RNNR Committee Report
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Official Opposition – New Democratic Party of CanadaDissenting opinion to the Study on Natural Resource Development in Northern Canada New Democratic members of the Standing Committee recognize the critical importance of natural resources to the economic development and future success of Canada’s North. While the majority Report on The Development of Natural Resources in Northern Canada describes some of the challenges and recommendations heard by the Committee, New Democrat members of the Standing Committee on Natural Resources regret that the following key issues have been ignored or inadequately addressed in this report. (1) The omission of key Aboriginal groups as witnesses in Committee is offensive, unjustifiable, and impoverishes the contribution of the majority report; (2) The vital need for infrastructure in Northern and remote communities is not adequately framed and represented; (3) Environmental concerns and the ramifications of recent dramatic changes to environmental legislation by the Conservative government have not been addressed; (4) The question of training and capacity-building in Northern communities is lacking and (5) There is no reference to the necessity of developing a national mining strategy. The majority report systematically ignores the principles of economic, environmental, and social sustainability. The Committee did not hear from a full range of witnesses; the contribution of certain witnesses was not adequately represented. Therefore, the report is unbalanced and incomplete. 1. Aboriginal involvement The majority report clearly suffers from the failure to seek input from aboriginal witnesses through the course of the study. During hearings on socioeconomic matters, the Committee was unable to hear from several Aboriginal groups that could have provided valuable input on the key issues of training, Aboriginal participation in northern development projects, and the environment. Nonetheless, various groups had been identified for the Committee’s study, such as the Assembly of First Nations, Land Claims Agreement Coalition and Nishnawbe Aski Nation. The NDP is disappointed that the majority of the Committee did not pursue extensive consultations with Aboriginal groups; and that, as a result, the majority report does not seriously address the concerns of Northern Aboriginal communities and nations. The majority recommendations address several issues concerning Aboriginal communities by approaching these communities from the top down. They suggest making general improvements to infrastructure and training entirely based on natural resources extraction, without considering a comprehensive approach to economic development. There are approximately 1200 Aboriginal communities within 200 Km of mines and exploration properties. The report fails to clarify the imperative of forming lasting partnerships with Northern communities. This, in addition to the narrow scope from which this document was developed, is an example of how the Conservative government falls short with regards to its duty to consult and to accommodate Aboriginal communities and nations in the North. The substance and recommendations of the majority report does not address critical issues such as revenue sharing, benefit sharing, resource access, or legacy measures, which are important to creating useful partnerships for the sustained development of Northern natural resources. Beneficiaries of resource wealth should include people in the communities where the resources originate and these communities should be part of the decisions that have a direct impact upon them as equal partners in decision-making and of proceeds from local resources. It is the responsibility of the Federal Government to meaningfully engage with Aboriginal peoples and ensure they are involved in all aspects and at all levels of resource development decisions. New Democrat Committee members recommend that the Government of Canada acknowledge its constitutional duty to consult and accommodate Aboriginal people’s concerns with respect to natural resource development. An Action Plan should be developed detailing how existing programs can be retooled to include First Nations peoples at all levels and stages of natural resource development. Aboriginal communities affected by natural resources development projects should be engaged on a government-to-government basis and consulted on where it is built, how it is developed, what safeguards are put in place to protect their community and habitat. New Democrat Committee members recommend that the Government of Canada work with industry and with Aboriginal governments to ensure full Aboriginal participation in decision-making and in the employment and other economic benefits accruing from resource development in the North. The Committee heard testimony of the positive impacts of settled land claims on economic development for aboriginal communities. Two examples of Aboriginal businesses resulting from settled land claims are The Inuvialuit Development Corporation, which operates a logistics company, an airline, a construction company and an oil field logistics company and the Gwich’in Development Corporation, which operates a pipeline company, a construction company, an oilfield services company, a number of real estate and property management companies, a hotel and a helicopter company. The GDC is also a partner in Larga Limited which operates a logistics company with two other Aboriginal corporations the Nunasi Corporation and the Kitikmeot Development Corporation also result from settled land claims. Another successful example is the Manitoba Keewatinowi Okimakanak First Nation (MKO) group which is building partnerships with businesses for projects such as the $19 billion Manitoba Hydro dam project, Custom Helicopter Ltd to create Piminawin Ltd, and The North West Company to create Muskehki Distributors Inc. The Committee also heard testimony from industry about the importance of settling outstanding land claims in order to provide greater certainty for resource development investments in Canada. Too often, the Federal government has not been sufficiently engaged and companies have been left to attempt consultation and negotiation with Aboriginal groups on their own; this, in spite of the fact that the courts have established it as a federal responsibility. New Democrat Committee members recommend that the Government of Canada devotes the necessary resources and political will to settle outstanding land claims with the Aboriginal communities of Northern Canada in order to facilitate and guarantee their meaningful participation in the responsible development of the natural resource sector and provide greater certainty for investors. 2. Infrastructure Development Numerous witnesses stressed the fact that the lack of infrastructure was the main barrier preventing continued economic development in their region. The majority report ignores that the Federal government has the necessary tools to address infrastructure problems in the North. The question of infrastructure development is intimately linked with that of effective financing mechanisms to allow Northern jurisdictions the ability to build the infrastructure that they require. Resource revenue sharing mechanisms should be grounded in the financial realities of resource development in the North. Nunavut and the Northwest Territories are the only two jurisdictions in Canada without control of their own over land, water and non-renewable natural resources. The Committee heard that structural challenges and inadequate support from the Federal government prevent the Territories from building the infrastructure they need. There are many unaddressed critical needs for infrastructure development. For instance, Nunavut does not have one single port to ship goods to market. Rankin Inlet is desperately facing a severe housing shortage that leads to overcrowding, and health and other well-being issues. Major consideration should be given to financing capacity. Peter Mackey of the Quilliq Energy Corporation spoke about the current $400 million debt cap facing the government of Nunavut, which is too low to allow the territory to switch to cleaner fuels like hydro and renewables. Financial institutions are ready to help Nunavut switch to cleaner energies, but the Federal government’s current policies do not allow Northern governments to borrow the required capital to invest in renewable energy, cleaner fuels and smart grids. New Democrat committee members recommend that the Government of Canada increase the territorial borrowing limit to help the Territories mobilize additional funding for infrastructure projects. The Regional Municipality of Wood Buffalo is seeking federal support for their airport evaporate at precisely the moment they need it the most to deal with an exploding population. The government is quick to boast of the benefits that the oil sands contribute to the Canadian economy, but they are slow to invest resources to create strong and sustainable communities in the North. The costs of not investing in our Northern infrastructure are severe and this report ignores the growing infrastructure deficit. New Democrat Committee members recommend that the government undertake a comprehensive review of all financial mechanisms used to fund infrastructure in the North, including borrowing powers of territories, resource revenue sharing, taxation powers, royalty rates and other federal transfer funds. 3. Environmental Protection It is time to stop taking a case-by-case approach: The New Democrat Committee members wish to express their concern and disapproval regarding the Conservative government’s recent introduction of numerous amendments to the environmental assessment process. In particular, the government has used omnibus budget bills C-38 and C-45 to introduce exemptions for major projects and provisions allowing the Minister of Environment to limit the scope of assessments. In addition, amendments were made to many existing laws that contradict the principles of sustainable development (Fisheries Act, Navigable Waters Protection Act, etc.). While the Federal government seems ideologically driven to eliminate all environmental protection mechanisms, we believe it is possible to develop the North in a responsible and sustainable manner and still allow Northern communities to maintain their traditional way of life. We propose that the Canadian government develop a strategic environmental assessment (SEA) plan that would allow the scope and type of environmental and socioeconomic impacts to be assessed in advance of any project. In accordance with the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals, the New Democrat members of the Committee recommend that the government take a Strategic Environmental Evaluation approach to guide resource development in Canada’s Arctic prior to issuing any licenses in Canada’s Arctic. We believe this is particularly important to ensure that future exploration and development activities are properly structured, especially hydrocarbon development in northern offshore environments. The primary purpose would be to enable governments to gather the necessary information before deciding whether exploration should be allowed in new areas. We believe that the SEA would reduce uncertainty for proponents and encourage investment. William Amos, Director of the University of Ottawa’s environmental law clinic and of Ecojustice Canada, summed up our point of view eloquently during his appearance before the Committee on June 21, 2012: “In Canada the environmental assessment process has kicked in once the actual exploration activities are beginning. I would suggest that the uncertainty that this generates for industry and particularly for communities is significant. At the stage of the issuance of licences there needs to be a full strategic environmental assessment of whether offshore drilling should go ahead in a particular area, well before significant investments are made to prepare for exploration activities. This way capital wouldn't be paralyzed and decisions by those communities up north could be made at a much earlier phase, so that they could determine that over here is not an area where they want to be drilling, and over there, potentially, yes.” (June 21, 2012) This government’s rush to overhaul environmental legislation may actually lead to more court challenges and greater uncertainty for business and communities. It is also revealing to note that none of the majority recommendations make any reference to sustainable development. It is important to ensure that the Aboriginal communities and governments involved have the right to review project proposals by mining companies before they are implemented so that problems or negative impacts can be prevented, as Dr. Ginger Gibson MacDonald highlighted in her testimony to the Committee. The Committee also heard about the potential for renewable electricity generation to beneficially transform the experiences of communities and resource projects which are currently largely dependent on imported diesel. In light of this significant environmental and economic challenge faced by Northern Canadians, New Democrats regret that the Conservative Government has ended all federal support for renewable wind and solar power in Canada. Nevertheless, territorial governments and industry recognize the potential of renewable technologies for northern and remote communities. Hon. Michael Miltenberger, Minister of Environment, and Government of the Northwest Territories: “We are making what are for us very substantial investments in biomass, geothermal, solar, and wind. We see these as critical developments that are going to allow us to in fact have a sustainable cost of living in the North and a cost of doing business so that businesses can come in and run their businesses in an environmentally sustainable way that’s affordable.” (June 19, 2012) Francis Bradley, VP Canadian Electricity Association: “An example of a really innovative project that may have application elsewhere is a project that Newfoundland and Labrador Hydro has been working on, specifically for remote communities served by diesel. This is a project called Ramea. What they’ve been doing is integrating wind, hydrogen production, and diesel. It’s an example of an innovative approach. In effect, when the wind is blowing, and it’s producing more electricity than required by the remote community, excess electricity is used to produce hydrogen. Then when the wind isn’t blowing, the hydrogen is used to produce electricity.” (June 5, 2012) The Federal Government should be a supportive partner to initiatives by territorial governments and industry to develop renewable energy in the north. The New Democrats support the active and effective promotion of renewable energy sources as a key element of the sustainable development of areas in the Far North. New Democrat committee members also note the significant cuts made by the Conservatives to scientific capacity. The closure of the PEARL arctic research station and significant cuts to the Canadian Space Agency will harm Canada’s ability to manage environmental challenges and resource development opportunities in the North. The New Democrat members of the Committee recommend that the Government of Canada cancel cuts to scientific research programs, particularly the Canadian Space Agency, so as not to hinder funding decisions or mortgage the development of the North’s energy and mineral resources.
4. Training, Skills Development and Employment Equity Northern Canadians have long suffered from an inequality of access to training and education opportunities compared to Canadians living in more populated Southern areas. This has had a negative impact on the economic outcomes of people living in the North and it has created challenges for companies looking to fill skilled positions in resource development projects in Northern regions. Providing more local training and education, or the opportunities to access them, is essential and a key driver of development. By refusing to treat Aboriginal needs and concerns as a priority and by failing to adequately invest in developing skills amongst the northern population, the Government is perpetuating a cycle of poverty and marginalisation that has developed in Northern Canada. This means that there is less incentive to return for the few who do pursue educational opportunities elsewhere. Comprehensive training and skills development across all segments of society will be vital for success and social sustainability in Canada’s North. It’s a win-win for the region and its people. “The Northern Aboriginal population, and the Aboriginal population in particular, could fill as many as 400,000 of the one million jobs that are expected to be vacant in Canada by 2025.” Ginger Gibson Macdonald, Adjunct Professor at Norman B. Keevil Institute of Mining Engineering UBC (June 19, 2012) The Government of Canada should be engaging First Nations and other local communities to encourage full and meaningful participation in resource projects as skilled labourers, managers, professionals and decision-makers. Improving training would address the lack of access to skilled labour, particularly from the regions where the projects are situated. The Committee heard that training and education initiatives should not be narrowly focussed on the needs of mining projects but should contribute to the development of broad skills required to achieve sustainable economic development within northern communities. As John Cheechoo of Inuit Tapirit Kanatami says: “Educational attainment doesn’t just focus on the industry [but] it should focus on different sectors --- health, public sector jobs, private sector jobs, having your own enterprise… Also, we need the ability to move from one region to the next to apply our skills. [Educational attainment] should provide for people to move to different places for job opportunities and to apply their skills.” (November 23, 2012) Melissa Blake, Mayor Regional Municipality of Wood Buffalo: “An independent monitoring institute or facility would further show the federal and provincial governments’ commitment to the environment and offer us a unique opportunity to diversify our economic base into a knowledge base.” (June 5, 2012) Based on the testimony the Committee heard, it is clear that the Federal Government has failed to play its role in improving skills training and educational outcomes in Northern Canada. New Democrat members of the Committee recommend that the Federal Government demonstrate a greater commitment to training and education in Northern Canada and that educational attainment should have a broad target range and not be directed solely at mining workers. Training for prospective Aboriginal workers should begin years before a mine opens, and continue as mining proceeds. With the Ring of Fire mine scheduled to open in 2015-2016, the Federal Government needs to identify other government, Aboriginal and business partners to invest now in training in Northern Ontario. The successful Aboriginal Skills and Employment Partnership program which was cancelled by the Conservative government should be renewed. 5. A National Mining Strategy The case study of the massive Ring of Fire mining project in Northern Ontario illustrates many of the challenges facing the development of Northern resources, which the majority report properly addresses. However, the report does not acknowledge the necessity of developing a Canadian Mining strategy to optimize development of this industry and maximize its benefits on local communities as recommended by key witnesses, including the City of Sudbury: “More than ever before, Canada requires a national mining strategy, a policy framework that recognizes the high-tech, research-driven nature of modern mining and positions the resource-rich areas of our country to realize maximum benefits from the riches under their feet.” (David Kilgour, City of Sudbury, February 16, 2012) New Democratic members of the Committee recommend that a Joint Review Panel should proceed on the environmental and related consequences of the Ring of Fire mining project, as called for by the First Nations communities. Furthermore, we recommend that the Government of Canada work with the Aboriginal communities, other levels of government, industry, and other stakeholders to develop a national mining strategy. This strategy should support Canada’s strategic interests and ensure that Canadian workers and their communities would be the primary beneficiaries of our natural resources.
Canada Northern regions are blessed with an abundance of natural resources that, if guided by the principles of sustainable development, can be managed in a way that protects our environment and ways of life while providing economic benefits for generations to come.
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