Thank you, Mr. Speaker. With devolution implementation in less than six weeks, GNWT assumes responsibility for mines, oil and gas installations set up under “modern environmental review processes.” Already an enormous responsibility, if we are unprepared, this could become an enormous liability.
Under today’s system, each project, mine or whatever is required to post financial securities as part of the review process. This is meant to provide money that protects the public and the environment from closure and clean-up costs even if the operator goes bankrupt. Until April 1st, this financial security will be held by Canada, presumably with immediate transfer to GNWT on that date.
Mr. Speaker, the federal government has not collected all the financial securities approved by our management structures. I found one example of financial security where $263 million was approved by the Wek'eezhii Land and Water Board for a mine, but the federal government holds only $127 million in security leaving a gap of $136 million, greater than 50 percent.
Just recently a diamond mine in Nunavut shut down. Guess what. They have not paid their security deposit, so the federal government – i.e., the public – is paying the bill.
This raises a number of questions. How many sites? What is the total gap between approved financial security versus that actually held by the federal government for transfer? The Commissioner for Sustainable Development notes that Canada is already liable for $8 billion in mine clean-up costs because of previous failures to hold security.
Will they hand over to us the financial securities held on the 1st of April? Will the GNWT and the public be left on the hook for the substantial liability gap that exists?
Oil and gas operations also present a sticky problem. As of April 1st we will be the oil and gas regulator, yet financial securities are apparently held by the National Energy Board in an office in Calgary. Is there a gap in the holdings there and how can we understand the level of liability we are assuming when we don’t even have a functioning oil and gas regulatory office?
Mr. Speaker, I seek unanimous consent to conclude my statement.
---Unanimous consent granted
While Cabinet proposes to roll out even more subsidies to the resource extraction industry, are they secretly deciding that fully paid security deposits are an unnecessary burden on industry that hinders our competitiveness?
We have spent the last week insisting we leave a positive heritage for future generations. This potential liability could do the exact opposite. I will have questions. Mahsi.
Thank you, Mr. Bromley. The honourable Member for Deh Cho, Mr. Nadli.
