Mr. Speaker, it is quite a pleasure as a member of natural resources committee to speak on Bill C-15, the Donkin Coal Block Development Opportunity Act.
Quite a number of folks have spoken today. Quite a number of my Atlantic colleagues from both sides have spoken on the bill. As we have stated before, basically what it does is facilitate an economic opportunity for Cape Breton Island and the province of Nova Scotia, but I am also going to talk a little later about the spinoff benefit for New Brunswick as well. I think this is a big benefit for Atlantic Canada, especially when it comes to coal.
The bill creates a legal framework for the mining operation at the Donkin coal block. The economic opportunity is to be able to bring that coal to the surface from an area some three kilometres offshore Cape Breton and transport the coal to market. The operation, as people have said, will produce 275 direct jobs, potentially as many as 700 indirect jobs, and hundreds of millions of dollars for the provincial economy in terms of salaries, equipment and a range of goods and services.
The opportunity came about on December 13, 2004, when the energy minister of Nova Scotia, Cecil Clarke, sent out a press release. Some of the benefits of this opportunity, stated a news story, would be:
Winning bidders will have to agree to hire local workers and buy goods from Nova Scotia businesses. After an operator is chosen, it will still take months or even years to get the mine running.
That last statement is absolutely true in regard to the complexity of this.
My colleague, the member for Cape Breton—Canso, talked earlier today about the price of coal being at almost record highs of almost $100 a tonne. That is a tremendous development and means a tremendous amount of opportunity for employment in the area.
Since that time, Nova Scotia announced that the Xstrata Donkin Coal Development Alliance was the successful bidder. The company immediately launched a multi-million dollar study to evaluate the potential for bringing the mine into production. The study is currently under way, but the major key decision point on this is February, and if all goes well a positive decision on mine development will be made in August.
Approximately 25 people are currently working at the Donkin mine site. Xstrata has drained the water from the two tunnels dug to the coal face in the mid-1980s by the Cape Breton Development Corporation and the company is now preparing to drill into the coal seam to obtain further information on the resource.
From a resource standpoint, everything appears favourable. However, for Xstrata to come to a positive decision, there is another issue that needs to be clarified, and that is Bill C-15.
As previously mentioned, the Donkin coal block is located offshore Cape Breton Island. Both the Governments of Canada and Nova Scotia claim ownership of the resource. Accordingly, they both believe they have an obligation to regulate the resource. This creates quite a level of uncertainty for Xstrata and puts the company in a position where it is faced with two regulators. Facing even one regulator can be a daunting task, but facing two is incredible.
However, Bill C-15 will remove this uncertainty. It would make clear to Xstrata, its employees and the regulators what laws will apply and who should enforce them. Because regulatory regimes affect costs, Xstrata is looking for regulatory certainty before its February 2008 decision point.
When I think about some of this regulatory uncertainty, I think about our major project office for some of these major projects in the mining area. I think of the potential that this will give some of these projects to get off the ground.
One of those major projects is coming to the fore in New Brunswick in my riding of Tobique—Mactaquac, where a major tungsten mine potentially will be developed in the Stanley-Napadogan area. What a tremendous opportunity this is for an area that has seen its forest industry ravaged. It is a tremendous opportunity. I think this regulatory aspect will certainly help that.
Bill C-15 is the result of a cooperative federal-provincial effort. The objective of the effort is to establish regulatory clarity to facilitate economic development and to do so in a way that is acceptable to both governments. In March of this year, federal and provincial officials agreed on an approach. This was quickly followed by a period of federal-provincial consultations with the public. These sessions resulted in assurances that labour, community and industry groups both understood and supported the proposed regime.
Employee-employer groups, community organizations and the Canada--Nova Scotia Offshore Petroleum Board were all supportive. In June, cabinet approved the drafting of the legislation required to get this done.
The legal framework proposed in Bill C-15 covers resource development and a number of labour matters. The latter includes labour standards, industrial relations and occupational health and safety, which is so important when we look at the development of these underground mines and consider the inherent danger that goes with them.
The bill provides the governor in council with the authority to make regulations incorporating provincial laws into the body of federal law. Bill C-15 also excludes corresponding federal laws from applying to the Donkin coal block.
The laws would be incorporated as amended from time to time by the province and with other adaptations if necessary. For example, we would not incorporate anything that was in conflict with the federal claim to the offshore without first amending it. Any provincial law incorporated federally would be administered and enforced by the provincial official responsible for the relevant provincial law.
By means of this legislation, both levels of government will be able to work together to ensure that occupational health and safety provisions will serve the Donkin miners well. More specifically, Nova Scotia's trade union act, the occupational health and safety act and the labour standards code will be incorporated into federal law through regulation should this bill become law.
Nova Scotia has accepted to amend its occupational health and safety laws to include certain elements that exist under federal law. This is meant to provide the highest level of protection for workers. The labour matters covered by Bill C-15 will not in any way sacrifice accountability, transparency or health and safety for the sake of regulatory efficiency.
Bill C-15 also clarifies the matter of royalties. These will be collected by the province and then remitted to the Government of Canada. An equivalent amount will then be provided for the province. The bill requires that an agreement concerning royalties with the Province of Nova Scotia is subject to the approval of the governor in council. For greater certainty, it has been made clear that the User Fees Act does not apply to any fees contained in provincial laws incorporated by reference.
Why this bill? It is so important and so critical. The coal that will be produced by the Donkin coal block development is a most valuable resource, one that can contribute to the economic well-being of Cape Bretoners and Canadians as a whole.
One only has to look at the people who worked in the mines before the last underground mine was shut down in 2001. Since then, some of these folks have been working out west. What a tremendous opportunity this represents for these people to return, just like a lot of people from Atlantic Canada would.
Not only does this development represent a huge potential benefit to Cape Breton from a mining perspective, it also could represent a new source of coal for the region's electric generating stations. This mine could bring on stream an additional five million tonnes per year of Canadian coal into the market.
While 16% of Canada's supply of electricity is generated from coal sources, that percentage is much higher in Nova Scotia, where 60% of electricity comes from coal and roughly 15% to 20% does in New Brunswick.
Nova Scotia Power has four major coal stations in operation that use approximately 2.5 million tonnes per year, with the two largest stations accounting for the majority of the use. Those are the 600 megawatt Lingan plant and the 300 megawatt Trenton plant. These generating station investments are important to maintaining competitive power rates in Nova Scotia for the over 460,000 customers of the utility.
Having a homegrown source of coal that could ultimately replace imported coal could be a very important cost and security of supply benefit to Nova Scotians, and to Atlantic Canada for that matter. New Brunswick has a 458 megawatt coal plant at Belledune, which is equipped with scrubber technology and could be a beneficiary of this.
It is also important to note that Nova Scotia Power recognizes that generating clean electricity and energy is important. The utility has taken steps to implement cleaner-burning fuel technology, such as the circulating fluidized bed technology at Point Aconi, with announcements of millions of dollars to equip other stations with scrubber technology.
In fact, in the summer of 2006 there was a project undertaken to retrofit the Lingan plant with pollution control technology for NOx, which has announced another potential $170 million project to put in scrubber technologies to lower the sulphur dioxide emissions, a technology very similar to what exists at our Belledune plant in northern New Brunswick.
These developments are in addition to the announcement of over 200 megawatts of wind power generation in the province.
Nova Scotia, Atlantic Canadians and the utilities recognize the importance of generating clean electricity. We recognize the importance of taking positive steps to develop renewable resources, but we also have to face facts. Our generation's profile is based on thermal. It will take a while for us to wean ourselves off that, but we cannot afford to just leave a stranded investment of many billions of dollars out there with no way to collect dollars of revenue against it.
I believe that the measures being taken in Bill C-15 will provide the regulatory certainty required for the Donkin coal block project to proceed. It will provide the highest level of protection for the workers involved. It will permit both levels of government to retain their current positions with respect to ownership and jurisdiction. It will facilitate the economic development of Cape Breton Island and, I would maintain, Nova Scotia, New Brunswick, and all of Atlantic Canada.
I would add that Bill C-15 is also an outstanding example of cooperation between governments to fulfill a common interest in seeing the development of the Donkin block. By introducing this legislation, the Government of Canada has demonstrated its commitment to the economic development of the Cape Breton community and to Nova Scotia as a whole.
Bill C-15 will clarify those occupational health and safety regulations that apply. We know the dangers that are faced by coal miners and we know that safety is paramount to coal miners. We have seen this in situations that have happened over the last year or two in the U.S. and other countries.
By eliminating confusion over who would protect these workers, we hope to protect them better. I know that Nova Scotia has come a long way since Westray as well. What this does for the Donkin mine is ensure that there are local people who know the resource and who will be there to inspect these mines and inspect them in a timely manner.
Nowadays, as previous speakers have suggested, the technology exists that can burn coal cleanly, and we have an opportunity here to employ hundreds of people in Cape Breton Island. We have an experienced workforce in the coal mining industry and a community that wants this development.
The Donkin enterprise will give us another chance to revive the coal mining industry in Cape Breton. What a great story that is for us. We are certainly pleased to see that legislation was passed already in the Nova Scotia legislature. Now it is up to members here in the Parliament of Canada.
We have heard a tremendous number of positive comments about this legislation today. I suspect that this legislation would not have any problems at committee and in the House. I call upon all my colleagues to support Bill C-15, to move this forward and to make Atlantic Canada a positive development opportunity.