Mr. Speaker, I am from British Columbia and we are taking a great interest in this debate. I want people in Atlantic Canada to know that Canadians from coast to coast to coast agree with them on this issue.
I have an interesting seating structure in the House. Beside me I have a member from Manitoba. Beside him is the member from St. John's. We all touch salt water. We all have issues with the federal government and the way it chooses to try to control either our resources or our resource revenues.
British Columbia has an offshore oil and gas resource and we are now past the 30 year mark on a federally imposed moratorium that is depriving British Columbia of an opportunity to make its own choices on that resource. This is something that needs to end, and soon, and we have two reports that are going to be tabled in the next month, I presume. They will focus on a summary of public opinion on the issue and a summary of first nations input. We are expecting a decision on that moratorium in 2005, from both our provincial and our federal governments.
However, when we look at the precedent in Canada, of course it comes from Newfoundland and Labrador and from Nova Scotia. Over the last three months I have talked to basically every significant major participant in the oil and gas sector in Canada. There is one message that I can boil down from what they have said about what we are talking about today, and that is, if the offshore oil and gas royalty regime in place today in Nova Scotia and in Newfoundland and Labrador persists, they are simply not interested.
They are not interested because as long as the feds continue to control the resource revenues, the taxation and the regulatory regime in the way they are now, then there is so much unhappiness at the provincial level. The provinces are not in control of their own destiny, their own incentives, and their own opportunity to do things in the way that is required. Industry then becomes collateral damage in all of this jurisdictional problem and there is a squeeze for revenues that makes these projects untenable, so this is a very significant debate.
We have a deep-rooted political and philosophical division between the party I represent, the Conservative Party of Canada, and the Liberal Party of Canada. If we dig into the Liberal Party's philosophical roots, its deep-seated roots, one can go back to statements by Marc Lalonde when he was principal secretary for Pierre Elliott Trudeau. In some of the early constitutional wrangles on resources, he said in reference to oil and gas that “we will have no more Albertas”. The Liberal Party has never changed its spots.
Even if today the Liberal Party were to fulfill the Prime Minister's oil and gas promises of June 5 and June 27, one could bet that at the first opportunity the Liberals would be trying to find a way to undo or undercut the deal or somehow manipulate it so that it really was not 100% of royalties going to Newfoundland and Labrador and to Nova Scotia. This is something that needs to change.
When the member for St. John's East talks about what a benchmark or significant moment this is for Newfoundland and Labrador, I totally agree, but I go beyond that. This is potentially a watershed for how the provinces and the federal government deal with and arrange jurisdiction over our resources.
Many of us who are from the west coast or other parts of Canada have spent time in Newfoundland and Labrador. We know how strong, independent and full of pride those people are. They deserve no less than the people of Alberta, who control 100% of resource royalties from their oil and gas resource.
I am a Canadian who is older than Newfoundland and Labrador. The province came into this Confederation in 1949. In 1949, the people of the province brought the offshore oil and gas with them, probably unknowingly at the time, but Alberta had already taken jurisdictional control of its resource in 1930. There is a grand precedent here and one that we need to overturn in terms of ensuring that the provinces are the beneficiaries of their resource revenues. Otherwise, the whole system does not work.
There are many people observing this debate today who are from beyond Newfoundland and Labrador and Nova Scotia. This debate does not just include the 10 provinces. The premier from the Northwest Territories is very interested in this debate. It affects the Mackenzie Valley pipeline. Right now, resource royalties in the Northwest Territories amount to about 4% after the clawback and all the other arrangements. This means that there will be no progress on the Mackenzie Valley pipeline proposal until that is dealt with. Let us guess what the precedent is. It is Nova Scotia and Newfoundland and Labrador, the very issue we are describing today. I completely sympathize with the direction they are taking. If Canada chooses not to resolve this in very quick fashion, we could potentially lose the opportunity, because the Alaska project has now received the full backing of the state of Alaska and the federal government, reconfirmed by the U.S. election this week. That project will proceed and ours will not, which would be a very negative thing for the country.
There is a very strong message for Canadians about all of this. The Liberal Prime Minister made promises on June 5 and June 27 for election purposes, the promise to Nova Scotia on the day before the election. All of his promises mean nothing after the election. The Liberals should be held accountable for that.
I will give the House some examples of other promises the LIberals made, although I realize my time is almost up. They said the border would be open by the end of the summer. They knew otherwise. They said that we in the party I represent were warmongers. Do members know why they said that? Because we wanted to fix the equipment and stop the rust-out of our military equipment within the Department of National Defence and fix other basic structural problems, and let us look what has happened. We have been proven correct on all of that.
The Liberals said that we were exaggerating the numbers in the budget. Who was exaggerating? What was determined very recently? Our surplus was $9.1 billion, not $1.9 billion and--