Mr. Speaker, I am happy to rise this evening to speak to the motion to concur in the second report of the Standing Committee on Natural Resources, a report on the future of and innovation in Canada's oil and gas sector. I will not comment on the arcane procedures and strategies in this place that see us debating a committee report a full two years after it was tabled in the House, but I am pleased to be able to take it off the shelf, dust it off and see what is in there, especially in light of more recent events.
The New Democrats submitted a supplementary opinion on the report when it was tabled, so I will be referencing that when I discuss some of our concerns. Our first concern was with the scope of the study and the subsequent report. We had hoped that there would have been a good discussion on the opportunities in other parts of the energy sector, a discussion about innovation, job opportunities, investments and particularly the emerging renewable energy industry. Renewable energy offers significant opportunities for the creation of good jobs in every community across Canada and much of what is happening there is the very definition of “innovation”, but, unfortunately, that topic was not included in the study.
During the study, committee members heard a lot about innovation in the oil and gas industry and some of it was truly encouraging. We heard from Canada's Oil Sands Innovation Alliance, COSIA. In the model that COSIA put forward, a group of private companies put aside the usual proprietary nature of research and information to create a true alliance in which all members have access to successful innovations that could result in oil extraction methods that are both more economical and better for the environment. That is really exciting to witness. Unfortunately, we heard that many of these innovations would only be implemented in new projects, projects that are waiting for higher oil prices before they will proceed. I truly hope that the COSIA model will be extended to other industry sectors because of the way it amplifies innovation through quick adoption throughout the sector.
I would also like to echo the sentiments of Gil McGowan, the president of the Alberta Federation of Labour, in that we have to be more than hewers of wood and drawers of water, that we need to develop value-added industries within the oil and gas and other resource sectors. He testified, “we should prioritize value-added development, because these kinds of investments not only create jobs directly in upgrading, refining, and petrochemicals but also create other jobs.” I would add that these investments create jobs that are not as subject to the volatility of global oil prices and create products that will be needed during our transition to a low-carbon economy.
We not only need to be innovative in how we extract and use resources, we need to be innovative in how we regulate the extraction of those resources. I think everyone here would agree that we now have a complete lack of public confidence in our energy regulation process. Nanos Research has published data showing that only 2% of Canadians think we are doing a good job in that regard.
Professor Monica Gattinger of the University of Ottawa testified before committee about her positive energy program, a research group dedicated to studying ways to depolarize the public debate around the oil and gas sector, particularly with regard to pipelines. The supplementary report states:
We believe it is essential that the lack of public confidence in the current environmental assessment process be addressed by permanent, meaningful changes to the National Energy Board process as soon as possible. New Democrats believe that the proposed interim measures introduced by the government are inadequate to address the results of a decade of Conservative dismantling of our environmental protection regime. We share the concern expressed by witness Professor Monica Gattinger that if the process goes ahead without the existing gaps being meaningfully addressed, the end result will further erode public confidence in the entire assessment regime.
The supplementary report goes on to say:
We are disappointed that the majority report fails to recommend a speedy review of the NEB process as this had been a clear electoral commitment of the new government. We are disappointed that the newly announced review panel process contains no timeline for actual legislative changes leaving the Conservatives inadequate process in place and creating uncertainty for all stakeholders. We recommend that the government move faster to make the necessary permanent changes to the NEB assessment process to restore public confidence and ensure that it is fair, neutral, science based and designed to meaningfully engage communities.
Where are we now? Shortly after this report was tabled in the House, the government granted permission for the Trans Mountain expansion pipeline to proceed, and a few weeks ago, the Federal Court of Appeal quashed those approvals. The court cited two significant failures: the government failed to consider the environmental impact of the project on coastal marine environment, and the consultations with first nations were completely inadequate. The government officials who met with first nations groups were mere note-takers who mistakenly believed that neither they nor cabinet had the authority to change the findings of the National Energy Board in the consultation process.
What did they think consultation was about? If they thought it was about noting the concerns of first nations and telling the first nations they had no power to change anything with regard to the pipeline, that is not consultation. Consultation is listening and then acting on concerns, trying to make accommodations.
Here is what our first supplementary report had to say about first nations consultation:
The Government must also act quickly to honour its obligations to a Nation to Nation relationship with Indigenous peoples including proper consultation and accommodation on all energy projects and the protection of Indigenous rights. During testimony, industry representatives were clear about the importance of fixing the consultation process sooner rather than later. The Government of Canada, as representative of the Crown, is responsible for these duties and while proponents of projects should be a part of this process, we believe these responsibilities should not be devolved to proponents to fulfill, as was too often the case under the former Conservative government. The Government must take a much larger, hands-on role in creating the environment in which meaningful consultation can take place.
The supplementary report goes on to support Bill C-262, which would ensure that federal legislation is consistent with the United Nations Declaration on the Rights of Indigenous Peoples. This bill was brought forward by our colleague in the NDP caucus, the member for Abitibi—Baie-James—Nunavik—Eeyou. While we are happy to report that Bill C-262 has passed through the House of Commons, we were disappointed to see that its spirit was not included in Bill C-69, legislation that would implement changes to environmental assessment and energy regulation in Canada.
Here we are two years after this report was tabled. The NDP was criticized back then for its call to redo the Trans Mountain expansion process under a proper system. Critics said it would take too long, maybe another year or two. Here we are two years later back at square one. The decision of the Federal Court of Appeal is a reminder that we have to put in the effort at the start. There are no shortcuts.
I mentioned Nanos Research earlier that noted the pitifully poor state of Canadians' confidence in our energy regulation system, but it did point out there was a way forward. The polling data demonstrated that if the Canadian government could show it was consulting properly with indigenous communities by asking local communities about these decisions and developing a meaningful consultation process, Canadians would have more confidence in the procedure. There is a way forward.
I just want to read out some of the testimony from a witness representing the Indigenous Health Alliance who criticized the National Energy Board in particular for not engaging indigenous peoples early enough in its regulatory approval processes. He recommended the following measures to improve indigenous community engagement, which come right out of the main body of the report we are discussing tonight:
Early engagement of indigenous communities in the NEB process—by involving indigenous communities in “the problems, solutions and implementation strategies of any resource development project at the earliest reasonable opportunity”;
Acknowledging the multidimensional nature of resource development issues—by recognizing that resource development projects involve broader considerations related to education, health, economic development, the environment, etc. He stated that a consultation process that does not acknowledge and address these issues clearly will ultimately fail to address the real problems;
Including community leadership, namely elders, in the decisionmaking process—by recognizing elders as a stakeholder group that should be directly involved in setting the project agenda;
Acknowledging that indigenous peoples are reasonable and pragmatic about resource development—they are likely to support approval processes that respect their community-based needs;
Involving communication and consultation experts—ones that could accurately interpret and convey community concerns to governments and project developers; and
Recognizing indigenous peoples as a “third level of government” in Canada—which is how they are functionally recognized by the court system.
We have significant natural resources in Canada and they have always been central to our country's wealth. However, we must ensure that these shared resources are managed in the best interests of all Canadians, with a focus on protecting the environment, ensuring meaningful consultation with affected communities and indigenous peoples and maximizing economic benefits.