Mr. Speaker, I am pleased to rise to speak, especially when it comes to the economy. I think this is a major issue, and it is important to question what the Conservatives are doing.
When the economy is doing well, then it is thanks to their good management. When it is not doing so well, then it is because of international factors beyond their control. In my opinion, this is not a responsible government, and it has become patently clear that the Conservatives are not willing to take responsibility.
The NDP is ready to make good decisions and accept our responsibilities. It is easy to blame others, but if we want to correct the situation then we have to make choices and be transparent about it. That is the best way to show respect for the Canadian public.
The Liberals' and Conservatives' choices have made Canada an economic giant with feet of clay. They have reduced our ability to adapt when times are tough, what with our increasingly mono-industrial economy largely based on the energy and oil sector.
I would like to take a moment to provide a bit of background on natural resource development in Canada.
At first, the economy was based mainly on agriculture and forestry. Then development shifted from the farms and forests to Canada's underground resources. The importance of metals and minerals increased over time with the evolution of technology, which was mainly spurred by the introduction of hydroelectricity and improved railways, roads and infrastructure.
Furthermore, improvements in mining machinery and drilling techniques led to greater knowledge of mineral deposits, improved access to minerals and lower transportation costs.
Between 1886 and 1947, agriculture was joined by forestry, then mining and finally energy. With the exception of the early appearance of the oil industry in Oil Springs, Ontario, oil was not a major component of energy production in Canada until 1947, the year oil was discovered in Leduc, Alberta.
After the 1973 oil price shock, the production of conventional energy sources increased and technological innovation led to the development of Canada's oil sands.
When we look at the evolution of resource development as a percentage of Canadian production, we can see that the sectors were balanced from the late 1960s to the mid-1970s. We then saw an imbalance in energy sector compared to the other economic sectors in the 1980s and in the 1990s under the liberal government. This imbalance consolidated Canada's economic dependence on oil, which we has become clear over the past 10 years under the Conservatives.
Now, the oil and gas industry is concentrated in Alberta and Saskatchewan. However, offshore production also plays an important role in Newfoundland and Labrador's economy.
Although the importance of energy products has soared over the past 40 years, Canada's economic history has been shaped by the wealth of all of our resources. Energy is the latest example of the major dependence Canada has developed in a global, integrated economy.
Although natural resources financed Canada's development for generations, all of our eggs are now in the energy sector basket, which confirms what the Leader of the Opposition said in 2012.
In 2014, when the price of crude oil reached a high of around $114 U.S. a barrel and a low of $55 U.S., Canada's exchange rate fluctuated from more than 91¢ U.S. to approximately 86¢. Yesterday's rate was 81¢ U.S., as it was 10 years ago when the Conservatives came to power.
In light of the background I just shared, I think it is important to understand a few things.
The current drop in the price of oil is closely linked to the fact that there is more supply from other countries, such as Saudi Arabia.
That is what has led to lower prices. It should be remembered, however, that there has also been a reduction in demand, because a number of countries have elected to move towards a greener economy and reduce their dependence on oil. The reduction in demand is going to continue.
If there have been major changes in our business to reduce our energy requirements and the cost of energy falls, we are not going to revert to what we have just changed. That is obvious. Countries are therefore going to continue to move towards a greener economy, because the price of oil fluctuates widely and makes budget planning difficult for many businesses and economies around the world. Demand will therefore continue to fall.
Even when oil prices are high again, there is no certainty that demand will be what it once was. It is therefore very important to diversify our economy, not just when the going is tough, but also when things are going well. We have to plan appropriately when things are going well in order to cope with adversity. Unfortunately, the Conservatives did not do so, and we are therefore in a critical situation. It is essential for people to have an idea of exact prices and of the general situation. That is why we introduced this motion.
The Conservative government said that we had to encourage the manufacturing industry to take up the slack and stimulate the economy. Unfortunately, one of the problems caused by the drop in the price of oil is a drop in the Canadian dollar. At the present time, manufacturing businesses are already at the limit of their productivity. If they want to buy equipment to improve their productivity, which they have not done previously, they have to pay for it in U.S. dollars. They are therefore losing 20%, as compared with when the U.S. dollar was roughly at par with the Canadian dollar.
Manufacturing firms will have to pay 20% more to buy equipment, which is in most cases purchased outside Canada and thus priced in U.S. dollars. Even if we rely on manufacturing firms to stimulate the Canadian economy, there is an additional challenge, because the situation in which they have been placed means that they no longer have the same buying power to increase their productivity. In short, we are in a bind, and our freedom of action is limited.
To conclude, if we want a reliable economic plan for the future, we have to understand that it must be based on a green, prosperous and sustainable economy. Greener and more sustainable energy choices must be made, and the opportunity must be made available on a worldwide scale. The more green energy opportunities are made available, the more people will be able to do business. When our economy is based on oil, it becomes unstable and unpredictable, because the price of oil fluctuates. World economies are going to endeavour increasingly to eliminate at least a portion of their dependence on oil in order to move towards more reliable energy sources. That should be one of the priorities for the Canadian economy.
Forward-looking measures must be taken to support the middle class and prevent it from being subjected to the adverse consequences of Conservative mismanagement. Canadian companies must be supported in their efforts to improve production capacity, even at times when things are going well. This was not done when the Canadian and U.S. dollars were roughly at par. If investment had been stimulated when it cost much less for companies to acquire new technology, thanks to the strength of our dollar, they would now have the ability to increase their productivity and cope with the current situation.
We must also support economic diversification, particularly with regard to natural resources. We should avoid focusing only on the sector that is doing well, neglecting the others and finding ourselves, as we do now, with an oil patch that is not doing well and other sectors that have been so underfunded and given so little support that they are hard pressed to take up the slack.