Mr. Speaker, it is an honour to represent beautiful Langley, British Columbia, and to have the opportunity to speak briefly to the many strengths of Canada's new economic action plan 2014.
I would like to begin my comments by reflecting on what I have heard from the NDP. I was shocked, maybe I should not have been, that it does not want us to balance our budget. It wants us to continue all the different programs that have reached the end of their lives. They want to continue deficit spending. That is not what Canadians want.
We will continue to work hard creating jobs and an environment where the economy can grow and we can balance the priorities of Canadians.
I would like to highlight the important contribution that our natural resources, forestry, and agriculture make to the Canadian economy, which is a pillar of our government's economic action plan. These sectors create jobs and prosperity, particularly in rural communities across Canada.
For example, consider Canada's natural resources sector. This sector represents 18% of the economy and over half of our exports. It supports 1.8 million jobs directly and indirectly. That is where a large percentage of the money for programs is coming from. Furthermore, it generates over $30 billion annually in revenues to governments, which is equal to approximately half of all spending in hospitals in Canada in 2013.
There are hundreds of natural resources projects under way or planned in Canada over the next 10 years, representing a total potential investment of $650 billion. That is huge.
A significant element of this economic boost is represented by Canada's unique oil sands industry. This sector is an asset that will increasingly contribute to the prosperity of all Canadians, including the programs that the opposition NDP and Liberal parties want but do not want to pay for.
The oil sands is among the world's largest technological projects, contributing about 275,000 jobs across Canada and $48 billion in GDP, numbers that could grow to an average of 630,000 jobs and a contribution of $113 billion in GDP per year by 2035. That is huge. This is due to an increasing global demand for resources, particularly from the emerging economies.
Increasing global demand for resources like our oil, particularly from emerging economies, will create new economic and job opportunities from which all Canadians will benefit. However, Canadians will only reap the benefits that come from our natural resources once investments are made by the private sector to bring these much-needed resources to market.
Approval processes can be long and unpredictable. Delays and red tape often plague projects that pose few environmental risks. That is why our government has worked hard since 2006 to streamline and improve the regulatory process while safeguarding and protecting the environment.
A modern regulatory system should support progress on economically viable major economic projects and should sustain Canada's reputation as an attractive place to invest. That is why, as part of Canada's economic action plan, we are modernizing the federal regulatory system by establishing clear timelines, reducing duplication and regulatory burdens, and focusing resources on large projects where the potential environmental impacts are the greatest. That makes sense.
For example, we are implementing system-wide improvements to achieve the goal of one project, one review within clearly defined time periods.
In addition, we have invested $54 million over two years to support more effective project approvals through the major projects management office initiative. In our most recent budget, we announced $28 million over two years for the National Energy Board for comprehensive and timely reviews of applications and to support the participant funding program. We have also eliminated tariffs on mobile offshore drilling units used in offshore oil and gas exploration and development.
We also announced an extension of the mineral exploration tax credit to March 31, 2015. This credit helps the junior exploration companies raise capital by providing an incentive to individuals who invest in flow-through shares issued to finance mineral exploration. The credit is in addition to the regular deduction provided for the exploration expenses flowed through from the issuing company. Since 2006, this measure has helped junior mining companies raise over $5 billion for exploration. Promoting the exploration of Canada's rich mineral resources by junior mining companies offers important benefits in terms of job creation and economic development across Canada, including in rural and northern communities.
Our government has also amended the Coasting Trade Act to improve access to modern, reliable seismic data for offshore resource development. Since 2004, mobile offshore drilling units used in oil and gas exploration and development have been permitted to be temporarily imported into Canada on a duty-free basis under the Mobile Offshore Drilling Limits Remission Order. This remission order was extended in 2009 for another five years and was set to expire in May 2014.
Economic action plan 2014 proposes to eliminate the 20% most-favoured-nation rate of duty on imported mobile offshore drilling units. This measure would permanently eliminate the disincentive for exploration leading to oil and gas discoveries in offshore Atlantic and Arctic regions and would create a level playing field with other major oil and gas countries competing for offshore petroleum industry investment.
Offshore oil and gas developments create jobs and support economic growth in Canadian communities. Continued exploration activity is required to bring new projects to communities and to sustain these economic benefits over a long term. However, it depends on modern, reliable seismic technology and data. That is why amending the act would ensure that companies have the information they need to identify potential resource development opportunities.
In addition to supporting responsible resource development, we must not forget the important contribution our forestry sector makes to our country. Canada's forestry sector directly employs over 200,000 workers in all regions of the country, including in 200 communities that rely on the sector for at least 50% of their economic base. Our government has helped keep this vital industry strong. The investments in the forestry industry transformation program, introduced in budget 2010, has been successful in enabling Canadian forestry companies to lead the world in demonstrating the viability of innovative technologies that improve efficiencies, reduce environmental impacts, and create high-value products for Canada's world-class forestry resources. Through programs like the IFIT, we have seen an over 1,000% increase in exports to China, which has helped the sector weather the economic downturn in the U.S. Economic action plan 2014 would build on this success by providing $90.1 million over four years, starting in 2014-15, to renew the IFIT program. Our government will continue to work with the forestry sector as it invests in innovative new products and pursues new markets for Canadian forest products.
Finally, the last topic I would like to highlight is our support for the agriculture and agri-food sector. The agricultural and agri-food sector in Canada accounts for over $100 billion in economic activity and provides employment for over 2.1 million Canadians.
Langley is an environmentally friendly community, but agriculture is also very important. I invite all members during the upcoming summer to spend some time out in beautiful Langley, British Columbia. Also, I encourage all members in this House to support Canada's economic plan. It creates jobs, it creates prosperity, and it is the right thing to do.