Mr. Speaker, I am delighted today to speak to Bill C-22. In my presentation I will answer some of the questions that I have asked of the members across the floor and that they have completely avoided answering; the first one being that, under this legislation, companies would have absolutely unlimited liability. If the cost of cleanup, for example, is $10 billion and if the company is found to have been negligent in some fashion, it would be responsible not only for the $1 billion absolute liability but also for the unlimited liability of $10 billion. The member across the floor, and in fact the last two members, completely refused to acknowledge that, even when questioned on it. I do not mind criticism on legislation, and in fact I appreciate it, if it is fair criticism based on reality. However, that is not what has happened and I am somewhat concerned by that. So in my presentation I will answer some of those questions.
I would like to speak to the offshore aspect of this bill. It does of course cover nuclear liability as well.
I will be sharing my time with the hon. member for Renfrew—Nipissing—Pembroke, and I look forward to hearing her presentation.
As most hon. members know, the importance of the natural resources industry in Canada's economy cannot be overstated; it is extremely important. When we take the direct and indirect impacts into account, the natural resources sectors represent nearly 20% of Canada's GDP and employ 1.8 million Canadians. Together, the energy, mining, and forestry industries produce an average of $32 billion a year in government revenue to fund things like education, health care, and other social programs, including seniors' pensions.
These numbers suggest one thing, that the development of our natural resources sectors is central to the goal of improving the lives of Canadians right across this country. The critical social programs that benefit Canadians—including health, education, and public pensions, as I mentioned—are all partly funded and sustained by government revenues gained from our natural resources sectors. Our willingness to invest in our natural resources sectors provides continued opportunities for Canadians to live a high quality of life.
We are discovering more opportunities to invest in natural resources, specifically in the energy sector, particularly in Atlantic Canada where there are more than 8,000 people working directly in the offshore sector. As we continue to expand the offshore industry, we will open up even more opportunities for employment. This means more Canadians will be able to provide for their families and invest in their future.
“Future” is the key word here. In fact, at our natural resources committee just today, we are carrying out a study on the cross-country benefits of the oil and gas sector, and in our committee today we had the mayor of Saint John, as an example, expressing the importance in Saint John, New Brunswick, of the oil and gas sector. We had the head of the economic development group there, who expressed very clearly the importance in New Brunswick of the oil and gas sector. They also expressed the potential future if resources in Atlantic Canada and in Newfoundland and Labrador are developed completely. There are many real positives coming from this study, and it is exciting to hear the benefits across the country and the potential benefits into the future.
We cannot do that without also considering the future of our environment, and we all agree with that. That is why, under our plan for responsible resource development, our government intends to ensure that the expansion of offshore resources is done safely and responsibly. It is why we are introducing Bill C-22, new legislation to increase the safety and accountability of Canada's offshore regime. We can say with confidence that our offshore regime is already extremely strong. Companies operating in the offshore are strictly monitored today, even before this legislation.
In the two offshore areas in Atlantic Canada, both the Canada-Newfoundland and Labrador Offshore Petroleum Board and the Canada-Nova Scotia Offshore Petroleum Board ensure that no offshore development proceeds unless rigorous environmental protections are in place. It is already there.
Our government believes that industry must be accountable in the event of an accident. We have been working together with our two partners, our provincial governments in Newfoundland and Labrador and Nova Scotia, to establish an offshore regime that is not only strong but truly world class and world leading. When I speak about holding industry accountable, I am referring to the polluter pays principle, which has already been acknowledged by members in the House as being something they support. I think we all do. This principle holds industry liable for environmental damages incurred in the unlikely event of an incident offshore.
The industry is already subject to unlimited liability, which is what I was talking about, if the parties are found at fault or negligent in the case of an incident. We would not be changing that legal fact with this legislation. What we would be entrenching with Bill C-22 is the principle of increasing the amounts of absolute liability. Absolute liability ensures that operators have the resources for the cleanup costs of an accident or damages to others, regardless of fault or negligence. Right now absolute liability is set at $30 million for the industry operating on either of the two Atlantic offshore areas. That applies to the nuclear sector as well. It is set at $40 million elsewhere in Canada's offshore. Under Bill C-22, the minimum would be set at $1 billion for all areas of the offshore, bringing us in line with international standards, and in most cases exceeding them. That is absolute liability. Some members who have spoken to this legislation have not differentiated or understood that there is the $1 billion absolute liability and also unlimited liability, which would go beyond that in the case of negligence and that type of thing.
With the passing of this legislation, companies operating in the offshore would be subject to among the highest absolute liability thresholds in the world. To ensure compliance with this new standard of liability, companies wishing to operate in these areas must show proof of financial capability equivalent to their absolute liability. It is not some airy-fairy thing; rather, it is based on a careful review of the companies involved.
As part of the assessment, the regulator must be assured that the company has the financial assets to cover the $1 billion absolute liability requirement. We would also require the operators to provide regulators with rapid and unfettered access to at least $100 million that may be used in the rare case of an incident.
Industry would also have the option of setting up a minimum $250 million pooled fund. Operators could choose to use membership in such a fund to serve as their financial responsibility. This would ensure that all companies have the capacity to respond quickly in the unlikely event of an incident. Bill C-22 would also provide the offshore boards, which regulate these operators, with the increased authority and infrastructure to ensure the standards are upheld.
I would like to close by saying that our offshore industry is expanding rapidly, providing Canada with more opportunities than ever before. Canada is well placed to benefit from these opportunities. However, our government is committed to doing so in a responsible and safe fashion. That is the way we are approaching the development of all natural resources. Because of that, Canada is viewed as a country that has the regulatory regime that could be a standard that other countries strive to meet.
I welcome any comments or questions from members across the floor.