Evidence of meeting #25 for Indigenous and Northern Affairs in the 40th Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was boards.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Neil McCrank  As an Individual

9:05 a.m.

Conservative

The Chair Conservative Bruce Stanton

Good morning to all members of the committee, guests and our witness. This is the 25th meeting of the Standing Committee on Aboriginal Affairs and Northern Development. On the agenda today:

continuing consideration of our study on northern economic development--in fact, the preamble to our study.

Members will recall that we are in the process of hearing witnesses who will help to shape our expected more thorough study on the important issue of northern economic development, i.e. economic development north of 60°.

This morning we welcome Neil McCrank, who is the author and in fact the facilitator of an important report on northern regulatory issues. Mr. McCrank will be here for the duration of our meeting.

Mr. McCrank, we welcome you. You have a ten-minute opening statement, and then we will go to questions from members. You may proceed.

9:05 a.m.

Neil McCrank As an Individual

Thank you, Mr. Chairman.

Bonjour.

Ladies and gentlemen, it's nice to be here with you. I would like to thank your clerk for making the arrangements so easy for me.

I hope to make a few opening remarks, because I understand that everyone has had access to this document, which is the report I prepared. I was hoping there would be somebody here from Indian and Northern Affairs to provide copies in case you didn't have them, but I see most people have it in any event. I haven't seen my colleagues from INAC show up, so I'm not sure if they're coming.

I thought for ten minutes or so I would outline the report, and then, as I understand it, the purpose is for you to ask questions about the report, which you probably had a good chance to review in any event. The outline would consist of a little discussion about the process and the mandate I conducted in preparing the report, some of the findings I made in the course of the time I was doing the report, some of the recommendations, and a brief comment about what I hope are the themes that arise out of this report from your reading of it.

First of all, in terms of the process, I was appointed a ministerial representative by Minister Strahl in November 2007, and the basic objective was to hold discussions with all the stakeholders in the three territories to see if recommendations could be made that would improve the regulatory environment. It was left fairly vague in terms of the specifics of the assignment itself, because a lot of initiatives are going on in the north, as I'm sure you are aware, and I don't think the minister wanted to tie me down to one area.

It was part of what is referred to in the federal government as a northern regulatory improvement initiative, and this was just one component of that. Ongoing improvements were being made at the time I did my report and are still being made, and this was to be part of that initiative.

I held meetings in about a dozen places in the north and in other parts of Canada with over 100 groups or individuals. Sometimes it was one person. Mr. Bevington and I met at one point, and at other times we met with groups of people, or I met with groups of people pretty well all the time on my own, although I have to say I was very well supported by INAC, who provided me with logistical support and any other support I needed. They did not try to influence in any way the shaping of the report or the recommendations, but they were a great support to me.

The groups I met with were local communities; aboriginal groups; some signatories to the land claim agreements; and all three of the territorial governments, including premiers from two of the territories. I had a lot of involvement with the federal government and the various departments, because as I'm sure you know, there's regulatory overlap in a lot of areas from the federal government's point of view, and of course I spent a lot of time with the various regulatory bodies. I'll go through that in a little more detail in a minute, but that gave me a good perception or good perspective on what was happening north of 60.

Initially, and it continued to be the mandate, I was to look at all three territories. But it became pretty clear to me at the outset that this was a pretty ambitious project and that perhaps it should be limited to where I thought the most serious issues were, and in my view, that was the Mackenzie Valley south of the Inuvialuit area. So while I did spend some time in Yukon and Nunavut, most of my time was spent in the Northwest Territories.

After all the meetings were held and I got some ideas together, we held a round table of all the stakeholders who were prepared to come. We had a very big room, larger than this, full of people from all the different stakeholder groups that I talked about from the three different areas, including industry--that I should have mentioned, by the way--which was one of the participants. We had two days of intensive discussion, where we bounced some ideas around about what some of the recommendations might be. At this stage I would confirm that most of the ideas that are in the report are not necessarily ideas of my own but ideas that came out of that round table and earlier reports that had been commissioned.

Moving on to the findings, the findings of course were that there could be improvements made, as there can be in any regulatory system, I suspect, in any place in the free world. What I tried to do, though, was to put some science behind the review. I tried to compare what was going on in the territories with what one might consider to be a model regulatory system. And I outlined 11 criteria that I think should be looked at if you are looking at a regulatory body for the first time and trying to set it up.

And then based on that analysis, I came up with some recommendations as to what should and shouldn't be repaired in the territories. There were 22 recommendations of a specific nature, and they apply right across the three territories. Again I have to say that none of those are rocket science and none of those are dramatically new.

One thing I did in my report was outline all of the previous reports that have been conducted in the north, and the recommendations that were made and the status of the implementation of those recommendations, some of which have been implemented and some of which have sat on the shelf some place. I regenerated all of those reports and, from those, came up with another 22 recommendations, which, as I say, are repetitive to some extent of what had happened in the past, but they are still good recommendations that still need to be implemented. And we can talk about the individual ones in a minute. Most of them, again, refer to the Mackenzie Valley, although they refer to all three territories in the broad sense.

The major recommendations I made were with respect to restructuring in the Mackenzie Valley area. And this is the one that has probably gathered the most interest and attention from parties that are in the north or elsewhere and have commented on it, some favourably and some not favourably in terms of what the recommendations were. It was and still is my judgment that at the moment the regulatory systems, at least in the Mackenzie Valley, fail to deliver on two specific grounds. One is that the system is far too complicated, and second, there is not the capacity in the various boards that exist in the north to perform the duties that you would expect from a regulatory body.

I should outline at this stage that my count—and there were different counts of how many regulatory bodies exist in the north—as well as I could do it, was 17 regulatory bodies in the Mackenzie Valley, all dealing with resource development. As I say, that adds a huge amount of complexity and in many ways under-delivers from a capacity point of view because of the numbers of them.

So my recommendations were that some of those boards be merged and that there should end up being one land and water board and one environmental board in, for instance, the Mackenzie Valley. One would say that takes away from the northern influence because the land claim agreements were all signed on the basis of local involvement and co-management of the resources. My suggestion is that it doesn't have to take away, because the influence can be brought to bear at an earlier point in the process, and that's at the land use planning stage. So a key or a fundamental component of the recommendation that we merge the boards would be that the land use plans have to be completed. They are not completed in most of the area of the north at the moment, and I think that's where the local influence, which is very important and is key, really, to the development of any community, has to be brought to bear.

The second component of that was that once this board that I had recommended be restructured is up and running, it should become the final decision-maker and it should not have to send recommendations here to Ottawa for the minister to make final decisions on. In other words, if we're going to set up a regulatory body that we have some confidence in, set it up and let it operate with that amount of confidence and make it the final decision-maker.

Of course, that board would consist of appointments by the federal government, but with the influence of the local government and the Northwest Territories government. That could change over time to be a NWT appointment process, or something of that nature.

Those are the recommendations I made. If one had sat in on the round table in Yellowknife in March 2008, one could have predicted those recommendations, because the discussion circled around all of those recommendations, including restructuring.

My final comment is on the themes that I hope come out of this report. The first one is that by no means is this report about resource development. It is not up to me to make a decision or recommendation on whether or not there is resource development in the north. That's to be made by the people who live in the north and are responsible for the northern communities. So this is not about resource development.

On what it is about, if a decision is made by those who are responsible--governments and local communities--to allow resource development, how can that resource development be done in an orderly and responsible way and in the public interest? That's where my recommendations come in on the regulatory bodies. That has been my role in life for a long time. I've been with regulators for a long time, and I've always said I am ambivalent as to whether or not development takes place. But if it's going to take place, let's ensure it takes place in a responsible way. So it's not about resource development; it's about ensuring that if there is resource development, it takes place responsibly.

The second theme that I hope comes through clearly is that local input is absolutely key to any development in the north. This has been clear from the land claim agreements that have been signed, which I fully support. The only difference I take with the current structure versus the way I suggest it should be is that the more appropriate time for that local input and influence to take place is at the land use planning stage, and not at the regulatory stage. At the land use planning stage you can carve off entire areas and say there should be no development for a variety of reasons, or there should be development in this area. But at that stage the regulatory system should kick in and make decisions as to whether or not the resource can be developed in an orderly and responsible way and in the public interest, taking into account very serious professional objectives relating to conservation, safety, engineering components, environmental aspects, and the like. But at that stage it's a technical decision and not a policy decision, as it is at the land use planning stage.

With those opening remarks, I'm open to try to respond to any questions members may have.

9:15 a.m.

Conservative

The Chair Conservative Bruce Stanton

Yes. Fine.

We will now begin the first round of questioning by the members. Mr. Bagnell, you go first.

You have seven minutes.

9:15 a.m.

Liberal

Larry Bagnell Liberal Yukon, YT

Thank you, Mr. Chair.

I'm the critic for the north, so this is of great interest to me. I think we all understand the interminable delays in the Northwest Territories. The problem is that these structures, some of which you recommend altering, are set up in constitutionally protected land claims, as I'm sure you found out, that were developed over negotiations. I know ours took 30 years, and I'm not sure how long some of them took.

Do you think it's realistic to change those items? That's the problem. People see that there's a need for change, but I'm not sure whether those can be changed, in reality.

9:15 a.m.

As an Individual

Neil McCrank

Honourable member, it's a very good question, and I think I got it all; I wasn't hearing all of it completely. But if the question is whether we can really expect that these constitutionally protected land claim agreements, from which the resource development regulatory bodies were developed or came out of, can be changed, I guess I understand the difficulty. In fact, I think I point out in the course of my report that at the round table discussion in Yellowknife, everybody agreed that reopening the land claim agreements would be very difficult. There's no question about that. There's a debate in some people's minds as to whether they have to be reopened or whether it can be an interpretation, the changes made just by interpretation. I'm not in that camp, because I think that would be avoiding the issue of re-addressing what I think was a fundamental error made when the regulatory bodies were set up, based on what was in the land claim agreements.

So I just say, whether or not legally you actually have to reopen it, I think there would have to be an enormous amount of negotiation and all parties would have to agree. The question is whether they would agree or not. I can't answer that. I did have some discussions with various aboriginal communities in the course of my review. My own perception was that some of them were receptive to looking at that aspect, because they felt there was a problem, there were some difficulties with the regulatory system, and if it took reopening them for that purpose they were prepared to do that. I know some are dead against it, and I was told that face to face by a number of parties: just don't go there.

My comment to the minister when I prepared the report and presented it to him was that it would be difficult, perhaps impossible...I don't think so, but it would be difficult. But if there isn't an attempt made to restructure today, there are at least three and perhaps more land claim agreements that still have to be completed in the north, as you know--the Tlicho, Dehcho, and the Métis--and some of those may split into two to three claims. We will have maybe 30 regulatory bodies in the Mackenzie Valley when those are completed, if they're completed on the same basis as the earlier land claim agreements. In other words, this is going to grow, and 10 years from now we'll sit around this table and say, why didn't we at least start, when we had only 17, because now it's an impossible situation.

So the long answer to your question is yes, it will be very difficult. I don't think it's impossible. I would urge the federal government to consider it at this stage, before it gets to the point where it is impossible, and there will then have to be a reopening to restructure in some fashion.

9:20 a.m.

Liberal

Larry Bagnell Liberal Yukon, YT

I don't think it's impossible to open them. The problem is that all three parties to the claims--the territorial, federal and first nation governments--all want to open them. Once they're opened, it's like opening Pandora's box. It's the same reason we won't have constitutional talks in Canada, because everybody wants everything. It would be a nightmare, because it would be starting the 30 years all over again, basically. That's the problem with opening them.

I have another question. You were talking about a final decision-maker and a board. That would not be for final decisions on the regulatory permits and project go-aheads and everything, which are still under the auspices of government and ministers, either territorially or federally, would it?

9:20 a.m.

As an Individual

Neil McCrank

The answer to your second question is yes, it would be. There are regulatory bodies throughout this country that make those decisions on behalf of governments, as a delegate of government. If the government doesn't like what they do, they remove the board or change the board and put in a new group.

But that's the quasi-judicial independence, that you separate the political--in a regulatory system, which is what I'm talking about--from the mechanical, professional components associated with the regulatory body. But the answer is yes, it would be.

9:20 a.m.

Liberal

Larry Bagnell Liberal Yukon, YT

How is that received by the industry? In the past I've heard there's quite a hesitation to having unelected bureaucrats make decisions on their projects. At least if a politician makes it, they can throw him out

9:20 a.m.

As an Individual

Neil McCrank

Well, you're right. Industry would prefer to be able to use the political clout on all decisions that come in front of any regulatory body. In my view, that's the mistake that is made when they allow this. It should be made on a professional basis without politics involved. There were those who objected from industry. Right from the beginning, I was criticized, from my point of view, because I come from Alberta, where there's a suggestion that the Alberta system is not the way to go. Alberta has had some degree of success in developing its resources, and it is based on a process of independent decision-making.

9:20 a.m.

Liberal

Larry Bagnell Liberal Yukon, YT

I have just one last quick question because my time is almost up.

On the land use claim, I don't know about the other two territories, but in the Yukon that's a function of the Yukon government. Although it's your recommendation, federally we don't have any control over it, or hardly any control over it. Is that the same situation in the other two territories?

9:20 a.m.

As an Individual

Neil McCrank

In the Northwest Territories, for instance, in some of the agreements, there is a land use planning component that has not been fulfilled yet, and it is a responsibility, in my view, of the federal government to ensure that takes place. The devolution that occurred in the Yukon has allowed for that. In the Northwest Territories, the federal government still has a very big role in it.

9:20 a.m.

Liberal

Larry Bagnell Liberal Yukon, YT

Thank you.

9:20 a.m.

Conservative

The Chair Conservative Bruce Stanton

Thank you, Mr. Bagnell.

Mr. McCrank, do you need translation for the French language?

9:20 a.m.

As an Individual

9:20 a.m.

Conservative

The Chair Conservative Bruce Stanton

So if you're all set to go there, we'll go to our next question.

Thank you very much. Mr. Lemay will ask the second question.

You have seven minutes, Mr. Lemay.

9:25 a.m.

As an Individual

Neil McCrank

Can you hold for just a second to make sure this thing is working.

9:25 a.m.

Conservative

The Chair Conservative Bruce Stanton

We won't take your time.

9:25 a.m.

Bloc

Marc Lemay Bloc Abitibi—Témiscamingue, QC

Take your time, you were born in Val-d'Or, so the important thing is that...

He's from the Abitibi region.

9:25 a.m.

Conservative

The Chair Conservative Bruce Stanton

It's channel number one, Mr. McCrank.

9:25 a.m.

Bloc

Marc Lemay Bloc Abitibi—Témiscamingue, QC

He's got to be a nice guy if he was born in Abitibi.

9:25 a.m.

As an Individual

Neil McCrank

Yes, okay.

9:25 a.m.

Bloc

Marc Lemay Bloc Abitibi—Témiscamingue, QC

Welcome, Mr. McCrank. I read your report attentively. Allow me to read a sentence from the cabinet directive, which resulted in your being designated as the author of the report. Here it is:

It will improve timeliness by focusing resources on larger, more significant regulatory proposals, hold the Government to account by establishing service standards, and create pressure for continual improvement through periodic reviews, all while ensuring that the safety of Canadians is protected.

When I read the first sentence of the guide to your project, I found it interesting. However, you conducted an analysis, and I respect the work that you did. You noted that there are 17 regulatory bodies and you made recommendations that I will not read, but they can be found on pages 41 and following. The government, in its response of March 12, 2009 — it took 10 months to respond, since you tabled this report one year ago, that is, on May 20, 2008 — states the following:

Extensive restructuring is not required at this time, but targeted changes are needed to ensure the system operates as intended.

So did you do all this for nothing?

9:25 a.m.

As an Individual

Neil McCrank

I hope not. Let me just make sure I understand the question. The question relates to the cabinet directive that was the foundation for my report, and it did come out in May, although it came out publicly in July 2008. You are referring to a response by the Northwest Territories government. Am I correct?

9:25 a.m.

Bloc

Marc Lemay Bloc Abitibi—Témiscamingue, QC

Yes.

9:25 a.m.

As an Individual

Neil McCrank

Yes, and not the federal government. The federal government has not made their response yet to my report. I reread the response to my report from the Northwest Territories government last night. They have adopted almost all of the recommendations, the 22 specific recommendations that I made, as I say, which were made before. On the restructuring, they are saying they don't need the restructuring at this time, if you read it carefully. They say they need more time to see whether the current boards will actually work.