Mr. Speaker, we are currently debating Bill C-33, but more specifically a report stage amendment affecting section 140 of the act. I would like to remind the House what the amendment requires.
The current wording in Bill C-33 is that under subsection 6, within one year after the subsection comes into force and every two years thereafter, a comprehensive review of the environmental and economic aspects of biofuel production in Canada should be undertaken, et cetera.
The proposed amendment which we are debating at report stage is that in addition to the general requirement to review the environmental and economic aspects of biofuel, it would also include a review of the progress made in the preparation and implementation of the regulations referred to in subsection 140(1).
The situation is that regulations can be made from time to time. At this point I am not aware of regulations being proposed in regard to biofuel production, or what current regulations may exist under the EPA for that matter, simply because that bill would have to be before us at the same time. That is a predicament we have as legislators. When we deal with bills, we do not have available to us at the time regulations that are required and prescribed to be prepared under the legislation. Those things come after a bill gets royal assent. Parliamentarians in both Houses do not get an opportunity to look at regulations. They may have an opportunity to ask the officials to give them a general idea of what might be proposed, but it is a circular argument because the officials may very well say that we cannot know what the problem of the member is, as he indicated in his speech, about what the act requires.
Regulations are enabled by the legislation; it is not the reverse. We have a situation here where I am not exactly sure whether it is just a hope that should there be additional regulations proposed, if they were relevant to the section, that a review would be done. It is not clear to me right now the basis for the change, unless one knows what is being contemplated in terms of the proposed regulations.
Before we vote on this, I want to be informed and maybe other members do as well, about what might be there. Certainly in terms of the preparation of any regulations, we are never going to know that, but in terms of the implementation, it would presume that there are existing regulations which have not been implemented for some reason, that they are waiting for further data or whatever, and it is pretty hard to review something that has not been implemented.
This whole section does require a review one year after the section comes into force and every two years thereafter, so it may come into play somewhere down the road.
Having dealt with the report stage issue, I want to follow the line of debate at report stage with some of the comments that members have expressed with regard to the world food crisis. Some have decided that the world food shortage crisis we are going to discuss is in Canada. There is not a food crisis in Canada and I think we understand that. The public is very concerned about the balance between the use of agricultural land to produce crops for biofuel purposes.
The most prevalent source right now is corn. Corn obviously is a major staple used in food production and even in exported products. When we look at how the costs of various aspects of producing food or fuel work through the economy, it is not a simple thing of whether that corn is being used to feed people or to produce fuel, and whether one is causing some distress on the other in terms of the objectives.
Obviously the science is still being worked on, but the results are fairly clear that the benefits of corn based ethanol with regard to greenhouse gas emissions are not great. There are other forms of producing ethanol, such as from straw and even from municipal waste, which calls out for research. There will have to be a lot of work done to make sure there is an efficient and appropriate use of the crops that we grow not only in Canada but around the world. Canada could be a leader on the research side to ensure that the land use is appropriate and that we get the significant benefits through the research.
Bill C-33 proposes that all fuel have 5% ethanol content by 2010. Others have proposed that it be 10%. The bill would involve spending some $2.2 billion which would help ensure that farmers would be able to grow the crops that are applicable to their end use. It would also help build ethanol plants.
There are some interesting things going on in the area of biofuels, but we cannot ignore the food shortage problem. There are some arguments that maybe the current activity in Canada with regard to biofuels is affecting it, but the ethanol role with regard to food shortage actually is very small. We must take into account the rise in the cost of fuel. As the price per barrel of oil goes up and is at a record high, the cost of food goes up. All of a sudden the economics of food production and the impact on the whole food supply chain becomes very significant to the argument.
We cannot just say that growing a crop for biofuel purposes is causing a world food crisis. It is relevant and it depends on the magnitude, but there is such a large number of other factors that it is not a cause and effect. It is not black and white. It is not simple.
On top of that, we could probably make some arguments that if we do not deal with the greenhouse gas emissions problem and its impact on our environment, we will have more aberrant weather, more violent storms and more crops will be destroyed. It is almost a circular argument. It is very important to understand that this is not just a two variable equation.
In addition, I was doing a little research and found that the dietary habits in India and China are changing noticeably. In India and China more and more meat is being consumed. That line is going up, to the extent that if there is more consumption of meat, there is a need for more feed, which means that more crops need to be grown and more and more of the crops will be allocated to a significant population component of the world, being in India and China. The dietary habits in India and China will have more far-reaching implications on the demand for corn and other crops.