Thank you.
I want to thank you for the opportunity to meet with the finance subcommittee with respect to responsible resource development. Accompanying me are the Hon. Peter Kent, Minister of the Environment, and the Hon. Keith Ashfield, Minister of Fisheries and Oceans.
We will all speak briefly about our shared interests in Bill C-38 before taking questions from the members.
Mr. Chair, members of the subcommittee, our government's top priority has always been to support jobs and growth and to sustain Canada's economy. Since we introduced the economic action plan to respond to the global recession, Canada has recovered more than all of the output and all the jobs lost during the recession. Since 2009, employment has increased by more than 750,000 jobs and is now more than 260,000 above its pre-recession peak. It's the strongest job growth among G-7 countries.
Natural resources have always been the foundation of Canada's economy, and that remains the case today.
Canada's natural resource sectors employ 760,000 Canadians. Furthermore, the resources sectors generate billions of dollars worth of tax revenue and royalties annually, helping to pay for government programs and services for Canadians.
Our resource strength is set to continue to expand well into the future. We currently estimate that over the next decade there is the potential for well over 500 new projects and over $500 billion in investments across the country in the energy and mining sectors alone. These projects will create an estimated 700,000 jobs and will contribute substantially to our country's economic prosperity. In fact, the numbers are growing as new opportunities are identified.
There have been suggestions that resource development only helps the west while hurting the east. This is inaccurate and divisive. Resource development, mining, forestry, and energy projects are happening across Canada, and they're helping every provincial economy.
In British Columbia they are rapidly pursuing the export of liquid natural gas, and three projects are moving forward.
In Alberta the oil sands are creating benefits across Canada, including Ontario's manufacturing sector.
In Saskatchewan they are increasingly pursuing their oil resources and potash, as well as uranium.
Manitoba has large hydroelectric installations that are providing cheap and clean energy.
Ontario is looking at the development of the Ring of Fire, a massive mineral deposit that has billions of dollars in potential.
Quebec, which has long been a mining and energy giant, is moving forward with their Plan Nord which would provide massive benefits to the Quebec government and each of its citizens.
New Brunswick has large forestry resources. Nova Scotia has offshore gas development. P.E.I. is investing in wind. Of course, Newfoundland and Labrador has benefited greatly from their offshore oil fields.
Last but not least is the north and its territories, which are largely untapped. The extent of their resource wealth is not fully understood, but its potential is enormous.
Of course, this is only part of the story. The resource sector does not operate in a vacuum; mines do not appear out of thin air. They require construction, huge capital investments, materials, and machinery. They require workers in every sector of the Canadian economy, especially in our manufacturing sector.
Jayson Myers, president and CEO of Canadian Manufacturers and Exporters, strongly supports resource development precisely because it helps our manufacturing sector.
To quote:
In total, [we] estimate that energy and resource companies invested more than $85 billion in major capital projects in 2011, and [we think those investments will] double over the next three years. ... These investments...will drive new business for Canadian manufacturers in a variety of sectors ranging from equipment, structural steel, and metal fabricating to construction materials and parts suppliers. They will provide opportunities for engineering and construction companies, processing and environmental technology companies, and services ranging from accommodation, food, environmental, and resource services, through to land management, trucking, and distribution as well.
This type of investment will take place across Canada, helping all sectors of the Canadian economy. That is why it is so important to ensure that Canada has the right conditions to attract global capital in our provinces and territories. Canada must compete with other resource-rich countries around the world for these job-creating investment dollars.
This is the fundamental reason why our government is committed to modernizing Canada's regulatory system. We need to ensure timely, efficient, and effective project reviews. This will keep us competitive with the likes of Australia and other resource-producing nations. We need a system that promotes business confidence and attracts investment while strengthening our world-class environmental standards. In short, we need responsible resource development.
Here's what this new legislation will achieve:
First, it will make project reviews more predictable and timely.
Second, it will reduce unnecessary duplication and regulatory burden.
Third, it will strengthen environmental protection.
Fourth, it will enhance consultations with aboriginal peoples.
To streamline and modernize our outdated regulatory system, we will take a whole-of-government approach. We want to put in place a new system of “one project, one review” that operates within a clearly defined time period.
Canadians understand that we do not have to choose between economic development and the environment. It is not an either/or proposition. A new poll conducted by Ipsos Reid shows that two-thirds of Canadians believe it is possible to develop our economy while respecting the environment.
The fact is our new plan will strengthen environmental safeguards, including tanker and pipeline safety. For the first time, it will provide enforcement of environmental assessment conditions under the Canadian Environmental Assessment Act. It will also strengthen enforcement with monetary policies respecting the National Energy Board conditions on new pipeline projects. So our changes make sense from both an economic and an environmental perspective. We Canadians have a wonderful new opportunity before us.
There is no better time to act than right now. We have to give ourselves every chance to compete for job-creating investment dollars from fast-growing markets in Asia and elsewhere.
We also know it is absolutely necessary to develop our resources in a responsible way. Responsible resource development achieves the balance we need. We will unleash the potential of our resource sector to create jobs across Canada while ensuring that our environmental protections are strong. That is what Canadians expect, and that is what our plan delivers.
Thank you, Mr. Chairman.