Transcript of Speech by
The Honourable Greg Rickford
Minister of Natural Resources
"Market Diversification of Canada's Natural Resources: Opportunities for Quebec"
Delivered at the
Montreal Council on Foreign Relations Politics Series Luncheon
(CORIM: Le Conseil des relations internationales de Montréal)
Montreal, Quebec
April 11, 2014
Thank you for that warm introduction. I was just thinking about a certain professor I had at the Faculty of Law here at our world-class McGill University. “So it's spring again: the Montreal Canadiens are in the playoffs, and the Leafs aren't.”
I'm not going to weigh in with this friendly crowd as to which side I'm on. But there was a reason I framed it that way. First of all, I would like to thank you for your kind invitation. Today, I’m giving my first speech as Canada’s minister of Natural Resources in front of a Quebec audience.
Before I proceed any further, I would like to take just a moment or two to comment on yesterday's most tragic event on a personal level. Minister Flaherty [the Honourable Joe Flaherty, former Minister of Finance] was a friend and a political mentor. He was the best finance minister, I believe, in the world. He led our country to the top of the list in terms of our performance during and post recession. For my purposes, he was a person who had command of every single file you approached him on — he should have: he was the Minister of Finance. But nobody could deliver it with the fairness and the friendliness that he could, and the only thing that you had to worry about was how well you knew the file you were taking in to talk to him about. That's my personal recollection of Minister Flaherty, and I appreciate you indulging me in this first opportunity to speak publicly in the wake of yesterday’s tragic event.
Ladies and gentlemen, as Member of Parliament for Kenora, a large riding in northwestern Ontario, where we often call ourselves Mantarians, there is an abundance of natural resources. That is why I’m well aware of this sector’s importance to the economy, particularly regional economies. I anticipate numerous productive discussions in Quebec, where, throughout history, natural resources have been a driver of economic and social development. I’m thinking not only about Montreal and Quebec City, of course, but also — and primarily — about a whole network of communities throughout Quebec’s vast territory. I’m thinking about those communities that are involved in the long chain of producing, processing, transporting and shipping our natural resources for our collective enrichment.
Earlier this week, Quebecers exercised their democratic choice. As soon as the government is formed and my counterpart is appointed, I will reach out to him or her so that we can work together to develop our natural resources responsibly. I believe we have a refreshed economic and political circumstance here to move forward.
I am also very pleased to be able to address the MCFR on the eve of its 30th anniversary. The mission that the founders of the council gave you — to promote greater knowledge of international affairs and to encourage closer cooperation between the various entities that share an interest in international matters — is more timely than ever. Whether it’s in the metropolis of Montreal, or in northern Quebec, or in the rest of Canada, our economic future must emerge and unfold in a global context. Today, I propose that we look at the opportunities that evolving global markets offer us, in particular, the benefits across Canada of expanding and diversifying export markets for natural resources.
The forest — let’s begin with the forest industry. As you know, Canada has long been a leader in the global forest industry. Indeed, we are the second-largest exporter of forest products in the world after the United States. The success of our forest industry plays out in large part on foreign markets, as does the success of most of our industries. While the United States is still our largest market, China is now the main source of growth for global demand and for our exports, and by 2025 India will be the world’s fifth-largest consumer market.
Therefore, the prosperity of Quebec’s forest regions, and of my riding of Kenora, will depend in part on the decisions made in Beijing and Mumbai. The medium- and long-term success of our forest industry requires a greater presence in those markets. To do that, we must not only strengthen our relations with those clients but also step up our efforts in the areas of innovation, productivity and competitiveness. This is why the Canadian government’s 2014 economic plan proposes ongoing support for the transformation of this key sector. The plan includes $90.4 million over four years to extend the Investments in Forest Industry Transformation Program.
The mining sector — Canada is also a global force in mining. We produce more than 60 minerals and metals. Quebec makes a powerful and highly diversified contribution to this sector’s vitality, producing 30 minerals and metals. Investment in the mining sector can indeed transform a whole region's future. I know that for a fact. It creates well-paying jobs for its workers; for youth entering the labor market, particularly in small towns and remote communities across this country; and, I should add, given my own background, tremendous opportunities for First Nations as well. Faced with intense global competition, we can never take investment for granted. For investment to materialize, we need a stable investment framework, predictable and transparent regulations and effective collaboration between all stakeholders.
I will now talk about energy. Canada is also a global leader in the energy sector: the world’s fifth-largest oil producer, third-largest hydroelectricity producer and fifth-largest natural gas producer. We can do better, and we all know that the energy sector is a key economic driver for Canada. Energy industries account for approximately 9 percent of our gross domestic product and provide more than 300,000 well-paying direct jobs and a host of indirect jobs in all regions of Canada.
In addition to our natural resources, we also have unparalleled know-how. Our companies, our consulting firms, our technologies — the ones that we used to build this country and that continue to make it one of the most prosperous countries in the world —are a formidable asset in an increasingly competitive global market. Today, we must make the decisions that are needed to fully promote our natural resources industries, especially energy, so we can capitalize on the immense opportunities abroad.
Through initiatives such as Sustainable Development Technology Canada, we support the technological development of non-conventional energies, renewable energy, energy efficiency and environmental solutions that will open up new opportunities for Canada and for the world. These technologies will help us to meet new needs, to reduce greenhouse gases, to protect the environment and to create high-quality jobs here at home.
The energy situation in Quebec — Quebec is already a global energy player, thanks in part to its extraordinary capacity for producing hydroelectric power. Quebec also has promising oil and natural gas resources. The issue of potentially developing those resources is giving rise to numerous debates, of course. I will take steps to ensure that our two governments can continue their work to implement the Canada–Quebec accord for the shared management of petroleum resources in the Gulf of St. Lawrence, which was signed in 2011. This accord will ensure that Quebec benefits from the royalties and economic spinoffs of developing offshore resources as if they were located on its own land.
There is another question to consider: Is it desirable for Quebec to continue using foreign oil to supply its refineries? Currently, 92 percent of the oil used in Quebec comes from outside Canada. In 2012, Quebec imported roughly 323,000 barrels — or 36.1 million dollars’ worth — of crude oil a day. That’s $13 billion a year. That’s a lot.
So, the way forward is to replace foreign oil with Canadian oil. Is this realistic? Is it possible? Quebec is not condemned to depend forever on foreign producers. We know what the problem is: an insufficient means of transporting oil. We also know what the solution to this problem is: transporting Canadian oil to Quebec and the Atlantic provinces. And the solution has been decided: pipelines. Me, I like that word, because I have a hard time pronouncing “oléoduc” and “acheminement” in French. Transporting Canadian oil rather than using foreign oil. Projects like the Line 9 Reversal and the Energy East pipeline will make Suncor’s refineries in Montreal and Jean-Gaulin more competitive.
Protecting the environment — It’s clear that producing and transporting oil should not be done to the detriment of the environment. That’s obvious, and it’s a question of the safety of Canadians in every community. This is the basis of our government’s commitment to the responsible development of natural resources.
The Lac-Mégantic disaster — which deeply affected all Canadians from coast to coast — reminds us that we can never do enough to protect our citizens and the environment, and that every precaution must be taken. As my colleague Lisa Raitt, Minister of Transport, has said, our approach to security in the rail transportation sector centres on protecting our communities and our citizens.
That’s why we have drastically tightened regulations and we’re still working on making the industry’s rules and practices even more rigorous. We are also working on increasing maritime oil transportation security.
I want to assure you that the Government of Canada takes the potential environmental impact of all energy projects very seriously. One of the major pillars of our Responsible Resource Development plan is increasing pipeline security. Canadian pipelines are already remarkably reliable and secure. We don’t often hear what the numbers clearly say: 99.999 percent of crude oil and refined products that are transported by pipelines under National Energy Board regulations arrive at their destinations safely.
We have further increased pipeline security under the Economic Action Plan and have notably increased the number of annual oil pipeline and gas pipeline inspections by 50 percent and doubled the number of annual comprehensive audits to identify problems and the possibility of accidents, thereby preventing accidents before they happen. For large-volume pipelines, we will also require operators to have a financial capability of $1 billion to ensure that in the extraordinary case of a spill, the necessary cleanup work will be done immediately and with no risk to the taxpayer.
In conclusion, my friends, Canada has continued to grow and prosper for nearly 125 years — I think that’s how long it’s been since the Leafs won the Stanley Cup — to become, I’m smarting from that one, to become one of the most prosperous countries in world, thanks in large part to its resource wealth, and especially its energy wealth.
Under Prime Minster Harper’s leadership, employment, the economy and support for families all remain our government’s major priorities. Today, Canada has the strongest employment record in the developed world, with nearly 1.1 million jobs created since the recession.
Today, ladies and gentlemen, marks the dawn of a new emergence of our resource wealth. The major resource projects that are under way or being planned over the next ten years represent investments worth approximately $650 billion and hundreds of thousands of jobs across Canada in all sectors of our economy and all across Canada.
Quebec can be a part of this historic development. In fact, it is exceptionally well placed to benefit from this growth and could even one day become a net exporter of all forms of energy. You can count on our government to support this momentum and to continue opening new markets for your industries and your communities.
I wanted to come here today to tell you that we want to work with Quebec to develop the natural resource potential in all of our regions. We can do it. We have already shown that collaboration is possible by signing the Canada–Quebec accord for the shared management of petroleum resources in the Gulf of St. Lawrence. We should do it for our own prosperity and for the prosperity of generations to come.
So it is, ladies and gentlemen, for my part. My name is Greg Rickford, and I'm the Member of Parliament for the great Kenora riding, all 326,716 square kilometres. It's a privilege and an honour to serve my constituents and, in my capacity as the Minister of Natural Resources, to serve you.
Thank you for this opportunity.
