Mr. Speaker, it is kind of a rush, catch-up type of day. I am sure the Speaker knows all about that.
It is a pleasure to be here this morning to speak to Bill C-8. Bill C-8 has been kicking around basically off and on for quite a while. It is an act respecting the Canada-Yukon Oil and Gas Accord Implementation Act. The bill reflects the government's recognition of the important role of oil and gas exploration in the northern territories.
The territories are the site of approximately a quarter of Canada's remaining discovered petroleum and approximately a half of Canada's estimated potential.
Oil and gas exploration and development is an important key to the future economic well-being of the territories. We are already seeing a wide range of possible benefits from such mineral discoveries as the BHP Diamond Mines. I have no doubt that as settlement in the north increases and infrastructure expands we will see an ever increasing benefit to the north from natural resource developments of all sorts.
While the legislation before us today is important to the economic future of Yukon, it is also in accordance with the Reform Party position on two very important issues. First, the Reform Party of Canada strongly supports transferring control of natural resources to the provinces. The legislation calls for the devolution of provincial-like powers to the Yukon territory by transferring the administrative and legislative control over oil and gas to the Yukon government.
The federal government is demonstrating its commitment to political devolution to the Yukon territory. Reform supports increased provincial or territorial control of natural resources and decreased federal control over natural resources including control over the oil and gas industry.
Second, the bill concurs with Reform's belief in the equality of all provinces. While Reform supports decreased powers on the federal level it also supports increased powers for the Yukon government. The powers held by the territory should not exceed those held by any of the provinces. The bill does not transfer greater powers than those held by the provinces under section 92, 92(a) and 95 of the Constitution Act, 1867. As was stated in the unity debate, equality between provinces is absolutely essential to the equal treatment of all Canadians.
While Reformers support the legislation we also have some concerns. In recognition of the unique situation in the north the legislation respects aboriginal land claims and settlement rights. The legislation does not diminish aboriginal treaty rights under section 35 of the Constitution Act, 1982. It is consistent with the legislation concerning wildlife, the environment and land management regimes under this section.
The legislation also states that any inconsistencies will be resolved in favour of legislation implementing the treaties. All these provisions are important to the acceptability of the legislation to aboriginals in the Yukon territory.
The concerns I speak of are with regard to the federal government's retention of the right to reclaim control of land to settle aboriginal land claims. This provision is intended to protect the rights of first nations still in negotiations with the government. However investors may be slow to undertake exploration development projects until land claims are resolved.
This is not to suggest that the provision should be removed, but the government must develop and adhere to a time line for negotiations so that exploration and development are not continually delayed.
It was previously anticipated that negotiations with all Yukon first nations would have concluded by February 1997. The anticipated date was then extended to July 1997. However, as of September 19, 1997 only half of the Yukon first nations had reached agreements while the remaining seven were still in negotiations.
Therefore I urge the government to resolve land claims as quickly as possible so that potential investors can confidently proceed with oil and gas development in the Yukon territory with all the benefits for those who live nearby.
There are also concerns regarding the government's retention of the right to reclaim lands and to take certain actions in the event of a sudden oil supply shortfall. This provision complies with Canada's international obligations as outlined in the International Energy Agency oil sharing agreement. The same international obligations were responsible for the introduction and implementation of the national energy program.
Westerners need not be reminded of the disastrous impact the national energy program had on Alberta's economy during the so-called energy crisis. Because of the very nature of the north with its relatively limited opportunities to obtain income from manufacturing, for example, especially due to difficulties in transportation and lack of infrastructure to support the kinds of development taken for granted in the southern part of Canada, Yukon is extremely dependent on natural resource jobs and revenues. It will therefore suffer even greater hardship than Alberta did should the federal government deem it necessary to implement controls like those used during the last energy crisis.
There must be some commitment by the government to give much more serious consideration to the impact of its actions on the Yukon territory, on the Yukon economy and on the social and economic well-being of the Yukon people should there be an oil supply shortfall or energy crisis.
In short, Ottawa must learn by its errors with Alberta and not treat any part of Canada ever again with such cruel indifference.
The legislation affecting Yukon in this respect should set the precedent for other provinces resulting in amendments to existing legislation that will protect all provinces from economic disasters like that brought upon Alberta under the national energy program.
The power gained by Yukon through the legislation is economic. Not only will the Yukon government have jurisdiction over exploration, development, conservation and management of oil and gas but also over resource revenues. The legislation allows the territory to raise revenues by any mode or system of taxation in respect of oil and gas in the territory. It also gives the territorial government control over the export of gas and oil from the territory.
The bill will reduce the economic dependence of the Yukon territory on the federal government and allow it to develop its own economy as the more successful provinces have already done. Others such as Newfoundland and Labrador are still struggling to get out from under Ottawa's thumb and profit from their own natural resources.
However the legislation keeps the federal government too involved. The federal government will continue to collect resource royalties on annual resource revenues exceeding the first $3 million.
Reform opposes federal collection of resource royalties from resource industries in any province but especially those in the provinces and territories where resource revenues are the foundation of the economy.
Despite those concerns, however, all interested parties have expressed support for the legislation. During the summer of 1996 I had the great opportunity to travel extensively in Yukon with my wife. While I was there I spoke with a broad section of Yukon residents. There were some real concerns over the legislation basically based on being underneath the federal wing for so long and on what would happen when some of the powers were transferred to the people of the Yukon territory.
While these concerns were there and expressed in great detail, there was also great anticipation by people looking for the new opportunities that were to be gained from this piece of legislation, basically for their freedom from the red tape from Ottawa which they have been wrapped up in for so long. I appreciated that and I know where they are coming from. I can see where the opportunity now arises for these people to go further with their endeavours on their own.
The Canadian and Yukon governments have committed also to consult with aboriginal peoples on significant oil and gas decisions affecting traditional lands prior to the completion of land claims negotiations. Otherwise we might have in the Yukon a repeat of the situation at Voisey's Bay in the province of Newfoundland and Labrador.
There a mining company invested billions of dollars to acquire a site but every imaginable hurdle has been thrown in the path of that development. Hurdles are being thrown by the federal government, especially agreeing to delay development at Voisey's Bay while the Department of Indian Affairs and Northern Development spends a few more years, nobody knows how many more years, supposedly working to settle land claims which have been under negotiation for a generation.
I have to wonder when I see how the federal government gets itself involved in something like the Voisey's Bay situation. We have the potential of between 3,000 and 5,000 jobs in a section of Canada that desperately needs those jobs. We all know that the people of Newfoundland and Labrador desperately want to go to work, yet the federal government is basically stopping them from doing so. I have to wonder at the power we allow our governments to hold in certain areas such as this one.
We know that Newfoundland and Labrador is supposedly one of the poorer provinces in Canada. Yet it has the chance right now of probably becoming the Alberta of the east with the Voisey's Bay project. And here we sit holding up maybe one of the greatest developments in the world at this point in time. I have to question the wisdom of this government on that issue.
Sometimes it seems there are departments opposing northern development rather than working to assist northern development. In that case I am particularly pleased to see the federal government stepping back and turning oil and gas exploration and development over to the local level of government closest to the situation and best able to deal with it, namely the territorial government.
We all know beyond a shadow of a doubt when we give people sitting 1,600 or 2,000 miles away from any given situation the power to make decisions on things that should be left to the provinces, the territories or the local governments, we seriously jeopardize Canadians' ability to further their lifestyles in this country.
This legislation respects the unique situation north of 60 without compromising the principle of equality. Most important, this act incorporates grassroots concerns and amendments. This legislation is part of a greater process that involves the devolution of control not only over oil and gas but over education, health care and economic development in general.
This transfer of power will give the Yukon people their proper voice in the way their lives are to be governed and greater power over the quality of their lives. Therefore Reform generally supports this legislation and recognizes it for what it is, a most important step in the political evolution of the Yukon territory.
I would like this House to study the concerns that we have in regard to this piece of legislation and to fully understand maybe finally that more power is not necessarily more beneficial when it is controlled in Ottawa as we are doing today in this House.