Mr. Speaker, I rise to address the House on Bill C-8, the Canada-Yukon oil and gas accord implementation act.
I am extremely pleased to be introducing to the House yet another bill which reflects the changing political circumstances in Yukon. I know that my hon. colleagues will want to join me in supporting and applauding the territorial government's ambition to take a new provincial-type responsibility at this time.
These are exciting times in Yukon, which is in the midst of a number of historic developments. The 35th Parliament dealt with land claims and self-government legislation for Yukon's First Nations. We also addressed the establishment, through separate legislation, of the Yukon Surface Rights Board.
Today I am asking hon. members to support the transfer to the Yukon government of the administration and controls of onshore oil and gas resources. I am also proposing through Bill C-8 that the territorial government be granted the authority to legislate in regard to these resources. In other words, I am seeking the support of the House to move the devolution process forward another step in Yukon.
The first steps of this transfer to the Yukon Territory were taken in the 1980s. The present government made a commitment to continue implementation in a planned and orderly manner and without delay.
Prime Minister Chrétien confirmed this course of action and the government's desire to promote political development in the North in his speech to the Northwest Territories legislative assembly in November 1993.
The people of the Yukon including the Yukon's First Nations fully support the transfer of responsibilities and the passing of the bill.
The transfer process does not mean that the federal government is trying to abdicate its responsibilities. Instead it is the expression of the real and justified desire of the northern people to take greater control of their lives. It is a matter therefore of transferring responsibilities to the appropriate authorities and of ensuring that decisions are made locally in the best interest of those concerned.
For the people of the Yukon, the transfer of responsibility for natural resources is vital to their political development. They are convinced that resource development will provide the basis for a strong and healthy economy in the territories through to the 21st century.
The Yukon's gas and oil resources are for the most part as yet undeveloped, although not for lack of interest. Uncertainty as to land and resource ownership has slowed the development of the Yukon for over 20 years. With the passing of the Yukon land claims legislation in 1994, negotiations currently under way with the Yukon First Nations and the settlement of pending territorial claims in the near future will get oil and gas exploration activities going once again.
Bill C-8 is being brought forward under the terms of the Canada-Yukon oil and gas accord which was signed in May 1993. Under this accord the federal government agreed to introduce legislation to give the territorial government the additional legislative powers necessary to manage and administer onshore oil and gas resources. This will be accomplished through amendments to the Yukon Act as set out in Bill C-8.
On the date of transfer the federal government will also pay to Yukon the moneys it collected in petroleum revenues from onshore sources in Yukon. Once the transfer is completed Yukon will receive an annual revenue of approximately $1.5 million from the Kotaneelee project.
I assure hon. members that no new federal money will be required to support this transfer process. Once the transfer of responsibilities and funding is completed, the federal government will no longer be directly involved in managing onshore oil and gas resources in Yukon. It will be done at the territorial level.
However, the offshore areas will continue to be under the jurisdiction of the federal government and the federal regime will continue to apply.
Territorial legislation will be passed which will establish a new regime for managing and regulating oil and gas activities. The legislation will address exploration, development, conservation, environmental and safety issues, as well as the collection of resource revenues. The replacement of federal legislation by territorial legislation will take place simultaneously with the transfer of administration of oil and gas.
I also assure hon. members that the transfer of these legislative powers to Yukon will not affect the ability of the Government of Canada to fulfil its mandate in any area of federal responsibility. It will not diminish our authority with respect to international affairs, national security, the environment, the resolution and implementation of land claims, or the creation of national parks.
It is also important to keep in mind that the Government of Canada will also have the power to resume responsibility for the administration and monitoring of gas and oil operations on all of the lands, with a view to settling aboriginal land claims. This clause will therefore guarantee Yukon First Nations the possibility of selecting underground lands.
In addition, the supplementary rights assigned to the territories will not in any way reduce the authority of the National Energy Board over pipelines.
Subsequent to the transfer of legislative powers to the Yukon, Yukon First Nations subject to settlements already in effect will receive a portion of the royalties collected by the Government of the Yukon Territory, as set out in the land claims agreements.
Bill C-8 will allow the Government of the Yukon Territory to exercise its jurisdiction over onshore gas and oil. The territorial government will not obtain greater powers than are given to the provinces under section 92( a ) of the British North America Act of 1867.
In addition, no party to this agreement or this legislation shall modify aboriginal rights or rights arising out of existing treaties protected under section 35 of the Constitution Act, 1982.
This is of major importance to the Yukon First Nations. These provisions ensure that Bill C-8 cannot and will not undermine the advantages the Yukon First Nations have obtained through agreements on land claims and self-government.
In fact, since the bill was presented during the 35th Parliament, further consultations have been held with the First Nations concerned. The Yukon Council of First Nations has indicated its support of the bill.
The Yukon government will be expected to manage oil and gas in a manner that serves the interests of all Yukoners including aboriginal people. I note that the Yukon government is also working closely with the first nations on the matter.
Hon. members should also be aware that Bill C-8 has strong support from the oil and gas industry.
This transfer is clearly in the best interests of the governments of Canada and Yukon as well as individual Yukoners. It is fully consistent with the devolution initiatives taken by previous governments.
With that in mind I urge my hon. colleagues to support Bill C-8 so that the devolution process can move forward and Yukon can continue to evolve politically and administratively.