moved:
WHEREAS section 43 of the Constitution Act, 1982 provides that an amendment to the Constitution of Canada may be made by proclamation issued by the Governor General under the Great Seal of Canada where so authorized by resolutions of the Senate and House of Commons and of the legislative assembly of each province to which the amendment applies;
NOW THEREFORE the House of Commons resolves that an amendment to the Constitution of Canada be authorized to be made by proclamation issued by His Excellency the Governor General under the Great Seal of Canada in accordance with the schedule hereto.
- The Schedule to the Prince Edward Island Terms of Union is amended by adding thereto, after the portion that reads
"And such other charges as may be incident to, and connected with, the services which by the "British North America Act, 1867" appertain to the General Government, and as are or may be allowed to the other Provinces;"
the following:
"That a fixed crossing joining the Island to the mainland may be substituted for the steam service referred to in this Schedule;
That, for greater certainty, nothing in this Schedule prevents the imposition of tolls for the use of such a fixed crossing between the Island and the mainland, or the private operation of such a crossing."
Citation
- This Amendment may be cited as the Constitution Amendment, 1993 (Prince Edward Island).
Mr. Speaker, I am happy that you have read a fair portion of the amendment which we intend to discuss today. The amendment is very specific with regard to the terms of reference between Canada and Prince Edward Island.
I apprise the new Speaker, who has just taken his place in the chair, that this is a very specific amendment. Therefore I would hope that comments all hon. members make have some relevance to the subject matter which we are dealing with and not the broad general topic of constitutional reform.
One hundred and thirty years ago the Fathers of Confederation gathered in Prince Edward Island and created the concept of Canada. Thanks to their genius Canada has flourished throughout the 20th century. Today Prince Edward Island seeks a small but significant amendment to its terms of union with Canada. This improvement will create the opportunity for our smallest province to take its rightful place in the 21st century.
On behalf of the Government of Canada I am honoured to place before the House of Commons a formal resolution to amend the terms of union between the Government of Canada and Prince Edward Island which I am certain all members of this House will want to support in the deliberations to follow.
The amendment, albeit short and straightforward, is important for Prince Edward Island, important for the entire Atlantic region and important for Canada.
The proposed amendment provides the necessary constitutional framework for the replacement of the ferry service between Prince Edward Island and New Brunswick by a bridge across the Northumberland Strait. More significantly, the amendment provides a bridge for the future.
The fixed crossing will allow Prince Edward Island to become a full partner in Canada's economy. The fixed crossing will spur Atlantic Canada's economy in the short term and create real hope for viable long term economic growth.
Construction of the 13 kilometre concrete bridge means new skills, new technology, new jobs, new enthusiasm and new prospects for the future.
The amendment before Parliament today will allow a project to proceed which is fiscally sound and financially responsible, a project which represents thoughtful public transportation policy, a project which sets new standards for environmental review, assessment and management.
The federal government is bound by the 1873 terms of union with Prince Edward Island to provide continuous communications between the island and the mainland.
Since Confederation this obligation has been fulfilled by a ferry service. The province of Prince Edward Island now wishes to strengthen, modernize and improve dramatically the means by which the island is linked continuously with mainland Canada.
For that reason the federal government and the Government of Prince Edward Island signed an agreement committing the two governments to make the necessary constitutional change to permit the ferry service to be replaced by a bridge.
The amendment before us today is the last in a series of legislative steps required to enable Prince Edward Island to make that move forward. In the spring of 1993 Parliament debated and then passed Bill C-110, an act respecting the Northumberland Strait crossing.
I would be remiss in my opening remarks if I did not pay tribute to those members of my own caucus who participated in that debate and on previous occasion whereby the House deemed it appropriate to pass Bill C-110.
I want to congratulate all members, some who are present, some who are opposite, who participated in that debate. I wish to thank them sincerely.
In June 1993 the Prince Edward Island legislature passed a resolution authorizing this amendment. In October an agreement was signed by the federal government and Strait Crossing Development Inc. to begin construction of a bridge linking Prince Edward Island to mainland Canada.
The agreement is an innovative, prudent and intelligent approach to the building of public infrastructure. The agreement breaks new ground in government-private sector partnerships. Investment of taxpayers' dollars is limited but also protected.
The people of Canada will not be responsible for footing the bill for delays or cost overruns relating to this initiative. The total contribution of the Government of Canada will consist of 35 subsidy payments to the private sector development. The payments will be made annually at a cost of $42 million indexed to inflation.
This formula effectively caps the cost and limits to 35 years the financial responsibilities of the Government of Canada to meet its constitutional obligation to the people of Prince Edward Island.
By contrast, pursuing the option of the ferry service indefinitely would subject the taxpayer to undue and unexpected cost without any reprieve in sight. As was made crystal clear by the Prime Minister both in our election red book and in the recent speech from the throne, the government's number one priority is job creation. The fixed link and this particular initiative will do that. It will create jobs.
Under the terms of the agreement, 96 per cent of bridge construction jobs will be filled by Atlantic Canadians. In total over 3,500 jobs will be created in the three and a half year construction period. Further, at least 2,000 indirect jobs will be created as a result of spin-offs. That addresses clearly and unequivocally the government's intent with regard to its priority of job creation.
The contracts also specify that 70 per cent of the total procurement requirements will be provided by Atlantic Canadians. Given the size and complexity of the undertaking, extensive spin-offs will offer Atlantic Canadians the chance to develop new construction, management and environmental protection skills.
What is most encouraging is that the economic benefits will continue to flow long into the future. The tourism industry estimates that once the bridge is in operation, the number of people visiting P.E.I. will increase approximately 25 per cent. It will open up new opportunities for even more employment in the vitally important hospitality industry of that province and other provinces as well.
The Prince Edward Island trucking industry will benefit to the tune of some $10 million each year in time savings alone. Mr. Speaker, you are very wise and very learned. I have no doubt you are probably a very well travelled individual. If you have taken or perhaps would like to take a trip in the immediate future to Prince Edward Island, you would quickly understand why the trucking association is so much in favour of this initiative. It will decrease the time you will be parked at the ferry side waiting for the boat to transport you to the other side. Not only is it time saving but it is also an economic saving which will
enhance opportunities and provide many spin-offs for that sector of our economy.
The bridge will provide much greater certainty and reliability of delivery for P.E.I.'s farmers and fishermen. There will be new possibilities of growth for the province's processing and manufacturing industries.
P.E.I.'s businesses will be able to improve their bottom lines. An improved competitive position for the island's economy means an improved future for the young people of the island. I am certain all members of the House regardless of political ideology will want to support that enthusiastically.
Not surprisingly, over the years since the idea of a fixed link was first advanced, support has grown to the point where today over 70 per cent of islanders are in favour of the bridge. I do not mean the people from Cape Breton Island, I mean the people from Prince Edward Island. I wish to make that very clear.
The bridge is an exciting project for Prince Edward Island and Atlantic Canada. I know that some people still have concerns. I want to do my best to address some of the concerns this morning and perhaps respond to questions that hon. members might have.
I would like to take this opportunity to reaffirm the commitments enshrined in a tripartite agreement made with the provinces of New Brunswick, Prince Edward Island and the Government of Canada.
The ferry workers who will lose their jobs in June 1997 as a result of the ferry closures will be treated fairly. They will have first choice of employment on bridge operation and maintenance. A fair severance package will be negotiated on top of the provisions of the workers' current contract. We will work closely with ferry employees to find retraining opportunities for jobs in many sectors of the local economy which will benefit from the presence of the new bridge.
Fishermen affected by the construction activities in specific areas of the Northumberland Strait will be compensated for lost opportunity. As part of this particular deal the developer has set aside a $10 million trust fund to be administered according to a plan developed mostly by fishermen themselves.
I also want to reaffirm the commitment to provide financial assistance through another agency which I happen to be responsible for, the Atlantic Canada Opportunities Agency, for sound business initiatives in order to help the communities of Prince Edward Island and New Brunswick in the coming months and years. We will take the appropriate measures to help the affected individuals and communities because it is the fair and just thing to do. I cannot stress too strongly that the overall effect of the bridge will be many immediate and long-term benefits. The bridge will contribute to an increasingly dynamic economy for those of us who reside in Atlantic Canada. In fact, the project constitutes a good deal, not only for the people of Prince Edward Island, not only for the people of Atlantic Canada but, I dare to suggest in the House of Commons, for the people of Canada.
In drawing up this agreement the public servants of my department have done a commendable job of ensuring that the taxpayers are protected from any unexpected, unnecessary or unwarranted costs. All of the risks have been assumed by the developer, including financing, design, construction, maintenance and operation.
I know some people, perhaps in this House, have expressed concerns that the ultimate owners of two of the development partners are not Canadian. But I am satisfied that this is essentially a Canadian undertaking whose benefits will largely accrue to the people of this country. It is true that Northern Construction Company and the GTMI company are Canadian subsidiaries of foreign firms, but both subsidiaries have been operating actively in Canada for in excess of 30 years.
I wonder if those critics-and I do not suggest for a moment that they are here on the floor of the House of Commons-wherever they may be, would seriously suggest stopping as it would be rather ridiculous if we were to say to GM, Ford and Chrysler: "Because you operate a subsidiary in Canada, in Ontario, you should not be allowed to operate because your parent company is a foreign one". That would be intellectually dishonest. We are in a globally competitive world. I know members opposite would want to agree with my conclusion that this is important for Atlantic Canadians and important for Canada as a whole.
Furthermore, this particular developer should be complimented for assembling world class technical expertise. The truth is that the proponent of the fixed link, Strait Crossing Development, is a 100 per cent Canadian owned company which happens to be headquartered in Calgary, Alberta. Who will benefit most from the project? The answer clearly is the citizens of Canada.
The developer was required to have all the project costs in trust at the time of closing, plus a 10 per cent contingency until substantial completion of the bridge has taken place. The developer has posted a $200 million performance bond as well as a $35 million compliance bond and a $20 million labour and material bond. All these are supported by guarantees with the parent companies. The deal was struck in such a way that the parent companies are providing the necessary financial backing to the developer.
I want to emphasize that the developer and not the Canadian taxpayers will be fully liable for cost overruns. If the project is not completed by May 31, 1997, the developer must pay the cost of operating the ferry service until the bridge is ready. Once the bridge is in operation the developer must operate and maintain it to the satisfaction of the federal government before having access to the revenues from the tolls.
The cost for crossing the bridge will be comparable to that of the current ferry service. Over the next 35 years these tolls will not be increased in any year by more than three-quarters of the annual rate of inflation. Through these and other provisions the government has made every effort to ensure that taxpayers are properly protected before, during and after construction.
Similarly, I want to make an honest effort to answer all fair minded questions and reservations raised by Canadians about the fixed link. In that spirit I would like to comment on the question of the possible environmental effects of this project.
This issue has been raised throughout the past five years, 60 months. I know it has concerned a number of members of the House. I do not intend to detail all the environmental studies and expert reviews that were undertaken except to say that there were in excess of 100 studies, most of them very comprehensive.
I was going to seek the indulgence of the House and bring before it the six feet of studies that have been undertaken with regard to this project but I thought it would be rather cumbersome to do so. It would be rather costly for the Government of Canada, particularly the House of Commons, to have reprinted in Hansard each and every word of all of those studies.
As you know, Mr. Speaker, from your study of the transcripts of this debate at another time, I placed before the House a number of studies. I refer to them not in totality but in summary fashion, bringing to the attention of the House just how important those studies were in answering a number of environmental concerns.
Today I am tabling with the permission of the House a list of all of the studies which have been done, both in French and English. If members wish to refer to them I am certain my department can make these studies readily available so they can examine them, study them at night, take them home on the weekend and review them, maybe get an independent study by their particular political party or their particular group. Then we could hear back from them in the months and years ahead on whether the studies, which number in total 100, were appropriate.
I wish to have the consent of the House to table these two documents if members wish to refer to them at a later time.