Mr. Speaker, I rise tonight on behalf of those who have been cut out of the conversation on the Liberals' pipeline MOU with Alberta Premier, Danielle Smith, and the Canadian taxpayers who are continually on the hook for big oil subsidies. It is time for their voices to be heard. The MOU fails to respect first nations' emphatic stance against a new pipeline to the north coast; fails to respect the crucial principle of free, prior and informed consent; and fails to respect the B.C. government's clear stance that the oil tanker moratorium must stay in place.
However, there is another group this MOU fails to respect, which is Canadian taxpayers. The federal government already subsidizes fossil fuels to the tune of $30 billion, and with no proponent lined up, this new pipeline could be yet another taxpayer-funded, subsidized boondoggle.
We have seen this film before with the Trans Mountain expansion. In two separate investigations, the Parliamentary Budget Officer found TMX to be a net loss. Since the government purchased the pipeline in 2018, its costs have ballooned from $7.4 billion to $34 billion.
In the long term, subsidizing fossil fuel export infrastructure is a losing game and a bad investment. In a climate-safe scenario, around 70% of new LNG projects would never recover their costs due to low demand and a structural oversupply. Carbon Tracker projects that, in the long term, the financial risks of new Canadian oil and gas projects are double their potential rewards, and while taxpayers lose out, big oil is reaping the rewards.
The top five Canadian oil companies made over $25 billion in profits just last year and will make $90 billion in windfall profits from the war on Iran. Big oil is already raking in profits off a pipeline they wanted but refused to buy, and now they want another one. While the Liberals and Conservatives will not even ask big oil to support relief for everyday people through a windfall profits tax, the government is instead subsidizing them further with a gas tax cut that big oil should be covering.
Between this MOU and the over $1.8 billion in subsidies for mainly foreign-owned LNG projects, the government appears ready to repeat the same mistake it made with TMX.
These giveaways to polluters also hurt our health and the health of future generations. We remember the hundreds who died in the 2021 heat dome in British Columbia. We have seen the devastating effects of wildfire smoke, including the tragic death of nine-year-old Carter Vigh. Health Canada points out that these are not distant risks. These are happening now.
There are also growing legal issues. Cases before the courts argue that government failure on climate action violates Canadian charter rights to life, liberty and security of the person. A case in Ontario supported by Ecojustice reached all the way to the superior court before the provincial government gutted its environmental regulations to evade legal scrutiny.
Internationally, an ICJ advisory opinion finds:
The failure of a state to take appropriate action to protect the climate system from [greenhouse gas] emissions, including through fossil fuel production, fossil fuel consumption, the granting of fossil fuel exploration licenses, or the provision of fossil fuel fuel subsidies, may constitute an internationally wrongful act....
It is absurd to ask Canadian taxpayers to subsidize big oil and then go back to ask them to finance their own climate crisis, but that is exactly what the Liberals are doing here. Canadians deserve clarity. Is the government going to commit to a pipeline and tanker project that ignores indigenous consent, deepens the climate crisis and exposes Canadians to financial and legal risk, or will it respect rights, protect communities and invest in a sustainable future by cancelling this backroom deal?