Evidence of meeting #43 for Finance in the 43rd Parliament, 2nd session. (The original version is on Parliament’s site, as are the minutes.) The winning word was payments.
A video is available from Parliament.
Liberal
The Chair Liberal Wayne Easter
All right. Does anyone have questions on this one?
The amount of money is outlined in your documents. It's a little over $3 billion.
Mr. Falk.
Conservative
Ted Falk Conservative Provencher, MB
Thanks, Mr. Chair.
That is a lot of money, but it's over 38 years, so I appreciate that.
Has the calculation been done on that amount of money to find out whether it is actually fair compensation for royalties related to the oil and gas sector?
Director General, Corporate Finance, Natural Resources and Environment, Economic Development and Corporate Finance, Department of Finance
The amount for the payments is tied to the expected dividends that Canada would receive from its part ownership in the Hibernia project. It's tied to the equity share in the Hibernia project, rather than to an amount that would be collected from royalties through the production of oil and gas.
Conservative
Director General, Corporate Finance, Natural Resources and Environment, Economic Development and Corporate Finance, Department of Finance
I'm not entirely sure I can answer the question as posed. The amount is tied to the specific equity share in this project and to the dividends that were expected from it over that period of time.
Conservative
Ted Falk Conservative Provencher, MB
Do we have good reason to believe that those dividends will be there?
Director General, Corporate Finance, Natural Resources and Environment, Economic Development and Corporate Finance, Department of Finance
We do.
Conservative
Tamara Jansen Conservative Cloverdale—Langley City, BC
This is $3 billion over 38 years. Especially with the kind of inflation we're seeing now, do we think that setting today's dollars for 38 years from now is going to be adequate? Is there some sort of equation put into this to consider that sort of thing?
Director General, Corporate Finance, Natural Resources and Environment, Economic Development and Corporate Finance, Department of Finance
The agreement, which is a public document, has provisions for a true-up.
Liberal
The Chair Liberal Wayne Easter
Does that answer your question, Tamara? It does have provisions for a true-up.
Hearing no further questions for Mr. Millar on division 16, we'll go to the last division for this panel, division 20, which is on the Canada–United States–Mexico Agreement Implementation Act.
I believe this one is for Ms. Cantin. Has she just come on?
Marie-Hélène Cantin Senior Economist, International Trade Policy Division, International Trade and Finance, Department of Finance
Hello. I am Marie-Hélène Cantin and I am a senior economist with the international trade policy division of the Department of Finance.
The amendments contained in division 20 are technical and administrative clarifications to support Canada's long-standing approach in the selection of candidates for rosters, panels and committees for disputes concerning antidumping and countervailing duties lodged under NAFTA, the North American Free Trade Agreement, or CUSMA, the Canada—United States—Mexico Agreement.
Chapter 19 of NAFTA provided for a dispute resolution mechanism for antidumping and countervailing duties that was used to replace domestic judicial reviews. Chapter 10 of CUSMA leaves this mechanism intact, which was a key objective for Canada in the negotiations. Chapter 19 of NAFTA provides that the responsibility for choosing candidates for rosters, panels and committees is shared between the Minister of International Trade and the Minister of Finance.
This shared responsibility was in keeping with the fact that the Minister of Finance is responsible for the antidumping and countervailing duties regime in Canada according to the Special Import Measures Act, as well as the fact that the Minister of International Trade is responsible for defending Canadian interests in American or Mexican investigations into dumping and subsidies.
Bill C-30 proposes changes to the Canada—United States—Mexico Agreement Implementation Act to reestablish the requirement of obtaining the consent of the Minister of Finance when the Minister of International Trade selects candidates for rosters, panels and committees as per the terms of Chapter 10 of CUSMA.
My colleagues from Global Affairs Canada, John Layton and Raahool Watchmaker, are here with me and ready to answer your questions.
Conservative
Conservative
Ed Fast Conservative Abbotsford, BC
Then I misheard. I have a question, but I'd love to have the minister here to answer that question.
As you know, the United States has been very reluctant to appoint panellists to the rosters of the World Trade Organization, which has effectively emasculated that organization.
Have we run into the same challenge with NAFTA, and now CUSMA?
Marie-Hélene Cantin
Recently, there have been some delays in setting up the panels, especially those that were going to work on resolving softwood lumber disputes. Setting up the panels always takes a while, because the governments involved have to evaluate the availability of members who are on the roster as well as any disclosures of a conflict of interest. Each government has the right to use up to four vetos on candidates nominated by another country, which also generates its fair share of delays.
Nonetheless, as is the case for any tribunal, the parties involved in the dispute continue to file their legal documents within the prescribed timelines. Once the panels are set up, they simply have to organize sittings, analyze information and make a decision. That part happens rather quickly.
The changes proposed in Bill C-30 will not directly impact the time needed by public servants to nominate candidates for Canada. We find that the delays that have happened over the past few years were regrettable. That said, we hope that there will be a return to a more efficient way of organizing panels as per the terms of CUSMA.
Bloc
Gabriel Ste-Marie Bloc Joliette, QC
Thank you, Mr. Chair.
Ms. Cantin, thank you for your presentation, which was very clear.
I would simply like to draw the committee members' attention to a small error in the French version of the huge 600-page document on Bill C-30. The question and answer part on this division is in English, but it should be in French.
I was wondering if the persons responsible could make the necessary change.
Liberal
The Chair Liberal Wayne Easter
That is a valid point, Gabriel.
Are there any other questions on division 20?
Are there any other questions that come to mind on any of these divisions that the witnesses are here for: divisions 6, 7, 11, 12, 13, 15, 16 and 20?
Ms. Kennedy, do you want in?
Acting Director General, Federal-Provincial Relations Division, Federal-Provincial Relations and Policy Branch, Department of Finance
I just want to say that I also lost my connection, so I did not speak to division 16 and I am available if you want me.