Thank you for the introduction. Welcome everyone.
As Minister of Natural Resources, I've had a tremendous opportunity to celebrate what's good about natural resources here in Canada. And one of the reasons that I'm in Saint John today, and was in Fredericton yesterday, is because we see a tremendous opportunity. And we want to send a strong signal and a clear message to everyone here today, as we did in Fredericton yesterday, that we're excited about New Brunswick's future, in particular Saint John's, and the important role and work that we can do together for the incredible economic opportunity in energy that lies ahead.
What I'm seeing here today is a convergence: business, industry, all levels of government thinking about the same thing, thinking about the same opportunity. And I can tell you that successful cities around the world, particularly in energy, are successful because everybody converges on the same goal. So of course it would make sense that I would have an opportunity here today to talk to you about what the federal government can do lockstep with Saint John.
Indeed, this city has immense potential. It relates to the port, of course, that's situated just beyond these walls. Over 400 years ago, as the story would have it, on June 24, 1604, Samuel de Champlain sailed up the Bay of Fundy into the mouth of what would become the Saint John River. It is the earliest written record of the port's history. And today, ladies and gentlemen, it is the largest port in Eastern Canada, with connection to over 350 ports around the world. It's a place of pride for New Brunswickers, and a gateway to global markets for Canada.
So, let's talk about New Brunswick's natural resource potential. Since the founding of this city back in 1785, the people of Saint John have understood the importance of looking forward — of trading into global markets — potash and lumber, petroleum, molasses and metals. The everyday commodities that drive economies and build communities.
Last summer, I had the opportunity to tour the refinery here in Saint John, as well as the paper mill and Canaport. The first and only, I should say, LNG import terminal in the country. So I know first-hand how important and alive and vibrant the resource sector is to the life of this city. And I understand its potential.
Cities like Saint John help Canada compete in global markets, which is why our government introduced a plan for Responsible Resource Development. Now, Saint John is particularly well positioned to seize the historic opportunities that come from our government's low-tax approach and responsibly developing our natural resources. As the Minister of Natural Resources, you'd expect me to tout the importance of natural resources. But just look at the numbers to understand the opportunity.
Natural resources directly and indirectly account for almost one-fifth of our country's nominal GDP, and 1.8 million jobs.
In 2013, our resource sectors were valued at more than $234 billion and accounted for more than half of Canada's merchandise exports. In 2013, across New Brunswick, natural resources contributed approximately 12 percent of nominal GDP, and generated over 20,000 jobs. And since 2011, ladies and gentlemen, exports of forest products from this province have risen by $100 million annually.
Across the country, natural resource firms provide about $30 billion to government revenues every year. To our detractors, to our opponents, let me say this. Revenues from the energy sector, from natural resources, help pay for health care, education and the social programs that we all value. In fact, these programs have come to define us as Canadians. So, by almost any measure, the natural resource sectors are critical to our economy, our quality of life, and the livelihood of millions of Canadians. And our government has a plan in place to ensure all Canadians, from the east coast to the west, will benefit from this tremendous potential.
Let's talk about Responsible Resource Development — what that means for Canadians and what it means for New Brunswickers. Our government understands that developing Canada's resources not only brings enormous benefits, it also brings clear responsibilities.
Our plan for Responsible Resource Development means modernizing our regulatory review of major resource projects by eliminating unnecessary duplication and providing investors with predictable, beginning-to-end timelines. This plan is not a compromise; in fact it has strengthened environmental protection and environmental performance and enhanced consultations with First Nations communities. If you're in the business of energy, you are also in the business of environmental performance. Before I elaborate more on that, let's start with the economic fundamentals, the foundation for a natural resource sector, and in particular, energy — to flourish.
A big part of our plan for Responsible Resource Development has been to focus on getting the economic fundamentals right — fundamentals that make Canada one of the most favourable investment climates in the world. We've created that climate by cutting red tape, balancing our budget, and opening up new markets through free trade agreements with no fewer than 38 countries. These trade agreements have a direct impact on jobs, economic growth, and long-term prosperity by creating new markets for the goods Canadians produce and the services we are renowned for.
The evidence is clear. Our plan for Responsible Resource Development is working. Canada's strong economic performance and fundamentals have increased interest in this city as a great place to invest. And in fact, I can tell you that, wherever I go in the world, people talk to me about New Brunswick. They talk to me about the opportunity in Saint John.
We also see the success of our economic plan in the job markets and numbers across the country. Indeed, since 2009, Canada has posted one of the best job creation records in the G7, and we have the lowest debt-to-GDP ratio of any nation in the G7. So it's no surprise, then, that Canada recently jumped from sixth to second place in Bloomberg's ranking of the world's most attractive destinations for business. A key part of our economic record is our commitment to cutting taxes — year after year, budget after budget. That's based on a pretty simple idea, actually. We believe Canadians know how to spend their hard-earned money better than governments do. And today the overall tax burden is at its lowest in 50 years. We also know that companies want to keep more of their revenue so that they can reinvest in their businesses, create more jobs and grow the economy. That's why, for new business investments, we've reduced the tax rate by almost half, from 33 to 7.5 percent. And the result: according to KPMG, total business tax costs in Canada are now at the lowest in the G7, and 46 percent lower than those in the United States.
Ladies and gentlemen, I can tell you today we're not finished. We're continuing to cut taxes for Canadians and Canadian businesses. Recently, for example, we proposed accelerating the Capital Cost Allowance from eight to 30 percent on LNG equipment, and from six to ten percent on non-residential buildings at the LNG facilities. I know that that represents an opportunity on the West Coast, but with the only operating LNG facility here on the Atlantic coast right here, it is a tremendous opportunity for the City of Saint John and the Province of New Brunswick.
This is a resource country, and we are standing today in a resource province that we have been developing resources in responsibly for decades. We know how to do it, and we know how to do it safely, and we should start bragging about that. That's good news for numerous projects. It's worth billions of dollars for investments on both the east and the west coasts, including Canaport, and obviously right here in Saint John. We believe these measures and others will allow companies investing in new facilities that will liquefy natural gas to create jobs and economic growth while recovering their investment more quickly.
I want to shift gears for a few minutes, folks, to talk about energy security. There is no question, if you were following the details of the G7 or recent events around the world, energy security has been elevated to one of the hottest and most popular subjects at G7 leaders' and energy ministers’ meetings.
We have seen first-hand what countries will do to advance their energy agenda. They will use political coercion. They will violate the territorial integrity and sovereignty of nearby countries to advance their energy interests. I can tell you, having travelled to the Pacific basin and to Europe that countries are looking to do business with a politically and economically stable country for their energy. And that country is Canada.
I've talked about creating a favourable investment climate and implementing our plan for Responsible Resource Development and putting Canada on track to be an energy super power. As a result, Canada is ideally positioned to contribute to global energy security while creating quality jobs, economic growth and the long-term prosperity Canadians want.
We are enhancing energy security here at home. Between 2005 and 2014, Canada reduced the amount of oil we import by some 42 percent, and at the same time, our crude oil exports grew by 81 percent. That's an increase of almost 1.3 million barrels per day over the last decade. And our exports have reached eight new destinations around the world, from Spain to France, Ireland, Chile, the Bahamas and Hong Kong. In Italy, for example, Canada's crude oil exports grew six-fold between 2013 and 2014, and now account for 3.4 percent of all of the crude that Italy imports.
Now, a good lot of those countries that I just listed off would be most proximal to what province and what city in Canada to serve those markets? Saint John!
And with the European Parliament confirming recently through a science-based review that our Alberta crude is as environmentally responsible as other sources of crude, we can expect to see our exports grow even more. With the facilities that exist in this city, that means a particular ability to participate in this opportunity — opportunity for infrastructure development, opportunity for growth. It means you can and must play a central role. So, just consider this, folks. As the International Energy Agency has told us, by 2040 the world will need a third more energy that is being consumed today. And almost all of the increased demand will come from non-OECD countries. And guess what city and what province is proximal to most of those new markets? Saint John!
In India alone, for which we have a clear pathway from this beautiful city, energy demand is expected to significantly increase in the coming years. And they're looking to Canada's East Coast, which is actually closer to India than the east coast of the United States or the West Coast of Canada, to help meet this demand.
Investors are already recognizing what New Brunswick has to offer. Look at the projects proposed: Energy East Pipeline. TransCanada's proposal includes infrastructure across this province. Natural resource-based industries are at the heart of New Brunswick's economy, and this province holds tremendous potential for further investment and project development.
The point is simply this: Canada and New Brunswick are poised to play an even larger role in supplying energy for the world. Doesn't that sound good, folks? And getting our resources to world markets means that other less secure and less reliable sources aren't supplying them instead.
As Canadians, we are solving challenges and helping Canada compete in the world together. Our government welcomes pipeline projects that will move oil and natural gas to tidewater. Let me say that again. Our government welcomes pipeline projects that will move oil and natural gas to our tidewaters. We know that major oil pipelines could create jobs and opportunities in every province that they pass through. They can also encourage associated investments such as those in marine terminals.
My friends, the truth is that the global markets you understand so well are providing Canadians with unprecedented opportunities. So for Canada, for this port, and for this city, the potential is virtually unlimited.
I want to shift gears now to a subject matter that is very near and dear to me, and it is environmental protection and environmental performance. Ladies and gentlemen, I believe, and our government believes, that no matter how lucrative, how right our fundamentals are and how lucrative the opportunity is, that no project should proceed unless it's safe — safe for Canadians and safe for the environment. The exercise of public confidence I believe is paramount in this discussion in an effort to advance energy infrastructure. That's why at the heart of our plan for Responsible Resource Development, environmental protection, performance and safety are its pillars. And we're doing that in a number of ways, including with the National Energy Board.
Let's break that down a little bit, folks. I talked about protection. Increasing pipeline inspections by the National Energy Board by some 50 percent every year and doubling the number of comprehensive audits; introducing new financial penalties on pipelines for small infractions to prevent larger incidents from happening. On environmental performance: giving the National Energy Board the ability to provide guidance on the best available technologies for pipelines in terms of materials, construction methods and emergency response tools. I know that, whether we're talking about Alert or some of the vendors I saw and spoke with out here today, New Brunswick is interested in those kinds of business opportunities that are about environmental protection and environmental response.
Let me talk about safety for a moment. I want to start out with Canada's record. Now, I know our opponents to pipeline and energy infrastructure development — I have tremendous respect for them. They help to advance important arguments. I do think sometimes that they advance fact-free arguments. But I can tell you that, for Canada's part, our safety record with respect to pipelines is 99.999 percent for more than 72,000 kilometres of federally regulated pipelines. But we want to do better. And we are set to get Royal Assent on the Pipeline Safety Act that builds on safety, prevention, preparedness and response — and world-class liability based on the polluter pays principle.
And in fact, these keywords, folks, are now being applied and are embedded in our marine, rail, and, for my part, as the Minister responsible for nuclear, our nuclear liability. They are words that Canadians take comfort in, that they can count on. And in the business of marine transport, rail and pipeline, our safety efforts have also focused on things like tanker inspections, state-of-the-art technology for monitoring, integrity, and, in the case of marine safety, modernized navigation systems. We've also extended aerial patrols and satellite surveillance in response to recommendations from the Independent Tanker Safety Expert Panel. And we are amending the Marine Liability Act to provide unlimited compensation in the rare and unlikely case of an oil spill.
We are working with response organizations and other key stakeholders to implement spill response plans tailored specifically to the unique features of areas such as the Bay of Fundy. We appreciate in particular, Irving Oil and their leadership in these regards. The Atlantic Emergency Response Team is driven by industry. That's important. And we’re making sure that marine safety, when it comes to energy, is a top priority. Also offshore, our government has passed the Energy Safety and Security Act for Canada's offshore petroleum and nuclear energy industries.
Quite simply, my friends, when it comes to environmental protection, performance and safety, in the past year alone, we have significantly moved the mark in making Canada not just the best place to do business, but also the safest in the world when it comes to energy production and energy infrastructure for transportation.
So, as I close, ladies and gentlemen, I began my remarks by looking back to the rich history of this great city and the central role played by this port for Canada's natural resources. So let me end, then, by looking ahead.
As Wayne Gretzky said, go where the puck is headed, not where it has been. To a future for this port and this city and this province that is brighter than ever, ideally positioned, outward looking, blessed with natural resources, a great workforce. Saint John's is poised to play a historical and increasingly important role in global trade, particularly for energy, bringing with it jobs and growth and opportunity for decades to come. But of course nothing is preordained. We have to work hard together to build that future. We're going to face challenges, and we're going to continue to solve them.
And so my message here today is that the Government of Canada wants to walk lockstep with this city and with this province to turn opportunities into real growth. Friends, together we can converge, we can seize the opportunity, meet tomorrow's energy challenges for the world, gain greater energy security, protect our environment, and keep Canada's economy growing.
We need your enthusiasm, we need your talent, and we need your can-do spirit. With those qualities, our future will be brighter than we can imagine.
So, I appreciate your collective efforts, your contributions, the palpable enthusiasm that I see and feel here today. It's coming from business, industry, from all levels of government, including from the strong voice of one of the hardest working MPs that I know, Saint John's own Rodney Weston.
To all of you, thank you for your part in making Saint John and New Brunswick the place of opportunity and making Canada a dynamic energy super power. Let's believe in that.
Ladies and gentlemen, my name is Greg Rickford. I'm the Member of Parliament for the great Kenora riding. It's a privilege and an honour to serve my constituents, and, in my capacity as the Minister of Natural Resources, to serve you too. Thank you for this opportunity.
