John Duncan

[Aboriginal Affairs, February 26th, 2009]

Mr. Speaker, we understand that the member opposite has an interpretation that is far different from reality. We also understand the concerns of aboriginal children. We have expanded school construction and other spending because we do understand.

Since 2000, the department has invested over $5 million in Attawapiskat for expansion of the high school and temporary classrooms, and approximately $1 million a year for operations and upkeep of the schools.

We are working with the community. Health Canada inspections in June demonstrated there are no health and safety concerns.

[Aboriginal Affairs, February 26th, 2009]

Mr. Speaker, I am very surprised that the member opposite would ask that inflammatory question.

We had a committee meeting this morning. We talked about this very subject. It is very clear in the response from the department that the priorities are set by the department. It does not consider political situations. Whether they are in opposition ridings or Conservative ridings makes no difference at all. However, the fact is that we do represent most of those areas.

[Business of Supply, February 26th, 2009]

Mr. Speaker, I absolutely do believe in these kinds of stimulus packages that deal with shovel-ready infrastructure.

For example, in order for the money in budget 2009 to go to the 10 new schools, the qualification is that they must be ready-to-go schools. This will help clear up some of the backlog and achieve the stimulus goal, while at the same time addressing a real need. That is obviously complementary to the question.

[Business of Supply, February 26th, 2009]

Mr. Speaker, I am unaware of the specifics of the question from the member opposite, but I will say that we have been delivering. We have been auditing. We have announced some real results and reductions in unsafe water systems. We have been delivering on other infrastructure needs in first nations communities.

Perhaps the member opposite does not want to hear it. He can talk quite loudly. However, I will say that we will take his question under advisement. If I can let him know anything specific, I will, but I can tell him that we are making announcements routinely. There will be a lot of school announcements upcoming. There will be water system announcements upcoming. As recently as today, the minister is in New Brunswick announcing a new school.

[Business of Supply, February 26th, 2009]

Mr. Speaker, I know that when we formed the government three years ago, we inherited a priority list of water systems that needed to be fixed. That list was something like 180 communities long. We have reduced the list to under 60 communities. We have an action plan to further reduce it over the next fiscal year. That is major progress. We are getting it done. Governments before us did not get it done.

In terms of putting those systems in place, there is also a training component, and the community is involved. We are creating a sustainable situation so that these systems do not fall into disrepair.

[Business of Supply, February 26th, 2009]

Mr. Speaker, I am very pleased to have the opportunity today to speak to some of the recent first nations infrastructure investments our government has taken through budget 2009, Canada's economic action plan.

Of course the action plan includes spending for other aboriginal groups in the north and elsewhere, but I only have ten minutes. I will be splitting my time with the member for Portage—Lisgar, so I will restrict my comments to first nations.

It is no secret that improved infrastructure lies at the core of healthy and productive first nation communities. Ultimately, improvements to infrastructure help stimulate economic growth and improve the quality of life on-reserve. The government is committed to doing just that, as it has shown over the last three years.

With Canada's economic action plan, the government provides $1.4 billion over two years for specific initiatives aimed at improving the well-being and prosperity of aboriginal people in Canada. These new investments include $515 million to accelerate ready-to-go first nations infrastructure projects, focusing on schools, water, and critical community services such as health clinics, nurses' residences and policing infrastructure, to name just a few.

These investments include $200 million over the next two years for building ten new schools on reserves and three major school renovations. I might add that the minister announced the new school in Burnt Church, New Brunswick, just today. Our government recognizes that first nations children need the best possible learning facilities to help them succeed in their studies and to start building a solid foundation for realizing their dreams.

Another $165 million will be invested in initiatives to accelerate water and waste water infrastructure projects. We all know that access to clean, safe and reliable drinking water is an essential requirement for the health and well-being of first nations communities and is vital to improving the quality of life for first nations on-reserve.

Our government recognizes it has specific responsibilities in regard to aboriginal issues such as housing, and we are determined to fulfill them. The hard truth is that too many residents of first nations communities live in substandard housing.

The causes are complex and varied. Many communities and individuals cannot access enough capital to build and renovate homes, while other communities lack the capacity to manage housing stock effectively. That is why we also announced $400 million over the next two years to support on-reserve housing. It is dedicated to new housing projects, remediation of existing housing stock and complementary housing activities.

Last week in British Columbia, the Minister of Indian Affairs and Northern Development announced that up to $50 million will be invested in on-reserve housing within that province.

These investments are in addition to the $1 billion annually invested in first nations community infrastructure, which includes housing, water and waste water systems, education facilities, and other infrastructure such as roads and bridges.

More specifically, planned expenditures for 2008-09 include $236 million to support a wide range of school infrastructure projects, including operation and maintenance, study and design, renovations, minor repairs and new construction; $368 million to address water issues in first nations communities, including upgrading water and waste water facilities, on-reserve maintenance in the operation of the facilities, training, and moving forward with initiatives under a first nations water and waste water action plan; and $276 million for on-reserve housing needs. A portion of this annual investment provides an average of 2,300 new housing units and 3,300 renovations in first nations communities across the country. Finally, there is $442 million to support ongoing projects such as roads and bridges, electrification, and infrastructure in first nations communities across the country.

All these investments to support infrastructure in first nations communities focus on mitigating health and safety risks, maximizing the lifespan of a physical asset, ensuring infrastructure meets applicable codes and standards, and ensuring community infrastructure is managed in a cost-effective and efficient manner.

Our government is taking action to create change through strong partnerships and constructive leadership. We are helping to improve learning environments for first nations students, increasing access to safe drinking water and improving the quality of life on reserve with new housing projects. We are investing in projects that will provide lasting, sustainable benefits for first nations communities and we are doing all of this in partnership with first nations, other levels of government and ultimately all Canadians.

We believe that for real change, there is no other way to operate. We must do things and act together. No person, group, government or single level of government has all the answers. The answer to our shared challenges does not rest on having one level of government take action. That only sustains the status quo. Instead, we reach our goals through genuine partnership, and the potential life-altering results of this approach are evident all around us. Our partnerships are working.

[Indian Oil and Gas Act, February 13th, 2009]

Mr. Speaker, I listened closely to the speech by the member for Argenteuil—Papineau—Mirabel and was most grateful to hear his comments.

There was some discussion in your speech about the environment. I know that the bill deals with the environmental measures in a significant way. One of the ways is to introduce authorities related to carbon capture and sequestration, so that first nations can continue to move in a way that would reduce their environmental footprint. It would also increase the ability of the Government of Canada to incorporate provincial laws by reference. It would strengthen and clarify all of that. I wonder if the member has taken note of that. Are you supportive of those two measures?

[Indian Oil and Gas Act, February 13th, 2009]

Mr. Speaker, I would like to add a comment to the response from the member for Labrador.

The NDP representative on committee has said that the consultation on the bill would serve as a potential model for other consultative mechanisms. I think it is quite clear that we have seen a very good example here, and continuing support. I expect this is the kind of testimony we will receive at committee.

The member for Labrador may wish to make a comment as well to further that.

[Indian Oil and Gas Act, February 13th, 2009]

Mr. Speaker, the question came from the chair of the Standing Committee on Aboriginal Affairs and Northern Development, and he is doing an excellent job.

The fiduciary obligation of the federal government is obviously paramount in any legislative changes that we undertake in Parliament. I mentioned in my speech the fact that this act has been subject to major consideration since 1999. Indian Oil and Gas Canada made presentations to every one of the Indian Resource Council's annual meetings. It advocates for the first nations involved in oil and gas productions.

Formal consultations started in March 2002. We had a stakeholder involvement package sent out at that time to 120 first nations, to 200 energy companies with active leases, to the four oil and gas provinces involved, to the Canadian Association of Petroleum Producers and to the Canadian Association of Importers and Exporters. We had Indian Oil and Gas Canada holding one-on-one sessions with 85% of all the oil- and gas-producing first nations, and it also met with tribal councils.

The first nations position generally has been very supportive of this legislation. The modernization and harmonization themes have been very well accepted, with most comments supporting the strengthening of Indian Oil and Gas Canada.

This legislation is broadly supported by all stakeholders, and I believe it has broad support from all parties in the House of Commons. I look forward to swift passage at second reading and moving it to committee.

[Indian Oil and Gas Act, February 13th, 2009]

Mr. Speaker, I am proud to have the pleasure of introducing Bill C-5, An Act to amend the Indian Oil and Gas Act.

In the recent Speech from the Throne, the government committed to take steps to ensure that aboriginal Canadians fully share in economic development opportunities and this legislation is a concrete example of that commitment.

The oil and gas sector provides a real source of promising economic development opportunities for first nations. Few other countries in the world can lay claim to the secure, abundant and diverse energy resources we enjoy in Canada. This energy wealth has fueled tremendous economic growth in many regions of the country.

The world's need for Canada's oil and gas holds significant promise for development for many years to come.

Since the government was formed, we have made clear our determination to ensure first nations share equally in our country's prosperity and that they are able to build stronger and self-reliant communities that can manage their own affairs.

Bill C-5 would help to advance these goals by enhancing Canada's capacity to assist first nations in managing their own affairs. The management and administration of oil and gas resources is governed on reserve lands by the Indian Oil and Gas Act and it is administered by Indian Oil and Gas Canada, a special operating agency within Indian and Northern Affairs Canada.

The mandate of Indian Oil and Gas Canada is to assist in fulfilling the Crown's fiduciary and statutory obligations related to the management of oil and gas resources on reserve lands and to ensure first nations initiatives for greater control over the management of their resources. In practical terms, this means that the agency issues and administers agreements on first nations lands, monitors oil and gas production and collects royalties for the benefit of first nations.

I will now speak to why the existing act needs to be amended.

The legislation under which Indian Oil and Gas Canada operates has not kept up with the times. The act first came into force back in 1974 when the industry was in the midst of a global energy crisis. Since then, most provinces have overhauled their laws and updated their regulations numerous times. For example, Alberta's legislation, the Alberta mines and minerals act, which governs resource development, has been amended more than 15 times since the 1970s. In contrast, the Indian Oil and Gas Act has remained unchanged for the past 34 years. We need to change that.

Furthermore, oil and gas exploration and exploitation on reserve lands and the revenue that these activities generate are significant. Over $1 billion in revenues from on reserve oil and gas activity have been collected on behalf of about 60 first nations over the past five years alone. This revenue is credited to those communities in its entirety. The industry is continuing to invest millions of dollars in exploration and exploitation activities on first nations reserve lands, more than $300 million in the past five years for drilling alone.

I realize that these amendments are very technical in nature but they are important. The broad changes brought forth can be grouped under three themes: first, amendments that would bring clarity to the oil and gas regulatory process; second, amendments that would ensure and strengthen accountability of Indian Oil and Gas Canada; and finally, amendments that would enhance the protection of first nations environmental, cultural and natural resources.

In terms of bringing clarity, once adopted, the amendments would ensure that the role and powers of the minister and reference to the courts are clear and provide for broader regulation-making authority. They will, equally important, allow federal regulations governing oil and gas projects to be harmonized with provincial oil and gas regulatory regimes. Co-operation with provincial authorities is key.

I want to make it clear that Bill C-5 would not increase the jurisdiction of provinces. It would allow for federal regulations to be made that are consistent with provincial laws, which is important to create clarity and certainty for both first nations and industry.

Enforcement powers would be clarified, as well as modernized. The current act limits fines to $5,000. This would be increased to $100,000 per day and sometimes more could be imposed by the courts.

In areas of high risk, such as the seizure of records and equipment, this would all be governed by relevant Criminal Code provisions and overseen by provincial courts. These amendments would ensure that the government, through Indian Oil and Gas Canada, can provide certainty and consistency for first nations, for industry and for provincial stakeholders.

The amendments that strengthen accountability to act on behalf of first nations by Indian Oil and Gas Canada are examples such as clear audit powers for Indian Oil and Gas Canada and accurate reporting and paying of royalties due to first nations when companies operate on reserve lands.

As another example, rules would be put in place to address complex relationships, not only between unrelated corporations but also between an existing corporation and its subsidiaries.

Bill C-5 would authorize new regulations to prevent companies from using non-arm's length transactions to unjustifiably reduce the royalty which would otherwise be payable to first nations. A company would not be able to sell oil or gas at a reduced price to a company it already owns in order to pay less royalty.

Furthermore, the limitation period to commence legal proceedings would be extended to 10 years and there is no limitation period in cases of fraud or misrepresentation.

The final set of amendments deal with enhancing protection for first nations' environment, cultural and natural resources. These amendments would balance the development of oil and gas resources with environmental protection. This is of interest to all Canadians. The current act has limited remedies in the case of non-compliance. Under the amendments, provincial environmental laws can be incorporated by reference into the federal regulations that apply to first nations reserve lands.

It is very important, of course, that anyone doing work on a reserve respect first nations' cultural and spiritual values and their special relationship to the land. Bill C-5 would authorize the minister to suspend operations of a company if areas involving these special values are at risk.

There are some further concerns from first nations. They wish to have a remedy when companies trespass on their property. With this legislation, there would be specific offences so that Indian Oil and Gas Canada would have more options to deal with these breaches.

A key policy objective for the government is ensuring our legislative framework supports first nations. The current Indian Oil and Gas Act falls short in this area. Many first nations are concerned that they will not be fully benefiting from the increase of exploration and development taking place around them. The Indian oil and gas industry is equally frustrated.

The reason behind these changes is to provide consistency and certainty to the oil and gas regime. That is one side of the equation. For the affected first nations, the revenue generated by this activity translates into increased economic development, new jobs and improved living standards.

The money being raised is used by first nations for training, housing, water and sewer projects, building stronger communities and a brighter future for their children. This modern suite of tools will better enable first nations to seize opportunities.

The amendments, as I mentioned, are very technical in nature. The first nations have been asking for these changes, and Canada started the process to modernize the act in 1999.

The Indian Resource Council is a national aboriginal organization advocating on behalf of 130 first nations with oil and gas production or the potential for production. We had extensive consultations with first nations and with oil and gas interests. First nations have validated the principles embodied in the legislation and have made suggestions for improvements.

Most noteworthy was the need to amend and modernize the legislation, and this need was endorsed by the Indian Resource Council at annual meetings in 2006 and 2007. Thanks to this close working relationship, oil- and gas-producing first nations have had the opportunity to influence the development of the amendments and will be called upon again to participate in the development of the regulations that will flow.

This support is reassuring, but the council went even further in order to make sure all communities with oil and gas interests had the opportunity to become fully aware. It held a symposium earlier this year in Alberta. Over 100 members representing more than 60 first nations attended. Their involvement and support were encouraging, and we are on the right track. We will continue to work in partnership, and this will lead to greater first nation control and management of petroleum resources on their lands.

The key to unleashing this potential lies in modernizing the legislative framework. Strong regulatory regimes are essential for both economic and social development. That is why we are bringing the Indian Oil and Gas Act up to 21st century standards.