Madam Speaker, I am pleased to speak today to the opposition motion of the New Democratic Party. I will take the time to read it first so that I can then comment on it more easily.
That, in the opinion of the House, the government should recognize the public health impacts of smog and the failure of voluntary emission standards by legislating mandatory improvements to vehicle efficiency in all classes of light duty vehicles sold in Canada
For starters, I should say that my party intends to support the opposition motion put forward today by the NDP. However, I do have some criticism of it. In our view, it must be said that this motion is vague and inadequate. Why is it vague? Because it fails unfortunately to specify the extent to which we expect the automobile industry to improve the efficiency of light duty vehicles. Is the standard 25% or 10%? No one knows.
Of course we must take a regulatory approach. That is what we think on this side of the House. However, we must never forget that our regulations must be consistent, not with the American government standards—as is currently the case in the Canadian Environmental Protection Act and the regulations under it—but rather with the practices and regulations recently adopted in California. It is important to remember that.
Smog has been a reality in Canada for a number of years now. However, Quebec was alerted to it more than ever recently during several days in early February when Montreal and the Outaouais were hit by a smog alert. This was quite unusual. How could Montrealers and the people of the Outaouais possibly expect a smog alert in February? This points to a major problem which reminds us that we must change our ways of doing things and our consumption patterns.
Before I go on to the automobile industry and its impact, we must remember, first and foremost, that it is not just vehicle exhaust that causes this smog. Wood stoves and wood heating are also responsible for smog. As recently as between 1987 and 2000, there was a 60% increase in wood heating in Canada compared to only a 20% increase in rental housing. This means that the number of people who decided to heat their homes with wood more than doubled in 15 years. Naturally, that has a major impact on air quality, especially in urban areas like Rosemont—La Petite-Patrie, which I represent in this House.
There is a mandatory five-year review of the Canadian Environmental Protection Act. At present, wood stove manufacturing standards have been harmonized with EPA standards. It may be time to consider, during our examination of the relevant sections of the Canadian Environmental Protection Act, if stricter standards on wood stove manufacturing could not be implemented.
The crux of the problem is the transportation sector as a whole. We must remember that this sector is responsible for 25% of all greenhouse gas emissions in Canada.
So, this is not an inconsequential sector. Just before I started my intervention, I was looking at the figures, and the oil and gas sectors are responsible for 18% of these emissions. So, the transportation sector is the primary emitter of greenhouse gas in Canada, with 25%. It is even expected that by 2010, there will be a 32% increase in greenhouse emissions in the transportation sector compared to the 1990 levels, if nothing is done, and I want to emphasize that point.
This means that we have to make some choices. If Canada decides to maintain the status quo and not implement any measures, greenhouse emissions will have increased by 32% compared to 1990 levels. So we are forced to take action.
Until now, the government has chosen to take a voluntary approach with the auto industry, among others. Ultimately, this approach means that the auto industry is being trusted to improve vehicle fuel efficiency.
But that begs a fundamental question. Since there are quite a number of sectors in Canada—I am thinking of manufacturing, pulp and paper, steel—how come the federal government has decided to exclude the auto industry from the large industrial emitters?
When 25% of emissions are generated by the transportation sector—and there is a major correlation between greenhouse gas emissions and motor vehicle use—why was it decided to exclude the automotive sector from the large industrial emitters?
If the government, through its Minister of the Environment or Minister of Natural Resources, had announced to us today that the automotive industry was excluded from the large industrial emitters because the technology did not exist, I might almost understand. That is the case in certain industry sectors, such as cement manufacturing, for example. There we have substantial greenhouse gas emissions, and the technology to improve the energy balance of that industrial sector unfortunately does not exist. If that were the case for the automotive sector, I might almost understand.
But no. The technology to improve the energy efficiency of vehicles is available. So why are we not forcing the automobile industry to make better vehicles? When the technology exists, why do we continue to apply a voluntary approach which in recent years has produced no results? Some will say it is for economic reasons. I was listening to the hon. members from the Conservative Party telling us earlier that we had to understand that the vehicles produced in Canada were being exported.
It is as if to say that what has been done in California, which has a population of over 25 million and a market comparable to Canada's—so it has similar economic conditions—is good for California but not for Canada.
The economic argument does not wash, because the Canadian market is comparable to the California market. So what can be done in California can most certainly be done in Canada.
I look, among other things, at the action plan on climate change that was tabled in November 2002. The section on energy efficiency states that the automotive sector would be required to make an effort to reduce greenhouse gases by 5.2 megatonnes and improve automobile efficiency by 25%. The plan is that specific.
Unfortunately, the New Democratic Party motion does not contain this level of effort that we are demanding of the automobile industry. We would have liked to see that 25% threshold in this motion. What the automobile industry has been telling us lately is that it is not interested in any norm for improving vehicle efficiency by 25%.
That industry tells us that it is certainly prepared to reduce greenhouse gas emissions by 5.2 megatonnes, but it does not want to have a standard comparable to California's. It prefers the status quo. The status quo, what we have at the moment, is a harmonization of the vehicle manufacturing standards with those of the federal government, the EPA.
There is a flagrant injustice being imposed on the various industrial sectors at this time. For example, the manufacturing sector—not the Quebec manufacturing sector, but the sector as a whole—has made a 7% reduction in its greenhouse gas emissions and the reduction imposed on it is 15%. How can anyone claim that what is being negotiated at this time is fair?
An industrial sector that has reduced its greenhouse gas emissions by 7% gets a 15% reduction imposed upon it, while an industrial sector like the auto industry, which has the technology, would not be included among the major emitters. There is something inequitable here; the government's proposed approach is unfair. A few months ago, the government announced a multi-million aid package for Ford. No problem, if they want to help that sector, and that particular company, that is fine with me. But, how can that company use the taxpayers' money without being prepared to apply more stringent energy efficiency standards? Ought this assistance to Ford not to have been conditional on improved manufacturing so as to produce more energy-efficient vehicles?
When the Commissioner of the Environment speaks of strategic environmental assessments, that is exactly what she is referring to. What does she say about this? That tax measures, financial assistance, is being provided to certain companies without due consideration of sustainable development and environmental protection.
Take Bill C-48. This is a bill that gives some $250 million a year in tax incentives to the hydrocarbon industry. Fine. The industry gets tax incentives and financial assistance and what do we get in return from these sectors that do not even have to sign a voluntary agreement with the federal government to reduce their greenhouse gas emissions by 15%? What do these sectors have to say about this?
I was reading the steel industry agreement. It is worth a read. Two agreements were signed by the federal government: one with the pulp and paper industry and the other with the steel industry. If you take the time to read the agreement, you will see that it says that the industry will enforce a 15% reduction of greenhouse gas emissions provided the competitiveness of the industry is not affected. This is based on industry studies.
So, the industry is prepared to accept federal assistance—that is the case with Ford—but it is not prepared to enforce stricter standards to improve vehicle efficiency by 25%.
What should be our direction in the coming years? In my opinion there are two approaches. It takes a fiscal and budgetary approach together with a regulatory approach. Let us develop a regulatory approach to make—and this is the case in the automobile industry—existing technologies more energy efficient.
We are not talking about research and development in this economic sector. We are talking about technologies that already exist. The government has a responsibility when faced with an industry that refuses to make the manufacture of vehicles more efficient.
Let us implement regulations that harmonize with California's, a regulatory approach, as the New Democratic Party proposes, so that, at the end of the day, new vehicles that come on the market will be more energy efficient and thus will help reduce smog. That is not enough: this regulatory approach must be accompanied by a tax-based approach to assist the public choosing to use sustainable transportation.
Sustainable transportation is help for public transit. How can the government not have included the very simple measure of making the cost of a public transit pass tax-deductible in its budget?
On February 23, let us hope that the Minister of Finance, who has been described as green by the Minister of the Environment—I have faith in what the Minister of the Environment says about the Minister of Finance—but if he is serious, he will announce on February 23 that the cost of a public transit pass will be deductible. That is the first step.
As a second step, there must be a tax incentive for people who decide to use a hybrid vehicle. A few months ago I bought a hybrid vehicle, which cost me $10,000 more than a conventional vehicle of the same make with the same options.
While the federal government is giving tax incentives to the oil industry, through Bill C-48, a responsible individual must spend an additional $10,000 to buy a more ecological vehicle. That makes no sense.
In this budget there must be a tax incentive for the citizen making a decision. What is $10,000 for a person who decides to live a cleaner life, when $250 million per year is given, with one stroke, to the oil industry? There must at least be some balance in tax policy between the aid given to these polluting industries and the aid given to the environmental industry in Canada. That must be our approach.
Canada could decide to adopt this strategic environmental assessment. As we know, in 1994 there was a directive from Cabinet—not the members of the House of Commons—to the effect that all departments ought to apply strategic environmental assessments to measures they were deciding upon. Plans, policies and programs should all be subjected to that test.
Unfortunately, this is not the case. If the government decided to enact legislation here in this Parliament to force all departments—among them Transport Canada and Finance in particular—and the commissioner was not very kind toward the latter, indicating that it was dragging its feet—to apply strategic environmental assessment to departmental plans, policies and programs, we would likely not be where we are today. It would be very likely that Canada could be presenting the Montreal conference in September with a better record as far as energy and greenhouse gas emissions are concerned than the one we have at present.
I will again point out that my party will be supporting the NDP motion.