Madam Speaker, I rise to address the motion put forward by the hon. member for Swift Current-Maple Creek-Assiniboia.
My colleague has informed the House about steps the government is taking to reduce regulatory overlap and duplication in the Canadian nuclear sector.
I would like to take this opportunity to give the House an overview of the initiative undertaken by the government in other sectors of the energy industry in order to meet these objectives.
Before I do, however, I remind hon. members that the very basis for these efforts is the government's commitment to a market oriented energy policy. We believe the energy industry must have the flexibility to adapt to changing market circumstances if it is to continue to contribute to Canada's economic prosperity. That means keeping government intervention in the marketplace to a minimum.
Nevertheless, there is a need for regulation in the energy industry just as there is a need for regulation in other sectors of the economy. As my colleague noted, the challenge is to achieve a regulatory framework which protects the public good but does not unnecessarily inhibit the industry. Achieving this balance requires the government to be constantly mindful of the impact of its regulatory activities on the industry.
The agency primarily responsible for regulating Canada's oil, gas and electricity sectors in the areas of federal jurisdiction is the National Energy Board, the NEB. The board was established in 1959 under the authority of the National Energy Board Act, and for the past three and half decades it has done an excellent job in meeting the needs of both government and industry in administering a reasonable and balanced regulatory regime.
Under the act the NEB sets tolls and tariffs for oil and gas pipelines and also approves the construction of pipelines and designated power lines under federal jurisdiction. The board also authorizes the export of oil, gas and electricity and the import of gas.
The National Energy Board is an independent quasi-judicial body which reports to Parliament through the Minister of Natural Resources. It is comprised of nine members, all of whom are appointed by governor in council.
Matters relating to tolls and tariffs, minor construction and short term import/export orders are the exclusive jurisdiction of the board. However, decisions requiring certificates of public convenience and necessity and export and import licences must be approved by the governor in council.
The NEB has proven to be an extremely effective regulatory body. In my view the board will be even better positioned to meet industry needs in the future as the result of recent initiatives it has taken to modernize, streamline and simplify its regulatory processes and requirements. These initiatives are in direct response to 13 recommendations the board received in October 1993 from the Minister of Natural Resources advisory panel on regulatory review.
I am pleased to inform the House the board has moved swiftly and effectively to address each of these recommendations. For example, the NEB has revised many of the processes and requirements for filing information with the board with the overall objective of easing the administrative burden on industry. Among other things, the board is implementing an electronic regulatory filing system for all regulatory filings. As well, it has taken industry views into account in revising its guidelines for the filing of information by companies applying for certificates of public convenience and necessity.
The board's guidelines for preparing a social economic impact assessment for pipeline projects have also been revised to reflect new legislative requirements and to avoid overlap and duplication with other statutory requirements.
The National Energy Board has also demonstrated its ability to adapt to change in the natural gas market by revising its rules on how gas can be moved on pipelines. Earlier this year the board decided to end its ban on selling pipeline transportation rights at prices above the regulated toll, which will help ensure the available capacity is allocated in the most efficient manner.
The board also decided against requiring that available pipeline capacity be posted on electronic bulletin boards since this secondary transportation market has been working well without any such regulation.
In August 1994 the National Energy Board issued revised guidelines which will make it easier for pipeline companies, producers, shippers, consumers and governments to resolve tolls and tariff issues through negotiation rather than formal NEB hearings which are costly to all parties.
In another cost saving measure for the industry, the board decided to set the cost of capital for group 1 pipeline companies for multi-year periods rather than on an annual basis. This will reduce the expense associated with annual hearings for each pipeline by reducing the length of the hearings.
The National Energy Board is also endeavouring to reduce overlap and duplication by working more closely with provincial regulatory bodies.
For example, the NEB and the Alberta Energy and Utilities Board have signed two memoranda of understanding, the first to implement a mutual aid agreement for pipeline incidents in Alberta and the second to establish a common reserve data base.
Under the first MOU, when an incident occurs on an NEB regulated facility the Alberta Energy and Utilities Board will, at the request of the National Energy Board, provide emergency response assistance. If the incident involves a provincially regulated pipeline the NEB will be available to provide emergency response investigation assistance. The end result will be a faster, more effective response by both boards to pipeline incidents in Alberta.
Under the second MOU the NEB and the AEUB will share geological and reservoir information for natural gas and crude oil pools. The sharing of information will result in a common reserve data base for Alberta. The beneficiaries of this most efficient method of maintaining estimates of reserves will be the oil and gas industry and the taxpaying public.
I could go on and on about the efforts made by the National Energy Board to reduce the overlap and duplication and to streamline the administrative requirements. However, my goal here is only to give the hon. members an overview of the recent measures taken by the Board to improve the regulatory framework for the oil, gas and electricity sector.
I would urge the hon. member for Swift Current-Maple Creek-Assiniboia to seek a full accounting of the NEB's regulatory reform initiatives directly from the board. I believe he will be impressed with the progress that has been made to date. The record will clearly indicate that this government not only endorses the objective of reducing the regulatory burden on the energy industry, but it is actively pursuing that objective on a day-to-day basis.