Mr. Speaker, I am pleased to rise in support of the motion put forward by my colleague from Bras D'Or. A fellow bluenoser, I might add, she certainly brings a unique and special perspective to the House. She faces many challenges from the many communities which comprise her new federal riding of Bras D'Or.
The motion speaks to the economic future of many of these same communities. The timing of the debate on the motion is quite appropriate in light of the recent troubles in the Phalen colliery.
I would also like to speak to the overall question of the future of the Cape Breton Development Corporation better known as Devco. While not a Cape Bretoner, my home in Pictou county shares the industrial Cape Breton tradition of coal mining.
For many years coal was a staple in the local economy in my constituency. Our most recent venture into the Westray mine, which ended in disaster, is certainly a sad reminder of the dangers associated with this industry in Nova Scotia in particular.
Coal mining is a tradition that must adjust to the realities of the 21st century. In my view the development of the Donkin mine under the auspices of Devco is the best way to ensure successful adjustment that has long term benefits for Devco, employees, taxpayers and those who supported Devco operations throughout the years.
Devco management announced that the corporation's five year plan last year completely ruled out the development of Donkin, emphasizing instead the Phalen colliery. Phalen has a history of instability and yet Devco management in its wisdom placed all of its mining eggs in one basket.
The Devco corporate plan also ruled out the identification of export markets despite significant evidence of the economic prospects of the exports of coal. As my colleague quite eloquently stated, it is apparent that coal still has a place in the industrial world. Tying the coal from Donkin to the coal markets locally in Nova Scotia is a huge mistake in my honest opinion.
Like all natural resources we have to try to capitalize on the ever increasing access to world markets that exist. We should keep in mind that the development of Sable gas in Nova Scotia could certainly have a significant impact on the local markets as it pertains to coal.
Last year during the hearings of the Senate committee on the future of Devco, Devco officials were warned frequently and consistently about the dangers of focusing solely on the Phalen mine to the exclusion of Donkin. Many industry analysts urged Devco to target foreign markets which would in fact require coal from the Donkin mine. Devco management, again in its wisdom, refused to do so opting to sell the Phalen coal to a strictly domestic market.
Devco management then turned around and announced plans to sell the Donkin mine to a private operator by the name of Donkin Resources Limited, DRL, for a single dollar. One dollar would be paid for this mine against a backdrop of millions of dollars that were put into the development of this site.
It is shocking to think that this could happen. The expense to taxpayers is something that should certainly make us all sit up and take notice. It brings to mind the situation that is happening presently in Hibernia where there have been rumblings that the federal government may contemplate selling this resource. It is an industry with perhaps huge potential that might allow the Atlantic provinces, Newfoundland or Nova Scotia in particular, in some way, shape or form, to make giant steps forward toward becoming have provinces. The government is being very short-sighted if it is contemplating such a move.
The situation appears to be moving rather rapidly. The same Devco officials reported that the latest series of rock blasts at the Phalen mine could limit the potential of the mine for future ventures.
Without the future of Phalen and with the apparent position taken on the Donkin mine, what does Devco have left? What remains for Devco? If both of these mines will not be operating Devco is a dead duck. The answer is nothing.
It slams the door on the livelihood—I believe the number was given by my colleague in the New Democratic Party—of close to 700 workers. The impact of the loss of 700 jobs in an area like Cape Breton is difficult to imagine for anybody who does not come from the maritimes. The economic impact of that has expanded perhaps tenfold in comparison to the province of Ontario.
In an ideal world private industry would be able to assume responsibility and risk for developing Donkin, but in the real world and in private industry we know that private industry is often very reluctant and unwilling to make commitments to the future of the workers who would be negatively affected by the closure of Donkin. This is economic business reality but the government has a responsibility. The government must see that the Donkin situation is handled with great care.
Devco management clearly made a mistake in 1996 when it adopted this corporate plan. Not one of the three official parties in the House raised an objection at that time; not the Liberals, not the Reform and not the Bloc. They all gave Devco a free ride and made short-sighted decisions that were having a drastic effect on Atlantic Canada, particularly in Cape Breton.
Is it any wonder the Liberals were then wiped off the electoral map in Nova Scotia on June 2, 1997? Is it any wonder the Reform Party could not even find candidates to run in Cape Breton?
It was left to the Senate to raise objections, the Senate that is often so much under attack. It was the Senate that then brought the matter forward to deal with the issue of Devco's limited corporate plan.
Thankfully the last election restored some balance to parliament and Canadians now have voices from all regions, not just from the west and Quebec.
In conclusion I condone the member for bringing this matter forward in such a timely manner. The historic significance of coal mining not only in Cape Breton but throughout the maritimes is such that we must ensure that we will look at the long term viability of this industry and that we proceed with caution. That responsibility must be assumed by the Government of Canada.