Madam Speaker, I rise today to speak on Bill C-8, the Canada-Yukon Oil and Gas Accord Implementation Act.
The bill represents the first bill I have had the opportunity to work on both at the parliamentary level and the committee level in the Indian affairs and northern development portfolio. I feel it represents a step in the right direction. It is not perfect but it is a step in the right direction.
The bill transfers authority to the Yukon territorial government regarding exploration, development, conservation and management of onshore oil and gas resources, oil and gas pipelines, the raising of money in respect of oil and gas in the territory and the export of oil and gas.
At the same time the bill allows the federal government to regain control and administration of oil and gas on Yukon lands in order to settle or implement land claims for aboriginal groups.
The bill was formerly known as Bill C-50 but died on the order paper with the call for the election in April 1997. It incorporates some changes to the original Bill C-50 in order to address concerns raised by aboriginal groups, specifically the effect of the bill on their land claims agreements and self-government. I will speak in more detail on this matter later.
Bill C-8 is the implementation process for the Canada-Yukon oil and gas accord. The accord was the product of a process begun in 1987 under the minister at that time, William Hunter McKnight. It was a beginning of a process to devolve responsibility from the federal government to the government of Yukon with the intention of conferring powers analogous to those held by provinces.
Currently all oil and gas management authority in Yukon is controlled by the Department of Indian Affairs and Northern Development in its energy policy area for the territories. With Bill C-8 control over oil and gas passes to the Yukon government with the application for onshore resources and an area adjacent to the northern coast, including Shoalwater Bay and Philips Bay.
The area referred to as the north slope was of special concern to the aboriginal peoples, and in particular the Inuvialuit Regional Council. The council representing the signatories to the Inuvialuit final agreement in the Northwest Territories expresses reservations about the extent of protection for this area in the bill.
Shoalwater Bay is an area of significant importance to the Inuvialuit for the harvesting of beluga whales. As such it wanted reassurance from the federal government that this area should be protected from development so the traditional hunt would not be jeopardized.
The Inuvialuit was assured by the Department of Indian Affairs and Northern Development that the area would be protected with part of the area being a national park. This is explicitly removed from the development in Bill C-8.
At the same time the federal government informed the Inuvialuit that Shoalwater Bay would not be developed but did not include this area specifically in the legislation. Instead it is protected by implicit understanding outside the bill. It will be imperative for the federal government to honour this commitment to the Inuvialuit.
Of the 14 aboriginal groups in the Yukon area eight have yet to settle land claim agreements with the federal government but are presently involved in negotiations. This was another area of concern for first nations, specifically how the bill would affect land claim negotiations.
These concerns were expressed during consultation with Yukon first nations, especially the eight bands who are signatories to the Inuvialuit final agreement but have not yet settled land claims.
To alleviate uncertainty clause 8 was added to the legislation allowing for the administration and control of oil and gas to revert to the governor in council for the settlement of land claims. With this addition, the rights of aboriginal groups are preserved while ensuring that future land claims will be resolved and implemented properly. Nothing in the legislation is to abrogate or derogate existing aboriginal and treaty rights. This is to protect aboriginal rights under section 35 of the Constitution Act, 1982.
While the transfer of authority is to the Yukon government, the federal government will disperse an amount equivalent to revenues from all onshore resources since April 1, 1993. With the oil and gas revenues in Yukon currently valued at $2 million, this represents a significant amount of money that would be accruing to the territorial government. Following the transfer, onshore resources will be collected by the Yukon government with offshore resource revenues divided according to a formula for revenue sharing.
Under the royalty sharing formula Yukon first nations will receive 50% of the first $2 million collected by Yukon. For any amounts greater than $2 million the reparation falls to 10%. The average per capita amount received by the first nations cannot exceed the average Canadian per capita income.
This is a bill the Progressive Conservatives started and we continue to support it. The one weakness or complaint that should be raised in this House is the inadequate job the Department of Indian Affairs and Northern Development did in involving public participation in this process.
When I visited Whitehorse after this bill had received first reading in the House and after we had already had a video conference with Yukon region representatives, I met with many groups who would have appeared before the committee but were not given an opportunity by the present government.
With that said I will still support this bill because in the end it helps Yukon. It recognizes aboriginal rights and moves the Yukon government closer to self-sufficiency and hopefully one day to provincial status.