Mr. Speaker, I am pleased to have this opportunity today to speak to Motion No. 412 on the federal loan guarantee for the Lower Churchill hydroelectric project. The intent of this motion is to express support for using the federal government's sovereign credit rating to lower the financing costs for regionally significant natural resource development projects. In this particular case, it is addressing the financing of the Lower Churchill hydroelectric projects in Labrador and in the maritime provinces.
Last fall, the federal government and the Newfoundland and Labrador and Nova Scotia governments reached agreement on the terms and conditions for this federal loan guarantee. The first thing I would like to say is that given that this agreement has been reached, I am not so sure it is so important for the House to be considering this motion. It feels a little too much like a pat on the back for the government of the day. In my opinion, it is a lost opportunity to make good use of the time in the House not only for the good of northern Ontario but for all of Canada.
I am a little surprised that if the government wished to discuss this issue, no Conservative members from Atlantic Canada sponsored this motion. A member from northern Ontario had to use a precious northern Ontario spot for private members' business to address an Atlantic Canada issue. Nevertheless, the motion is what it is.
Let me say that we in the Liberal Party support the principle of federal loan guarantees for regional resource development projects, assuming that due consideration has been given to the concerns of aboriginal peoples, environmental concerns, and the economic impact and viability of the projects. Therefore, we will be supporting this motion.
The Liberal Party is in favour of loan guarantees for such projects and other provincial resource development projects. That is why we support the motion. I feel the need to emphasize, however, that the Conservative government needs to let the other provinces and territories know whether or not it intends to extend similar guarantees for their large-scale clean energy projects and whether or not it intends to establish a national framework to that end.
There are other possible projects in the region, in fact, for which we might consider loan guarantees, such as bringing power from Quebec into Atlantic Canada or bringing power to Prince Edward Island, where electricity rates are very high. These are the other sorts of natural resource projects, which are important in a regional sense, that we should be thinking about in the future for federal loan guarantees. I would hope the government would consider setting up a framework, something bigger than just a loan guarantee for one project, such as the one we are considering today.
While we support the motion because we support its intent, we do not agree with some of the premises of the motion. We wish to point out that the reality of the situation is not as sunny as the motion would have Canadians believe. I believe that the less spin we have, especially here in Ottawa, and the more reality, the better it is for Canada.
I would like to expand on that point. We agree that electricity generation from these hydroelectric projects will displace the old oil-burning Holyrood thermal generating station. We understand that jobs will be created in the construction of this project and that a stable electricity supply will be available for industry and for export.
However, the reality is not as sunny as the motion implies, because for one, electricity rates will go up. Ratepayers in Newfoundland and Nova Scotia will be on the hook for the cost of these projects and for possible cost overruns. The federal government is not on the hook for cost overruns; ratepayers are. Yes, jobs will be created by the project, but there will also be a drag on the economy from higher electricity costs. The picture is only partly sunny.
The Labrador Inuit and the Labrador Métis feel that they have been left out and were not properly consulted. They feel left out of the benefits of the project. The Innu nations support the project and have signed agreements. Again, the situation is really only partly sunny.
To reiterate, it is important to bring out the complexities of any issue so that we talk more about reality in the House and less about spin. Environmental groups have launched a court challenge over the Lower Churchill project. Large-scale hydroelectric generation involves flooding, and that means damage to a watershed and damage to habitat. The Red Wine caribou herd is affected. There is also potential mercury poisoning from the release of naturally occurring mercury when flooding occurs.
Hydroelectric resources, if developed sustainably, environmentally, economically and socially, can be a great resource. In this case, it would be to the benefit of the people of Newfoundland and Labrador.
The Liberals support the federal loan guarantee for the Lower Churchill falls hydroelectric project. Liberals support the principle of loan guarantees, assuming that due consideration has been given to the concerns of aboriginal peoples, to environmental concerns and to the overall economic impact and viability of the project.
However, large projects can affect entire regions, as this one does. We know that benefits can be uneven. There is some controversy. Not everybody is in agreement. We have to acknowledge that, even as we express our support for the loan guarantee. Provinces can have disputes.
Canada, with its great geographic diversity, could benefit from the government thinking a lot larger than just one project. Canada would benefit if its federal and provincial governments thought about a pan-Canadian energy strategy. This set of hydroelectric projects really illustrates how a lot of different provinces—Newfoundland and Labrador, Nova Scotia, Quebec and so on—are affected by a single project. In this sense, it is too bad this motion addresses only the Lower Churchill hydroelectric project.
We support the motion, but this is an opportunity we could have taken to discuss a much grander vision to link the energy and economic futures of the different provinces and the diverse regions of Canada as we work together toward a shared future of prosperity and sustainability. I would ask that the government think about this and perhaps have a bigger and longer-term vision for the country's economic future and the future of using its natural resources for the most benefit for all of its people, provinces and diverse regions.
I wish to conclude simply by saying that I support the motion. I hope that it will lead to a much larger discussion.