Mr. Speaker, I am sure the public is well aware that we are debating Bill C-22, an act respecting Canada's offshore oil and gas operations, enacting the Nuclear Liability and Compensation Act, repealing the Nuclear Liability Act and making consequential amendments to other acts.
This legislation has a number of sections, but the part that I will focus on is the fact that it would modify Canada's civil liability regimes for the offshore oil and gas industry and it would notably increase the absolute liability threshold to $1 billion to operators of offshore oil and gas and nuclear facilities. The current threshold for offshore oil and gas operations are $40 million in the Arctic and $30 million for all other offshore areas.
Offshore drilling does not take place in all parts of Canada. The legislative summary points out that, in addition, offshore exploration activity is currently being conducted in Newfoundland and Labrador and Nova Scotia. Offshore petroleum wells may also be drilled in the Beaufort Sea. Drilling programs there are undergoing a regulatory screening process. In addition, offshore basins near Nunavut's high Arctic islands and in the eastern Arctic may be developed in the future.
Currently, there is a federal moratorium on oil and gas activities in place on the offshore of British Columbia. In Quebec, a provincial moratorium exists on the oil and gas offshore activities in the Gulf of St. Lawrence. A permanent prohibition on such activities applies in waters northwest of the Gulf of St. Lawrence and its estuary.
What we have heard from the other side is that the New Democrats should approve and support whatever bill the government brings forward. One member talked about the fact that this was all about jobs. Any responsible member of Parliament must, first, do their due diligence. However, second, when we talk about resource development and issues pertaining to resource development, we need to consider them in the economic, environmental and social contexts. We would be irresponsible if we did not take a very broad view of any resource development that happens in Canada and the consequent liability.
The NDP has been critical of this bill on a number of fronts, but there are three principles of sustainable development: equity, precautionary principle and broad inclusive participation. Bill C-22 would not uphold the polluter pays principle in the nuclear part of the bill and it would fail to create an inclusive consultation process for projects. It would allow the minister to be subject to lobbying, thus reducing the minister's accountability.
Bill C-22 would not mandate a solid inclusive consultation process for specific projects, which is essential, given the potential impact these projects could have on the quality of life and well-being of concerned communities and regions.
The government's proposed $1 billion cap for offshore drilling would apply to no fault liability, while operators would continue to face unlimited liability should they be found at fault or negligent. Companies would also be required to demonstrate to the regulators their financial capacity to cover $1 billion in cleanup costs should it become necessary. It would also increase coverage for exploratory drilling operations offshore, production operations, the loading of tankers for transport and undersea pipelines, such as natural gas from Sable Island to the Mainland in Atlantic Canada.
Here is the sticker. The bill would provide for ministerial discretion to reduce absolute liability levels to below the legislative level of $1 billion. This discretionary provision could undercut the advantages of the legislative increase in the absolute liability limit contained in Bill C-22.
The legislative summary refers to section 2.1.4.2 under “Public Hearings”. Bill C-22 would add new sections to the Canada oil and gas operations, allowing the National Energy Board to conduct a public hearing in relation to the exercise of any of its powers or the performance of any of its duties and functions under the act.
The New Democrats absolutely support a public process with regard to reviewing applications that come forward around resource development. However, I want to highlight the fact that the National Energy Board has been subject to some pretty severe criticism with regard to its operations. Simply because it is in this bill that the National Energy Board would be able to conduct a public hearing, it does not give us any confidence about how that public hearing would be conducted, who would be involved and whether the information would actually be considered.
I want to turn to a letter dated October 30, that was sent to the secretary of the National Energy Board. It is about an intervenor making a licence withdrawal from the hearing on the Trans Mountain expansion project. I will read an excerpt from this letter, because again, if the legislation mentions it but we do not have confidence in the process, why would we support it? In this letter, the intervenor says:
The unwillingness of Trans Mountain to address most of my questions and the Board’s almost complete endorsement of Trans Mountain’s decision has exposed this process as deceptive and misleading. Proper and professional public interest due diligence has been frustrated, leading me to the conclusion that this Board has a predetermined course of action to recommend approval of the Project and a strong bias in favour of the Proponent.
In effect, this so-called public hearing process has become a farce, and this Board a truly industry captured regulator.
If the government is to review applications in sensitive offshore areas like the north and if this is the kind of process to which these reviews would be subject, it does not leave us any confidence that we will end up with the best kinds of decisions.
The letter goes on to say:
In addition to gutting the oral-cross examination feature of a public hearing process that supports proper questioning and an adequate level of due diligence, there are other Board decisions that have been made over the course of this hearing that reflect a pre-determined outcome.
The evidence on the record shows that decisions made by the Board at this hearing are dismissive of intervenors. They reflect a lack of respect for hearing participants, a deep erosion of the standards and practices of natural justice that previous Boards have respected, and an undemocratic restriction of participation by citizens, communities, professionals and First Nations either by rejecting them outright or failing to provide adequate funding to facilitate meaningful participation.
Certainly in British Columbia that continues to be an ongoing source of irritation, which is probably too light of a word. However, many people who want to intervene in an NEB process simply do not have the capacity to review the thousands of pages of documents and to present a finding, so funding becomes critical, particularly with regard to first nations communities that will be directly impacted by projects.
It is a lengthy letter, so I cannot read it all, but further in the letter the intervenor indicates:
The Board had stated that the elimination of cross-examination of the Proponent’s evidence can be evaluated through the two scheduled Information Requests. But we have a Kafkaesque outcome. Trans Mountain refuses to answer questions and the Board does not compel them to do so.
We have a proponent that can say whatever it wants, yet intervenors have no ability to question it, because the board will not allow the questions.
The intervenor goes on to say:
The Province of British Columbia stated that “Trans Mountain’s failure to file the evidence requested by the Province in Information Request No. 1 denies the Board, the Province and other intervenors access to the information required to fully understand the risk posed by the Project, how Trans Mountain proposes to mitigate such risk and Trans Mountain’s ability to effectively respond to a spill related to the Project.”
The National Energy Board is not fulfilling its obligation to review the Trans Mountain Expansion Project objectively. Accordingly it is not only British Columbians, but all Canadians that cannot look to the Board’s conclusions as relevant as to whether or not this project deserves a social license. Continued involvement in the process endorses this sham and is not in the public interest.
One of the reasons the NDP has objected to the bill is the lack of clear process around public consultation. The government continues to say that Canadians should not worry, that the National Energy Board will look after their interests. When we have had a very credible intervenor raise questions about the NEB's independence, we need to do a far better job of telling Canadians how projects would be evaluated.
We need that openness, transparency and accountability so Canadians have confidence that when a project is approved, that it has been tested for the environmental, economic and social impacts. It is with very good reason that the New Democrats do not support the bill at this stage. We attempted to make a number of amendments at committee stage and of course to no surprise, those amendments were rejected by the government.
I point out, once again, that we are under time allocation and that limits the amount of time and the number of witnesses who can be called to review the bill. With very good reason, the New Democrats oppose the legislation.