Natural Resources Committee on April 10th, 2014

[Joan Crockatt, Conservative, Calgary Centre, AB]

Okay. Can you tell us if you think that the U.S. is on the verge of contravening NAFTA by curtailing the Canadian market access to the U.S. and not allowing Canadians to have the benefit of access to that market?

[Peter Howard]

I suppose that could become a challenge if in fact the pipeline is disallowed.

But as it stands right now, it's basically in the President's hands, and since he hasn't said yes or no to the pipeline, a NAFTA challenge really isn't relevant right now.

[Joan Crockatt, Conservative, Calgary Centre, AB]

Okay.

Mr. Van der Put, thank you very much for being here. I'm from Calgary. There's a huge presence of TransCanada there, of course.

I wonder if you could tell us, what do you consider to be the major impediment at the moment, if you do see any, to proceeding with your project and realizing the gains and benefits for Canadians?

[John Van der Put]

As I mentioned, there's broad support for the energy east pipeline project across the country. We know that from the polling we do but more specifically from just talking to people.

As I mentioned, the public information sessions that we conducted last year, that we are conducting right now, give us the opportunity to talk one on one with people and find out what they are concerned about. What we find is that in the vast majority of cases we're able to address their concerns, fully answer their questions.

Oftentimes, as I mentioned, there's value and we benefit from those discussions, as well, because we learn things that we can use to improve our project, actually. There are many examples that I can point to where we made specific changes to our pipeline route, to various aspects of our project, once we had taken people's comments and suggestions into consideration.

From my perspective, there are always questions, but we have answers to those questions and we're working through it in that fashion.

[Joan Crockatt, Conservative, Calgary Centre, AB]

Are there specific benefits to groups like aboriginals that you might be able to point to, or can you bring it down to the level of how you think this pipeline will specifically benefit? Is there any particular group that you have been surprised by or the public might be surprised to know of?

[John Van der Put]

First nations and Métis, are quite a significant component of our stakeholder engagement program. There are about 150 first nations along the pipeline route that are interested in this project and we have discussions with all of those. Some of the specific benefits for some of those, certainly, are employment opportunities.

There are a lot of aboriginal enterprises that in fact either are currently or can become qualified to contribute to the construction of a project like this.

There are also business opportunities. We are in discussion with some first nations in Ontario about specific business opportunities.

So in terms of aboriginal groups, there are a lot of opportunities, as there are in all of the communities along the way.

I've been at this for a while. I wouldn't say that I've been surprised with regard to any of the specific benefits. They are significant and we're leveraging them.

[Joan Crockatt, Conservative, Calgary Centre, AB]

Can you give any one example?

Is my time up?

[The Chair, Conservative, Leon Benoit]

Your time is up, Ms. Crockatt.

We go now to Monsieur Labelle for up to five minutes.

[Pierre Dionne Labelle, NDP, Rivière-du-Nord, QC]

Thank you, Mr. Chair.

My first question is for Mr. Howard, of the Canadian Energy Research Institute.

On Tuesday, former Prime Minister Brian Mulroney called on Canada to adopt a national energy strategy based on three criteria, partnership with first nations, a realistic plan to reduce carbon emissions and a coherent plan to ensure enough Canadian skilled labour in the sector.

What are your thoughts on the former prime minister's suggestions?

[Peter Howard]

Sorry. I'm not familiar with the speech he actually gave. What I can suggest to you is here in Alberta the relationship between the industry and the first nations is imbedded in our regulatory process now so that a consultation process takes place, and I think that's a good thing.

[Pierre Dionne Labelle, NDP, Rivière-du-Nord, QC]

Thank you.

My second question is for the chief executive officer of 3twenty Modular.

Have you received any government grants?

[Bryan McCrea]

We have received no grants. We've been successful in attracting some IRAP funding. We've utilized the SR and ED tax credit program, but we have not received any other grants.

[Pierre Dionne Labelle, NDP, Rivière-du-Nord, QC]

An international ratings system exists for excellence in building construction known as Leadership in Energy and Environmental Design or LEED. Do you plan to obtain LEED certification?

[Bryan McCrea]

Our buildings are not LEED certified. We can build to LEED certification should a client require it.

[Pierre Dionne Labelle, NDP, Rivière-du-Nord, QC]

Very well.

Do you plan to move towards LEED-certified construction?

[Bryan McCrea]

I certainly believe there is a trend to building with green components. For example, I think we're one of the only modular manufacturers that spray-foam insulates their structures, so we have a much more efficient building envelope than traditional builds. Our clients are really attracted to that. I see that there's a trend to it, and I believe at some point we will design and build LEED-certified buildings when our clients require us to.

[The Chair, Conservative, Leon Benoit]

We have a point of order.

Mr. Leef.

[Ryan Leef, Conservative, Yukon, YT]

Mr. Chair, I gather you know what direction I'm going in with this one. It's probably a good time to remind us that we're here to study the cross-country benefits, and on the last four questions we haven't heard any tie-in to that.

[The Chair, Conservative, Leon Benoit]

Thank you, Mr. Leef. I appreciate that. I was about to bring that up.

Just tie your questions into our topic of the day.

[Pierre Dionne Labelle, NDP, Rivière-du-Nord, QC]

Fine, Mr. Chair.

[The Chair, Conservative, Leon Benoit]

Mr. Regan, on the point of order.

[Geoff Regan, Liberal, Halifax West, NS]

Mr. Chair, you did allow questions relating to what's happening in the U.S., which is a bit of a stretch from where we are, so it seems to me that some leeway should be permitted.

[The Chair, Conservative, Leon Benoit]

Yes, as long as he ties the question or comment in with the topic of the day. That's all I ask.

Go ahead, please, Monsieur Labelle.

[Pierre Dionne Labelle, NDP, Rivière-du-Nord, QC]

Thank you, Mr. Chair.

In that case, my question will be for the TransCanada PipeLines Limited representative.

On page 15 of the report you gave us, I see it says that during the operations phase, the project is expected to generate a total of $7.2 billion in tax revenue from all sources, which represents $180 million annually. Could you give us the details on that tax revenue? Where does the $180 million a year come from?

[John Van der Put]

It comes from all taxes on revenue, property and excise taxes, all the various taxes. I could provide you with more information on the breakdown of the taxes later.