44th Parl. 1st Sess.
September 19, 2023 10:00AM
Mr. Speaker, he had almost as much time as I had in my remarks to give a speech, so I hope you will give me some time to respond. First of all, there is no gun registry, and I am happy to work with the Minister of Public Safety to make sure there is an exemption for sport shooters.
Number two, on Sustainable Marine, I agree with the Department of Fisheries and Oceans that we have a problem. I have been out and vocal—
Some hon. members: Oh, oh!
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Mr. Speaker, it is certainly a pleasure to be back in the House of Commons. The last couple of months were tough. I had a few sinus surgeries, missed a bit of time and had some uncomfortable moments, but I am really happy. Truly, when one does not have good health, it really gives one an understanding of how precious it truly is.
Today I am really excited to speak to this bill for a number of reasons.
Before I get into the meat and potatoes of it all, there are a few comments I heard. I am really encouraged by the fact that the Liberal member from Nova Scotia acknowledges that the Department of Fisheries and Oceans is a complete failure on just about every front.
In Miramichi—Grand Lake, it failed the Atlantic salmon: the fish, the species and the community itself, all of the people who benefit from it, on a vast, almost unprecedented, scale. It actually does not even deserve the right to govern it anymore. As a federal MP, I am left believing that, with regard to the Atlantic salmon, though it is a federal jurisdiction, the DFO has lost the right to govern it. It actually does not care. The people where I live know this and it is heart-wrenching for all of us. My dad was an outfitter. I grew up a salmon fisherman and a guide, so I have seen a very serious decline in that species.
I will comment on the Liberal member's question of Progressive Conservative support in the Conservative Party of Canada. That was one of my favourite things he said. I am going to quote what the Right Hon. Brian Mulroney's son tweeted the other day, after the Quebec City convention. This is what the Right Hon. Brian Mulroney said to his son about our leader's speech at the convention: “Mark, I attended my first convention in 1956 for Mr. Diefenbaker. I was 17 years old. I've seen a lot of convention speeches since then. [The leader of the Conservative Party's] speech was probably the best convention speech I have ever witnessed. [The leader of the Conservative Party's] command of such a large amount of information in both official languages for an hour and a half was extremely impressive. The only other speech that may have challenged his own was that of his wife Ana's.” That was the Right Hon. Brian Mulroney.
Just as an honourable mention, the Hon. Peter MacKay was speaking at the convention and was quite proud to do so. I think that the Liberals can take their worst fears and realize that they are true. Maybe they should plan harder, go door to door and start working harder. I can understand that.
I am now going to get into Bill C-49. In my speech today, I am going to cover three things. Number one is the positive impact of the Atlantic accords in both Nova Scotia and Newfoundland and Labrador. Number two is the potential upside of Bill C-49's proposed changes to energy regulation for the Atlantic offshore. Number three will be the reasons why I cannot support Bill C-49 as currently presented.
Let us start with the 1985 Canada-Newfoundland Atlantic accord. The original Atlantic accord was an agreement between the province of Newfoundland and Labrador and Ottawa concerning the management of the oil and gas reserves off the coast of Newfoundland and Labrador. It determined how two governments shared revenues and how that income affected the equalization payments received by the province. It also established the Canada-Newfoundland and Labrador Offshore Petroleum Board. The Atlantic accord was a watershed in the province's economic development. It ended years of negotiations and allowed Hibernia and subsequent offshore oil fields, including Hebron, Terra Nova and White Rose, to enter into production.
Mobil Oil carried out the first seismic surveys on the Grand Banks in the 1960s, and then exploratory drilling continued during the 1970s. Chevron Standard Limited discovered the first commercial oilfield, Hibernia, in 1979, one year after I was born, but development could not proceed until the provincial and federal governments resolved the ownership and management disputes, which continued from 1967 through 1985.
The Atlantic accord was widely hailed as a success and a turning point for the provincial economy. At the signing in 1985, premier Brian Peckford predicted that it would allow “this province to catch up socially and economically to the rest of Canada”, while Right Hon. Brian Mulroney famously stated, “I am not afraid to inflict prosperity on Newfoundland and Labrador.”
We can see very early on in my speech and the history lesson that Conservatives clearly had a vast, productive and successful outlook for Atlantic Canada. I just went back over a number of decades. This is history, and that is why it is important.
Twenty-six years ago, Hibernia, Newfoundland and Labrador's landmark oil production platform, became the first to produce oil in the province. Newfoundland and Labrador’s offshore oil and gas have contributed more than $25 billion in royalties and directly employed over 6,000 people, as well as thousands more in supporting industries. That is $25 billion in royalties and over 6,000 people employed. The Hibernia project came to life thanks to former prime minister the Right Hon. Brian Mulroney’s support at a time when Newfoundland and Labrador was facing economic and cultural challenges of the cod moratorium. Hibernia created thousands of jobs and new government revenue at a time when it was truly needed.
Hibernia was celebrated as a new dawn for Newfoundland and Labrador’s economy in 1997 and has continually exceeded expectations over the past quarter century. Production was expected to last 18 to 20 years and produce 520 million barrels of oil. In fact, Hibernia has produced more than 1.2 billion barrels of oil and has paid almost $20 billion under fiscal agreements to the provincial and federal governments since 1997. Today, about 95% of those working on the Hibernia project are Newfoundlanders and Labradorians. The skills, technical ingenuity and work ethic of the team have been the backbone of Hibernia’s success for 26 years and will continue into the future. That future is exciting, with the potential for Hibernia to continue production for another 20 years.
In Nova Scotia, one of Premier John Hamm’s most notable achievements was negotiating with the federal government to implement the Atlantic accord, a multi-decade regional development program that had been approved in principle during the late 1980s to prevent provincial government offshore oil and gas royalties from being included in calculations for the federal equalization program. This resulted in an $830-million payment from the federal government to the Nova Scotia government in 2005, which Premier Hamm applied against the principal on the province's long-term debt, thereby reducing debt servicing payments by more than $50 million annually. That is clearly another great Conservative decision made over the course of time.
During Premier Hamm’s reign, the Sable Offshore Energy Project was Canada’s first natural gas project. The Sable project provided a new source of clean energy to Nova Scotia and New Brunswick, and a new supply to the northeastern United States through the Maritimes & Northeast Pipeline. Saying the word “pipeline” in the chamber gives me pleasure, but not what really what it should have given me. New Brunswickers wanted to bring a pipeline from Alberta to Saint John and Montreal. I remember that, at the time, the mayor of Montreal was against it and the Province of Quebec was a little worked up about it. Now, however, Quebeckers are against the carbon tax, and some of the Quebec members of the House who are not in the Conservative Party are running for dear life because they supported the carbon tax and put that on the backs of Quebeckers. They are going to pay for it.
Beginning production in 1999, Sable was a catalyst for $3.7 billion in direct payments to Nova Scotia’s government. Made up of royalties, Crown share and exploration payments, this is money that helped build better schools, hospitals and roads over 20 years. Since the mid 1980s, Canada, Nova Scotia and Newfoundland and Labrador have jointly managed the development of offshore petroleum resources under the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act and the Canada-Newfoundland and Labrador Atlantic Accord Implementation Act, also known as the Atlantic accord acts, which generated more than $30 billion in government revenues off the east coast.
Here are a few points that are worth making about the concept behind Bill C-49. The idea of a single regulator for offshore energy projects makes sense, whether they are oil and gas or renewables, such as wind. Joint management between the federal government and Atlantic provinces is good and should be maintained, as that was the promise of the original accords, which we have just learned were successful.
Regarding offshore wind, siting is important so that other existing users are not damaged by the new activity, whether that be fishers or transportation routes. It is extremely important that the wind industry works with fishers to minimize direct impacts and ensure collaboration and compensation if there is to be a direct impact. The end of project remediation and bonding must be sufficient to remove the infrastructure when out of use.
The current process will take far too long to identify potential areas suitable for activity, and it is likely that Canada will miss the opportunity to benefit from offshore wind. Generally, floating wind is less impactful than fixed and provides more flexibility for siting in deeper water, which tends to be away from land and inshore fishing activity. By the time the current process concludes, at the pace they are going, the opportunity will likely have passed Canada anyway. We saw that with the Energy East pipeline. That was the Liberal government's problem across the floor. It caused that. I saw it in my own province of New Brunswick. We were decades behind in natural gas production, and we lost the ability to move forward with moratoriums. It really set New Brunswickers back. That was a project that should have been a success.
For Nova Scotia, offshore wind is an area of promise because land spaces are limited and tidal is still speculative. Nova Scotia does not have hydro opportunities, yet the federal mandate to be off coal is real for 2030.
One big red flag for me is that Bill C-49 allows the federal government to rely on the regulators for indigenous consultation. This could result in court challenges and detrimental judicial decisions for both offshore petroleum and renewable projects if the federal government relies solely on the regulators and does not sufficiently execute the Crown’s duty to consult because this bill also makes government ministers the ultimate decision-makers.
I know from my time as the minister of aboriginal affairs in New Brunswick that our first nations want to be partners in future energy projects and not to be just considered as stakeholders. They want to be partners. I know from all of my experience at that time that negotiation is always a better path than litigation. We have seen situations in the past where governments get really excited about projects. Governments get excited about potential economic projects and large energy projects. What happens is that they will bring in the chiefs of first nations at the ninth hour, when they have already upset them as they have missed the process. It is interesting that this legislation is coming from the Liberal government right now because it has clearly failed first nations on every single front.
I was reading something yesterday that struck me about all the work that the Liberals have done over the past 20 years to basically pretend to be best friends with first nations' people. We have situations in this country where people of indigenous descent in our country do not have water. They have water they cannot drink, and that is a basic necessity of our country. It is a basic necessity for almost every country in the world, and it should be paramount. The Liberals have failed to provide that. I cannot believe they would put a bill forward in the House that would literally disrupt the duty to consult. We have seen how successful those projects have been. Times have changed. We have to work with everyone involved. We clearly have to work with treaty people as a part of being in Canada.
The Liberals have put this forward. It is really rich of them to do that because there are a lot of indigenous people still waiting for clean water. They should get on that. They do not have a leg to stand on at this point. It is totally ridiculous that they would ever claim friendship with any indigenous person in this country. I can tell colleagues right now that that is a box they had better start to check off, or none of this will be successful.
There has been more red tape and delays. This bill would add delays in the approval process because it would triple the timeline from the current framework and would politicize the decision-making process, giving final authority to the federal and provincial ministers.
Canada’s red tape regime already hinders traditional and alternative energy development. This bill would add broad, unilateral, discretionary cabinet powers for arbitrary decision-making. It would actually increase timelines and add uncertainty around requirements, which would drive investment away. We have seen this record play over and over in our country.
There was a project in New Brunswick called Maritime Iron. Everybody got all worked up and said it was not economical. Somebody in Venezuela thought it was economical. I remember other projects where it was said that they would not be economical and might emit carbon. Can members guess what? China had the same project with the same company. I have seen North African companies take our projects too.
It pains me to say that New Brunswick has lost so much because of bureaucracy, whether provincial or federal; weak leadership; the failure to consult with first nations; and an overall lack of understanding of the projects in front of us, which could have paved the way for New Brunswick.
We have Sisson mine, a natural gas extraction in New Brunswick. We have moratoriums on uranium. We have moratoriums on natural gas, even though the lamps in the entire city of Moncton were lit by natural gas in the late 1800s. There are areas in New Brunswick where we have had it forever. That is what we are built on.
The Liberals really need to get their act together on this because the Atlantic accord was a big-time positive in Atlantic Canada. We need them to stop driving investment away, and impeding growth and progress in Canada.
This bill could end offshore petroleum drilling in the Atlantic provinces. Sections 28 and 137 would give cabinet the ability to end offshore drilling or renewable energy projects with the authorization of the provincial minister if the area may be identified as a marine protected area.
Any activity may be suspended in the marine protected area or in an area that may be identified in the opinion of cabinet as a marine protected area, which would create significant uncertainty. There would be no formal indigenous consultation required in the cancellation of new or currently operating projects.
The Liberals' Bill C-55 allowed the fisheries minister to select marine protected areas by order in council, which can prohibit development and activity. This bill would implement this measure, which the Conservative Party opposed because marine protected areas should really be called “prohibited development areas”. That would be common sense, but what we are getting over here is nonsense, and that is why they have it that way.
In closing, let me reiterate that Conservatives support the development of offshore wind and renewables in Atlantic Canada, but this bill would impose uncertainty and extends timelines, which could hinder the development of the sector while creating opportunities for politically motived, anti-energy decisions and delays of offshore petroleum development.
Bill C-49 should be amended to require the development of a framework for renewable energy projects that would require clear plans for the project’s impact to fish, birds and the environment. It should also require consultation with impacted indigenous communities and private sector proponents before the establishment of a marine protected area and/or the cancellation of any operations in progress.
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Madam Speaker, I apologize.
Sustainable Marine Energy started developing an alternative energy project in the Bay of Fundy. After 10 years of hard work, it was providing clean, green energy, which is what we all want, to Nova Scotians. For all their trail-blazing efforts, Sustainable Marine Energy was awarded a tide of red tape from the Department of Fisheries and Oceans.
The repeated delays and a bombshell permit rejection, which the Liberal government refused to justify, were the straw that broke the camel's back. After five years of insurmountable regulatory challenges, the pilot project in Digby county was cancelled.
Let us think about the common elements here. Even though the project was the kind of renewable energy that the Liberal government is saying it wants to have, the company had to jump through hoops for 10 years. Finally, the government was able to pull the permit. The federal government can pull the permit without any justification. This is just a precedent of what is to come with the other projects currently existing in the petroleum sector on the coast. I am very concerned about that.
The other thing I would say is that Bill C-49 contains language to put Bill C-69 in it. It directly references the Impact Assessment Act, which, as I said, is a process that makes project approvals longer and their consultations more complicated. At the same time, someone could start and stop the process as many times as they wanted. There is lots of uncertainty. I am very unhappy about that one.
If we look at the access to offshore infrastructure, this bill says that the cabinet, the governor in council, would regulate access to that infrastructure, including enforcing tolls and tariffs. Here we go again. It is another opportunity for the Liberal government to toll, tariff and tax something that is already in place.
Who is going to pay the extra cost of those tolls, tariffs and taxes? The consumer of the energy that has been created will ultimately pay those costs. Have we not learned anything? We have seen the carbon tax get put in place. It drives up the cost of gasoline. It drives up the cost of home heating.
People in the Atlantic provinces are already struggling. All the premiers have asked for the removal of the carbon tax, and even the Liberal MPs from that area are asking for the removal of the carbon tax because it is increasing the cost of everything. It is increasing the cost of food.
They are not just taxing the farmers and putting tariffs on the fertilizer, which is another tariff and another cost that is being passed along, but they are also taxing the transporting of the goods to the processor. There is a carbon tax on the processor. They are shipping it to the grocery store with a carbon tax on that.
At the end of the day, the consumer is paying. When I see clauses such as this saying that the government can enforce tolls and tariffs on the infrastructure, I am concerned for the ultimate consumer because these costs are significant.
If we think about the carbon tax, we know from the Parliamentary Budget Officer that the carbon tax is costing, depending on what province one lives in, from $1,500 to $2,500. Then there is the second carbon tax that was put in place, and the cost of that is another $1,800. That one is in every province, even in Quebec, although they are trying to deny that it is.
We talk about extra tariffs on top of that, and Canadians are out of money. The government is out of touch when it comes to understanding that there is no more money that people can pay. They were within $200 of not being able to pay their bills before the pandemic. Now, with the increase of all these taxes, people are borrowing money to live, and some of them have lost their houses and become homeless. People are skipping meals. They cannot afford to eat. Honestly, I am very concerned when I see this kind of language in the bill.
There is also a financial stipulation in the bill. It came with a royal recommendation, which says there is some level of federal funding that is required. An obvious question may be how much the funding is. There is no answer to that. It was not in the budget. It was not in any of the forecasts.
Where is this magic money going to come from? Are we going to run additional deficits? That is inflationary spending. We keep telling the government about this. In fact, the finance minister herself said that it would be pouring fuel on the inflationary fire to have this extra spending, but then we see things such as this, where there is extra spending. It is not even defined how much it would be. That is not going to be an acceptable alternative, as far as I can tell.
I will be clear that Conservatives support the development of renewable resources, but we support those developments without political interference. We do not want the government of the day picking winners and losers and deciding what to shut down based on its ideology. That is not where we want to be. We want to see the free market drive this. There is an opportunity to create jobs, create prosperous industry and do the right thing for the environment. That is what Conservatives want to see.
I do not think this bill is capturing that. I think there is a lot of political interference put into the mechanisms of this bill in ministerial powers, cabinet powers, and tolls and tariffs. There are lots of mechanisms for the government to interfere.
Canadians are struggling, and the government's new draft regulations on clean electricity will push up costs even higher. Reporting from CTV in August indicates, “Electricity infrastructure expenses are expected to increase significantly over the next several decades as maintenance and increased demand is estimated to cost $400 billion”. That is already before we know how much the offshore renewables are going to cost.
I ask members to remember the lesson from Ontario, which was that it drove the price of electricity up so high that we were uncompetitive and people could not pay their power bills. This is not just a lesson from Canada. Germany experienced the same thing. It went heavy on renewables, which drove the cost of everything up. It then went back onto Russian oil and coal. Of course, we refused to take $59 billion to put Germany on low-carbon LNG from Canada, so Australia took that deal. It was the same thing with Japan, which gave us the same offer. Saudi Arabia took that deal.
Gee, I wish we had $120 billion more to put in our health care system so that everyone in this country could have a doctor. That is what I think. All I can say is that those are some of the concerns I have. There are many things in the bill that I do not object to. There are some administrative things that are taken care of. Those are fine.
Do I think we can fix all of this at committee? Call me skeptical, but my experience under this NDP-Liberal coalition is that its members will ram through an agenda to shut down oil and gas, and it does not matter what reasoned amendments the Conservative Party will bring at committee, as they will be refused. They will ramrod it through. They will time allocate it to make sure this thing is rushed through. They will be skimpy on the details and say, “Trust us. We'll get it in the regulations.” I have been here long enough to know that that is not good for Canadians.
Our job here as the official opposition is to point out what is wrong with these bills. It would be so nice if we could be consulted before the thing was written, when it could still be altered, but here we are with something that honestly has way too much political power in it. I do not think it is going to be good for the Atlantic provinces. They do not think it is going to be good for them. They are already crying out against the policies of the government with respect to the carbon tax.
Those are my initial thoughts. I may have more thoughts as we go forward, but I would be happy to take questions.
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Madam Speaker, I want to begin by thanking my colleague with whom I have the great pleasure of serving on the Standing Committee on Fisheries and Oceans. He chairs that committee and we have spent a lot of time together trying to save our fisheries. I would like to ask him two questions.
We worked hard on the right whales file. We have seen all the effort that is being made by our fishers to keep right whales as safe as possible and ensure their survival. We know that takes a lot of energy and causes a lot of stress for our fishers.
What should we make of the marine gas exploration initiative in an area known to be frequented by right whales versus the efforts fishers are making to save this species?
Meanwhile, Quebec is a role model in terms of wind energy. We know that social licence is needed to implement this type of mechanism, which is a great alternative to gas exploration.
Are you sure you are going to get enough social licence from your people?
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