Mr. Speaker, I am very pleased to have the opportunity to debate Bill C-22, the energy safety and security act, and to share my time with the hon. member for Saskatoon—Humboldt.
This bill would modernize and increase accountability in Canada's offshore and nuclear industries. As hon. members know, it is no exaggeration to say that the offshore petroleum industry has literally transformed economies in Atlantic Canada. Over the past few years, this vital industry has created thousands of high-paying jobs and spinoff industries. It has also generated billions in revenues for provincial governments to invest in social programs that are essential to Canadians.
Over the past 15 years, Nova Scotia offshore production has generated over $2.3 billion in government revenues. Today, the industry generates close to $190 million of expenditures and supports approximately 770 direct jobs. On an annual basis, over the period between 2003 and 2007, the offshore petroleum sector's contribution to Nova Scotia's GDP was 3%.
In Newfoundland and Labrador, over the same 15-year period, offshore production has generated over $9.2 billion in government revenues. Today, the offshore oil and gas industry in Newfoundland and Labrador contributes approximately 28% of the provincial GDP, spending over $3.2 billion annually and providing 7,374 direct jobs. In 2010, through direct and indirect and spinoff effects, the industry accounted for over 12,800 jobs. That is 5.8% of provincial employment through responsible offshore resource development.
It is clear that exploration and development of the offshore is translating into tangible benefits for the people of these provinces, and these benefits will continue to grow.
Our regulatory and safety regime in the Atlantic offshore area is already strong. Over the past year, our Conservative government has introduced a number of measures to ensure the safe development of our natural resources under our responsible resource development plan. We have initiated new enforcement mechanisms, which include fines for non-compliance, with stated environmental requirements. This includes inspections for oil and gas pipelines, which have been increased by 50% annually. We have also doubled the number of comprehensive audits of pipelines.
Another example is the new mandated measures for oil tankers, which will ensure the safe transportation of energy resources through our waterways. These measures include the safeguarding Canada's seas and skies act, as well as the creation of an expert panel to review Canada's current tanker safety regime, which will propose ways to improve safe transportation.
Building on these measures, our Conservative government is taking steps today to strengthen its robust offshore liability regime and make it even stronger. As I have said many times, our Conservative government will ensure that no development proceeds unless it is safe for Canadians and safe for the environment. We have been working closely with the Governments of Nova Scotia and Newfoundland and Labrador to update and expand both accord acts to ensure that Canada's offshore regime for oil and gas exploration remains world class.
Companies operating in Canada's offshore have an excellent track record. Every stage of offshore petroleum activity, from exploration to production, is subject to stringent regulatory obligations and oversight by either the Canada-Nova Scotia Offshore Petroleum Board or the Canada-Newfoundland and Labrador Offshore Petroleum Board. Companies must have regulator approved safety, emergency response and contingency plans, and regulators will not allow any offshore activity unless they have determined that the environment and the safety of workers will be protected.
Bill C-22 focuses on protecting the environment and taxpayers in the highly unlikely event of a spill.
The Commissioner of the Environment and Sustainable Development has found that the offshore boards are operating with due diligence. However, he has recommended enhanced financial assurance for environmental risk. Our government has committed to study his report and make the necessary changes. The changes contained within Bill C-22 build on the commissioner's advice as well as lessons from international best practices. Our overall objective is to have a world-class offshore regime.
As the House knows, Canada's liability regime is founded on the polluter pays principle.
First, we are proposing to enshrine the polluter pays principle in legislation and to maintain unlimited liability when an operator is found to be at fault.
Second, our government will also increase the absolute liability to $1 billion, from $30 million in the Atlantic offshore and $40 million in the Arctic offshore. This means that fault or negligence does not have to be proven for that amount.
Third, we will require that operators demonstrate at least a $1 billion financial capacity to ensure they have sufficient funds if an incident were to occur. Currently the regulators require proof of an operator's financial capacity in an amount between $250 million and $500 million. We intend to raise the minimum financial capacity to $1 billion, in line with operators' absolute liability. Regulators may require higher amounts if deemed necessary. This increase will bring our country in line with comparable regimes, such as Norway, Denmark, the U.S., and the UK We are ensuring that companies have the financial wherewithal to meet their liabilities if needed.
Finally, we will require that operators provide regulators with rapid and unfettered access to at least $100 million that may be used if needed.
These are just some of the ways we are ensuring Canada is among the strongest liability regimes in the world.
We are also creating the ability for regulators to impose administrative and monetary fines as an additional tool in ensuring industry's compliance.
We are increasing transparency by allowing the boards to make emergency environmental and other documents public.
We are creating the ability to use spill-treating agents.
We are creating the basis for boards to recover costs from industry.
Our government is committed to ensuring the safe extraction of Canada's offshore resources, while at the same time protecting our environment. Raising the absolute liability for companies operating in the offshore will go a long way towards achieving that goal.
As the offshore industry continues to grow and develop, we must ensure it is done in a responsible manner. That is why I urge all hon. members in the House to support Bill C-22.