Bill C-300 (Historical)

Corporate Accountability of Mining, Oil and Gas Corporations in Developing Countries Act

An Act respecting Corporate Accountability for the Activities of Mining, Oil or Gas in Developing Countries

The purpose of this enactment is to promote environmental best practices and to ensure the protection and promotion of international human rights standards in respect of the mining, oil or gas activities of Canadian corporations in developing countries. It also gives the Minister of Foreign Affairs and Minister of International Trade the responsibility to issue guidelines that articulate corporate accountability standards for mining, oil or gas activities and it requires the Ministers to submit an annual report to both Houses of Parliament on the provisions and operation of this Act.

Opposition Motion—Foreign Takeovers

[Gerry Ritz, Conservative, Battlefords—Lloydminster, SK]

Mr. Speaker, we will look forward to doing that in 30 days, when our legal requirements are up under the Canada Investment Act.

I would say to my hon. colleague on the other side that, from this government's perspective, every business is strategic that helps to drive the economy and create jobs. That is why we are dispirited when we see carbon taxes coming from the member's party; when we see support for Bill C-300, which would drive all our mining resources out of this country; and when we see the opposition talking about raising business taxes. That is why we get upset. That is why we feel that every business in this country is strategic.

[Gerry Ritz, Conservative, Minister of Agriculture and Agri-Food and Minister for the Canadian Wheat Board]

Mr. Speaker, it is a pleasure to stand and join my colleague, the Minister of Industry, in discussing, not so much the BHP bid and Potash Corporation of Saskatchewan, but the motion put forward by the NDP. The motion recommends that we change the way the Investment Canada Act would arbitrate these types of situations. It would also take away a lot of the end result decision making from the Minister of Industry. We are working under a legal precedent. However, if I remember correctly, this document first came about in approximately 1985, some 25 years ago, and everything should be updated. There is no doubt in my mind about that.

However, under the act, the Minister of Industry and government members, who are involved in whatever region that decision would have an impact upon, are constrained legally. I am distressed, to say the least, when certain members of the opposition, and I will not even bother to name them because they are inconsequential, bray at the moon and howl and scream when they know there are legally things that can and cannot be done. As a member of the democracy we call Canada and as a regional minister from Saskatchewan, when I look at the way some of the media and members of the opposition handled this I take affront to that. They went beyond the pale in their condemnations and their demands.

As we know, these companies are both major global players. Potash Corporation of Saskatchewan has holdings throughout the world, as does BHP, maybe on a different scale but similar in that they are international. The legislation is set out as it is because of market disruptions. Ripples that would go through the marketplace would send the incorrect and devastating signals to a lot of investors and so forth.

I commend the Minister of Industry, my Saskatchewan colleagues, the overall cabinet and caucus of this great government for keeping this interior. The ultimate decision rests with the Minister of Industry. However, I know, from the Saskatchewan caucus perspective, we had some 17 meetings with all the stakeholders, everybody who had a role to play or something to say on this matter. We entertained that, took it to heart and passed it along to the Minister of Industry to help him make this decision.

A lot of the discussion is all about politics. Certainly from the opposition side, I see that. When we go back and assess what those members have said and how they have done it, it was all about partisan politics. I think Canadians at the end of this will condemn them for that. Whenever the coalition decides to bring this government down and go to the polls, I think Canadians will remember the disrespectful way it handled itself in this instance.

Now this is a one-up situation. There is a lot of discussion about how this would impact negatively Canada's place in the world when it comes to outside investment. That is absolutely ridiculous. These are all adjudicated on a case-by-case basis. More will happen. It could be today, or tomorrow or next week. We do not know. However, in a free-market enterprise like Canada, a democracy and the rule of law, we are a welcome investment. Look at the strength of our dollar. Look at the way we have come through this recession. A lot of countries entertain investment in Canada because of that stability, and we welcome that.

However, we certainly reserve the right to judge each one of these on a case-by-case basis as per the net benefit clause as set out in the act. It is what is in the best interests of Canada moving forward.

I can speak from an agricultural perspective. With the marketing we have done around the world now, in country after country, working with industry, working with my provincial colleagues, opening markets, rejuvenating markets, Canada is becoming of age again on the global stage. It had been dropped for some time. We were not really getting out there and doing the job.

When we arrive in a lot of these countries, one of the first things we are asked is where we have been. The Australians, the Americans, the European Union, Brazil, and some of the emerging economies like China and India are aggressive marketers and are getting to be more so. They welcomed us being there. They recognized the safety and security of the food supply in Canada. Part of that safety and security is also on the input side. When we look at a strategic resource like potash, which is the basis for fertilizers and so on around the world, we do a tremendous job of supplying both potash and foodstuffs, in a lot of cases to the same countries, for example, China, India, Korea. These are great markets for our fertilizers, as well as our finished foodstuffs. It gives us a power and a strategic position in the global food supply to be a major supplier of both the inputs and our crop and livestock production.

From a strategic standpoint, we have that in spades in Canada.

Under the net benefit, having someone different mine it certainly does make a difference in that Australia is a major marketer of a lot of the same foodstuffs that Canada has. We are a volume producer and so is Australia. For it to be able to go to the Indies and Chinas of the world and say that it now controls their fertilizer too, I think would have had a very detrimental effect.

I know the Minister of Industry took all of that under advisement and it helped him and his department formulate the decisions they have taken. At this time and place, it is absolutely the right decision. There is no doubt in my mind whatsoever. I think the Saskatchewan people have recognized the great work done by my colleagues and the Minister of Industry on this file. I think they also recognize the questionable attitude of some of the members of the opposition in trying to make partisan politics out of this.

At the end of the day, the decision is based on the criteria that comes before the minister, straight up and that is it, and the right decision was made.

As we move forward, I am more than happy to have this debate about changing how we assess these because there will be more, not less. Canada is a land of wealth and riches. We have great raw materials. We have tremendous resource wealth. As we strive to open up our Canadian north, which we have done as a government, and secured that sovereignty there and as we look at our fresh water supplies and the growing demand around the world, we will have to come to grips with that demand from the rest of the world to either invest or buy outright these types of commodities.

At this time and place, we can say no because we do have some guidelines. Could they be better guidelines? Probably. We are looking at things that are in demand now that never were when this act was written in 1985.

I welcome the opportunity and the motion from the NDP. I take exception to some of the political undertones in it. The last line is an outright denial. I do not think we can do that in a free and democratic society in a global stage, where we are becoming and growing rightfully into a major player.

Some of this is couched in politics. That is what we do here and I welcome that. I love the rough and tumble of it. We get our elbows up in the corner. It is like a good hockey game. However, at the end of the day, there are rules and regulations and the referee is the Canadian people. They will adjudicate this deal. We are aware of the fact that a growing number of Canadian residents and a growing number of Canadian businesses, which are free traders, support this decision in the way it is written.

When I read editorials in certain papers and at certain authors who claim to be on the inside track, I wonder how they justify their stance to their subscribers and advertising purchasers. I also look through the lens of an opposition that votes for things like C-300, which in a global situation, and PCS and BHP Billiton are part of that, would condemn them and force them to continually fight a rear flank action with causes and situations that come up in some global outpost somewhere. We would have to shut down production on behalf of PCS and adjudicate that.

I also look at the opposition's stance on raising the tax on business. Part of what draws investment to Canada is that lower tax rate. All the opposition members stand in question period and condemn us for moving forward with tax cuts to business. They all go on about big business. However, the tax cuts pertain to little guys too. Every business in Canada is important. Businesses are the growth of the economy. They are the job creators. They are the engine of the economy. Everyone gets that.

Why do those members condemn tax cuts as we come out of the recession? We have seen net job growth in Canada, unlike our closest ally in the U.S. We see stability in our systems in Canada, unlike the turmoil in our closest partner, the U.S. We see a growing acceptance of Canada on the world stage. We see a growing acceptance that Canada can do more. I cannot understand their stance, other than it is a pure crass political situation. I condemn that, but I welcome the opportunity to have this debate.

Trade

[Lee Richardson, Conservative, Calgary Centre, AB]

Mr. Speaker, in this time of continuing economic uncertainty, our Conservative government is continually striving to create jobs, boost trade and open new markets for Canadian workers. We stand in contrast to the Liberal-led coalition that continually promotes policies that kill Canadian jobs, such as their support of Bill C-300 or their promise to cancel the purchase of F-35s.

Could the Minister of International Trade update this House on Canada's ambitious free trade agenda and how it will benefit Canada's economy?

Corporate Accountability

[Stephen Woodworth, Conservative, Kitchener Centre, ON]

Mr. Speaker, I wish to present a petition from about 50 residents of the Kitchener--Waterloo area who wish to draw the attention of the Government of Canada to alleged abuses of human rights and environmental degradation and who would have wanted the Government of Canada to consent to the expeditious passage of Bill C-300 and also create effective laws regarding corporate responsibility.

Sustaining Canada's Economic Recovery Act

[Jim Maloway, NDP, Elmwood—Transcona, MB]

Mr. Speaker, I agree with the hon. member that the government really has a lack of focus. It is confused. It lurches from misstep to misstep. The long form census is a really good example of that. I think the public are beginning to see this, but its confusion in some ways is exceeded by the confusion of the opposition party itself.

The member introduced Bill C-300 last week in the House, which we voted on, regarding corporate social responsibility for mining companies that operate in other countries. It was an excellent bill and his party had the ability to make it pass. Yet his leader had 30 members miss the vote so the bill would be lost. That gives a terrible message to people out there in the public who supported his bill, liked his bill a lot and wanted to see his party support him.

[John McKay, Liberal, Scarborough—Guildwood, ON]

Mr. Speaker, there is probably no member in this House who has more knowledge and authority on the issues he just spoke about. The member is very articulate in showing the relative and absolute decline in the influence of CIDA as far as our nation is concerned. It shows an absolute decline in numbers.

For whatever reason, we have chosen to deal with our deficit on the backs of the poor of this world. We have recently suffered a slap in international prestige before the United Nations. CIDA is a diminished force. Of course, there is what happened to Bill C-300 last Wednesday night. All of this makes us, in my judgment, a diminished nation.

I am interested in the hon. member's views on the diminished nature of CIDA going forward.

Potash Industry

[Tony Clement, Conservative, Minister of Industry]

Mr. Speaker, I thought I had heard it all in this place, but the member for Willowdale thinking she knows what is in the best interests of the MPs from Saskatchewan is certainly a new high or a new low, I am not sure which.

I would also remind the hon. member that if she wants to talk about people looking out for their own interests, the hon. member's party had 13 AWOL MPs for the Bill C-300 vote yesterday. That shows that the Liberals are trying to suck and blow at the same time, which is a typical Liberal tactic.

In our case, we will do the best thing for Canadians because that is what we do.

Bill C-300—Speaker's Ruling

[The Speaker, Peter Milliken]

I am now prepared to rule on the point of order raised on Monday, September 20, 2010, by the hon. Parliamentary Secretary to the Leader of the Government in the House of Commons concerning the need for a royal recommendation to accompany Bill C-300, An Act respecting Corporate Accountability for the Activities of Mining, Oil or Gas in Developing Countries, standing in the name of the hon. member for Scarborough—Guildwood.

I would like to thank the Parliamentary Secretary to the Leader of the Government in the House of Commons for having drawn this matter to the attention of the House as well as the hon. members for Scarborough—Guildwood and Mississauga South and the Parliamentary Secretary to the Minister of International Cooperation for their comments.

In raising this issue, the Parliamentary Secretary to the Leader of the Government in the House of Commons argued that Bill C-300 established a new, quasi-judicial function regarding Canadian companies engaged in mining, oil or gas activities in developing countries to be exercised by the ministers of foreign affairs and international trade. He also contended that the framework required to implement the provisions of the bill was not foreseen by the Department of Foreign Affairs and International Trade Act and that considerable expense would be required to put it in place. In supporting this point, the Parliamentary Secretary to the Minister of International Cooperation noted that during 2009 the World Bank had expended $3.3 million conducting what he described as “parallel investigations” to those he believed would be required by Bill C-300.

The hon. Parliamentary Secretary to the Leader of the Government in the House of Commons noted that in other cases, the Speaker had found that bills mandating an expansion of the functions of an existing department or agency required a royal recommendation. He referred in that regard to the ruling concerning Bill C-280, An Act to amend the Employment Insurance Act (Employment Insurance Account and rate setting) Debates, June 13, 2005, pages 6990-1, as well as to the ruling concerning Bill C-474, National Sustainable Development Act, Debates, February 11, 2008, but I will not cite the pages.

It is in that context that the Parliamentary Secretary to the Leader of the Government in the House of Commons maintained that the terms and conditions of the Department of Foreign Affairs and International Trade Act were therefore being altered by Bill C-300 and that funds would need to be appropriated to carry out the new function imposed by the bill. He concluded that for these reasons, a royal recommendation would be required for Bill C-300.

In his remarks, the hon. member for Scarborough—Guildwood asserted that the bill had been carefully drafted with a view to avoiding any requirement for a royal recommendation. He acknowledged that some reorganization of existing resources would be necessary, but that new resources would not be required.

The Chair takes very seriously the need to respect the requirements for a recommendation of the Crown to accompany any legislation requiring new expenditures. The Chair has therefore examined with care the details of Bill C-300, An Act respecting Corporate Accountability for the Activities of Mining, Oil or Gas in Developing Countries, as well as the precedents enumerated by the parliamentary secretary.

The case of Bill C-280, cited by the Parliamentary Secretary to the Leader of the Government in the House of Commons, involved the creation of a new employment insurance account outside the consolidated revenue fund. Bill C-474, to which he also referred, assigned new functions to the Commissioner of the Environment and Sustainable Development, including the assessing of provincial performance in the meeting of sustainable development goals, which was clearly a significant expansion of the existing mandate.

The Parliamentary Secretary to the Leader of the Government in the House of Commons was correct in saying that both Bill C-280 and Bill C-474 required a royal recommendation. In the first instance, the bill created an employment insurance account outside the consolidated revenue fund as well as several other proposals. These included lowering the threshold for becoming a major attachment claimant; setting benefits payable to 55% of the average weekly insurable earnings during the highest paid 12 weeks of the 12 month period preceding the interruption of earnings; reducing the qualifying period before receiving benefits; and removing the distinctions made in the qualifying period on the basis of the regional unemployment rate. From a mere listing of the measures in the bill, one must clearly conclude that the bill had the effect of authorizing increased expenditures from the consolidated revenue fund in a manner and for purposes not currently authorized.

As for Bill C-474, it sought among other things, to modify the mandate of a new independent Commissioner of the Environment and Sustainable Development. Specifically, it sought to develop “a national sustainability monitoring system to assess...the state of the Canadian environment, nationally and by province” as well as “...the national and provincial performance in meeting each sustainable development goal...” listed in the bill. There is no doubt that extending the commissioner’s mandate into the provincial arena was clearly a significant expansion of the existing mandate.

Thus, we are in agreement on the issues raised by these two bills, however, it seems to me that the situation presented by Bill C-300, the case now before the House, is not analogous to the circumstances just described.

Bill C-300 does require the Ministers of Foreign Affairs and International Trade to examine bona fide complaints concerning possible contraventions of the guidelines to be established under clause 5, but the bill is silent with respect to the manner in which such examinations are to be conducted. The respective ministers appear to have entire discretion in this regard. Furthermore, the Chair is of the view that the examination of such complaints is not a departure from or expansion of the current ministerial mandate under the Department of Foreign Affairs and International Trade Act to carry out such examinations. Bill C-300 may put forth more stringent requirements, but it does not expand the mandate per se. Hence, a parallel cannot be made to Bill C-474.

In addition, Bill C-300 does not actually call for the establishment of the quasi-judicial process referred to in testimony by departmental officials. Nor does it require that investigations be carried out in other jurisdictions. It may be that a reorganization of resources or even additional funds would be required, however, it appears these would be operational in nature. In short, there is little ground for comparison of Bill C-300 with Bill C-280 and Bill C-474.

Consequently, from a strictly procedural point of view, the Chair cannot find that Bill C-300 requires the expenditure of public funds for a new and distinct purpose. I therefore rule that there is no requirement that the bill be accompanied by a royal recommendation. The House may continue to consider it in accordance with the rules governing private members' business.

I thank hon. members for their attention.

Mining Industry

[Ed Fast, Conservative, Abbotsford, BC]

Mr. Speaker, the Liberal-NDP-Bloc coalition is attacking a key pillar of the Canadian economy. Bill C-300 would, among other things, subject Canadian mining companies to grievances lodged by foreign interests.

If the coalition has its way, many Canadian jobs will be lost in an industry that contributed $40 billion to Canada's economy in 2008 and which employs 351,000 workers. During the thick of the global recession, overseas contracts kept the mining industry afloat. At a time when the economic recovery is still fragile, why does the coalition want to make life harder for Canadian companies?

Unlike the coalition parties that simply want to score political points and jeopardize Canadian jobs, our government will continue to fight hard for Canadian working families.

Bill C-300--Royal Recommendation

[Jim Abbott, Conservative, Parliamentary Secretary to the Minister of International Cooperation]

Mr. Speaker, I am rising on a point of order regarding Bill C-300, An Act respecting Corporate Accountability for the Activities of Mining, Oil or Gas in Developing Countries, introduced by the member for Scarborough—Guildwood.

I recognize that my colleague, the Parliamentary Secretary to the Government House Leader, rose on another point of order on this bill earlier this week. This also prompted submissions by members for Scarborough—Guildwood and Mississauga South.

I would like to submit my arguments as to why this bill would require a royal recommendation in order to proceed to third reading.

The member for Scarborough—Guildwood submitted that we have been at this bill now for some 13 or 14 months and here we are at the last minute raising the issue of royal recommendation. I would like to point out that it was not until the last possible opportunity that the member put forward amendments to his bill. None of these amendments address the need for royal recommendation so now we are faced with a bill that should not proceed.

Standing Order 79(1) reads as follows:

This House shall not adopt or pass any vote, resolution, address or bill for the appropriation of any part of the public revenue, or of any tax or impost, to any purpose that has not been first recommended to the House by a message from the Governor General in the session in which such vote, resolution, address or bill is proposed.

Mr. Speaker, as you are no doubt aware, as we see in the Journals from November 9, 1978, the imposition of new duties on an existing department or authority requires a royal recommendation. Bill C-300 clearly assigns new duties to the Minister of Foreign Affairs and International Trade.

On September 27, 2006, you ruled a particular bill acceptable because you could not speculate on the functions that the legislation would force the government to disburse. Fortunately, in this instance, you need not speculate. Section 4 starts by saying:

In carrying out their responsibilities and powers under this Act, the Ministers shall--

It is obvious and does not require speculation that this bill attempts to ascribe new responsibilities and powers to the Minister of Foreign Affairs and International Trade.

On November 9, 2006, Mr. Speaker, you ruled another bill needed a royal recommendation because it extended a program that would require funding. Bill C-300 required disbursement of funding in order for the ministers to carry out their duties ascribed to them.

I point out that I have information in hand that says that the World Bank's parallel investigations, for example, which is exactly what this bill is calling for, cost $3.3 million in 2009 to investigate 11 new complaints. Mr. Speaker, I submit that fact for your consideration as well.

We had the opportunity to hear expert testimony from our bureaucrats at DFAIT. Allow me to read into the record the testimony from the Standing Committee on Foreign Affairs and International Development meeting of December 1, 2009:

[The member for Kootenay—Columbia]: I want to be careful that I'm not putting words in your mouth. I believe, in answer to a question of Mr. Patry, your response was that in your judgment it would require a new section or arm or department, which would require additional human resources or financial resources. Is that correct?

Mr. Grant Manuge: Yes, that is correct.

Further I asked:

Presuming that there is a finite amount of money in DFAIT's budget, which there is, where would you take those dollars from? What department or current function that DFAIT is doing would have to suffer? Or in fact would it be possible to do it without having to come to the Treasury Board for additional funds?

Mr. Grant Manuge representing DFAIT said:

Thank you for your question. In this case, at this stage in our analysis, we are indeed aware that additional resources would be required, not only human resources, financial resources, but also significant investment in training or in recruiting highly qualified individuals who provide the competencies that would be required to carry out that function.

At this point in our analysis, we would not be in a position to indicate whether that could be addressed through reallocations within our department, but our departmental resources are completely allocated, so this would be a decision that would have to be reviewed very carefully. As you say, there could potentially be impacts on the ability to carry out our mandate in other areas of the department.

Mr. Speaker, I recognize that you face a rather challenging situation in taking a look at the provisions relative to a royal recommendation, and that is it is not crystal clear that additional funds will be required. I am fully aware of that. If we take a look at the fact that we know from the World Bank that it cost $3.3 million last year to investigate 11 complaints, in the name of logic it is very obvious that additional funds will be required.

It is clear that this bill would directly affect the disbursement of public funds. It would assign new duties to an existing department where funds have already been allocated and functions have already been described for that department.

I realize there is often a good deal of discussion regarding royal recommendations. However, it is the Speaker who is duty-bound to protect the Constitution through the Standing Orders of the House and to assure that bills that should require royal recommendation do not proceed.

I would also like to quote from Hansard, June 1, 2006:

I am also aware that a bill may be repaired at committee or during report stage and also that a minister at any point in the legislative process can come forward. That is not a problem and I believe the member for Scarborough--Guildwood has a bill on international development which I think can be repaired in that fashion.

Clearly, the bill has not been repaired. Bill C-300 is the current version of the legislation to which I reference. The bill was recognized by the member for Mississauga South as needing a royal recommendation at that time.

The clauses in Bill C-300 still stand. The need for a royal recommendation still stands, even though the member for Mississauga South has apparently changed his mind. Fortunately, he is not the Speaker of the House.

It is clear that even at a time the Liberals realized this bill needed a royal recommendation or amendments to address the problem. That was a matter of a year ago.

The precedents are clear. The member for Mississauga South was clear in 2006. Without amendments addressing this issue, Bill C-300 does require a royal recommendation.

Mining Industry

[John McKay, Liberal, Scarborough—Guildwood, ON]

Mr. Speaker, I have the honour to present a petition signed by a number of residents from London, Ontario, and a number of residents from Regina, Saskatchewan, with respect to the issues of Canadian mining companies.

The petitioners wish to draw to the attention of the Government of Canada that the alleged abuses of human rights and degradation of the environment by Canadian mining companies are a violation of the principles of fundamental justice. The petitioners feel it is the duty of Parliament to hold Canadian companies responsible for their activities when operating in foreign jurisdictions.

The petitioners ask the Government of Canada to create effective laws with respect to corporate social responsibility and to consent to the expeditious passage of Bill C-300.

Corporate Social Responsibility

[Brian Masse, NDP, Windsor West, ON]

Mr. Speaker, I am honoured to present a petition from petitioners in the Windsor-Essex County area with regard to corporate responsibility.

The petitioners are asking that Canadian mining companies observe and be responsible in relation to human rights as well as the environment, making sure there is no degradation. They call upon the government to do two specific things: first, to create effective laws regarding corporate social responsibility; and second, to pass Bill C-300.

I am proud to say that the originator of this work was Ed Broadbent, who brought it to this chamber.

Mining Industry

[John McCallum, Liberal, Markham—Unionville, ON]

Mr. Speaker, the second petition is signed by approximately 400 individuals who wish to create effective laws regarding corporate social responsibility, particularly in the area of mining. They ask that we consent to the expeditious passage of Bill C-300.

[John McKay, Liberal, Scarborough—Guildwood, ON]

Mr. Speaker, this is a petition signed by quite a number of folks in Canada, calling the Government of Canada's attention to alleged abuses of human rights and degradation of the environment by Canadian mining companies.

Whereas the petitioners feel that it is a duty of Parliament to hold Canadian companies responsible for their activities when operating in foreign jurisdictions, the petitioners humbly call upon the Government of Canada to do the following: create an effective series of corporate social responsibility laws and consent to the expeditious passage of Bill C-300.

Corporate Social Responsibility

[John Duncan, Conservative, Vancouver Island North, BC]

Mr. Speaker, I have the honour to present two petitions on the same subject. The petitions represent about a hundred of my constituents. They strongly support Bill C-300, An Act respecting Corporate Accountability for the Activities of Mining, Oil or Gas in Developing Countries.