Bill C-486 (Historical)

Conflict Minerals Act

An Act respecting corporate practices relating to the extraction, processing, purchase, trade and use of conflict minerals from the Great Lakes Region of Africa

This enactment requires Canadian companies to exercise due diligence in respect of the exploitation and trading of designated minerals originating in the Great Lakes Region of Africa in seeking to ensure that no armed rebel organization or criminal entity or public or private security force that is engaged in illegal activities or serious human rights abuses has benefited from any transaction involving such minerals.

The House resumed from April 3 consideration of the motion that Bill C-486, An Act respecting corporate practices relating to the extraction, processing, purchase, trade and use of conflict minerals from the Great Lakes Region of Africa, be read the second time and referred to a committee.

Conflict Minerals

[Paul Dewar, NDP, Ottawa Centre, ON]

Mr. Speaker, I have a petition regarding the war in the Congo that has been raging since 1998, where 5.4 million people have been killed and where rape is being used as a weapon of war. The petitioners are calling upon Parliament to pass the conflict minerals act, Bill C-486. The petitioners are from the Ottawa region, including Kanata. They want the government to pass Bill C-486 to stop the revenues that are going to these militias who are creating so much conflict in the region of the DRC.

Corporate Social Responsibility of Extractive Corporations Outside Canada Act

[Charmaine Borg, NDP, Terrebonne—Blainville, QC]

Mr. Speaker, I would first like to congratulate my colleague from La Pointe-de-l'Île on introducing this bill.

This issue has been troubling me for a long time on a personal level. I did my studies with a specialization in Latin America. We often studied cases about mining companies going to developing countries, in very poor communities in particular. They built mines and promised many jobs to the locals. However, they did not talk about the negative consequences, such as the displacement of people. They did not talk about the environmental damage caused by the mines.

I am also very pleased to be able to speak to this bill for another reason, even though I have only a couple of minutes. I had the honour of working with my colleague from Ottawa Centre on Bill C-486, seeking to regulate the mining sector and dealing with conflict minerals in the region of the Congo. By bringing all these bills together, we can right the wrongs. We are putting in place a social responsibility system for extractive sector corporations.

I would very much like to talk about this some other time.

[Paul Dewar, NDP, Ottawa Centre, ON]

Mr. Speaker, I want to thank my colleague for bringing this legislation forward. I was delighted to second the bill.

I want to pick up on what my colleague from the Liberal Party said. I am heartened to hear that the Liberal Party supports this legislation.

The last time we debated similar legislation put forward by the member's colleague from Scarborough—Guildwood, the Liberal Party unfortunately did not support it entirely. At the time, the Liberal leader and some members of the front bench could not find a way to support Bill C-300, so I am glad the Liberals will be supporting sending the bill to committee.

These are really important initiatives. We have already had an overview of what the bill proposes to do, but for those members who are hearing about this legislation for the first time, it essentially says that Canadian companies doing business abroad should more or less follow the same rules that they follow here. That is essentially the theory around this legislation and that is what the round table came up with.

The round table, as has been mentioned, included members of civil society, industry, and government. Ed Broadbent, who formerly represented my riding, was very much a part of moving that forward.

Then Alexa McDonough had a bill similar to the one we are debating now; I also had a similar bill, and my colleague from Scarborough—Guildwood put forward Bill C-300. We have had a lot of debate and discussion.

The government has said that it has acted. It has talked about its CSR counsellor being in place. The government felt that this was taking care of people's concerns about the behaviour of Canadian extractive companies abroad. However, when that position was created, we all noted that the position was actually toothless.

It is important to note the title of counsellor, not ombudsman. When complaints came in, the counsellor did not have the power to investigate them. The problem with the counsellor position was that it was incumbent upon both parties, the party making the accusation and the company, to accept an investigation. To no one's surprise, there were not many investigations. The CSR counsellor was not effective at all.

My colleague has brought this issue back to the House of Commons. It is fantastic to see the progress that has been made because of civil society. It really should be noted that civil society has incredible leverage, particularly when it comes to both foreign policy and domestic policy. Development and Peace and unions such as steelworkers that are involved with extractive companies have been front and centre in making this issue known to Canadians and to politicians. They want them to move forward, and they have not let up. They want Canada to be smart about what we do abroad and proud of what we do abroad. That way Canadian companies abroad are seen as responsible actors.

Development and Peace, the faith communities, unions, and everyday Canadians have been carrying this flag and making sure that we do not lose sight of this issue. It is terrific that my colleague has taken it up. She is carrying on the work that was done before.

I also want to acknowledge the change in mindset of the mining sector. In particular, for the record, I want to cite the Mining Association of Canada. This organization has written to government to advocate what we heard from my Liberal colleague, which is to bring in regulations on what we call “publish what you pay”, meaning that the transactions that any company does abroad would be made public. They want to see consequences if companies do not make those transactions public.

The government has said it is consulting on this issue, but industry is ahead of government. What is going on here? We need to get the government to listen more carefully, not just to Canadians but to industry as well. The government has to get on board and get moving on this issue.

I will read what the association said on this issue. It was noted, and I will not be surprising some members, that there was a bit of tension between industry and civil society representatives on the last iteration of this legislation, Bill C-300.

Here is what the Mining Association of Canada is saying in a letter to government:

The function of the Office of the CSR Counsellor should...be focused on the “front end” [at the beginning of the process] of any request for a review...to clarify the issues and the guidelines involved, to encourage the parties to address the issues through direct dialogue under local-level mechanisms, and to advise parties on the implementation of the guidelines. MAC believes companies will be motivated to participate in this front end of the process, as they have participated in the initial stages of the requests for review brought to the Office to date, and as an alternative to other, more formal forms of review.

It goes on to say, and here is the important part:

This first step is essentially to determine the nature of the dispute and whether mediation could be effective in resolving it. In MAC's view, this first step should be mandatory: a company's refusal to participate in this front-end process should have as a consequence a loss of public support for the proponent's project by the Government of Canada's Trade Commissioner service.

It is industry that is saying this. This is progress. This is the Mining Association of Canada acknowledging that collectively the industry has a responsibility to engage when there are concerns and complaints about activities on the ground.

The government says that somehow this is not in its domain. It is extra-territorial. It cannot be involved in these things, et cetera. Industry is saying no; we need to be engaged.

We have seen incredible advancement. We have seen engagement. What we need to see from government is to be at least at the same level as industry and adopt these measures that have been put forward.

The reason is that, when we see mining operations abroad—and we see it, frankly, here in Canada and we see it with gas and oil as well—and the fact that companies can make a profit from mining, no one has a concern around that. However, when we see that people's human rights are abused or that the environment on which they rely is being negatively affected and they feel they have no voice at all, what are their choices? I have Bill C-486 before the House on conflict minerals,

When mining companies, extractive industries, or oil and gas companies are abroad, they are not just any companies; these are Canadians companies, and there are certain values and responsibilities, I will say, that go with that.

We have heard stories of mining companies hiring security firms to clear the land, so anyone who protests any of the developments is cleared off the land and sometimes people are killed. This is extraordinarily troubling for many of us, but the question is, what are we going to do about it? Will we just continue to listen to these grievances, or will we act?

That is why the bill is so important. It says that there is a responsibility for the Government of Canada to have an objective person to oversee the concerns that may arise because of our activity abroad.

CSR is a great term. The problem I have noted over the last number of years is that it seems to only apply in-house to business and the corporate side. Frankly, I think it is quite obvious to many that it should be something that government adopts, that the cornerstone of part of our trade policy and our foreign policy should be corporate social responsibility, and the Canadian government should ensure this happens.

We just had some great debates in our foreign affairs committee about what happened in Bangladesh with the Rana Plaza collapse. Over 1,000 people died a year ago, on April 24. Why? It was because there were not proper standards and because the integrity of the building was not kept up. What happened? We saw 1,100 people die, many of them children, most of them women.

We can do better. We need to have oversight. The bill is a reasonable offer. We can make sure that when Canadian companies are operating abroad, we can say in good faith that they are following the same values and the same regulations that we want to see them follow here.

I would ask the government to at least look at what is being proposed and see if we can improve it, so that we can be proud Canadians when Canadian companies are operating abroad.

Conflict Minerals

[Paul Dewar, NDP, Ottawa Centre, ON]

Mr. Speaker, I have a petition signed by Canadians from right across the country who want the government to pass Bill C-486, known as the conflict minerals act. They note that since 1988, over five million people have died in the conflict in eastern Congo and that by bringing in supervision and supply chain regulations for conflict minerals, this could help end the conflict. They want to see the government adopt Bill C-486.

[Charmaine Borg, NDP, Terrebonne—Blainville, QC]

Mr. Speaker, the second petition calls on the House to support Bill C-486, which I had the honour of supporting. It calls on all members of the House to support this bill, which will put an end to conflict minerals.

[Paul Dewar, NDP, Ottawa Centre, ON]

Mr. Speaker, I am pleased to present a petition today on behalf of Canadians right across the country, everywhere from Ottawa to Gatineau, Montreal, Calgary, Saskatoon and Toronto.

The petitioners call upon the government to adopt Bill C-486, a private member's bill put forward on conflict minerals. They want Canada to take a stance and end the revenue streams for the militias that right now are responsible for heinous human rights violations, including rape and using rape as a weapon of war.

Conflict Minerals Act

[Deepak Obhrai, Conservative, Parliamentary Secretary to the Minister of Foreign Affairs and for International Human Rights]

Mr. Speaker, it is a pleasure for me to rise and speak to Bill C-486 put forward by my colleague from Ottawa Centre.

I have been working with the member opposite since 2006 in various capacities, on the foreign affairs committee and everywhere. He is extremely passionate about this issue and has been standing up and fighting for a way to stop this conflict. In principle we all agree with him. We agree that the mineral conflict is absolutely atrocious. It is so atrocious that it is unbelievable, and this is the right approach to take. Therefore, his passion for this issue is to be commended.

However, my colleague from Cypress Hills—Grasslands indicated why this particular bill is a problem.

Let me take one step back and tell the House why I agree with the member for Ottawa Centre as to the need to address this issue.

A few years ago, I went to the Great Lakes Region in the DRC. I was leading the friends of the Great Lakes Region who were working toward bringing development into the process.

I landed in Goma in the evening by way of a small aircraft. Goma is in the eastern province where all of the fighting is taking place. Due to the volcanic explosion, the runway was cut in half; it was not cleared and so it was very small. Early the next morning I met with the civil society. I was not far away from the airport, and every 10 minutes I could hear an airplane taking off. Having been an air traffic controller myself prior to coming here, I had to wonder where all these aircraft were going. Half the runway was not there; no commercial flights were coming into that airport. These aircraft were smuggling the minerals out of DRC, what we now know as conflict minerals. They were constantly going out of that country.

I have seen first-hand what a devastating impact this can make to a country's economy. It is up to the international community to settle this issue because of the armed conflicts we have talked about and the horrendous human rights abuses that have taken place in the DRC area a result of armed gangs that are making money out of this illegal business, in co-operation with others over there. Of course we saw that and so we brought in the Kimberley Process as one way of addressing this issue.

We must continue, because the business of conflict minerals still carries on. It has not stopped. Groups use these minerals for money for funding. In Afghanistan, the Taliban use drugs to buy arms, which are creating havoc there. In Colombia, the FARC regime does the same thing. Wherever there is armed conflict, funds are obtained illegally. In this case, the funds are obtained through illegal mining. Henceforth, it is everyone's responsibility.

As my colleague has said, the bill presents a problem for us. Canada has recognized that this was one of the key things that are part of the Kimberley Process. We went ahead and brought in reporting procedures. We worked with the international community and brought in the office of the ombudsman on a voluntary basis. We tell our own companies about their corporate social responsibility. In turn, Canada has a very good record.

How do we address this issue? We address this issue by working together with all the international communities to stop it, but we must also be very careful that our actions do not harm the areas we are trying to help. In this case the bill has the potential to harm the DRC, because its focus on the DRC will stop investment from coming there.

What is important is to try to help the DRC to build capacity, to build a mining industry that is beneficial to their own citizens, as Canada and other countries have said. It is very difficult at this stage, due to armed conflict and regional issues, but as we know, Canada is working with the regional countries, with Uganda and Rwanda as well as the United Nations and the ICC, to stop the war in that part of the region, and there have been many successes.

We are very happy to see that the African Union and the countries of the region have taken dramatic steps by providing soldiers and resources to stop this warring, as well as by working with the United Nations to bring those who are responsible for leading the conflict in those areas to justice before the international tribunal court and through other means.

This is one aspect that we are working on. Once we bring peace into that region, the Government of Canada's role over there is to help these countries build their capacity for their own citizens.

Of course, that does not mean that we will close our eyes and say we will wait until that happens. Of course, we have to do something, and our government has been very clear about what we have done. For example, we have brought in more voluntary approaches through several Canadian companies that are members of the World Gold Council.

We have already taken strong action in DRC by establishing five mineral trading centres in eastern DRC where they can sell the gems. The NGO that came in is working very hard for those miners who are working legitimately. There are small-scale miners in DRC who are legitimately mining over there. We want to help them go through this whole process. We do not want to create a reporting process where this year miners would be penalized.

We are taking these kinds of steps to help them out. We are working with OECD. We are stakeholders, and we will continue supporting this whole process.

I want to say to my friends that yes, we have to do something about it. Yes, we must bring something there. Yes, attention needs to be paid. However, we must also be sure that when bills do come forward, they take the right approach. My good friend bringing this bill has brought out the American side here, but we are still not yet very sure, because the reporting process has not yet been done, whether that is the right approach. However, let us work together on these things.

Although we do not agree on the bill for the reasons mentioned by my colleague, I can assure him that in principle we stand with him in making sure that the mining is done for the benefit of the local people, and not for the armed conflict that brings horrendous damage.

[Ève Péclet, NDP, La Pointe-de-l'Île, QC]

Mr. Speaker, I am very pleased to rise in the House today to speak to Bill C-486 regarding conflict minerals from the Great Lakes Region of Africa.

It is important to point out that, for years now, the NDP has been advocating for an extractive sector that is not only transparent, but also socially and environmentally responsible, both here and abroad.

I wish to commend my colleague from Ottawa Centre for all his hard work on this issue. He has been leading this fight for several years on behalf of those who have been suffering because of this appalling situation. Therefore, on behalf of those people and the NDP, I would simply like to thank him for working so tirelessly on this issue for so many years.

The conflicts plaguing the Great Lakes Region are beyond horrific; they are both a human and a humanitarian tragedy. These conflicts have displaced over 2 million people in the Democratic Republic of Congo alone. We are not even talking about the countries bordering the Great Lakes Region. Some 5.4 million people have been killed. It is very serious. Millions of women and children have become victims of sexual violence as a result of these conflicts. According to reports, 48 rapes are committed every hour.

When I first came to Parliament, I moved a motion at the Subcommittee on International Human Rights to examine the use of rape as a weapon of war in the Democratic Republic of Congo. That report should be finished soon. According to the evidence I heard, the situation is catastrophic.

This human tragedy is not new; it has been going on since the 1990s. The conflicts began in 1998. The UN has adopted a number of resolutions, including resolution 1493, adopted in 2003, which allowed it to increase the military strength of the peacekeeping mission that was created in the late 1990s to protect the civilian population of the Democratic Republic of Congo. There is also resolution 1596, adopted in 2005, which expanded the arms embargo to include all of the Democratic Republic of Congo.

The conflict is so serious that the African Union and the UN have had to adopt resolutions. Therefore, the least Canada can do is get involved, along with our allies, to put an end to this tragedy.

When I say that this is a human tragedy, I am not talking about just the deaths and rapes, but also about the instability and food insecurity. The war is completely destroying the land and the crops.

The Interim Report of the Panel of Experts on the Illegal Exploitation of Natural Resources and Other Forms of Wealth of the Democratic Republic of the Congo, released on May 22, 2002, by a panel of experts commissioned by the UN Security Council, stresses the terrible human impact on the population of these practices, which have humanitarian consequences.

There are terrible conditions marked by rape, violence and death, but there is also food insecurity. Thus, it is both a human and a humanitarian tragedy. It is time for Canada to take action. It is often said that Canada wants to take action on matters of international co-operation, but this is a humanitarian tragedy.

These are armed conflicts, but most of the victims are women and children. It is a humanitarian tragedy. We should do everything we can to prevent these conflicts from creating any more victims.

The illegal mining and sale of minerals are the main source of instability, both political and humanitarian, and also the main source of funding for these conflicts. The exploitation of resources in this region is so problematic that it is important for people to open their eyes. So, too, should the government, civil society and the corporate world. It is very important to realize that we cannot do business in such a vulnerable and unstable region without adopting very strict guidelines to ensure that there are no consequences for the people.

My colleague from Ottawa Centre mentioned that we are talking about $140 million to $225 million in illegal revenue. That is a lot. It accounts for 95% of the revenue of the armed rebel groups that unfortunately continue to commit atrocities.

Half of the mines in the eastern part of the Democratic Republic of Congo are controlled by armed groups. All of the big mines are, except one. That is important to know. Since the people in the Great Lakes Region of Africa rely on mining operations, we need to ensure that they can earn a living in spite of the conflict. These mines need to be operated by the people, for the people, and not to fund conflicts that have absolutely nothing to do with civil society or the Congolese people.

There is certainly no chance for fair trade in a region like this one unless some extremely strict guidelines are adopted. That is what companies are trying to do right now. As my colleague already mentioned, BlackBerry, Microsoft, Apple and Nokia have already adopted measures to avoid using conflict minerals. However, it is important for Canada, as a country that participates in these peacekeeping missions, to send a clear message that we understand the problem, we care about it and we will do everything we can do help the people of the Great Lakes Region.

Canadians want to be able to have confidence in their products, and they also want to have confidence in companies. This is about people having the freedom to benefit from their own resources. They have been suffering for years. Canadians need to be able to have confidence in their products and know that their cellphones have not funded the death of thousands of people. It is only natural. Canadians and companies understand that. It is time for the government to reach out.

By the way, I would like to mention that my colleague from Ottawa Centre introduced Bill C-486 and, following his example, I introduced Bill C-584, which would create an ombudsman for the corporate social responsibility of extractive corporations. The NDP truly wishes to ensure that companies that extract mineral resources in developing countries are both socially and environmentally responsible.

[David Anderson, Conservative, Parliamentary Secretary to the Minister of Foreign Affairs]

Mr. Speaker, it is good to be able to rise to speak to the issue of conflict minerals and the role Canada is playing on the international stage to address this problem.

First, I want to thank the hon. member of Parliament for Ottawa Centre for drawing attention to this important issue.

As outlined in the preamble to his bill, the Government of Canada has been active for many years in advancing initiatives designed to address that nexus between natural resources and conflict. One of his colleagues asked a few minutes ago about the role that Canada has played. One of the places we have played an important role is at the OECD with its due diligence guidance document, which has been put in place and is now gaining international acceptance.

I am pleased to say that this government agrees wholeheartedly with the hon. member that further engagement by Canada is warranted to find effective and efficient ways to address the issue of conflict minerals. However, I have to say that we do not agree that Bill C-486 would bring us closer to this goal.

He talks about establishing clear roles for transparency and accountability in his speech. We do not believe that would be the result of this bill.

Before I outline some of our concerns with the present bill, I would like to talk a bit more about how minerals have been linked to conflict and what is being done about this already.

I am sure that many members are familiar with the Kimberley process on conflict diamonds, developed in response to the use of diamonds to fund violence and conflict in such countries as Liberia and Angola in the late 1990s. Canada was a founding member of the Kimberley process. As a leading diamond producer and exporter, we continue to play an active role in the initiative.

While it is not perfect, the Kimberley process has helped to deprive criminals and armed groups of easy access to capital. However, the illicit use of minerals to fund violence, which is what is meant by the term “conflict minerals”, did not end with the establishment of the Kimberley process. While it is not perfect, it has had an impact in its area.

A new generation of conflict minerals, however, has emerged since, including gold and the so-called 3Ts: tin, tungsten, and tantalum. These minerals are used in a variety of industrial sectors, including the aerospace, automotive and, perhaps most notably, the electronics industries. Indeed, these minerals are present in all of those gadgets that we love so much.

Unfortunately, in some contexts, the illicit trade in these minerals is contributing to violence and conflict. The problem is particularly acute in the eastern part of the Democratic Republic of Congo, or DRC. The lack of state control in that part of the country benefits various armed groups that illegally control mining sites by taxing miners and trafficking in illegally sourced minerals.

Fortunately, the international community is taking action, and Canada is playing a leading role. The OECD, in co-operation with international partners, has developed a due diligence framework, which I mentioned, to foster responsible mineral supply chains. The purpose of that framework, known as the OECD due diligence guidance, is to help companies that are operating in conflict-affected and high-risk areas to identify and mitigate against risks related to their sourcing decisions and practices and to avoid contributing to human rights abuses and conflicts.

The Canadian government actively participated in the negotiation of the guidance, which includes mineral-specific supplements on gold and the 3Ts. We continue to be engaged in its promotion and implementation, and we currently chair the multi-stakeholder steering group that serves as the management committee for this forum.

What is more, several Canadian companies have been at the forefront of efforts to combat conflict minerals and have incorporated the guidance into their management systems. Others are implementing industry-led initiatives pertaining to conflict minerals that are consistent with and build upon these guidelines. For example, the members of the World Gold Council, which includes several Canadian companies, adhere to the conflict-free gold standard. The standard establishes a common approach by which gold producers can assess and provide assurance that their gold has been extracted in a responsible manner.

Several Canadian gold refiners have also been certified under the conflict-free smelter program, which was set up by the electronics industry. I should note here that smelters and refiners have been identified as the critical junction in the mineral supply chain, as traceability becomes extremely difficult after that point.

I would like to emphasize that all of these activities and initiatives are international in scope, because the mineral supply chain is global in nature. In other words, conflict minerals are an international problem, requiring international solutions to bring all the relevant actors—government, companies, and civil society—to the table.

Unfortunately, we do not believe that Bill C-486 aligns with this approach.

The genesis of the bill is clear. In its intent, it mirrors section 1502 of the U.S. Dodd-Frank Act by requiring companies to undertake due diligence activities and to report annually on these activities.

However, in contrast to the U.S. legislation, which, as I mentioned earlier, is focused on manufacturing companies, Bill C-486 is broad. It is not focused. It implicates every stage of the complex mineral supply chain.

Moreover, in contrast with the OECD guidance, which recommends targeted audits of due diligence practices at those key points that I have mentioned, Bill C-486 would require each and every report produced to be audited by an independent third party. The House can see the incredible bureaucracy that would build around this requirement.

What is the anticipated result of the implementation of this bill? It would certainly make a whole lot of companies pay for a whole lot of reports. We would also have some very happy auditors. However, do we think that anything on the ground would change as a result? Would Bill C-486 stop conflict minerals from entering international markets or put an end to the protracted and complex conflict in the DRC, which happens to be the primary focus of the member's campaign against conflict minerals? We do not believe so. The bureaucratic weight and complexity that is required by this bill would make it impossible to realize his goals.

What about the unintended consequences of focusing exclusively on the Great Lakes region of Africa? It has been a huge problem and concern with U.S. legislation that numerous countries have simply chosen to source these minerals from elsewhere, not because there is necessarily conflict where they head their operations but because the countries did not have the capacity to set up the structures that were required to do the reporting. Depriving developing economies of much needed investment and local communities of much needed empowerment would not solve the conflict minerals problem. Rather, it may exacerbate it.

There is no doubt that the ongoing conflict in the DRC has had a devastating impact on the lives of civilians, especially women and children. The prevalence of serious human rights violations in the eastern region of the DRC in particular, including continued acts of sexual violence and alleged crimes against humanity, are of huge concern to our government.

Our efforts in developing peace support operations in the DRC have included funding projects on enhancing the effectiveness of security institutions, strengthening the capacity of Congolese authorities to curtail the illicit exploitation of natural resources, and mediating and preventing conflict.

In October of 2012, our Prime Minister announced a Canadian commitment of $18.5 million over five years to provide legal, medical, and emotional support to victims of sexual violence in the DRC and to assist law enforcement agencies in bringing perpetrators of these crimes to justice.

We have also called for concerted efforts to implement concrete solutions to the conflict and advocated for the engagement of regional actors in particular to protect civilians, including women and children, and to pave the way for peace and stability in that region.

With all due respect to the concerns of the hon. member for Ottawa Centre, a complex situation like the one in the DRC cannot be solved with more red tape for these countries.

I should point out that Dodd-Frank touches specifically on manufacturing. This bill is much broader and would force companies to report at every sector, meaning the extraction sector, the transportation sector, the refining sector, the processing sector, the manufacturing sector, the retail sector, and even recycling. Those products would all require reports to be filed and then audited by third parties. We believe that is an onerous burden that does not achieve the result the member opposite would like to see.

Making progress in the fight against conflict minerals need not come at the expense of responsible investment in affected areas. For example, as I mentioned earlier, smelters and refiners have been identified as a critical juncture in the mineral supply chain. More work can be done to encourage these actors to participate in certification initiatives.

As the member mentioned earlier, this voluntary approach seems to be working. Companies such as Apple and Intel were mentioned by him as companies that have taken this seriously and are applying it.

There is no doubt that further international efforts are required to tackle the problem of conflict minerals, but pursuing a mandatory initiative such as the member has presented is not an approach this government can endorse.

[Paul Dewar, NDP, Ottawa Centre, ON]

moved that Bill C-486, An Act respecting corporate practices relating to the extraction, processing, purchase, trade and use of conflict minerals from the Great Lakes Region of Africa, be read the second time and referred to a committee.

Mr. Speaker, I am so proud to be standing here today to launch debate on the conflict minerals act, Bill C-486.

The journey to here began five years ago.

Five years ago, I visited the Democratic Republic of Congo, a country equally beautiful and sad. For more than 15 years, Congolese government forces, rebel groups and private militias have been fighting to control the land and the abundant natural resources that have been the cause of this country's misfortune.

I spoke with Congolese government officials to see what was being done to enable a future of peace and sustainable development. The most striking response was not an answer but my question returned back to me. I was asked what I was doing. It was a fair question, because the truth is that the tragedy of the Congo is not merely a Congolese or an African problem. It is our problem, and the reason is in our phones and in our jewellery.

Many people are simply shocked to learn of the scale of the crimes in the Congo and the connection between consumers and the conflict. For the record, here are some of the facts.

The conflict that has been raging in the Democratic Republic of Congo since 1998 is the deadliest conflict since World War II. In 2011, the number of rapes was estimated at 48, not per year, per month or per day, but per hour. Rape is used as a weapon of war. In 2012, 2 million people were displaced. That is approximately the equivalent of the combined population of Manitoba and Saskatchewan.

Conflict minerals generate $180 million per year for armed groups, literally keeping some militias in business.

Up to 40% of those working in the mines are children. These children, who are exploited and abused, are then prime targets for recruitment by armed groups.

The lack of public awareness about this issue might seem like a cause for despair, but for me it is a cause for hope, because when people do learn about the connection between minerals and conflict, they are connected directly themselves. Once they are personally connected to this issue, they cannot help but care.

Since my time in the Congo, I have made it a personal priority to use my role as a legislator to help connect Canadians to this issue and curtail the presence of conflict minerals in Canada.

Last March, I introduced the bill on conflict minerals in the House of Commons.

The drafting process was comprehensive, with many months of positive and fruitful consultations with industry and civil society representatives in Canada and abroad.

The bill was introduced at a time of international action on conflict minerals, and the pace has only picked up since last year.

In May 2011, the OECD, the Organisation for Economic Co-operation and Development, published guidance and made a recommendation on exercising due diligence in this regard. Then, in August 2012, the U.S. Securities and Exchange Commission announced a new regulation requiring businesses to exercise due diligence in using tin, tantalum, tungsten and gold.

The European Union is introducing its own regulations following consultations with a wide range of stakeholders. At last year's G8 summit in Scotland, Canada joined other countries in making important commitments to extractive sector transparency.

In the G8 communiqué, the government specifically pledged to support conflict-free mineral sourcing. I want to read a section of that pledge tonight from section 40 of the communiqué. It states:

As part of our commitment to extractives transparency, we continue to support responsible, conflict-free sourcing of minerals from conflict-affected regions, including gold, diamonds and other precious stones. We will promote positive economic development and responsible sourcing in the artisanal mining sector, particularly from conflict and high-risk areas. We reaffirm our continued support for the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, and the International Conference of the Great Lakes Regional Certification Mechanism as part of global multilateral, multi-stakeholder efforts to combat the trade in conflict minerals through certification, responsible business conduct and respect for human rights.

This bill implements the OECD guidelines mentioned in this communiqué. It is simply a matter of keeping our promise.

Practically every major technology firm, including BlackBerry, Microsoft, Apple and Nokia, is now trying to avoid using conflict minerals in its products.

We have recently seen path-breaking, game-changing commitments to source conflict-free minerals. In January, Intel announced that its microprocessors would be conflict-free, and in February, Apple committed to sourcing the minerals in its products responsibly. Apple has already followed through on this commitment for tantalum and is also doing so for tin, tungsten, and gold. These industry leaders are showing that a better supply chain is possible, and so is a better world.

These companies also realize that in today's market, accountable companies have a competitive advantage. This was the message I received in consultations with Canadian industry representatives. Companies are ready to get on board with regulations so long as the regulations are clear and emphasize the competitive advantage of social responsibility. The private sector will accept clear rules for transparency and accountability. Government needs to be responsible as well. My bill would implement the OECD guidelines in Canada.

The bill requires Canadian companies that use minerals from the Great Lakes Region of Africa to exercise due diligence to ensure that no armed groups engaged in illegal activities benefit from the extraction, processing or use of those minerals.

Companies would have to publish their findings on their websites and in documents filed with the Canadian government. The government would then share the report with the producing countries. This would support local efforts to manage and reform the mining industry, supporting action from the ground up. The bill recognizes that stopping the conflict mineral trade requires collaboration between governments in both developed and developing countries, as well as with civil society and industry. Working together is the only way that lasting results can be achieved.

Collaboration requires leadership. I would like to see that initiative coming from Canada. It is a role that Canada can and should play. Canadian mining companies are market leaders. It is time Canada became a corporate social responsibility leader as well. Canada and Canadian companies should be diligent, accountable, and transparent in their operations overseas, but this is as much about consumer rights as corporate responsibility.

My bill will allow Canadians to know whether the minerals in the technology products they purchase may have funded or fueled war. Consumers will be in a position to make informed choices.

I believe that consumers, if given the necessary information, will hold companies accountable for their sourcing choices. To complement this legislative effort, I also launched the just minerals campaign. It is a grassroots initiative to support action on conflict minerals. We have partnered with a wide variety of groups, from students to environmental campaigns, to Congolese associations, to fair trade advocates. Across the country, online and offline, the campaign is under way and gathering steam. More than 3,000 Canadians have already signed a petition supporting the bill.

This is not about right- or left-leaning politics. It is about what is right and wrong. Together, we have the ability to make the world a better place. It is up to us to take action.

Other countries have recognized this. In the U.S., the Dodd-Frank Act that brought in similar requirements got bipartisan support.

I also believe that change is possible because we have done this before.

The blood diamonds campaign is a fantastic example of how the world, and Canada, can make real improvements in the sourcing of consumer goods. The illegal trade in diamonds was providing substantial funding to warlords and rebels in Africa throughout the 1990s. Separate and joint meetings of diamond producing countries, international organizations, global civil society, and extractive companies led to the Kimberley Process for certifying rough diamond exports.

Today, Kimberley Process members account for nearly all of the global production of rough diamonds. Illegal exports are largely prevented, and legal trade is fostered by the increased consumer confidence provided by certification.

This legal and responsible trade contributes to sustainable economic and social development. We now have the opportunity to similarly transform the trade in the minerals at the root of the conflict in central Africa.

Just as it was the case with blood diamonds, conflict minerals have been attracting ever greater levels of attention from extractive corporations, local governments, and international NGOs.

Corporate interest in social and environmental responsibility is growing.

Local leadership in central Africa is growing. Although my bill would be the first to implement the OECD due diligence guidelines in an OECD country, they have already been enshrined in law in the DRC and Rwanda.

Some exciting projects are now under way to bag and tag mineral exports in the same way that diamonds are now traced. Partnership Africa Canada, for example, a civil society leader in implementing the Kimberley Process, is doing just that right now. Internationally, last year's G8 communiqué reiterated support for responsible conflict-free mineral sourcing and cited the OECD guidelines.

The time is right for significant change.

Minerals are found everywhere in the world, but they need not be blood-stained. Together, we must prevent the war in the Congo from entering our homes.

I sincerely hope we can work together on this bill, demonstrating the co-operation Canadians want and the world needs. Together, let us take conflict out of Canadian homes.

[The Chair, Conservative, Dave MacKenzie]

Thank you.

Next is Bill C-486.

Fighting Foreign Corruption Act

[Djaouida Sellah, NDP, Saint-Bruno—Saint-Hubert, QC]

Mr. Speaker, I am pleased to address Bill S-14, An Act to amend the Corruption of Foreign Public Officials Act, to increase the maximum sentence of imprisonment applicable to the offence of bribing a foreign public official; eliminate the facilitation payments exception to that offence; create a new offence relating to books and records and the bribing of a foreign public official or the hiding of that bribery; and establish nationality jurisdiction that would apply to all of the offences under the act.

For a long time now, members of the NDP have supported clear rules requiring Canadians and Canadian companies abroad to show transparency and accountability. This bill complements the legislative initiatives put forward by members of our party to promote responsible, sustainable, transparent business practices.

In a report published in 2011, Transparency International ranked Canada as the worst of all the G7 countries with respect to international bribery. The organization pointed out that Canada rarely, if ever, enforces its negligible anti-corruption legislation. Since then, the government has started trying to address this national embarrassment. However, since 1999, there have only been three convictions, two of them in the past two years.

By eliminating the facilitation payments exception, the bill will bring Canada’s practices into line with 36 of the 39 other OECD countries. However, while the remainder of the bill comes into effect on royal assent, the rules on facilitation payments will come into effect at an unknown later date, as cabinet wishes. In the United States, the rule on accounting records is already enforced in civil matters by the Securities and Exchange Commission. Canada has no equivalent regulatory authority, but there is a similar rule in criminal law.

The bill is of particular importance in the mining industry, where the NDP has been and is still an ardent defender of accountability. I can cite, for instance, Bill C-323 introduced by the member for Burnaby—New Westminster, which seeks to permit people who are not Canadian citizens to initiate tort claims based on violations of international obligations in Canadian courts, as well as Bill C-486 introduced by the member for Ottawa Centre, which requires companies that use minerals from the Great Lakes Region of Africa to exercise due diligence.

Canadians want our companies to be responsible and respectable representatives of Canada, and Canadian companies want clear and consistent standards for international business. The enforcement of loophole-free regulations will create a level playing field for all companies, while protecting the environment, labour and human rights, something we could all be proud of.

The news headlines concerning SNC-Lavalin are enough to convince us that this is necessary. A number of people in my extended family and some of my childhood friends in Algeria have written to me to find out whether corruption of foreign public officials is the norm in Canada. We are aware that a number of allegations of corruption are floating around the activities of SNC-Lavalin, not just in Libya, but also in Algeria. The company has even been blacklisted in Algeria, including by Sonelgaz, Algeria’s electricity utility.

Clearly, this incident was an embarrassment for Canadians. This is why Canada has a duty to adopt responsible management practices. This bill helps ensure that operations conducted by Canadian businesses abroad meet high standards, of which we can all be proud.

Under the current version of the Corruption of Foreign Public Officials Act, however, Canada exercises only territorial jurisdiction, which allows Canada to prosecute the foreign bribery offence when it is committed in whole or in part in Canada. There must be a “real and substantial link” between the offence and Canada. The fact that Canada does not exercise nationality jurisdiction in order to prosecute a Canadian for bribing a foreign public official without needing to provide evidence of a link to Canada has been the subject of negative commentary by Transparency International and by the OECD in its Phase 3 Evaluation Report. Both bodies have recommended that Canada amend its laws to exercise nationality jurisdiction over the foreign bribery offence to promote prosecution of cases under the Corruption of Foreign Public Officials Act.

The incorporation of this recommendation into the bill means that offences committed abroad are deemed to have been committed in Canada. As a result, proceedings for an offence can be commenced in any territorial division in Canada, and the provisions of the Criminal Code relating to the appearance of the accused at trial apply to the proceedings. With certain exceptions, the new provisions also provide safeguards for people who have already been tried and dealt with outside Canada for an act or omission that is deemed to have been committed inside Canada under the Corruption of Foreign Public Officials Act. This prevents people from being tried twice for the same offence, once by a court exercising jurisdiction on the basis of territory and once by a court exercising jurisdiction on the basis of nationality. Similar safeguards are already set out in the Criminal Code.

That being said, once again, as the hon. member for Outremont is fond of saying, the government needs to put its money where its mouth is both in this and in many other matters. In Canada, our inability to enforce anti-corruption laws is a source of embarrassment to the country. We are pleased that the government is finally looking into these problems, but it is deplorable that it has taken so much time and that Canada had to be condemned and discredited before the government took any action.

I would like to quote Janet Keeping from Transparency International. She said:

In our view, it is a very good thing that the Canadian government is responding to criticisms of the Corruption of Foreign Public Officials Act that have mounted over the years.... I did want to have an opportunity to say that good law on the books is really important and essential, and Transparency International Canada is behind the adoption of Bill S-14. But just as in any other country of the world, legislation is only as good as it is enforced, especially in the criminal law area.... [Keep] in mind that we must have the RCMP and the prosecution services adequately resourced to enforce the legislation.

We must therefore ensure that our excellent police officers have the resources they need to do their job. If the RCMP does not have enough staff and resources, the legislation alone will not be enough and will not meet its objectives.

[Dany Morin, NDP, Chicoutimi—Le Fjord, QC]

Mr. Speaker, I am pleased to rise in the House to speak to Bill S-14, An Act to amend the Corruption of Foreign Public Officials Act.

I would like to explain to those watching at home what this bill is about. It proposes four major amendments to the Corruption of Foreign Public Officials Act.

First, it increases the maximum prison sentence for bribing a foreign public official from 5 to 14 years. Next, it eliminates the exception for facilitation payments, where a foreign public official is paid to expedite the execution of his or her responsibilities. It also creates a new offence for falsifying or concealing books or records in order to bribe a foreign public official or hide that bribery. Finally, the last major amendment establishes nationality jurisdiction that would apply to all of the offences under the act, such that Canadian nationals could be prosecuted for offences committed overseas.

The bill is very important for fighting corruption despite what the Conservative MPs might think. In this debate, the Conservatives are siding with the companies that unfortunately are engaging in corruption. I am very proud to be Canadian, but when companies think they are above the law and want to engage in corruption in Canada or abroad, the NDP is here to go after them and make them pay for their crimes.

Our position on this bill is very clear. We will support it at third reading. We were a bit disappointed to see that in committee, our proposals to improve the bill did not get the attention we would have liked. There is always room for improvement, even if the Conservatives across the way do not think so and believe that everything they do is perfect. The NDP has long been in favour of clear rules requiring Canadians and Canadian companies working abroad to be transparent and accountable. The bill builds on the legislative initiatives put forward by NDP members with the goal of promoting responsible, sustainable, transparent management practices.

Canada's deficiencies in enforcing anti-corruption laws are embarrassing. However, it comes as no surprise since our government likes to stick with corrupt and unethical people. It is no wonder that under the Conservatives', under this Prime Minister, our country has leaned toward corruption.

As members of the New Democratic Party of Canada, we are glad that the government is finally doing something about this problem, but it is disgraceful that it took so long and that Canada had to be criticized and discredited for the government to do anything about this. Later I will get into the types of criticisms our international allies were making.

Canadians want the companies that are representing Canada to do so in a responsible and respectable manner, and Canadian companies want clear and consistent standards when it comes to international trade. Enforcing rules without loopholes will level the playing field for all companies and protect the environment, labour and human rights, something we could all be proud of.

I would like to provide some background and talk about the criticism of our international allies. In a report released in 2011, Transparency International ranked Canada as the worst of all the G7 countries with respect to international bribery. The organization pointed out that Canada rarely, if ever, enforces its negligible anti-corruption legislation. Since then, the government has been working on resolving the problem. However, since 1999, there have been only three convictions, two of the them in the past two years.

The bill is of particular importance for the mining industry, where the NDP has been and continues to be a strong advocate for accountability. Take, for example, Bill C-323 sponsored by the NDP member for Burnaby—New Westminster, which would permit persons who are not Canadian citizens to initiate legal action based on violations of international law in Canadian courts, and also Bill C-486, sponsored by the NDP member for Ottawa Centre, which requires companies that use minerals from the Great Lakes Region of Africa to exercise due diligence.

It is clear that the NDP stands up for people abused abroad and for justice. We expect Canadian companies to have good standards. We are always disappointed when we learn that Canadian companies are involved in corruption.

The political elite that benefits from corruption, particularly in countries and industries where corruption is rife, is made up primarily of men. Men will try to get away with whatever they can. Unfortunately, that is why we should never expect people and companies, even Canadians, to always do the right thing. Protocols must be put in place to ensure that everyone, individuals and companies alike, does their part by obeying Canadian and international laws.

At the same time, it is primarily women who lack government protection. That is why the NDP is very proud to be listening to women across the country. This is also why we are always actively looking to engage women during elections and consultations. We believe in the principle of equality, unlike certain other parties that prefer women to be a minority in their party.

I would like to talk about some numbers and facts that people at home might find interesting. Earlier, I mentioned that there have been three bribery convictions, and I would like to talk about that some more.

Since the Corruption of Foreign Public Officials Act was enacted in 1999, there have been three convictions. Hydroclean Group was fined $25,000 in January 2005 for bribing an American immigration official at the Calgary airport. Niko Resources Ltd. was fined $9.5 million in June 2011 because its subsidiary in Bangladesh paid the moving and housing costs of Bangladesh's then-minister of energy and natural resources. Finally, the third conviction involved Griffith Energy International Inc., which was fined $10.3 million in January 2013 for agreeing to pay $2 million to the wife of Chad’s ambassador to Canada and to allow her and two other individuals to buy shares at a reduced cost in exchange for support for an oil and gas project in Chad.

Naturally, I hope that the Conservatives will condemn these acts and continue to flush out other companies or individuals involved in bribery. It tarnishes our international reputation. The Conservative government has done enough to tarnish it over the past seven years. This needs to stop.

Transparency International's 2011 bribe payers index ranks the oil and gas industry fourth and the mining industry fifth in the list of sectors most likely to engage in bribery. In addition, the mining and oil and gas industries are ranked second and third in the list of sectors most likely to give major bribes to high-level public officials and politicians. Bill S-14 is particularly relevant to those sectors.

To conclude, I would say that, unlike the Conservatives, the NDP is listening to the people. When the business sector tells us that Canadian companies want clear, consistent international business standards, we listen. Enforcing regulations that are free of loopholes will level the playing field for all companies.

In addition, the NDP is listening to environmental groups and task forces that want to ensure that local communities are not abused in the course of development.

Finally, we are listening to international stakeholders to ensure that Canadian companies have sound, responsible management practices.

[Matthew Kellway, NDP, Beaches—East York, ON]

Mr. Speaker, I was in the process of commenting on the source of this legislation being the Senate and the enormous legitimacy deficit that exists in the Senate. I think that is historical, but it is particularly acute these days. In particular, the Senate really is in no position to be issuing bills on the issue of corruption, mired as it is in scandals of exactly that nature.

That said, irrespective of the source and as unfortunate as the source of this legislation is, we remain prepared to support the bill. One of the central reasons for doing so is found in the legislative history of members of this party in the House. We have long supported clear rules requiring transparency and accountability by Canadian individuals and corporations overseas.

The bill complements legislative efforts by NDP MPs to encourage responsible, sustainable and transparent management practices. I speak specifically of Bill C-323, put forward by the member for Burnaby—New Westminster, which would allow lawsuits in Canadian courts by non-Canadians for violations of international obligations, and Bill C-486, from the member for Ottawa Centre, which would require public due diligence by companies using minerals from the Great Lakes Region of Africa. These bills reflect the history of our party. They reflect a respect for the democratic aspirations of people in other countries and a respect for their aspirations for better labour standards and a healthier and safer environment.

We understand that effective environmental and labour standards in developing countries often depend on advocacy and activism by local populations, and it is very difficult for local people to hold their governments to account when the government has secret sources of revenue that remove the financial incentive to be accountable in the first place.

We support this legislation as well because the lack of anti-bribery enforcement in Canada has been a national embarrassment to us. I will skip to my conclusion on this point of the national embarrassment over the lack of legislation.

It is worth pointing out that in spite of our support for this bill, it is in effect totally underwhelming. One is left asking, is that all there is?

When the parliamentary secretary points to the openness of our country to international trade and puts forward this legislation as the solution to dealing with corruption issues in such an open and global environment, when Canadians take such pride in and value so highly our reputation on the international scene, the question of why the government always seems to aim so low arises. Why can the government not aspire to a leadership role, one that Canadians could justly take pride in? If it is worth putting forward such legislation, and we certainly believe it is, why not set new and higher standards internationally to ensure that Canadians overseas conduct their affairs to the highest levels of transparency and ethics?