Indigenous and Northern Affairs Committee on March 30th, 2015

Thank you, Mr. Chair. I thank the drummers as well for their welcome.

Mr. Chair, we're here today to convey our support for the passage of Bill S-6 as it pertains to the proposed amendments to the Yukon Environmental and Socio-economic Assessment Act, YESAA. We believe that after this bill is passed, there is work to be done here in the territory among first nations and the Yukon government.

As you will no doubt hear today, Yukoners are proud capable people. We like to resolve our own issues as much as possible. We like to work things out Yukoner to Yukoner, government to government. Today I hope we can broaden your appreciation of the Government of Yukon's perspective regarding the benefits of amending this act. I hope to share with you a path forward that I believe advances all interests.

Last year marked 10 years since the devolution of responsibility for lands and resources from the Government of Canada to the Government of Yukon. Devolution, or evolution as I like to call it, marked a turning point in Yukon's modern history. In that pivotal moment, we set out on a road to self-determination and managing our own resources.

The benefits of devolution are tremendous. In our view, what is good for Yukon is good for Canada. When the Yukon Act came into effect on April 1, 2003, Yukon gained law-making authority with respect to the vast majority of our natural resources. This has enabled us to develop sustainable management regimes, working cooperatively with first nations and industry. Since 2003 we've experienced steady prosperity, and private sector contributions to our economy have soared. Our population has increased for the 10th consecutive year.

Over the same period, Yukon's leadership and governance capacity has grown alongside our population. The 20th anniversary of the Umbrella Final Agreement was marked in 2013. The Umbrella Final Agreement, UFA, is a framework for individual Yukon first nations to negotiate their land claim agreements. To date, 11 of Yukon's 14 first nations have modern-day treaties and self-government agreements. This represents almost half of the modern first nation treaties and self-government agreements that exist in the entire country today.

That growth in governance capacity has also informed the modernization of our regulatory regime. For the past 10 years, Yukon has enjoyed a reputation as having one of the most advanced regulatory systems in Canada. Yukon's resource economy has grown since devolution, with the mining and mineral exploration sector continuing to expand and develop.

That said, it is becoming increasingly clear that changes to the legislation before you today are essential in order for Yukon to remain a competitive place to do business.

As you likely know, YESAA is the implementation of chapter 12 of the UFA and the final agreements. Yukoners worked hand in hand for years to create the legislation that came into force on May 13, 2003. Federal, territorial, and first nation partners all play important roles in ensuring that projects undertaken in Yukon are in accordance with the principles that foster economic benefits. Each and every order of government helps appoint the board, acts as a decision body, and informs every assessment. As partners, we ensure protection of the ecological and social systems on which communities, their residents, and societies in general depend.

The proposed amendments to YESAA will, in our view, improve environmental and socio-economic outcomes. Since it came into force, some Yukoners, including some first nations, have expressed concern about the narrow scope of activities that YESAA looked at when considering the possible cumulative effects of projects. These amendments help address those concerns.

Under the proposed legislation, assessors will now consider the socio-economic and environmental effects that are likely to occur from projects, both those that have occurred and those that are going to occur. Taking into account the effects of potential activities is a positive step forward in our environmental stewardship and demonstrates our commitment to Yukon communities.

This act applies throughout Yukon as a single-assessment, neutral process conducted at arm's length from governments. Over the last decade, this process has demonstrated a high level of transparency, with decisions and actions made available to the public through the Yukon online registry system.

However, like most new legislation YESAA requires some, mostly minor, amendments. These mostly minor amendments will enable YESAA to continue to serve our territory well into the future. When Canada pursued amendments to the act, it engaged with the Yukon government, the Council of Yukon First Nations, individual Yukon first nations, and the Yukon Environmental and Socio-economic Assessment Board, YESAB. The changes that have been tabled are a result of the close work of these parties, as was mandated by the YESAA five-year review process.

These changes were also informed by the federal action plan to improve northern regulatory regimes. During the review phase, Canada asked the Government of Yukon to provide input into several amendments that focus on improving the overall efficiency and effectiveness of the assessment regime.

I cannot and I will not speak to first nation views on consultation. To do so would be disrespectful of first nation leaders, who will share or have shared their own views with you. However, I can and I will speak for the Yukon government. In our view the Yukon government was adequately consulted during this phase, and our feedback and our comments were taken into consideration.

Together, these changes stand to benefit Yukon because they focus on the following areas: clarification of roles and responsibilities, cost-effective and efficient processes, and the value and timeliness of the assessment process. It is also essential that Yukon remain competitive with other jurisdictions while aiming to protect and promote the environmental and socio-economic well-being of the territory and its people.

Although in the past YESAA has worked well for Yukoners, we believe these proposed amendments are necessary to remain competitive. The amendments outlined in Bill S-6 update the requirement that only the federal government can fulfill. YESAA is, after all, federal legislation.

It is also important, however, that Yukoners resolve concerns among themselves as far as possible. The last time I met with the chiefs, I was clear that I wanted to focus on those issues that we can control. I stand by that statement, and I think Bill S-6 offers us just such an opportunity.

Yukon government and first nations have a long history of working together to resolve issues that arise from federal actions and legislation. We did it with the devolution transfer agreement and the oil and gas accord. In both of these cases the federal government did its part, and leaders here in Yukon did our part to iron out differences that held up success. We let the federal legislation or action stand and we negotiated bilateral arrangements that made them work for us as Yukoners.

Today I'm proposing that Yukon leaders once again take up that challenge. I have heard and understood the first nations' concerns with these amendments. Let's be leaders in our own house and negotiate a bilateral accord on implementation that resolves these issues. We've done it before and we can do it again. If there are concerns about policy direction, or capacity, or delegation, let's agree on how those functions will be implemented on the ground. Working government to government is not new to us in Yukon; it is our preferred way of doing business.

We appreciate the federal leadership shown on this matter. We would like to thank our member of Parliament Mr. Ryan Leef, our Yukon senator Hon. Daniel Lang, aboriginal affairs and northern development minister, the Honourable Bernard Valcourt, and the former minister, the Honourable John Duncan.

Now is the time to come together as leaders, as chiefs and premier, and as neighbours to find a way to make these amendments work in a way that fits with our values.

In conclusion, Mr. Chair, I believe that the changes Canada has proposed to this legislation will ensure that Yukon continues to be a progressive and responsible place in which to invest and do business and an even better place in which to live, work and play, and to raise a family. I encourage Canada to pass these amendments and would ask the chiefs to sit down as partners in this territory to make our own way.

I thank the committee members for their time. I'm going to ask the Minister of Energy, Mines and Resources to say a few words.

9:15 a.m.

Conservative

The Chair Conservative Blake Richards

Thank you.

I neglected to introduce the two other officials from the Government of Yukon. Perhaps, before your minister provides a couple of remarks, I should introduce him: the Honourable Scott Kent, Minister of Energy, Mines and Resources. We also have on the panel this morning Julie Stinson, the director of the executive council office.

The floor is yours, Minister Kent.

9:15 a.m.

Scott Kent Minister of Energy, Mines and Resources, Government of Yukon

Thank you very much, Mr. Chair.

I too would like to thank the committee for travelling north to Yukon today to hear the concerns of Yukoners with respect to Bill S-6.

The YESAB has some personal connections for me. I was one of the original board members. I actually sat on the executive committee from 2004 to 2007 with, among others, Chief Sidney of the Teslin Tlingit Council, who I understand will appear before you later on this morning.

This legislation is certainly about more than just mining projects, although those get an awful lot of headlines and traction here in the territory. Energy projects, agriculture, forestry, transportation, oil and gas, essentially anything that requires a licence or a permit has to go through the environmental assessment process. I understand that about 220 projects per year are assessed by the board so far at two of the levels: the designated office evaluation and the executive committee screening. We've yet to see a panel review in the territory, but for the most part, the majority get done at that designated office evaluation level.

When it came into effect in the early years, YESAA was widely regarded as one of the most progressive pieces of environmental assessment legislation and process in the country, and a lot of that is owed to the timelines and the certainty that it brought. In more recent years though, the reputation has slipped somewhat, and I think there is an opportunity for us to address the licensing and assessment of these projects in the territory through some of the amendments that are proposed here in Bill S-6 as well as through some of the work the Yukon government is doing with respect to water licensing and the quartz mine licensing.

One of the documents we provided to the committee is the 2013 report of the Yukon Minerals Advisory Board. This is a board of individuals appointed by the Yukon government and involved in the mining industry. They produce an annual report, which we table in the Yukon Legislative Assembly. I'd like to read into the record the conclusion of their report, from the second paragraph on page 7:

In 2013 however, as reflected in this report, YMAB chose to focus on what industry has determined is the key issue negatively impacting the industry; the deterioration in the efficiency and reliability of the assessment and licensing of mining projects in the territory.

It goes on to say:

The system has become more costly, cumbersome and protracted and the Yukon’s mineral industry is developing an increasingly negative image as an attractive investment destination.

It goes on to conclude that paragraph:

There is a clear urgency for the Government of Yukon to act.

Conservative

The Chair Conservative Blake Richards

I'll ask that you wrap up as soon as possible. We're trying to keep on time.

Minister of Energy, Mines and Resources, Government of Yukon

Scott Kent

Absolutely.

Just so we can get to questions, to close that out then, if you turn to page 6 in that report, two of the recommendations are reflected in Bill S-6. These are on the adequacy review timelines for YESAA and the Yukon Water Board, as well as on YESAA reassessment process clarity.

I'll conclude my remarks with that and welcome questions from members of the committee.

Conservative

The Chair Conservative Blake Richards

Thank you very much.

I do apologize, and I will inform everyone that may have to happen on occasion today. I suspect it may happen more often with members than with panellists, but we do have very strict timelines we have to keep so we are able to hear from everyone we possibly can today. I appreciate everyone's understanding and patience with that, and I'll do my best to enable everyone to give their full remarks.

We have about 25 minutes remaining for the panel, so members will have about four minutes each.

We will start with Mr. Bevington.

NDP

Dennis Bevington NDP Northwest Territories, NT

Premier, you talked about the importance of the relationship between the Yukon government and the Yukon first nations governments. My understanding is that some of these very controversial amendments that came forward came from your government to the federal government. Was there a process in which you consulted with the first nations on these amendments prior to submitting them to the federal government?

Premier of Yukon, Government of Yukon

For everything we submitted to the federal government through the five-year review and through the two years subsequent to that during which there was a request based on Canada's action plan to improve northern regulatory regimes, we shared all of our comments with first nations. Any comments we provided to the federal government we also shared with first nations. There was full disclosure as to what our recommendations were.

NDP

Dennis Bevington NDP Northwest Territories, NT

When it comes to making decisions in Yukon, you've made a choice that you would prefer to see binding policy direction from the federal minister to the YESAB. That was one amendment that came forward. I know it was a very controversial amendment in the Northwest Territories as well.

Why would you look at this as something you'd want to put forward at this time?

Premier of Yukon, Government of Yukon

Policy direction ensures a common understanding between the government and the board really to help reduce uncertainty and delays. Policy direction would have to be consistent with YESAA, would have to be consistent with the Umbrella Final Agreement, would have to be consistent with individual land claims and with other Yukon legislation. Policy direction is common in other jurisdictions, and we in fact have the ability to give policy direction now through the Yukon government under the Yukon Waters Act.

Policy direction would only be given, I believe, after consultation with the YESAB. Any policy direction must pertain to the exercise and the performance of board powers, duties and functions. Policy direction cannot change the meaning of the law. It cannot change the assessment process itself. It can't expand or restrict the powers of the board or interfere with active or completed reviews.

NDP

Dennis Bevington NDP Northwest Territories, NT

Thank you. I have one more question I'd like it get in.

In a statement in the legislature, you said, “I stand on the side of ensuring that we have legislation that is consistent with Nunavut, Northwest Territories and the other provinces in this country.”

Don't you feel that the three northern territories are unique in themselves? What was the purpose of that statement? Are you suggesting that somehow Yukon has the same type of arrangements with its first nations as Alberta or that it is in a situation to provide direction in a way similar to the way we would do so in the Northwest Territories?

Premier of Yukon, Government of Yukon

I don't want to make this all about resource extraction and the mining industry, because as Minister Kent mentioned, YESAA is much more than that.

The mining industry is a global industry, and those projects can look anywhere in the world. For us to be attractive, we need to be consistent. We need to have assessment processes that are consistent with those of other jurisdictions. Having those allows us to be competitive, allows us a greater chance of seeing investment dollars come to Yukon. When they do, the millions of dollars invested in our communities result in jobs—

NDP

Dennis Bevington NDP Northwest Territories, NT

Aren't you putting the relationship with mining companies ahead of the relationship with your first nations?

Premier of Yukon, Government of Yukon

That investment—

Conservative

The Chair Conservative Blake Richards

Let me say I'm sorry to both of you, but unfortunately, I have to cut it off there so that we can move to the next member.

We'll move now to Mr. Leef.

Conservative

Ryan Leef Conservative Yukon, YT

Thank you, Premier, Minister, and Ms. Stinson, for joining us this morning. Indeed, thank you to all Yukoners who have come here today to hear a long day's testimony on this important piece of legislation.

Premier, here is a follow-up to Mr. Bevington's question. He was talking about the desire for some level of parity with Canada for the Yukon government in this piece of legislation, and indeed of all Yukoners, that we have some level of equality in the playing field around our development regime. It doesn't necessarily mean, when we're asking for parity, that we're not recognizing that this legislation is unique. In fact, the development of YESAA specifically excluded Yukon's adopting the CEAA regime.

Would you care to continue your comments on how we can retain parity but at the same time retain Yukon's uniqueness with respect to our environmental regime?

Premier of Yukon, Government of Yukon

Thank you, Mr. Leef. The fact that YESAA is a creation out of chapter 12 of the Umbrella Final Agreement really speaks to this as being something that has in fact evolved as a result of the Umbrella Final Agreement and the final agreements and self-government agreements that came subsequent to it. It is the work of first nations, the federal government, and the Yukon government together that has created this process, which is unique.

As we have said many times and as Minister Kent mentioned, when it came out a decade ago it certainly was forward-looking and was embraced by the rest of the country as some of the best legislation out there. Through time we now see, through a five-year review and an assessment of northern regulatory regimes, that there is an opportunity to make it better to allow us to remain consistent with other jurisdictions.

Again, I believe doing so is very important in order to attract investment dollars to our territory. They create opportunities for Yukoners to have jobs and successful businesses and they preserve hope that our kids can stay here in this territory to work and raise their own families.

Conservative

Ryan Leef Conservative Yukon, YT

You spoke in your introductory remarks about devolution and the advancement—you called it evolution—of our northern governance.

I heard in your comments some language around a bilateral accord with Yukon first nations to implement the pieces of this legislation. Can you expand on that for us, please? It's an interesting proposition.

Premier of Yukon, Government of Yukon

That's it exactly. This is federal legislation. What I am encouraging and what I've said is that we support this legislation going forward, but I think there's work we can do in the territory.

As leaders in this territory, we've done it in the past. I use the oil and gas accord and the devolution transfer agreement as examples of how Yukon leaders have sat down and found a way forward based on that legislation. I believe there is the opportunity now for leaders to sit down and find out how, on the ground, we can implement these amendments that would go forward with Bill S-6.