Debates of May 21st, 2013

Natural Resources—Main Estimates, 2013-14

[The Chair, NDP, Joe Comartin]

I would remind the minister to direct his comments to the Chair, not to the member.

The hon. member for Westmount—Ville-Marie.

[Marc Garneau, Liberal, Westmount—Ville-Marie, QC]

Mr. Chair, needless to say, I look forward with great anticipation to some results from this, considering that the National Energy Board is looking at the whole concept of sending dilbit to tidal waters on the Pacific, and we still do not know what will happen to it.

Can the minister identify what additional funding measures of a regulatory or monitoring enforcement or liability management type the federal government is taking to manage the unique risks associated with dilbit spills?

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, first let me say to the member opposite—and he should know this—that one does not get a result in the middle of a scientific study. One waits until the scientific study is completed. We know that the NDP anticipates results. I did not think that the member opposite did as well.

Let me tell the member that we have moved forward with eight more steps that will bring us closer to a world-class marine safety system. One is more tanker inspections. All foreign tankers in Canadian waters will be inspected on first arrival and every year after that.

I am not going to have time to complete this answer. We will expand the surveillance and monitoring of ships by air.

[Marc Garneau, Liberal, Westmount—Ville-Marie, QC]

Mr. Chair, Atomic Energy of Canada quietly announced in March of this year that the expected long-term cost for cleaning up its nuclear program had surged to a total of $6 billion, up dramatically from the $3.6 billion currently on the books. How does the minister explain why there is such a major increase in the costs?

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, this government has been ensuring diligent and responsible management of nuclear files. This includes the ongoing restructuring of AECL to put its laboratories under private sector management. As part of the preparation necessary to put this process on a firm footing, AECL has undertaken a comprehensive plan to review its waste and decommissioning plans. Using the best industry practices and accounting standards, this has led to an update of the forecast value of AECL's nuclear legacy liability, which has increased by $2.4 million on a present value basis.

I am confident that a restructured AECL, under its new management model, will be best positioned to manage its nuclear waste and decommissioning activities in the future.

[Marc Garneau, Liberal, Westmount—Ville-Marie, QC]

Mr. Chair, how many applications to appear as witnesses have been received by the National Energy Board with regard to the proposed line 9 reversal by Enbridge?

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, the National Energy Board will report on that number.

[Marc Garneau, Liberal, Westmount—Ville-Marie, QC]

Mr. Chair, I was hoping the minister would have that information, especially since the Conservatives made changes under Bill C-38 to the eligibility of witnesses to appear in front of the National Energy Board. Certainly it is a question that is on the minds of many people because it has such important repercussions.

The latest environmental commissioner's report gave a scathing review on the federal government's and the two offshore petroleum boards' readiness for a major oil spill. Is there any funding in the estimates to fix this negligence by the minister and his government?

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, the person to whom the hon. member was referring is Scott Vaughan and let me quote from his report. He said:

For me, this report has been a model of cooperation with senior government officials, both in terms of working through some difficult files [but also]...in...the government accepting our recommendations...

Another comment he made was:

I don't have the slightest doubt that this government is absolutely focused on closing the gaps we've identified.

Finally, he said:

—this is how the system is supposed to work. We've identified...gaps, and the government is committed to closing them.

[Marc Garneau, Liberal, Westmount—Ville-Marie, QC]

Mr. Chair, I hope there is a timetable associated with that.

The main estimates provide the decrease of $22 million in the geo-mapping for energy and mineral program, the GEM program. Will the government allow this program to sunset after this year, despite industry support and the recommendations of the natural resources committee in its 2012 report?

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, the geo-mapping for energy and minerals program commenced as a five-year $100 million initiative as part of the government's plan to lay the foundation for sustainable economic development in the north by providing modern fundamental geo-science knowledge. Natural resource development remains at the centre of the government's economic agenda. The geo-science knowledge created by the GEM program is directly contributing to economic development objectives in Canada's north.

[Marc Garneau, Liberal, Westmount—Ville-Marie, QC]

Mr. Chair, during testimony at the Natural Resources committee, the deputy minister stated that the department had cut 160 positions in the department. Where did those cuts happen and how many of them were to scientists?

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, as I said earlier this evening, 42% of NRCan's indeterminate employees occupied scientific or technical positions before the implementation of savings measures under budget 2012. After the resulting workforce adjustment, 43% of NRCan's indeterminate employees are occupying scientific or technical positions.

[Ryan Leef, Conservative, Yukon, YT]

Mr. Chair, I am pleased to rise tonight to speak during this debate. It is 10:30 p.m. here in Ottawa but it is only 7:30 back in Yukon so I hold out hope that a number of my constituents will be tuning in to watch this and it will not just be my mother. All of them will be watching, not just my mom.

I am pleased to participate in this committee of the whole debate and would like to start my comments specifically with our government's most recent budget, economic action plan 2013.

Canada has a well-earned reputation for excellence in economic and financial management and we intend to return to balanced budgets by 2015. Economic action plan 2013 builds on our economic record by taking concrete steps to position Canada for success in the 21st century global economy. Specifically, it would help Canadians obtain the skills and qualifications they need to get jobs in high demand fields; it would help manufacturers and businesses succeed in the global economy by enhancing the conditions for creating and growing business; it introduces a new building Canada plan that would lead to better roads, bridges and public transit in cities and communities all across our great nation; and it would invest in world-class research and innovation to help ensure that new ideas are developed and transferred from the lab to the marketplace.

Of course our nation does have challenges to welcome. Despite the fact that Canadian workers are among the highest educated and the best trained in the world, Canada is facing shortages of skilled labour for the coming years. For example, the Canadian Chamber of Commerce has identified Canada's skill shortages as the number one issue facing its membership. Canada's resource industries are also facing the same problem with skilled labour and trades.

To help address these issues, economic action plan 2013 sets out a practical three-point plan.

First, to ensure that Canadians are acquiring the skills that employers are seeking, the plan introduces the new Canada jobs grant that would provide $15,000 more per person, including a maximum federal contribution of $5,000 to be matched by provincial and territorial governments and employers. Just this past week I was pleased to host an open house consultation in my riding to speak about the jobs grant and how employers and governments can partner and shape this plan into our future so that it works to meet the needs of industry in those skill shortages.

Second, the plan would create opportunities for apprentices by working with the provinces and territories and by introducing measures that would support the use of apprentices through federal construction and maintenance contracts.

Finally, economic action plan 2013 would provide support to groups that are under-represented in the job market, such as persons with disabilities, youth, aboriginal peoples and newcomers to our country.

These groups were well represented during the consultations that took place in Yukon. They had valuable input and feedback that we are looking forward to receiving and reviewing as we move forward.

Members of the House well know that Canada's abundant natural resources are pillars of our economic strength. When we take the direct and indirect impact into account, the natural resource sector represents about 20% of Canada's GDP and employs 1.6 million Canadians. The resource sector also pays more than $30 billion per year to government coffers through taxes and royalties, which helps pay for health care, education, pensions and other critical social programs.

In the case of the energy sector, many analysts say that it has become the new engine of Canada's economy. The oil sands alone are responsible for some 275,000 direct and indirect jobs in skilled trades, manufacturing, high technology and financial services in every single region of Canada. According to the Canadian Energy Research Institute, projected increases in oil sands production could support close to 630,000 jobs on average between now and 2035. The institute also forecasts that the oil sands could contribute more than $2.8 trillion to Canada's GDP, an annual average of $113 billion during that same period.

This is great news for all Canadian workers and their families. But while our resources are great and many, unless we can ensure that they will reach foreign markets and obtain world prices, we will not meet our full potential as a nation.

Those who think that pipelines are an Alberta issue should think again. Getting pipelines built west, south and east to send our oil and natural gas to the United States, to Asia and to other world markets is a national priority for this government. Few countries are generating natural resource products on the scale or pace of Canada. As many as 600 major resource projects worth more than $650 billion are under way or planned over the next decade, with the potential to create enormous prosperity for Canada, realizing the potential of our natural resources industries is critical to our government's goals of jobs, growth and long-term prosperity. That is why our government is so focused on creating the right conditions for success.

Through our plan for responsible resource development, we have set firm beginning to end timelines for project reviews. We are also eliminating duplication in the review process where provincial reviews meet our stringent environmental standards.

In Yukon, natural resources development projects have seen the benefit of regulatory reform through devolution. The 2003 Yukon Northern Affairs program devolution agreement brought management and the administration of all the lands and resources under the control of the government of the Yukon. The Hon. Michael Miltenberger referred to Yukon as a prime example of how timelines and the responsiveness of project reviews improved because of this important regulatory reform.

In addition, the former president of the Yukon Chamber of Commerce, Sandy Babcock, had reported to the Natural Resources committee that Yukon's cap of $3 million in resource revenue sharing needed to be increased so the territorial government received a greater share of its resource royalties.

The Government of Canada listened. Last summer, during the northern tour, the Prime Minister announced a new resource revenue sharing agreement, doubling the cap to $6 million. Recently, the premier of Yukon, Darrell Pasloski, outlined that this made for an additional sharing of $2.7 million to the territory.

However, our plan is not just about developing resources efficiently; it is about developing them responsibly. Our government is committed to developing our natural resources in a responsible way, which includes strengthening environmental protection. We reject the notion that we cannot do both at the same time. Through our actions, including tough new fines for companies that break our environmental laws and new measures to ensure world-class pipeline and marine safety regimes, we are proving we can.

Our government is also making every effort to ensure that aboriginal people and first nations people can share in the tremendous benefits that natural resources development offers in the years ahead. Earlier this month, Natural Resources Canada funded $500,000 to a consortium led by the Champagne and Aishihik First Nations to pursue the study of a potential power generation plant fed by biomass in Haines Junction. This project was included among 56 new innovative clean energy projects announced by the Prime Minister, representing an investment of $86 million through the Government of Canada's eco-energy innovation initiative. This program was created to invest in new clean energy technologies that would create jobs, generate economic opportunities and help protect the environment.

I was certainly pleased to be in Yukon to make that very important funding announcement and I can assure members that it was exceptionally well received by the people of the territory and the first nation of the Champagne and Aishihik in that community.

The significance of the resource sector's economic impact cannot be understated. In 2012, 32,000 aboriginal people, or 8.3% of the working aboriginal population, were employed in the natural resources industries of forestry, energy and mining. Aboriginal people make up 7.5% of the workforce in Canada's mining sector.

However, the minerals and metal sector is not the only sector offering opportunities for aboriginal people. Ten per cent of the oil sands workforce is aboriginal. Many aboriginal companies are also thriving in Alberta's oil patch. The Canadian Council for Aboriginal Business estimates that oil sand companies do $1.3 billion worth of business each year, with a wide range of aboriginal companies, including parts suppliers, mechanical contractors and camp caterers.

Given the scope of aboriginal business activities and employment, the council has named the oil sands as the largest single non-governmental source of aboriginal income in Canada. This degree of participation in Canada's resource economy is a substantial achievement and one that our government wishes to expand on across the country.

To that end, we are committed to working in concert with aboriginal communities to ensure they continue to share the rewards of natural resources development in Canada.

The committee on natural resources recommended this past year that the Government of Canada increase its support to mining training initiatives for first nation and Inuit communities in order to help develop the labour force required to support mining projects in northern Canada. Their contributions are vital to the mining sector, and these recommendations seek to further their impact. As members know, economic growth, job creation and prosperity for all Canadians is our government's top priority.

In conclusion, our government has designed and implemented policies aimed at driving the economy to its full potential for the benefit of all Canadians. Together the initiatives in economic action plan 2013 build on previous government actions to reinforce the fundamental strengths of the Canadian economy. By staying the course, the Government of Canada will continue to promote economic growth, job creation and long-term prosperity for all Canadians.

I would now like to ask the minister, along the vein of much of my discussion today, about the benefits for aboriginal and first nation communities in resource development, specifically in my riding of Yukon. Because we know that northerners, including our aboriginal people, first nations and Inuit, are an integral part of resource development in the north, I would like to ask what our government is doing to ensure that they are able to benefit from the opportunities that resource development provides.

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, I would like to thank the member for Yukon very much for his insightful and moving remarks, and also for his very relevant question.

The natural resource sector is the largest private employer of aboriginal peoples in Canada. In 2012, more than 32,000 aboriginal people worked in the sector, which is 8.3% of all aboriginals employed in Canada, with 13,500 in the energy sector, 10,200 in minerals and metals, and 8,500 in the forestry sector.

Over the next 10 years, more than 600 major projects representing over $650 billion in potential new investments are planned across Canada. Most of this development is located on or near aboriginal communities, and much of it is located in northern Canada.

To further enable aboriginal peoples to take advantage of these opportunities, budget 2013 would provide over $600 million to support aboriginal education, skills development and community infrastructure. These efforts will ensure that aboriginal Canadians can share in the tremendous benefits offered by the development of our natural resources.

[Ryan Leef, Conservative, Yukon, YT]

Mr. Chair, the north has been a particular focus for our government since taking power, and it can be argued that there has not been as much emphasis on the north and our great territory since the Diefenbaker government, which is something my constituents are very grateful for. Whether it is Yukon, Northwest Territories or Nunavut, we have certainly been investing in infrastructure and in responsible development of our resources.

Can the minister talk a bit about the strong support that our government has shown, as well as the economic potential for the north?

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, our government has shown strong support for the north. We signed a revised royalty sharing agreement between our government and the Government of Yukon.

Throughout the north, mining projects are providing well-paying jobs for Canadians. There are nine producing mines in the north, including Yukon’s own Minto. This one, Wolverine and Keno Hill, are providing opportunities for thousands of Canadians today, and 24 advanced natural resource projects representing more than $20 billion in investments have the potential to provide opportunities for thousands more.

We established the Canadian Northern Economic Development Agency, which will help with this development. Earlier this year, we opened its permanent headquarters—not, I might add, in Ottawa or Gatineau, but in Iqaluit. One of its most important responsibilities is the northern projects management office. As in the south, we want to ensure a single window for industry in dealing with government.

We need thorough, balanced, science-based environmental assessments conducted on a timely basis and in accord with the principle of one project, one review so that opportunities like this one can be realized across the north in a responsible manner.

[Linda Duncan, NDP, Edmonton Strathcona, AB]

Mr. Chair, I will be using my full 15 minutes for questions.

On how many occasions have the minister or senior officials travelled to the United States to discuss Canada's oil sands with U.S. federal or state officials in the past 18 months?

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, I am proud to say that I and a number of my cabinet colleagues have travelled to the United States. I have travelled to Chicago, Houston, New York and Washington. We are promoting a Canadian environmental and development interest. We are conveying our responsible development of resources, and we are promoting projects that would create jobs in Canada, across the country.

[Linda Duncan, NDP, Edmonton Strathcona, AB]

Mr. Chair, how much was the departmental budget for travel, accommodation, staffing support and materials related to oil sands-related travel to the United States in each of the past seven years?

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, I am really astonished that the NDP would bring up this subject because its members have travelled to the United States to thwart development. They have travelled to the United States to undermine our projects that are going to create jobs and economic growth. What a waste of money that has been.

[Linda Duncan, NDP, Edmonton Strathcona, AB]

Mr. Chair, perhaps we will try this question. How many times has the minister or senior staff visited the United States in the last 18 months to discuss the Keystone XL pipeline proposal?

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, as I said, I am proud of every visit that I have made to promote Canadian jobs, and frankly we are very pleased with the progress. There is 70% of the American public who are onside with Keystone. All the governors to whose states the pipeline would go are in favour of it. A majority of the Senate and a majority of the members of the House of Representatives are in favour of it.

However, the members opposite go down there, using taxpayer money, to undermine our message.

[Linda Duncan, NDP, Edmonton Strathcona, AB]

Mr. Chair, perhaps I could ask how many visits they have had to discuss energy efficiency and renewable power, but instead I will ask this question. What has been the departmental budget for promotional communications and government relations work in European Union countries since 2009?

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, I have dealt with that number. However, again, what we are doing is standing up for Canada's interests against an unscientific, discriminatory objective which undermines Canadian jobs.

What I find astonishing is that this party would have—