House of Commons Hansard #16 of the 41st Parliament, 2nd Session. (The original version is on Parliament's site.) The word of the day was energy.

Topics

Opposition Motion—Keystone XL PipelineBusiness of SupplyGovernment Orders

11:30 a.m.

NDP

Hélène Laverdière NDP Laurier—Sainte-Marie, QC

Mr. Speaker, I would like to begin by saying that I will be sharing my time with my colleague and friend from Ottawa Centre.

We experienced this in Quebec: we stripped our land of its natural resources and shipped them to other countries as quickly as we could. Rip it, strip it and send it so others can build bridges and all sorts of things.

We experienced this. At some point, we realized that it was not a brilliant approach and we learned our lesson.

Unfortunately, the Conservatives have not learned from the past or from others. I believe they have not learned because they do not want to. They do not want to know, as we say. They have their blinkers on and they just keep going, without caring about anything and without looking past their noses.

As the Prime Minister said recently, they don't care.

However, the New Democrats care. That is why we have presented this motion today, the motion presented by my colleague, the member for Burnaby—New Westminster, whose personal commitment to this issue I really admire.

There are two main problems with the Keystone project. First, it is a mismanagement of our natural resources and our economy and, in a nutshell, it is a mismanagement of our future.

The Prime Minister's government is obsessed with natural resource development, often to the detriment of other sectors of our economy. All it wants to do is export our crude oil.

As the premier of Alberta said, moving crude oil is like destroying a plot of land, selling it and then handing the farm down to the next generation. If we want to properly develop the Alberta oil sands, we have to meet three basic conditions. First, we have to do it in an intelligent way. That means that we have to consider our long-term interests, which, I believe—and this is very important—include protecting our environment and everything that sustains us. The third condition is that we have to think about the future, especially that time when the oil will be gone.

What the government is proposing does not meet any of these three conditions. I would like to quote Gil McGowan, president of the Alberta Federation of Labour. At the National Energy Board hearings on the TransCanada Keystone project held in December 2007, he said:

What we fear is that the consequence of this particular action will be to deny Albertans literally thousands of high-paying, long-term jobs in upgraders and refineries....[E]very barrel of bitumen shipped down the Keystone pipeline or other similar proposed pipelines is a barrel of oil no longer available for value-added production and job creation here in Alberta.

However, the government is stubbornly insisting on going forward with this project. With such an approach, it is not surprising that Canada now has a trade deficit even though we had a surplus when the Conservatives took office.

I have other important concerns. In 2010, the oil sands accounted for 7% of Canada's greenhouse gas emissions. That is expected to rise to 14% by 2020.

Like the Liberal governments before them, the Conservatives—other than one leader who never became Prime Minister—do not take climate change seriously. However, there comes a point where we must do just that.

Since 2006, the government has been promising to regulate emissions from the oil and gas sectors. If I am not mistaken, it is now 2013. Nothing has been done for seven years. Is this because of ill will or incompetence? Seven years seems like a long time to wait to resolve such an important issue. Worse yet, the Conservatives think that others are not aware of what is happening. They are a bit like children who believe that they can behave however they like and still get whatever they want. Unfortunately, that is not how things work.

We know that President Obama has serious doubts. Although he says so in a very diplomatic fashion, the reason for his doubts is quite clear. President Obama said that he would evaluate the project based on whether or not it will significantly contribute to carbon in our atmosphere. He added that there is no doubt that Canada, at the source, could potentially be doing more to mitigate carbon release.

What was our Prime Minister's response? He said that he would not take no for an answer. We have to wonder what he will do. Maybe he will close the embassy in Washington. The Prime Minister does love to close embassies. He is looking to set an all-time record for closing embassies, on top of his records for issuing gag orders and muzzling scientists, to name just two. Maybe he will send a few important ministers to Washington to make a lot of noise, as he likes to do. However, he will do absolutely nothing to address the root cause of the problem, which is his poor environmental management.

We know that colleagues on the other side are very skeptical of root causes. We heard a few months ago that the root cause of terrorism was terrorists. Well, I think that for the Conservative government, the root cause of climate change is probably climate. I think it should take the issue a bit more seriously.

That is all typical of this government's attitude. Make a whole lot of noise, but do not take any meaningful action. That is also typical of the Conservatives' short-sighted approach.

If we want to manage our natural resources properly, we have to think about the environment and climate change; we have to think about the future of Canadians and younger generations. We have to think about what we will do after, what we will do to break our dependence on fossil fuels. We need to focus more on green technologies, and we need to offer high-quality jobs here in Canada, not elsewhere.

I do not think that the members on the other side of the House are paying attention to what I am saying or what my colleagues in the official opposition have to say about this. That is too bad, and it all comes down to their attitude, which is that it does not matter what happens as long as it is not in their lifetime.

Unfortunately, this government's attitude is already having disastrous consequences for this planet. It is people like you and me who are paying the price, in Canada and around the world.

Opposition Motion—Keystone XL PipelineBusiness of SupplyGovernment Orders

11:45 a.m.

Liberal

Scott Simms Liberal Bonavista—Gander—Grand Falls—Windsor, NL

Mr. Speaker, I noticed recently in an article that the candidate for Toronto Centre said that we need some kind of moratorium on further development. That is certainly a little alarming. I believe she was referring to the oil sands of Alberta and Saskatchewan. I wonder if my hon. colleague feels that is really the right way to go.

Opposition Motion—Keystone XL PipelineBusiness of SupplyGovernment Orders

11:45 a.m.

NDP

Hélène Laverdière NDP Laurier—Sainte-Marie, QC

Mr. Speaker, that is a very technical question.

I thought I heard the term moratorium, which I did not really use, so I find it difficult to put this into context. However, the fundamental principle for the development of this resource, as with all our natural resources, is to proceed intelligently by creating jobs here in Canada and preserving our environment.

Opposition Motion—Keystone XL PipelineBusiness of SupplyGovernment Orders

11:45 a.m.

Conservative

Ryan Leef Conservative Yukon, YT

Mr. Speaker, my hon. colleague across the way said that members on this side of the House are not listening to them. I am sure she would agree that our responsibility is to listen to Canadians. We are listening to Canadians in the union trades, provincial premiers, including NDP provincial premiers. The voters in British Columbia were pretty clear in the last election when New Democrats told the truth about their position on pipelines. We saw exactly where it got them in that province.

It is not our side of the House that needs to start listening to them. It is the New Democrats' responsibility to start listening to Canadians' positions on this pipeline development. It is coming from their own union shops and NDP leadership across the provinces, provincial premiers.

What value does the member opposite put on the comments and concerns of provincial premiers on this topic?

Opposition Motion—Keystone XL PipelineBusiness of SupplyGovernment Orders

11:45 a.m.

NDP

Hélène Laverdière NDP Laurier—Sainte-Marie, QC

Mr. Speaker, quite frankly, we really have nothing to learn from the other side of the House when it comes to listening to Canadians across the country, experts and officials.

Unfortunately, if there is a government that does not listen to the people, it is the current government. Indeed, my colleague seems to forget that we are in the House to represent our constituents. It would not be the first time that someone across the way fails to properly understand how the parliamentary system works.

Let us talk about listening. Former premier Ed Stelmach said that shipping raw bitumen is like scraping off the topsoil, selling it, and then passing the farm on to the next generation. They spoke about the unions. However, the president of the Alberta Federation of Labour said that there were fears that this project would effectively deprive Albertans of thousands of good jobs.

Would my hon. colleague like me to go on? I could give many other examples.

Opposition Motion—Keystone XL PipelineBusiness of SupplyGovernment Orders

11:45 a.m.

NDP

Robert Chisholm NDP Dartmouth—Cole Harbour, NS

Mr. Speaker, I want to ask my colleague to expand a little on this point.

Clearly, the government opposite does not care about the 40,000 jobs in processing bitumen, nor does the Liberal opposition care about that. My concern is that the leader of the Liberal Party, when he was in Washington last week, dismissed environmental concerns that have been expressed by Americans and Canadians. Now we learn that the Liberal candidate in Toronto Centre does not want to participate in a debate on climate change.

I wonder if the member would like to comment on what this says about the commitment of both the Liberals and Conservatives on these important issues.

Opposition Motion—Keystone XL PipelineBusiness of SupplyGovernment Orders

11:50 a.m.

NDP

Hélène Laverdière NDP Laurier—Sainte-Marie, QC

Mr. Speaker, with regard to jobs, it has been clearly shown that exporting our jobs to the U.S. will certainly not benefit the Canadian economy.

In terms of climate change, the approach of the Conservatives—along with the Liberal governments before them—consists of burying their heads in the sand, hoping that the problem will disappear by itself. I am sorry, but we are dealing with our future and the future of our younger generations. I will oppose this.

Opposition Motion—Keystone XL PipelineBusiness of SupplyGovernment Orders

11:50 a.m.

NDP

Paul Dewar NDP Ottawa Centre, ON

Mr. Speaker, what we are debating today is not just about one project. It is about leadership, policy and the future of our country.

Make no mistake, what we are talking about is how to responsibly develop our natural resources. This is not a new debate in this country. For many years, we have talked about the whole myth of Canadians being hewers of wood and drawers of water, and the notion that we could only take our raw materials and send them abroad.

Clearly that kind of approach is the past. What we are looking for is the future. The Conservatives are clearly living in the past. We know that. There is no question. In fact, they do not even apologize for it. They just talk about getting this raw material out, sending it to someone else, and that is fine. Rip it, strip it and send it, as they say.

We are saying that is not responsible development. We have heard that not only from people who look at the need for value added to create more jobs but also from people who are looking at what is happening in terms of the effects of this rapid development. Let us look at scientist Dr. Schindler's work on the effects of the rapid development, which was commissioned by the current government. It is about responsible development.

The government is in the past. Rip it, strip it and send it. We know where it sits.

In fact it was very bizarre when most recently our Prime Minister was in New York, not addressing the UN General Assembly as all responsible world leaders who were in New York were doing. Let us remember, our Prime Minister was in New York when the General Assembly was sitting and most world leaders were speaking to the General Assembly about the vision of their country, dealing with the major issues, be it on Syria or be it on climate change.

Our Prime Minister did not show up even though he was in town. He was addressing the Canadian American Business Council, which is a good group to speak to. We spoke to that group when I travelled with our leader to Washington. He was speaking to them about the need to push this project.

Now what is interesting about that is that most people thought our government was being hosted by the Canadian American Business Council. It turns out that taxpayers paid for this audience, $65,000 of taxpayers' money so that the Prime Minister could have an audience to push his agenda.

It was quite shocking. This information got out because the bill was sent by mistake to CTV as opposed to the embassy, but that is kind of how these guys manage things. It was $6,500 for coffee, by the way. I thought it was outrageous enough to have a $16 juice, but this was $6,500 for coffee.

This was the approach the government took, but we know what it is about. We know it is the past. It is the old idea of not being able to do value added, so it will just rip it, strip it and send it, and that is the vision.

This debate is also about the other vision for development in this country. We believe we should have value added. We believe that we should take the resources that we have been given, our future for future generations, and be responsible with it. It is not just about hurrying it out the door and getting it over the border. It is about actually doing value added.

That is why New Democrats are putting this issue on the table. We agree with those who say we should look at the effect of the pipeline for Canadian workers and what it means in terms of the future. The future means looking at beyond a year or two years or three years. It means looking at it over a period of time to see the effects of these kinds of projects on our economy and on our environment. Our leader has been straightforward in saying that we need sustainable development, which is not the case with the government's agenda.

What is shocking is the Liberal Party. The Liberal Party would have us believe that it is concerned about the environment and responsible development. The Liberals jettisoned that. In fact what happened, which was shocking for many of us, is that when the leader of the Liberal Party went to Washington, he shocked a lot of people when he said that he was not going to criticize the policies of the present government. He did not believe that was his role, and I will come back to that later. Then he went on to advocate for and promote the Conservative government's agenda on the pipeline.

What was strange about that was that he was saying on the one hand, “I will not criticize the government abroad”, and I think we will understand why that is a problem in a second, but then he went on to say how he supported the government's agenda on this pipeline project.

Many people were quite confused. They thought the Liberal Party still believed in sustainable development or some notion of responsible development, and that when it came to this new Liberal leader, the Liberals would actually take on the Conservatives on irresponsible development. However, he did not do that. It was surprising, because he then criticized our leader for going to Washington to explain our policies of responsible development.

I was with our leader when we met with business leaders and members of the administration. We talked very frankly about the need to have good relationships and about the need to have responsible development, and they quite agreed. In the United States right now, this topic is being debated very robustly. As a responsible opposition, we are debating it here today because we think it is important.

Our visit to Washington was to say how we disagreed fundamentally with the government on the environment in particular. When the government decided to rip out environmental assessments at the federal level, not to participate responsibly in talks on climate change and not to follow up with commitments, we believed it was our responsibility as the responsible official opposition to let people know, especially our friends in the United States, our closest ally, what our vision was, and we got a very warm reception from them.

It was confusing for many people when we heard the leader of the Liberal Party saying that we should not do that when we go abroad. That is not leadership. Leadership is when we talk to our friends and allies about our vision.

I will give some detail. We were talking about the need for value added here in Canada. They understood that. Why? In the United States, and most government members probably do not know this, it is prohibited for states to export crude. They do not allow the export of crude, in other words, unrefined petroleum, in the United States, with the exception of Alaska. If we think about that, it is the exact opposite of our government. Our government encourages the export of unrefined and raw materials that are not value added. The Conservatives think it is great. They say we should go ahead and do it. We send our raw materials down to the states. They will refine it and we will buy it back. It is not responsible. It is the past, and we need to look to the future.

However, when the Liberal leader went to Washington, he said that looking at this particular project, it was a good project and it would create jobs. He actually said it would create jobs in the United States, so it really was confusing for Canadians. Whose jobs is he promoting, Canadian jobs or American jobs? I understand Conservatives do not worry about that, but when the leader of the Liberal Party goes to Washington and starts promoting a project that he acknowledges will create American jobs, we have to wonder what kind of vision he has.

He went further. He dismissed any criticism of Keystone as political games. When the leader of the Liberal Party promotes the Conservative agenda in Washington and suggests that outsourcing jobs is good for Canada, we have to challenge that vision.

The notion he argues that official opposition or opposition leaders should not go to Washington to critique the government is so offside. Before President Obama was president of the United States, he went on a world tour to say how he was different from then-sitting President Bush.

If we are to have responsible leadership in this country, we need a responsible leader. We have a responsible leader in this party. I would challenge anyone to look at our vision, compare it to the vision of the past, of the Conservatives, or the confused vision of the Liberal Party and decide who is serving Canada's interest. I would argue it is the NDP, and that is why we brought the motion to the House for debate today.

Opposition Motion—Keystone XL PipelineBusiness of SupplyGovernment Orders

Noon

Saskatoon—Rosetown—Biggar Saskatchewan

Conservative

Kelly Block ConservativeParliamentary Secretary to the Minister of Natural Resources

Mr. Speaker, earlier this morning, his colleague, the opposition critic for natural resources, made the observation that imports of foreign oil by tanker from the Middle East is bad for the environment and that it is better to use Canadian oil. Let us imagine for a moment that his colleague, and the member, are genuine about the arguments they are making today. We know that a pipeline going east would allow eastern Canadian refineries the opportunity to refine lower-cost Canadian oil and thereby protect jobs in this important but challenged industry, like they say they are trying to do. I am wondering if he could explain why then his party is opposed to Line 9?

Opposition Motion—Keystone XL PipelineBusiness of SupplyGovernment Orders

Noon

NDP

Paul Dewar NDP Ottawa Centre, ON

Mr. Speaker, let me reiterate the problem with the government. As I said in my comments, it is living in the past. It still believes in the idea of just rip it, strip it and send it. We believe in value added.

Contrary to whatever interpretation she has of my colleague's comments, I can tell her that our policy is just that, value added. It is important to look at that.

When I look at what the government has done, it has ignored the opportunities to do value added. It is simply looking at the short term. When we are dealing with our natural resources we cannot just look at the short term because that undermines the future for our next generation. It also undermines the capacity of our economy to grow in a responsible manner. Therefore, when we look at what the government is doing, it is just saying to get the stuff out of here, rip it, strip it and send it. That is not a vision. That is, at the end of the day, doing what was done in the past.

Opposition Motion—Keystone XL PipelineBusiness of SupplyGovernment Orders

Noon

Newmarket—Aurora Ontario

Conservative

Lois Brown ConservativeParliamentary Secretary to the Minister of International Development

Mr. Speaker, I note that my colleague said that his party and his leader were looking out for the interests of Canada, yet we have a quote from Saskatchewan Premier Brad Wall who said that the NDP leader is “betraying Canadian interests”, and “What [the NDP leader] and the NDP are doing is being quite destructive in terms of getting this important pipeline approved”.

If we are looking out for Canadians, for jobs, for opportunity and for economic growth, those are the kinds of things that we need to keep Canada on track for long-term prosperity. I wonder if my colleague has any comments about what Mr. Wall has said, since they are both part of the same philosophical base.

Opposition Motion—Keystone XL PipelineBusiness of SupplyGovernment Orders

Noon

NDP

Paul Dewar NDP Ottawa Centre, ON

Mr. Speaker, in the last part I was not sure if she was saying that Mr. Wall and our party have the same philosophical base. I am not sure if she was meaning to say that.

I agree with Premier Wall on the Senate. In fact, yesterday was a historic day when the Saskatchewan legislature passed a very important motion to abolish the Senate. We do not agree on everything, but Premier Wall led on this issue and he should be listened to on the abolition of the Senate.

I still point to the fact that it is important to do value added. The government is not looking at that. We want to create jobs here, not in the United States, and that is what its policy is all about.

Opposition Motion—Keystone XL PipelineBusiness of SupplyGovernment Orders

Noon

NDP

Claude Gravelle NDP Nickel Belt, ON

Mr. Speaker, I have a couple of things I would like the member to clarify for me. I can understand the rip it, strip it and send it quote because they do a lot of that in my community of Nickel Belt with the mines, but I would like him to explain. I am not sure if I heard correctly that the Canadian government spent $65,000 to bring in some people so they could try to convince them that they need our jobs. Do they need our jobs? Then he said something else about not being allowed to export raw material from the United States, yet the government is trying to convince them that we should do that with our raw material.

I am not sure if I understood correctly. Could he clarify that for me please?

Opposition Motion—Keystone XL PipelineBusiness of SupplyGovernment Orders

12:05 p.m.

NDP

Paul Dewar NDP Ottawa Centre, ON

Mr. Speaker, I would love to. It is true. The government paid $65,000 to basically rent a crowd. It was an important crowd to talk to. We talked to the Canadian American Business Council when we were in Washington, but it invited us and hosted us. The government paid $65,000 of taxpayers' money to have an audience that would be receptive to its message on the pipeline. It was $6,500 just for the coffee. It is outrageous.

The other thing he mentioned, and I will underline this point, was that with the exception of Alaska, in the United States it is prohibited to export crude, in other words, unrefined petroleum. It has to be refined. Why is that? It is because the United States understands value added. That is the problem with our government. It is living in the past. It does not understand. We need to create jobs for the future of responsible development. That is what we are arguing as the official opposition, different from the Liberal Party and different from the Conservatives.

Opposition Motion—Keystone XL PipelineBusiness of SupplyGovernment Orders

12:05 p.m.

Conservative

Ryan Leef Conservative Yukon, YT

Mr. Speaker, I will be splitting my time with the hard-working member for Vegreville—Wainwright

I am pleased to have an opportunity to respond to the motion by the member for Burnaby—New Westminster. As members know, global economic forces are undergoing a fundamental shift, and energy is a critical part of that transformation. Canada is being confronted by both daunting challenges and extraordinary opportunities for energy resources. Our sole customer, the United States, is now destined to become the world's top energy producer. Other potential international buyers of Canadian energy, until now, have been out of the reach of our energy producers.

This disadvantage is about to change. The Government of Canada is taking action, responsibly and safely, to propel Canada's energy sector into a new era of sustainable prosperity and security and a brighter, more promising economic future for all Canadians, their children, and their grandchildren.

Here is why our energy sector will continue to prosper.

The International Energy Agency predicts that global energy demand will rise by more than a third within the next 25 years. More than 95% of the expected increase in energy demand will come from non-OECD countries, with China and India leading the way. The IEA also predicts that 25 years from now, fossil fuels will continue to be the world's dominant source of energy, accounting for more than 60% of global energy demand. People in countries like China, Japan, South Korea and India know full well the extent of the resources that we have here in Canada, and the obvious practical advantages of shipping from our west coast. They also understand that Canada is a reliable source of energy in a frequently unstable world.

Clearly, the time is right for both producer and consumer. We need to diversify our markets, and they need to diversify their sources of supply. As a result, the international demand for Canadian energy will only grow. Canada cannot stand still and miss these opportunities. We cannot and we will not.

Throughout the world, energy security is the common coin for industrial development and is fundamental to the growth and stability of nations. Energy security supports political stability and economic prosperity. The practical question of ensuring energy security on a global basis is a growing challenge, but one for which Canada is uniquely equipped to play a key role. A key point to remember about energy security is that only 20% of the world's oil reserves are not controlled by state companies, and 60% of that free enterprise oil is located right here in Canada.

As I have indicated, by the end of this decade the U.S. is expected to be the world's biggest producer of oil. However, it is expected that the United States will still need to import about 5.5 million barrels a day. Canada has more than ample resources to fill this need. Canada has the third-largest proven oil reserves in the world, some 172 billion barrels, about 169 billion of which are in the oil sands. As extraction technologies advance, the oil sands could yield nearly twice that much, well over 300 billion barrels. That would make the oil sands the biggest oil reserves in the world.

The expansion and diversification of energy markets is a priority of the Government of Canada because it is crucial to jobs and economic growth. Natural resources deployment directly and indirectly supports 1.8 million jobs across our great nation, contributes close to 20% of our nominal GDP, and generates billions of dollars in tax revenue and royalties to help fund government services to Canadians.

Canada's energy sector has proposals to build and improve pipelines west, south, and east to ensure that we have customers for our energy products. However, to preserve and grow Canada jobs and revenues for social programs, we must bring our resources to international markets and the faster-growing economies in the world. That means building pipelines.

The proposed Keystone XL pipeline would feed western Canadian heavy crude to refineries on the U.S. Gulf Coast—refineries, by the way, that currently rely on Mexico and Venezuela for feedstock.

In addition to Keystone XL, two pipelines have been proposed to deliver crude from western Canada to ports on our west coast for distribution to markets on both sides of the Pacific. We are rapidly developing the infrastructure needed to service these markets. No fewer than seven liquefied natural gas export terminals have been proposed for the west coast. Three of these have been granted the long-term export licences they need to deliver LNG to markets in Asia. The first could be in operation as early 2015.

There are also proposals to adapt two existing pipelines to bring oil from western Canada to eastern Canada for refining and potential export.

Pipelines moving oil from Alberta to Quebec to New Brunswick would be among the most expansive and ambitious stretches of energy infrastructure in the entire world, and they would contribute greatly to the energy security of Canada and all of North America.

The Government of Canada is committed to ensuring the pipeline projects proceed in a manner that is environmentally responsible, economically feasible, and socially beneficial. We have the resources and we are determined to reach out to other nations, both as markets for Canadian energy and as partners in responsible energy development.

Our role as a responsible developer of energy is well known, and it is reflected in our government's commitment to the environment and to creating an opportunity for prosperity for Canadians in every region of the country.

Our approach is in sharp contrast to the NDP. While we support the responsible growth for our energy resources in an environmentally responsible way, the NDP has opposed every effort to expand our markets and create jobs for Canadians.

While we go overseas to fight for Canadian interests, jobs, and economic growth, the NDP sends its leader and deputy leader to Washington, D.C., to argue against those jobs.

While our government has listened to Canadians employed in our energy sector from coast to coast to coast, the NDP has ignored and argued against these jobs as somehow detrimental to Canadians.

We have nothing to learn from New Democrats when it comes to expanding our markets and to expanding our opportunities for Canadian workers. We will continue to fight for Canadian jobs while the NDP, with this motion today, is fighting to stop the development of important and critical infrastructure projects for our nation.

Opposition Motion—Keystone XL PipelineBusiness of SupplyGovernment Orders

12:10 p.m.

NDP

Nathan Cullen NDP Skeena—Bulkley Valley, BC

Mr. Speaker, I thank my friend and neighbour from the Yukon for his speech, although the last few paragraphs were somewhat heavy on rhetoric.

As he knows, we both come from resource development communities, regions that have relied and will rely on natural resource development for generations to come. He made some mention of the two pipelines through British Columbia, the bitumen pipelines, both the Kinder Morgan and the gateway. I do not know if he made reference to whether he supports them or not, and I would be curious to know if he is supportive of one, or both, or neither.

The question today is about Keystone XL, of course. As my friend knows, we both have significant activity in the forestry and mining sectors in our regions. Particularly in forestry, the raw export of forestry products—just sending out round logs—has been a huge problem for northern B.C., Yukon, and northern economies in general. I just lost another mill in one of my communities in Houston, another 250 jobs, and I am sure the member has stories too. The policies promoted for raw export have been deeply problematic for the resource sector, because we do not add any value.

This project also is raw export, this time bitumen. I wonder if the member has any comment on that as a policy promoted by the government, considering all the job losses that happen because we do not create the value added, as industry could be doing here in Canada as opposed to elsewhere.

Opposition Motion—Keystone XL PipelineBusiness of SupplyGovernment Orders

12:15 p.m.

Conservative

Ryan Leef Conservative Yukon, YT

Mr. Speaker, industry and these opportunities do not work in a vacuum. Expansion and utilization of Canada's resources, whether we export them in raw fashion or whether we have value added here in our country, do not work in isolation. The development of resources comes with innovation and technology that support a whole group of different sectors in the Canadian economy. That is all excellent.

The hon. colleague heard me talk about the eastern pipeline opportunity that would move oil into refineries in the east, so of course we are looking at value-added opportunities. We are also looking at moving raw exports into markets that need that product at this time. We will continue to do so.

Opposition Motion—Keystone XL PipelineBusiness of SupplyGovernment Orders

12:15 p.m.

Liberal

Geoff Regan Liberal Halifax West, NS

Mr. Speaker, I do not know if my hon. colleague recognizes that the policy of the Conservative government in failing to enact or bring forward real and serious regulation of greenhouse gases is one of the things that is making it so hard to gain support in the U.S. for the Keystone XL pipeline.

I will ask the member a related question.

In September 2013, Saskatchewan NDP leader Cam Broten soundly rejected his federal party's stance on the Keystone XL pipeline and noted that approval of the Keystone XL project was in the best interests of Saskatchewan.

As we heard earlier in the NDP House leader's twisted logic, does that not mean that the Saskatchewan NDP leader supports the entire Conservative government agenda? I wonder if my colleague agrees.

Opposition Motion—Keystone XL PipelineBusiness of SupplyGovernment Orders

12:15 p.m.

Conservative

Ryan Leef Conservative Yukon, YT

Mr. Speaker, certainly that was something he came out and said almost immediately after becoming the NDP leader.

It does show that we are not driving a personal agenda here. We are driving an opportunity for all Canadians. It is something that is shared by labour unions, workers across our country, leaders of the NDP at the provincial level, and provincial premiers. Canadians are asking us to move forward with this measure, and we are responding.

I will quickly take a moment to address the GHG topic the member mentioned.

The report out of the Obama administration was clear. It said that the Keystone XL pipeline will not contribute in any significant fashion to greenhouse gas emissions and that the denial of that pipeline would not change anything nominally on that front.

Opposition Motion—Keystone XL PipelineBusiness of SupplyGovernment Orders

12:15 p.m.

Conservative

Joan Crockatt Conservative Calgary Centre, AB

Mr. Speaker, it is too bad that the member for Skeena—Bulkley Valley was not informed by the members of his party who are on the natural resources committee, because their own witness testified on the matter of value added and said that the reason there are no refineries being built in western Canada is that they are not economic. No one is preventing those companies from building them, but then, economics was never one of the NDP's strong points.

In the realm of myth-busting, I want to ask the member for Yukon this question: is Keystone XL the first pipeline to move crude oil across the United States?

Opposition Motion—Keystone XL PipelineBusiness of SupplyGovernment Orders

12:15 p.m.

Conservative

Ryan Leef Conservative Yukon, YT

Mr. Speaker, I would like to thank my colleague and fellow member of the natural resource committee. She does a fantastic job on that committee helping her riding out, and indeed all Canadians.

This is an interesting point and a great question.

We are being led to believe that this is the only pipeline going into the United States. However, there are nearly 4.3 million kilometres of oil and gas pipelines across the United States. Between 2009 and 2011, the U.S. added 6,844 kilometres of new crude oil pipelines. They are safe, they are effective, and they are efficient. In fact, here in Canada, we have hundreds of thousands of kilometres of pipeline already in existence.

This is just another pipeline. It has greater technology, it is a greater product, and it presents a greater opportunity for Canadians. That is why this government is going to support this pipeline project.

Opposition Motion—Keystone XL PipelineBusiness of SupplyGovernment Orders

12:20 p.m.

Conservative

Leon Benoit Conservative Vegreville—Wainwright, AB

Mr. Speaker, our Conservative government is squarely focused on what matters most to Canadians, and that is jobs and economic growth. The NDP has shown clearly, with the motion it has brought before us today, that it, in fact, is not.

This motion is a silly motion. I do not like using language like that, but I will explain my statement in a minute. It is one of the silliest motions I have ever seen brought to the House of Commons. I will read the motion, and then I will explain why. It is just so ill thought out. In fact, it has not really been thought out. They brought it, obviously, at the spur of the moment, without really thinking about the consequences of what they have in the motion.

This motion was brought by the NDP member for Burnaby—New Westminster, and it says:

That, in the opinion of the House, the Keystone XL pipeline would intensify the export of unprocessed raw bitumen and would export more than 40,000 well-paying Canadian jobs, and is therefore not in Canada’s best interest.

I just want to talk a little bit about what that motion says. It makes no sense. First of all, the New Democrats are saying that we should not build this pipeline to get new refining capacity in Canada and more jobs.

Here is the reality. Right now, we refine more crude oil than we need for Canadian use. In other words, we have to export part of the gasoline, diesel, and so on that we already refine in Canada, because there is already an overcapacity of refining. That is okay. I do not have a problem with that. If business determines that it is economical to refine more, then fine, but it certainly should not be based on restrictions that some future NDP government would put in place.

Here is what they are proposing, and this is why it is so silly that it is almost beyond imagination. They are saying to build these refineries. What are they going to do with the diesel, gasoline, and other products they produce in these refineries? What are they going to do with them? Are they going to build big disposal pits and somehow put this gasoline and diesel in these disposal pits? They are going to have to do something with it if they are going to produce a product that cannot be used.

They are saying to not build the pipeline so that we can refine more in Canada. If they produce more gasoline and diesel that is not going to be used in Canada and that has to be exported, how are they going to export the diesel and gasoline? They are going to have to have a pipeline. It is simply not economical to ship gasoline and diesel from refineries, for example, in the Edmonton area or anywhere other than very close to the border. It just does not make sense to ship it to market other than by pipeline.

Pipeline is needed. There is no doubt about that either way, whether we are shipping raw bitumen, upgraded oil, or products refined in Canada. When a barrel of oil is refined, it creates roughly 30 to 35 different products that have to be exported. If we are going to refine in Canada and refine more than we use, we are going to need more pipeline capacity, because we would be shipping such a large number of products, roughly 35. We would have to have a pipeline system that could ship those products.

We can certainly block a pipeline off and ship different products at different times down the same pipeline, but we can only do that to a certain point. Some of those products have to be kept so clear that, in fact, it cannot be done that way. What the NDP is proposing simply cannot be done, unless we build more pipelines.

Let us look at this in a realistic way. I almost feel like it is a mistake to debate a motion that makes so little sense, but I am going to go ahead and make some other comments that I think are worth making, whether the motion makes sense or not.

As we know, natural resources are a huge part of the Canadian economy. When we take the direct and indirect impact into account, the natural resources sector represents 15% of Canada's GDP, and more important, I would suggest, more than 50% of Canada's exports. That is huge.

When we include the supply chain that provides goods and services to the natural resources sector, natural resources account for nearly 20% of Canada's GDP, or almost one-fifth of our total GDP. Energy resources are a huge part of that equation.

First and foremost, Canada is a trading nation. That is the reality. The NDP does not want to see that. It has opposed every trade deal we have brought to the House. However, the reality is that Canada is a trading nation, and the NDP cannot change that. Frankly, if it did change that, it would mean that a huge percentage of the Canadian workforce would be out of jobs.

We are a trading nation. Right now, 99% of Canada's crude oil exports go to the United States, which is where the Keystone XL pipeline would go, and 100% of our natural gas exports go to the United States. However, as the U.S. becomes more self-sufficient, Canada will need to diversify its export markets. That is why our government is aggressively pursuing new trade and investment opportunities for Canada in fast-growing markets around the world, including the Asia-Pacific.

That is why Canada must build and expand the infrastructure needed to move our product to tidewater for export as well as to the American market. We cannot continue to rely upon one market. It will be a declining market, because the Americans are producing more. They are increasing their domestic oil production at a rapid pace due to new fracking technologies, many of which have been developed right here in Canada.

Expanding and diversifying our energy markets is a top priority of the Government of Canada. Canada's energy sector currently has proposals to build and improve pipelines to the west, to the south, and to the east to ensure that we have customers for our energy products.

We strongly support the Keystone XL project to transport Canadian crude to the United States, and I have explained why that is necessary. It would create jobs, provide economic growth, and ensure energy security for both countries.

Canada is already the largest oil supplier to the United States. In fact, in 2012, we delivered three million barrels of crude oil and petroleum products per day. That is twice as much as the second-largest supplier of crude oil and petroleum products to the United States, which is Saudi Arabia. That is a huge change. Canada provided twice as much as the second-largest supplier to the United States and more than Saudi Arabia and Venezuela combined.

Even with the International Energy Agency's forecast of rapid growth in American production, the United States will still need to import 3.4 million barrels of crude oil per day in 2035 to keep up with the projected increase in demand. It is clear that the need for Canadian oil will still be there in the United States, but we will have to be competitive.

The Keystone XL would help meet that demand. We simply cannot ignore that it is needed. Our government will continue with that project. There are many good reasons for that.

The NDP, we know, is against trade. It is against development of so many kinds. Its former environment critic called for a moratorium on oil sands development. Yet now, just a year or so later, the NDP wants more refineries to process oil sands crude. It wanted to stop the production, but now it wants refineries to process oil sands crude. The NDP is really changing its position on issues on a constant basis. That is something I do not think lends it credibility.

There is no doubt in my mind that New Democrats demonstrate again and again, with the position they take on resource development, that they are simply not ready to govern, and I do not believe that they ever will be.

Opposition Motion—Keystone XL PipelineBusiness of SupplyGovernment Orders

12:30 p.m.

NDP

Robert Chisholm NDP Dartmouth—Cole Harbour, NS

Mr. Speaker, I listened to the member opposite from Alberta, and it made me shake my head. Members opposite are in a hurry to ship out our natural resources without adding any value to them whatsoever. The problem is what is happening right now in Alberta. Alberta is running a $2 billion or $3 billion deficit right now as a result of the lack of revenue from its resources as the world market changes.

New Democrats have suggested that what we should be doing with our resources, in this case bitumen, is processing them in Canada. There are 40,000 jobs expected to be created as a result of that pipeline. Instead of sending it across the border and creating 40,000 jobs there, and I have nothing against my American friends, we would like some long-term jobs here.

I ask the member why it is he would not like to ensure that 40,000 families sustain long-term jobs here in Canada.

Opposition Motion—Keystone XL PipelineBusiness of SupplyGovernment Orders

12:30 p.m.

Conservative

Leon Benoit Conservative Vegreville—Wainwright, AB

Mr. Speaker, the member opposite has not been involved in any kind of in-depth discussion on these issues. Certainly members of the natural resources committee have heard clearly a few things that relate to the question he has asked.

First, they have heard that the real jobs in the whole oil production and processing industry are in building pipelines and in producing the oil. That is where the vast number of jobs are. Refining would be fine for adding more value. I would like to see it, but there would be a relatively small number of jobs. We were told this by several witnesses in committee, including some of the NDP's own witnesses.

I see that the Speaker is standing, but I would love to have another question along the same lines, so I could add—

Opposition Motion—Keystone XL PipelineBusiness of SupplyGovernment Orders

12:30 p.m.

Conservative

The Acting Speaker Conservative Bruce Stanton

Questions and comments, the hon. member for Halifax West.