Mr. Speaker, the coastal communities of the five provinces bordering the Gulf of St. Lawrence are concerned about this government's lack of commitment regarding the responsible management of natural resources. Their concern seems justified.
The Canada-Newfoundland Offshore Petroleum Board recently rejected an application from the young oil company Corridor Resources to suspend its drilling permit.
While I applaud the board's decision, I am concerned about the arguments presented by Corridor Resources for the suspension of its permit. The oil company is experiencing financial difficulties. The Gulf of St. Lawrence's ecosystem supports all bordering coastal communities. How is it that a young oil company is authorized to conduct operations in such a fragile area, without adequate financial resources to do so?
I note that the department has approved a Corridor Resources application for a two-year extension of its drilling activities in the Gulf of St. Lawrence and allowed it to dispense with the deposit of a $1 million guarantee. This means that the drilling permit of that oil company was renewed with a two-year rent break, which amounts to $750,000. Normally, that $750,000 would have been paid to the Government of Newfoundland and Labrador. Instead, it will stay in the pockets of an oil company, even if it ends up making a fortune in the gulf.
Is that the government's idea of responsible development, to give money back to oil companies? And what about the very real concerns of Canadians in the five provinces bordering the gulf? It seems to me the department is prepared to deliver permits to any drilling company, regardless of its financial stability.
The government's eagerness to give presents to oil companies does not inspire confidence among Canadians living in the gulf's coastal communities, and nor does its refusal to create an environmental assessment panel, as requested by the board and by Canadians living in the gulf's coastal communities. Even the Canadian Association of Petroleum Producers supports the establishment of a federal panel.
Since last summer, the board has had to change its way of assessing the environmental impact of the drilling project several times. The board, which only has the authority to monitor oil and gas development in Newfoundland and Labrador, does not have the power or the resources to deal with our concerns. That does not make sense: the Conservatives seem to show a lack of respect by giving the board such an important mandate without all the necessary powers.
Once again, I am asking the government to establish an environmental assessment panel with the necessary powers to evaluate the impact of all oil and gas development in the gulf. The establishment of this federal panel would reassure Canadians living around the gulf. This is long overdue. We have been asking for it for months now, and we are asking for it again today. I hope the department will agree to this request.