44th Parl. 1st Sess.

March 4, 2022 10:00AM

Mar/4/22 1:59:52 p.m.
Watch
Re: Bill C-235

Mr. Speaker, I really enjoyed reading my hon. colleague's bill. It is very interesting. The intention is sincere, and it could be impactful. Kudos to my colleague, and I thank him. This bill talks about concentration in the economy and the importance of diversifying the economy. As we know, having an extremely concentrated economy primarily in the provinces that produce very polluting resources has an important impact not only on those provinces, but also on the rest of the country and Quebec. The first thing we need to talk about is the environment. We all know that one Albertan produces six times more greenhouse gas emissions than a Quebecker. One Saskatchewanian produces seven times more than a Quebecker. That is substantial. Next is resilience. A poorly diversified economy is less resilient in the face of stress, recessions, geopolitical uncertainties and pandemics. There is also dependence. Anytime too much of the economy is focused on a single resource or group of resources, that creates dependence. Conservative members like to say that Quebec and other provinces depend on equalization. However, the greatest example of dependence in this country is Alberta's dependence on oil. I will give an example. I had a lot of fun looking at Alberta's old budgets. I like public finances. There are normally very few surprises in the public finances of the provinces, but Alberta was pleasantly surprised this year. Based on last year's projections, Alberta was expected to run a deficit of almost $11 billion for the 2022-23 fiscal year. All of a sudden, a $500-million surplus is announced. The Alberta government appears to be a genius at managing public funds. The difference between the two Alberta budgets is that royalties on what they very affectionately call “bitumen” have increased by almost $8 billion. That is what magically covered nearly 70% of the province's deficit. Note that if Alberta had a value-added tax, a sales tax like most industrialized countries that know how to tax properly, like Quebec and the other provinces, like Europe, there would no longer be a deficit. Yes, those provinces need to diversify their economy. Beyond that, the market concentration can be calculated. Without getting into any detail, there are concentration indicators, such as the Herfindahl-Hirschman index. When we look at the concentration of Alberta's exports, the index is six times higher than that of Quebec, Ontario and the Canadian average, depending on the year. The most recent reliable statistics that I have date back to 2017. They are a few years old, but when we were debating the situation in Ukraine, the member for Wellington—Halton Hills did not hesitate to refer to a report from 2015 to say that we needed to produce more. I do not think that it will bother anyone that I am using data from 2017, but as an economist, I can say that the basic gist remains the same. Yes, we need to diversify the economy. Since I have been a member of the House, I have heard a lot of talk about diversification, in particular from those sitting next to me. Is there a problem with western Canada's public finances? Let us diversify and produce more oil. Is global warming a problem? Let us produce more oil and hope that, in 70 years, when the oceans have risen by three centimetres, we are able to sequester greenhouse gas emissions. That is pretty obvious. On a more serious note, I would say that the Conservatives even used the war in Ukraine to try to justify the construction of pipelines that will take 10 to 15 years to complete. We are not talking about Keystone XL; we are talking about forever. They are trying to sell us that. It is serious. I am a relatively new MP. In passing, I would like to say hello to my constituents in Mirabel and thank them for electing me six months ago. Parliament is a rumour mill. We hear things in the halls and secrets in the cafeteria. It would seem the Conservatives are thinking about putting oil in Canada's food guide. It seems that this would resolve the problem of diversifying our diet. However, they do not agree at all. Some are wondering if it will be in with the fruits and vegetables. Others are wondering if it will be in with the meats and alternatives. I think it will end up with the dairy products because some people will put oil on their cereal in the morning. Since there is a leadership race, this question will likely be settled in September, or at least we hope so. Let us come back to serious matters. This is an interesting bill that says that within 18 months after coming into force, the ministers concerned will meet with stakeholders. It says that they will have to make recommendations and reflect—it is a smart process, we admit it—that the report will have to be tabled in the House and brought to the attention of members, and that the process will have to be repeated every five years. However, let us make sure that these reports do not end up like all the other reports, including the IPCC report. The government shows interest for a day and then throws it in the trash. The same thing happened to the report of the commissioner of the environment. The commissioner blamed the government. We then asked questions in the House, but to listen to them talk one would believe that the commissioner was congratulating them. They need to do something else with these reports other than say that diversification will be paid for with more oil. I, too, would like to see major research being conducted in Alberta. I have several university friends there, and I know that some research is already being done. I, too, want to see excellence, but this must be financed with something other than royalties. Alberta must become less dependent. Their public finances indicate just how vulnerable Alberta is. When the price of oil goes up, everything is good; when the price of oil goes down, things are very bad. When things are good, they want more of it; when things are bad, their solution is to have more. Alberta and oil, it is like nicotine. When you miss it, you smoke more; when you smoke more, you cannot stop. In the process that will lead us to reflect on this bill, I hope that we will find ourselves in a situation where we are constructive, forward-looking and do not continue to invest in an industry of the past. We must look ahead more than 10 years and stop relying on an industry in decline. Canada's history shows us that it has not always been easy. In former times, with the Pearson government, Canada's policy focused on buying Canadian. We know they are very interested in the price of oil. Well, they were selling us their oil for more than the global price. That profit margin enabled them to develop the western oil sands, which cost a lot more to exploit than conventional oil because of the three processing stages. In 2009, the Harper government said it would eliminate inefficient oil subsidies, whatever that means. Anyway, it does not matter what it means because the government did nothing. Since the 2015 Paris Agreement, our banks have invested $609 billion of our money, our savings, in non-renewable energy projects, in oil. That is a total of $609 billion, including $84 billion for coal. This is the 21st century, but we are investing in coal. It feels like we are back in the days of old locomotives. There are solutions, in particular industry-led ones. This has to be a two-way street. The Bloc Québécois has made a lot of green finance proposals because the transition must be financially worthwhile. We need to ensure that the big capital is going to the right place, that investors have an incentive to invest, and that effective price signals are sent. We can use taxation, a savings tax. Transparency in the banking system is lacking. I want to know if my bank is investing my money in dirty oil. I will then make my own decision, but I want to know. We are talking about maybe working on the fiduciary duties of pension funds, which invest our pensions for 20, 30, 40 or 50 years, when this industry is expected to be on the decline. We are talking about norms, about norms from the Task Force on Climate-related Financial Disclosures, or TCFD, about other norms that could be applied to Crown corporations, and so on. There is a lot to think about. There is a lot of work to be done. We need to get a lot of people around the table. I read this bill with great interest and I hope that it will produce something constructive for the future of people in western Canada.

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