Madam Speaker, let us be clear, common-sense Conservatives stand with the fishing industry and with the offshore petroleum industry, as well as with those workers and those families, and those industries that rely on the spinoffs from those powerful Atlantic Canada industries.
Stakeholders like the FFAW, Brazil Rock Lobster Association, Cape Breton Fish Harvesters Association, the Nova Scotia Fisheries Alliance for Energy Engagement, the United Fisheries Conservation Alliance, the Maritime Fishermen's Union, just to name a few who presented at the natural resources committee a few weeks ago.
We heard from Katie Power with the FFAW, which represents 14,000 people who make their living from the fishing industry in Newfoundland and Labrador. She shared a critical perspective with the rest of the fishing industry stakeholders who appeared, who submitted briefs and who were from Atlantic Canada, which is that offshore wind energy expansion will have direct impacts on fish harvesters, who will be faced with having to compete with the offshore wind energy sector for ocean space. Space for fishers who have to harvest their catch is not unlimited space; it is a finite space.
When Dan Fleck of Nova Scotia's Brazil Rock 33/34 Lobster Association was asked how many lobster traps could fit in a proposed 4,000 square kilometre wind farm, just east of Cape Breton, he told us thousands and thousands. Chances are there would be 50 to 60 independent owner-operators displaced, and the crews who depend on them for their livelihood, and all their families, would be impacted, as well as the local coastal communities that rely on the spinoffs. Dan simply echoed the concerns of Katie.
Very little consultation was had with the fishing industry. We heard the testimony. However, there was a bit of a difference of opinion among NDP and Liberal members on the committee. They felt that they had consulted heavily with the fishing industry, but that was shot down solidly when we had those stakeholders appear.
We took the testimony of the fishing industry stakeholders, and we set out to make amendments to try to ensure that the development of offshore wind does not destroy livelihoods in the fishery. In fact, we consulted directly with them, coming up with those nine amendments, which we tried to get votes on here today, and a number of other amendments that were shot down in by members of the natural resource committee, including NDP members who voted against amendments that were written for us by Unifor. Again, across the way, they tout their wonderful relationship that they have with organized labour.
Unifor, one of the biggest unions in Canada, provided common-sense Conservatives with amendments to support the FFAW to protect the livelihoods of those members of the FFAW in Newfoundland and Labrador who feel threatened because they are not a part of the process. They have not been a part of the process. If someone wants to get up here and challenge me on that, they can go back and look at Hansard and all those committee meetings where those fishing industry stakeholders came to committee and pleaded with the costly NDP-Liberal coalition to bring in amendments to support them and to give them peace of mind so that they would not feel that their livelihoods were threatened.
I am very saddened that the NDP and the Bloc did not support the stakeholders in these existing industries. The bird in the hand is worth two in the field. The bird in the hand is the petroleum industry offshore, and it is our fishing industry. They are proven. The fishing industry is over 400 years old in Atlantic Canada.
I am very saddened, but what saddens me the most are the six Liberal MPs across the way from Newfoundland and Labrador and the eight from Nova Scotia who did not support the amendments put forward by people in their own ridings who earn their living from the sea. They did not support amendments that would recognize and mitigate the harmful effects that wind energy can have if we do not have the right consultations with the fishing industry. These industries can coexist. Conservatives are not against wind energy. The only copper mine in Atlantic Canada is in my riding. Every wind turbine uses 1.5 tonnes of copper for every megawatt produced. My goodness, what is the world coming to?
Conservatives tried to get amendments through to support the stakeholders who pleaded with us, and the costly coalition shut it all down. Our amendments to Bill C-49 would have ensured that conflicts between the offshore wind energy and the fishing industry would be kept at a minimum. This would have increased investor confidence in the development of offshore wind and would have given the fishing industry assurance that it would have a viable seat at the table throughout the development of this future renewable resource.
Bill C-49 was void of details on compensation for fishers who could be displaced from their fishing grounds, and displacement will be inevitable without proper consultation. Our amendments aimed to address this. Common-sense Conservatives worked hard on behalf of the fishing industry and the offshore petroleum industry to amend Bill C-49 so we could support it. We do not want to have to vote against something that could be good, but if it is going to kill two industries for another one, it does not make sense. The NDP-Liberals slapped the FFAW-Unifor and its 14,000 members in Newfoundland and Labrador right in the face and did not consider the amendments they wanted.
There was great testimony from the fishing industry, but, in addition to that, there was expert witness testimony from the offshore petroleum industry. One such witness was Mr. Max Ruelokke, with a career of nearly 50 years in the offshore oil and gas industry. Mr. Ruelokke obtained a vast amount of knowledge from working in the Newfoundland and Labrador and Nova Scotia offshore oil and gas industry and through his interactions worldwide. It cannot be denied that he is a pre-eminent expert in the offshore petroleum industry. Most pertinent to his experience is the fact that he served as the chair and CEO of the Canada-Newfoundland and Labrador Offshore Petroleum Board for six years.
In his submission to the committee, he made some pretty strong statements. I will read Mr. Ruelokke's testimony into the record today in this place. It is entitled “An Informed Opinion on Certain Aspects of Bill C-49”, and it states:
I have studied Bill C-49 from the perspective of my 40+ years engagement in the offshore oil and gas industry in Newfoundland and Labrador, the Gulf of Mexico, the North Sea, offshore Brazil and offshore India. Details of my engagement are contained in my CV, which accompanies this document.
The offshore oil and gas industry is a very competitive business on a world-wide basis. Operators such as the major oil and gas companies decide where and when to invest in exploration and production activities based on a variety of factors. One obvious factor is the potential existence of sufficient resource to allow for production. Another is the viability of production on an economic basis. The resources offshore Newfoundland and Labrador have been proven time and time again to meet both of those tests.
Another significant factor is the existence and certainty of an appropriate regulatory regime. Up until now, we have met that test as well. However, with the potential passage of Bill C-49, this situation will change drastically. Specifically, Section 56 of this Bill puts any and all offshore areas at risk of being rendered unusable for resource development, even though such activities may already be underway, and with appropriate regulatory approval.
Corporations have to risk assess any and all potential investments to ensure that such investments made can deliver appropriate returns. In the case of the offshore oil and gas industry, these investments range into billions of dollars.
This is where it gets interesting. He says:
If Bill C-49 is enacted, it will ring the death knell for any potential future offshore oil and gas developments in Atlantic Canada.
That is pretty powerful, “the death knell”. I will talk a little bit more about what a “death knell” means for Newfoundland and Labrador's offshore petroleum industry. He says:
This will be the case since no corporation will risk investing in an area where their exploration or production activities can retroactively be banned simply because Governments believe that the area in which they are occurring may, at some point in time, require environmental protection. This is a terrible piece of legislation!
These are the very words of Mr. Max Ruelokke. He goes on to say:
If we do not continue to explore for, find and produce the relatively environmentally friendly oil under our seabed, we will have to rely on oil and gas from other, much less stable and more environmentally risky areas. The International Energy Agency's 2022 Report estimated that, in 2050, the world will still need approximately 24 million barrels of oil per day. Those of us in Atlantic Canada deserve the opportunity to provide our fair share of those 24 M BBI/day. Please remove Section 56 from Bill C-49 to make this possible!!
Respectfully submitted.
Max Ruelokke
What does a ”death knell” mean for Newfoundland's offshore petroleum industry? Let us take a look at it. The offshore petroleum industry in Newfoundland and Labrador contributes 25% to 30% of our GDP every year, depending on the price of oil as it fluctuates. It is an industry that supports nearly 25,000 direct, indirect and induced jobs, nearly $2 billion of labour income, $1.4 billion of consumer spending and $1.4 billion of tax and royalty revenue to the Province of Newfoundland and Labrador. I am quoting 2017 figures, when oil was only about $30 a barrel. Today, it is $90, so one can imagine what that does to these figures.
It certainly is an industry that we cannot risk destroying by the amendments that Bill C-49 would make to the original Atlantic Accord.
Many in the industry feel that we are seeing the effects of this legislation already. Bill C-49 was tabled last spring and, at the time, there were about 10 companies that were looking at putting together bids to explore in our offshore. However, whatever happened, last year, with a record number of offerings, we received zero bids. Historically, there have been bids up to or even exceeding $1 billion per year to purchase land leases for exploration.
This strikes me as a little peculiar, but not for Mr. Ruelokke. He says this is because of proposed section 56 creating so much uncertainty, basically stating that if an area may be deemed as a future environmentally sensitive area, the government can pull past, current and future exploration and development permits. With the amount of uncertainty created by Bill C-49, especially with proposed section 56, it is a disaster. It is absurd.
While we received no bids in our offshore for parcels for exploration, the U.S. Gulf of Mexico had its largest auction since 2015. I will put it in Canadian dollars: $523 million of bids were taken.
We tried to get that horrible proposed section 56 out of the bill, and we were shot down completely. The uncertainty is brewing with Bill C-49, together with Bill C-50, Bill C-55 and the unconstitutional Bill C-69, for which the government has had six or seven months now to come forward with something. The bill that we are going to be voting on mentions Bill C-69 over 70 times. How can this bill be valid? How can this bill be deemed constitutional?
I challenge the members opposite from Newfoundland and Labrador and from Nova Scotia to vote with us and the Bloc—
