That, in the opinion of the House, the Keystone XL pipeline would intensify the export of unprocessed raw bitumen and would export more than 40,000 well-paying Canadian jobs, and is therefore not in Canada’s best interest.
He said: Mr. Speaker, I am very pleased to rise in the House to speak to this motion.
I would like to preface my remarks by talking a bit about my past. I used to work in one of the now closed oil refineries in this country, the Shellburn Refinery in Burnaby, British Columbia. As a result of having worked with oil, having had to clean out the oil tanks at the refinery as part of my job, I developed a healthy respect for that substance. When cleaning out oil tanks, people need oxygen tanks and full safety equipment. If the safety equipment malfunctions or the oxygen tanks run out, the worker is not around any more.
That degree of danger and a healthy respect for a substance that can bring some benefit but also some danger is something I would like to bring to the debate.
Just to start off, I would like say that we are talking today about Keystone and value-added jobs. We are also talking, though, about the government's lack of action on climate change and the environment. That is part of the ongoing narrative. As President Obama said so well when he was looking at Keystone, the Conservative government simply has to start taking environmental measures.
As we will see later on, Canada is beyond being a climate change laggard; we are among the worst of the 60 countries annually surveyed on climate change. We are in 58th place out of 61 countries. It shows an appalling lack of leadership and an appalling lack of responsibility on the part of the government.
There are environmental issues we will be bringing to the fore throughout the course of the day while we are debating this issue. There are also economic issues, which I will come back to in a moment, and of course, safety issues.
One of the things I will be pointing out in my 20 minutes is the fact that under the Conservatives, there is not only increasing danger in our railway system, which has been sadly and tragically underscored by the appalling devastation in Lac-Mégantic, but in pipeline management, as well. Under the Conservative government, we have seen a steadily increasing number of pipeline leaks and pipeline spills. In fact, there has been a doubling over the last few years on the Conservatives' watch.
When we are talking about the issue of Keystone, we are talking about value-added jobs, of course, but we are also talking about a complete abdication of responsibility by the government on the environment, on climate change, and on pipeline safety. I think those are important issues to bring to the fore.
Earlier I referenced that I was refinery worker. I would also like to flag that on natural resources issues generally, the Conservative government has been appalling bad.
I represent the riding of Burnaby—New Westminster. Many of my friends went to high school in New Westminster, at the New Westminster Secondary School. After high school, my friends went into the softwood lumber industry. They worked at the three plants that existed there: Interfor, Canfor, and Western Forest Products in New Westminster. There were hundreds of well-paying jobs and thousands of indirect jobs that depended on the softwood industry.
All of that was eviscerated and evaporated overnight when the government irresponsibly signed the softwood lumber sellout. Now we have Conservatives laughing at the loss of jobs. I am sorry, but I think we should be standing up for the workers rather than having Conservatives laugh at the loss of jobs. Two thousand indirect jobs were lost as a result of the signature on that agreement. They may laugh at those families, many of whom I went to high school with. Those families had to cobble together a couple of part-time jobs.
The one hope they have is looking to 2015 and looking to the election of an NDP government that is actually going to take workers seriously.
I have seen first-hand the devastation in my community wrought by the incredible irresponsibility of the government, signing an agreement it had not even read and did not even understand. The NDP certainly raised this issue consistently in the House.
I saw first-hand in the natural resources sector the loss of jobs, which eventually added up to about 60,000 manufacturing and value-added jobs lost in the softwood lumber industry following that agreement.
When we look at that, when we look at the actual loss of jobs in smelting and refining even in the mining industry, it is a source of real concern. Because the number of mining and quarrying jobs has gone up over the last few years, but Statistics Canada tells us that the number of jobs lost in the smelting and refining sector, when we are talking about mining, has gone far beyond any gain of jobs in mining and quarrying.
If we look at the lumber industry, at the mining industry and now at the energy industry, this has been a dismal period for working families. There is absolutely no doubt. We have to come back then to the issue of the energy industry. The Conservatives messed up the two other areas. Why would they be pushing Keystone, which results in a loss of value-added jobs?
I will start off by saying two undeniable facts and a third one that really impacts on Canadian working families.
The first undeniable fact is that under the current government we have lost half a million value-added and manufacturing jobs. That is a simple fact. It is undisputed. Even the Conservatives admit to it. They say they have given a few part-time service jobs so that must compensate. The reality is that half a million value-added and manufacturing jobs being lost on the watch of the Conservative government is undeniably a sign of failure.
Second, is our current account deficit. What we are doing increasingly is exporting raw materials and importing the value-added products and the manufacturing products from overseas. In 2011, that deficit on current accounts was $49 billion and it gets worse. Last year, it went to $62 billion. That is a record. We have never had a deficit that large in our nation's history. That is directly related to the government's failure on value-added jobs, its failure to understand that we need coherent policies and we need to put those policies in place to ensure that Canadians get to work.
The third point I would like to make and the third undeniable statistic is that the working families across this country, so many of whom are represented by NDP MPs in this Parliament, are now struggling under a record debt load. It is a burden that we have never seen in our history. It is actually highest in Alberta. Those working families struggling under a burden of massive debt because they have seen an erosion in real income at the same time as expenses continue to climb, that is something that is extremely germane to this debate. We are talking about Canadians over the last seven years getting poorer and poorer, and more and more in debt every year that the Conservatives are in power.
When we talk about value-added jobs, we are talking about something that has a profound impact on the quality of life of ordinary families right across this country.
Here we have the failure of the Conservative government in a whole range of sectors, a failure to create value-added jobs, failure to create manufacturing jobs, crippling debt loads and a current account deficit that is by far the worst that we have ever had in our history. What is the Conservative government's solution to all the problems it has inflicted on Canadians over the last seven years? Its solution seems to be to move to raw bitumen exports, and somehow that will address what has been the chronic mismanagement of the nation's economy for ordinary working people, families that simply are working with a lower quality of life than they had before.
Then we have to look at what the actual impacts are of this strategy for raw bitumen export. That brings us back to the issue of Keystone. In speaking about Keystone, I would like to start by citing some of the Albertans who have raised real concerns about what the impact of the Keystone pipeline is. We are talking about a pipeline that exports raw bitumen out of the country. What have some Albertans said about what this means in terms of good, well-paying, value-added jobs?
Former Alberta Premier Ed Stelmach, who certainly seemed to understand that issue, said the following. I will read the quote slowly because it is important to have it on the record:
...shipping raw bitumen is like scraping off the topsoil, selling it and then passing the farm on to the next generation.
He said that in 2006.
That is really what we are talking about here. We are not talking about creating value-added jobs. We are talking about scraping off that topsoil and then sending to the next generation a farm that has no topsoil left. We have basically gone through the resource. We have not gotten the value-added jobs that should be coming with that, and yet at the same time, we have a government that is absolutely obsessed with the idea that this is the only way for Canadians to prosper.
Obviously, if that type of approach has not worked in a whole range of other sectors, Ed Stelmach is absolutely bang on in saying that this is not an appropriate response from any government that wants to create well-meaning, value-added jobs.
Gil McGowan, the president of the Alberta Federation of Labour, said the following about Keystone:
What we fear is that the consequence of this particular action will be to deny Albertans literally thousands of high-paying, long-term jobs in upgraders and refineries....
...[every] barrel of bitumen shipped down the Keystone pipeline or other similar proposed pipelines is a barrel of oil no longer available for value-added production and job creation here in [Canada].
Gil McGowan, the president of the Alberta Federation of Labour, in other words, the president of a federation of workers who work in the energy industry, said that in December 2007.
Those are two Albertan voices saying, very clearly, that the idea of sending raw bitumen out of the country means that literally we are sending jobs out of the country. This is a matter of real concern.
As far as the figures given and the approach given by the current government, I would like to cite a few other voices.
Robyn Allan comes from western Canada, like myself. She is a well-known economist in western Canada, as well as the former CEO of the Insurance Corporation of British Columbia, who is well-known for her commentary on the energy sector. She said that:
Chopping local downstream expansion projects....
In other words, not having value added but looking to export raw bitumen.
...breaks the value-added chain. Canada's oil resources increasingly become a pool of raw crude waiting to be siphoned off along pipelines serving economic development and energy security needs of other nations. These nations are smart. They know controlling the supply chain mitigates the pain of rising oil prices.
If more bitumen upgrading was undertaken where it comes out of the ground, we wouldn't need as many new pipelines. She references that about 30% less capacity is required when we are moving upgraded bitumen, as opposed to exporting raw bitumen.
Studies have been done along the Keystone pipeline. Informetrica, in 2006, studied the issue of exports of raw bitumen and came to the following economic analysis. At a rate of 400,000 barrels per day of export of raw bitumen, 18,000 jobs are lost. Here is an indication, by Informetrica, that for every 100,000 barrels of raw bitumen that are exported, we are looking at 3,000 or 4,000 jobs that are lost, which could be there. The building trades could be there and the energy sector could be there, both in terms of upgraders and refineries as well.
We are not talking about figures such as those sometimes cited by our friends on the government side. They will throw out studies that are promptly dismissed, because unfortunately in each of those cases, when we look at the studies themselves, they are not credible. When we have the credible studies that show what the economic impacts are, we have simply not had any understanding from the Conservatives of what the impacts are of putting all the eggs in the basket of raw bitumen exports.
The Alberta Federation of Labour also did an economic analysis, which they submitted to the National Energy Board, on Keystone XL. It showed that, as a result of the raw bitumen exports going through Keystone XL, we would be losing at least 40,000 Canadian jobs. That is a considerable amount. When we think of the growth in the energy sector, the loss of 40,000 potential jobs is extremely significant for our economic future.
What we are seeing in study after study, whether it is done by Informetrica, Robyn Allan or the Alberta Federation of Labour, is that we are simply giving away a resource without putting in place the smart economic policies that allow for the value-added jobs that need to come with that resource. We can talk about the shut down of Interfor in New Westminster, B.C., and the subsequent export of raw logs that resulted, or the shutting down of smelting and refining of our minerals, losing more jobs than we have gained in the mining and quarrying sector. We can also talk about the export of raw bitumen, and losing as a result tens of thousands of potential jobs.
In every one of those cases, we are talking about ordinary families struggling to get by under phenomenally heavy debt loads that get worse every year as a result of the policies of our federal government. Rather than those families getting relief and an economic plan in place that would actually make sense to fully develop those resources and have value added, we see a government hell-bent on exporting those jobs. We have seen from a number of very credible observers and analyses that, obviously, there is an impact.
I would like to come back to the issue of climate change and pipeline safety because those issues are also germane to the debate that we are having today.
As I mentioned earlier, there is an annual evaluation of how Canada is doing called the “Climate Change Performance Index”. In 2013, out of 61 countries evaluated by the Climate Change Performance Index, where do members think Canada stood? Do members think Canada was in the top 20? Well, it was not. Was it in the top 30, 40, 50? No. We placed 58th under the current government.
Placing 58th out 61 countries in the 2013 Climate Change Performance Index is not an “F”, it is being thrown out of the program. It is lamentably bad. There were countries that did worse. There were three of them. Kyrgyzstan was 59th, Iran 60th and Saudi Arabia was 61st.
Obviously, if what we are seeing around the world are other countries taking climate change seriously, we have to get with the program. It is not just Canadians who feel that way.
President Obama referenced this in connection with Keystone. He said very clearly that Canada, being a climate change laggard, had to start taking very concrete action on climate change and the environment. President Obama could not have been more clear. Therefore, if Keystone is not approved, it is as a result of the failure of the Conservative government to take any sort of action on the environment and climate change. Being 58th in the world clearly shows that.
I also mentioned pipeline safety. We have seen a doubling of the number of spills across Canada, which is of increasing concern to Canadians.
We believe in our leader, the member for and Leader of the Opposition, who has said repeatedly that we need to put in place a national energy strategy. We need to ensure value-added production in this country. We need to ensure that we have the top level of pipeline safety, and take action on climate change, of course, but also take action on the environment. We need to start transitioning to clean energy.
There is a trillion-dollar market worldwide, which is going to double over the next decade. Canada gets very little of that. In fact, in very real terms, the hundreds of thousands of new jobs that are coming from clean energy simply are not reflected in the Canadian economy. Therefore, folks across the country who will be looking in 2015 for real leadership can look to the NDP to put in place that national energy strategy in co-operation with the provinces, which will bring those value-added jobs and clean-energy jobs for all Canadians.
:
Mr. Speaker, it is my pleasure today to have the opportunity to clearly lay out the absurdity of the NDP's position on the Keystone XL pipeline, in general, and resource development. I am hoping we may finally receive a clear and consistent statement from the NDP on its anti-development agenda. Its policy chaos and political opportunism of the last two years has been incredibly difficult for me and Canadians to follow.
Let me begin by stating our government's position on Keystone XL. We support this important project because it will create hundreds of thousands of jobs for Canadians and billions in economic growth. It is an important project for the Canadian economy and, as the U.S. State Department confirmed, it will not significantly exacerbate the problem of GHG emissions. The fact is that pipelines are the safest method to transport oil, with a safety record of over 99.999%. We have taken action to further improve this record. We have doubled the number of annual audits, increased pipeline inspections by 50% and imposed strict fines for Canadians who break our strong environmental protections. We are also requiring that companies operating a major pipeline in Canada demonstrate $1 billion in financial capacity, to ensure they have the ability to clean up after any spill.
Our government believes we must develop our economy while protecting the environment. I am proud to say we are doing just that. This is what Canadians want and what our government is delivering. It is no wonder that a broad coalition of Canadian political leaders, industry and business groups, as well as labour unions, has formed to support our plan and the Keystone XL pipeline.
The problem is that the NDP has refused to listen to anyone who disagrees with its position. It is, not surprisingly, ignoring the thousands of businesses across Canada that support Keystone XL and the voices of Canadian business in Canada, such as the Canadian Chamber of Commerce and the Council of Chief Executives.
They also will not listen to the elected leaders of provincial governments across Canada. The provinces of Alberta, British Columbia and Saskatchewan have shown strong support for this project. They have been sharply critical of the NDP and its anti-development agenda. The Premier of Saskatchewan went so far as to say that the NDP leader was betraying Canadian interests. The Premier of Alberta agreed, berating the NDP leader for not showing national leadership. The NDP will not even listen to its own provincial cousins, who have also supported this project. The leader of the Saskatchewan NDP was clear when he said, “...I support the Keystone XL pipeline...”.
Of course, the NDP has also decided to ignore the labour unions that it claims to represent in this chamber. Buzz Hargrove, the former member of the Canadian Auto Workers, who was a leader in the labour movement for decades, chastised the NDP for its anti-Keystone position. I remind members opposite that he said we should not stop the expansion of the work in the oil sands, nor Keystone XL. We need the jobs.
It is not just Buzz Hargrove who opposes the NDP's position. Canadian labour unions, such as Canada's building trades, the United Association of Journeymen and Apprentices of the Plumbing and Pipefitting Industry of the USA and Canada, the General International Union of Operating Engineers, the Laborers' International Union of North America, the International Brotherhood of Teamsters and the International Brotherhood of Electrical Workers know that the future prosperity for Canadian families lies with the responsible development of our natural resources. That is why they publicly support major energy infrastructure projects.
Chris Smillie, the policy director for Canada's building trades union, which represents more than 450,000 Canadians, concluded that the NDP appears to be “more of a fringe group still rather than the official Opposition” and that:
The NDP would be very bad for workers and the entire Canadian economy. They haven't risen to the task.
Finally, the NDP will not even listen to the science. When an over 2,000 page technical scientific report on Keystone XL, done by the U.S. State Department, was released, the NDP dismissed it. Instead, the deputy leader of the NDP dismissed its findings without even a cursory review.
This report concluded that:
...approval or denial of the proposed Project is unlikely to have a substantial impact on the rate of development in the oil sands, or on the amount of heavy crude oil refined in the Gulf Coast area.”
It added that its denial would therefore have a negligible impact on emissions.
The common theme in the support given by all these organizations and people across Canada for Keystone XL is the thousands of jobs and the economic growth this pipeline would create. Canada's natural resource sector currently contributes to the employment of 1.8 million Canadians, almost 20% of Canadian jobs.
Canada is a leader in mining, with over 50% of equity for mining projects raised in Canada. We have the third-largest reserves of oil in the world and we are the second-largest producer of uranium. Whether it is natural gas, metals, minerals, or forestry, Canada punches above its weight. This is something all Canadians should be proud of.
Unfortunately, the NDP has never shown any pride in these facts. It is hard to find a time when New Democrats say anything in support of Canadian industry. The NDP wants to shut down the employment of tens of thousands of Canadians in Canada's nuclear industry. These are highly skilled positions that pay well and contribute significantly to Canada's engineering and scientific workforce.
In response to a 2008 Greenpeace survey, the NDP said:
Canada's New Democrats do not support nuclear energy. Nuclear energy is dangerous, prohibitively expensive and far from a solution to climate change.
Or to quote the leader of the NDP:
I want to be very clear. The NDP is opposed to any new nuclear infrastructure in Canada.
New Democrats are also opposed to the use of shale gas in Canada, even though the decision to pursue its development is solely under the purview of the provinces. In their ideological opposition to resource development, they do not even respect provincial jurisdiction.
New Democrats cannot even unite to support the forestry sector, which employs hundreds of thousands of Canadians. The member for stated that we should not “...be talking about a better way to cut down more trees and build with material that begins to rot the moment you use it.”
Finally, the NDP's opposition to the oil sands could not be clearer. Famously, the NDP leader says that the oil sands are contributing to Dutch disease by hollowing out Canada's manufacturing sector, even though this industry is employing hundreds of thousands of Canadians across this country. In Ontario alone, there are 500 manufacturing companies that are supplying the oil sands.
The Canadian Manufacturers and Exporters say:
The fact is that all Canadians stand to benefit in very real ways from the wealth created by these developments....
If I had the choice to listen to the NDP or the very organization that supports Canadian manufacturers, I know where I would stand.
Economists across the country, including our former governor of the Bank of Canada, have all debunked this myth. The NDP, though, refuses to listen. This blatant disregard for the benefit of the oil sands is not surprising. The NDP's former environment critic called for a moratorium on oil sands development. The leader of the NDP personally wrote the foreword to a book by Andrew Nikiforuk, praising the author's insights, which included shutting down the oil sands by 2030 and imposing a massive carbon tax to discourage their use.
The NDP's opposition to the oil sands is even more apparent when the topic of pipelines is discussed. The NDP has opposed every pipeline that is currently before a review panel, prior to hearing the evidence, and many that are not even at the stage of a review panel. For a party that says it respects science, it would appear that it does not at all.
The NDP is opposed to the northern gateway without hearing from an expert panel on the safety of the pipeline. It will not even wait for an application from Kinder Morgan for its Trans Mountain pipeline before coming out as firmly opposed to the project.
On Keystone XL, New Democrats are not content to argue against Canadian jobs in Canada; they must also go to our largest trading partner and argue against Canada. They sent their deputy leader to Washington, D.C., to argue against Canadian jobs, followed shortly afterward by the leader of the NDP.
In fact, following the meeting with House minority leader Nancy Pelosi, the minority leader said that Canadians are opposed to pipelines. I can only imagine what the leader of the NDP told her in that meeting. I would have hoped that as a country we could keep our disputes internal; instead, New Democrats have decided to argue against Canadian interests to our most important ally and trading partner in the U.S.
Finally, I would like to touch on the topic of refineries, as New Democrats have talked often about this subject.
Our government is, of course, very supportive of the refining sector. We have lowered taxes for these companies, just as we have lowered taxes for companies across Canada. We are also supportive in principle of a pipeline going from western Canada to the east in order to provide low-cost Canadian crude.
Canada is a refining powerhouse, refining more oil than we use in Canada. We currently export more than 400,000 barrels of refined product to the United States every day. Canadians are justifiably proud of their refinery sector.
The New Democrats, though, have a completely incoherent position when it comes to refineries and building pipelines to the east coast.
First, they want to institute a job-killing carbon tax that would hit refineries the hardest of any industry in Canada. Their 2011 election platform planned to raise over $21 billion from their carbon scheme. In fact, the leader of the NDP is counting on $21 billion in revenue from his carbon tax, the centrepiece of his economic plan. To win the NDP leadership, the leader of the NDP promised to go beyond the carbon scheme, but that is only the beginning of the NDP's policy incoherence on refineries.
New Democrats support refineries, but not the pipelines that would transport the crude oil to them. They say they do not want to subsidize the oil and gas industry, yet the only way to institute their refinery plans is to use government tax dollars to build refineries. Of course, refineries are owned by oil and gas companies. I am sure the members opposite are shocked to hear this.
Finally, New Democrats say they support pipelines going east in order to support refinery jobs in eastern Canada, yet they are opposed to line 9B, the only pipeline that has been officially proposed to do precisely that.
The leader of the NDP has been very clear in saying, and I will translate, “We cannot reverse the flow of the Enbridge Line 9 pipeline”. Through this reckless position, New Democrats are putting 500 refinery jobs in Lévis in jeopardy.
To quote the head of Valero, which owns the refinery in Lévis, and again I translate, “The project aimed to reverse the flow of the pipeline between Montreal and Sarnia is a necessity, and its failure would put into question future investment at the Lévis refinery, which could lead to its eventual closure”.
For a party that claims to support a pipeline going east and refineries, the NDP has a strange way of showing it. With friends like that, who needs enemies?
Our government will continue to support responsible resource development to create jobs and economic growth across Canada. There are over $650 billion worth of projects being proposed in Canada over the next 10 years. These projects would create thousands of jobs and billions of dollars in economic growth. We must seize the opportunity before it is lost to us, but we must do so while protecting the environment. Our government's plan on responsible resource development provides a balance of environmental protection and economic development. The NDP's plan will only kill Canadian jobs and economic growth.
In conclusion, our government will continue to aggressively defend our interests on the international scene and seek to have Keystone XL approved. We will not apologize for defending Canadian jobs and we can only hope that the NDP will do the same.
:
Mr. Speaker, I am very pleased to rise and attempt to contribute to this debate on an NDP motion because the Liberal Party recognizes the importance of a national energy strategy. As Alberta's Premier Redford said, it is important for our economy, for job creation and for the future of our middle class.
[English]
The NDP motion states:
That, in the opinion of the House, the Keystone XL pipeline would intensify the export of unprocessed raw bitumen and would export more than 40,000 well-paying Canadian jobs, and is therefore not in Canada’s best interest.
I do not think Canadians would be surprised by this motion from the NDP, but they will be disappointed, yet again, by a lack of commitment to natural resources development and, most important, the creation of economic opportunity.
It is nice to know that some people are watching our debate today. The canadian building trades Council has tweeted, “Cnda needs to get the #keystone debte right. Did u know almost 2/3 of bitumen will be upgraded in facilities built by skild trades workrs?”
First, the amount of production from the oil sands and from Alberta generally is well above the capacity we are going to see from the existing pipelines. Even if Keystone is built, even if, as I hope is Energy East is built, obviously following the proper environmental regulations and processes, there is still excess capacity.
More important, what the building trades council is saying is that much of this bitumen will be upgraded. Moreover, what the NDP seems to fail to comprehend is that even if we have more upgrading and refining in Alberta or in Canada generally, the product is not all going to be consumed in Alberta or even in the rest of the country. It is going to have to be moved somehow. Why would the New Democrats be opposed to the best means available to move the product, which obviously is pipelines?
That is the point and that is where the NDP motion today makes absolutely no sense. The NDP members seem to be conflicted about what their reason for this resolution is. If it is actually because they want to create jobs in Canada, it is illogical economically. If it is actually about the environment, it is not realistic because we know that more and more oil these days is being moved by train, so there are alternatives.
Nevertheless, first, it is important to get Keystone built because pipelines are the best way to do this and the safest way to move oil, in my opinion. Second, it is important that we get access to that U.S. market and other markets, which is why Energy East is so important.
This misguided motion really fails to recognize the importance of our energy sector. It fails to address the need to get our natural resources to those markets about which I have talked.
It is disappointing to see the NDP approach in a week when we witnessed the premiers of British Columbia and Alberta coming together and working together to advance a Canadian energy strategy, which will help Canada develop its resources responsibly, while promoting clean energy and reducing carbon emissions. Those should be our objectives.
Unfortunately, there is an absence of this kind of leadership in Ottawa, both within the NDP and within the Conservative government. The has failed to advance strong environmental policy in our country, including transparent oversights, tougher penalties and a price on carbon pollution. Even though Conservatives talked about it in previous elections, they have not moved on it at all.
This inaction has had serious consequences for our environment, our reputation internationally and our economy. It is having serious consequences right now in terms of creating the social licence in the U.S. to get the approval that Keystone requires. That is letting down the producers and letting down Canadians across the country, particularly in the province of Alberta and also in Saskatchewan. If we do not demonstrate to the world that we as a country are serious about the environment, we will find it harder and harder to export our resources to global markets.
If we follow the NDP approach, we would end up moving backward, instead of building a better future for our middle class.
Once again, the NDP is attempting to score cheap political points with a motion condemning the construction of a vital piece of energy infrastructure, despite the fact that it has come out in support of similar projects in other parts of the country.
The Liberal Party supports building pipelines to move our energy resources to market. These projects cannot ignore very serious concerns about aboriginal rights, responsible development and strong, environmental protections. Instead of opposing energy development, foreign investment and job creation, in my view, the NDP should engaging in the discussion on a national energy strategy, which would provide stable growth in an environmentally responsible fashion. That is the challenge. That is the balance that has to be achieved here.
The NDP motion instead provides clear evidence that its party does not recognize the importance of Alberta and all of western Canada to our shared future. The NDP argues that the Keystone XL project should be rejected because it would increase the development of the oil sands. In fact, its candidate in Toronto Centre has said “we need some kind of moratorium on further development” on the oil sands. I hope my hon. colleagues will be commenting on whether they agree with that point of view. I hope I will have a chance to ask them about that during the questions and comments on their speeches.
To me, that is not a realistic or responsible approach. The fact is that if we listen to people who are experts on energy internationally, they will say that whether we like it or not, we will consume petroleum products for decades to come. Should we be trying to deal with that and reduce the emissions from those products, both in their production and consumption? Absolutely. Should we be moving to renewables? Absolutely. However, the fact is that we are going to use them and it is going to take a long time to move away from them. We should move quickly to do the things I just described to help our environment, but it does not happen overnight.
If the NDP is arguing this in terms of rejecting the project because it will increase development, at the same time we have its party leader wholeheartedly supporting the Energy East pipeline, which would move more oil from the oil sands to refineries in eastern Canada and for export abroad than Keystone would. If it is really about emissions, it does not make any sense. The New Democrats are doing this because of the environment, which they were arguing as part their argument and which is a contradictory argument that it is an element of what they are saying. It does not hold water in view of the position in relation to Energy East.
In fact, on August 1, the NDP energy critic and the mover of today's motion, said that the Trans-Canada Energy East pipeline was a “win-win” for Canada . What is fascinating about the NDP position is that Energy East has projected to increase oil sands development 30% more than Keystone XL would do. It is 1.1 million barrels per day versus 830,000 barrels per day. It is not logical.
Someone has to ask how serious this motion is. It looks like a typical, hypocritical move from a party that has difficulty being consistent on the big issues. Just like the Conservatives, the NDP leader and his party do not understand that the job of the is to open up markets abroad for Canadian resources, help create Canadian jobs and help create a responsible and sustainable way to get those resources to those markets.
Even the NDP leader's provincial counterparts do not support his position on Keystone. We know the history of the NDP in Saskatchewan is deep and rich, and I respect that. In September, Saskatchewan NDP leader Cam Broten soundly rejected the federal party's stance on the pipeline and noted that approval of the Keystone XL project was in the best interests of Saskatchewan.
This motion also reminds us that, in the view of the NDP, a vital part of our economy is a disease, effectively. That is unfortunate.
When our Liberal leader was in Washington recently, he told an audience, an audience actually of American liberals, that we in this party support Keystone XL. We support Keystone, because having examined the facts and accepted the judgment of the National Energy Board, we know that it is in the national interest.
It would not eliminate all our economic problems, as its most ardent supporters might suggest, nor would it precipitate the end of the world as we know it, as its most vocal opponents contend. On balance, it would create jobs and growth, strengthen our ties with the world's most important market, and generate wealth and jobs. It would offer much-needed flexibility in the constrained continental energy delivery system. Most of all, it would be in keeping with what I believe is the fundamental role of the Government of Canada: to open up markets abroad for Canadian resources and thereby create jobs for Canadians and help provide better lives for our people, which is what we are here for. It would help create responsible and sustainable ways to get those resources to those markets.
The NDP approach is to oppose this project, which is akin to opposing the development of our Canadian economy. That is not leadership.
Neither is the Conservatives' approach, though. Whether it is the bullying around Keystone and northern gateway with their one-sided approach to regulation in Bill C-38 or their demonization of people who care about the environment, the message from this right-wing government is clear: This is a black-and-white, us-versus-them world, and one is either with us or against us; we are not going to take no for an answer.
That is not realistic.
In his own words, the “couldn't care less” what Canadians think.
After eight years, here is what the so-called friendliest government the Canadian energy industry has ever had has accomplished. We are further than ever from a sensible policy to reduce carbon pollution. The government has failed to move the yardstick on one of the most important infrastructure projects of our generation, the Keystone XL pipeline. It has needlessly antagonized our closest friend and most important market. It has failed to gain access to the growing markets of the Asia-Pacific region.
It is time that both the Conservatives and the NDP got behind projects like Keystone XL and stopped acting like Keystone Kops.
:
Mr. Speaker, I would like to begin by saying that I will be sharing my time with my colleague and friend from .
We experienced this in Quebec: we stripped our land of its natural resources and shipped them to other countries as quickly as we could. Rip it, strip it and send it so others can build bridges and all sorts of things.
We experienced this. At some point, we realized that it was not a brilliant approach and we learned our lesson.
Unfortunately, the Conservatives have not learned from the past or from others. I believe they have not learned because they do not want to. They do not want to know, as we say. They have their blinkers on and they just keep going, without caring about anything and without looking past their noses.
As the said recently, they don't care.
[English]
However, the New Democrats care. That is why we have presented this motion today, the motion presented by my colleague, the member for , whose personal commitment to this issue I really admire.
[Translation]
There are two main problems with the Keystone project. First, it is a mismanagement of our natural resources and our economy and, in a nutshell, it is a mismanagement of our future.
The 's government is obsessed with natural resource development, often to the detriment of other sectors of our economy. All it wants to do is export our crude oil.
As the premier of Alberta said, moving crude oil is like destroying a plot of land, selling it and then handing the farm down to the next generation. If we want to properly develop the Alberta oil sands, we have to meet three basic conditions. First, we have to do it in an intelligent way. That means that we have to consider our long-term interests, which, I believe—and this is very important—include protecting our environment and everything that sustains us. The third condition is that we have to think about the future, especially that time when the oil will be gone.
What the government is proposing does not meet any of these three conditions. I would like to quote Gil McGowan, president of the Alberta Federation of Labour. At the National Energy Board hearings on the TransCanada Keystone project held in December 2007, he said:
What we fear is that the consequence of this particular action will be to deny Albertans literally thousands of high-paying, long-term jobs in upgraders and refineries....[E]very barrel of bitumen shipped down the Keystone pipeline or other similar proposed pipelines is a barrel of oil no longer available for value-added production and job creation here in Alberta.
However, the government is stubbornly insisting on going forward with this project. With such an approach, it is not surprising that Canada now has a trade deficit even though we had a surplus when the Conservatives took office.
I have other important concerns. In 2010, the oil sands accounted for 7% of Canada's greenhouse gas emissions. That is expected to rise to 14% by 2020.
Like the Liberal governments before them, the Conservatives—other than one leader who never became Prime Minister—do not take climate change seriously. However, there comes a point where we must do just that.
Since 2006, the government has been promising to regulate emissions from the oil and gas sectors. If I am not mistaken, it is now 2013. Nothing has been done for seven years. Is this because of ill will or incompetence? Seven years seems like a long time to wait to resolve such an important issue. Worse yet, the Conservatives think that others are not aware of what is happening. They are a bit like children who believe that they can behave however they like and still get whatever they want. Unfortunately, that is not how things work.
We know that President Obama has serious doubts. Although he says so in a very diplomatic fashion, the reason for his doubts is quite clear. President Obama said that he would evaluate the project based on whether or not it will significantly contribute to carbon in our atmosphere. He added that there is no doubt that Canada, at the source, could potentially be doing more to mitigate carbon release.
What was our 's response? He said that he would not take no for an answer. We have to wonder what he will do. Maybe he will close the embassy in Washington. The Prime Minister does love to close embassies. He is looking to set an all-time record for closing embassies, on top of his records for issuing gag orders and muzzling scientists, to name just two. Maybe he will send a few important ministers to Washington to make a lot of noise, as he likes to do. However, he will do absolutely nothing to address the root cause of the problem, which is his poor environmental management.
[English]
We know that colleagues on the other side are very skeptical of root causes. We heard a few months ago that the root cause of terrorism was terrorists. Well, I think that for the Conservative government, the root cause of climate change is probably climate. I think it should take the issue a bit more seriously.
[Translation]
That is all typical of this government's attitude. Make a whole lot of noise, but do not take any meaningful action. That is also typical of the Conservatives' short-sighted approach.
If we want to manage our natural resources properly, we have to think about the environment and climate change; we have to think about the future of Canadians and younger generations. We have to think about what we will do after, what we will do to break our dependence on fossil fuels. We need to focus more on green technologies, and we need to offer high-quality jobs here in Canada, not elsewhere.
I do not think that the members on the other side of the House are paying attention to what I am saying or what my colleagues in the official opposition have to say about this. That is too bad, and it all comes down to their attitude, which is that it does not matter what happens as long as it is not in their lifetime.
Unfortunately, this government's attitude is already having disastrous consequences for this planet. It is people like you and me who are paying the price, in Canada and around the world.
:
Mr. Speaker, what we are debating today is not just about one project. It is about leadership, policy and the future of our country.
Make no mistake, what we are talking about is how to responsibly develop our natural resources. This is not a new debate in this country. For many years, we have talked about the whole myth of Canadians being hewers of wood and drawers of water, and the notion that we could only take our raw materials and send them abroad.
Clearly that kind of approach is the past. What we are looking for is the future. The Conservatives are clearly living in the past. We know that. There is no question. In fact, they do not even apologize for it. They just talk about getting this raw material out, sending it to someone else, and that is fine. Rip it, strip it and send it, as they say.
We are saying that is not responsible development. We have heard that not only from people who look at the need for value added to create more jobs but also from people who are looking at what is happening in terms of the effects of this rapid development. Let us look at scientist Dr. Schindler's work on the effects of the rapid development, which was commissioned by the current government. It is about responsible development.
The government is in the past. Rip it, strip it and send it. We know where it sits.
In fact it was very bizarre when most recently our was in New York, not addressing the UN General Assembly as all responsible world leaders who were in New York were doing. Let us remember, our was in New York when the General Assembly was sitting and most world leaders were speaking to the General Assembly about the vision of their country, dealing with the major issues, be it on Syria or be it on climate change.
Our did not show up even though he was in town. He was addressing the Canadian American Business Council, which is a good group to speak to. We spoke to that group when I travelled with our leader to Washington. He was speaking to them about the need to push this project.
Now what is interesting about that is that most people thought our government was being hosted by the Canadian American Business Council. It turns out that taxpayers paid for this audience, $65,000 of taxpayers' money so that the could have an audience to push his agenda.
It was quite shocking. This information got out because the bill was sent by mistake to CTV as opposed to the embassy, but that is kind of how these guys manage things. It was $6,500 for coffee, by the way. I thought it was outrageous enough to have a $16 juice, but this was $6,500 for coffee.
This was the approach the government took, but we know what it is about. We know it is the past. It is the old idea of not being able to do value added, so it will just rip it, strip it and send it, and that is the vision.
This debate is also about the other vision for development in this country. We believe we should have value added. We believe that we should take the resources that we have been given, our future for future generations, and be responsible with it. It is not just about hurrying it out the door and getting it over the border. It is about actually doing value added.
That is why New Democrats are putting this issue on the table. We agree with those who say we should look at the effect of the pipeline for Canadian workers and what it means in terms of the future. The future means looking at beyond a year or two years or three years. It means looking at it over a period of time to see the effects of these kinds of projects on our economy and on our environment. Our leader has been straightforward in saying that we need sustainable development, which is not the case with the government's agenda.
What is shocking is the Liberal Party. The Liberal Party would have us believe that it is concerned about the environment and responsible development. The Liberals jettisoned that. In fact what happened, which was shocking for many of us, is that when the went to Washington, he shocked a lot of people when he said that he was not going to criticize the policies of the present government. He did not believe that was his role, and I will come back to that later. Then he went on to advocate for and promote the Conservative government's agenda on the pipeline.
What was strange about that was that he was saying on the one hand, “I will not criticize the government abroad”, and I think we will understand why that is a problem in a second, but then he went on to say how he supported the government's agenda on this pipeline project.
Many people were quite confused. They thought the Liberal Party still believed in sustainable development or some notion of responsible development, and that when it came to this new Liberal leader, the Liberals would actually take on the Conservatives on irresponsible development. However, he did not do that. It was surprising, because he then criticized our leader for going to Washington to explain our policies of responsible development.
I was with our leader when we met with business leaders and members of the administration. We talked very frankly about the need to have good relationships and about the need to have responsible development, and they quite agreed. In the United States right now, this topic is being debated very robustly. As a responsible opposition, we are debating it here today because we think it is important.
Our visit to Washington was to say how we disagreed fundamentally with the government on the environment in particular. When the government decided to rip out environmental assessments at the federal level, not to participate responsibly in talks on climate change and not to follow up with commitments, we believed it was our responsibility as the responsible official opposition to let people know, especially our friends in the United States, our closest ally, what our vision was, and we got a very warm reception from them.
It was confusing for many people when we heard the leader of the Liberal Party saying that we should not do that when we go abroad. That is not leadership. Leadership is when we talk to our friends and allies about our vision.
I will give some detail. We were talking about the need for value added here in Canada. They understood that. Why? In the United States, and most government members probably do not know this, it is prohibited for states to export crude. They do not allow the export of crude, in other words, unrefined petroleum, in the United States, with the exception of Alaska. If we think about that, it is the exact opposite of our government. Our government encourages the export of unrefined and raw materials that are not value added. The Conservatives think it is great. They say we should go ahead and do it. We send our raw materials down to the states. They will refine it and we will buy it back. It is not responsible. It is the past, and we need to look to the future.
However, when the Liberal leader went to Washington, he said that looking at this particular project, it was a good project and it would create jobs. He actually said it would create jobs in the United States, so it really was confusing for Canadians. Whose jobs is he promoting, Canadian jobs or American jobs? I understand Conservatives do not worry about that, but when the leader of the Liberal Party goes to Washington and starts promoting a project that he acknowledges will create American jobs, we have to wonder what kind of vision he has.
He went further. He dismissed any criticism of Keystone as political games. When the leader of the Liberal Party promotes the Conservative agenda in Washington and suggests that outsourcing jobs is good for Canada, we have to challenge that vision.
The notion he argues that official opposition or opposition leaders should not go to Washington to critique the government is so offside. Before President Obama was president of the United States, he went on a world tour to say how he was different from then-sitting President Bush.
If we are to have responsible leadership in this country, we need a responsible leader. We have a responsible leader in this party. I would challenge anyone to look at our vision, compare it to the vision of the past, of the Conservatives, or the confused vision of the Liberal Party and decide who is serving Canada's interest. I would argue it is the NDP, and that is why we brought the motion to the House for debate today.
:
Mr. Speaker, I will be splitting my time with the hard-working member for
I am pleased to have an opportunity to respond to the motion by the member for . As members know, global economic forces are undergoing a fundamental shift, and energy is a critical part of that transformation. Canada is being confronted by both daunting challenges and extraordinary opportunities for energy resources. Our sole customer, the United States, is now destined to become the world's top energy producer. Other potential international buyers of Canadian energy, until now, have been out of the reach of our energy producers.
This disadvantage is about to change. The Government of Canada is taking action, responsibly and safely, to propel Canada's energy sector into a new era of sustainable prosperity and security and a brighter, more promising economic future for all Canadians, their children, and their grandchildren.
Here is why our energy sector will continue to prosper.
The International Energy Agency predicts that global energy demand will rise by more than a third within the next 25 years. More than 95% of the expected increase in energy demand will come from non-OECD countries, with China and India leading the way. The IEA also predicts that 25 years from now, fossil fuels will continue to be the world's dominant source of energy, accounting for more than 60% of global energy demand. People in countries like China, Japan, South Korea and India know full well the extent of the resources that we have here in Canada, and the obvious practical advantages of shipping from our west coast. They also understand that Canada is a reliable source of energy in a frequently unstable world.
Clearly, the time is right for both producer and consumer. We need to diversify our markets, and they need to diversify their sources of supply. As a result, the international demand for Canadian energy will only grow. Canada cannot stand still and miss these opportunities. We cannot and we will not.
Throughout the world, energy security is the common coin for industrial development and is fundamental to the growth and stability of nations. Energy security supports political stability and economic prosperity. The practical question of ensuring energy security on a global basis is a growing challenge, but one for which Canada is uniquely equipped to play a key role. A key point to remember about energy security is that only 20% of the world's oil reserves are not controlled by state companies, and 60% of that free enterprise oil is located right here in Canada.
As I have indicated, by the end of this decade the U.S. is expected to be the world's biggest producer of oil. However, it is expected that the United States will still need to import about 5.5 million barrels a day. Canada has more than ample resources to fill this need. Canada has the third-largest proven oil reserves in the world, some 172 billion barrels, about 169 billion of which are in the oil sands. As extraction technologies advance, the oil sands could yield nearly twice that much, well over 300 billion barrels. That would make the oil sands the biggest oil reserves in the world.
The expansion and diversification of energy markets is a priority of the Government of Canada because it is crucial to jobs and economic growth. Natural resources deployment directly and indirectly supports 1.8 million jobs across our great nation, contributes close to 20% of our nominal GDP, and generates billions of dollars in tax revenue and royalties to help fund government services to Canadians.
Canada's energy sector has proposals to build and improve pipelines west, south, and east to ensure that we have customers for our energy products. However, to preserve and grow Canada jobs and revenues for social programs, we must bring our resources to international markets and the faster-growing economies in the world. That means building pipelines.
The proposed Keystone XL pipeline would feed western Canadian heavy crude to refineries on the U.S. Gulf Coast—refineries, by the way, that currently rely on Mexico and Venezuela for feedstock.
In addition to Keystone XL, two pipelines have been proposed to deliver crude from western Canada to ports on our west coast for distribution to markets on both sides of the Pacific. We are rapidly developing the infrastructure needed to service these markets. No fewer than seven liquefied natural gas export terminals have been proposed for the west coast. Three of these have been granted the long-term export licences they need to deliver LNG to markets in Asia. The first could be in operation as early 2015.
There are also proposals to adapt two existing pipelines to bring oil from western Canada to eastern Canada for refining and potential export.
Pipelines moving oil from Alberta to Quebec to New Brunswick would be among the most expansive and ambitious stretches of energy infrastructure in the entire world, and they would contribute greatly to the energy security of Canada and all of North America.
The Government of Canada is committed to ensuring the pipeline projects proceed in a manner that is environmentally responsible, economically feasible, and socially beneficial. We have the resources and we are determined to reach out to other nations, both as markets for Canadian energy and as partners in responsible energy development.
Our role as a responsible developer of energy is well known, and it is reflected in our government's commitment to the environment and to creating an opportunity for prosperity for Canadians in every region of the country.
Our approach is in sharp contrast to the NDP. While we support the responsible growth for our energy resources in an environmentally responsible way, the NDP has opposed every effort to expand our markets and create jobs for Canadians.
While we go overseas to fight for Canadian interests, jobs, and economic growth, the NDP sends its leader and deputy leader to Washington, D.C., to argue against those jobs.
While our government has listened to Canadians employed in our energy sector from coast to coast to coast, the NDP has ignored and argued against these jobs as somehow detrimental to Canadians.
We have nothing to learn from New Democrats when it comes to expanding our markets and to expanding our opportunities for Canadian workers. We will continue to fight for Canadian jobs while the NDP, with this motion today, is fighting to stop the development of important and critical infrastructure projects for our nation.
:
Mr. Speaker, our Conservative government is squarely focused on what matters most to Canadians, and that is jobs and economic growth. The NDP has shown clearly, with the motion it has brought before us today, that it, in fact, is not.
This motion is a silly motion. I do not like using language like that, but I will explain my statement in a minute. It is one of the silliest motions I have ever seen brought to the House of Commons. I will read the motion, and then I will explain why. It is just so ill thought out. In fact, it has not really been thought out. They brought it, obviously, at the spur of the moment, without really thinking about the consequences of what they have in the motion.
This motion was brought by the NDP member for , and it says:
That, in the opinion of the House, the Keystone XL pipeline would intensify the export of unprocessed raw bitumen and would export more than 40,000 well-paying Canadian jobs, and is therefore not in Canada’s best interest.
I just want to talk a little bit about what that motion says. It makes no sense. First of all, the New Democrats are saying that we should not build this pipeline to get new refining capacity in Canada and more jobs.
Here is the reality. Right now, we refine more crude oil than we need for Canadian use. In other words, we have to export part of the gasoline, diesel, and so on that we already refine in Canada, because there is already an overcapacity of refining. That is okay. I do not have a problem with that. If business determines that it is economical to refine more, then fine, but it certainly should not be based on restrictions that some future NDP government would put in place.
Here is what they are proposing, and this is why it is so silly that it is almost beyond imagination. They are saying to build these refineries. What are they going to do with the diesel, gasoline, and other products they produce in these refineries? What are they going to do with them? Are they going to build big disposal pits and somehow put this gasoline and diesel in these disposal pits? They are going to have to do something with it if they are going to produce a product that cannot be used.
They are saying to not build the pipeline so that we can refine more in Canada. If they produce more gasoline and diesel that is not going to be used in Canada and that has to be exported, how are they going to export the diesel and gasoline? They are going to have to have a pipeline. It is simply not economical to ship gasoline and diesel from refineries, for example, in the Edmonton area or anywhere other than very close to the border. It just does not make sense to ship it to market other than by pipeline.
Pipeline is needed. There is no doubt about that either way, whether we are shipping raw bitumen, upgraded oil, or products refined in Canada. When a barrel of oil is refined, it creates roughly 30 to 35 different products that have to be exported. If we are going to refine in Canada and refine more than we use, we are going to need more pipeline capacity, because we would be shipping such a large number of products, roughly 35. We would have to have a pipeline system that could ship those products.
We can certainly block a pipeline off and ship different products at different times down the same pipeline, but we can only do that to a certain point. Some of those products have to be kept so clear that, in fact, it cannot be done that way. What the NDP is proposing simply cannot be done, unless we build more pipelines.
Let us look at this in a realistic way. I almost feel like it is a mistake to debate a motion that makes so little sense, but I am going to go ahead and make some other comments that I think are worth making, whether the motion makes sense or not.
As we know, natural resources are a huge part of the Canadian economy. When we take the direct and indirect impact into account, the natural resources sector represents 15% of Canada's GDP, and more important, I would suggest, more than 50% of Canada's exports. That is huge.
When we include the supply chain that provides goods and services to the natural resources sector, natural resources account for nearly 20% of Canada's GDP, or almost one-fifth of our total GDP. Energy resources are a huge part of that equation.
First and foremost, Canada is a trading nation. That is the reality. The NDP does not want to see that. It has opposed every trade deal we have brought to the House. However, the reality is that Canada is a trading nation, and the NDP cannot change that. Frankly, if it did change that, it would mean that a huge percentage of the Canadian workforce would be out of jobs.
We are a trading nation. Right now, 99% of Canada's crude oil exports go to the United States, which is where the Keystone XL pipeline would go, and 100% of our natural gas exports go to the United States. However, as the U.S. becomes more self-sufficient, Canada will need to diversify its export markets. That is why our government is aggressively pursuing new trade and investment opportunities for Canada in fast-growing markets around the world, including the Asia-Pacific.
That is why Canada must build and expand the infrastructure needed to move our product to tidewater for export as well as to the American market. We cannot continue to rely upon one market. It will be a declining market, because the Americans are producing more. They are increasing their domestic oil production at a rapid pace due to new fracking technologies, many of which have been developed right here in Canada.
Expanding and diversifying our energy markets is a top priority of the Government of Canada. Canada's energy sector currently has proposals to build and improve pipelines to the west, to the south, and to the east to ensure that we have customers for our energy products.
We strongly support the Keystone XL project to transport Canadian crude to the United States, and I have explained why that is necessary. It would create jobs, provide economic growth, and ensure energy security for both countries.
Canada is already the largest oil supplier to the United States. In fact, in 2012, we delivered three million barrels of crude oil and petroleum products per day. That is twice as much as the second-largest supplier of crude oil and petroleum products to the United States, which is Saudi Arabia. That is a huge change. Canada provided twice as much as the second-largest supplier to the United States and more than Saudi Arabia and Venezuela combined.
Even with the International Energy Agency's forecast of rapid growth in American production, the United States will still need to import 3.4 million barrels of crude oil per day in 2035 to keep up with the projected increase in demand. It is clear that the need for Canadian oil will still be there in the United States, but we will have to be competitive.
The Keystone XL would help meet that demand. We simply cannot ignore that it is needed. Our government will continue with that project. There are many good reasons for that.
The NDP, we know, is against trade. It is against development of so many kinds. Its former environment critic called for a moratorium on oil sands development, yet now, just a year or so later, the NDP wants more refineries to process oil sands crude. It wanted to stop the production, but now it wants refineries to process oil sands crude. The NDP is really changing its position on issues on a constant basis. That is something I do not think lends it credibility.
There is no doubt in my mind that New Democrats demonstrate again and again, with the position they take on resource development, that they are simply not ready to govern, and I do not believe that they ever will be.
:
Mr. Speaker, before I get into the issues I wanted to raise here, I want to say that I will be splitting my time with my friend from Western Arctic.
I will wait for Hansard to get the exact quote from my friend from Alberta, but it was something to the effect that the only real jobs that get created in oil and gas development are on the mining and pipeline construction side. That is fascinating, because he should go to some of the refineries around his riding in Alberta and some of the LNG-proposed terminals in British Columbia and say that they are not real jobs and that the only good ones are on the mining side.
It is fascinating to hear the Conservatives talk about what real jobs are and their sudden new-found love of science. They just found religion on science. For years when we talked about climate change, they said it did not exist, that the scientists were all wrong—those elites who they and the keep talking about. Now when there is some scrap of evidence that supports one part of an argument, they suddenly think science is important.
My friend from Western Arctic can probably talk about some of the science and the implications on real people in the real world, as opposed to the fiction the members of the Flat Earth Society have created for themselves year after year. They do not even believe the science and dark art of economics themselves; they said there was no recession, six months into the last global recession, and produced an austerity budget. So much for believing in facts and science. The entire world recognized we were heading into a global recession. The got up in one of his more sanguine moments and said “Let us have an austerity budget” going into the teeth of a global recession, until he reversed that entirely.
He is also a who has the lucidity to say that the Senate should be abolished and who had some very interesting comments on the mayor of Toronto this morning, as well, that were quite passionate.
Let us talk about Keystone XL. Let us talk about a —
Don't you attack the finance minister. Don't you dare. Little Jimmy is not even here to defend himself.
Mr. Nathan Cullen: Mr. Speaker, I will thank the . I know sometimes he travels abroad and thinks that he is so far away that he has to shout all of his comments back to Canada. However, we are here in the House of Commons, not 15 feet apart. I can hear everything he has to say, and I will look forward to his questions.
The using of a baseball bat for diplomacy, as the has done, has made it more difficult to approve the projects he is hoping to get approved in the United States. In a question and comment earlier to my friends, I asked them to imagine a scenario wherein a U.S. president comes to Canada to an economic forum in Toronto, to speak to the business community and the people of Canada, and when discussing a contentious project, 95% of which was based in Canada, said, “We will not take no for an answer on this project. If Canada says no for legitimate science-based reasons or social justice reasons, we're simply not going to accept it, as the United States of America”. The hue and cry from our , the Canadian people and the foreign affairs minister would be heard throughout the land, because how dare a U.S. president threaten us that way? We will take care of our own domestic affairs.
How about we allow the Americans to do the same thing? I know it helps the newspapers and television stations in Washington to have all the ad revenue coming from the current government and the Government of Alberta, pumping and promoting this project. Ironically, I was at an oil and gas session organized by the first nations in Prince George just a few weeks ago, where the got up and had the audacity and incredibility to say that his government does not promote projects like Keystone or Enbridge northern gateway. The Conservatives do not promote them; rather, they just buy ads for them. They run down to Washington, banging them over the head in New York. They stand in our communities saying, “You have to; we insist.” They change all the laws in order to make the economic and environmental evaluating processes for these projects a sham. They make it a rubber-stamp process. However, the government does not actually promote them.
We know for a fact that this particular project creates jobs in the United States. I met with a Texas congressman who has become a friend. He is a Republican and a decent fellow, who my friends would get along with so well. Back in 2008, we had a nice meeting in Washington. At one point he said, “This whole Keystone thing, let me get it straight. Is your government actually promoting this pipeline?” He asked that because the refineries that would take all of this raw bitumen and upgrade it are based in his constituency. I said, “Yes, Congressman, the Canadian government's current position is to promote this project”. He said, “I want you to take a message home to my Canadian friends. Tell them this. If the roles were reversed and we had the oil sands and y'all had the refineries, it would be over my dead body that we would allow the raw export of our natural wealth to your country to have all the jobs created”—I think he said “y'all”.
The Conservatives now believe that all those refinery and upgrading jobs are not real jobs. They believe that the temporary pipeline jobs are real jobs, that the jobs that happen once are real but those others are not.
That is what the Conservatives just said, verbatim, that those are real jobs. Tell that to the people in the forestry industry, the fishing industry and the mining industry, and anybody who works in an upgrading facility, anybody who works in a plant that takes the natural wealth and endowment of this country and does something with it. Tell them they are not in real jobs.
I think it was actually a salient and transparent moment for the government, because by its policies, that is exactly what it thinks of those jobs that add value to our natural resources. That is what has happened to those jobs under the Conservative government. We have lost 350,000 of those manufacturing and upgrading jobs since the government took office. That is a fact.
The government is entitled to its opinions, but not its own facts. The facts of the matter are that it simply does not care. The government does not think those are real jobs.
The government talks about opening secondary markets and feeding the U.S. market. Let us understand that this is a generational decision. These pipelines are generational. They are not built for 5 or 10 years; they are built for 40, 50 or 60 years, which is also some of the problem.
My friends talk about how safe pipelines are and that they never leak. They should tell that to the people in Kalamazoo. That is what Enbridge said. It has been cited 115 times by the EPA. It said that, scientifically, this pipeline was in trouble, and this Canadian company said, “Never mind; we are just going to keep running the oil through”.
All those people lost their houses and got sick because of a company from this country and because of a government in this country that does not think regulations matter and that thinks industry can just watch itself. The Americans named it properly when they called it the Keystone Kops. That is how Enbridge was running it.
These are the same companies that spill here in Canada as well. There have been 850 spills since 2001; significant spills, not trickles. Often they are found by hunters and trappers out in the bush who notice that they are standing in a bunch of muck out in the muskeg and that is not quite right. What is it? It is oil that has been leaking for who knows how long.
The idea that a Canadian government would stand up for the exporting of 40,000 value-added jobs is anathema to me. It is contrary to Canadian values.
If a government ran on some slogan about standing up for Canada, one would assume it meant standing up for Canada, and that it would stand up for Canada and Canadian jobs. No, that is not what the government does. The numbers do not lie.
To my friends across the way, the comments about a “no-brainer” from their strategic genius leader and “we will not take no for an answer” do not make their case. That sounds tough. The boys in the patch like that. The oil executives like that tough-guy stuff from the fake cowboy across the way who grew up in Toronto. That is what they like. They want the sense that the sheriff is in town and he is going to tell those Yanks what for. That does not work.
It actually makes it harder for the President and the administration to approve the project, because now it looks as if he is being bullied. It does not help when the government denies the existence of climate change, year after year. When it finally accepts the science, it does nothing about it. That is not me saying that; that is the Environment Commissioner saying that the government does not understand the implications of the science in climate change. It does not have any programs that are ready to go, that will actually reduce the carbon footprint.
All of those things make it so much easier to get a no. When Canada flips off at the international community time and time again, it makes things harder, not easier. Maybe the government thinks being tough is what it is all about, but it is not.
Now we know, because it has been our history and it must be our future, that the basic and fundamental principle in this country, which is so rich, so diverse and endowed with so much wealth in our natural resources, should be to respect the environment and to actually treat with first nations for rights, title and accommodation, to gain the social licence at the community level and create the jobs that those resources have created for generations.
However, we have a government that is wedded to an ideology that says that is not its role. That is not the government's role. The government's role is to build the biggest rubber stamp it can and stamp everything that comes in front of it, regardless of what the actual prospects say. When someone comes along and says there is a pipeline that will take 40,000 jobs out of Canada, and Alberta will move from upgrading as much as 60% of the bitumen out of the oil sands down to about a third and dropping, the government's saying it has no part in that conversation is not standing up for Canadian values.
That is not a government standing up for Canada. We need one that will. We need one that understands the balance between the environment and the economy and understands that these resources only happen once. We can only take the oil out of the ground once. By definition, it is not renewable, so let us do it right. Let us have environmental considerations. Let us get the social licence from the community. For heaven's sake, let us create the jobs that have built this country from day one.
:
Mr. Speaker, I am pleased to debate this topic. I live downstream from the oil sands in the Northwest Territories. We have great concerns about those oil sands.
I will start with a little history. In 2007, the oil sands industry in Alberta was looking at massive investment in upgraders. What happened to change that? In Texas, the government of the day in the United States decided that Venezuelan heavy oil coming from the Chavez regime was not appropriate. The Chavez regime agreed with that and we saw the stifling of heavy oil to the Texas refineries. That changed the situation in 2007.
The upgraders then were to be replaced with the heavy oil upgraders in Texas, and the multinationals that ran the Alberta oil industry had no consideration at all for Canada only their bottom line and their corporations, which is what they can only look at, decided to go to Texas. The bitumen could be put into the heavy oil upgraders there.They would not have to invest $60 million to $100 million over 20 or 30 years to build upgraders, modern upgraders that could provide the best possible service in upgrading our bitumen. They would not have to do that in Alberta. They would not have to make that decision. They would not have to invest that money, but they needed to get a pipeline. They wanted to get a pipeline down to Texas where they could use those heavy oil upgraders, which would increase their profits. They did not really have a reason to support Canadian industry, to support Canadian workers or to support the Alberta economy. In fact, if they used these heavy oil upgraders, that could open up more investment than they could put into the oil sands, so they could produce more of it and ramp up the speed by which they developed this resource, because they were just taking it out of the ground and shipping it somewhere else. They could start moving more and more projects.
How does that make the people in our region feel? When we talk to the people in Fort Chipewyan, the people in Fort MacKay or talk to any of the people who actually live in that region, like myself, in Fort Smith, we do not like it. We want orderly development. We do not want the oil sands to blow up to three times its size in the next decade and a half because we are simply taking the oil out of the ground and shipping it out of the country. If we were building the upgraders in Canada, there would be plenty of jobs and economic development for Alberta. This would work. This would mean more orderly development of the oil sands.
Instead, what do we have? We have the wild west going. The Jackpine project has just been approved. What did the Environmental Assessment Board say about the Jackpine project? It would have significant impact on the environment. However, for economic reasons, it was allowed to go ahead anyhow. It was needed for the economy. Because raw bitumen was just being shipped out, these plants had to be built that take it out of the ground and get it out of the country. What kind of process is that for Canada?
Who are the big promoters of this project in the United States? The guys who control the petcoke industry, the Koch brothers. The biggest climate change deniers in the world love this product. They love to get the petcoke into the states where they send that dirty product that comes out of the upgrading using the coking process, which is a process that actually should not be the main process right now for upgrading, but I will get into that a little later. They take that petcoke and sell it to China, the dirtiest product to put into a coal-fired plant the world has ever seen. That is what is done with it. That is what we end up supporting with our Canadian Keystone pipeline.
The Koch brothers were pretty careful at the beginning. They would not admit any involvement with Keystone. They did not want to tie any of their processes, but it has been proved now, pretty conclusively, that these guys are doing it for their purposes.
This is what Canada is supporting right now. The dirtiest product is going to go from the United States to China and to other countries to be burned in their coal-fired plants.
Keystone XL would produce about 15,000 tonnes of petcoke a day from its process. What can we do differently? We could build upgraders in Canada.
When they switched to coking from hydrogen addition, it was because the price of natural gas went through the roof at the beginning of the last decade. Where is the price of natural gas now? It is down there.
We are building LNG terminals to ship the natural gas out of the country when we could be using it in upgraders in Alberta to upgrade the bitumen in an environmentally reasonable fashion, reasonable but not perfect. Instead, we are going to build the Keystone pipeline, ship it all down, put it in the old beat-up refineries along the Texas coast that have handled Venezuelan heavy crude for the last 40 years. It will stick it in there, it will process it there and it will take the petcoke and ship it to China.
How does that fit with Canada's image in the world? What does that make Canada? More of a pariah? Is this what the Conservative government wants: everyone in the world looking at Canada as a purveyor of ill-gotten environmentally unfriendly good? Is that the Conservative government's plan for Canada's economy?
The Conservatives have to shake their heads a little. They have to recognize that Canada has a place in the world. We are not alone in the world. We are not immune to the opinions of the rest of the world. We live off the opinions of the rest of the world through trade. If we do proper trade, people will continue to work with us.
I sat on a board that dealt with environmental issues on rivers. The Al-Pac pulp mill on the Athabasca River, through public pressure, was forced to increase its environmental capacity before it was built. The executives of that company told me five years later that it was the best thing that ever happened. They could sell their pulp anywhere in the world as a high premium, environmentally correct product. It was the best thing that ever happened to them.
What are we doing with our oil sands that are going to be around for 150 years? What kind of reputation are we building for this product that we want to sell to the rest of the world for decades to come? We are doing nothing. We are just trying to get it out of the ground as fast as possible. Mine it and ship is the viewpoint right now in this industry.
We could move in another direction. We could set up the most modern upgraders in the world using the excess natural gas we have for hydrogen addition. We could produce an industry that had a lot more environmental aspects to it. We would also then have synthetic oil, which we could send anywhere in the world. Synthetic oil created out of bitumen can go into any refinery in the world.
Rather than being a hostage to the Texas coast where, in a few years, perhaps Venezuela will be back to being a friend of the United States and then, all of a sudden, we would be competing with heavy oil coming by tankard loads from Venezuela to the same refineries. All of a sudden, the value of the bitumen would start to drop because there would be competition for the same upgrading.
I appreciate that I have one minute left, but if we look at it environmentally, our country has about one minute left.
We have moved so quickly to a position in this world where we are simply not accepted anymore. We are not accepted as being good citizens of the world. This is a tragedy that goes on the backs of all those people sitting across there. The and the are the guys responsible for the mess we are in today. They sit there and grin and pretend that this is all just going to pass by. It is not going to pass by. We will remember what they did.
:
Mr. Speaker, I will be splitting my time today with the member for . Thank you for the opportunity to join in this important debate on the motion by the hon. member for .
I am very certain that all my hon. colleagues here know, if they are being honest with themselves, how important Canada's natural resources have been to our country's economy over the past century. Today we are standing on the brink of opportunities we have never seen before. Canada is about to embark on a series of megaprojects that really could cement our position as a global energy leader.
Over the next decade, several hundred major projects are planned or under way in the resources sector in Canada. These represent investments of over $650 billion. I know these are big numbers. That is what we are looking at. With over a million new jobs for Canadians.
No other country in the world has resource projects of this scale, creating a truly unparalleled opportunity, not only for investors but also for people who want jobs. These jobs are helping to create thousands of high-quality, well-paying jobs for Canadians in every sector of the economy, in every single province in this entire country.
That is why it is so incomprehensible that today the NDP is advancing this motion that defies rationality, that Keystone will cost us jobs. In fact, the absolute reverse is true. This pipeline is going to enable us to keep growing jobs. It is going to provide us with market access, access that because we do not have it right now, we are losing jobs.
As the government of a global trading nation, we recognize that we have this opportunity in front of us. Indeed, we have an obligation to grow and diversify our energy markets.
That is why over the last two years the and the have been travelling to the United States, to Asia, to Europe, driving home the message that Canada is open for business and that we are reliable and responsible, an environmentally responsible supplier of energy resources.
There are some clear facts here. Global demand for energy is going to continue to grow 35% from 2010 to 2035. Canada is one of the countries that has immense resources that could meet that demand, but we need to be able to get our resources to the market. Without that access to markets, our oil will be stranded. In that event, of course, our industry will not be developed. What would happen? Jobs that could be created will not be, and Canadians will have had their birthright squandered. That is what the NDP is proposing here.
New pipeline capacity is critical to move Canada's growing production to tidewater so that we can access those markets. However, energy market diversification is more than just about reaching new international markets. It is also about expanding our markets right here at home. This is about Canadian oil displacing expensive foreign oil that right now is being imported in eastern Canada, in Ontario, in Quebec and Atlantic Canada.
In fact, it is in Canada's national interest to see oil that is produced in Alberta and Saskatchewan travel by pipeline to eastern Canada. Let me explain why.
The U.S. has been buying Canadian crude at discounted prices compared to what it pays for the exact same quality of crude bought internationally. This is because Canada has insufficient pipeline capacity, as I mentioned. Therefore, there were very large discounts in 2012-13. What did that cost us as Canadians? It cost us $13 billion that we could have recouped if we had international market access. That $13 billion lost to Canada was a gain for the U.S.
Meanwhile, our own Canadian refineries and much of eastern Canada, which did not have access to that western Canadian oil, paid higher prices for the foreign feedstock that they had to import. A safe, reliable supply of Canadian domestic crude would make Canada less reliant on foreign oil and enhance our energy independence. In fact, when Quebeckers are asked would they rather be importing oil from Algeria or from Canada, their overwhelming response is that of course they would rather be getting it from Canada.
That means infrastructure, including pipelines, have to be built or repurposed, such as Line 9, to move these resources from the west to the east and overseas. We need the resulting jobs, the economic activity and the tax revenues that continue to fund our essential social programs, such as health care and education. That improves the quality of life of all Canadians.
It would also benefit Canada's sizeable refining industry, which already employs 15,000 Canadians and contributes more than $5 billion to our GDP. Take Sarnia, for example. This was the birthplace of Canada's oil industry more than 150 years ago. It has three refineries with the capacity of 281,000 barrels a day. From there, the refined product goes by pipeline, rail and truck to southwestern Ontario, to greater Toronto and to the U.S. These refineries are situated within a petrochemical complex that makes a broad range of products that market across Canada and the U.S.
Indeed, Canada already is a net exporter of refined petroleum products. We refine more oil right now than we consume. However, refining is a very tight margin business and many refineries have been closing, so the success of our refineries in Canada would be bolstered by a pipeline infrastructure that would deliver to them competitively priced crude from western Canada to make the fuel that we need for businesses, transportation and our daily lives.
In short, pipelines and the energy that they produce fuel our economy. They are also a safe, reliable and efficient way to move our oil products. That is irrefutable. Indeed, over 99.9999% of crude oil that is transported by federally regulated pipelines moves safely without incident. It is the safest way to move our product.
We must always strive to set that bar higher, so our government is introducing new measures to ensure that the system becomes even stronger. We are raising our environmental standards, which are already world class, by enhancing our pipeline safety regime. There are some important components of this plan. Oil and gas pipeline safety inspections have been increased 50% annually, from 100 to 150. Annual comprehensive audits of pipelines have been doubled from three to six.
To ensure pipeline companies have the strongest incentives to operate their facilities at the highest standards, we also intend to entrench in legislation their responsibility to pay for the consequences if there are ever any spills. Our government will propose legislation that will mandate companies that are operating major crude oil pipelines to demonstrate a minimal financial capacity of $1 billion so that they could respond to any incident and remedy damage. The proposed legislation also includes modern safety regulations for pipelines, such as improving transparency by ensuring that the companies' emergency and environmental plans are easily available to the public to look up and by ensuring that pipeline operators are responsible for abandoned pipelines. We are doing a very good job of this.
The government also believes that delivering North American crude to central and eastern Canada is important for our future. We support the opportunity for our refineries to process substantially more Canadian oil. This would support jobs, making our country less reliant on that offshore foreign oil.
Canadians need to recognize that if the NDP or the Liberals have their way and we delay or halt pipeline projects without scientific justification, our entire country will pay a very steep price. We will run the risk of stranded resources. We will lose the opportunity to utilize our birthright when there is a demand for it worldwide. We will get lower prices for the products that we do export. For Canadians, that means a weaker economy, fewer jobs and a lower standard of living. When we export oil and when we have access to international markets, everyone wins.
Let me be clear. The only pipeline proposal currently before review that would transport oil to eastern Canada is Line 9B. That is currently opposed by the NDP. That is right. In the NDP's ideological battle against jobs in the oil and gas sector, it is willing to allow 500 unionized refinery workers in Lévis to potentially lose their jobs. While it is clear the NDP will not support Canadian workers, our government will continue to support workers in Quebec and across Canada. Of course, we expect this from the NDP.
In closing, working together, we can help to assure this holds true for future generations. They can take advantage of the natural resources we have had bestowed upon us, but Canadians and parliamentarians must speak up and say yes to pipelines.
:
Mr. Speaker, it is a pleasure to address the motion from the hon. member for .
I am pleased to state that our government has made significant progress in setting the stage for a much-needed expansion of Canada's energy infrastructure while enhancing safety and environmental protection.
It is also timely that the Governments of British Columbia and Alberta have made substantial progress in their pipeline discussions. I view this as a very constructive development, especially in relation to British Columbia.
Canada's advanced network of energy pipelines, now consisting of more than 73,000 kilometres of federally regulated pipelines criss-crossing this country, provide safe transportation for over $100 billion worth of oil, natural gas, and petroleum products every year. This figure alone underscores the great importance of pipelines to Canada. Pipelines are of major importance to our national economy and support tens of thousands of energy sector jobs throughout Canada.
Pipelines touch almost every Canadian. They transport the fuel that heats our homes and businesses, helps generate electricity, and powers our cars, trucks, and buses. In short, pipelines and the energy they deliver drive our economy and are essential to our standard of living in Canada.
On the practical questions of safety, efficiency, and reliability, the record is clear for pipelines in Canada. Over 99.999% of crude oil transported by federally regulated pipelines moves safely and without incident of any kind, which is an amazing record.
Even with this impressive safety record, our government is working at improvements by introducing new measures to ensure our safety system becomes even stronger. This ongoing goal is reflective of our government's unwavering commitment both to environmental protection and to safety in the energy sector.
Last year we announced our plan for responsible resource development. This plan would ensure that Canada's natural resources are developed in a way that would balance economic prosperity with environmental protection.
Enhancing pipeline safety is a significant component of this plan. Oil and gas pipeline inspections have increased by 50% annually, from 100 to 150. Annual comprehensive audits of pipelines have been doubled, from three to six.
To ensure that pipeline companies have the strongest incentive to operate their facilities with the highest standards of safety and environmental responsibility, we intend to entrench in legislation the responsibility for them to pay for the consequences of any spill—the polluter pays principle. Companies operating major pipelines would need to demonstrate a minimum financial capacity of $1 billion to clean up after any spill.
We have given the National Energy Board new authority to impose serious financial penalties on companies that do not comply with safety and environmental regulations: up to $25,000 a day for individuals and $100,000 a day for companies for as long as the infractions are not addressed.
For the first time, companies must have a senior officer responsible specifically for pipeline safety.
These are just a few of the improvements made by our Conservative government. As Canada's energy infrastructure expands west, east, and south, our next generation of pipelines will be built to the highest quality standards in the world.
The need for this expansion is pressing. Currently 99% of Canada's crude oil and 100% of natural gas exports go to the United States, but as we all know, our American neighbours are finding abundant resources of their own. This means that the U.S. would be relying less on Canadian energy imports into the future. It also means that new infrastructure, including pipelines, must be built in order to open up new international markets and to transport our energy resources to them.
As for practical challenges that this new economic activity entails, there is no question that Canadian crude, including heavy oil from the oil sands, can be carried by Canada's pipeline network with security and safety.
Canada's regulatory and safety regime for developing our natural resources has long been established as among the best in the world, but when it comes to protecting Canadians and our environment, there is no room for complacency. For that reason, our government has firmly stated that no project can proceed unless it is safe for Canadians and safe for the environment.
Building and operating safe pipelines is something that Canada has done for many decades. Few sectors can boast such an outstanding safety record. One of the chief characteristics of a strong safety regime is its ability to continually evolve and improve. As technology evolves and regulations are improved, safety standards are raised.
Last summer I announced that we are taking steps to ensure that we have a truly world-class pipeline safety regime in Canada. Under our new proposed measures, companies would be required to develop and implement a security and safety program that anticipates, prevents, and mitigates conditions that could adversely affect people, property, or the environment. They must prepare and apply an emergency management program focused on emergency preparedness and response requirements.
We will also ensure that companies operating pipelines have the financial capacity to respond to any incident and to remedy damage. To do so, the government will require major crude oil companies to have a minimum financial capacity of $1 billion. In this way, we are protecting the Canadian taxpayer from having to pay in the unlikely event of a spill. With these proposed measures, we will make existing and new pipelines in Canada safer than ever before.
Energy is a major Canadian resource, a key driver of Canada's national economy. Over the next 25 years, the oil sands alone could support more than 600,000 jobs, including new opportunities for aboriginal peoples. However, the benefits from our economic sector go beyond jobs and reach all Canadians. For example, the oil and gas industries generate about $22 billion a year in taxes and royalties to governments in Canada. That contributes to Canadian health care and other social programs.
The natural resource sectors already account for nearly 20% of all economic activity in Canada—a big number—as well as one-fifth of all economic activity, over half of our exports, 950,000 high-paying direct jobs, and a further 850,000 indirect jobs.
Canada has a tremendous opportunity to capitalize on natural resource development to further grow our economy. With the development of the Keystone XL pipeline and other necessary infrastructure, we are opening up the way for a new era of growth and prosperity for all Canadians.
Our government is balancing the need to develop our resources while protecting our environment. On the other hand, the NDP have decided to forgo almost 20% of the Canadian economy. Instead it attacks it at any chance it gets. The NDP has attacked our oil and gas industry, our nuclear sector, and our forestry sector. It has decided to take an extreme position that will not create jobs and economic growth for Canadians, but will instead sap our growth and harm our economy.
It is not just B.C. and Alberta that will suffer under the NDP. There are thousands of companies across Canada that benefit from the oil sands, especially Ontario's manufacturing heartland. Our government will stand firm and resist this anti-development, anti-trade stance and continue our work to create good, high-paying jobs for Canadians across this country.
:
Mr. Speaker, I will be sharing my time with the member for .
I would like to thank my colleagues for their warm welcome. It is an honour to rise today to speak to the opposition motion. I am pleased to thank our colleague from for his work on the energy file and on this issue in particular.
This motion is so important that I feel I must read it.
That, in the opinion of the House, the Keystone XL pipeline would intensify the export of unprocessed raw bitumen and would export more than 40,000 well-paying Canadian jobs, and is therefore not in Canada’s best interest.
The motion is about the Keystone XL pipeline.
I feel that this motion highlights the fact that there are different visions here in the House. The NDP is offering a vision of the future. On one hand, we have economic development; on the other hand, we have sustainable development, environmental protection and a number of social issues that must be taken into account when considering a project. I am very proud to talk about our vision today. I will attempt to show the contrast between our vision and that of the Conservatives and Liberals because, in this case, they are one and the same.
The Liberals and the Conservatives joined forces to back the Keystone XL project. They are on the same side on this issue, just as they are on many others.
What is Keystone XL really about? It is about transporting crude oil from the Alberta oil sands south through a pipeline to refineries in the United States. Then the United States can sell that oil back to us. That is it in a nutshell. That is the Conservatives' business plan and the Liberals' as well. We are talking 830,000 barrels a day. It is a huge project.
A project this size often creates jobs. In this case, we are talking about 40,000 jobs. Where do those numbers come from? They are based on a CEP estimate derived from a 2006 Informetrica report on exporting bitumen. The United States has talked about the possibility of 42,100 jobs.
Both the Conservatives and the Liberals are very proud to say that they will create jobs. However, when it turns out that those jobs will be created in the United States, I cannot figure out why the Conservatives are so proud of it, but they are. They go to the United States to meet with people in the American administration and tell them that they will create jobs that will benefit their country's economy.
I am from Brossard-La Prairie, which is not far from Hochelaga, where the Shell refinery closed its doors a few years ago. People lost their jobs. Nevertheless, instead of trying to create jobs in Canada, the Conservatives have decided to create jobs abroad. I understand why they say that our economy is based on natural resources and the oil sands. They want to develop those resources at all costs.
What we are saying is that we have to start with a vision. There is no vision on the other side of the House. We need a vision of what should be done to build a better Canada. We know that the oil sands are being developed and that Canada cannot stop using oil tomorrow. Even I travel by train or by car from time to time, and those modes of transportation use oil.
What we are suggesting is transporting oil from the west to refineries in the east so that we can create jobs.
Our vision is rather broad. We are saying that we want to create jobs, but create them here in Canada. Why fight to export 40,000 jobs to the United States?
The Conservatives, who are once again being helped by the Liberals, are very good at that, as we saw with Electrolux in Quebec. The Conservatives were very proud to say that they reduced the corporate tax rate. They congratulated themselves for it. However, as soon as their tax rate went down, those companies laid off their workers here and moved their production abroad.
Under the Conservatives, about 500,000 jobs have been lost in the manufacturing sector. I find that shocking. It shows they have no economic vision. That is no way to move the country forward. The Conservative vision, now supported by the Liberals, is to sell everything right away. The goal is to develop all that as quickly as possible and shift production to the United States. The Americans will do the work, get the added value, create jobs and refine the product. Then they can send it back to us, sell it back to us and open new markets.
The Conservatives and Liberals do not seem to care about that. They have a rather narrow vision of this kind of development.
We are talking about economic development, but in this case, the environment also matters. Why are the Conservatives hitting a wall in the United States right now? Why is the Obama administration giving the Conservatives a slap on the wrist? They have had no vision when it comes to the environment.
They say they want to push oil sands development to the limit, and in order to do so, they want to ignore all the rules we have in place to protect the environment. This was all set out in the omnibus bills that the government so proudly introduced, which were clearly problematic.
In closing, I would like to say that I am very proud of this motion, because our vision is much broader and more focused on the future, while the Liberals and Conservatives remain very narrow-minded and have no vision of the future.
:
Mr. Speaker, I am very happy to stand up for Canadians and for the Canadian environment in supporting this motion. I want to read it so that Canadians are clear what we are discussing:
That, in the opinion of the House, the Keystone XL pipeline would intensify the export of unprocessed raw bitumen and would export more than 40,000 well-paying Canadian jobs, and is therefore not in Canada’s best interest.
I wholeheartedly agree with this motion. This opposition day is an opportunity for the parties in Parliament to show Canadians where they stand on the export of jobs and on the export of our raw resources, or whether perhaps they stand with Canadian workers and for action on the environment. That is the opportunity we have today.
The Conservatives and the Liberals have joined together to promote the Keystone XL pipeline, despite the fact that it would export tens of thousands of Canadian jobs to the U.S. along with our raw resources. It is the same old story we have seen before.
As Canadians know, the Keystone is a massive pipeline network owned by TransCanada. It is designed to move Canadian oil sands crude to U.S. markets and its refineries. The Keystone XL extension would connect the network to the largest segment of U.S. refineries, located on the Gulf Coast. If it goes ahead, it would have a capacity of 830,000 barrels a day, making it the largest export pipeline under consideration.
The Canadian section would consist of 529 kilometres. The National Energy Board here in Canada approved that section back in March 2010. However, the pipeline requires the approval of President Obama in order to proceed, and he has repeatedly delayed the decision. The President has made energy security a priority, but he has expressed serious concerns about Canada's environmental record.
President Obama said:
I'm going to evaluate this based on whether or not this is going to significantly contribute to carbon in our atmosphere. And there is no doubt that Canada at the source in those tar sands could potentially be doing more to mitigate carbon release.
He said that in July of this year, so clearly the U.S. has concerns about the environmental impact.
In terms of emissions in Canada, right now the oil sands account for about 7% of Canada's emissions. That is from 2010 statistics, but those emissions are forecast to double to about 14% of our emissions in 2020.
The Conservatives have promised emissions regulations for the oil and gas sector since they were elected so many long years ago in 2006, but they have repeatedly missed their own deadlines for presenting these regulations. We are still waiting to see them.
A U.S. Environmental Protection Agency analysis found that greenhouse gas emissions linked to the Keystone XL pipeline would be 20% higher than emissions compared to existing sources of crude oil, so we would see a very significant increase in emissions.
However, let us also talk about jobs, because Canadians want good-quality jobs. It is what leads to a good standard of living, a standard of living that supports people and their families, and that is fundamentally important in Canada.
Based on an independent study, the export of unprocessed bitumen envisioned in this Keystone XL project could result in the loss of over 40,000 jobs. These are potential jobs, direct and indirect jobs, induced jobs, related jobs. An analysis by the U.S. State Department found that the Keystone XL would support more than 42,000 jobs during the one- to two-year construction period, with total wages of about $2 billion. That is in the U.S.
Alberta has traditionally upgraded about two-thirds of its bitumen, but that would drop from two-thirds down to about 47%, less than half, by 2017, according to the Alberta Energy Resources Conservation Board.
We know where the stands on this matter. He has gone from calling the Keystone approval a no-brainer to basically saying he won't take no for an answer, which was an interesting approach to our export capacity.
In Washington this spring, the talked up the job benefits of the pipeline in the United States. He is talking about the creation of good-quality jobs for Americans, not for Canadians. I want to quote him:
I emphasized that the State Department report indicates this is a very important project for both economies, particularly for employment in the United States—more than 40,000 well-paying jobs.
That was back in April. Those are jobs that we could have here in Canada.
However, he is not alone. The Liberal leader, who also came out strongly in support of this pipeline, recently said, “My support for Keystone is steadfast.... There are lots of American jobs involved and there's lots of opportunities for the United States as well”. He said that just last month.
That is very nice for American jobs. We did not hear him say anything at the time about the environment, so we do not know where he stands on that, but we do know his party's record on the environment, which was to sign the Kyoto accord and then do nothing except watch greenhouse gas emissions skyrocket in Canada.
The Liberal leader's chief of staff was previously a lobbyist for Nexen oil, for Syncrude Canada, for BP Energy, so maybe that had some kind of influence. We do not know, but we have to wonder.
We are very concerned about the Canadian environment and we are very concerned about Canadian jobs. Even the Conservatives' finance minister admits that the Keystone XL pipeline will ship tens of thousands of quality, well-paid Canadian jobs south of the border.
Unlike Conservatives and Liberals, New Democrats do not believe in promoting a massive export of our raw, unprocessed resources. We do not think that is a good economic policy. We believe pipeline projects done properly, with good environmental standards, can benefit Canada, but not when they ship away tens of thousands of good-quality jobs and raw resources, leaving the environmental risks and liabilities on the shoulders of future generations of Canadians. That just makes no good sense.
New Democrats want to develop our economy and develop our resources to serve Canada's long-term environmental and economic prosperity. Instead of holding Conservatives to account, we have seen the Liberal Party stand for shipping out tens of thousands of jobs and the Liberal leader cheering them on. We do not believe in putting the interests of one industry before the interests of all Canadians or before the interests of future generations and the Canadian environment.
That is why I am proud to stand in support of this motion. Canadians can count on New Democrats to defend their interests here in Ottawa and across Canada.