Natural Resources Committee on May 4th, 2017

[Cheri Crosby]

One of the roles we play at NRCan is that we manage the accords related to these statutory obligations, and in managing them we do things like forecasting and monitoring. We're looking at the price of oil; we're looking at the fluctuations of production and making predictions. It's not simply a flow through. We also play a role in managing and monitoring the trends, creating reports, and so on. I'd be happy to speak more about that if you wish.

[John McKay, Liberal, Scarborough—Guildwood, ON]

All right. It's exceedingly tedious, I agree.

My second question has to do with contributions in support of transportation and alternative fuels. It was 180,000 bucks in 2015-16, with the expenditures, then it drops to zero in 2016-17, and then it bumps up to $10.9 million. If you could give me an explanation of that variation, that would be of interest, at least to me. It may not be of great interest to the committee, but to me it's interesting.

[Cheri Crosby]

Tab 19.

[John McKay, Liberal, Scarborough—Guildwood, ON]

It's right in the middle of contributions.

[Cheri Crosby]

Yes.

I could perhaps start us off, and then you could stop me if I get too much into the weeds.

On transportation and alternative fuels, budget 2016 committed a total of $62.5 million to support things like electric vehicles, alternative fuel infrastructure, and so forth. This year, $10.9 million—which is what you have alluded to—of the $60.4 million in total will be invested in things like 80 new charging units for electric vehicles, as well as nine natural gas and three hydrogen fuelling stations along several key transportation corridors.

[John McKay, Liberal, Scarborough—Guildwood, ON]

Okay, so that's brand new, then?

[Cheri Crosby]

Yes, it is.

[John McKay, Liberal, Scarborough—Guildwood, ON]

Okay, so that's why there's no history in the main estimates in the previous expenditures.

[Cheri Crosby]

Exactly. Yes.

[John McKay, Liberal, Scarborough—Guildwood, ON]

Okay, I get it.

Thank you, Chair.

[The Chair, Liberal, James Maloney]

Mr. Doherty.

[Todd Doherty, Conservative, Cariboo—Prince George, BC]

Thank you to the officials for being here today.

In the departmental plan for Natural Resources Canada, under “Investment in Natural Resource Sectors”, you have stated that your department's target is that five-year average growth of the energy sector's capital expenditures be equal to or greater than the past five-year average. Under energy sector capital expenditures, your numbers show that in year 2013-14, capital expenditure growth for the energy sector was 16.6%. In 2015-16, capital expenditure growth was -1% for the energy sector.

To what does your department attribute the downturn in capital expenditures in the energy sector?

[Christyne Tremblay]

I will say that this year, in the budget, the department put a lot of money into the energy sector to help it to go cleaner, to develop and support the industry—

[Todd Doherty, Conservative, Cariboo—Prince George, BC]

That's not the question I'm asking, though. I'm sorry, that's not the question I'm asking. What does your department attribute the downturn in capital expenditures in the energy sector to?

[Cheri Crosby]

Maybe I can ask a question. Are you referring to something you're specifically seeing in the main estimates?

[Todd Doherty, Conservative, Cariboo—Prince George, BC]

Absolutely. Under energy sector capital expenditures, your numbers show that in the year 2013-14, capital expenditure growth for the energy sector was 16.6%. In 2015-16, the growth in capital expenditures was -1% for the energy sector.

All right, how about we do this? How about we leave that with you and you can come back to us with that? Is that all right?

[Cheri Crosby]

Yes, my apologies.

[Todd Doherty, Conservative, Cariboo—Prince George, BC]

Perfect.

Have you studied the impact that a carbon tax would have on the competitiveness of Canada's energy and mining sector, and the impact it would have on future capital expenditures?

[Christyne Tremblay]

Yes, for sure. We are very concerned about the impact of carbon pricing.

[Todd Doherty, Conservative, Cariboo—Prince George, BC]

Okay. You've studied it?

[Christyne Tremblay]

It's why we're doing a study with the finance department, and it's why we are also conducting a consultation with the industry. It's something that we're doing right now.

[Todd Doherty, Conservative, Cariboo—Prince George, BC]

But with all due respect—

[John McKay, Liberal, Scarborough—Guildwood, ON]

I have a point of order.

With great respect, Mr. Doherty, these are officials. They're here to answer questions with respect to the main estimates. The question is a good question. It's a relevant question, but it's a relevant question for the minister. It's not a relevant question for the—

[Todd Doherty, Conservative, Cariboo—Prince George, BC]

Mr. Chair, with all due respect, it's a relevant question to the department. That's what they're here for.

[John McKay, Liberal, Scarborough—Guildwood, ON]

[Inaudible—Editor].