Evidence of meeting #23 for Foreign Affairs and International Development in the 40th Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was abdelrazik.
A recording is available from Parliament.
3:55 p.m.
Bloc
Johanne Deschamps Bloc Laurentides—Labelle, QC
Talk to us about Bill C-300. We have not had the opportunity to hear you speak on that bill. You were invited here for that reason.
Do you have an opinion?
3:55 p.m.
Sara Wilshaw Director, Trade Commissioner Service Support, Department of Foreign Affairs and International Trade
Not so much as bureaucrats do we have opinions about it, but rather we've tried to look at it from the point of view of how it could be implemented, how it would function. I think from that perspective there were a number of points on which we thought we needed maybe additional clarification. And there were some things we were not sure about how they would work. So I think we've looked at it from that perspective.
Does that answer your question? I'm not sure what your question exactly was in terms of Bill C-300.
3:55 p.m.
Conservative
The Chair Conservative Kevin Sorenson
Because we're out of time on this round, maybe some of those points will be drawn out from others here.
Mr. Abbott, please.
June 1st, 2009 / 3:55 p.m.
Conservative
Jim Abbott Conservative Kootenay—Columbia, BC
Thank you.
Thank you to our witnesses.
I think one important thing to say before we get into any questions is that I don't believe there is one single, solitary person in this room, possibly in Ottawa, possibly in Canada, who does not want to see corporate social responsibility. The question is, how do we arrive there? That is the question.
With that in mind, I'm wondering if you could give us an idea.... Because of the reputation that Canada holds as a leader in human rights and our promotion of that, we want to be out on the leading edge. But I am curious, to your knowledge are there any countries that have adopted mandatory regimes for CSR in the world at this point?
3:55 p.m.
Director, Trade Commissioner Service Support, Department of Foreign Affairs and International Trade
To the best of my knowledge, Danish legislation requires mandatory CSR reporting for companies of a certain size. Some countries require a certain percentage of revenues to go towards CSR activities. That's the extent of CSR legislation around the world, as far as I know. Generally speaking, CSR is not legislated, partly because it's so vast. It covers environmental issues, labour issues, and human rights issues. In this country, it requires a number of shared jurisdictions between the provinces and the federal government, so it's very difficult to legislate as a whole. There is also the question of companies operating overseas, which could result in an extraterritorial application of the law.
4 p.m.
Conservative
Jim Abbott Conservative Kootenay—Columbia, BC
I'm trying to get at the idea behind Bill C-300. I'm not trying to be pejorative. I'm just trying to describe what I see here. We're talking about various ways that the government, through its agencies or crown corporations, can bring pressure on corporations. Is there an equivalent to that elsewhere?
4 p.m.
Director, Trade Commissioner Service Support, Department of Foreign Affairs and International Trade
No, sir.
4 p.m.
Conservative
4 p.m.
Director, Trade Commissioner Service Support, Department of Foreign Affairs and International Trade
Yes, sir.
4 p.m.
Conservative
Jim Abbott Conservative Kootenay—Columbia, BC
Under the current regime, there will be reviews of parties concerned, a report on the website, a report to Parliament, and a written record that will be made public. Subclause 4(6) of Bill C-300 says that “the Ministers shall publish in the Canada Gazette the results of any examination undertaken pursuant to this section within eight months following receipt of the complaint.”
It strikes me that this provision of Bill C-300 is pretty well a carbon copy of what currently exists. What Bill C-300 does is take it to the next level—it anticipates how these crown corporations would react.
4 p.m.
Director, Trade Commissioner Service Support, Department of Foreign Affairs and International Trade
Yes. What distinguishes Bill C-300 is that it creates a mandatory set of guidelines, whereas CSR in international circles is generally understood to be voluntary, with different applications for different companies in different places. It is broadly accepted to be voluntary. In this case, these would be mandatory guidelines, with consequences for non-compliance.
4 p.m.
Conservative
Jim Abbott Conservative Kootenay—Columbia, BC
In other words, there is a lack of flexibility with respect to the local situation. Is that a fair assessment?
4 p.m.
Director, Trade Commissioner Service Support, Department of Foreign Affairs and International Trade
I wouldn't be able to judge that.
4 p.m.
Conservative
Lois Brown Conservative Newmarket—Aurora, ON
Thank you, Mr. Chair.
And thank you for being here this afternoon.
We heard from Mr. Rae last week that Bill C-300 would create a very litigious situation. I think this should concern all of us. What I'm hearing from you today is that the Canadian government has been proactive in putting together this Advantage Canada and that we are in the process of putting together guidelines. I think that's a positive step. What I'm also hearing from you today is that there is a symbiotic relationship between CIDA and some of the companies going into countries. There is a cooperative effort going on.
If there is a complaint against a company, and many of these Canadian companies are part of our Canadian Pension Plan Investment Board, would there be any influence on whether these companies would be able to get insurance later on? If so, what impact would that have on them as a company?
4:05 p.m.
Director, Trade Commissioner Service Support, Department of Foreign Affairs and International Trade
I'm sorry, can you clarify a bit? Is that their ability to get insurance through EDC?
4:05 p.m.
Conservative
Lois Brown Conservative Newmarket—Aurora, ON
Well, through anyone. EDC would be one of the insurers.
If a complaint is brought forward, will that impact the ability of those companies to get insurance?
4:05 p.m.
A voice
Yes.
4:05 p.m.
Director, Trade Commissioner Service Support, Department of Foreign Affairs and International Trade
I wouldn't want to speculate on whether or not other institutions would follow suit, but certainly EDC would be placed, I think, in quite a great deal of difficulty.
4:05 p.m.
Conservative
Lois Brown Conservative Newmarket—Aurora, ON
Which means that any of their further involvement in that country would be at risk.
4:05 p.m.
Director, Trade Commissioner Service Support, Department of Foreign Affairs and International Trade
Possibly.
4:05 p.m.
Conservative
The Chair Conservative Kevin Sorenson
Who's next?
Mr. Goldring, you only have about 20 seconds, so we'll come back to you.
Mr. Dewar.
4:05 p.m.
NDP
Paul Dewar NDP Ottawa Centre, ON
Thank you, Chair.
Thank you to our guests.
I've been parsing out what we have from the government and what's proposed in Bill C-300. I note that there is an issue with the government's proposal where....
It takes two to tango, if you will, and it takes two to make the process really fulsome, correct? In the bill that has been proposed by Mr. McKay, there is an oversight to ensure that both sides comply, if you will. Is that your reading of it, that both sides participate?
4:05 p.m.
Director, Trade Commissioner Service Support, Department of Foreign Affairs and International Trade
I haven't read in here anything that would compel participation.