Mr. Speaker, hon. members, I am pleased to speak before this House today during the debate on the second reading of Bill C-6, to amend the Canada Oil and Gas Operations Act, the Canada Petroleum Resources Act and the National Energy Board Act.
The purpose of this bill is to give the National Energy Board the authority to regulate oil and gas activity in those frontier areas where there are no federal-provincial management agreements.
Specifically the National Energy Board will assume the technical regulatory functions associated with oil and gas drilling and production operations. This involves ensuring that the work is carried out in a way that maximizes resource conservation by ensuring good oilfield practices, protects worker safety and protects our fragile northern and coastal environments.
There are many good reasons behind the transfer of authority to the National Energy Board under this proposed legislation. Since its creation in 1981 the Canadian Oil and Gas Lands Administration, or COGLA, administered and regulated activities on frontier lands on behalf of ministers.
Canada's frontier lands, which encompass land north of 60 and the offshore, fall under federal jurisdictions. The Minister of National Resources shares the responsibility for administering these lands with the Minister of Indian Affairs and Northern Development.
While COGLA served the government well, its role has changed and contracted over the years. Following the conclusion of the agreements with Nova Scotia and Newfoundland regulation of the east coast offshore was delegated to joint offshore boards. Further, it was anticipated that the federal role would continue to diminish with the signing of agreements which would transfer onshore oil and gas responsibilities to the territorial governments.
As a result COGLA was disbanded in 1991. COGLA's technical regulatory responsibilities and many of its staff were assigned to the National Energy Board in Calgary at that time. However, three years later decision making authority still rests with ministers in Ottawa who must approve even minor regulatory decisions. This is a time consuming, complicated and
ineffective process. It is time to act decisively to give the NEB the authority to make decisions to do its job.
Through this bill the Government of Canada proposes to consolidate frontier oil and gas regulation. This will streamline and simplify the approval process and operational responsibilities as well. These changes represent a small but important step.
We believe that it is crucial that in an increasingly competitive world we must provide Canadians and foreign investors with a clear regulatory framework in which to operate. The federal government must demonstrate a commitment to establish a regulatory environment that minimizes the burden on those who will ultimately create the opportunities and jobs to which this government is firmly committed.
[Translation]
These changes are reflective of another important Government of Canada priority-to ensure that government services are delivered in a cost effective manner. We recognize that reducing the deficit and restraining government expenditure is a priority for all Canadians.
In times of fiscal austerity such as these governments must make every effort to look for ways to give the taxpayers of this country the best value for their money. One way to do so is to ensure that the size and the structure of our institutions reflect the level of work required of them.
This bill represents another step in the ongoing process of effectively downsizing and reorganizing government responsibilities.
In addition to savings for taxpayers, this bill should result in cost savings for energy. Through streamlining operations we will save industry time and we recognize that for industry time is money. Just as important, however, we are maintaining the quality and integrity of the regulatory process of Canada's oil and gas sectors.
I see that it is eleven o'clock. With the Chair's permission I will stop here and perhaps the House can proceed with members' statements and question period.