Jim Carr

[Job Losses in the Energy Sector, February 8th, 2017]

Mr. Chair, I toured the devastation at Fort McMurray with colleagues and with others. I could not believe the ravages of this uncontrollable fire. What struck me most was the randomness of the devastation. We were touring through neighbourhoods, some that had not survived at all, and some that had survived almost one house randomly at a time.

The Government of Canada reacted swiftly and I think appropriately, as did Canadians. The outpouring of affection for Albertans and genuine concern about the devastation of the fire was probably the best example I can think of, of how Canadians came together when Alberta needed the rest of the country in ways that were impactful and meaningful.

Remarkably, because of the resilience of the people of Alberta and even the resilience of the human spirit, miraculously that community is on its feet again. I will never forget what I saw with my own eyes and how the community moved so impressively to put things right.

[Job Losses in the Energy Sector, February 8th, 2017]

Mr. Chair, we all know that major energy infrastructure decisions are controversial. They are controversial among regions and they are also controversial within political parties. The member will know that I quoted at some length Premier Notley of Alberta, who applauded the decisions of the Government of Canada.

I also know that I have had many meetings with union leaders and members of trade unions who understand that these energy infrastructure projects will create good jobs for their families. I have to say I am a little surprised that the member, who would have excellent connections with both the Government of Alberta and union leaders and members, does not understand that there is another side to the story he is telling.

[Job Losses in the Energy Sector, February 8th, 2017]

I did not say—

[Job Losses in the Energy Sector, February 8th, 2017]

Mr. Chair, we are not trying to distort the reality nor diminish the suffering being felt by Alberta families. Alberta families are not alone in their suffering because of this downturn in commodity prices in the energy sector. We know there are families in Saskatchewan, Newfoundland and Labrador, and elsewhere that are dependent on a vibrant economy in Alberta.

I do not think it is fair for the member to say that the Government of Canada either does not care or has done nothing. That does not give any appreciation at all to all of the measures that I outlined in my speech. It comes, not because anyone is demanding that the government do it, but because we believe it is the right thing to do. When a region of Canada suffers, the rest of the country responds. Canadians have a responsibility to look after each other.

The record is clear on what the we have been able to accomplish. The long-term strategy and the transformation of the energy sector is also a part of this government's policy. We are proud of those 30,000 jobs that will be created by these approvals.

[Job Losses in the Energy Sector, February 8th, 2017]

Mr. Chair, I want to start by thanking the member for Chilliwack—Hope for accompanying us to Mexico City last week. There was a delegation of 37 business leaders and four indigenous leaders, so that we could engage in a constructive dialogue with our Mexican friends on energy and on mine development. His participation was productive, and I welcomed it.

The member knows that we are all adjusting to the new administration, and a very productive use of our time is to expand our network, to deepen our contacts, to talk to congressional leaders, to those who will be serving. We all know that Governor Perry has not yet been confirmed as the American cabinet secretary, but as soon as he is, we will be requesting a meeting, and I am confident that will happen at an early moment.

We believe that the key to a relationship with the future administration is to find those areas of convergence where the American interest and the Canadian interest can be aligned. We think that energy is one place where that is possible and even likely. We were encouraged by one of the first executive orders of President Trump, giving his approval of the Keystone XL project, which we have supported all along. We will watch that very carefully.

We also understand that competitiveness is very important. We know that there are literally trillions of dollars of international investment looking for a place to land on renewable sources of energy, on clean technology. We want to position Canada to be a leader to attract that investment, because the objective is to use the energy we have today to finance the transition to tomorrow.

[Job Losses in the Energy Sector, February 8th, 2017]

Mr. Chair, I thank the hon. member for Portage—Lisgar for initiating this important debate. No member from any party can be indifferent to the effect that lower oil prices have had on Albertans.

As a government, we know the challenges workers and their families in the energy sector have faced over the last three years. While there are some encouraging signs, such as higher commodity prices, increasing investment in the energy industry, and President Trump's endorsement of the Keystone pipeline, there are more steps to be taken before these developments translate into more jobs.

This does not just affect Alberta. As the hon. member knows, the slowdown in the oil patch has rippled across the country, affecting workers from British Columbia to Newfoundland and Labrador. When Alberta's energy industry is hurting, the entire country feels the pain. Our government understands how vital the Alberta energy industry is not only to the people and the economy of Alberta but to all of Canada. That is why we have focused on creating the conditions that will lead to good, middle-class energy jobs. One of our government's key responsibilities is to help get Canadian resources to market. With our major customer, the United States, producing more and more of its own energy, it is essential that Canada build the infrastructure to get our oil and gas to new global markets. We are acting, doing more in one year than the previous government did in a decade: protecting our oceans, pricing carbon pollution, and putting middle-class Canadians back to work by approving the pipelines we need to reach those new markets. That is the best way to ensure jobs and opportunities in the energy industry right across the country.

When we came to office just over a year ago, we were faced with a loss of confidence among Canadians. They had lost trust in the way major energy projects were assessed, and they knew that engagement with indigenous communities was not just a platitude but a must-do if we were to approve new major projects. More broadly, Canadians expect their government to take the environment seriously and regain our reputation as a conscientious player on the world stage.

In our first budget, we invested in the people of Alberta and their future by providing millions of dollars to build infrastructure, promote clean energy, and reduce greenhouse gas emissions in the oil and gas sector. Our government also brought certainty to projects already under review through an interim strategy that included more extensive public consultations, meaningful indigenous engagement, and broader environmental criteria. The next step is to modernize the National Energy Board to ensure that Canada's regulator serves the needs of Canadians into the future.

All of these initiatives, rebuilding trust, re-engaging with indigenous Canadians, and revamping the regulatory process, are being carried out with a single goal in mind: to create the conditions that will allow us to get Canada's resources to market sustainably and ensure good long-term jobs in the energy sector.

In the midst of these efforts, global commodity prices collapsed and we took immediate steps to help those most affected in the west, the north, and in Newfoundland and Labrador. Our government extended employment insurance benefits by five weeks, up to a maximum of 50 weeks for those who were eligible. Next we provided an additional 20 weeks of EI regular benefits to long-tenured workers in key areas, up to a maximum of 70 weeks. While focusing on the hardest-hit regions was essential, it was not enough, so we improved the EI program across Canada, extending the maximum duration of EI work-sharing agreements from 38 weeks to 76 weeks to help employers retain skilled employees and avoid the costs of recruiting and training new employees once business returns to normal levels.

Our first budget was widely praised for being progressive and helping Canadians. That is the record of this government. That is how a caring government responds when its people are hit by unforseen events, like a drop in world oil prices.

Even as we provided immediate support, we also kept our eye on the bigger picture: the need to get job-creating infrastructure built. In just over a year since forming government we have been able to do what the previous government could not get done in a decade. We have approved the infrastructure projects that will create tens of thousands of jobs for Canadians, many of them in Alberta: the Arnaud apatite mine, 910 jobs; the Woodfibre LNG project, 700 jobs; the Black Point granite quarry project, 100 jobs; the Pacific NorthWest LNG project, 4,800 jobs; the NOVA Gas pipeline, 3,000 jobs; the Line 3 pipeline replacement, 7,000 jobs; and the Trans Mountain pipeline expansion, 15,440 jobs.

These projects mean 30,000 jobs and more than $26 billion will be injected into Canada's economy. That is delivering for Canadians in the energy sector. That is laying the foundation for good, long-term, sustainable jobs, jobs that one can raise a family on and plan a future around. After a decade of idle talk and empty promises, our government is making real progress.

As Premier Notley put it so well on the day we announced the approval of two major pipeline projects:

It has been a long, dark night for the people of Alberta.... Today, we are finally seeing some morning light....We're getting a chance to sell to China and other new markets at better prices. We're getting a chance to reduce our dependence on one market, and therefore to be more economically independent. And we're getting a chance to pick ourselves up and move forward again.

The approach of our government from day one has been forward looking to not only the jobs and opportunities of tomorrow, but also to ensuring support for workers affected today by events beyond their control. That is why we provided enhanced EI benefits when and where they were needed most. It is why we have worked so hard to restore confidence in how major resource projects are assessed, including re-establishing a nation-to-nation relationship with indigenous communities. It is why we are investing in clean technologies, the job generators of today and tomorrow.

Workers in the energy sector in Alberta and across Canada know that they have a champion in Ottawa.

It is an ally that will not run when the tough times hit, a champion that will work to ensure a future of jobs and opportunities for all Canadians from coast to coast for generations to come.

[Regional Economic Development, February 8th, 2017]

Mr. Speaker, we are pleased to have a strategy that incorporates all regions of the country. We will have an opportunity later on in the House to debate energy workers in Alberta and across the country. It will be an opportunity for all of us to talk about what we have done and what we can do.

The government will remind all Canadians that the Nova gas pipeline will create 3,000 jobs. The Line 3 replacement will create 7,000 jobs. The Trans Mountain pipeline expansion will create 15,400 jobs. That is laying the foundation for long-term, sustainable jobs, good jobs, jobs people can raise—

[Questions on the Order Paper, January 30th, 2017]

Mr. Speaker, the National Energy Board recommendation report for the Trans Mountain expansion project does not require Kinder Morgan to purchase pipe materials, including steel, from Canadian suppliers. Country of origin is not a factor in material requirements for this project. Rather, materials must comply with the specifications and quality standards detailed in Condition 9 of the NEB’s report and the Canadian Standards Association’s oil and gas pipeline systems standards, CSA Z662, clause 5. These conditions and standards are designed to keep Canadians and their environment safe.

The proponent, Trans Mountain ULC., has stated its intent to source approximately 230,000 metric tonnes of line pipe material from a domestic supplier, which includes the use of Canadian-made steel. According to the proponent, Trans Mountain’s sourcing strategy is to maximize the amount of locally sourced pipe material, within the production capability and capacity of the domestic supplier.

[Questions on the Order Paper, January 30th, 2017]

Mr. Speaker, in its 2014 report, the joint review panel made a non-binding recommendation to the Governor in Council on the project application. The report documents the extensive technical, scientific, traditional, and specialized information and knowledge the panel received from a variety of sources in relation to the project. In its November 25, 2016 decision, Order in Council 2016-1047, the Governor in Council directed the National Energy Board to dismiss the Northern Gateway Pipelines Limited Partnership’s application for a certificate. The National Energy Board acted on the Governor in Council’s direction on December 6, 2016, by dismissing the project application.

The Governor in Council’s decision on the project application relied on the joint review panel’s 2014 report including the scientific evidence, analysis, and data contained in that report. The report contained scientific and other evidence documenting the unique and irreplaceable nature of the ecosystem of the Great Bear Rainforest, including the Douglas Channel. The sensitivity of this ecosystem was central to the Governor in Council’s conclusion that the waters of the Douglas Channel must be protected from any spills of crude oil from tankers and was also, therefore, central to its direction to the National Energy Board to dismiss the project application. As the joint review panel did an adequate job of documenting the scientific evidence, it was unnecessary to consider additional scientific sources beyond those documented in the panel’s report.

[Questions on the Order Paper, January 30th, 2017]

Mr. Speaker, with regard to (a), the cost recovery framework for Muskrat Falls consists of a series of revenue agreements available on the Muskrat Falls website at https://muskratfalls.nalcorenergy.com/newsroom/reports/, in English only, in provincial legislation, and in orders in council. This cost recovery framework legally requires that all project costs be recovered from electricity consumers in Newfoundland and Labrador, regardless of the final costs.

With regard to (b), the prices paid to the project entities will be set at a value that ensures full cost recovery plus a return on equity. These prices will be determined once the projects are complete and the final construction cost is known.

With regard to (c), the Muskrat Falls project’s viability is not dependent on electricity exports; all project costs will be covered by electricity consumers in Newfoundland and Labrador. As such, no market research was required to determine whether export prices would enable achievement of a break-even point.

For these reasons, (d) is not applicable.