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.

Mackenzie Valley Resource Management Act

[The Speaker, Liberal, Geoff Regan]

The hon. member for Sherwood Park—Fort Saskatchewan has seven minutes remaining in his speech.

[Garnett Genuis, Conservative, Sherwood Park—Fort Saskatchewan, AB]

Mr. Speaker, it is a pleasure for me to continue a discussion I began before question period about the government's approach to the energy sector. It is a pleasure for me to participate in the debate, but it is no particular pleasure to review the great damage the government is doing to our energy sector. This bill is one of a number of bills which contain provisions that really weaken the situation for those who consider getting involved in resource development, whether it is as a worker, an employee, an investor or one of the many who benefit from spinoff jobs and opportunities associated with the development of our energy sector.

I would observe that part 2, for example, of this legislation would amend the Canada Petroleum Resources Act. In effect, it would allow the Governor in Council, in other words, the government, to issue orders prohibiting oil and gas activities, freezing the terms of existing licences and preventing them from expiring during a moratorium. This would essentially empower the government to take extreme steps whenever it wants to, whenever it deems it in its evaluation of the way things should go, to put an abrupt stop to natural resource development. Conservatives see this as part of a larger pattern.

Bill C-69, the government's “no more pipelines” bill, piles on all sorts of conditions and challenges that are clearly designed to achieve the result of not allowing pipelines to proceed in the future. There is Bill C-48 that would create a tanker exclusion zone, which is designed to say that we can never export Canada's energy resources from the northern coast of British Columbia. It is so interesting to observe government members talking out of both sides of their mouths when it comes to oil and gas development, especially some of my Liberal colleagues from Alberta. They talk about feeling the pain and they talk about supporting pipelines on occasion, but then we look at their legislative and voting record.

There have been multiple opposition day motions which call for the recognition of particular pipelines as being in the national interest. There has been legislation from the government, such as this bill today and others I have mentioned, that are designed to create a very difficult environment for any natural resource project to proceed. The Liberals put forward these bills that make it more and more difficult for investment projects to succeed and at the same time they vote against opposition day motions and proposals which recognize that these projects are indeed in the national interest. In terms of the Liberals' record, in terms of their votes and their actions, we see a real, practical, concrete, tangible opposition to the success of the energy sector, an energy sector which is not just for one region or one part of the country but is one which benefits the whole country.

I am a member of Parliament from Alberta and represent a resource rich area of the country. Many people in my constituency are part of the energy sector and are frustrated with the approach of the government. I would like to speak briefly about another region of the country, the north of Canada.

I had the pleasure of joining the foreign affairs committee recently on a trip to the territories. It was interesting to talk to people about the decision of the Prime Minister, while overseas, to unilaterally declare a moratorium on offshore development in a way that flew in the face of what many people in the north were hoping for in terms of opportunities that could come to them through new investment, new jobs and new development in Canada's north, development that would really open up opportunity and ensure greater access to services for people in the north.

A real opportunity did exist and yet the Prime Minister, while overseas and without consultation, did exactly the sort of thing that is envisioned in this legislation. He made a declaration that prohibits activity in the area of oil and gas development.

When we look at the proposed legislation, the government would be taking for itself more tools to be able to step forward at any point to say that it did not a want a project to proceed or did not want to allow development, even if there was an expectation, even if there was planning by indigenous leaders and by municipal, provincial and territorial leaders, or if there were investments made and workers making their plans to seek those opportunities. All of a sudden, the Prime Minister could put a stop to it.

So much is said by the government about consultation with indigenous people and how it is such a critical relationship for any government. However, while talking that talk, government members do not seem to recognize at all that many indigenous people in Canada want to see the development of our energy resources. They want to have the opportunities that flow from these developments. However, their voices are totally ignored if they are on the side of the discussion that is seeking more development, more opportunity, more employment and more of the kind of development that would allow them to significantly prosper and benefit from the wealth that would come into their communities as a result of oil and gas and other natural resources.

To put it as clearly and directly as possible, when it comes to our natural resource sectors, the government has an anti-development agenda. It is not an anti-development agenda it is perhaps willing to openly acknowledge or recognize. It covers it up in various ways, including by pumping billions of taxpayers' dollars into a pipeline it still has no plan to see move forward. However, in the concrete legislative initiatives it is putting forward, we see what its agenda is, and we see it walked out in practice.

A couple of years before the last election, the current Minister of Democratic Institutions put out a tweet talking about landlocking the “tar sands”. Now we do not hear that kind of language from the front bench. The Liberals try to modulate their tone, because they know that most Canadians do not want their anti-development agenda.

If we look at the history of the people involved in the government, if we look at the statements they have made in the past, if we look at the past statements and involvement of senior staff in the Prime Minister's Office, and as I mentioned, the comments from the Minister of Democratic Institutions, I think we can see what we are observing in the concrete detail of legislation that has come forward, which is, yes, the anti-development agenda of the government. It is disappointing. It is hurting jobs and opportunities in my province and across the country. We need Canadians to wake up to this, respond and stop legislative measures like this.

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

Madam Speaker, we have had a couple of members from the Conservative Party stand in their places and give what I would argue is false information. Of course, they are trying to convince Canadians that this is a government that could do better on certain fronts. There is always room for improvement, but let there be no doubt, and I say this to my Conservative friends who have raised this today, that this government has done more to ensure that Canada's commodities, particularly oil, have an opportunity to go beyond exporting straight from the Alberta border to the United States of America.

I would remind my friend across the way that 99% of our oil, for example, went to the United States when Harper first became the prime minister, and 10 years later, that 99% was still there. This Liberal government has been successful in being able to ensure that we will expand that into the future.

[Garnett Genuis, Conservative, Sherwood Park—Fort Saskatchewan, AB]

Madam Speaker, that is the most ridiculous thing I have ever heard in this House, that somehow the government is trying to move forward to export our oil. That member and his party proposed and voted in favour of Bill C-48, which would explicitly not allow the export of Canada's energy resources through northern British Columbia. If the Liberals wanted to help get our oil to other markets, the least they could have done was not pass a law that was explicitly designed to make it impossible to get our oil to other markets.

It is very simple. The previous Conservative government was working hard facilitating moving forward the northern gateway project, which would have opened all kinds of new markets and opportunities for those resources. If the member wants to see results in this area, I would tell him to repeal Bill C-48 and stop Bill C-69 as well. However, in particular, when it comes to pipelines and export, it is Bill C-48.

Let us move forward with projects that began under the previous government that would have gotten us to the results the member claims to want but very clearly does not want, from the substance of what he is voting on and saying in the House.

[Pierre-Luc Dusseault, NDP, Sherbrooke, QC]

Madam Speaker, today, it is very clear that the Conservative members still do not think that natural resource projects are being carried out fast enough.

They want all companies to have the power to move projects forward at all costs, regardless of the views of the communities affected by these projects. Today, we are hearing the same thing about matters relating to northern Canada.

I would like to ask my colleague what the Conservatives' real position is on the energy east project, which is still under review. The Conservatives still think it is a viable project that could rise from the ashes.

Is my colleague claiming that this project has the necessary community support to go forward if the Conservatives were to put it back on the table?

[Garnett Genuis, Conservative, Sherwood Park—Fort Saskatchewan, AB]

Madam Speaker, with all due respect to my friend, I think he badly mischaracterizes our position. Our position is that consultation with communities is important. That consultation should focus on those who are actually affected, not create a forum for activists who have no expertise and no connection to the community to drag on the process indefinitely.

We believe that those consultations should be focused, should engage the affected communities and should engage the knowledge of experts. They should be designed to allow a predictable process whereby companies are able to hear a result and are able to make proposals with a predictable understanding of where things are going. Hopefully, projects will be able to succeed under that framework in cases where the necessary work is done.

The member talks about the need to engage with communities where people may be opposed to these projects. Of course, the same goes the other way. Communities that are supportive of these projects do not want projects unilaterally shut down without consultation.

Our party would welcome the proposal of a pipeline project that would allow all of Canada to benefit as a market, where resources from Alberta could go to eastern Canada instead of eastern Canada being dependent on resources from Saudi Arabia.

I would hope that member, whose party has been quite rightly vocal about human rights issues in Saudi Arabia, would understand the connection between buying Saudi oil and the opportunities that would come as an alternative from having eastern Canada benefit from Canadian natural resources.

[Jim Eglinski, Conservative, Yellowhead, AB]

Madam Speaker, here we are again with another anti-energy policy from the current Liberal government that is driving energy investment out of Canada, costing Canadian workers their jobs and significantly increasing poverty in certain regions, especially in the north.

I am speaking to Bill C-88, because I am concerned that the changes it would make would politicize oil and gas extraction by expanding the powers of this Liberal government to block economic development. It would take local control and environmental stewardship away from the aboriginal people of the region and would inhibit local, territorial governments from doing what is best for the people of the area. I am speaking of the Mackenzie Delta.

I see that my friend across the way is smiling, because he is very proud of the region he has grown up in.

Bill C-88 is not just another Liberal anti-energy bill, like Bill C-48, Bill C-69 and Bill C-86. These bills could block all future pipelines, giving the government the authority to unilaterally shut down natural resource development. It is now systematically going after the Northwest Territories, as it has done with our western provinces.

Only a few people get to visit the Mackenzie Delta or travel the pristine waters of the Mackenzie River. Those who do find it breathtaking, due to its vast biological and ecological formations.

When Sir Alexander Mackenzie travelled the Mackenzie River in 1789, he was astonished by its sparse population and the pristine beauty of the region. As members may know, the river was named after him. That is for a few of my Liberal colleagues across the way, except for the member for the Northwest Territories.

I count myself fortunate, no, I should say I count myself blessed and lucky, to have been able to travel from the start of the Peace and Athabasca rivers, which are the headwaters of the Mackenzie River, and I have followed it as it flows, leading to the Beaufort Sea in the north. This pristine area, rich in ecological wealth, covers an area of just under two million square kilometres, and its drainage basin encompasses one-fifth of Canada. This is the second-largest river in North America, next to the Mississippi River.

Oil and gas have been part of this region since 1921. There are also mines of uranium, gold, diamond, lead and zinc in the area. During World War II, a pipeline was built from Norman Wells to Whitehorse, in Yukon. It carried crucial petroleum products needed during World War II and helped Canada and the United States build the Alaska Highway, which significantly helped Canada during the war. It is called the Canol Pipeline, and it still exists today.

At a very young age, I personally met and was inspired by one of Canada's great leaders. That was Mr. John Diefenbaker, whose statue sits at the rear of this building. He was a leader of great wisdom and vision who led our country to where it is today. I remember he once said, “I see a new Canada—a Canada of the North.” This is what he thought of and envisioned. He spoke of giving the people of northern Canada the right to develop their resources, protect their environment and maintain and develop strong economies in the region. Diefenbaker saw the need for the people of the north to do this, not the Government of Canada.

One of Canada's leading novelists of the same era, Hugh MacLennan, a Liberal visionary, noted at the time that by 2061, the Mackenzie Delta would have three million people living along the banks and shores of the river and that people's pockets would be full of money from the wealth of the region. He said there would be at least two universities built in the Mackenzie Delta area.

That Liberal's prediction was wrong, and the actions of my Liberal friends across the way from me are also wrong.

There are roughly 10,000 people living along the Mackenzie River Delta, in places like Wrigley, Tulita, Norman Wells, Fort Good Hope, Fort McPherson, Inuvik, Aklavik and Tuktoyaktuk. I have been to those communities and I know the people.

There are 68 aboriginal groups that also live in this region. I have had the pleasure and honour of gathering and socializing with them to discuss their issues. We used to gather at the Petitot River. I have been there a number of times. To me, they are the real stewards of the land, not organizations like CPAWS, the David Suzuki Foundation or others that have the ear of the environment minister. The aboriginal groups are the real Canadian environmentalists and the real stewards of the land.

Recently, Merven Gruben, the mayor of Tuktoyaktuk, testified at the committee on indigenous and northern affairs. He said that the Liberal government should be helping northern communities. Instead, it shut down the offshore gasification and put a moratorium right across the whole Arctic without even consulting communities. He also said that people in his town like to work for a living and are not used to getting social assistance. Now, all they are getting are the few tourists coming up the new highway. That makes for small change compared to when they worked in the oil and gas sector.

They are the people of the Mackenzie River Delta. Our Conservative government gave them the power to manage their resources in a true, healthy and respectful manner that only the people of the region can do. This was done through Bill C-15, which created the Northwest Territories Devolution Act of 2014.

Our former Conservative government viewed the north as a key driver of economic activity for decades to come, but this Liberal government is arbitrarily creating huge swaths of protected land with little or no consultation with aboriginal communities, while other Arctic nations are exploring possibilities within their respective areas.

Bill C-88 reveals a full rejection of calls from elected territorial leaders for the increased control of their natural resources. It consists of two parts. Part A would amend the Mackenzie Valley Resource Management Act of 1998. Part B would amend the Canada Petroleum Resources Act to allow the Governor in Council to issue orders. That scares me.

What about the provisions that were introduced by the former Conservative government within Bill C-15's Northwest Territories Devolution Act? Bill C-88 would reverse these changes, even though Liberal MPs voted in favour of Bill C-15 when it was debated in Parliament, including the Prime Minister.

Now the Liberals want to reverse the former government's proposal to consolidate the four land and water boards in the Mackenzie Valley into one. I believe this is so that they can take control. The creation of a single board was a key recommendation that would address “complexity and capacity issues by making more efficient use of expenditures and administrative resources” and would allow for administrative practices to be “understandable and consistent”. When Bill C-15 was debated in the House of Commons in 2013 and 2014, the restructured board was included in the final version of the modern land claim agreements.

The Liberals would further politicize the regulatory and environmental processes for resource extraction in Canada's north by giving cabinet sweeping powers to stop projects on the basis of “national interest”. This reveals a rejection of calls from northerners for increased control of their national resources.

The Liberal government should leave the people of northern Canada with their resources and let them be their own environmentalists and stewards of the land. They know it the best.

[Michael McLeod, Liberal, Northwest Territories, NT]

Madam Speaker, I appreciate the last part of the member's comments where he said we should let northerners decide about the north. I think that is certainly in order. I think that is what he should do also. He should support this bill and let the will of northerners decide.

People of the north want to see changes to the Mackenzie Valley Resource Management Act and see scientific review. I have had an opportunity to speak to the member many times over the last while and I think we share a lot of goals and aspirations. However, there is a difference between how the Conservatives see the north and the Liberals see the north. The Liberals see the north as a treasure. I think the Conservatives see the north as a treasure chest and want to remove any impediments that get in the way.

I would ask the member why would he not support this bill in that light.

[Jim Eglinski, Conservative, Yellowhead, AB]

Madam Speaker, the hon. member and I have had many discussions. I do not think we are too far off on our feelings of the north. I have a fondness for the people of the north and I do not believe that we should be plundering any part of northern Canada for its wealth. It should be left to the people of the north to look after themselves and be the stewards of the land

I object to this bill because its overtones are so similar to Bill C-48, Bill C-86 and others. As well, it takes the control away from the people. That is where my concerns come in. It takes the control away from the people and local government officials like the hon. member's brother who is a very well-known and respected person in the Northwest Territories. I feel they are a bit concerned about this bill, as I am.

[Pierre-Luc Dusseault, NDP, Sherbrooke, QC]

Madam Speaker, I would like to respond to a comment my colleague made. At the beginning of his speech, he said—and I imagine he speaks on his party's behalf—that he did not want to politicize the debate on the transport, or even the export in some cases, of natural resources. However, that is exactly what he is doing with a number of files. For example, when it comes to pipelines, he is politicizing the debate on the transport of natural resources.

Why is he asking the House to stop politicizing these debates when that is exactly what the Conservative Party is doing at every opportunity?

[Jim Eglinski, Conservative, Yellowhead, AB]

Madam Speaker, I believe the hon. member is on a different page from me.

When I talked about politicizing, it was with reference to what the government is doing by changing the regulations to make it more advantageous for the federal government to have the final say over the people of the land, who should have the final say. The government of the land, the provinces, should have the final say and the people of the provinces should have a stronger say than the federal government.

That is what I am referring to when I talk about politicizing.

[Gérard Deltell, Conservative, Louis-Saint-Laurent, QC]

Madam Speaker, I want to pay my respects to the people of Alberta who have suffered so much from the oil crisis, especially the hard-working people who work hard for their families. Those people have been insulted by the Prime Minister himself last weekend.

I want to hear from the member about this. What does he think about the comments made by the Prime Minister about the hard-working Canadians in the oil sector?

[Jim Eglinski, Conservative, Yellowhead, AB]

Madam Speaker, workers in Alberta are frustrated. The government is totally ignoring what is happening in Alberta. Hundreds of thousands of jobs have been lost over the last few years.

However, it is not only Albertans. We are upset because many of those people who were working in Alberta were from Quebec, Ontario, Nova Scotia or Newfoundland, people who have lost their jobs and have had to go back to their provinces, maybe where the economy was not doing as well.

We are upset because we have a government that is not listening to the members of Parliament from Alberta or the Premier of Alberta who was here last Wednesday. The government is not listening to the people and trying to help our province get through this situation, so that all Canadians across this country, from coast to coast to coast, which includes the north, benefit.

[Greg Fergus, Liberal, Hull—Aylmer, QC]

Madam Speaker, thank you for giving me the opportunity to express my support for Bill C-88 and explain why I approved it at second reading stage. Before I go on, I want to tell you that I will be sharing my time with the hon. member for St. Catharines.

I would like to use my time to draw the attention of my hon. colleagues to the authorization of regional studies. Although this may be a lesser-known aspect of Bill C-88, regional studies should have a significant and positive impact on the review process at the core of the regulatory regime governing resource development in Canada's north.

The proposed changes in the bill before us would allow the Minister of Intergovernmental and Northern Affairs and Internal Trade to establish committees to conduct regional studies. These studies could take very diverse forms. They could, for example, be as narrow as a documentary analysis or as broad as in-depth research to create databases on a body of water or a land mass. The relevant text of the proposed bill is purposely broad in order to allow for a variety of scopes and activities.

One of the reasons why the bill uses non-specific language is that science and scientific knowledge are expanding and becoming increasingly sophisticated. Today, it is impossible to accurately predict what kind of regional study will be most beneficial ten or twenty years from now. That said, regional studies can generate valuable environmental and socio-economic information on the potential impacts of a proposed project. This would definitely be information that the Northwest Territories' regulatory boards would find useful.

Although the proposed bill does not specify the form, scope, or subject of the studies, it clearly sets out what these studies and committees are not. Regional studies are not a substitute for the regulatory boards, for example, or any of the roles these boards play in the regulatory regime.

The bill also states that a committee has no other role than what is set out in its terms of reference. Asking a committee to undertake a study essentially means hiring an expert or consultant to prepare a report. Under this bill, regional studies would be subject to the general principles of the integrated co-management regulatory regime authorized by the Mackenzie Valley Resource Management Act.

The value of including regional studies in environmental impact assessments has long been recognized. Under subsection 16(1), proponents had to consider the cumulative environmental effects of their projects, while section 16(2) emphasized the role and value of regional studies, outside the scope of the act, in considering cumulative effects. Parliament repealed the act in 2012, replacing it with a new version that explicitly authorizes the minister of the environment to establish committees to conduct regional studies. Regional studies also feature prominently in a 2009 publication issued by the Canadian Council of Ministers of the Environment.

The publication, which is entitled “Regional Strategic Environmental Assessment in Canada: Principles and Guidelines”, lists the benefits of regional studies. These include analyzing, identifying and managing cumulative environmental effects at a more appropriate, regional scale.

According to this publication, regional studies can also contribute to the discussion of alternative sustainable future scenarios and key environmental goals and objectives for a region.

Studies save time and resources by avoiding environmental effects early on, rather than mitigating cumulative effects much further down the line. Regional studies establish regional environmental targets, limits and thresholds against which to monitor and evaluate subsequent development and management actions. In this way, studies support effective project-based performance assessment. Lastly, the publication suggests that regional studies can provide an early indication of public interest in regional environmental issues.

It is clear that the value of regional studies to environmental impact assessments is increasingly being recognized. Many regulatory regimes in Canada use them as a way to collect environmental data and analyze environmental effects. Besides the Canadian Environmental Assessment Act, provisions authorizing regional studies also appear in section 5 of Saskatchewan's Environmental Assessment Act and section 112 of the Yukon Environmental and Socio-economic Assessment Act.

Many other jurisdictions in Canada incorporate regional studies into impact assessments, even though those studies are not explicitly mentioned in the legislative measure in question. The simple truth is that regional studies are becoming increasingly popular because they are useful. They can provide accurate, up-to-date, relevant data. They are versatile and can be adapted to specific, practical circumstances. For example, a regional study may analyze potential impacts from the perspective of an ecosystem or region as a whole, rather than solely from the perspective of a particular project. Regional studies can provide necessary baseline data from which to analyze the impact of future development projects. These studies can also help to determine environmental thresholds. Ultimately, the reliable data and analyses generated by regional studies help board members make well-informed decisions.

By authorizing regional studies, Bill C-88 will make this valuable tool available to regulatory boards in the Northwest Territories. The studies can be used to support project reviews and potentially speed up environmental assessments and environmental impact reviews.

Our government is committed to maintaining strong legislation that protects Canada's rich natural environment, respects the rights and interests of indigenous peoples and supports Canada's resilient natural resources sector. Bill C-88 makes a number of significant improvements to the system.

In addition to authorizing the use of regional studies, the bill restores the regional land and water boards and creates a law enforcement system comprising inspections and revised penalties. Other changes will allow the boards to request extensions of their members' terms and enact regulations governing how governments and proponents consult indigenous peoples during the process to issue licences and permits and the environmental impact assessment process under the law. All these improvements will strengthen northerners' ability to maximize the benefits of resource projects while minimizing their negative impact.

In closing, the bill before us deserves the support of the House. I encourage my hon. colleagues to join me in supporting Bill C-88 at second reading.

[Michael McLeod, Liberal, Northwest Territories, NT]

Madam Speaker, I want to quickly remind people what the former grand chief of the Tlicho government said at the hearing. He stated:

It took 13 years of negotiations, negotiations with Canada and the GNWT, to arrive at the compromise that could have true co-management in the Wek'eezhii region, what we call the heart of the territory...

The board works and it works well, but Bill C-15 wants to take all that away. It wants to destroy what took so long to build. It wants to do so with no rational reason whatsoever. Bill C-15 seeks to destroy the Wek'eezhii Land and Water Board. It wants to terminate it and replace it with a super-board with jurisdiction over the whole Mackenzie Valley.

I think everyone would agree that our board systems work well. They are effective and efficient. We are not sure why we would try to fix something that is not broken.

Would the member agree that we should leave the system that is in place, retract what the Conservatives put in the bill, and let the boards operate with the northerners in charge?