Mr. Speaker, I am pleased to speak on Bill C-6, the Mackenzie Valley resource management act. I have been listening to my colleagues on all sides of the House speak to this bill. It has been a very interesting and rewarding experience, to say the least, that we have agreements on various aspects, if not the total intent and principle of the bill.
First, the principles on which this bill is based are sound and acceptable I believe to most members. The obligation to provide a bill to help us to give life to provisions of those claims that have been settled is quite clear.
We have an obligation because we have enacted legislation at another time that clearly indicates that in order for those claims to have full effect and force, this regime needs to be enacted. That is quite clear. It is indisputable.
I believe that Bill C-6 is proposed to enhance local public government in the Mackenzie Valley, to provide certainty and consistency for residents and industry and fulfil outstanding obligations under the Gwich'in and Sahtu Dene and Metis land claim agreements.
It is not unusual for any government to find itself in a catch-22 situation because not all things happen at the same time or at the same speed. There are those in the Mackenzie Valley area who have yet to settle their claims. There are those who have concerns but we are only at second reading of the bill. It is quite plain to see that the democratic process will allow them to have their say, that will make provisions for them to speak their mind to the bill and to quell their fears.
Some features of the Mackenzie Valley resource management act will act as an advantage to Mackenzie Valley First Nations without claim settlements. These are to be interpreted. When we interpret them each individual and group comes up with its own interpretation.
First, clause 5(2) should give some comfort to those individuals. It speaks to the aboriginal and treaty rights being protected under that clause. It is an act that would be reviewed in consultation with First Nations, which I just spoke to previously. Clause 5(1) states that it does not affect the Indian Act.
Clauses 99 and 112 provide for the nomination of members to the boards, thereby providing a much stronger voice in resource management decision making throughout the Mackenzie Valley.
Clause 108 allows for permanent regional land and water panels on settlement of land claims.
There are also advances for the Government of the Northwest Territories. It clearly support this. We have in writing the support of the territorial government for this integrated management resource regime. It is a system it feels holds the principles of equality that will allow for all groups to come forward and to participate with a good sense of fairness and equal participation.
It also talks about public boards in parts 4 and 5 while integrating the regions. It provides a form of public government that may accommodate self-government, co-management of resources endorsed by the Royal Commission on Aboriginal Peoples.
Many of these issues and nuances that relate to it or aspects of it could be debated by various members but generally the obligation for us to enact this bill is clear. The principles that it holds are democratic, fair and representative and I believe have a fair buy-in from all parties concerned.
The government is not into a regime of overregulation so that industry cannot move. That is not what this government is on about. We are not about exclusion and hiding a set of guidelines that preclude everyone else. That is not the extent to which the government would like to operate. What we are on about is to make it so that the goals are commendable and that there are clear reasons for this House to support this legislation.
The parliamentary secretary has informed the House that the regional land claim agreements of the Gwich'in, the Sahtu Dene and Metis commit the government to establish a new resource regulatory regime in the respective settlement areas. They have also heard from NDP members, members opposite, and my hon. colleague from the Conservative Party who just spoke about some of these issues.
The boards created under Bill C-6 are public government boards which will operate in the public interest. These boards are extremely important. Not only is the process important but the ensuing products of this act will be extremely important because they are integrated and they are meant to serve all people. They are meant not to prejudice, nor to abrogate or derogate the rights of those who have yet to settle their claims.
The intent of the government is to serve all fairly. That is what raises the whole spectre of a catch 22. In trying to serve all members of its constituencies fairly, we face this dilemma. We are at second reading. We know that those individuals who have concerns have the opportunity to be heard. That is extremely important.
Under the new regime, people from the Mackenzie Valley will sit on the boards. There will be an opportunity for increased input through public hearings. As well the nominees of different groups will bring their own perspectives to the boards resulting in a balance of interest and best overall decisions.
I would like to speak to why it is absolutely important that we have this regime. In the Northwest Territories we are about to become the producer, a significant producer of quality diamonds in Canada's north. By 1998 the first mine will account for about 6% of the world's diamond production by value. With other prospects coming into production this could climb to 15% or more within the next 10 years.
We do not hear much about that. We hear about Voisey's Bay and all of the other regimes which are coming forward, but this is significant. This is the largest diamond development in the western hemisphere, outside of a small diamond development in Colorado to the south of us.
The diamond industry is unlike any other. Canada will soon join an exclusive club of producers of one of the most valuable and coveted commodities on earth. We are believed to be in the top percentage of the highest value of diamonds in the world. Diamond mining produces an exceptionally high return on investment at approximately 50%.
For example a company which is currently in diamond development in the north will recover the capital costs associated with its first mine at Lac de Gras within the first five years of operation. How many businesses do that? Usually there are long term strategic goals for economic recovery in a new business. This is significant. The company will go on to generate over $14.3 billion in income during 25 years with just one mine. There are other proposed mines. Its profit over that same period is estimated at $4.3 billion.
Yes, I am aware that there are fair returns for the people who live there, but there are other things we must consider.
The Government of Canada will also be a major beneficiary of the north's new diamond mining industry. It will earn $2.4 billion in taxes and royalties just with the first diamond mine. The federal government's net fiscal benefits increase to $4.4 billion when royalties, corporate and personal income taxes, indirect and induced fiscal impacts and grant offsets to the Government of the Northwest Territories are factored in. These are all new numbers. They are not generated by our government but they are out there.
Of all the parties involved, the Northwest Territories stands to gain the least from this lucrative industry. It will receive only $.2 billion. So far that is the information we have and the information I have. All this to say that the $7 million raised annually in tax revenues by the territorial government will be far less than what it will spend on infrastructure and social programs over the lifetime of the mine. That is significant considering the cutbacks various levels of government have experienced.
Despite advertising claims, diamonds are not forever. The governments and people at the territorial level feel that the newest industry in Canada, developing diamond value added industries in Canada should be done in the north. Billions of dollars and potentially hundreds if not thousands of manufacturing and retail jobs are at stake.
Every diamond producing country in the world demands valuation and sorting take place within its borders before diamonds are exported. This apparently is the standard. Many require that diamonds be set aside for domestic production or insist on a cutting and polishing industry domestically.
As a result, thriving diamond industries exist in places as diverse as Gaborone, Botswana, Freetown and Perth. In the Northwest Territories the residents and the leaders believe no less and we share the same view that those value added activities should happen within our own borders. What happens in the Northwest Territories is good for Alberta, Manitoba, B.C., Saskatchewan, Newfoundland, Quebec and Ontario because we have a small population. We attract those people by way of service contracts and workers.
When I go home I travel almost every week with workers who are going out to those activities including the other mines that had a rough ride with their stocks and shares last night. Nonetheless there is that kind of development in the north.
In the Northwest Territories we have other activities that are ensuing. Lots of land has been put up for bid for exploration. Some very welcome contenders have put bids on those. I cannot say the names of those groups. They are in the oil and gas field and we also have gold and other mineral resource development in the north.
Oil and gas is a major industry for our people in the north and we value that. That is why we seek a balance with this legislation. We know we need to have that kind of a balance. We know we need to be able to speak to all the parts of this bill, all the constituents of this bill, not just one aspect.
It is extremely important that the recipients, the major benefactors in terms of resource development, be northerners. That does not mean them exclusively. It means other levels in this country, the federal government, the territorial government, the municipal governments, industry and various other industries from abroad should benefit as well. There is a balance to be struck but there is far greater opportunity than I think we recognize.
This is an important bill because it is a step forward in the devolution process in the Northwest Territories. It will ensure government for and by those directly affected by the decisions. It will ensure better overall planning of development, as well as a better understanding of the cumulative environmental effects of development. These boards will serve the interests of land owners, developers and the public alike.
I am not a stranger to the views that prevail out there on this particular bill. I have had access to industry members who do not necessarily favour it. I have had access to aboriginal groups who do not favour various parts of this bill but who think the principles if they apply to everyone are fair and okay.
I have had access to the groups that will be well served by this bill but who understand and are sensitive to their colleagues. They know that nonetheless unless they have this bill they will not be able to enact those provisions in their claims. They cannot move forward to actualize and implement their claim the way they should unless they have this bill.
Therefore the dilemma we have is that we must do our level best in this House, as members of the House, to serve all of those who would best be served by finding the balance in the legislation to respect the rights of all those who will be affected by it. That does not mean we do not do anything, that we are caught in inertia or that we are paralyzed. It means that we must be careful and thoughtful, which is what we do as legislators, and we should be.
The new boards will have powers under the legislation. The boards will have the right to summon witnesses and order them to give evidence or produce documents necessary for carrying out the board's responsibilities. This will be enforceable in the same manner as an order of the courts.
Decisions and orders of the boards may be appealed to the Supreme Court of the Northwest Territories. If there is a conflict between this legislation and a land claim settlement, the settlement agreement will prevail. That is apparently the law.
The law is subject to interpretation and it is subject to the way it is enforced. Laws are not meant to be brutal. Laws are meant to be enforced considering the human factor. The human factor is a multifaceted one. It is one which has many sides.
We do not live in the Northwest Territories, especially in the Mackenzie Valley, in a homogeneous setting. We live in a heterogeneous setting. We have many cultures and many groups. We have many people with different levels of education and skills. We have people who are in industry. We have people who have an extreme attachment to environmental issues.
We continue in our own way in the Northwest Territories to find the balance. I as a legislator am tasked with this. My view is that it is important that we fulfil the crown's commitments to the Gwich'in, the Sahtu Dene and the Metis.
As the parliamentary secretary has indicated, extensive consultations have taken place regarding this legislation. I appreciate the concerns and issues which have been raised by the First Nations in the Northwest Territories. It is my obligation as their member of Parliament to see this time as an opportunity for discussion and debate to continue. Let them come forward with their views. They can best speak to them. I cannot speak on their behalf.
I therefore urge my hon. colleagues to join me in supporting Bill C-6. It speaks to many of the issues I have raised, such as the profile of one of the major developments in the western hemisphere, the whole diamond industry, which is unprecedented in North America.
We have an opportunity to build. We have an opportunity to share. We have an opportunity to work together. I do not see any mitigating factors which would prevent us from doing that. I do not see anything stopping us from engaging in a process that is fair, consultative and that looks for the best product for our citizens. It is our obligation to do that as members of Parliament, as ministers of the crown, or whatever role we are engaged in in an official capacity.
I hope we will take this opportunity to invite those who have questions to come forward and to speak for themselves.