Responsible Resource Development,
Conserving Canada’s Natural Heritage,
and Investing in Infrastructure
and Transportation
Highlights
Responsible Resource Development
The Government will develop and present detailed responses to the recommendations made by the Tanker Safety Expert Panel and the Special Representative on West Coast Energy Infrastructure.
$28 million over two years to the National Energy Board for comprehensive and timely reviews of project applications and to support the Participant Funding Program.
Eliminating tariffs on mobile offshore drilling units used in offshore oil and gas exploration and development.
$66.1 million over two years to renew the Atlantic Integrated Commercial Fisheries Initiative and the Pacific Integrated Commercial Fisheries Initiative.Supporting Mining, Forestry and Agriculture
Supporting mineral exploration by junior companies by extending the 15-per-cent Mineral Exploration Tax Credit for flow-through share investors for an additional year.
$90.4 million over four years to continue to support the Investments in Forest Industry Transformation program.
$18 million over four years for early intervention to prevent the spread of spruce budworm in Atlantic Canada and Quebec.
Expanding the types of farming livestock that qualify for tax deferral on sale by farmers dealing with extreme weather conditions.Asserting Canada’s Sovereignty by Investing in the North
Exercising Canada’s sovereignty over the North by securinginternational recognition of the limits of Canada’s extended continental shelf, including the North Pole.
$40 million over two years, starting in 2014–15, to renew the Strategic Investments in Northern Economic Development program delivered by the Canadian Northern Economic Development Agency.
Working with territorial governments to develop transportation infrastructure in the North.
$70 million over three years for a new, targeted and time-limited fundto increase health services in the three territories in priority health areas and to reduce the reliance on outside health care systems and medical travel.
Enhancing funding for Nutrition North Canada to help improve access to healthy food in the communities it serves.Conserving Canada’s Natural Heritage
$391.5 million over five years on a cash basis to the Parks Canada Agency to make improvements to highways, bridges and dams located in our national parks and along our historic canals.
$15 million over two years to extend the Recreational Fisheries Conservation Partnerships Program.
Encouraging additional donations of ecologically sensitive land by doubling, for income tax purposes, the carry-forward period for donations of such land.
$10 million over two years to improve and expand snowmobile and recreational trails across the country.
$3 million over three years to support the Earth Rangers Foundation to expand its existing family-oriented conservation andbiodiversity programming.
Expanding tax incentives for clean energy generation to include a broader range of equipment.Supporting Jobs and Growth
Responsible Resource Development, Conserving Canada’s Natural Heritage, and Investing in Infrastructure and Transportation
Investing in Infrastructure and Transportation
$165 million over two years on a cash basis to advance theconstruction of a new bridge for the St. Lawrence.
$378 million over two years on a cash basis to advance the repair and maintenance of federal bridges in the Greater Montreal Area, including the Champlain Bridge to ensure it is properly maintained until the new bridge for the St. Lawrence opens.
$58 million over two years to support the continued operation of the Digby, Nova Scotia–Saint John, New Brunswick, Wood Islands, Prince Edward Island–Caribou, Nova Scotia, and Îles de la Madeleine, Quebec–Souris, Prince Edward Island ferry services.
$40 million over two years on a cash basis to accelerate repair and maintenance work at small craft harbours across Canada.
$33 million over two years to support the divestiture of regional ports to local interests and the continued operation and maintenance of federally owned ports.Responsible Resource Development,
Conserving Canada’s Natural Heritage,
and Investing in Infrastructure
and Transportation
Major natural resource projects are an important source of development and job creation in all regions of Canada. Our diverse and abundant natural resource sector is an asset that benefits all Canadians, especially Aboriginal peoples. Economic Action Plan 2014 proposes to take further steps to ensure safe and responsible resource development.
Mining, forestry and agriculture represent important contributors to the Canadian economy and create jobs, particularly in many rural communities. Economic Action Plan 2014 proposes to continue to support innovation in the forestry and mining sectors. The Government has also made significant investments to help farmers create jobs and prosperity.
Canada’s North is a fundamental part of our heritage, our future and our identity as a country. Building on the Government’s vision for a new North, Economic Action Plan 2014 is taking action to ensure that the North realizes its full potential by exercising our Northern sovereignty, promoting
economic prosperity and supporting the health of Northerners.
Protecting the health and well-being of Canadians by promoting a safe and clean environment is a Government priority. As highlighted in the recent Speech from the Throne, the Government will soon introduce a National Conservation Plan. To that end, Economic Action Plan 2014 proposes measures to invest in national parks, conserve recreational fisheries, protect ecologically sensitive land, expand recreational trails, and support family- oriented conservation and clean energy generation.
Economic Action Plan 2014 also makes strategic investments in public infrastructure and transportation services, including in major bridges, small craft harbours and ports, and ferry services. These investments will
contribute to economic growth and job creation and provide a high quality of life for Canadians.
Supporting Jobs and Growth
Responsible Resource Development, Conserving Canada’s Natural Heritage, and Investing in Infrastructure and Transportation
Responsible Resource Development
Responsible resource development is an important part of the Government’s economic plan to create jobs, growth and long-term prosperity. Through the responsible development of our immense natural resources, Canadian companies are creating good, well-paying and highly skilled jobs in communities across Canada. In fact, Canada’s natural resource sector represents 18 per cent of the economy and over half of our exports, and supports 1.8 million jobs directly and indirectly. Furthermore, it generates about $30 billion annually in revenue to governments, equal to approximately half of all spending on hospitals in Canada in 2013.
Canada is a major player in the world energy economy, in addition to its strength in mining, forestry and agriculture. Hundreds of resource projects are underway or planned over the next 10 years representing a total potential investment of $650 billion. According to the Conference Board of Canada, British Columbia’s natural gas sector alone could attract an average of more than $7.5 billion in new investment each year from now until 2035.
These projects will create hundreds of thousands of jobs and generate significant economic growth. Canada’s energy advantage translates into concrete benefits for all Canadians as increasing revenues allow the Government to finance critical social programs and lower taxes.
The significant employment and profit opportunities for Aboriginal peoples associated with natural resource development cannot be overstated.
The Government will continue to consult with Aboriginal partners on maximizing opportunities related to resource projects.
Action Plan to Improve Northern Regulatory Regimes
Territorial governments, Aboriginal groups and industry have repeatedly expressed the need for more predictable regulatory processes in the North that enhance environmental protection, while encouraging exploration and investment. Significant progress has been made to date as part of the Action Plan to Improve Northern Regulatory Regimes, including the Northern Jobs and Growth Act, which passed into law in June 2013. The Government is continuing to work with partners and stakeholders to improve regulatory regimes in the North, including through enhancements to the regulatory system in the Mackenzie Valley, presently being considered by Parliament, and through upcoming improvements to the Yukon Environmental and Socio-economic Assessment Act.Strengthening Canada’s Marine Oil Spill Prevention,
Preparedness and Response Regime
The National Energy Board estimates that Canadian crude oil production will reach 5.8 million barrels per day by 2035, an increase of nearly 75 per cent over 2012 levels. In 2035, the oil sands are expected to account for nearly 86 per cent of Canada’s oil production, compared with 57 per cent in 2012.
The Alberta government anticipates over $200 billion in capital investments in the oil sands between 2013 and 2022, each dollar of which would create about $8 of economic activity. The British Columbia government indicates that there is potential to create 21,600 construction jobs and 2,400
permanent jobs for operation and maintenance from liquefied natural gas facilities. Currently, about 98 per cent of Canada’s crude oil exports and 100 per cent of our natural gas exports are to the United States. Exporting only to the U.S. market has resulted in significantly lower Canadian crude oil prices relative to global benchmarks in recent years. This is significantly reducing the value of Canadian exports and gross domestic product. As reiterated in the 2013 Speech from the Throne, ensuring safe and responsible resource development remains a key priority for the Government. Developing the infrastructure to build safe pipelines and strengthening the tanker safety regime to transport our energy exports to new markets are essential for Canada’s future prosperity and security. Canada’s west coast provides the most direct route for western oil and gas resources to fast-growing Asia-Pacific energy markets.
Since 2012, the Government has provided funding in support of increased tanker safety inspections, a new incident command system, new and modified aids to navigation, and stronger oversight requirements for pollution prevention and response at oil handling facilities.
Supporting Jobs and Growth
Responsible Resource Development, Conserving Canada’s Natural Heritage, and Investing in Infrastructure and Transportation
Supporting a World-Class Tanker Safety Regime
Since 2012, new measures in support of a world-class tanker safety regime include:
• Extending the National Aerial Surveillance Program. This Transport Canada program provides for overflights of marine vessel traffic to prevent and detect discharges of pollutants. Additional hours of service are being provided.
• A new Incident Command System, an integrated common
organizational structure led by the Canadian Coast Guard involving personnel, policies, procedures, facilities and equipment. The system will more effectively manage oil spill response operations.
• Science and technology research related to the environmental properties of non-conventional petroleum products, including the impacts of bitumen products when released into the marine
environment. These activities will support planning and management of spill responses.
• Navigational aids and systems in the Kitimat region and prevention countermeasures equipment (such as booms and skimmers).
• Increased inspections of foreign tankers on their first visit to Canada from the current coverage of 49 per cent to 100 per cent, with annual inspections to follow thereafter.
• Community partnerships in Aboriginal and Northern communities and foster engagement in planning processes for an oil spill response operation.
The Government is taking steps to continue improving the tanker safety regime as energy exports are expected to grow and create many high-quality jobs in Canada. On March 18, 2013, the Government announced the
creation of the Tanker Safety Expert Panel to review Canada’s current tanker safety regime and propose further measures to strengthen it. The Panel was asked to conduct a pan-Canadian, evidence-based review and assessment of Canada’s tanker safety regime and to make recommendations to the
Government on the development of a world-class system. The review had two components: the first component focused on the regime currently in place south of the 60th parallel, while the second component was to address
The Panel submitted its first report on the regime south of 600 N to the
Government on November 15, 2013. The Panel made several recommendations regarding how the industry, communities and
governments could better prepare for and respond to oil spills, including through enhanced planning, improved response capacity and stewardship. The Panel also suggested regular reviews to promote continuous
improvement of the overall regime. The Government is carefully reviewing the Panel’s report and will present measures to respond to its recommendations in consultation with industry and Canadians.
Review of Pipeline Projects
Economic Action Plan 2014 proposes to provide $28 million over two years to the National Energy Board.
The National Energy Board is an independent federal agency established to regulate international and interprovincial aspects of the oil, gas and electric utility industries, including interprovincial and international pipelines.
Economic Action Plan 2014 proposes to provide $28 million over two years to the National Energy Board to review project applications, such as TransCanada Pipelines Limited’s Energy East Pipeline Project, within legislated timelines to provide timeline certainty and to enhance the Participant Funding Program. This funding will be fully cost-recovered from industry.
Energy East Pipeline Project
TransCanada Pipelines Limited’s 4,500 kilometre Energy East Pipeline Project would carry 1.1 million barrels of crude oil per day from Alberta and Saskatchewan to refineries in Eastern Canada. According to TransCanada Pipelines Limited, the project is expected to add $35 billion to Canada’s Gross Domestic Product over 40 years and create 10,000 direct jobs during the project’s development and construction phase.
Supporting Offshore Oil and Gas Development
Economic Action Plan 2014 proposes to permanently eliminate tariffs on mobile offshore drilling units used in offshore oil and gas exploration and development. The duty-free status of these units, which was scheduled to expire in 2014, lowers business costs by $13 million annually, improving the global competitiveness of Canadian energy projects, and increasing the potential for valuable resource discoveries in Canada’s Atlantic and Arctic offshore areas. This measure will provide important maintenance and repair
Supporting Jobs and Growth
Responsible Resource Development, Conserving Canada’s Natural Heritage, and Investing in Infrastructure and Transportation
Special Representative on West Coast Energy Infrastructure
In 2012, more than 30,000 Aboriginal people worked in energy, mining and forestry jobs throughout Canada. And equally important, innovative partnerships are being formed between Aboriginal communities,governments and the private sector to capitalize on the potential social and economic benefits offered by natural resource development. In March 2013, the Government appointed a Special Representative on West Coast Energy Infrastructure, Mr. Douglas Eyford, to engage with Aboriginal communities in British Columbia and Alberta on energy infrastructure development. The Government has made public the Special Representative’s final report and is closely reviewing the recommendations made in all four areas: building trust, fostering inclusion, advancing
reconciliation and taking action. The Government will present measures to respond to Mr. Eyford’s report.
Supporting First Nation Fishing Enterprises
Economic Action Plan 2014 proposes to provide $66.1 million over two years to renew the Atlantic Integrated Commercial Fisheries Initiative and the Pacific Integrated Commercial Fisheries Initiative.
The Atlantic and Pacific Integrated Commercial Fisheries Initiatives help integrate First Nation fishing enterprises into existing commercial fisheries, providing economic opportunities for First Nation fishermen and improving the overall management of fisheries on the Atlantic and Pacific coasts. The Initiatives support First Nation participation in decision-making processes to ensure they are directly involved in the responsible management of commercial fisheries.
To build on the progress achieved to date and to continue promoting the integration of commercial fisheries, Economic Action Plan 2014 proposes to provide $66.1 million over two years to renew funding for the Atlantic and Pacific Integrated Commercial Fisheries Initiatives.
Supporting Mining, Forestry and Agriculture
Mining, forestry and agriculture are important contributors to the Canadian economy. These sectors create jobs and prosperity, particularly in many rural Canadian communities. Economic Action Plan 2014 proposes to continue to support mineral exploration by junior companies and the forestry sector. The Government has also taken recent action to strengthen the agricultural sector.
Supporting Junior Mineral Exploration
Economic Action Plan 2014 proposes to extend the 15-per-cent Mineral Exploration Tax Credit for flow-through share investors for an additional year. Canada is one of the world’s leading mining nations and has had the largest global share of spending on exploration for non-ferrous minerals every year since 2002. According to the Mining Association of Canada, over 90,000 Canadians are employed in mineral extraction and mining support activities in communities right across the country.
Promoting the exploration of Canada’s mineral resources by junior exploration companies helps create jobs and economic development across the country. The 15-per-cent Mineral Exploration Tax Credit helps these companies raise capital by providing an incentive to investors in flow-through shares issued to finance mineral exploration. This credit is in addition to the deduction provided to the investor for the exploration expenses “flowed through” by the company that issues the shares. Since 2006, the Mineral Exploration Tax Credit has helped junior mining
companies raise over $5 billion for exploration. In 2012, over 350 companies issued flow-through shares with the benefit of the credit to more than 30,000 individual investors.
The credit is scheduled to expire on March 31, 2014. However, to support the mineral exploration efforts of junior exploration companies in a context of continued economic global uncertainty, Economic Action Plan 2014 proposes to extend the credit for an additional year, until March 31, 2015. It is estimated that the extension of this measure will result in a net reduction of federal revenues of $45 million over the 2014–15 to 2015–16 period.
Supporting Jobs and Growth
Responsible Resource Development, Conserving Canada’s Natural Heritage, and Investing in Infrastructure and Transportation
Supporting Canada’s Forestry Sector
Economic Action Plan 2014 proposes to provide $90.4 million over four years starting in 2014–15 to continue to support the Investments in Forest Industry Transformation program.
Canada’s forestry sector directly employs over 200,000 workers in all regions of the country, including in 200 communities that rely on the sector for at least 50 per cent of their economic base. First established in Budget 2010, the Investments in Forest Industry Transformation (IFIT) program has been successful in enabling Canadian forestry companies to lead the world in demonstrating the viability of innovative technologies that improve efficiency, reduce environmental impacts, and create high-value products from Canada’s world-class forest resources. For example, IFIT provided support to the Tolko Industries Ltd. mill in Meadow Lake, Saskatchewan, to develop the first facility in North America to use innovative technology to boost productivity by enabling the production of different types of oriented strand board on a single production line. Economic Action Plan 2014 proposes to provide $90.4 million over four years starting in 2014–15 to renew the IFIT program.
The Government continues to work with the forestry sector as it invests in innovative new products and pursues new markets for Canadian forest products.
Protecting Jobs in Eastern Canada’s Forestry Sector
Economic Action Plan 2014 proposes to provide $18 million over four years, starting in 2014–15, for early intervention to prevent the spread of spruce budworm in Atlantic Canada and Quebec.The spruce budworm is one of the most damaging insects for spruce trees in