Madam Speaker, the government is aware of and recognizes the concerns of local communities related to the proposed liquefied natural gas, LNG terminals, in Passamaquoddy Bay. We would like, however, to assure them that Transport Canada is monitoring the situation closely and that our government has indicated Canada's specific interests in this issue to the United States government. In addition, we will work with the province of New Brunswick to ensure that Canadian interests are respected.
Based on the action taken by the government in the 1970s and 1980s, when an oil refinery was being proposed in the same area, Canadian communities requested that Canada refuse the passage of LNG ships through the Canadian waters of Head Harbour Passage.
Although no proposal for an LNG terminal on the U.S. side of Passamaquoddy Bay has yet been filed with the United States authorities, the Government of Canada is in the process of commissioning a study to determine what the potential impacts will be and it will include various government departments that will do a factual understanding of the possible impacts in order to make an informed decision.
Given the findings as to the risk of pollution and the impact of a significant oil spill in the area, our government some years ago concluded that the environmental risk was unacceptable. Therefore, we did not grant permission for oil tankers to go through Head Harbour Passage.
However, I emphasize that the conclusions of these risk studies are for the most part not applicable to LNG terminals and associated LNG ship traffic, despite the same geographic area. The conditions in terms of environment with an oil slick cannot be compared with what might happen with an LNG spill which is a vapour that would quite easily disappear. It would not affect marine birds, mammals, the fisheries and other shore areas of that specific area of New Brunswick. The cargo, as we mentioned, does not have the same difficulties in terms of dispersing in the prevailing wind, but the fact that a fire could occur would mean that there would be concerns.
The Government of Canada is undertaking a study to determine the potential impacts. We also are considering the fact that most areas of eastern Maine have not approved terminals of this nature, so it is up to further consideration.
I can assure Canadians that the Minister of Transport, the Ministers of the Environment and Fisheries and Oceans are very much aware of this file and will do everything within their power to ensure that if it should occur in terms of an application to U.S. authorities, that we will study the matter with due diligence.
The hon. member lives in that area. It is a tremendous area for tourism. It has a great economy in terms of fisheries. I am sure our government would not want to see anything happen to that very rich area of southwestern New Brunswick.