Foreign Affairs Committee on March 7th, 2013

[The Chair, Conservative, Dean Allison]

Good morning, everyone. Welcome. Pursuant to Standing Order 108(2), we are continuing our study on Canada's Arctic foreign policy.

I just want to mention that we're going to have bells probably at about 11:20. My suggestion is that we get the opening testimony in and see if we can ask a couple of quick questions and maybe have the committee leave at about 11:30. We'll be about 10 minutes into bells, if that makes sense. That way, we can at least move forward.

I want to just welcome everyone here. We have Danielle Labonté, who is the director general of the northern policy and science integration branch with the Department of Indian Affairs and Northern Development. Welcome, Danielle.

We have John Kozij, who is the director of the strategic policy and integration directorate, also with the Department of Indian Affairs. Welcome to you, sir.

From the Canadian Northern Economic Development Agency, we have Mitch Bloom, who is the vice-president of policy, planning, communications, and northern projects management office.

I'm not going to do much talking. I'm going to leave all of that to you.

Danielle, did you want to start first, then, with your testimony?

[Danielle Labonté, Director General, Northern Policy and Science Integration Branch, Department of Indian Affairs and Northern Development]

Sure.

[The Chair, Conservative, Dean Allison]

We'll go with both testimonies. And as I said, we'll try to at least get a couple of questions in before we have to head out.

So I'll turn the floor over to you.

[Danielle Labonté]

Thank you, Mr. Chairman.

Thank you, Mr. Chair, for the opportunity to address the committee this morning regarding northern development, using the framework of Canada’s Northern Strategy. I will focus on domestic issues and conclude with some brief remarks about our department's role with respect to the Arctic Council.

The northern strategy, as you know, is a whole-of-government effort. It's led by the Minister of Aboriginal Affairs and Northern Development, and it's advanced by numerous federal departments and agencies. As I speak, I'll refer to examples from many departments today.

The northern strategy is structured around four mutually supporting pillars, shown on the first page of the handout you have before you. It has both domestic and international dimensions and is supported by science and technology. Together these four pillars provide a comprehensive framework for development of Canada's north, to the benefit of northerners and all Canadians.

Under the social and economic development pillar, the aim is to unlock northern economic potential and to work with northerners to build vibrant and healthy northern communities. Canada's north has tremendous resource potential. For example, about 13% of the world's undiscovered oil and 30% of undiscovered gas lie under the Arctic seabed. Fifteen years ago Canada was not a diamond producer, and now we're a global leader. That gives you a sense of the scale of opportunity and how quickly, with the right circumstances, fortunes can change.

To unlock these opportunities, the government has invested in a number of initiatives, including the geomapping for the energy and minerals program at Natural Resources Canada. This supports the development of geoscience maps of Canada's north to help prospectors find energy and minerals.

The government is also committed to streamlining the regulatory process and to having northern regulatory regimes that are more effective and predictable, while safeguarding the environmental health and heritage of the region and providing meaningful aboriginal consultation so we can get northern resource projects up and running.

Skills training is key to ensuring that northerners benefit from these opportunities. There are a number of federal programs that address this issue, including a suite of labour market skills initiatives at Human Resources and Skills Development Canada.

Under the Arctic Sovereignty pillar, the strategy calls for strengthening Canada’s arctic presence, advancing our knowledge of the arctic domain, and enhancing our stewardship of the region. For example, the new polar-class icebreaker and arctic offshore patrol ships will increase Canada’s capacity to monitor and respond to arctic shipping incidents.

The Environment pillar highlights the importance of protecting fragile arctic ecosystems. Canada is taking a comprehensive approach to the protection of environmentally sensitive lands and waters, through initiatives such as the accelerated clean-up of federal contaminated sites, and the establishment of protected areas.

To address community impacts, programming was launched in 2011 to help Canadians, including northerners, adapt to climate change, and to promote the deployment of clean energy technologies in aboriginal and northern communities.

Under the governance pillar, the government is committed to providing northerners with more control over their economic and political future. This includes advancing the devolution or transfer of land and resource management from the federal level to territorial governments.

This devolution process involves negotiating with territorial governments and aboriginal groups, and it's proceeding across the north at a different pace in each territory. Negotiations toward a final devolution agreement in the Northwest Territories are currently far advanced. An agreement in principle for devolution was signed in 2011, and negotiations toward a final agreement are nearing a successful conclusion.

I'd also like to highlight the foundational role of Arctic science. Complementary to the ongoing programs of several science-based departments, I'd like to especially highlight two new initiatives led by my minister. Firstly, the Canadian High Arctic Research Station will be a year-round facility, in Cambridge Bay, Nunavut. It will advance Canada's knowledge of the Arctic in order to improve economic opportunities, environmental stewardship, and the quality of life for northerners and all Canadians.

Second, the Beaufort regional environmental assessment is a four-year partnership that involves federal and territorial governments, Inuvialuit communities, academia, and industry. It was established to develop a knowledge base of scientific and socio-economic information in advance of oil and gas development so as to inform the decision-makers of the region, that is, government, private sector, and citizens.

Both of these initiatives demonstrate that Canada's leadership in Arctic science today will ensure we have the knowledge necessary for sound policy and decision-making in the future.

Finally, I'd like to talk a little about Canada's forthcoming chairmanship of the Arctic Council, which will continue this focus of northern development with the overarching theme of development for the people of the north. Aboriginal Affairs and Northern Development has a long history of providing leadership and expertise to the Arctic Council working groups and task forces that produce assessments and develop new instruments for Arctic cooperation.

Our department is the government lead for Arctic Council work in a number of areas, particularly, creating an enabling environment for sustainable oil and gas development in the north, Arctic human development matters, and supporting and advancing aboriginal perspectives of the Arctic Council.

We look forward to continuing to provide significant support when Canada is chair of the council.

Thank you for your time.

[The Chair, Conservative, Dean Allison]

Thank you, Ms. Labonté.

We're going to now turn it over to Mr. Bloom.

You have 10 minutes, sir.

[Mitch Bloom, Vice-President, Policy, Planning, Communications and Northern Projects Management Office, Canadian Northern Economic Development Agency]

Thank you, Mr. Chair.

Good morning, everyone.

Thank you for the invitation to address the committee on the role the Canadian Northern Economic Development Agency, or CanNor, as we're generally known, plays in promoting economic development in our north, both domestically and abroad.

Canada is recognized as being blessed with an abundance of natural resources. Nowhere is this defining characteristic more true than in our north. With nearly 40% of our country's land mass, and a coastline that is twice as long as the Atlantic and Pacific coasts combined, Canada's Arctic is a vast and diverse region. This unique environment shapes the cultural, social, and economic well-being of northerners.

As the regional economic development agency for the north, CanNor plays an integral role in advancing the social and economic development pillar of the northern strategy.

In Canada’s north, natural resources are the primary large scale driver for economic development and employment. The scale of resource development in this region is reaching unprecedented levels. World demand and commodity prices have brought global attention to the north’s rich supply of minerals, metals, oil and gas. Emerging markets around the world provide Canada with an opportunity to responsibly develop our natural resources for the benefit of all Canadians.

This interest is also leading to an increase in the number of projects being brought forward for approval. Over the last decade, 10 projects went through environmental assessment—about one a year. At this time, 21 major resource and regional infrastructure projects are in the regulatory process across the three territories, eight are set to potentially enter the environmental assessment phase in the coming 18 months.

Once in production, the 29 projects represent over $23 billion in capital investment, and approximately 10,000 short-term construction jobs and 9,500 long-term operating jobs. With over 150 companies undertaking active exploration across the territories, the number of projects could continue to increase rapidly.

CanNor is proud to count itself among those working toward a strong and dynamic northern economy and to help position the three territories and their peoples to capitalize on this potential.

CanNor has three principal business lines that help drive economic development in the north: one, our northern projects management office; two, contribution programs; and three, conducting research and developing policy to support northern economic development. All these areas are interrelated and must work as a whole for CanNor to achieve its objectives.

First, CanNor is home to the northern projects management office, or NPMO. NPMO acts as a pathfinder, adviser, and problem solver for industry and northern aboriginal communities. We work in partnership with other federal departments, the territorial governments, the project proponents, aboriginal organizations, and other stakeholders to resolve issues so that the regulatory review process is efficient and timely, while at the same time, taking the necessary steps to position Canada's north as a world-class destination for responsible resource development.

The Agency has a suite of programs that provide funding to support the development of key economic sectors including mining, tourism, fisheries, cultural industries, and community and business development. A key program is Strategic Investments in Northern Economic Development, which focuses on strengthening these key sectors, promoting economic diversification, and encouraging northerners’ participation in the economy.

The success of these economic sectors depends on a labour force with the right skills and training. Improving the quality and effectiveness of skills development and training is critical. In February 2012, the Northern Adult Basic Education Program was launched to help northerners develop the skills needed to enter the labour market or take further vocational training. These programs, along with our Aboriginal Economic Development programs and others, are intended to develop capacity in the northern economy, so that businesses, communities and people can prosper.

Finally, CanNor serves as the federal voice for the north. By building an understanding of the north through our work with our partners and through our policy and research efforts, we promote northern interests both within and outside the federal government—in Ottawa, in the north, and now, to an increasing extent, internationally.

We realize that the economic future of our north, specifically in terms of resource development, is very much a function of actions and activities around the world. The resources of the north serve global markets. Many of the companies advancing these projects are headquartered outside Canada in countries such as the United States, Luxembourg, China, Australia, and Switzerland.

Many of the funds that feed projects and exploration are coming from global capital markets. For these reasons, we believe it is important to position our north as a world-class destination for resource development. As we say, it's a very competitive planet and we need to promote our northern advantage.

We have world-class geology and immense size to go with it. We have a regulatory process that already features one environmental assessment and is being streamlined. We have positive aboriginal relations, many settled land claims, and a readiness to move forward.

We also have federal government commitment and strong partnerships across federal departments with territorial governments as well as with industry and aboriginal communities. Working with our colleagues in the Department of Foreign Affairs and International Trade, we are honing this message and taking it around the world.

This working relationship will further be strengthened by the fact that yesterday, our president, Mr. Patrick Borbey, was named as the chair of the Arctic Council's senior Arctic officials. His northern knowledge and experience will serve Canada well during its chair, particularly given the overall theme of development for the people of the north. All of CanNor looks forward to contributing to this theme in the next two years.

We truly believe that this is the time for Canada's north and for its peoples. We believe that success will be a product of both domestic and international efforts. We are a small and relatively new organization, but one that is prepared to do what is needed to seize this opportunity.

Thank you again.

[The Chair, Conservative, Dean Allison]

Thank you very much.

I think what we'll do, since the bells are going to go, as I mentioned, in about five minutes, is try to get one round in of five minutes each. Would that make sense?

[An hon. member]

Yes.

[The Chair, Conservative, Dean Allison]

Would that be okay with everybody? We'll go for five minutes, and then all three will get a chance. We'll ask questions into the bells, and that will give us 15 minutes to get back to the House.

All right. We'll start with Mr. Dewar, for five minutes, please.

[Paul Dewar, NDP, Ottawa Centre, ON]

Thank you, Chair.

And thank to our witnesses, and apologies about the time. There's a time allocation thing going on with the government. They seem to want to curtail time on debates. But anyhow, here we are.

Ms. Labonté, I'll just start with you. One of the things that we're concerned about as a country, and working with our neighbours to the north, is ensuring that we all agree on boundaries, we agree on science. To do that, it's really important to work in a collaborative manner. I'm just wondering if you could tell us what kind of collaboration is going on with some of our partners in other countries in terms of your scientific work.

[Danielle Labonté]

There is a fair amount of collaboration that has been going on in science for many years. It started with the International Polar Year. Canada played a key leadership role in that. We hosted the wrap-up conference. But also one of the files that I'm involved with is the High Arctic research station. We are in the process of developing some MOUs in collaboration with—

[Paul Dewar, NDP, Ottawa Centre, ON]

With which countries?

[Danielle Labonté]

The U.S. is one that we're working with. Also, we're looking at Germany. Germany has a lot of assets. They have some ships, as well as some other platforms. Those are the most advanced. A number of countries have indicated interest, but they're not as advanced. China and Japan are two, and the European Union.

So there are a number of countries that, now that the funding for the station has been announced, we're in a better place to start having active conversations with. We've learned a lot along the way in the last three or four years from those countries as well, especially those that have assets. In both the Antarctic and the Arctic, we did a lot of benchmarking and have received a lot of useful advice.

[Paul Dewar, NDP, Ottawa Centre, ON]

Have you taken part in some of the events here in Ottawa with other countries on the Arctic? There have been a whole number of them in the last number of years. Other countries have done forums. I'm thinking of Norway and other countries. Do you participate in those?

[Danielle Labonté]

Yes, we work very closely with the Department of Foreign Affairs and we're involved in the Canada-Norway dialogue. That's one of the ones I can think of off the top of my head. We have an MOU with Russia as well. That's broader than science. It's very multidisciplinary.

[Paul Dewar, NDP, Ottawa Centre, ON]

You value that opportunity to work with those countries and participate in those?

[Danielle Labonté]

Absolutely, yes.

[Paul Dewar, NDP, Ottawa Centre, ON]

I say that because we were hoping that we'd actually have representatives from the embassies of those countries here. But sadly the government doesn't want to have them here. I just note that you are involved in that, and I'm glad you are.

Mr. Bloom, if I could, I'll turn to you on unemployment. It's very important for us to see that there is some sort of focus on aboriginal employment. The issue we're dealing with is, of course, the Arctic Council. This is an international forum. What we're wanting to see is that Canada is going to be, as I said to Ms. Labonté, working with others, but a major concern for us is the participation of first nations and aboriginal people, and in the case of the north, the Inuit, in terms of their being able to have a say in how things are developed.

Now, frankly, you're not part of the Foreign Affairs piece, you're part of the—

[Bob Dechert, Conservative, Mississauga—Erindale, ON]

I have a point of order, Mr. Chair. Unfortunately, I believe, if I'm not mistaken—we'll have to look at the transcript—a few minutes ago I heard Mr. Dewar talk about business that was discussed in camera, in committee business, which I'm told is against the rule.

[Paul Dewar, NDP, Ottawa Centre, ON]

No, I'm referring to the position of the government. I think we're debating—

[The Chair, Conservative, Dean Allison]

Okay. All right.

[Bob Dechert, Conservative, Mississauga—Erindale, ON]

I'd like, Mr. Chair, if you could—

[Paul Dewar, NDP, Ottawa Centre, ON]

I can reference the conversation I had with the Minister of Foreign Affairs, if you'd like.

[The Chair, Conservative, Dean Allison]

Okay.

[Bob Dechert, Conservative, Mississauga—Erindale, ON]

—look at the transcript and provide us with a ruling on whether Mr. Dewar has breached the rules in that regard.