Mr. Speaker, I want to thank my hon. colleague, the member for Abitibi—Témiscamingue, for graciously sharing her time with me in this important debate about Bill C-22, an act respecting Canada's offshore oil and gas operations that would also enact a nuclear liability and compensation act and make consequential amendments, including repealing the existing Nuclear Liability Act.
I also want to congratulate my colleague, the member for St. John's South—Mount Pearl, for his very forthright and passionate speech on this issue and on the industry in Newfoundland and Labrador, which has been so important to the fiscal position of the province and has provided opportunities for legions of workers, both in the offshore field itself and in engineering and related matters, bringing about great prosperity for Newfoundland and Labrador.
I am pleased to speak to this bill because it is an opportunity to talk about this issue and its importance within the Canadian context.
We hear a lot about western Canada. I went to law school in Alberta. I am very aware of the importance of that industry there and the oil sands, as well, but I think sometimes it overshadows the role that east coast oil and gas plays in total production and its importance to the overall Canadian scene.
We are concerned, of course, as is every country and anyone else aware of the consequences of potential oil and gas spills, both on land and at sea, about the danger of pollution and the danger of a spill that could have a catastrophic effect. We saw that in the most recent Macondo case in the Gulf of Mexico, which had huge consequences for Gulf, for the fishers in the area, for the communities, for the environment, and for all of the sea life affected by this particular spill. As as result, the need to take a close look at the liability regimes has been brought into sharp focus.
We support the bill at second reading. We want it to go to committee. We think that significant improvements have been made here. I do not know if it has been mentioned before, but the words “polluter pay” actually appear in the bill. I think that is the first time they have ever appeared in a bill in Canada. It is something that our leader has spoken about as a basic principle of our party when it comes to sustainable development. One of the hallmarks of sustainable development is that to make it sustainable, it is the polluter that should pay if there are any consequences of its economic activity, and not the public.
Here, we have a significant rise in liability from what has to be considered a ludicrous amount of $30 million, to $1 billion in the case of offshore oil and gas, and generally from $40 million to $1 billion in the case of the Arctic, for no-fault risk.
Some people might say, “Well, if it is not our fault, why should we have to pay at all?”
The reason is that they are the author of the activity they are engaging in to obtain profit and they have to pay the consequences if something goes wrong.
It is not as simple as “no fault” or “your fault”. As a lawyer, I know that deciding who is at fault and what the fault is, is often a very long, tortuous, and expensive process. In case of the kind of activity we are talking about here, we need to know that the initial responsibility rests with the person who causes the damage, that the damage is going to be fixed, and that people who need compensation are going to be compensated. A no-fault system allows that to happen.
The at-fault position is that there is not a limit on liability. The limit, I guess, is the ability of the operator to pay. That also comes into effect and we need to know that people who are engaged in this kind of activity, which is dangerous to the environment and to life and limb, are responsible and capable operators and companies that can actually carry out this work.
I say life and limb; it is often overlooked that the Deepwater Horizon project that blew up and caused this big damage also cost 11 workers their lives in that explosion. It is still a very dangerous activity, as we know from the Ocean Ranger disaster in 1982 and the Cougar helicopter crash recently and another crash a couple of decades ago. It is a dangerous activity that requires serious and responsible actors in the business, and so we would want to make sure that they are responsible for the damage they cause.
The act itself has some significant limitations. I am still puzzling over why one would say we are going to raise the liability from $40 million to $1 billion and then say the minister can waive that requirement. There does not seem to be any particular conditions as to when he or she might do that, and so one wonders why it should be there at all.
I can see the lineup now. Everyone would want an exemption because they would say they cannot really afford that or would not be able to get insurance or not be able to operate. Everything would supposedly come to a standstill if that were enforced. The minister is going to have a lot of people at the doorstep, looking for the exemption.
In the United States, the limit is $12.6 billion. In Denmark, Norway, Switzerland, Australia, and in numerous countries, there is no liability limit. In those countries, Norway and the United States being good examples, this has not prevented the development of robust and successful offshore oil and gas developments. We need to know why Conservatives are asking for that, but we would have a great deal of difficulty supporting that kind of exemption unless they convince someone that it was limited to one or two particular circumstances that may make sense. I do not know what they are. We have not heard the case for that yet.
However, we do see some progress here. The $1 billion, in fact, was an amendment suggested by the NDP in the last Parliament when a piece of legislation was brought forward, never really seriously, because it was left on the order paper for a year before the last election, but $650 million was proposed. The NDP recommended it be put at $1 billion at that time, which of course did not happen and the bill died on the order paper. This is a step forward, but there is a very strong case for unlimited liability and certainly a number more than $1 billion, and that is something to discuss at committee.
When we are talking about oil and gas development and pollution problems, there is the issue of spill response and what the capability is of dealing with an oil spill if it occurs. There is significant concern about that in the Atlantic and the existing regime right now. In fact, in a 2012 report, the Commissioner of the Environment and Sustainable Development was critical of the industry and critical of the regulators, both in Nova Scotia and in Newfoundland and Labrador, for not being in a position to take over responsibility for oil spills if they occurred. In the case of Newfoundland, a study started in 2008, just to define and determine what the operator's capability was regarding oil spill containment and activity, has not been completed.
Officials tried to determine what the capability was. They had to review the spill response capability of operators. They said they were going to do it, but they have not done it. They said they were going to do it by March 31, 2013, after five years in the making. As my colleague from St. John's South—Mount Pearl pointed out about a month ago, officials still have not produced that report.
The member for St. John's South—Mount Pearl, the member for Burnaby—Douglas, and I met recently with the C-NLOPB, which promised to have this report out very shortly. We look forward to that. We do need to know that if there is any kind of a spill, the oil companies have the capability to respond to it, to give the public confidence that this industry can be operated in safety and that the environmental concerns are taken into account.
I see that my time is up and I look forward to any questions and comments members may have.
