Natural Resources Committee on May 10th, 2012

[David McGuinty, Liberal, Ottawa South, ON]

I'm going to take it from your answers that it's a work in progress and that presently, in terms of the way in which the licences are being issued or in terms of the way in which a creative group like BREA is doing its job, frankly, the 17% target to be reached in the next seven and a half years isn't really being factored in in a meaningful way. It's a work in progress. Environment Canada is trying to help you think it through, but there's nothing implemented.

Can I go to the question then of competitiveness? Madame Fortier, you have talked about competitiveness—

[The Chair, Conservative, Leon Benoit]

Mr. McGuinty, it will have to be a very focused question. Your time is up, but I'll allow a short question.

[David McGuinty, Liberal, Ottawa South, ON]

I have a very quick question on commodity prices. If Canada moves to implement the Prime Minister's promise of pricing carbon emissions at $65 a tonne in the next six years, what kind of bearing will that have on our natural resource exploitation writ large in the north?

[Mimi Fortier]

I think that's a better question to ask the private sector. The fundamental policy that drives our mandate that has been in place for decades is that it's a market-driven process, and the markets respond according to.... In our case, the commodities are geopolitical global commodites, so we respond to that market interest.

[The Chair, Conservative, Leon Benoit]

Thank you, Mr. McGuinty.

Mr. Trost, you have the last three or four minutes.

[Bradley Trost, Conservative, Saskatoon—Humboldt, SK]

Thank you, Mr. Chair.

One of the things we've heard from previous witnesses at this committee, more in reference to hard-rock mining exploration, is their frustration with the regulatory system. They've compared it to places like Newfoundland, where there's one-stop shopping--or that is in the process of being developed--and Greenland, etc. So I was wondering, talking about BREA and some of the other regulatory organizational programs or approaches that are being taken, are you hearing that same frustration from the oil and gas industry in the north? Are they expressing the same frustration about regulatory overlap, uncertainty, etc.?

Yes or no, and elaborate from there, please.

[Michel Chenier]

Thank you for your question. I appreciate the offer to answer yes or no. I guess I'll simply answer yes.

We often hear about barriers to investments surrounding the regulatory process. That was actually one of the drivers to the creation of the BREA initiative--that is, unloading some of the broader issues that were actually asked of specific proponents, for example, asking very broad questions on climate change of one specific well that is proposed is not necessarily fair, in our opinion, so we have off-ramped this to the broader initiative. We have also in our department undertaken a number of consultation processes and a number of initiatives to try to continually improve the regulatory process.

We have very good foundational relationships in the north that have been actually developed by the settlement of modern land claims. Those continue to be our road maps in the north, and have led to the creation of a number of regulatory bodies. Unfortunately, at the same time, they have also led to some complications and some design issues that we're currently discussing with groups, looking for ways to continually improve.

[Bradley Trost, Conservative, Saskatoon—Humboldt, SK]

So I guess in answer to one of my questions in the previous round, this was one of our weaknesses, discouraging people from investing in the north.

[Michel Chenier]

One way to measure or benchmark our relative success is to look at the results of our call for bids. We've had great success recently in terms of attracting industry. You've had some specific numbers to that, so I would say—

[Bradley Trost, Conservative, Saskatoon—Humboldt, SK]

So as we coordinate and streamline regulation to make it clear, simple, and upfront so people have certainty, the market responds positively.

[Michel Chenier]

That's a fair statement, yes.

[The Chair, Conservative, Leon Benoit]

Thank you, Mr. Trost.

Thank you very much to the witnesses: from the Alberta Federation of Labour, Gil McGowan, president, with us by video conference; from the Department of Aboriginal Affairs and Northern Development, Ms. Fortier and Mr. Chenier.

Thank you, everyone, for your questions today.

We'll be back on Tuesday to continue this study on resource development in the north.

The meeting is adjourned.