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.

Second Reading

[Shannon Stubbs, Conservative, Lakeland, AB]

Mr. Speaker, we are challenging this piece of legislation because in part 2 it gives unprecedented and unilateral power to the federal cabinet to do exactly the opposite of what the member is talking about, by completely unilaterally blocking and banning economic oil and gas development in these territories.

This is the challenge of the Liberals, who constantly say they believe a bunch of things and are putting forward this suite of policies and different legislation. They are probably well intentioned, but the outcome, consequences and the way it actually works defeat the very objectives they said they stood for in the first place.

That is the same with Bill C-88. Members cannot really, in good conscience, stand up here and pretend that this legislation gives further authority to indigenous communities in the north and to territorial leaders, while right in the legislation is an unprecedented granting of power to the federal cabinet to make unilateral decisions that will destroy economic development in those regions.

[Robert Sopuck, Conservative, Dauphin—Swan River—Neepawa, MB]

Mr. Speaker, I will give the House a bit of personal history.

Back when I was a young biologist, I spent time in the Mackenzie Valley doing some of the initial environmental impact assessment work. I stayed in the community of Norman Wells, which has been producing oil since the Second World War with zero environmental impact. I also lived in the community of Fort Simpson for a while, so for a southerner, I know the area somewhat, and I can guarantee that any project proposed there is done under the most strict environmental standards. In fact, the standards that were in place back in 1973 were world-class even then.

I would like to quote a couple of newspaper articles for the House.

On June 5, 2018, the Edmonton Journal writes, “Investor flight from energy sector is a national embarrassment”.

The CEO of the Royal Bank of Canada said, “Our competitiveness is challenged. Our capacity to grow and advance the economy is stalling.”

The C.D. Howe Institute writes, “C.D. Howe blames Canada’s sclerotic regulatory regime for the killed and stalled projects and the flight of investment capital.”

Can my friend and colleague comment on the downward spiral of the Canadian economy as a result of the sclerotic regulatory regime that the government has implemented?

[Shannon Stubbs, Conservative, Lakeland, AB]

Mr. Speaker, my colleague is exactly right. The devastating losses of energy projects and energy jobs are a direct consequence of the Liberals' policy and their legislative agenda. The only oil and gas industries in the entire world that are not thriving are Canada's and Venezuela's. The risk is that Canada is being left behind in its potential as a leading global energy producer and exporter, which harms all Canadians and all indigenous communities.

The reality is that the amount of investment that has been lost in Canada's energy sector under these Liberals is more than at any other time in more than seven decades. It is not a matter of external factors; it is a direct consequence of their decisions.

Further to my colleague's experienced, direct and informed comments on Canada's track record, it is not just Conservatives saying it. It has actually been benchmarked in exhaustive and comprehensive comparisons of Canada to the other top 10 major oil and gas-producing countries in the world in 2012 and 2014. The conclusions were that on every single measure—including expertise, independence, consultation, evidence, science-based decision-making and the incorporation of traditional knowledge—Canada's track record and role are second to none among every other major producer on the planet. Canada can do better and strives to always do better, but Canada is already a world leader on exactly all those points my colleague mentioned.

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

Mr. Speaker, the member, like many members on her side of the House today, speaks about the energy sector as though energy can only be the kind that is derived from fossil fuels. When they talk about loss in energy sector jobs, they are actually not being entire truthful, because the green energy sector, which is also an energy producer, is up 37% over the last five years. There are now more people employed in Canada in the green energy sector than in the oil sands. As a matter of fact, 23,700 people work in the green energy sector, whereas 23,340 work in the oil sands. In Alberta specifically, the number of people employed in the green energy sector is doubling every year.

Can the member comment on the fact that the rhetoric we continually hear from the other side of the House when we talk about the energy sector seems to be focusing only on oil-producing energy sectors?

[Shannon Stubbs, Conservative, Lakeland, AB]

Mr. Speaker, first of all, just to be clear, in case the Liberals do not know, the energy sector is the number one private sector investor in the Canadian economy. It is Canada's biggest export. He is quoting oil sands jobs, but that is not the totality of the energy sector; in fact, the total job numbers are close to a million.

The Liberals are doing everything they can to vaporize those jobs and businesses. There are probably more than 200,000 job losses under their government alone, but contractors and self-employers cannot be included in the statistics.

However, the fact is this. Of private sector investors in alternative and renewable energy technologies, the number one investor right now and for decades, aside from the public sector or public utilities, has been oil sands and pipeline companies. They are major multi-energy integrated companies. They are the innovators and companies that will lead the long-term transition and technological development to alternative and renewable energies in the future.

That is why it makes no sense for the Liberals to keep going down their path of stepping on the throats of oil sands and conventional oil developers and destroying the oil and gas sector. Those are the private sector risk-takers and inventors that can also achieve their long-term transition goals.

What very much worries me every time these Liberals stand up and say something like that is that they seem to have no clue about how the energy sector actually works or where this technology and innovation comes from.

[Charlie Angus, NDP, Timmins—James Bay, ON]

Mr. Speaker, I represent a very large mining region, where we are seeing a number of new mining operations coming on stream. What has become really clear for the success of mining in the north are the indigenous agreements, which are very much tied to an environmental plan. People are being employed and there is new investment, but the other element is that companies are trying to deal with the need for a green footprint. For example, Borden mine has gone 100% green. It is getting rid of diesel underground and going electric. It is much safer for the workers and it actually lowers costs.

I would ask my hon. colleague about the importance of making sure that natural resource projects are tied to an environmental plan and to making sure we are getting the maximum benefit from the resources by limiting greenhouse gas. It is innovative and creates a better profit for companies and communities in the long term.

[Shannon Stubbs, Conservative, Lakeland, AB]

Mr. Speaker, all Canadians want Canada to maintain the highest standards of environmental responsibility, protection, operations and performance. Indeed, I agree with my colleague that it is wonderful to see the countless examples in the mining sector of companies taking measures that make economic sense to them, as they have been doing for decades.

The mining sector is really a leader and role model in terms of engaging and employing indigenous people, as well as in working with indigenous communities and people as owners and partners in responsible resource development. Just as in the energy sector, where a single oil sands company happens to be the largest private employer of indigenous people, the mining sector is the largest employer as a whole. In the same way, oil and gas companies in Canada are world leaders in innovation and technology in protecting the environment, including the major investments in clean technology by a consortium of oil sands companies over the last several decades.

[Nick Whalen, Liberal, St. John's East, NL]

Mr. Speaker, I am pleased to rise today on the traditional territory of the Algonquin people in support of a bill that proposes to strike a more appropriate balance between environmental protection, social responsibility and economic development in Canada's north. As my hon. colleagues recognize, Canada is blessed with an abundance of natural resources, and throughout Canada's history these resources have been a cornerstone of the economy.

While the national economy grows ever more diverse thanks to the rise of other sectors, resource development remains crucial to our national prosperity. Resource development projects create jobs and export sales and stimulate technological innovation. Tempering these benefits, however, are the environmental and social impacts of resource extraction and development. These include pollution, destruction of ecosystems and changes in the fabric of communities and traditional indigenous ways.

Throughout much of our nation's history, while we relied on resource development for prosperity and growth, we often failed to appreciate and take into account its long-term environmental and social consequences. To strike a better balance between economic and environmental concerns, Canada has developed a unique regulatory regime that governs resource development projects in the north, a regime that is co-managed with indigenous partners.

The regime requires that proposed projects undergo stringent reviews of anticipated impacts. This regulatory regime helps to ensure that resource projects maximize potential economic benefits and minimize potential environmental impacts. In this way, the regime restores public confidence and creates certainty and predictability, which are so important in industry, and it sets the foundation for a sustainable and long-term natural resource industry in the north.

I am going to take the opportunity now to advise that I will be splitting my time with the parliamentary secretary, the member for Acadie—Bathurst.

To maintain an appropriate balance between these concerns, the regulatory regime evolves continually as Canada evolves and as our understanding of the environment and of resource development deepens. In the north in particular, the settlement of modern land claims has enabled the creation of unique systems of governance in co-operation with our indigenous partners.

Through the amendments proposed in Bill C-88, our government has established a clear path forward in managing land, water and natural resources in the Mackenzie Valley, one that respects indigenous inhabitants and is fair and equitable to industry. These amendments strengthen trust and provide certainty, and they provide an effective approach to natural resource co-management. They also support a modern regulatory regime that is stable, predictable, coordinated and balanced.

Bill C-88 responds to the concerns raised by indigenous governments and organizations in the Mackenzie Valley about the provisions of the 2014 Northwest Territories Devolution Act. That act devolved the administration and control of public lands and waters to the Government of the Northwest Territories and also made other amendments to the Mackenzie Valley Resources Management Act.

Those 2014 amendments to the Mackenzie Valley Resources Management Act included provisions to amalgamate the regional land and water boards in the Mackenzie Valley into a single board. While the government of the day argued that an amalgamated board structure would provide clarity and certainty to the regulatory regime in the Mackenzie Valley, the opposite occurred.

Instead of bringing certainty, the proposed amalgamated boards led to court challenges by indigenous organizations. Indigenous groups argued that their authorities in land and water management, guaranteed by their land claims and self-government agreements, were not being respected, and that their land and water boards could not be unilaterally abolished by the federal government.

A court injunction in February of 2015 halted the provisions of section 253(2) of the Northwest Territories Devolution Act, the section that included restructuring of the land and water boards. The injunction also affected important policy measures that are central to the regulatory regime, such as the use of development certificates and their enforcement scheme and inspection notice requirements on Gwich'in and Sahtu lands.

So much for bringing certainty to the regulatory regime. Stakeholders agree that the 2014 legislation has done the opposite; it creates a climate of uncertainty and discourages the responsible development of the Mackenzie Valley's natural resources.

The Government of Canada is committed to exploring ways to fix the restructuring provisions, resolve the legal proceedings and renew the government's relationship with indigenous peoples in the Northwest Territories.

Bill C-88 is the product of productive discussions with indigenous governments and organizations, the Government of the Northwest Territories, resource co-management boards, industry and other stakeholders. Input received has been carefully considered and helped shape the bill.

If passed, Bill C-88 will undo the controversial land restructuring provisions and reintroduce important regulatory improvement provisions from the Northwest Territories Devolution Act that did not come into force due to the court injunctions. Bill C-88 provides certainty to proponents, and it supports a modern-day regime that balances environmental, social and economic well-being.

My understanding is that the Government of the Northwest Territories supports the amendments proposed in Bill C-88, contrary to what the opposition has said. Indigenous governments and organizations in the Northwest Territories also want these amendments. The mining industry that conducts its business in the territory is not opposed to the board restructuring amendments, and supports anything that provides greater clarity and certainty in the regulatory process and gets us through these injunctions.

Companies with commercial interests in the north also understand the importance of protecting the unique arctic environment, while pursuing safe, responsible development, which creates jobs and economic growth right in the northern communities from whence the resources come.

Bill C-88 proposes to improve the regulatory regime in the north through a series of amendments informed by several important developments. These include the court challenges I mentioned earlier, as well as the accelerated impacts of climate change in the Arctic and the Government of Canada's commitment to foster reconciliation between indigenous peoples and the Crown.

The amendments proposed in Bill C-88 would increase predictability, consistency and timeliness of regulatory reviews in the north, while strengthening environmental protections. Northerners deserve a fully functional, modernized regulatory regime that meets their particular needs, the kind of regime that promotes growth and prosperity while at the same time safeguards the fragile northern ecosystem, the kind of regime that strikes the appropriate balance between economic and environmental concerns.

Bill C-88 would provide the clarity and certainty that the regulatory process needs in order to encourage industry investment in resource development in the Mackenzie River valley. I call upon all members of the House to support Bill C-88, which will enable us to balance the development of untapped economic potential in the north with strong partnerships and sound environmental stewardship.

One of the main issues that has arisen in my conversations with oil and gas companies around uncertainty, and I know the opposition shadow minister raised this point, actually relates to the uncertainty that arises out of the courts. The biggest fear of companies that have proposed to invest billions of dollars in resource development and extraction is that the courts will impose some type of an injunction late into their process, creating a great amount of uncertainty as to whether or not their capital can be effectively deployed. This is exactly what happened with TMX. It is exactly what happened with the previous 2014 legislation that this bill hopes to amend. It is the greatest source of risk that our government is trying to fend off.

Although some members of the House suggest that these injunctions occurred on our watch and, therefore, must be our fault, the exact opposite is the case. The injunction arose in the cases that I just mentioned from decisions that were made by the previous government and its failure to properly consult, to take indigenous concerns into account, to abide by our constitutional commitments and to abide by the duty to accommodate.

This is what so much of our focus has been on for the last four years, to get our environmental regulatory regime back in line with our constitutional and economic commitments, to help make sure indigenous communities thrive. In this particular instance, we have the right balance and we know we do because the groups that have brought forward the injunction are in favour of the changes.

[Robert Sopuck, Conservative, Dauphin—Swan River—Neepawa, MB]

Mr. Speaker, I listened with great interest to my colleague's speech. I was shocked at the very beginning of his speech when he implied that sound environmental technology is just a recent thing. As someone who has been in the business since 1973, and part of the Mackenzie valley pipeline assessment, I can tell him that we have had 40 years of continuous environmental improvement.

I want to talk about what is happening to the Canadian economy because of what the Liberal government is doing. Interestingly, in March of this year, the United States economy added 196,000 jobs, while in the same month, employment in Canada fell by 7,200. Back in the day, the Canadian and American economies were in lockstep. If the U.S. grew 200,000 jobs, we would grow 20,000. Now our economies are starting to diverge, strictly because of the regulatory regime that the Liberal government has put in place.

C.D. Howe reports that during this time investment in the Canadian oil and gas sector fell from $125 billion in 2014, under the watch of the great former prime minister Stephen Harper, to $75 billion in 2018. This was during a period when global investments in oil and gas have increased, especially in the U.S., which had a 50% rise in oil and gas sector investment in 2017.

How can the member defend this shabby record?

[Nick Whalen, Liberal, St. John's East, NL]

Mr. Speaker, as the member knows, the regulatory regime that we are living under is the regulatory regime that the Conservatives put in place. The legislation that we are trying to get through the House today, as well as Bill C-69, which is before the Senate, is our attempt to fix the regulatory system. If the member's complaint is that our regulatory system does not work, then he only has his own party to blame.

Having said that, we do not pick one month and base the entire job-number argument on it. Since we have been elected, there have been 900,000 new jobs and 825,000 people lifted out of poverty. We are looking forward to getting a number of environmental assessment processes through what we consider to be the failed 2012 process but it is the process we have, with full indigenous consultation where indigenous peoples have been funded for their participation. We are so excited that the Newfoundland offshore will have an opportunity, hopefully, to avail itself of that this summer.

Of course, we look forward to a final decision on an improved process for the NEB, which, again, if it had been done right the first time, we would have had four years of pipeline to our coast to B.C. However, we did not because of the previous government's ineptitude.

[Marjolaine Boutin-Sweet, NDP, Hochelaga, QC]

Mr. Speaker, I am so pleased to see that Bill C-88 is revisiting the principle of self-determination of indigenous peoples. However, the concept of self-determination of indigenous peoples applies to many other areas, including housing, for example.

The minister responsible for housing put forward a housing strategy over a year ago, but we still do not have a targeted housing strategy for indigenous people. I would argue that self-determination should form the foundation of that strategy.

I would like to know whether my colleague would commit to putting some pressure on his colleague, the minister responsible for housing, first, to bring forward a targeted housing strategy for indigenous people, and second, to ensure that strategy is squarely based on self-determination.

[Nick Whalen, Liberal, St. John's East, NL]

Mr. Speaker, if I understood correctly, the question relates to our efforts with respect to housing for indigenous peoples.

My neighbour, the Minister of Indigenous Services, is handling the housing situation in indigenous communities. While the strategy may not have been presented by a member from Quebec, it is coming from the Minister of Indigenous Services. Budget 2019 includes a many new investments in that regard.

We are not going to simply enforce our own view of what a housing strategy for indigenous people will look like. Our indigenous services minister will work with indigenous people to make sure that the money in budget 2019 for indigenous housing is deployed in a way that helps them, as I am sure the member will appreciate and respect.

[The Deputy Speaker, Conservative, Bruce Stanton]

Before we go on, I would like to thank the hon. member for St. John's East for mentioning that he will be sharing his time.

There have been more than five hours of debate since the debate began. Accordingly, all speeches from this point on will be limited to 10 minutes, and questions and comments will be limited to five minutes.

Resuming debate. The hon. Parliamentary Secretary to the Minister of National Defence.

[Serge Cormier, Liberal, Parliamentary Secretary to the Minister of National Defence]

Mr. Speaker, I am pleased to rise today in support of Bill C-88.

The Government of Canada, our government, is taking a new approach. We are currently conducting extensive consultations with indigenous governments and organizations as well as other key stakeholders on issues that will affect them. By working directly with indigenous governments and stakeholders on developing this bill, we can respond to concerns that are raised and ensure that the rights of indigenous peoples are respected. This process has helped create a law that will benefit all Canadians.

Bill C-88 amends the Mackenzie Valley Resource Management Act in direct response to comments from key stakeholders, as well as concerns expressed to the Government of Canada by indigenous groups affected by the previous piece of legislation.

Our indigenous partners have made their views quite clear. The Tlicho government and the Sahtu Secretariat Incorporated applied to the courts in 2014 and 2015 respectively for protection of their rights in accordance with their individual land claim and self-government agreements. The bill we are debating today corrects those problems and responds directly to the concerns expressed by indigenous governments and organizations.

As part of the ongoing reconciliation process, the Minister of Crown-Indigenous Relations asked departmental officials to initiate an ongoing dialogue with indigenous organizations and governments in the Northwest Territories to address their concerns.

On September 23, 2016, the minister sent letters to indigenous groups and stakeholders launching consultations on the draft bill to amend the Mackenzie Valley Resource Management Act in order to address these issues.

Bill C-88 is the result of consultations with indigenous organizations and governments in the Mackenzie Valley, transboundary indigenous organizations and governments, resource co-management boards, and oil and gas industry organizations.

In addition to indigenous organizations and governments, Canada consulted the Government of the Northwest Territories. Our government also consulted members of the mining and gas and oil industries, including the NWT & Nunavut Chamber of Mines, the Mining Association of Canada, the Prospectors and Developers Association of Canada and the Canadian Association of Petroleum Producers. The text of the bill was communicated to these groups to get their feedback, and several meetings were held to respond to their concerns.

Ongoing consultations over the long term with key stakeholders have provided Canada with invaluable insight into the practical nature of the bill before us today. The comments from our partners provided unique perspectives and useful guidance which, in the end, led to the drafting of this bill.

Canada recognizes that the previous legislation was drafted without enough consultation. This is why the government of Canada ensured that the voices of indigenous groups, the government of the Northwest Territories and industry representatives were heard at every stage of the process.

Bringing together stakeholders is the key to developing effective policies and practices. Our government is holding extensive consultations in order to create processes that satisfy the needs of all parties. That ensures that the final product serves everyone in a positive manner and gets rid of any possible uncertainty regarding natural resources.

In March 2018, the Minister of Crown-Indigenous Relations met with industry groups to better understand their opinion on developing and co-managing resources in the north. Industry plays a major role in creating a stronger and better relationship with governments and indigenous organizations when it comes to protecting, managing and developing Canada's natural resources. In order to truly make progress on the path to reconciliation with indigenous peoples, industry must be taken into consideration as a key strategic partner alongside all levels of governments.

Consultation and engagement with stakeholders on Bill C-88 began in February 2017. A draft bill was distributed to participants for an eight-week review, during which two meetings were held in Yellowknife. At these meetings, departmental representatives from the former department of Indigenous and Northern Affairs Canada explained the content of the proposal and the accommodation measures in response to the participants' comments.

Throughout the consultation process, changes to the draft bill were clearly communicated to give stakeholders the opportunity to express their opinion.

By engaging stakeholders, we were able to address all concerns as they were raised. With our innovative approach to drafting this bill, we are improving how our government makes decisions, gathers information, and engages with different stakeholders. Today's bill reflects that process.

If passed, the proposed amendments would contribute to the efficient, predictable and coherent management and use of land, water and natural resources in the Mackenzie Valley. By charting a clearer course for governments and organizations with respect to natural resource management, industry will no longer have to contend with potential uncertainty that hinders its ability to invest in northern Canada.

This legislation will enhance economic opportunities and growth while protecting the environment for future generations. It addresses concerns expressed by indigenous organizations and governments and is consistent with constitutionally protected land claim and self-government agreements. It recognizes the importance of indigenous peoples' active participation in the co-management of natural resources and protects their right to oversee the future of their lands.

The environment, the economy and reconciliation go hand in hand. We need to create a more effective system for everyone, and that is exactly what Bill C-88 accomplishes. I invite my hon. colleagues to support it.

We will achieve reconciliation with indigenous peoples. We will work closely with indigenous peoples and all other stakeholders, whether from industry or other levels of government. It is a priority for our government, always has been, and we will stay the course and continue our work.

[Karine Trudel, NDP, Jonquière, QC]

Mr. Speaker, it is good that the Liberals have taken this step to repair some of the harm the Harper government inflicted on indigenous peoples. Of course, there is still a lot of work to be done on this file, especially when it comes to housing, infrastructure, drinking water, wastewater, education and the implementation of political rights.

Can my colleague tell us why the bill makes no mention of the United Nations Declaration on the Rights of Indigenous Peoples?