House of Commons Hansard #98 of the 35th Parliament, 1st Session. (The original version is on Parliament's site.) The word of the day was board.

Topics

Department Of Natural Resources ActGovernment Orders

4:25 p.m.

The Acting Speaker (Mr. Kilger)

It is my duty, pursuant to Standing Order 38, to inform the House that the questions to be raised tonight at the time of adjournment are as follows: the hon. member for Manicouagan-Canada Labour Code.

The first three members on Bill C-48 had a limit of a 40 minutes maximum. Now we will go into the next phase of debate during which members will have 20 minute interventions, followed by ten minutes of questions and comments.

Department Of Natural Resources ActGovernment Orders

4:25 p.m.

Liberal

Réginald Bélair Liberal Cochrane—Superior, ON

Mr. Speaker, I am pleased to address the House again today at the second reading of Bill C-48, an Act to establish the Department of Natural Resources and to amend related Acts.

I would like to add to the statement by my colleague, the hon. member for Edmonton Northwest and Minister of Natural Resources. The natural resource sector is tremendously important to Canada's economy, and the Department of Natural Resources should ensure that this sector remains a cornerstone of Canada's economic growth as well as a significant source of jobs.

As indicated earlier, Bill C-48 will establish the Department of Natural Resources and provide the legal framework within which it will operate.

The department's mandate will be defined in one document rather than in the two acts now in effect, namely the Department of Forestry Act and the Department of Energy, Mines and Resources Act.

Sustainable development is very important. My colleague from Edmonton Northwest has indicated that one of the challenges facing the natural resource sector is Canada's progress toward sustainable development. Our ability to integrate our economic and environmental goals at all levels of natural resource management is essential if Canada is to become more competitive in this sector. Bill C-48 confirms the government's commitment to this objective.

The natural resources sector is important. The statistics quoted earlier by my hon. colleague, the Minister of Natural Resources, proves that natural resource industries provide a major contribution to Canada's gross domestic product, our trade surplus and job creation in our country. Over 500 communities depend on natural resource activity to sustain their economy. As well, our natural resource industries are high tech industries. Canada has a well-deserved reputation as a leader in the development and application of technology to improve the productivity and competitiveness of mining, forest and energy industries. It is through our expertise in this area that new technologies have emerged.

New technology has also created new industries in Canada. For example, as the minister has pointed out, Canada's requirement for accurate information on our land mass, such as maps of our geography, has stimulated new industries like geomatics. Already, this burgeoning industry employs 12,000 Canadians and exports $100 million each year.

The role of Natural Resources Canada. The Department of Natural Resources has developed a solid reputation for its research and technology expertise over many years. It is this expertise that has and will continue to bridge industrial and environmental concerns facing natural resource industries. Over the years the work of Natural Resources Canada has led to improved resource sector competitiveness and environmental performance.

Earlier, my hon. colleague the minister described some of the department's work in forest development, innovative mining processes and energy efficiency. These examples demonstrate how Natural Resources Canada is positioned to bridge the industrial and environmental concerns facing the natural resource sector.

In summary, the Department of Natural Resources will continue to promote sustainable development practices, will apply its scientific and technological expertise to the enhancement of our international trade and will increase the natural resource sector's contribution to economic growth and job creation.

Bill C-48 will establish the Department of Natural Resources and help Canadians understand the department's role as an intermediary-that word is extremely important-in bridging industrial and environmental concerns.

Under Bill C-48, the Minister and the Department of Natural Resources will have a mandate to work with the provinces, industry, environmental and aboriginal groups, and other stakeholders to ensure that Canada's natural resource sector continues to prosper now and in future years.

I listened earlier to the speech by my colleague from Matapédia-Matane and I was very surprised, to say the least, by how he approached the presentation of this bill. First of all, he limited his comments almost exclusively to the constitutional aspect, that is, the Constitution as it applies to this bill. He accused the federal government of meddling in Quebec's business.

I would like to take this opportunity to put that allegation in context. To start with, there was the 1992 Canada-Quebec Agreement on Forest Development providing for $136 million over five years. The hon. member for Matapédia-Matane said that Quebec had never signed such a document. We are talking about an amount of $136 million made up of equal contributions from each government, that is $68 million.

In the case of the Eastern Quebec Development Plan, the total amount of $68 million was paid by the federal government, as was also the case with the $10.5-million Indian reserve land program.

My point is this: under the Charlottetown accord, the forestry sector was to become an exclusive jurisdiction of the provinces. But as you know, the province of Quebec rejected the accord.

The second point I want to make is that the two existing acts, namely the Forestry Act and the Energy Administration Act, remain almost intact. In other words, the federal government participates in the financing of management activities related to those two natural resources sectors, but does not in any way interfere with the actual administration of the two programs.

I have a message for the hon. member, who might want to transmit it to the new Quebec government. If the federal contributions which I just mentioned are unacceptable and are perceived to be a form of interference, then the Quebec government can send them back, because we can certainly use them elsewhere. I know what I am talking about; while Quebec

received $136 million, Northern Ontario only got $30 million, that is $6 million per year.

Consequently, last year, 45 million small trees were not planted because there was no money available. So, if Quebec does not want those federal contributions, I will be very pleased to accept them on behalf of my constituents.

Department Of Natural Resources ActGovernment Orders

4:35 p.m.

Bloc

René Canuel Bloc Matapédia—Matane, QC

Mr. Speaker, in the Charlottetown accord, if that is what my hon. colleague is referring to, we did ask for total jurisdiction over forests. That is why we are going to have to hold a referendum: to obtain it. Quebec receives federal funding. It needs that money, and as long as we are part of this country, that is our money too.

As I said, Quebec did not sign the national strategy. We did not sign it. Sometimes deputy ministers travel. The fact remains that we did not sign. My hon. colleague from Ontario says that Quebec received millions of dollars, but then Ontario received transfer payments for regional development. So, there is compensation on both sides.

I would like to ask my hon. colleague this: does he agree with me that the federal government has very long arms when it come to grabbing, controlling, strangling the provinces even more? We in Quebec object to that. We do not refuse the money. We need it. It is just that we should be compensated and that is precisely what Quebec has been asking for since Lesage and Johnson. That is what we are asking for, and we have been asking for this for over 30 years.

It seems to me that this bill goes beyond the purview of the Constitution. I would like him to comment on that.

Department Of Natural Resources ActGovernment Orders

4:40 p.m.

Liberal

Réginald Bélair Liberal Cochrane—Superior, ON

With pleasure, Mr. Speaker. First of all, I would like to say that the amalgamation of two existing acts as in this case is always subject to Section 92(b) of the Constitution Act, 1867, which provided at the time that natural resources belonged to the provinces. That is exactly the point I was making earlier: these resources still belong to the provinces, but the federal government reserves the right to provide financial support to those provinces that want some.

Quebec benefits greatly from this, with the $68 million it received from the federal government corresponding to the 68 Conservative members it used to have in this House. Quebec received a very fair share indeed. Again, if my hon. colleague is convinced that when Quebec gets its independence, its will no longer need federal funds, by all means send the money back!

Coming back to the Charlottetown Accord, Quebec rejected it, with all the implications this had.

Department Of Natural Resources ActGovernment Orders

4:40 p.m.

Bloc

Jean-Guy Chrétien Bloc Frontenac, QC

So did Ontario.

Department Of Natural Resources ActGovernment Orders

4:40 p.m.

Liberal

Réginald Bélair Liberal Cochrane—Superior, ON

That is right, but we are talking about Quebec here. We are not talking about Ontario but Quebec. My colleague also raised the issue of regional development. This bill is not about regional development, it is about agreements on forestry. The figures just quoted were derived exclusively from forest resource development agreements.

Regional development is a different matter altogether. Must I add in closing that, with respect to regional development, Quebec's share is about $600 per capita, as compared to $133 for northern Ontario?

Department Of Natural Resources ActGovernment Orders

4:40 p.m.

NDP

John Solomon NDP Regina—Lumsden, SK

Mr. Speaker, Bill C-48 is a bill which in principle I support and the New Democratic Party caucus supports in-

Department Of Natural Resources ActGovernment Orders

4:40 p.m.

The Acting Speaker (Mr. Kilger)

Order, please. I would like to hear all the statements, everyone in turn. We are now listening to the comments of the member for Regina-Lumsden.

Department Of Natural Resources ActGovernment Orders

4:40 p.m.

NDP

John Solomon NDP Regina—Lumsden, SK

Thank you, Mr. Speaker. I just wanted to share with the House and the members that the New Democratic Party caucus supports in principle the taking of the bill to committee.

The bill when it becomes law will amalgamate, as I understand it, under one minister the powers, duties and functions of the minister in the Department of Forestry Act and the Department of Energy, Mines and Resources Act.

The bill defines natural resources to include all areas covered in the Department of Forestry Act and the Department of Energy, Mines and Resources Act. The definition clause contains a definition of sustainable development, the same definition apparently as in the Canadian Environmental Assessment Act.

There is a requirement under the general duties clause for the minister to consider the integrated management and sustainable development of Canada's natural resources in carrying out the minister's duties and functions. The general duties clause of the bill reiterates some modifications to the duties in the Department of Forestry Act to make these duties apply to all natural resources. It also describes current activities of the department and is consistent with federal government responsibilities and priorities in the natural resources area.

A reorganization bill usually has many objectives and opportunities: either amalgamation, centralization, efficiency, streamlining, expansion or in many ways hiding budgetary expenditures. During the report to the committee I will be looking at some of these objectives of the bill.

I have a couple of concerns I want to raise with the member for Cochrane-Superior. The minister in her remarks today said, and I quote: "Economic and environment concerns will continue to be addressed". She also said in the same statement that she will be committed to the market principles. It is my sense that these are contradictory, that you cannot be carrying out on behalf of the people of Canada an economic and environmental study to ensure that these are addressed yet leaving all of the elements of the responsibilities of the minister up to market principles.

I wanted to make the above point and I also have two questions. First, does the member not believe that these are contradictory, that the minister has indicated this previously? Second, has there been any provincial government response other than the members from the Bloc with respect to possible encroachments of provincial responsibilities in the energy sector, the forestry sector or some of the other natural resources sectors with specific reference to the province of Saskatchewan which is a province that I represent in this House?

Department Of Natural Resources ActGovernment Orders

4:45 p.m.

Liberal

Réginald Bélair Liberal Cochrane—Superior, ON

Mr. Speaker, to address the member's question directly, it is unavoidable today that the environment and the economy be together. We should strive to protect our environment while not being a nuisance to economic growth.

We should strike a balance between the two. We have seen many instances where environmentalists were representing an extreme point of view and industry was representing the other point of view.

I was really surprised and pleased that finally in the hearings of the natural resources committee, there seems to be movement on both sides. Industry has finally said publicly that, yes, there are environmental problems in Canada. The environmentalists are also saying that some progress is being made.

This is the object of the bill. It is the power and the duty of the Minister of Natural Resources to try to conciliate these two extremely important parts of our Canadian way of doing things. She will strive to do so.

The second part of the question concerned provincial jurisdiction. As I said a while ago to my colleague from the Bloc, amalgamating the two existing acts, the Forestry Act and the energy, mines and resources act, is totally in accordance with section 92(b) of the Constitution Act of 1867.

It is almost status quo, although it may not be the right thing to say at this point. Nothing has changed. The federal government still wants to be able to invest in provincial projects. They still want to establish those partnerships with the provinces, industries, recreational clubs, anglers and hunters, everybody as a matter of fact. It is doing so by financing those projects and is not directly involved in the administration of those projects.

Department Of Natural Resources ActGovernment Orders

4:45 p.m.

Bloc

Roger Pomerleau Bloc Anjou—Rivière-Des-Prairies, QC

Mr. Speaker, of course I support the proposal of my colleague, the hon. member for Matapédia-Matane, to delete some words from the proposal of the Minister of Natural Resources and to add to Bill C-48 the amendment presented in this House.

I would like to take this opportunity to show this House that the changes that these amendments make to the minister's proposal will simply make her proposal comply with the many requests expressed by all the successive premiers of Quebec for many decades, which this government is again trying to flout.

Indeed, we can go back to Premier Jean Lesage in the early 1960s who said, "Resource development is in provincial jurisdiction. It is among the priority rights and needs of the provinces, who are better able than the federal government to act effectively and in a lasting way in this field". He added: "It must be clearly established as a basic rule of our federal system that Parliament's exceptional powers must remain just that, exceptional, and must not be used to invade fields that are normally in provincial jurisdiction".

Daniel Johnson, Sr., who was also a premier, continued in the same direction as his predecessor and said that exclusive provincial jurisdiction includes "the exploration, conservation and development of resources" in particular.

Continuing with Jean-Jacques Bertrand, another premier, who in the same spirit said that Quebec also had to have jurisdiction over underwater mineral exploration, adding that Quebec could not accept the federal government acting unilaterally to manage provincial waters and control pollution in them, or acting with the provinces on the basis of the national interest, a concept which is very often invoked.

Even former Liberal Premier Robert Bourassa, who was a staunch federalist in Quebec, said that "in the energy sector, neither unilateral action by the federal government, nor unco-ordinated measures by provincial governments will enable us to reach the necessary goals. This can only be achieved through concerted action from both levels of government and from all governments".

In its present form, Bill C-48 merely increases the federal government's role in an exclusive provincial jurisdiction.

Former Premier René Lévesque said that the Canadian economy was not an homogeneous thing which could be successfully controlled and regulated with a single policy or program. Provincial governments are in the best position to act, since they know better than anyone their own economic context as well as

all the relevant factors such as resources, industrial structures, domestic market, social climate, etc.

More specifically, Mr. Lévesque argued that provinces have the sole right of ownership over their natural resources, adding that "as regards minerals and other resources located outside the immediate provincial territory but within the 200-mile economic zone, Quebec favours a joint jurisdiction whereby a province's legislative authority would prevail".

Mr. Lévesque also pointed out that since mineral resources and their management come under provincial jurisdiction, it is up to the provinces to find the best way to ensure the survival and growth of their mining industry.

Even in the days when federalism was perceived as a beau risque , and those days are certainly gone, Mr. Lévesque suggested that each province should have exclusive legislative power over its natural resources and interprovincial trade. In that latter sector, provincial laws would have superseded federal legislation so that the federal government would not have been able to use its general power to oppose a provincial law.

As you can see, the bill before us does not comply with the wishes expressed by the numerous premiers who have represented Quebec over the last few decades. That is why I support the amendment proposed by my colleague from Matapédia-Matane, because that is the only way of ensuring that this government respects the will of the provinces, especially of Quebec, as it should under the relevant provisions of Canada's Constitution.

The Government of Quebec has always been opposed to the federal government's spending power, that is, its power to use Quebecers' taxes. Canada is not doing us any favours. What it gives us comes mainly from our own pockets. What we object to in this bill is this ability to spend, to take our money and manage our economy in areas of exclusive provincial jurisdiction according to all the laws of Canada and to Canada's Constitution.

Once again the federal government is going to extremes in its willingness to centralize everything in Ottawa.

That is what Mr. Bourassa used to call domineering federalism.

In its willingness to centralize everything in Ottawa, in attacking the exploitation, concentration and management of natural resources, a sector which is exclusively in provincial jurisdiction, we cannot endorse a federal process to which Quebec in particular does not entirely subscribe.

For us federal intervention in natural resources is totally illegitimate if the provinces are opposed to the project. Quebec, of course, and we have said it before, has always opposed the creation of a ministry of forests, for example, rightly viewing this as an intrusion into one of its exclusive jurisdictions.

As well, Quebec is not a signatory to the national forest strategy and no Quebec minister has participated in the work of the Canadian Council of Forest Ministers since the Meech failure. It is Quebec that must exercise its full jurisdiction to determine its own policies, programs and priorities in the area of natural resources.

To convince this House of the challenge facing us, I would like to close my remarks by repeating a statement made by a former Quebec premier, Adélard Godbout-this goes way back; we did not start fighting for our causes yesterday-who expressed this somewhat prescient or prophetic opinion at the time: "Full respect for provincial rights is essential to Canada's unity and progress. Any infringement on provincial rights would inevitably weaken Confederation". That is obviously a reality which this government and its predecessors have always refused to understand.

Department Of Natural Resources ActGovernment Orders

4:55 p.m.

Liberal

Réginald Bélair Liberal Cochrane—Superior, ON

Mr. Speaker, I have a simple question. When the forest management plan for Indian lands expires in 1995, when the Canada-Quebec agreement on the development of forestry resources expires in 1996 and the plan for Eastern Quebec expires in 1996 as well, will the hon. member for Anjou-Rivières-des-Prairies recommend to his caucus and their colleagues in Quebec City that they should not renegotiate and should turn down all potential funding?

Department Of Natural Resources ActGovernment Orders

4:55 p.m.

Bloc

Roger Pomerleau Bloc Anjou—Rivière-Des-Prairies, QC

Mr. Speaker, the question is very apt, and I hope the answer will be as well. As long as we are part of Canada, as long as we pay our taxes and provide 25 per cent of Canada's income, we will insist that 25 per cent of any funding that is made available should go to Quebec.

Most Canadians actually believe in two assumptions concerning Quebec. We see it every day in the House. Most Canadians believe that we are a bunch of troublemakers who are never happy with what we get.

Department Of Natural Resources ActGovernment Orders

4:55 p.m.

An hon. member

Oh, oh.

Department Of Natural Resources ActGovernment Orders

4:55 p.m.

Bloc

Roger Pomerleau Bloc Anjou—Rivière-Des-Prairies, QC

Well, you can see it is quite true.

The second assumption is that Quebec receives much more money from Canada than it puts in. Most Canadians believe that assumption. If it is really the truth, then what is the problem? Let us go. You are going to make money and you are going to solve the problem. That is what we want. But until that time, demo-

cratically speaking, we are going to stay here and we will ask to have 25 per cent of what is necessary for us because we give 25 per cent of our revenues to Canada.

Department Of Natural Resources ActGovernment Orders

4:55 p.m.

Liberal

Charles Caccia Liberal Davenport, ON

Mr. Speaker, in the region I come from in metro Toronto we look at natural resources in terms of attachment because we have so few of them.

It is interesting to note that in many municipalities we have a department of urban forestry. We do have a regional conservation authority of great significance. We have citizens' participation and action in the cleaning up of our rivers. In other words, we have an attachment to water, soil and the natural resources probably because we are urban Canadians.

We do not have obsessions about jurisdiction. We think that the few trees and the few rivers we have belong to us as municipal dwellers, as provincial dwellers and as Canadians as a whole. However, we have in common with everybody across the country the preoccupation about the future of these resources. This is what my intervention will focus on this afternoon.

I congratulate the minister for introducing this important bill. I praise her for including a reference to sustainable development in clause 6(d) under the powers, duties and functions of the minister.

I would urge the minister to consider a better treatment of the concept of sustainable development. In this bill it comes after the minister's duty of co-ordinating, promoting and recommending certain policies with respect to natural resources and explosives. It comes after assisting in the development and promotion of Canadian scientific and technological capabilities. It comes after participating in the development and application of codes and standards. It finally appears as the fourth item. It is in clause 6(d) in having regard to the integrated management of Canada's natural resources. That is where we find sustainable development.

I urge the minister, the parliamentary secretary and the committee to take a page from Bill C-46, the bill to establish the Department of Industry which we debated yesterday. Look at clause 5 of that bill where the concept of sustainable development is outlined in the first part under the powers exercised by the minister. It says that the minister shall exercise the powers and perform the duties and functions in a manner that will promote sustainable development. It comes as the number one overall consideration.

It would make sense because in clause 2 of Bill C-48 there is a very good definition of sustainable development. Actually, it is the word for word definition given in the 1987 Brundtland report. We applaud the minister and the government for having done so. This definition has become the turning point in our way of thinking, in our way of placing the environment and the economy in a new context.

Therefore it would make sense that in a bill of such importance relating to our natural resources that sustainable development would not rank as an afterthought in the fourth clause dealing with the powers of the minister. It should be elevated to the first and stand on its own without any reference to words like integrated management, the meaning of which we really do not know. There is no definition of integrated management in clause 2 but there is a definition of sustainable development. In that sense it is hoped that a suitable amendment will be moved in committee and the matter resolved along these lines.

What does sustainable development mean? It is important that we enter into this debate with some principles on what will be guiding future ministers and officials over the next 10 or 20 years when they apply this legislation.

Reduced to its basic elements, sustainable development is a concept that stresses the importance of integrating the economy with the environment. It means that when we pursue growth, we pursue it with environmental, economic, social and even cultural concerns in mind. That is what sustainable development is intended to imply.

From that general concept we would want to know what are the principles which come under that general heading. How should we be guided in the management of our resources when we say: "We accept the concept of sustainable development; it is in the act. We have a general definition. Now what does it really mean? Could you tell us?"

In search of these elements the first principle would be to integrate the economy with the environment and make those goals convergent rather than in conflict. They can be convergent and mutually reinforcing rather than in conflict.

Also, it would require applying accounting practices that would indicate to the nation that when we cut down a forest or when we fish, in other words when we reduce our stock of natural resources, that shows up in our national accounts as a loss and not just as a revenue. While there is definitely a revenue when a forest is cut down, that asset is gone for the next 95 or 110 years. Therefore, we must know of the loss in our national accounting of that asset. This form of accounting is badly needed.

Another principle that could be adopted is to ensure that the stock of natural resources is not drawn down from the present acceptable and desirable levels. The stock of our natural resources should not only be maintained but also improved. Its quality should also be improved wherever possible. This is not just for us and our requirements but for future generations. It is this preoccupation with the long term, this preoccupation with the years 2050 or 3000 which makes the concept of sustainable

development so important and so politically attractive. It looks at the long term, the future.

Another principle is an operative one. In the application of this act everything within the power of the minister should be done to prevent climate change. Why? Because we know that climate change means also a change in our natural resources. It would mean a change in the location of agriculture. It would probably mean a shift toward the north of our forests. It could have a profound effect on our fisheries. It impacts on our natural resources. I cannot think of another principle as important for the Minister of Natural Resources than that of preventing climate change.

If we look at the policies of today, it is legitimate to ask ourselves: Are our energy policies sustainable? If we look at the way we spend our public funds in terms of energy, we find that for every dollar the Government of Canada spends to promote energy efficiency, it spends over $100 in support of the fossil fuel industry. This support increases pollution and supports dependence on non-renewable resources. This support has a negative impact on climate change.

If we look at the 1990 accounts, the latest for which figures are available, what do we find? We find that the value of tax deductions by the oil and gas industry in Canada amounted to some $5.8 billion. With these deductions the government lost some $1.2 billion in revenue. The current expenditures by the Government of Canada to the energy sector are close to $700 million. Of that amount only 5 per cent goes to research and development on alternative energy sources.

I do not need to stress the importance of research and development in alternative energy sources and the importance of changing our dependence in energy from non-renewable to renewable sources. Everybody knows that.

That means that under this act and the new minister's commitment to sustainable development it is desirable to have a profound shift in the department's budget. It should move rapidly from a budget on which the emphasis is on non-renewable to renewable sources of energy and should move more rapidly to the implementation of policies that reinforce and accelerate the movement toward more efficient use of energy.

I am not talking of a carbon tax, although we all know that one day the concept of a carbon tax will have to be tackled if we are serious about the question of climate change. However, the political moment has not yet arrived.

Department Of Natural Resources ActGovernment Orders

5:10 p.m.

An hon. member

Thank god.

Department Of Natural Resources ActGovernment Orders

5:10 p.m.

Liberal

Charles Caccia Liberal Davenport, ON

Well, that may be an expression of relief for the present, but the chickens are coming home to roost sooner or later and we will have to cross that bridge at the proper time.

Moving into forestry, we can ask ourselves: Are our forest policies sustainable? This is a sector in which we must apply the concept of sustainability. There is a considerable debate in Canada on what constitutes a forest and a sustainable forestry. Is the volume of forest really the best indicator of the state of our forest resources, one can ask. Does increasing the cubic metre figures make up for loss of forest and species diversity? Is volume really the only criterion we should be examining? Or does the loss of area of old growth forest not represent an important factor if we think of future generations, if we think of biodiversity?

All of us know that one tree does not make a forest, of course. Today many Canadians and many regions of the world are undertaking alternative and sustainable forestry practices. In that respect British Columbia is a fascinating example of new ideas. All of us know there are alternatives to large cuts which destroy forests. There are much better alternatives to clear cutting. There are alternatives which would permit the protection of wildlife habitat. There are alternatives which would permit the retention of biodiversity.

Perhaps this is not the time nor the place to open the debate on clear cuts, especially when one has only 20 minutes. However, we know that our past performance with clear cuts has earned us a very bad reputation abroad.

If the purpose of the new department as it is spelled out in clause 6(f) on page 3 is to participate "in the enhancement and promotion of market access for Canada's natural resources products and technical surveys industries, both domestically and internationally" then we must pay very close attention to our forest practices. Those practices are being watched from abroad and our future export opportunities in forest products hinges on them.

In that respect, I would like to pay homage to the forestry code introduced last spring I believe by the Government of British Columbia. I want to express the hope that this forestry code will not only be given the necessary regulations soon but also the necessary funds to be enforced effectively because it is through measures of that kind that we can establish for Canada a good reputation abroad with respect to forestry practices.

We can also ask ourselves what is the role of the forest services of Canada. Is it one to perform only scientific research? Is it one to look for industrial opportunities only? Is it one that is also to give guidance and leadership in forest practices for the

rest of the nation? Suddenly after all these years the time has come to examine the mandate of forestry Canada and to determine whether it is still adequate in a changing world as we approach the 21st century.

Moving on to mining, we can also ask ourselves whether our mining practices are sustainable. Obviously this matter needs to be given some close attention. It seems to me that instead of having policies that encourage our production and consumption, our policies should be focused on resource reduction, the development of new materials and greater momentum to recycling so that the results will be in decreased mining activities, mining wastes, water consumption, pollution, deforestation and erosion.

In this respect, in recent years the car industry in particular has made enormous progress with new materials and in general Canadian industry has made considerable progress, although not as good as other nations, in achieving energy efficiency in the consumption of energy per unit of production. We have come a considerable distance but we still have a long way to go if we want to emulate and do as well as Japan and other OECD countries. Compared with those countries we are not doing as well.

Having attempted to set out some principles that could guide us in the management of our natural resources and in the implementation of this bill once it is proclaimed, the Department of Natural Resources has a very important role to play. It would be desirable if it were to apply principles and practices that are sustainable and that apply the concept of sustainability for the long term.

We are, after the Rio conference of 1992, coming around the corner in an effort to ensuring that we have a sustainable development that takes into account the economy and the environment. We must make sure that this agreement by the global community which took place in Rio de Janeiro two years ago is implemented and brought into the legislatures of this country.

I will conclude by again congratulating the minister for having introduced this bill. It is of paramount importance. It is good to see that the concept of sustainable development has somehow found its way into it but it must be given greater prominence; actually, it should be given primacy. Once that is done important principles of the application of that concept will need to be fleshed out so as to give direction to the department in the decades ahead.

Department Of Natural Resources ActGovernment Orders

5:20 p.m.

The Acting Speaker (Mr. Kilger)

Before proceeding to questions and comments I would like to remind all hon. members that as mentioned this morning Private Members' Business will be delayed by 20 minutes due to minister's statements. Proceedings on Private Members' Business will therefore commence at 5.50 p.m. this evening.

Department Of Natural Resources ActGovernment Orders

5:20 p.m.

Reform

Ian McClelland Reform Edmonton Southwest, AB

Mr. Speaker, I wish to recognize the hon. member opposite, the member for Davenport. I recognize his very longstanding, very real commitment to the environment and to sustainable development. This is not a recent conversion. This is as we know a very real, longstanding and very genuine commitment to conservation.

Given the position of stature of the member opposite within his own caucus and given the gravity of the consideration of fossil fuels to that part of the country that I represent, I would like to ask the member to respond to this question specifically.

Would the member recommend an immediate tax on fossil fuels to ensure conservation and to induce consumers to shift away from fossil fuels? Because of his influence within his own caucus, if the hon. member for Davenport had his way today would we have a tax on fossil fuel to conserve energy and to induce people to switch to other fuels tomorrow?

Department Of Natural Resources ActGovernment Orders

5:20 p.m.

Liberal

Charles Caccia Liberal Davenport, ON

Mr. Speaker, if the member for Davenport were on an ego trip he would certainly want to tackle this question fully and give a very comprehensive answer.

We do already have taxes on fossil fuels. Every time we buy gasoline at the pump we pay some hefty provincial and federal taxes; those taxes already exist.

If the thrust of the question of the hon. member is whether I would recommend policies related to the introduction of a carbon tax then we are talking of something completely different. A tax on gasoline or on coal or on gas as I said exists already and it varies from jurisdiction to jurisdiction. An additional tax would not be a carbon tax. It would be a fake carbon tax. It would be more of the same. It would be nothing new.

A carbon tax is a massive change from the present system of taxation that we have on income and labour and investment and flow of capital to a system of taxation that would be taxing consumption and mainly anything that relates to consumption of fossil fuels.

It is an enormous political somersault, if I may use that term. It would be a big step for which we are not ready and so since we are all more or less realists, and in my caucus I do not have the reputation of being a great realist but I still have my feet on the ground, to recommend a carbon tax would be asking for something for which we are not equipped politically or otherwise.

Sooner or later we will have to cross that bridge if the trend identified by scientists continues. These are not Marxist or left-wing scientists, these are meteorologists at the United Kingdom University of East Anglia, for instance, who have recently produced a map indicating that over the last 30 years

there has been a change in annual temperatures. There has been a change in average winter temperatures.

I would be glad to show the hon. member a map to that effect, which in essence shows that the increase in average temperatures that has taken place over the last 30 years shows a considerable warming in certain parts of the world.

This warming has led to the melting of the Arctic and Antarctic caps. This melting has produced a certain flow of cold water into the northwest Atlantic and some other oceans, which could be an explanation for the fact that certain fisheries have disappeared.

I am saying that if this trend continues and we have over the next 30 years another +1.5C as an average increase-thus amounting to +3C-we will be in for some big problems because the water levels of our coastal cities will be higher. We will have to do some basic coastal public works.

The livelihood and the survival of millions of people in certain parts of the Pacific where the islands rise only a metre or a metre and a half above sea level will be in serious danger. Scientists are speaking about the flooding of some one-quarter of Bangladesh.

We will see the movement toward the north of agriculture and of forests. In other words, we will have a completely different set of natural resources and of problems resulting from that. It may be for the next generation of politicians.

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5:25 p.m.

Reform

Charlie Penson Reform Peace River, AB

Mr. Speaker, I thank the member for Davenport for his comments regarding sustainable development. The member talked about the important need for sustainable development, particularly in the industry of forestry.

I wonder if he would consider that one of our most important natural resources we have in this country is our resource of top soil for farming. Top soil gives us the ability to produce food but is being eroded at an alarming rate.

Since the beginning of organized agriculture on the great plains we have lost about one-half of our top soil. Yet we have government farm policies that encourage this practice to continue. Where would the hon. member rate this in his overall scheme of sustainable development?

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5:25 p.m.

Liberal

Charles Caccia Liberal Davenport, ON

Mr. Speaker, it is nice to be treated as an expert when you are not one. Coming from the great agricultural riding of Davenport, one would perhaps expect more from me. The most important natural resource we have is the human resource in this country. We all agree on that.

Whether top soil for farming should be the next one-it may be so-I do not know. I know that the Senate in 1983, particularly Senator Sparrow, produced a very interesting report on the losses in top soil. That report has been languishing since 1984. He even went so far as quantifying the yearly losses in dollars in top soil, which was a unique feat by our historical standards.

I should urge the hon. member to get a copy of Senator Sparrow's report and perhaps ask questions of the minister tomorrow.

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5:25 p.m.

Reform

Darrel Stinson Reform Okanagan—Shuswap, BC

Mr. Speaker, Bill C-48 has been described by many as a housekeeping bill, to combine the federal Department of Forestry with the Department of Energy, Mines and Resources.

In my opinion Bill C-48 is far more than that. Today I want to begin by praising Bill C-48 while also raising a few concerns. First, I wish to praise the government for continuing with this integration started by the former government, both from a standpoint of tax dollars saved and new understandings included in Bill C-48. From a recent departmental briefing I see that this amalgamation is expected to save something in the range of $41 million over a four-year period starting in 1994-95 primarily through streamlining at the corporate level, including such things as putting together financial services and human resources of what formerly were two cabinet level departments.

The jobs of the rank and file public service generally were spared the axe although the downsizing did remove a cabinet minister and three assistant deputy ministers.

The preservation of those other jobs is perhaps due to the fact that the Canadian Forest Services-and I would like to comment on the forest services here-is already one of the most decentralized of all in the federal government with some 90 per cent of the people not in Ottawa.

Another reason for praising this legislation is the new understanding presented by Bill C-48 of what principles and methods should be used to manage the nation's natural resources. For example under "interpretation", Bill C-48 defines sustainable development as "development that meets the needs of the present without compromising the ability of future generations to meet their own needs".

The bill's list of the minister's duties in clause 6, items (d), (e), and (f) are as follows:

The minister shall:

(d) have regard to the integrated management and sustainable development of Canada's natural resources;

(e) Seek to enhance the responsible development and use of Canada's natural resources and the competitiveness of Canada's natural resources products;

(f) participate in the enhancement and promotion of market access for Canada's natural resource products and technical surveys industries, both domestically and internationally;

Although day to day management of natural resources falls under provincial jurisdictions these directives in Bill C-48 should lay to rest many longstanding public concerns that the federal government might either encourage the so-called rape and destruction of our natural resources on the one hand or collapse before extremists advocating only recreational and tourist use of natural resources on the other hand.

The legislation makes clear that the minister must have regard for integrated management and sustainable development. That is good for everybody.

Another reason to praise Bill C-48 is that it will help counteract an unfortunate tendency by some people to speak of our natural resource industries as though they were so-called sunset industries, as though their time had somehow come and passed. Nothing could be further from the truth.

The role of science and technology in the Department of Natural Resources is widespread with the scientific establishments at numerous sites from Victoria to Resolute Bay to St. John's as part of a science and technology budget at Natural Resources Canada in the order of $432 million projected for 1994-95.

Among the minister's duties are that the minister shall, and I quote clause 6, sections (b), (c) and (i):

(b) assist in the development and promotion of Canadian scientific and technological capabilities;

(c) participate in the development and application of codes and standards for technical surveys and natural resources products and for the management and use of natural resources;

(i) gather, compile, analyse, co-ordinate and disseminate information respecting scientific, technological, economic, industrial, managerial, marketing and related activities and developments affecting Canada's natural resources.

Another indicator that our natural resource industries are continually elevating in addition to the specific growth in science and technology is the modernization of their insights, their principles and the managerial techniques as the world moves toward sustainable development, in part pushed by the new wave of green consumerism.

As a prime example of such integrated resource management the federal government has been a major participant in the Whitehorse mining initiative whose report presented September 13 included a set of more than 150 recommendations in light of 16 principles and 70 goals voiced by more than 140 individual participants in the process.

For all these reasons I applaud the government for uniting these departments into one through Bill C-48. However, I also want to voice some concerns.

Bill C-48 helps to spell out the federal role and relationship with provincial jurisdiction over forestry and mining. Despite much talk about the so-called new economy, the $40 billion forest industry remains number one in Canada, providing some 777,000 jobs or one in every 16 in 1993 with approximately 350 Canadian communities dependent on forestry for their financial existence. It also adds a $19 billion contribution to Canada's net balance of trade, by far the largest of any industry in Canada.

Although the mining industry has been hard hit in recent years, there are some 150 communities across Canada that depend on mining and mining related activities. This contributes 4 per cent of our GDP, 17 per cent of our exports and a net $11 billion surplus to our balance of payments as well as being the source of 60 per cent of rail freight and 55 per cent of port traffic. Directly and indirectly, mining provides some 300,000 jobs.

Clearly, forestry and mining are two of the most essential contributors to our national economic health. Therefore I would have preferred to see clause 7 of Bill C-48 say that the minister shall co-operate with the provinces and municipalities rather than may as it now does. These economic sectors are simply too important for us to tolerate government duplications or squabbles regarding jurisdiction. As a Reformer I am especially concerned that there should be as little overlap as possible between the levels of government and that no activity be undertaken by the federal level if the provincial level can handle it.

I also have questions on clause 35, subclauses 7 and 8, which detail other things the minister may do.

Subclause 7 says that the Minister of Natural Resources may make grants and contributions and, with the approval of the Governor in Council, provide other forms of financial assistance. I am told that Parliament can exert control here by simply refusing to appropriate money to the minister for such purposes. But once the funds are voted, the minister does not even need to consult with cabinet before making grants and contributions.

I believe Bill C-48 should have included some procedure to build into the granting process public accountability and transparency as well as requiring at the minimum consultation with cabinet.

Subclause 8 provides that:

(1) The Minister may co-ordinate logistics support and provide related assistance for the purposes of advancing scientific knowledge of the Arctic region and contributing to the exercise of Canada's sovereignty in that region and its adjacent waters.

(2) For the purposes of subsection (1), the Minister may

(a) make grants and contributions; and

(b) make recoverable expenditures on behalf of any other department, branch or agency of the Government of Canada or a province or any university, organization or person in respect of its share of the cost of any logistics support or related assistance.

I have the same concerns as mentioned above about the authority for grants but I would would like to ask some additional questions.

First, is this Bill C-48 the appropriate place to authorize a minister regarding contributing to the existence of Canada's sovereignty in the Arctic? If there is doubt regarding Canada's sovereignty in that region, it seems that a so-called housekeeping bill on natural resources is at best an inappropriate place to bolster such authority.

Second, in view of the tradition that natural resources north of 60 degrees latitude fall under the jurisdiction of the Minister of Indian Affairs and Northern Development, why is the Minister of Natural Resources given this twin function of asserting Canadian sovereignty in the Arctic and authorization to recover costs from groups performing exploration or research, maybe filming a movie or leading a tour group?

I look forward to hearing the government's explanations for what look to me to be shortcomings in a bill which otherwise deserves the praise and support of the House.

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5:35 p.m.

Liberal

Charles Caccia Liberal Davenport, ON

Mr. Speaker, in listening to the hon. member's intervention, I was wondering about his thoughts on the future of Canada's forests since he comes from an area where the forests are so well managed and where an experiment was carried out by the Vernon provincial district in the marketing of lumber.

As you know, Mr. Speaker, until 1985 the forestry department was part of the Environment Canada department. It was put in that department because it was felt that forestry seen from an environmental perspective is managed with concerns also for wildlife, water and biodiversity considerations. That holistic approach was valid then as it is today.

Would the hon. member favour a move whereby the department of forests would again become part of Environment Canada?