Thank you very much. It is indeed my pleasure to be here. I applaud the committee for its examination and work on this critically important issue.
There are about four major points that I want to make. The first one is the issue of why we care about Arctic sovereignty and security. The issue, of course, has reappeared before successive Canadian governments since...well, Confederation, to be honest. We are facing an Arctic that is in massive transformation. It is in transformation all the way from the physical component to the cultural and livelihood element, to economics, and to geopolitics. It is virtually impossible to find another region of the world that is engaged in such a degree of change, literally before our eyes. The critical issue, however, when we consider Arctic sovereignty and the growing necessity for Canada to take this even more seriously than it has in the past, is accessibility.
One of the critical points about the changing nature of the Arctic is that there is both the perception and the reality that it is becoming more accessible. Countries as far away as South Korea have now become major players on the commercial side for the development of industry in the Arctic region. Countries such as China have an advanced Arctic research program. Indeed, China has one of the world's largest Arctic scientific vessels; in fact, it is larger than any ship we have in the Canadian navy. We have before us today an issue in dealing with the climate change that is making it accessible.
If that were not enough, we also have the recognition that the Arctic is probably the last major source of undiscovered resources for the world. The U.S. Geological Survey has conducted a series of studies that has led it to make the estimation that 30% of all undiscovered natural gas is in the Arctic region and up to 13% and possibly more of all undiscovered oil reserves in the world is also there. The Russians are about to complete the development of a gas field in the Stockman offshore region that will be the third-largest gas-producing sector in the world. In Canada, we have already moved from being a zero producer of diamonds to being the third-largest producer of diamonds, on the basis of three mines in the Canadian Arctic. In other words, it is indeed a treasure trove.
The third element of transition that makes it so critical for Canada also is that we have a changing northern population. One of the factors that most Canadians are unaware of is that the Canadian Arctic contains the youngest population of all regions. As such, it has some of the most challenging and difficult social and educational issues of this country.
As the world starts to come to the Arctic, the issue of how we actually enforce security and sovereignty in this region becomes critical.
The last point, and this is the one I really want to focus on, is the changing nature of the geopolitical circumstance. We have had a tendency in Canada to look at the last 15 years of cooperation and basically non-activity in the circumpolar north—with one or two important exceptions, such as the Arctic Council—and say that things will continue into the future. I am here to tell you today that there are in fact indicators that this geopolitical certainty is becoming questionable.
First and foremost, through the impact of the United Nations Convention on the Law of the Sea we are seeing boundaries being revisited and redrawn as we speak. They pertain primarily to the continental shelf, and we can see possibilities of disputes coming into the forefront with the United States and Russia, and possibly Denmark.
We see some efforts to ensure that these disputes are resolved in a peaceful manner, but we are also seeing indications of other types of disputes over boundaries. The Europeans, in a recent document, have let Canada know that Europe is going to be taking the American position on the status of the Northwest Passage. We do indeed, despite what I know some of your preceding witnesses have said, have a sovereignty issue developing regarding the Northwest Passage.
We also have a coming boundary issue involving the Beaufort Sea. The Americans are about to release a report in which they call for a moratorium on all Arctic fishing within the region that they believe to be their waters, and there is a very definitive overlap with regard to the Beaufort Sea.
There is a more troubling issue, however, from a geopolitical perspective, and that is that if we look at both the policies and the current armament programs of our circumpolar neighbours, since 2004 we have seen a growing flurry of policy statements from all of the Arctic nations, as well as several non-Arctic states, as they begin to revisit their own Arctic security policies. Norway, Russia, and the United States are increasingly taking a unilateral approach to how they perceive their Arctic security.
Beyond simply documents, beyond simply saying it in paper form, all three of those countries have also reinstituted rearmament programs that will touch on the Arctic. I've made available for the committee a brief summary of some of those developments. The Norwegians are now about to redevelop their military with an extremely capable war-fighting, albeit small, northern capability. In November they signed a contract with the Americans to buy the 48 F-35s. They have also figured out how to put an Aegis combat system on a frigate, the first nation in the world to figure out how to do that on such a small capability. The Russians are both rearming their submarine force and engaged upon a program of rebuilding aircraft carrier capability, of which they say the majority, if not all, will be deployed in Arctic waters.
No one is at this point suggesting that we are resuming the bad days of the Cold War, but one does not have to be a rocket scientist to put together undetermined boundaries, the promise of great wealth, and the rearming—to a limited but nevertheless vigorous capability—of the major powers of the international system and to recognize from a historical perspective that usually when you mix those factors together, the international system tends to have difficulties in the area of cooperation.
Ultimately, Canada is facing a new Arctic. It is an Arctic that we can perhaps try to ensure becomes cooperative. Perhaps we can ensure that these new developments are marshalled in ways that provide for the proper security of the region, but that, if mishandled, could in fact hearken back to some of the more difficult times of the 1980s.
What, in conclusion, would I suggest that Canada has to be focused on and aware of? First and foremost, Canada has to make sure that its instrumentation is first-class. What do I mean by “instrumentation”? I mean that our surveillance and enforcement capabilities are equally as strong as those of our circumpolar neighbours. Even if we are able to mitigate some of the harsher edges of some of the disputes, we will need these forces to know who is coming into the Arctic, and we will need to have these forces to ensure that Canadian laws and regulations are enforced. The Arctic will remain a harsh environment, and to talk about anything but the best capabilities is simply to set ourselves up for failure in the long term.
We also have to ensure that our decision-making processes are geared to the Arctic. If any region of Canadian policy requires an all-of-Canada approach, it is the Arctic. DND cannot do it alone; DFAIT cannot do it alone; the coast guard cannot do it alone. They all must work together. In my estimation, the issue is one in which the government has to be, at its most senior levels, made cognitive and, quite frankly, to bump heads together.
I am often asked whether the icebreaker should be coast guard or navy. Quite frankly, I don't care. My attitude is, paint them pink instead of worrying about whether it will have a red or a grey hull, but we need that type of capability in the Arctic region.
Lastly, it is a time for Canada to not only have this capability, which of course many will characterize as unilateral, but we also have to take a leadership role on the circumpolar nature.
To a certain degree, the Norwegians provide us with an interesting model. They're doing everything possible to try to engage the Russians in cooperative efforts, but they are indeed arming themselves with a very robust war-fighting capability if things indeed do get worse in the long term.
So I leave you with this thought. The Arctic is transforming; the world is going to be coming to the Arctic. That is abundantly clear. We need to ensure that when in fact the world does start arriving in numbers in the Canadian Arctic, Canadian values, Canadian interests, Canadian security, and Canadian prosperity are protected.
Thank you very much.