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* Endless debate on projects is unacceptable – minister

* Environmental measures included in omnibus budget bill

* Opposition says inclusion undermines political debate

OTTAWA, May 7 (Reuters) – Canadian government measures to

speed up environmental approvals for pipelines and other major

projects are crucial to help expand the economy and boost

employment, Natural Resources Joe Oliver said on Monday.

“The need for this legislation is urgent,” Oliver told

reporters outside the House of Commons. “The world will not

stand by and wait while Canada endlessly deliberates the merits

of its resource potential and squanders its legacy.”

The environmental measures have been folded into an omnibus

budget implementation bill, drawing sharp criticism from

opposition parties and environmental groups who say the move

would short-circuit political debate.

“There is no transparency, no accountability,” Nathan

Cullen, House leader for the opposition New Democratic Party,

said as he asked the Conservative government to separate out the

environmental components from the budget bill.

In his remarks to reporters, Oliver said a finance

subcommittee would be set up to deal separately and openly with

the measures for what the government calls “responsible resource

development.”

Finance Minister Jim Flaherty defended the inclusion of

diverse issues in the budget legislation. “A large budget begets

a large budget implementation bill,” he told the House.

The Conservatives say the current regulatory system is too

complex and can lead to development projects being held up for a

decade or more, but ecologists say anything less risks serious

damage to the environment.

Citing estimates from the Canadian Energy Research

Institute, Oliver said proposed pipeline expansion and projected

oil output increases would generate 700,000 jobs on average over

the next 25 years and add C$3.3 trillion ($3.3 trillion) in

economic activity.

($1=$0.99 Canadian)

(Reporting by Randall Palmer; Editing by Frank McGurty)