Mr. Speaker, I am very pleased to stand in my place and speak to this important piece of legislation.
The pipeline safety act is another example of our government's commitment to protecting both Canada's economy and the environment. Our government knows that the two do go hand in hand.
As Canadians know, our government is dedicated to creating jobs, economic growth, and long-term prosperity for everyone across this great land. That is our first priority. However, we also recognize that jobs and economic growth cannot come at any price. As the Minister of Natural Resources has said repeatedly, no project will proceed under our plan for responsible resource development unless it has been proven safe for Canadians and for the environment.
In fact, we have spelled it out very clearly as a commitment in our Speech from the Throne:
Our government believes, and Canadians expect, that resource development must respect the environment. Our Government's plan for responsible resource development includes measures to protect against spills and other risks to the environment and local communities.
The pipeline safety act is one more example of our government's promise made, promise kept approach to governing. I would like to read two more sections from our throne speech, because they outline the necessary action we promised to take on pipeline safety:
Our government will: Enshrine the polluter-pay system into law; Set higher safety standards for companies operating offshore as well as those operating pipelines, and increase the required liability insurance.
With Bill C-46, we are delivering, just as we promised and just as Canadians would expect from their government. I am truly proud of that. We are doing exactly what we said we would do.
Specifically, this new legislation for pipeline safety focuses on prevention, on preparedness and response, as well as on liability and compensation.
As the Minister of Natural Resources said when he launched this debate, the amendments in this act send a clear message. The Government of Canada will ensure that Canada's pipeline safety system is world class, that first nations are involved in pipeline safety operations, and that taxpayers are protected. These are fundamental responsibilities for a federal government, and we are fulfilling our obligations fully and directly.
I am also pleased to see that members opposite have agreed that Bill C-46 is another important step in our efforts to ensure that Canada is a world leader in pipeline safety. As the member for Hamilton Mountain said, “I would be less than honest if I did not acknowledge that the amendments appear to be a step in the right direction”.
Moreover, the member for Skeena—Bulkley Valley said, “This may sound strange, but I have looked forward to some version of such a bill for many years”. It is strange, since New Democrats are completely opposed to all form of resource development. However, we appreciate that they recognize an excellent piece of legislation when they see one.
Just as important, it appears that all sides of this chamber have finally acknowledged that Canada's energy sector is the key engine driving our economy. The oil and gas industry alone contributes almost 8% to our gross domestic product. It employs 360,000 Canadians directly and indirectly, and it generates more than $23 billion annually in government revenue to help pay for social programs like health care, education, and infrastructure.
At the same time, pipelines are crucial to the safe transport of oil and gas across our country and to markets beyond our borders. As we have heard many times during this debate, Canada has an enviable record on pipeline safety. Of all the oil and product transported through about 73,000 kilometres of federally regulated pipelines in Canada, 99.999% of it has arrived safely.
My colleague from Nanaimo—Alberni captured this point very well with a reference to his home province of British Columbia. He said:
We had a pipeline going through Burnaby for more than 60 years, and most people in Burnaby did not even know it...
As my colleague for Stormont—Dundas—South Glengarry said:
...most homes in Canada are heated with natural gas, all of which is delivered by pipelines, but Canadians do not need to give it a second thought because it all happens so safely and seamlessly every single day.
Canada has a reputation for building and operating pipelines safely. This is one of our country's many strengths, and our government is determined to keep improving upon this record. That is why we have already implemented other important measures. For example, we gave the National Energy Board new authority to levy administrative monetary penalties and additional resources to increase its inspections and audits each year. As a result, oil and gas pipeline inspections have increased by 50% a year and comprehensive audits of pipelines have doubled.
The pipeline safety act would move those yardsticks even further. I would like to highlight a few examples. At the top of the list is the proposal to enshrine in law the polluter pays principle, to ensure that polluters would be held financially responsible for any costs and damages they cause. The legislation would also introduce absolute no-fault liability and require companies operating pipelines to hold minimum financial resources for incident response. For companies operating major oil pipelines the requirement would be set at $1 billion. As well, the pipeline safety act would, in exceptional circumstances, provide the NEB with the authority and resources to take control of incident response and cleanup when a company is unable to do so. Also, the new legislation would expand NEB authority to recover costs from industry for that backstop.
Furthermore, we are working with aboriginal communities and industry to enhance the participation of aboriginal peoples in all aspects of pipeline operations, from planning and monitoring to responding to incidents. This would ensure that aboriginal peoples participate fully in related employment and business opportunities.
These are all right and good measures. They are perfect examples of how our government is leading the way in protecting the well-being of Canadians, our communities and the environment. They also remind us of how safety standards can and should be enhanced as technologies evolve and regulations are improved.
The pipeline safety act delivers on all of these fronts. It ensures that Canadians keep setting the bar when it comes to the safe transport of oil and gas. I urge all members to support this valuable piece of legislation.