Mr. Speaker, I am pleased to speak today at second reading of Bill C-5, An Act to amend the Indian Oil and Gas Act. The Indian Oil and Gas Act was first introduced in 1974 and really has not had any major amendments. There were only some minor amendments in 1995.
This is the third time in as many sessions of Parliament that these more substantive and modernizing amendments have been brought forward. Unfortunately, between early elections and early prorogations, there has never been enough time in the parliamentary calendar for consideration of the substance of this bill. In fact, merely by getting to second reading, this version of the bill has outlasted its predecessors.
For the benefit of all who have a stake in this bill, there will hopefully be no more parliamentary hiccups keeping it from continuing through the proper legislative process here and in the other place.
Since the bill in its previous form was introduced in the last session, I have had the opportunity to read it and to study the background information explaining why these changes are needed at the present time.
In the past number of years, we have seen a massive increase in the natural resources sector in Canada, particularly in oil and gas exploration. My own riding, while not known for its onshore oil and gas, has significant offshore potential. We are also one of Canada's main mining regions, and in fact the Voisey's Bay nickel project in Labrador is an example of how resource industries and aboriginal peoples can work together.
The people of my riding are also well acquainted with the oil and gas industry in other parts of Canada, especially in Alberta and other western provinces, where many of the people I know have gone to work on petroleum industry projects. The recent economic downturn is affecting these industries, just as it is touching all industries and sectors of the economy.
We on this side of the aisle are very concerned about the economic direction of the country and the need for stimulus in the short term to get people working and get industry moving. However, in the long term we also have to look at making Canada a good place to do business and taking the steps to ensure that our resource and other industries will resume their growth and provide jobs for the future.
We also have to take steps to ensure that first nations people are brought in as true partners and participants in the development of natural resource industries.
During the latest boom, many mining and petroleum projects were crying out for employees, due to an acute labour shortage. Despite the current economic situation, the long-term trend is that Canada will require more skilled workers in all sectors of the economy, including the natural resources arena.
At the same time, there is a large and growing population of aboriginal Canadians, and far too many aboriginal communities are at an economic disadvantage. There is an incredible opportunity here to develop the industries with aboriginal people as owners, participants, partners and workers over the coming years and decades.
Modernizing the Indian Oil and Gas Act is one step that may help achieve these goals in respect of oil and gas exploration and development on first nation reserve lands. This bill contains a number of technical changes to the way oil and gas resources on reserves are administered and managed. I will describe the broad strokes of these changes.
The bill addresses the regulatory gap between on and off reserve oil and gas activities. Second, the bill would expand the powers of councils of first nations to delegate any of their powers under the act to any other person, effectively allowing first nations councils to hire experts to act on their behalf.
The law would also require a minister to exercise his or her power under the act only if the council of an affected first nation has given its permission. The bill includes a non-derogation clause, which states that nothing in this act shall be deemed to abrogate the rights of Indian people or preclude them from negotiating for oil and gas benefits in those areas in which land claims have not been settled.
A new section added to the bill governs the payment of royalties from oil and gas recovered on first nation lands, which are paid to the Crown in trust for the first nation in question. There are also greater audit capabilities.
There is a new section providing further powers to make regulation for the purposes of the act. One interesting provision, from my point of view, is the power to require petroleum operators to employ members of the first nation in question in the exploration or development of oil and gas from first nations lands.
Again, my own riding saw similar issues during the exploration, construction and development of the Voisey's Bay project.
I look forward to hearing more about how similar adjacency or hiring rules will apply under this bill to the oil and gas industry.
I will also be interested to learn from the experiences of first nations in other parts of Canada, who may have valuable lessons for people and communities in my riding.
My party's position is that we support the bill in its broad strokes and agree that a package of amendments must be brought forward for consideration. I have already had productive meetings with some of the stakeholders, like the Indian Resource Council and look forward to hearing other points of view, both one on one and in committee. It is in committee that I trust we can get down to some of the details.
The industry is generally positive towards the package of amendments contained in the bill, indicating that it will bring greater clarity, strengthen accountability and enhanced protection of first nations, environmental, cultural and island gas resource. If there are differing viewpoints, I look forward to hearing them once the bill has been referred to committee.
With the new spirit of openness and co-operation that is said to pervade in Parliament these days, I trust that all parties will be interested in hearing from a number of witnesses representing those with an interest, one way or another, in this legislation.
I also trust that the government will be willing, where appropriate and necessary, to be open to amendments if the committee's work leads us in that direction.