Mr. Speaker, I am pleased to speak to Motion No. 298 today which states that the government should provide initiatives to deliver natural gas to unserviced regions.
I believe that, although governments can participate in the delivery of natural gas or any other product, they cannot and should not try to avoid basic and natural market forces. If a government tries to ignore the marketplace it is asking for trouble.
In my community of 30,000 people in Campbell River, one of the justifications for bringing in natural gas over a significant geographical hurdle was the considerable demand for the commodity. This took much more than the normal business activity and the normal residential sector would ordinarily demand.
There had been a proposal to build a natural gas/wood waste electrical cogeneration plant. In addition to the usual residential and commercial demands, this would be a potential major consumer which would have a greater demand than the rest of the demand combined.
In our case the provincial government played a pivotal and essential role in ensuring that these two things happened in tandem. Without its involvement and concurrence our community would still be without natural gas service. Essentially it had to guarantee, in one form or another, that the cogeneration plant would receive approval and would be economic. That was enough of an incentive to ensure that natural gas would come to the community. That is what we could call a win-win situation for all parties, and there is always room for a win-win situation.
There is also room for governments to regulate rates so that averaging would make services and commodities more affordable and increase total demand by making them more attractive for more consumers. The provinces and the territories have a very important regulatory role to play in these activities.
All of these things are already happening where they are needed, where demand is sufficient and where they are not a burden on the taxpayer. They are market sensitive, regionally sensitive and they properly allocate our energy resources.
There is opportunity in the north and other remote areas for natural gas exploration incentives that would place the source close to unserviced communities. This would create a whole new affordability index in terms of servicing remote communities. In these situations there is opportunity for provincial or territorial governments to put incentives in place to try to expand the servicing area of natural gas distribution.
The Northwest Territories, as an example, has done that very thing. The Inuvik natural gas project came about because in 1998 the Inuvialuit Petroleum Corporation, AltaGas Services Inc. and Enbridge Inc. formed a partnership to bring natural gas from the Ikhil field to supply the energy needs of the town of Inuvik.
The territorial Department of Resources, Wildlife and Economic Development funded a portion of the initial research for the project. The department provided funding to assist residential customers to convert to natural gas heating, with Inuvik Gas Ltd. providing matching grants.
This is all fairly recent. Last September the hon. Stephen Kakfwi stated in the legislative assembly of the Northwest Territories:
This program will result in the reduction of residential energy costs in Inuvik. It also allows the Northwest Territories to demonstrate its commitment to the reduction of greenhouse gas emissions.
There are some pretty good things to say on this subject.
However, this is an entirely different matter from what this private member's motion contemplates today. This motion contemplates federal spending when the jurisdiction is almost exclusively provincial or territorial. In other words, the motion contemplates a massive intrusion of federal government into provincial and territorial affairs.
Canada is a major global natural gas producer and a major exporter to the United States. Canadian companies are at the forefront in developing natural gas alternatives to traditional engine fuels. There are many people aware of this, as there has been much attention paid to the stock market and publicly traded companies recently.
Westport Innovations Inc. is a Vancouver based company which is traded on the TSE. There is Calgary based Alternative Fuel Systems Inc., which is also publicly traded. These are two companies with which I am somewhat familiar, but I am sure there are likely to be other Canadian based companies doing similar things. These companies are working hard to use natural gas as a primary fuel, with good results, all of which has a positive impact on greenhouse gas emissions.
Westport Innovations utilized technology developed at the University of British Columbia. It recently bought the rights. This is a good example of a public-private partnership doing research and development which has worked out very well for all parties.
Environment Canada has publicly recognized the efforts of Calgary based Alternative Fuel Systems. It has developed products to convert diesel and gasoline engines to operate on cleaner burning natural gas as well. AFS has received contracts to sell its products and technology to Mexico and India, enabling fleets of vehicles in those countries to be converted to run on natural gas. This is all very good.
The major environmental benefit, of course, is that this reduces vehicular pollutants. The economic benefits come from the reduced fuel cost, as well as reduced maintenance costs and increased engine life.
Natural gas is an excellent fuel source and Canada is blessed with large reserves. It is very important that we do it right in terms of how we develop, distribute, market and creatively manage this legacy. I cannot support this private member's motion, which is without vision and does not respect federal, provincial and territorial—