Mr. Speaker, it gives me great pleasure to speak in favour of this important bill. While it represents a small amendment, Bill C-25 will have important ramifications for Norman Wells and other northern communities. As my colleague, the Minister of Indian Affairs and Northern Development, has outlined, two important objectives underlie this bill.
First, Bill C-25 will ensure the responsible management of an important natural resource. We have heard in earlier debate how this legislation offers sound resource management. I am sure most members of this House will agree that such measures are important to our resource base.
Let us turn to the second objective of Bill C-25, the creation of a stronger northern economy. Passage of this legislation offers the sustainment and development of employment and business opportunities. I believe that the realization of this objective alone is impetus for this legislation.
A bit of history is necessary in order to fully appreciate the economic benefits the Norman Wells oil field has brought to the north and those it could yet bring with the passage of this legislation.
In 1944 the Canadian government entered into an agreement with Imperial Oil to develop the oil field at Norman Wells in the Mackenzie Valley. The proven area agreement that was adopted set boundaries and a production limit for the field.
At the time it was predicted that the field would be productive until the year 2008 at the latest, but with today's more sophisticated technology we know that the Norman Wells oil field has a much longer productive life. In fact, it is expected to remain productive until at least 2020.
Technological advances over the 50 years have also led to a more advanced knowledge of the extent of the oil pool at the Norman Wells area. However, it has been shown that a small part of the pool lies outside the original proven area boundaries. As hon. members know, Bill C-25 extends the proven area boundaries to include all the proven reserves.
What does all this mean for the people of Norman Wells and other northern communities? The bottom line is that it means greater economic stability and growth. The Norman Wells project injects millions of dollars into the northern economy each year.
Over 50 companies in Norman Wells and other northern communities receive a substantial amount of business directly from the oil project. This says nothing of the spinoff business generated for those and other companies.
For a better appreciation, consider for a moment how businesses would be affected by reduced spending by Norman Wells employees alone. Considering the project provides annual wages to the northern residents in the range of $3.7 million, this loss would most certainly have devastating economic effects on small business.
Now consider the positive implications of increasing the size and production life of Norman Wells. The passage of this legislation paves the way for a $30 million drilling program which will be undertaken by Imperial Oil, the operating company of Norman Wells.
This project and the extension of the field's productive life in general will increase short term employment and stabilize long term employment in the Norman Wells area. It is estimated that an additional 25 person-years of indirect employment will also be created in the north.
Northern businesses will also benefit from the opportunity to learn up to date horizontal drilling technology. Future business and employment opportunities will be enhanced for these firms not only in the north, but also in Alberta and B.C. where there is a shortage of such expertise.
The economic benefits of this small amendment to the Canada Petroleum Resources Act do not end at the 60th parallel. Indeed, all Canadians stand to benefit from the passage of this bill.
Not only will the Government of Canada's financial position improve from the additional corporate and personal tax revenues, the government's one-third investment in Norman Wells is expected to bring in millions of extra dollars.
This project will also be an economic benefit to Albertans. At a time when Canadians are looking for economic stimuli, this is clearly a wonderful opportunity. I urge hon. members to lend their support to this bill so economic renewal can continue.
(Motion agreed to, bill read the third time and passed.)