Ralph Goodale

[Fuel Prices, September 19th, 2000]

Mr. Speaker, the government has already moved to try to achieve greater transparency with respect to the functioning of the marketplace and the pricing trends within Canada.

We have commissioned an extraordinary study to be conducted by the Conference Board of Canada as a totally independent body that can shed some light on the situation so that all Canadians can know exactly what is happening in that marketplace and why.

[Eldorado Nuclear Limited Reorganization And Divestiture Act, June 14th, 2000]

moved for leave to introduce Bill C-39, an act to amend the Eldorado Nuclear Limited Reorganization and Divestiture Act and the Petro-Canada Public Participation Act.

(Motions deemed adopted, bill read the first time and printed)

[Nuclear Energy, June 8th, 2000]

Mr. Speaker, any sale or lease of any such facility to any other party, either domestic or foreign, would be subject to regulatory approval by the Canadian Nuclear Safety Commission.

Dr. Bishop, the president of the commission, has confirmed that a licence cannot be simply transferred from one person to another; rather a new application must be made. Such an application must follow completely all commission procedures and be open to intervention by interested stakeholders. Indeed the full regulatory regime in Canada would apply to ensure that in every respect the Canadian public interest is protected.

[Cape Breton Development Corporation Divestiture Authorization And Dissolution Act, June 6th, 2000]

moved that Bill C-11, an act to authorize the divestiture of the assets of, and to dissolve, the Cape Breton Development Corporation, to amend the Cape Breton Development Corporation Act and to make consequential amendments to other acts, be read the third time and passed.

Mr. Speaker, I am happy to have the opportunity to open the third reading debate on Bill C-11 pertaining to the Cape Breton Development Corporation.

As this debate has proceeded over the last number of days and indeed over the last number of months, I have been monitoring it very carefully through all of its stages. Much has been said sometimes with a great deal of passion and no doubt that will continue tonight.

I very much respect the deep convictions of all of those who have taken part in this discussion. At the same time I hope that our final debate this evening can steer clear of personal attacks or unwarranted invectives. While we may differ with each other honestly and sincerely on the most appropriate course for public policy to take, I hope we can all agree at least that each member in this House, in the government or in the opposition, is trying to do the very best possible job her or she can in dealing with what everybody agrees is a very difficult problem for the people of Cape Breton.

What I seek is not to criticize or vilify any other member because he or she happens to disagree with my approach. Instead I am focused and the government is focused on meaningful solutions that are as good and as effective as they can be in the reality of the circumstances that we all have to face.

As I have said before the Standing Committee on Natural Resources and Government Operations and also in this House, the key elements of the government's approach to Devco and the circumstances in Cape Breton are really threefold. First is the successful sale of Devco's assets to be able to maintain a viable coal operation and the associated jobs on a sound footing in the private sector. Second is a fair and reasonable human resources adjustment package to assist those who cannot remain in the coal sector. Third is new economic development initiatives which are community based and contribute new dimensions to the Cape Breton economy and way of life.

On that latter point, in January 1999 the government announced as part of its overall package of proposals with respect to Devco a $68 million fund to invest in long term sustainable growth in Cape Breton's future. The province of Nova Scotia later added another $12 million to that amount to make a total of $80 million available for these future investments to build the Cape Breton economy. Consultations on how to invest this funding were recently completed. A strategy for the delivery of the appropriate funds is now under development and it should be in place very shortly.

I would like to make reference to the report of the consultative panel who went to work on this issue to hear firsthand from the people of Cape Breton what their hopes and aspirations would be for the use of that funding for the future. The consultative panel was chaired by Mr. Michael Kelly and included six other very distinguished people who have very deep roots in Cape Breton and a keen understanding of the circumstances in that important part of Canada.

The report which they have produced and which was released a short time ago is a very interesting description of the circumstances on Cape Breton. More than that, more than looking backward, the report offers a breath of fresh air, a new look toward the future at what could be if certain circumstances come about and if the $68 million from the Government of Canada and the $12 million from the Government of Nova Scotia are properly invested.

The report is a summary of discussion themes that were brought forward through presentations and written submissions during the consultation process on economic renewal. Sessions were held throughout Cape Breton Island in November and December 1999. In total, 214 presentations were made and 210 written submissions were received. Hundreds of Cape Bretoners from all walks of life attended meetings from New Waterford, Glace Bay, Sydney, Sydney Mines, Baddeck, Port Hawkesbury, Petite-de-Grat, Chéticamp and Ingonish. They contributed ideas and suggestions on how to grow a new economy for the island.

The report is a result of all of that consultation. It emphasizes the importance of taking advantage of the growth potential of certain key sectors, facilitating the impact of established industries, enriching Cape Breton Island's investment climate, fostering trade to grow wealth and the opportunities associated with exciting decisions on new government services and programs.

For any members who are sincerely interested in this crucial issue of revitalizing and changing the direction of Cape Breton's economy, I would certainly recommend a very close reading of that report from the consultative panel. The panel members did their job well. On behalf of the Government of Canada I want to thank them for the enormous effort they made to make sure that the voices of Cape Bretoners were heard in this process.

Consistent with the work of the panel and the thrust of its report, we have already begun to invest. Some $7 million has been allocated to a new EDS customer service centre in Sydney, Nova Scotia. This undertaking has the potential to generate up to 900 new jobs on Cape Breton Island within a five year period. As the member for Sydney—Victoria and many others have noted publicly, this will be helpful in building a better future and there will be more to come.

With respect to the workforce adjustment package, the basic proposal worth $111 million was originally announced in January 1999. In full compliance with all existing collective agreements, that original package provided a combination of early retirement incentives and severance and training payments and was predicated on certain practical assumptions.

One of those assumptions was the continuation of coal mining operations in the Phalen mine on Cape Breton through all of 1999 and most of 2000. As we all know, that assumption did not come to fruition. In fact for the most compelling of geological and safety reasons, Phalen had to close about a year sooner than had been expected.

Last year with the announcement that Phalen would have to close prematurely, we immediately indicated that parts of the original human resources package would need to be re-evaluated to take into account this unexpected change in circumstances. That evaluation was under way when in January of this year the union leadership at Devco renewed its request for a formal joint planning committee process to resolve all outstanding human resources issues under the full terms and conditions of the Canada Labour Code.

The process under the Canada Labour Code involved several defined steps which were meticulously followed as the unions had requested. This included the selection of Mr. Bruce Outhouse, an eminent arbitrator who was well qualified and fully acceptable to all sides.

As members of the House know, the joint planning committee process was taken through to its final stages with the binding arbitration decision published on June 2. The decision has expanded the eligibility for the early retirement incentive program and has provided medical benefits for those who receive a severance and training package, as well as a number of other features.

Devco indicates that in addition to the previous 340 miners, an additional 249 employees will now be eligible for an early retirement incentive.

The government and Devco will address the financial implications of the decision of the arbitrator. These are considerable, in the range of about $50 million, in addition to the $111 million that was announced in January 1999.

I will now turn to the sales process. As I have said in the House before, Bill C-11 relates to the sales process. It is very straightforward and its purpose is simple. It satisfies the necessary legal requirements to authorize the sale of Devco's assets including those requirements that are contained in the Financial Administration Act as passed by the Parliament of Canada.

In June 1999 Devco hired BMO Nesbitt Burns Inc. as its financial adviser to manage the sales process. Last August the first task for Nesbitt Burns was to review the sales process at public meetings in Cape Breton with community and stakeholder groups and to obtain their input. Beginning in October 1999 Nesbitt Burns contacted 60 prospective purchasers. In December, Devco on the advice of Nesbitt Burns identified a short list of prospective purchasers who were invited then to submit definitive proposals. Such proposals were received by the Devco board.

Devco is now at the stage of evaluating and clarifying one of the proposals with a view to finalizing the broad terms and conditions of a potential sales agreement, perhaps as early as later this month. Negotiations concerning a final detailed purchase and sale agreement would then follow. A final deal is subject to both Devco board and Government of Canada approval.

The prospects for transferring the assets of Devco to the private sector and for maintaining coal mining jobs in a viable private sector commercial operation for the future are very real. It is important that we move forward with this opportunity. That is what this legislation is all about.

This bill was first introduced in the House on October 27, 1999. Second reading debate took place last fall and this spring. Over 25 members have spoken to the bill during House and committee proceedings.

It is our strong conviction that passage of the bill and the establishment of a commercial operation is the very best way to try to ensure that coal mining will continue to provide jobs and contribute in the long term to the economy of Cape Breton. This is an important step in reshaping and revitalizing Cape Breton's future prospects and it needs to be kept in the context that I have described. It is not a sale all on its own.

In addition, there is the $68 million economic development fund provided by the Government of Canada to which the province of Nova Scotia has added a further $12 million. Through that funding and through the regular funding of the Atlantic Canada Opportunities Agency, Enterprise Cape Breton Corporation and Human Resources Development Canada, our government will continue to work with Cape Bretoners on a wide variety of fronts to diversify their economy beyond the coal sector, which we hope to preserve through the private sector transaction that this legislation is all about.

Of course, in addition to the sale, in addition to the economic development initiatives, in the short term a solution has also been found to the contentious and difficult human resources issues. That was done through the independent work of a distinguished arbitrator who was approved in advance by the unions, and in fact put into place at the unions' request.

Despite how difficult and contentious the issues surrounding Devco have been and continue to be, I hope that we can all now turn our attention to using all available resources, all available talent and brain power, all available commitment and dedication to maximize Cape Breton's future potential to turn the corner toward something that can be much better in the future, to do the very best we humanly can to ease the burden and to smooth the way.

I want to thank all members of the House, whether they agree with the government or not on this issue. I believe very sincerely that they have approached this issue in a conscientious way, in a passionate way, and I thank them for their contributions to the debate as it has unfolded.

I would particularly like to acknowledge the very good work that the committee chair, the member for Eglinton—Lawrence, has done and all of the members of the committee. I would also like to acknowledge the very good work of the member for Algoma—Manitoulin, who is my parliamentary secretary and who has assiduously worked every step of the way on this important bill.

I also want to acknowledge and thank members of the opposition, particularly the members of the New Democratic Party who represent the area most affected by this legislation. Again, while we may be on opposite sides in some of the debates, I hope at the bottom line we share a common desire to try very hard to do the right thing to improve the quality of life of the people of Cape Breton.

[Division No. 1350, June 6th, 2000]

moved that the bill be concurred in.

[Infrastructure, June 5th, 2000]

Mr. Speaker, Canadian municipalities are very strong advocates of effective early action to combat climate change and other environmental challenges.

In the 2000 federal budget we ear-marked $125 million to assist municipalities to advance that work, $25 million for an enabling fund to help them identify needs and solutions and $100 million in a revolving fund to help in the financing of specific projects. The funding will be managed by councils and review committees set up by the Federation of Canadian Municipalities. The Government of Canada is proud to be their partner.

[Importation Of Plutonium, June 5th, 2000]

No, Mr. Speaker. Canada has undertaken to test certain quantities of MOX fuel to determine their suitability in nuclear reactors such as the CANDU. There has been no agreement, indeed, not even a request for an agreement to move beyond the test.

[Devco, June 5th, 2000]

Mr. Speaker, we are in the process of precisely determining the financial implications of the arbitrator's decision. I am pleased that process has come to a successful conclusion. To the extent that arbitration award requires incremental funding from the Government of Canada, the Government of Canada will provide it.

[Devco, June 5th, 2000]

Mr. Speaker, I said all that on Friday.

[Mining Industry, May 18th, 2000]

Mr. Speaker, the whole objective of the sale process with respect to the assets of Devco is to place the coal mining operations of Cape Breton on a secure long term foundation for the future of the private sector in the most viable terms possible.

Obviously we will be looking for a transaction that has within it the best possible economic terms, most especially the maintenance of the largest number of jobs for Cape Bretoners.