44th Parl. 1st Sess.
May 5, 2022 10:00AM
Mr. Speaker, I thank the member for Kings—Hants for his talk about the CCUS. I have the only working carbon capture and storage facility, on a coal-fired power plant that produces energy for Saskatchewan. I am so glad to hear he has been to Saskatchewan, and I would invite him and arrange for him to have a tour of the CCUS facility, so he actually understands what it truly means to capture that CO2 and put it in the ground.
My question is a very simple one. Is it the industry we want to kill, or is it the emissions?
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Madam Speaker, as always, I appreciate the opportunity to speak in today’s debate on the budget implementation act and the impacts this legislation will have on the constituents of Souris—Moose Mountain and Canadians across the country.
It is disappointing, but not surprising, to see yet another budget that is full of exorbitant spending that will do almost nothing to benefit those who live in rural Canada. One need only look at the news these days to see how divided our country has become. It is thanks to policies like those contained in this omnibus budget that those divisions are continuing and widening under the Prime Minister. This is the same Prime Minister who promised he would never do an omnibus budget bill, although it is reflective of his understanding of and statements on financial issues: He believes the budget will balance itself and that monetary policy is not a priority.
When looking at the overall picture of the Liberal government’s spending, the numbers are concerning to say the very least. In just over six years, government spending has increased by 53%, yet Canadians are worse off than they were when the Liberals first sought power in 2015. It is unconscionable to both me and my constituents that a government can spend billions of dollars, racking up our national debt in the process, and still have no meaningful impact on improving the lives of Canadians.
This reckless spending will need to be paid for at some point in time, and it will fall onto our children and grandchildren to foot the bill. My daughter will have a second child next month, our second grandchild, and unfortunately our future grandson will have this enormous debt to pay off over his lifespan. In fact, the Canadian Taxpayers Federation's national debt clock, as of yesterday, had debt per person at $31,345.01. This is the escalating legacy that the Liberals are leaving behind, despite their false assurances that Canadians are happy and prospering under their leadership.
On top of an ever-climbing national debt, Canadians are also dealing with out-of-control inflation, which is driving up the cost of living across the board. Instead of using this budget as an opportunity to give Canadians a much-needed break, the Liberals chose to spend money launching new programs that stand to benefit a few rather than help the many who need it.
For example, on April 1, the Liberals had an opportunity to provide Canadians with some relief from the carbon tax, yet instead they chose to increase it, taking more money out of the taxpayer’s pocket and putting it into government coffers. As I have said before in the House, it is “dyspocketnesia”: taking from one pocket and putting it into the other, and then forgetting why it was done. This is not what my constituents want, need or deserve.
I would like to spend some time talking about the impact of this budget on the energy industry in my riding, especially as it pertains to emissions and the future of energy production in Canada.
A large number of my constituents work in the energy sector, and thanks to the government, many are experiencing deep concerns about their careers in the longer term. As many members are aware, the Liberal plan to phase out coal-fired power is well under way, and while the Liberals believe they are supporting this transition adequately, I can tell members first-hand that they have completely dropped the ball and workers and communities are being left behind.
Since I became a member of Parliament in 2015, one of the issues I have advocated for time and again is the use of carbon capture and storage technology, or CCUS, to reduce emissions while also extending the life of the power plants it is used on. It took seven years for the government to listen. Just imagine the amount of emissions that could have been captured in those seven years if we had acted earlier, not to mention the jobs that would have been created.
The 2022 budget does create a new tax credit for CCUS expenses, but the credit does not cover enhanced oil recovery, which to me is a huge oversight. For those who may not know, carbon capture serves to decarbonize the energy sector by permanently locking liquefied CO2 into the rock formations of spent oil wells.
On a number of occasions, I have had the privilege to tour the Boundary Dam site in my riding, which captures CO2 using amides. BD3 takes the captured CO2 and either stores it two kilometres below the earth’s surface or sells it, transporting it 50 miles away where it is stored and enhances the oil recovery at the Whitecap Weyburn injection site. This utilized enhanced oil recovery continues to impress me, as does the level of knowledge and innovation that has gone into developing this technology. This is on top of the reduced emissions, which border on making BD3 CCUS carbon-neutral.
The fact is that if the Liberals had included enhanced oil recovery in their tax credit, it would have brought much-needed jobs and investment into Canada, especially during a time of change and uncertainty in the energy industry. Unfortunately, those huge investment dollars are going south to the United States, where they have the 45Q investment tax credit. I have asked multiple cabinet ministers over the years if it is the industry they want to kill or the emissions, and of course the enthusiastic answer I get every time is that it is the emissions. The exclusion of enhanced oil recovery from this tax credit tells me this is not the case.
Canada still requires the use of fossil fuels and will for some time as we move into the future. Instead of allowing CCUS and EOR to function as tools that would help lower emissions, while simultaneously producing the energy that Canada needs at the lowest possible emissions intensity, the Liberals have chosen not to support the innovative work and projects that are happening right here in our own country.
Furthermore, a white paper produced by the International CCS Knowledge Centre states, “[enhanced oil recovery] results in a 37% reduction in CO2 emissions per barrel of oil produced as compared to conventional oil production.” The numbers are there and the technology is there, but the Liberals have yet again chosen not to support the energy industry by picking and choosing which parts of CCUS fit their green agenda, regardless of how this might impact Canadians.
In the last month alone, I have seen multiple groups travel from my constituency to Ottawa and advocate on behalf of the people and communities that will be drastically impacted by the transition away from coal-fired power. According to the Coal Association of Canada, the transition will eliminate approximately 42,000 jobs from Canada’s labour force and take many billions of dollars out of Canada's economy each year. While I understand that the Liberals will try to justify this by saying that they are providing funding for these communities through their just transition initiative, I am here to tell members that they have patently failed the hard-working Canadians who will be affected by this major industry shift.
One of the groups that came here shared a study that was conducted for the Town of Coronach, in my riding, regarding the negative impacts the transition will have on the community. The economic consequences are alarming, indicating a $400-million loss in GDP, a 67% loss in population and an 89% loss in household income.
While the Liberals will claim that the just transition initiative is going to create new, green jobs to replace those that are lost, the fact is that those new jobs would not be in rural areas. This means that the people of Coronach, and those in other rural communities who are in the same boat, will need to consider uprooting their lives to find work elsewhere. In what world does this show a just transition for those who have been contributing to Canada’s economy for their entire careers?
On top of these startling figures, the federal Liberals have only dedicated approximately 3.5% of transition funding to economic development activities that would ensure affected communities remain viable post-2030. Instead, they have invested the funds into community infrastructure such as roads, waste water and parks, which are built by businesses from bigger, urban communities from outside the riding.
If the Town of Coronach stands to lose 67% of its population, what good are the parks? What good are roads if there is nobody left to drive on them because the Liberal government decimated the local workforce? There will be nobody to pay taxes for the upkeep of this infrastructure or to maintain it. It will just deteriorate.
Another sector that is essential for my riding is agriculture. Shamefully, the word “farmer” was only mentioned 11 times in the 280-page budget, and there were no new measures that would have provided support to our agricultural producers. Recognition of the need for food security does not exist with the government. Instead of giving farmers a break, the Liberals increased the carbon tax on April 1. The carbon tax alone takes almost $1.1 billion from farm families that could have been used to upgrade equipment and adopt more sustainable practices. As a reminder to my colleagues across the floor, farmers are small business owners. They cannot afford an ever-increasing carbon tax on top of things like inflation and skyrocketing gas prices.
In conclusion, I know I speak for my constituents when I say that the people of Souris—Moose Mountain have had enough of a government that pretends to take of care them while doing nothing to make their lives easier. Our country has never been more divided thanks to a government that disregards anyone who does not agree with it. Canadians deserved a budget that would give them a break, but instead they are facing uncontrolled government spending, higher taxes and a rising national debt.
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Madam Speaker, as the member has indicated, around this country, we see where the economy is going.
I recognize the member is from the Kingston and the Islands area, but the unfortunate part, and the reality, is that a lot of Canadians do not understand rural Canada. They do not have a clue. Although the member might believe that rural Canada is where he is, a population of 50,000 is not rural Canada. I would invite the member to come to my riding. I would be happy to bring the member to my riding and show him what real rural Canada is about.
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Madam Speaker, once again, I would be more than happy to have the member come out to Souris—Moose Mountain. I would take him to CCS, so he could actually see what is going on.
There are many people at the CCS Knowledge Centre. I would be happy to introduce them, so the member could learn a little more. Ultimately what we are talking about is carbon capture. We have a power plant, BD3, that is capturing all the emissions. It captures 98% of the sulphur. It takes that sulphur and produces sulphur dioxide that it either utilizes or sells. It captures the CO2 by using amines to capture it and inject it into the ground. The power plant injects it into the ground two kilometres below where we are. On top of that, it can then sell that emission to help reduce the emissions for oil-intense companies. They would utilize that to further reduce, by 37%, their emissions.
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Madam Speaker, the member is right. She points out things that are very important as the population ages and as we see disabled people within this country having multiple challenges in order to move forward.
The member mentioned the issue of home renovation tax credits that were there. That is a huge issue, because the reality is that, with the way it is set up, the government has not even put in place people who can assess whether they need those renovations. A disabled person who knows they need to put in new windows cannot even touch that until such time as somebody has come, which is taking forever because those people are not available.
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