Mr. Speaker, the Prime Minister is imposing an emissions cap that functions as a production cap, creating uncertainty, driving away investment and threatening the livelihoods of thousands of workers across our province. Offshore oil and gas requires high upfront capital costs and long timelines to production. Without certainty, there will be no investment. That is why this cap must be repealed to give investors the confidence they need to develop our resources and create powerful paycheques for Canadians.
Newfoundland and Labrador has a saying. If a person is talking out of both sides of their mouth, it means they are saying one thing while their actions show the opposite. The Prime Minister came to the province and talked a good game about supporting our offshore oil and gas, but he has refused to repeal the production cap. Now is his chance to prove that he is not talking out of both sides of his mouth by backing up his words with action and supporting our motion. The truth is that this policy carries devastating real-world consequences. Newfoundland and Labrador's offshore sector employs tens of thousands of Canadians and significantly contributes to our GDP each year. By continuing to impose a cap, the government threatens thousands of jobs for the next generation.
Every year, families leave Newfoundland and Labrador in search of well-paying jobs elsewhere in Canada. These are not just numbers. These are our neighbours, our friends and our children, who are forced to relocate because opportunities in their own province are being stifled. The offshore oil and gas sector has the potential to create these high-paying jobs right here at home, keeping families together and communities thriving. The stakes are national. Instead of strengthening our economy and supporting workers, the Prime Minister's emissions cap would devastate jobs in the energy sector and drive up costs, making life more expensive for Canadian families.
The Parliamentary Budget Officer laid this out plainly back in March. This cap would slash oil and gas production by nearly 5%, wipe out $20.5 billion from our GDP annually and destroy 54,000 full-time jobs by 2032. This is not a theory; these are facts. These are numbers verified by Parliament's own budget watchdog, yet, despite all this, the government presses on with its ideological crusade against Canadian energy. What does this mean in practice? It means shutting down opportunity for Canadians while forcing our allies to buy more oil and gas from dictators. The world is crying out for more secure, responsibly produced energy, and no country does it better, and in a cleaner or safer way, than Canada.
However, instead of backing our workers, the government doubles down on policies that drive away investment. From May to September alone, $54 billion of investment fled Canada. That is on top of the half a trillion dollars lost during the Liberals' first three terms. What do we have to show for it? We have no new pipelines, no new mines, no new nuclear plants and now a proposed shadow carbon tax on top of the industrial carbon tax.
The Prime Minister promised strength but has delivered weakness. He promised results but has delivered rhetoric. He promised to stand up for workers but, instead, stands up for ideology. This matters deeply to my province. This sector has the potential to be a cornerstone of Canada's trade diversification strategy, because offshore oil is one of the few Canadian resources with direct access to tidewater, allowing us to sell to markets beyond the United States.
Under the Liberal government, the story of Newfoundland and Labrador's offshore is one of decline. Since 2016, offshore capital spending has dropped by 60%. This year, not a single new exploration well has been drilled. Meanwhile, other offshore jurisdictions, such as Norway and Brazil, are attracting billions in new investment. Why? It is because their governments provide certainty, clarity and confidence for investors. Here in Canada, we provide confusion, delays and regulatory paralysis.
I have spoken directly with proponents in this sector, including OilCo, the provincial Crown corporation responsible for managing our offshore. OilCo CEO Jim Keating calls the federal government's emissions cap an “investment killer”. That is what Keating told reporters at the Energy NL Conference in St. John's. This policy creates deep uncertainty in investment decisions, because companies cannot and will not commit billions of dollars when they do not know if Ottawa will allow them to produce the energy that Canada and the world need.
The facts are undeniable. The Liberal government has imposed policies that stifle investment, drive away capital and threaten the livelihoods of thousands of hard-working Canadians. Newfoundland and Labrador's offshore oil and gas sector represents a unique opportunity: high-paying jobs, billions in GDP, access to tidewaters and a direct contribution to Canada's trade diversification.
However, instead of supporting this potential, the government has layered on regulatory uncertainty and maintained an emissions cap that functions as a production cap. Families will continue to leave our communities in search of opportunity, and investors will be forced to look elsewhere. Repealing the cap is not just a policy choice; it is a chance to signal that Canada values its workers, its provinces and its energy future.
This motion is a clear step towards restoring certainty, growth and prosperity for Newfoundland and Labrador, and the country as a whole. The government needs to answer this: Is the emissions cap still its policy, or is it finally willing to scrap it in favour of measures that would actually attract investment instead of driving it away?
Canadians know what is at stake. Nearly a million people across this country rely on the energy sector for well-paying jobs. Communities in Newfoundland and Labrador, Alberta, Saskatchewan and British Columbia depend on this sector for opportunity and growth. Our energy industry is also the single largest private sector investor in clean technology; it is driving innovation and cutting emissions while upholding the highest standards of environmental protection.
After 10 years of Liberal government and anti-growth policies, what do Canadians face? They face lost jobs, lost investment, lost opportunities and a government more interested in ideology than results. Only Conservatives will stand up for our workers, our energy and our country.
This is the Prime Minister's moment to put words into action. By voting with Conservatives on this motion, he can finally demonstrate that he truly supports Newfoundland and Labrador's offshore industry, a sector with direct access to tidewaters that aligns perfectly with his mandate to diversify Canada's trade. He can stand behind Canadian workers, secure investment and deliver prosperity for our province. The people of Newfoundland and Labrador are watching. Now is the time to act.