, 2018, consideration of the motion that Bill C-88, An Act to amend the Mackenzie Valley Resource Management Act and the Canada Petroleum Resources Act and to make consequential amendments to other Acts, be read the second time and referred to a committee.

Second Reading

[Jamie Schmale, Conservative, Haliburton—Kawartha Lakes—Brock, ON]

Mr. Speaker, I rise today to speak to Bill C-88, an act to amend the Mackenzie Valley Resource Management Act and the Canada Petroleum Resources Act and to make consequential amendments to other acts.

The bill would make two amendments to the Mackenzie Valley Resource Management Act of 1998, and I will refer to this in my speech going forward as MVRMA. Part A reverses provisions that would have consolidated the Mackenzie Valley land and water boards into one. These provisions were introduced by the former Conservative government within Bill C-15, Northwest Territories Devolution Act of 2014.

Part B would amend the Canada Petroleum Resources Act to allow the Governor in Council to issue orders, when in the national interest, to prohibit oil and gas activities, and freezes the terms of existing licences to prevent them from expiring during a moratorium.

Bill C-88 is yet another Liberal anti-energy policy in a long list of policies from the government that are driving energy investments out of Canada, costing Canadian workers their jobs and increasing poverty rates in the north.

First, I will speak to part A of the bill, the section that reverses the previous government's initiative to consolidate for the devolution of governance of the Northwest Territories, wherein the federal government transferred control of the territories' land and resources to the Northwest Territories government.

Part of that plan sought to restructure the four Mackenzie Valley land and water boards into a single consolidated superboard, with the intent to streamline regulatory processes and enable responsible resource development. For the reasons why this was proposed under Bill C-15, we have to turn back the clock nearly seven years earlier when, in 2007, then-minister of Indian affairs and northern development, the hon. Chuck Strahl commissioned a report on improving regulatory and environmental assessment regimes in Canada's north.

The consolidation of the Mackenzie Valley land and water boards into one entity was a key recommendation, which would address the complexity and capacity issues by making more efficient use of expenditures and administrative resources, and allow for administrative practices to be understandable and consistent.

Furthermore, during debates in the House in 2013 and 2014, the then-minister of aboriginal affairs and northern development, Bernard Valcourt and the member for Chilliwack—Hope, or as it was known back then, Chilliwack—Fraser Canyon, pointed out that the restructured board was included in the final version of the modern land claim agreements.

The proposed changes were not acceptable to everyone, and two indigenous groups, the Tlicho Government and Sahtu Secretariat, filed for an injunction with the Northwest Territories' Supreme Court to suspend the related provisions.

They argued that the federal government did not have the authority to abolish the Mackenzie Valley regulatory regime without consultation with affected indigenous communities. I should point out that, at the time, Liberal members of Parliament voted in favour of Bill C-15 when it was debated in Parliament, including the Prime Minister.

The report commissioned by the then-minister of Indian affairs and northern development was never meant to diminish the influence that indigenous people have on resource management in the north. Rather, it was meant to allow for this influence in a practical way, while at the same time enabling responsible resource development through an effective regulatory system.

This brings us back to today and the bill currently before us. As previously mentioned Bill C-88 would repeal the restructuring of the four land and water boards but also reintroduce regulatory provisions that were included in the previous Conservative government's Bill C-15.

These provisions have been redrafted to function under the current four-board structure and provide for the following: an administrative monetary penalty scheme that will provide inspectors with additional tools to enforce compliance with permits and licences under the MVRMA; an enforceable development certificate scheme following environmental assessments and environmental impact reviews; the development of regulations respecting consultation, which are intended to help clarify the procedural roles and responsibilities respecting indigenous consultation; clarification of requirements for equal proportions of nominees from government and indigenous governments and organizations; a 10-day pause period between a board's preliminary screening decision and the issuance of an authorization to allow for other bodies under the MVRMA to refer a project to an environmental assessment; regional studies that provide the minister with the discretion to appoint committees or individuals to study the effects of existing and future development on a regional basis; the authority to develop cost-recovery regulations that would provide the federal government with the ability to recover costs associated with proceedings; and the extension of a board member's term during a proceeding to ensure board quorum is maintained until the conclusion of an application decision.

These are good regulations and I am glad to see that the current government is continuing on with that and did not throw away these provisions.

The Liberals will say that Bill C-88 is about consultation, however, under part 2 is where the real motivation for Bill C-88 becomes evident.

Part 2 is simply the Liberals' plan to further politicize the regulatory and environmental processes for resource extraction in Canada's north by giving cabinet sweeping powers to stop projects based on its so-called national interest. So much for the comments from the parliamentary secretary to the minister of indigenous and northern affairs, who, on speaking to the Conservatives' Bill C-15 on February 11, 2014, said:

As Liberals, we want to see the Northwest Territories have the kind of independence it has sought. We want it to have the ability to make decisions regarding the environment, resource development, business management, growth, and opportunity, which arise within their own lands.

I would agree with that.

Bill C-88 exposes the Liberals' full rejection of calls from elected territorial leaders for increased control of their natural resources. The Liberals have demonstrated disregard for those who speak truth to power, they have demonstrated contempt for indigenous peoples advocating for the health and welfare of their children and now they are adding indifference for northern Canadians' interests to their long litany of groups marginalized by the Liberal government.

The Conservatives strongly criticized the Liberals for a moratorium on offshore oil and gas development in the Beaufort Sea, an announcement made in December 2016, in Washington, D.C. by the prime minister, an announcement, I might add, where territorial leaders were given less than an hour's notice. The Liberal government's top-down maternalistic approach to northerners must end. It does nothing to reduce poverty in remote and northern regions of Canada.

Like Bill C-69, the no-more pipelines bill before it, Bill C-88 politicizes oil and gas extraction by expanding the powers of cabinet to block economic development and adds to the increasing levels of red tape proponents must face before they can get shovels into the ground. Like Bill C-68, the convoluted navigable waters bill before it, Bill C-88 adds ambiguity and massive uncertainty in an already turbulent investment climate. Like Bill C-48, the tanker ban bill before it, Bill C-88 aims to kill high-quality, high-paying jobs for Canadians and their families who work in the oil and gas-related industries.

We know the Prime Minister's real motivation. He spelled it out for us at a Peterborough, Ontario town hall in January 2017, when he clearly stated that he and his government needed to phase out the oil and gas industry in Canada. The Prime Minister's plan to phase out the energy industry has been carried out with surgical precision to date.

The Liberals' job-killing carbon tax is already costing Canadian jobs. Companies repeatedly mention that the carbon tax is the reason they are investing in jobs and projects in the United States over Canada. The Liberals new methane regulations could end refining in Canada by adding tens of billions of dollars of cost to an industry that is already in crisis.

The Liberals introduced their interim review process for oil and gas projects in January 2016, which killed energy east, the 15,000 middle-class jobs it would have created and the nearly $55 billion it would have injected into the New Brunswick and Canadian economies, a review process which delayed the Trans Mountain expansion reviews by six months and added upstream admissions to the review process.

The Liberal cabinet imposed a B.C. north shore tanker ban within months of forming government, with no consultation or scientific evidence to support it. The Liberals cancelled the oil and gas exploration drilling tax credits during a major downturn in the oil and gas sector, which caused the complete collapse of drilling in Canada. The Liberals' proposed fuel standard will equate to a carbon tax of $228 per tonne of fuel according to their own analysis.

When the Prime Minister vetoed the northern gateway pipeline, he killed benefit agreements between the project and 31 first nations, worth about $2 billion. The unprecedented policy will apply not to just transportation fuels but to all industries, including steel production, heating for commercial buildings and home heating fuels like natural gas.

All this is destroying energy jobs and investment from coast to coast to coast. Now, with Bill C-88, we add another coast, the northern coast.

The Liberals love to champion the Prime Minister's personal commitment to a new relationship with indigenous people through new disclosure and friendly policies. They will, no doubt, due so again with Bill C-88.

This is what some organizations and people have to say, with respect to the Prime Minister's so-called commitment:

Stephen Buffalo, the president and CEO of the Indian Resource Council, in the National Post, October 19, 2018 stated:

...the government of Canada appears to consult primarily with people and organizations that share its views...It pays much less attention to other Indigenous groups, equally concerned about environmental sustainability, who seek a more balanced approach to resource development.

Here is another quote from that article:

The policies of the [Prime Minister's] government are systematically constraining the freedom and economic opportunities of the oil- and gas-producing Indigenous peoples of Canada. We are not asking for more from government. We are actually asking for less government intervention

Roy Fox, chief of the Kainaiwa first nation, in The Globe and Mail, December 10, 2018 stated:

While the Kainaiwa [nation] continue to fight against high unemployment, as well as the social destructiveness and health challenges such as addiction and other issues that often accompany poverty, my band’s royalties have recently been cut by more than half. Furthermore, all drilling has been cancelled because of high price differentials – the enormous gap between what we get on a barrel of oil in comparison to the benchmark price – which has limited employment opportunities on our lands.

Chief Fox continued:

...it’d be an understatement to say the policies proposed within Bills C-69 and C-48 are damaging our position by restricting access and reducing our ability to survive as a community....I and the majority of Treaty 7 chiefs strongly oppose the bill for its likely devastating impact on our ability to support our community members, as it would make it virtually impossible for my nation to fully benefit from the development of our energy resources.

I can continue to read quotes. However, we here on this side of the aisle are deeply disappointed that the Prime Minister, who campaigned on a promise of reconciliation with indigenous communities, blatantly would allow and choose to deny our 31 first nations and Métis communities their constitutionally-protected right to economic development.

This is from the Aboriginal Equity Partners:

We see today's announcement as evidence of the government's unwillingness to follow through on the Prime Minister's promise.

The Government of Canada could have demonstrated its commitment by working with us as environmental stewards of the land and water to enhance marine safety. All 31 AEP plus the other affected communities should have been consulted directly and individually in order to meet the Federal Government's duty to consult.

I have said this many times in my speech. It is time to stop politicizing these projects. Bill C-88 politicizes oil and gas development in the far north by providing the cabinet in Ottawa the unilateral power to shut down oil and gas development without consulting the people it affects directly.

I want to point to a few “key facts” from NRCAN's website. It states that in 2017, Canada’s energy sector directly employed more than 276,000 people and indirectly supported over 624,000 jobs; Canada’s energy sector accounts for almost 11% of nominal Gross Domestic Product (GDP); government revenues from energy were $10.3 billion in 2016; more than $650 million was spent on energy research, development, and deployment by governments in 2016-17; and Canada is the sixth largest energy producer, the fifth largest net exporter, and the eighth largest consumer

Just last week, in The Globe and Mail, David McKay, the president and CEO of the Royal Bank of Canada, stated:

History has placed Canada at a crossroads. No other country of 37 million people has access to more natural resources – and the brainpower to convert those resources into sustainable growth for a stronger society.

And yet, Canada is at risk of taking the wrong turn at the crossroads because some believe there are only two paths: one for economic growth, and the other for environment.

We’re seeing this dilemma play out in Canada’s energy transition as we struggle to reconcile competing ideas.

We aspire to help the world meet its energy needs and move to ever-cleaner fuel sources. We aim to reduce our carbon footprint. We want Indigenous reconciliation and long-term partnership. And we hope to maintain the standard of living we have come to enjoy.

But without a balanced approach to harnessing our energy future, all of this is at risk.

We need to take a third path--one that will help us develop our natural resources, invest in clean technologies and ensure a prosperous Canada....

But we’re reaching a critical time in our country’s history.

As our resources sector copes with a growing crisis, we worry that Canada is not setting up our energy industry for growth and success in a changing world.

When I travel abroad, and proudly talk up our country, too many investors tell me they feel Canada's door is closed when it comes to energy. We need to change that impression immediately, because these investors are backing up their words with action.

According to a recent study from the C.D. Howe Institute, Canada has lost $100-billion in potential investment in oil and gas in the past two years.

We can’t forget that energy is not only part of the economic fabric of Canada, it also funds our social needs. The sector has contributed $90-billion to government revenues over the past five years, which covers about 10 per cent of what the country spends on health care, according to RBC Economics.

And if we squander our huge advantage and cede the dividends to other countries, we’ll also risk losing the opportunity to help combat the most daunting challenge of all – climate change.

The article ends with the following charge to government:

We can’t stay at a crossroads.

It’s time for Canada to pull together on a plan – one that re-energizes our place in the world.

The Conservatives have long viewed the north as a key driver of economic activity for Canada for decades to come. The Liberals, however, view the north as a place to create huge swaths of protected land and shut down economic activity.

Bill C-88 appears to be based in a desire to win votes in major urban centres rather than reduce poverty in remote regions of Canada. Northerners face the unique challenges of living in the north with resilience and fortitude. They want to create jobs and economic opportunities for their families. They deserve a government that has their backs.

We are at a crossroads and it is time for Canada to pull together a plan. The Conservatives are up to that challenge. We look forward to unveiling our plan and growing the economy in the next election for voters to decide for themselves who really has the best interests of Canadians.

[Mark Gerretsen, Liberal, Kingston and the Islands, ON]

Mr. Speaker, I listened to the 20-minute speech of the member across the way. One of the very important things to point out, which in fact happens a lot when we listen to the Conservatives, is that when they talk about the energy industry and sector, what they really mean to say is energy that is derived from oil-based products. A lot of the facts he brought up may have been true related to fossil fuel energy, but the reality of the situation is that when he talks about driving energy workers out of Canada, he is misleading in the sense that he is not capturing the fact that over the past five years the green energy sector has increased by 37% in Canada. Over $25 billion have been invested into green energy in Canada.

In fact, for the first time, as recently reported by The Globe and Mail, the newspaper the Conservatives like to quote so much in the House lately, the green energy sector now employs 23,700 people whereas the oil sands are at 23,340. Despite what we have heard about the oil sector specifically and its contribution to energy, would he at least not recognize that now, for the first time pretty much ever, the green energy sector is a significant component to producing energy for our country?

[Jamie Schmale, Conservative, Haliburton—Kawartha Lakes—Brock, ON]

Mr. Speaker, as my friend mentioned, green energy has seen investment of about $25 billion. We have also seen about $100 billion more leave the energy sector and the oil and gas sector.

He talks about the 23,700 people working in the clean energy sector. What about the 100,000-plus people in Alberta and Saskatchewan who have lost their jobs?

I do not think it is one or the other; it is both. As we have said many times in the House and elsewhere, Canada has some of the most responsible resource management anywhere in the world. We are a world leader. We should be promoting that. If we want to ensure that the bad actors in this world, like Nicaragua and Venezuela, start to up their game, we need to get our product to markets that want a resource responsibly extracted. We have great labour and environmental laws, and the list goes on.

We should be promoting this. We should be getting our energy to markets. We can have a green energy sector working with the oil and gas sector, not just pick one over the other.

[Linda Duncan, NDP, Edmonton Strathcona, AB]

Mr. Speaker, one of the important aspects of Bill C-88 is that it would restore the four water and land co-management boards, which were established by a negotiated agreement between the federal and territorial governments and the first nations of the north, but the Tlicho and Sahtu people went to court and had that bill struck down.

What is important and significant is that the land claim and self-government agreements are now modern treaties entrenched in the Constitution.

Could the member tell us how his party rationalizes arguing against the Constitution of Canada in saying that the boards should not be restored?

[Jamie Schmale, Conservative, Haliburton—Kawartha Lakes—Brock, ON]

Mr. Speaker, Conservatives have been saying the whole time that we need to ensure that the bill lets people in the north decide their own future. We have been talking about this, and even my speech, which was 20 minutes long, talked about how giving more power to the territorial governments and letting them have control over their resource development are good things. These are things we should be championing here.

I do not think having Ottawa make decisions for the people in the north is a very smart path forward. Giving more power over their decisions to those who are there on the ground is the way to go.

[William Amos, Liberal, Pontiac, QC]

Mr. Speaker, I would like to point out the inconsistency in speech by the member opposite. On the one hand he is suggesting that the indigenous people of our northwest should be in control of their destiny. That absolutely should be the case. However, the legislation passed by the Harper administration ran absolutely roughshod over their constitutionally entrenched rights. Their land and water boards were amalgamated and were effectively dealt with so disrespectfully that the courts up north upheld an injunction.

How can the member possibly suggest that our government, in issuing a moratorium on Arctic offshore drilling in the northwest—which I happen to be very proud of—is somehow controlling the future of that resource, when the Conservatives, under the Harper administration, stripped the land and water boards of so much of their authority?

[Jamie Schmale, Conservative, Haliburton—Kawartha Lakes—Brock, ON]

Mr. Speaker, I would point out that Bill C-15 under the previous Parliament received support from the Liberal Party, including from the current Prime Minister.

I will also point out that we had agreements with the 31 first nations communities along the northern gateway pipeline that was killed. They were directly impacted by the northern gateway pipeline. This was worth about $2 billion in economic activity for those first nations communities. They have spoken up loud and clear to say that there are decisions being made in Ottawa that are are impacting their economic future.

If we want to reduce poverty in some of these northern communities, responsible resource development is a path forward to create jobs, opportunity and wealth. This is what they are asking for, and I think it is something we should heed.

[Cathy McLeod, Conservative, Kamloops—Thompson—Cariboo, BC]

Mr. Speaker, my colleague really articulated well that the Liberals like consultation by convenience. He gave a number of examples, such as the moratorium up north in the Beaufort Sea for which the leadership had half an hour of notice, or the tanker moratorium, or Bill C-69. Liberals talk a good talk about consultation, but in actual fact they have not done a very good job, including when, as we found out, they had not done a proper job with the Trans Mountain pipeline.

Does the member think this is part of the government's anti-development plan, in which it consults if people want to shut things down but its does not consult when people want to move forward with economic opportunities in their communities?

[Jamie Schmale, Conservative, Haliburton—Kawartha Lakes—Brock, ON]

Mr. Speaker, I agree that Bill C-88 is yet another anti-energy policy from the government. It is driving investment out of Canada. It is taking potential opportunities away from those in the north who want a path forward, a path to prosperity by harnessing resources in a very responsible manner, something in which Canada is a world leader. If people in the north are asking for more power to define their future, to create their own path, that is something we should be doing, rather than having an Ottawa-knows-best approach.

I was at the AME Roundup in Vancouver a few months ago. It is a very large mining conference, although not as big as PDAC in Toronto. When we spoke with people in the north, that was the number one issue they were talking about. These were not mining people from big companies; they were juniors, start-ups, people in the middle, all talking about the fact that there is great potential in the north for responsible resource development, but they do not feel that making the north a park, basically, is a way to do that or to create jobs, wealth and opportunity.

We should be listening to those people.

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Mr. Speaker, what we have before us is very positive legislation that ultimately would have a positive impact in northern Canada. That includes being sensitive to the many different stakeholders as well as to the environment in the development of resources and so forth. I believe the Government of Canada has been called upon to do this. I do not share the same pessimism that comes from across the way.

This is a government that has been very good at developing our country as a whole, both from an economic and an environmental perspective. That is one of the reasons we created 900,000-plus jobs.

Does the member feel that there are amendments that the Conservatives will bring forward to try to improve upon the legislation, or is their intention just to vote against it as it is?

[Jamie Schmale, Conservative, Haliburton—Kawartha Lakes—Brock, ON]

Mr. Speaker, as the member knows, the Liberals have the majority of seats in this Parliament, so they are going to vote for it and we will be voting against it. We will try within the committee structure to work with the Liberals. Whether not they will be receptive to anything proposed from this side of the House is yet to be seen.

The member opposite talked about the economy. Many economists would agree that it is going very well because of the U.S. economy, which is on fire right now, despite what the Liberals are trying to do in slowing down this economy with red tape, regulations and high taxes.

Jobs are created with low taxes and reasonable red tape and regulations—full stop. It is not because the government says that jobs are going to be created or the Liberals come up with a new next great government program. Jobs are created by low taxes and reasonable red tape and regulations, something they are not doing. That is why this economy is going forward. It is not what they are proposing.

[Matt DeCourcey, Liberal, Parliamentary Secretary to the Minister of Immigration]

Mr. Speaker, I will be splitting my time this afternoon with the member for Winnipeg Centre, but first let me acknowledge that we are here on the traditional unceded territory of the Algonquin people.

I stand in support of Bill C-88, An Act to amend the Mackenzie Valley Resource Management Act and the Canada Petroleum Resources Act and to make consequential amendments to other Acts.

The proposed legislation now before us would modernize the regulatory regime that governs resource development in the Northwest Territories.

The central goal of Canada's approach to regulating resource development in the north has been to realize a project's full potential value while minimizing and mitigating any negative environmental, social and economic impacts. To achieve this goal, regulatory regimes across Canada include measures to assess proposed projects and to track the progress and performance of approved projects.

Environmental impact is a key consideration throughout all phases. In general, and particularly in the north, environmental impact is defined as any effect on land, water, air or any other component of the environment, as well as on wildlife harvesting.

The assessment includes any effect on the social and cultural environment or on heritage resources.

The northern regime has long been ahead of the southern environmental assessment regime in this respect. In the north, regulatory regimes are notably different from those in the rest of Canada, for several reasons. The most significant reason is that many northern indigenous people have concluded land claim agreements with the Government of Canada, and these agreements have created a robust system through which indigenous governments have a meaningful role in processes to review and license proposed resource development projects, have representation on boards, and have a strong voice in the process from the beginning to the end. This is reconciliation in action.

The Mackenzie Valley Resource Management Act is part of the legal framework for resource development in the north. The act authorizes a unique regulatory regime that references a series of comprehensive land claim and self-government agreements with indigenous groups, including the Gwich'in, Sahtu Dene and Tlicho.

The regime features an integrated and coordinated system of boards and ensures indigenous representation. The result is co-management. The Government of Canada, the Government of the Northwest Territories and indigenous governments all participate in reviews of and final decisions about proposed projects.

In recent decades, the north has experienced unprecedented change, and the pace of change continues to accelerate. Territorial governments have acquired new authorities under devolution, for example, and diamond mining has generated billions of dollars in revenues and created thousands of jobs. As well, the impacts of climate change have been greater in the north and have accelerated more quickly there than anywhere else in the world. Given these realities, the regulatory regime governing resource development in the north must evolve to keep pace, and this is the main impetus for Bill C-88.

About eight years ago, the Government of Canada began a process to modernize the regulatory regime at the same time as it moved to devolve greater authorities to the Northwest Territories. In 2014, Canada enacted the Northwest Territories Devolution Act. Along with authorizing devolution, this act also made important changes to the regulatory regime. One of these changes was the amalgamation of four existing boards into a single entity, the Mackenzie Valley Land and Water Board.

Almost immediately, the Tlicho government and Sahtu Secretariat Incorporated launched court actions against Canada. The lawsuits claimed that amalgamation violated land claim agreements. The Supreme Court of the Northwest Territories granted an injunction, which effectively halted amalgamation and prevented the implementation of several elements of the regulatory regime. Bill C-88 proposes to repeal amalgamation, which would resolve the litigation and support Canada's commitment to reconciliation with indigenous peoples.

Bill C-88 would also authorize a series of policy elements that the court injunction also blocked. These elements include development certificates and an enforcement scheme for part 5 of the Mackenzie Valley Resource Management Act. They also include regional studies, extensions of the terms of board members, regulation-making authorities related to consultations, a 10-day pause in the environmental impact assessment process, and a requirement to give proper notice of government inspections of Gwich'in- and Sahtu-owned land.

Together the changes proposed in the legislation now before us would significantly strengthen the regulatory regime in the north. They would ensure that the assessment of environmental impacts would remain paramount in both the review of proposed projects and the monitoring of approved projects. The changes would also ensure that any contravention of a regulation could result in a stiff penalty, such as a large fine, and possibly, incarceration. Bill C-88 would also ensure that indigenous governments would continue to participate meaningfully in reviews of and decisions about development projects in the north.

Another aspect of Bill C-88 aims to further strengthen environmental protection in the Arctic through the Canada Petroleum Resources Act. As my hon. colleagues can appreciate, Canada's Arctic features some of the most fragile ecosystems in the world. Two years ago, the Prime Minister committed to stepping up Canada's efforts to protect Arctic ecosystems. In particular, he called for a ban on any new Arctic offshore resource exploration and extraction. Rather than set a deadline for the moratorium, the Government of Canada committed to reviewing it every five years. The review will focus on an assessment of the latest climate and marine sciences.

Along with imposing a moratorium, the Government of Canada began a series of consultations with territorial and northern indigenous governments and the holders of offshore oil and gas rights in Arctic waters to discuss their interests. A central focus of these consultations was how best to balance environmental and economic concerns and how to protect the offshore environment while pursuing safe, responsible activities that create jobs and economic opportunities in northern indigenous economies. The result of these consultations are the proposed amendments before us in Bill C-88.

First, to complement the moratorium on new licences, the amendments would allow the Government of Canada to ban any oil and gas exploration or development activities under 11 existing exploration and significant discovery licences in the Beaufort Sea.

The amendments would also fix a problem that came to light regarding the plan for a science-based review every five years. Some oil and gas rights in the Arctic offshore will begin to expire before the completion of the next review period. With a ban on activity in the Arctic offshore, these rights suddenly lost all their value. The discussions identified a solution, that being a freeze on the terms of existing rights for the duration of the moratorium. Bill C-88 would authorize this solution.

Canada's regulatory regime is among the best in the world, because it continually seeks to strike an appropriate balance between economic, environmental and social concerns. Key to this ability is the careful and thorough assessment of potential project impacts. An effective regulatory regime makes it possible to foster both economic activity and environmental protection.

The legislation now before us aims to achieve this goal in the north, and I urge my hon. colleagues to endorse Bill C-88 at second reading.