Madam Speaker, it is with great pleasure that I join this debate on the second reading of Bill C-221. I am very honoured to support my friend and colleague, the member for Lakeland. As this is my first speech over Zoom through the virtual Parliament, it will take a little while to get used it, but I am looking forward to adding my voice to those who think this bill should be supported by all parties.
I will go through a couple of discussions on why this is a bill that should unify members of Parliament to come together to support this option of doing the right thing environmentally and making sure we have an idea of how we are going to clean up orphaned and abandoned wells.
I have listened intently to my colleague's speech, as well as those of the members from the Bloc, the NDP and the Liberal party, on what should have been done and the now growing issue of abandoned wells. Obviously we can look to the past and say some things were not done right, but as the government is famous for saying, we need to take a team Canada approach. What we need to do now is look at options for getting these orphaned and abandoned wells cleaned up.
One thing that has come to light that shows why a bill like this should be pursued is the recent Redwater decision of the Supreme Court. None of my colleagues from the opposition parties have mentioned this, so I will mention it. As a result of the Redwater Supreme Court ruling in 2019, federal bankruptcy laws do not supersede provincial environment obligations. This results in many companies no longer being able to find the financing to drill wells to increase their cash flow because, in the case of bankruptcy, investors and creditors would only get paid after all well closures and reclamation costs were incurred.
What we have to do now is figure out how oil and gas companies are going to get access to liquidity in order to continue operating, so these wells can be cleaned up in the long run, as it comes to the environmental part of Bill C-221, an act to amend the Income Tax Act or the environmental restorative incentive act.
For a quick overview, Bill C-221 aims to provide support for the energy industry by implementing a 13% non-refundable tax credit for oil and gas well decommissioning costs. It also instructs government to evaluate the feasibility of flow-through shares.
The bill has received support from many key energy industry and government stakeholders that are focused on orphan well cleanup instead of new extraction projects. Opposition from environmental groups has been minimal. This bill is an attempt at a win-win for energy and the environment. It is being presented as a Conservative solution to an environmental crisis, as well as a way to help energy companies survive and create new jobs.
The member from the Bloc talked about unemployment rates. Right now unemployment rates in Saskatchewan and Alberta continue to climb because of new proposals and policies brought forward by the government. I listened to the member for Lakeland talk about two of the main issues behind the oil and gas sector not doing well. She forgot the third and fourth issues, but she said the two issues were oversupply and pricing during COVID-19.
However, a third and, I would say, more prominent issue that explains why the energy sector is not doing well is the government putting in place policies that have been damaging. We can talk about Bill C-69 and Bill C-48, as well as the continued overburdening with regulations, which energy sectors have continued to meet.
My Bloc colleague brought up the fact that the government bought a $7-billion pipeline. I would respond to the member by saying the government would not have had to buy a $7-billion pipeline if the regulations had been in place and it had not kept moving the goalposts.
A private company would have built that pipeline at zero cost to taxpayers across our country. If those regulations had not been changed, we would have had a private proponent building the pipeline and allowing our energy sector more options on how to transport goods to market.
Another thing about the environmental restoration incentive act is that it is for small and medium-sized producers. As we have talked about already, through no fault of their own, some of the policies that have been put in place have really hamstrung their ability to make ends meet and continue to work and employ people across our country.
The reality is that oil and gas wells that companies intend to decommission are now being suspended, so I think all members in the House can come together and say that we need to ensure we are able to clean up oil and gas wells. I do not think that is a debate among members of Parliament. I know they have been talked about many times.
I think our NDP, Bloc and Green party colleagues should take long look at this bill to make sure that the environmental measures are going to be met and that we will have the ability to clean up these wells once they are decommissioned and abandoned.
I will read a couple of quotes from either late shows or things that have been said in the House of Commons. The NDP member for South Okanagan—West Kootenay rose in the House on February 21, 2019, and stated:
There are over 122,000 inactive wells across western Canada, and most of those wells have absolutely no prospect of ever operating again. That is almost a quarter of the wells out there. Most will require cleanup and reclamation in the near future. Many are on private land, on farms, where they impact the work and lives of farmers who are no longer receiving rental payments for those wells.
That is absolutely true. I agree with his statement. So far there have not been many proposals from the NDP on how we are going to make sure these wells get reclaimed, and I would ask the member for South Okanagan—West Kootenay to take a look at this bill once again, because it does bring forward a reasonable approach to ensuring some of these wells get cleaned up and the land goes back to its original state of being.
The former member for Edmonton—Strathcona rose in the House on February 20, 2019, and said, “[the] government did commit $30 million in budget 2017, when the cost, according to some people, is $260 billion, in support of Alberta's efforts to advance the reclamation of orphan wells.” The former member Linda Duncan is in favour of work to reclaim these wells, and I would like to have an idea of where she would be on this. I think she would be in support of this private member's bill.
The member for Saanich—Gulf Islands on June 17, 2019, during the climate emergency debate, stated:
We must, in that process, include a transition for the skills of workers.
One great example that I will give are the orphan oil wells. There are thousands of them throughout Alberta and northern B.C., which have tremendous potential for geothermal energy production.
Therefore, there are ways to work together on this. Many MPs from across political stripes know that we need to have a policy in place to ensure these orphan wells are cleaned up, and I am looking forward to working with them on Bill C-221, so we do have the ability to ensure that the Government of Canada is coming together for the environmental purpose of making sure these orphan wells are cleaned up.
The other side of this is that it also has the ability to create jobs and employment in the hard hit sectors across Alberta right now. I want to say that this bill would allow friends and families across western Canada to go back to work and help provide for their families once again. I need to know that the federal government is going to be there and is in support of the energy sector.
The Liberal MP who was on her feet today spoke about the support her government has shown to energy and oil workers in the energy sector, and I would like to see that support continue. It has been a minuscule amount of support at this point in time, but with this bill we could put in place the opportunity for companies across Saskatchewan, Alberta, Manitoba and B.C. to continue to stay afloat. We are looking for the ability of these companies to have options to keep their people employed and keep people working across our sector.
On one final note, I realize that a couple of my colleagues have said that the energy companies need to step up and they need to be responsible. I do want our colleagues to stop looking backward. That was in the past. We need to have these companies stay in business and work together to allow them to clean up the orphan and abandoned wells.
I am proud to support the hard work of the member for Lakeland. She is a tireless advocate for her constituents and I am happy to be able to be seconding this bill, Bill C-221.