Bill S-14 (Historical)

Fighting Foreign Corruption Act

An Act to amend the Corruption of Foreign Public Officials Act

This enactment amends the Corruption of Foreign Public Officials Act to
(a) increase the maximum sentence of imprisonment applicable to the offence of bribing a foreign public official;
(b) eliminate the facilitation payments exception to that offence;
(c) create a new offence relating to books and records and the bribing of a foreign public official or the hiding of that bribery; and
(d) establish nationality jurisdiction that would apply to all of the offences under the Act.

Transparency of Payments Made by Mining, Oil and Gas Corporations to Foreign Governments Act

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

moved that Bill C-474, An Act respecting the promotion of financial transparency, improved accountability and long-term economic sustainability through the public reporting of payments made by mining, oil and gas corporations to foreign governments, be read the second time and referred to a committee.

Mr. Speaker, that is an exceedingly long name for a bill. Possibly, the name might even be longer than the bill itself. I have been referring to it as “the sunshine bill” because the notion is clearly that payments made by the extractive sector to various entities, that the light of sunshine be shone upon them so that all can see what is happening, but also that it acts as a disinfectant to what is the pernicious problem of corruption.

There is a broad consensus among civil society, NGOs, and the industry, and some governments that there has to be something done about the payments and the corruption involved in a variety of enterprises, particularly involving the extractive sector: that we need to have increased transparency and to curb corruption.

Indeed, recently PDAC, the Prospectors and Developers Association of Canada; MAC, the Mining Association of Canada; Revenue Watch Institute; and Publish What You Pay came together to say the following, as stated by Pierre Gratton, Mining Association of Canada's president and CEO:

The Canadian mining industry is fully committed to improving transparency in a way that aligns with global standards. Today's launch of the draft framework, which was developed hand-in-hand with our civil society partners, is an important step forward to help reduce corruption and build governance capacity, while showcasing the positive contributions we make to the countries where we operate.

Clearly, among governments, the United States has been the lead government through the Cardin-Lugar amendment to the Dodd-Frank bill. It is a very dramatic amendment because it says that every year within six months of a corporation's year-end, the corporation must file a statement saying whom it paid, how much it paid, the currency it paid, et cetera. If it fails to file, then it will be de-listed from U.S. stock exchanges. It is a very draconian sanction, and it shows the seriousness with which the United States takes the issue of corruption.

The European Union has passed similar legislation. The United Kingdom is in the final stages of drafting a bill. Prime Minister Cameron made it a central issue of the last G8 meeting in Ireland. He and his fellow summit leaders were even able to get our Prime Minister to say that he is in favour of transparency, “empowering people to hold governments and companies to account”; indeed, “progress towards common global reporting standards to make extractive industry payments more transparent”.

That was a commitment signed by all G8 leaders, and this, frankly, is a big change from the last G8 summit when our Prime Minister refused to endorse a similar communiqué.

So we take progress, however incremental, and we take some encouragement from that, even though the former president of Revenue Watch Institute, Karin Lissakers, said publicly that Canada was out of step with other countries on upping their game.

It is trite but true that Canada is the most important mining country in the world. We have something like 8,000 interests in a variety of properties in a variety of countries, something like 100 of them. That is 8,000 mining sites, or mining sites that are in the process of being developed. Yet, the government continues to dig in its heels. It was only last December that the public service launched a review of corporate social responsibility strategy for the extractive sector. A review is not a commitment to a legislation. A review is not draft legislation or regulation.

The United States is out of the blocks. Their legislation came into place as of September this past year. The first filing period will be September 2014. Also out of the blocks is the European Union, and the United Kingdom and others are following suit.

We, on the other hand, have a review, and maybe in the fullness of time before the end of this Parliament, we will have a bill to look at in this Parliament. However, Mr. Speaker, you and I know that legislation sometimes has a tortuous path, particularly prior to the dissolution of a Parliament, and it is not realistic or likely that a bill, such as what we see in the United States, would be put forward by the government for Parliament to debate.

Industry, on the other hand, is frankly a million miles ahead of the government. Pierre Gratton, again of the Mining Association, has said:

There was a little bit of a surprise that industry is asking for more regulation. But there are business reasons for doing this, and sometimes additional regulations is actually good for business.

Business can only carry the load so far. The best companies operate at the highest ethical standards, but they are frankly helpless when less ethical companies bribe their way into lucrative concessions. Regulation and legislation are not for those who wish to be transparent. Regulation and legislation are for companies that wish not to be transparent or to be less transparent. It frustrates the CEOs who want to do the right thing. It makes him or her unnecessarily vulnerable and, frankly, it trashes Canada's reputation.

I want to take the opportunity to relate a conversation I had with one of our Conservative colleagues, whom I quite like and respect. He had just returned from Africa and was commenting on the endemic corruption he had witnessed. However, he said that he would not support my bill because “...corruption is a way of life there, and frankly there is nothing you can do about it, so why bother?”. He did not add, but I will add, that if Canadian companies do not bribe, they will lose business, and that I am just being naive.

There are two sides to corruption: the demand side and the supply side. I do not expect that Bill C-474, the sunshine bill or any other bill, frankly, will stem the demand side. That would be naive. However, we could possibly just slow down the supply side of corruption, because every CEO and every project manager would know that their company would have to file sworn statements that this money was paid for this concession to this government or entity on this day in a particular currency, and failure to file would be an offence. In my proposal in Bill C-474, it would be a finable offence, and on the U.S. side, it would be a delisting offence.

Maybe SNC Lavalin would not be in the mess it is in today if something like the sunshine bill had existed. Maybe their executives would not be facing criminal charges. Maybe their stock prices would not have been hammered, as they have been in the last year. Maybe SNC Lavalin and their related companies would not have been cut out of World Bank business for the next 10 years, and maybe we would not see the headline that we saw on The Huffington Post and the Financial Post this morning, which said:

Canada has the dubious honour of being home for the largest number of firms on a World Bank blacklist of corrupt companies.

I want to point out that this is one occasion where I think a headline is misleading. The article goes on to say “Of the more than 600 companies now listed as barred from doing business with the World Bank over corruption, 117 are Canadian, the most of any one country”. However, further down in the article, it states that 115 of those 117 are related to SNC-Lavalin in some manner or another.

Therefore, this is a case of the headline of an article being misleading. Nevertheless, if people live in a fantasy world and believe that Canada is as pure driven as the snow, then I would ask them to take another look at that.

If we had legislation in place, maybe Griffiths Energy would not have been fined $10 million. If we had legislation in place, then Niko Resources would not have been fined $9.5 million. I am not so naive as to believe that Bill C-474 would have ended all of these problems, but I do know that legions of lawyers will be reminding their bosses of their filing requirements under the bill.

I commend the government for its initiatives on S-14, an act to amend the corruption of foreign public officials act. It was a good idea. It has put resources behind prosecution, which is a good initiative. It is a good idea to beef up the Criminal Code and its anti-corruption measures. When it comes back to the House, we will support it.

However, when a prosecution is launched, it means that the horse is already out of the barn and that a crown attorney has concluded that he or she has a reasonable chance of a successful criminal prosecution. I would suggest that it is much better to put resources toward keeping the horse in the barn. That is what Bill C-474 does.

The government has also taken other CSR initiatives, such as $25 million for the CSR centre in Vancouver. That is good. There is nothing wrong with that. It is not clear to me what it has accomplished at this point, but I think it is a good initiative on the part of the government.

The initiative that has been an unmitigated disaster is the CSR counsellor. It was a mandate that was designed to fail, and it did. I believe it was in 2009 that Counsellor Marketa Evans initiated two or three files. Last October or November, she resigned. It cost millions of dollars and there is no longer a head of the office itself.

Here we are with a modest regulatory initiative with which the House could put Canada back in the game. It is a simple bill, with a clear aim to promote transparency. It is largely a photocopy of the U.S. legislation. In the various times I have been speaking with industry, I proposed that if it has a filing with the Securities Exchange Commission of the U.S., to photocopy it and send it to us. I do not intend or want to have an increased regulatory burden on the industry. However, I have some sense that this would not be well received by the government. Unfortunately, we are the huge hole in the international fence. The United States has stepped up to the plate and is the leader. The U.K. is following, and the EU and Australia are already there. We are the largest hole in the international fence because this is where the action is as far as worldwide mining is concerned.

I appreciate the time and attention of the House. I urge my colleagues on both sides of the aisle to support this initiative. We do not want to see the headlines that we saw, as misleading as they might be, in the The Huffington Post and the Financial Post this morning.

[The Speaker, Andrew Scheer]

I have the honour to inform the House that when the House did attend His Excellency the Governor General in the Senate chamber, His Excellency was pleased to give, in Her Majesty's name, the royal assent to certain bills:

C-321, An Act to amend the Canada Post Corporation Act (library materials)—Chapter 10, 2013.

C-37, An Act to amend the Criminal Code—Chapter 11, 2013.

C-383, An Act to amend the International Boundary Waters Treaty Act and the International River Improvements Act—Chapter 12, 2013.

S-9, An Act to amend the Criminal Code—Chapter 13, 2013.

C-47, An Act to enact the Nunavut Planning and Project Assessment Act and the Northwest Territories Surface Rights Board Act and to make related and consequential amendments to other Acts—Chapter 14, 2013.

C-309, An Act to amend the Criminal Code (concealment of identity)—Chapter 15, 2013.

C-43, An Act to amend the Immigration and Refugee Protection Act—Chapter 16, 2013.

S-213, An Act respecting a national day of remembrance to honour Canadian veterans of the Korean War—Chapter 17, 2013.

C-42, An Act to amend the Royal Canadian Mounted Police Act and to make related and consequential amendments to other Acts—Chapter 18, 2013.

S-209, An Act to amend the Criminal Code (prize fights)—Chapter 19, 2013.

S-2, An Act respecting family homes situated on First Nation reserves and matrimonial interests or rights in or to structures and lands situated on those reserves—Chapter 20, 2013.

S-8, An Act respecting the safety of drinking water on First Nation lands—Chapter 21, 2013.

C-63, An Act for granting to Her Majesty certain sums of money for the federal public administration for the financial year ending March 31, 2014—Chapter 22, 2013.

C-64, An Act for granting to Her Majesty certain sums of money for the federal public administration for the financial year ending March 31, 2014—Chapter 23, 2013.

C-15, An Act to amend the National Defence Act and to make consequential amendments to other Acts—Chapter 24, 2013.

C-62, An Act to give effect to the Yale First Nation Final Agreement and to make consequential amendments to other Acts—Chapter 25, 2013.

S-14, An Act to amend the Corruption of Foreign Public Officials Act—Chapter 26, 2013.

S-17, An Act to implement conventions, protocols, agreements and a supplementary convention, concluded between Canada and Namibia, Serbia, Poland, Hong Kong, Luxembourg and Switzerland, for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes—Chapter 27, 2013.

S-15, An Act to amend the Canada National Parks Act and the Canada-Nova Scotia Offshore Petroleum Resources Accord Implementation Act and to make consequential amendments to the Canada Shipping Act, 2001—Chapter 28, 2013.

It being 4:24 p.m., the House stands adjourned until Monday, September 16, 2013, at 11 a.m., pursuant to Standing Orders 28(2) and 24(1).

(The House adjourned at 4:24 p.m.)

The first session of the 41st Parliament was prorogued by royal proclamation on September 13, 2013.

Fighting Foreign Corruption Act

[Peter Van Loan, Conservative, Leader of the Government in the House of Commons]

I move:

That, notwithstanding any Standing Order or usual practice of the House, Bill S-14, An Act to amend the Corruption of Foreign Public Officials Act, be read the third time and passed.

The House resumed from June 14 consideration of the motion that Bill S-14, An Act to amend the Corruption of Foreign Public Officials Act, be read the third time and passed.

[Alain Giguère, NDP, Marc-Aurèle-Fortin, QC]

Mr. Speaker, Canada is in last place because it is the last country to pass this type of legislation. Our country has become a laughingstock. This government has known for years that this type of legislation is essential.

At the very beginning of my speech when I quoted what Judge Giovanni Falcone said about politicians, I said that there were those who are fighting the Mafia, those who are working alongside the Mafia and those who let the Mafia go about their business unfettered. Clearly, the government's actions in this case were not inadvertent or due to a lack of vigilance. This government knowingly allowed companies to engage in wrongdoing.

Diplomats at the Canadian embassy in Libya were involved in the corruption surrounding the Gadhafi family. That is unacceptable. That is why Canada is in last place and everyone knows it.

When it comes to making a quick buck, this government will support the corrupt, regardless of the long-term effects or the impact it will have on Canada's reputation. The government wants Bill S-14 because it no longer has a choice.

The NDP government will go much further. We will re-establish Canada's reputation of excellence.

[Alain Giguère, NDP, Marc-Aurèle-Fortin, QC]

Mr. Speaker, this is directly related to a government policy. The government chose to never be on the right people's side.

An Israeli minister once said, “Palestinians never miss an opportunity to miss an opportunity”. That is exactly what is happening with this government. Canada is receiving environmental booby prizes. We are in last place, the biggest polluter. We are also in last place when it comes to money laundering. The government is making cuts to the Canada Revenue Agency, which should be working to combat money laundering. Canada is also lagging behind when it comes to combatting foreign corruption.

We still have not voted on Bill S-14. We are the last of the G8 countries to have a bill of this nature. At some point, the government will have to take full and exclusive responsibility in all areas.

We lost the opportunity to get a seat on the United Nations Security Council. That should have been a red flag. The Conservatives trivialized the incident. They trivialize everything. They are against anything that could stand in the way of a Canadian company making a quick buck. Unfortunately, this is tarnishing Canada's reputation on the world stage.

[Alain Giguère, NDP, Marc-Aurèle-Fortin, QC]

Mr. Speaker, my colleague's last question is unfortunately so partisan that he has missed the point.

Collectively, it is our duty to protect our country against corruption and the corrupt. Unfortunately, those who disregard this make personal attacks and focus on imagined facts. At present, people are fighting corruption in Canada and abroad.

Unfortunately, collectively, we are sometimes not vigilant enough. Canada's response to this lack of vigilance is Bill S-14. We are going to deploy teams of expert police officers to fight this phenomenon.

In Montreal, the Marteau squad is tackling corruption. Unfortunately, if the member would open his eyes, he would see that the Marteau squad arrested the assistant to one of his ministers. These are not just suspicions; he is being charged with corruption. Just two months ago, that man claimed to be the shadow MP for the riding of Mount Royal.

We can fight corruption, not with partisan attacks, but by working together as we did on Bill S-14 and as I encourage the House of Commons to do in all circumstances.

[The Acting Speaker, Barry Devolin]

Before I go to the hon. member for Marc-Aurèle-Fortin, I would like to remind all hon. members that the matter before the House is Bill S-14 and that their questions and comments and also the responses ought to be related to that somewhat directly.

The hon. member for Marc-Aurèle-Fortin.

The House resumed consideration of the motion that Bill S-14, An Act to amend the Corruption of Foreign Public Officials Act be read the third time and passed.

[Alain Giguère, NDP, Marc-Aurèle-Fortin, QC]

Mr. Speaker, I would like to state right from the outset that the NDP is in favour of Bill S-14. We would have liked the legislation to go further and move faster, but it is a good start.

The key thing to understand in combating corruption is the importance of being vigilant. The primary purpose of this bill is to guarantee that corruption is never considered an acceptable modus operandi. Not only do we want to stop Canada from getting a reputation abroad as a corrupting nation, we also want to prevent this corruption from having a damaging effect at a local level. We do not want to be complicit in the misfortunes of people who have never done anything to us.

An Italian judge, Giovanni Falcone, when speaking out against the Mafia, stated that politicians can be divided into three groups: those who are fighting the Mafia, those who are working alongside the Mafia and, lastly, the most dangerous of all, those who let the Mafia go about their business unfettered. That last category may include any of us, hard-working people who work long hours and take part in fundraising activities where we meet all kinds of people, including lobbyists. That is part of our daily work as members of Parliament, and it can be difficult and trying. It is easy to overlook certain things. All that is needed is a moment of inattention. Nobody in the House is immune to that. Unfortunately, dishonest people take advantage of our weaknesses. The huge majority of honest people are convinced—and rightly so—that other people is just as honest as they are. That is what allows swindlers and corrupters to abuse our trust.

Bill S-14 would punish Canadians who attempt to corrupt foreign public officials. Canada must engage fully in the joint effort by the family of nations to put an end to this scourge. This corruption, in far too many countries, is a source of human rights violations. A corrupt officer in his own country breaks the law of the land at home. When a journalist writing an article on an allegedly corrupt minister challenges this officer, is he really going to incriminate himself or will he be tempted to have the journalist killed?

Corruption goes hand in hand with the destruction of the values of freedom, justice and democracy. The more corruption is tolerated, the more perilous it will be for democracy in these countries. We ask countries to engage in good governance, but in the same breath, we turn a blind eye to Canadians offering bribes. That has got to stop. This legislation is the House’s response, across party lines, to this problem. It is also important to us. If we do not do this, our credibility as advocates for human rights and freedoms will be in tatters.

Canada missed out on the opportunity to obtain a seat on the United Nations Security Council. This is directly attributable to the fact that our foreign policy has, at times, fallen short of what is expected in terms of our reputation on the world stage. We have allowed our reputation to be tarnished, and it has sunk to new lows. The time has come to rectify this.

We remain saddled with the problem of tyrants and dictators. Both tend to be corrupt, which is why they hold on so tightly to the reins of power.

They are continuing to get rich off the backs of their own people. Corruption, misappropriation of funds, nothing is beyond these people. We are now openly declaring that we will no longer be complicit in this.

Libya is a hugely embarrassing problem. Mr. Gadhafi was no boy scout; he did not respect the laws and freedoms of his own people. Unfortunately, the bungling of some of our officers at the Canadian embassy in Libya, combined with the dishonesty of certain engineering firms and a number of Canadian construction and natural resources development companies, meant that a small portion of the Gadhafi family's income came from Canada. This is not something to be proud of. It is important to be aware of it and to address the situation.

Our response to the incident is Bill S-14. The legislation will punish Canadians who seek to corrupt foreign public officials. It was high time legislation like this was introduced.

Let us not complain. For once, all the parties in the House will support the bill. We support the fact that an individual found guilty of corrupting a foreign public official is liable to be sentenced to up to 14 years behind bars. There will no longer be an exception in the case of facilitation payments. This was a handout to officials not because they agreed to take on a case, but to have the case processed more quickly. Building permits, for example, were requested. People were entitled to these permits, they were legal, but the public official would claim to have a lot of work. Now, if he were enticed, the official might say that he could look after the case the following week rather than two months down the road. These facilitation payments will no longer be permitted. There will be a zero-tolerance policy.

Cooking, or concealing, the books to hide corruption will not be allowed, either. It will not be possible to tell Canadian shareholders to look at the company’s terrific bottom line when it hides the fact that $60 million or $80 million has ended up lining the pockets of corrupt foreign officials. Sometimes, the money finds its way into the pockets of top Canadian executives, who receive what is commonly called a kickback. For example, a person might hand over $50 million and get a kickback in the form of $10 million deposited into a Swiss bank account. That, too, will no longer be tolerated. It was high time. Canadian shareholders were getting the wool pulled over their eyes, and this had to stop.

The bill applies to all Canadians. Regardless of where the crime is committed, Canadian citizens will be accountable under Bill S-14. Often Canadians have several citizenships and do business in all corners of the globe, and now, extraterritoriality will no longer be grounds for immunity.

Turning a blind eye to Canadians offering bribes abroad is dangerous because once they are back in Canada, the very same Canadians end up bribing Canadian officials. That is the problem: corruption knows no borders. Corrupt people in Libya or in Latin America will be just as corrupt in Canada. Unfortunately, that is a fact. That much is obvious when it comes time to foot the bill, and the bill is steep. Canadian taxpayers have contributed to the tax-haven-sheltered bank accounts of far too many corrupt people and corrupters.

This is why the NDP strongly supports this bill. We stand by our position. The NDP is unequivocally opposed to corruption, which is a source of embarrassment for our country. It ruins our reputation and has an adverse impact on Canada’s financial and economic opportunities.

Mining, gas, oil and manufacturing companies, the pulp and paper industry, and equipment and service suppliers will think that it is dangerous to do business with a Canadian company because they are corrupt. This kind of thinking has to stop. People need to know that if they do business with a Canadian company, that company is accountable under the law. It is not true that Canada tolerates corruption. Canada will not have that kind of reputation.

Corruption is a cancer that does not stop at our borders. It insinuates itself into our politics. Recently, cases of corruption have surfaced among our political parties. This morning, I researched the ideological path taken by one individual. My goodness, he was involved in every municipal political party, every single one. He did them all in Montreal, bar none. Provincially, he was close to the Quebec Liberal Party and the Action démocratique du Québec, Mr. Dumont’s party. He toyed with the PQ, having the occasional flirtation here and there. Then, federally, he was a member of the Liberal Party of Canada, even seeking to run for the Liberal Party of Canada. It now turns out that he was a candidate for the Conservative Party. He wore every political stripe. He was always very close to power and always played the corrupt card when it came to power, always.

I can guarantee that, if he had not been caught and arrested, he probably would have tried to join the ranks of the NDP when it takes the reins of power in 2015. He is that kind of person.

No political party is immune to that kind of person. People cut from that cloth are dishonest and use how busy we are to take advantage of us. They aim to profit from the money Canada has. Indeed, if Canada were as poor as Job, they would not be like bees to honey. They seek, above all, to satisfy their personal interests, and they generally succeed. That is why we all, collectively, have a duty to be vigilant. From a purely non-partisan perspective, I can say that nobody is safe. This is happening right now. It is all well and good to say that a Conservative got caught. He was never a Conservative, but he was, and has always been, a thief. That is the take-home message.

In the past, our laws were weak. Not only did this give Canada a bad reputation, it led to some pretty poor outcomes. There have only been three convictions since 1999, and those convictions were not particularly impressive. The major players were not really caught in the net. A $10 million fine was issued, which is nothing to be sneezed at. However, the contracts were worth billions of dollars. The penalties in other countries for corruption are significant, and those found guilty see their wealth go up in smoke.

Canada had such a bad reputation that international agencies were saying that Canada ranked fourth or fifth among the most corrupting countries. It is embarrassing.

Thanks to Bill S-14, we are collectively correcting our past mistakes. No one is infallible. Only those who never do anything never fail. It is because we collectively realized our mistakes that we were able to correct them. That is the difference between a mistake and a fault. Anyone can make a mistake. It becomes a fault when you keep making the same mistake over and over, without correcting it. Thanks to this bill, Canada does not have this problem.

We also need to talk about other problems, such as money laundering. Imagine a corrupt government official in an African country who finds himself with $400 million or $500 million, as we have seen. Nigeria once had a president who died of a heart attack and was later found to have had $6 billion in Swiss bank accounts. When people are corrupt in their own country, they want to buy things for themselves in that country, but above all, they want to ensure that if they lose power, they will not lose their money, so they transfer it to tax havens. We need to tackle this problem.

Bill S-14 does not tackle it. However, we will tackle it through other bills. In the future, it will be impossible to divert money like that. In terms of international co-operation, we will have better regulations. It will be easier to exchange information and easier for countries that have lost money like this to recover it. That is an important element.

We have a significant banking sector. Our banking institutions play a major international role, and that is good. We cannot complain about having a solid banking system that plays an important role internationally. That is why we have to be careful. These institutions must not be left open to criticism or become a way to launder dirty money, corruption money. We will also be introducing crime bills to correct this situation.

There was also discussion about Canadian officials who represent us in embassies. They have a role to play. They must not encourage or tolerate this corruption. From an ethical standpoint, they must also avoid becoming corrupt by being so close to power.

Far too often, we have seen the children of a foreign president, minister or senator obtain bursaries to study in Canada or have their Canadian citizenship process fast-tracked. We have seen that sort of thing quite often, even in Syria. For example, in one case, the daughter of the immigration minister was working on the immigration portfolio at the Canadian embassy. That was not very smart.

The last few minutes of my speech will be on the Mafia and organized crime. Organized crime knows no borders. Corruption attracts corrupt people, and there is nothing more corrupt than organized crime on a global scale. It has interests in anything and everything. It knows no borders. In that sense, Bill S-14 could be improved in future when we deem it necessary. Bill S-14 is a first step, but not the last. We all think it is a good one.

[Hélène LeBlanc, NDP, LaSalle—Émard, QC]

Mr. Speaker, I would like to thank my colleague for her speech. She did a good job of summarizing Bill S-14.

She mentioned something that we often point out in our speeches. In her opinion, what concrete action could the government take? The House of Commons often votes on budgets that are part of omnibus legislation, which is really disturbing and shows a great lack of transparency on the part of the government.

What resources should be allocated to ensure that the bill is implemented properly, especially with respect to RCMP officers?

[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.

[Colin Carrie, Conservative, Parliamentary Secretary to the Minister of Health]

Mr. Speaker, I listened to my colleague's speech and some of the questions she answered. We talked a bit about Canada taking a leadership role. Our government has been very forthright in moving forward around the world to negotiate trade agreements. One of the important things, when we take a leadership role, is to ensure that when deal with other countries, we set the bar fairly high so the countries we do business with have an idea of how Canada will operate. We have taken a leadership role in that regard. Each and every time we have tried to negotiate these trade agreements, except for once, the NDP has always voted against it.

We have before us an excellent bill, Bill S-14. One of the people she quoted was Janet Keeping, the chair and president of Transparency International. She said:

Transparency International Canada is delighted that the federal government is moving to strengthen the Corruption of Foreign Public Officials Act (CFPOA), in accordance with Canada's international obligations, and encourages the government to ensure that the RCMP have the resources necessary to enforce the CFPOA effectively.

Considering that Canada is taking a leadership role, does this mean now that the NDP will be supportive of the government's actions to reach out around the world to increase trade with different countries?

[Hélène LeBlanc, NDP, LaSalle—Émard, QC]

Mr. Speaker, I am pleased to rise in the House today to speak to Bill S-14, An Act to amend the Corruption of Foreign Public Officials Act. The bill talks about corruption and transparency.

I will be sharing my time with the member for Saint-Bruno—Saint-Hubert.

As an NDP member of Parliament and the proud representative of LaSalle—Émard, I want to say that it is very important to my constituents to have a transparent and corruption-free government, whether we are talking about this government or any other level of government. The same goes for all elected officials, at any level of government.

It is ironic that this bill was introduced in the Senate—a point that has already been raised—when we know very well that that place is severely lacking in transparency and ethics when it comes to corruption, for example.

However, when I see my Conservative colleagues rise in the House and say that a bill is a priority for this government, it always makes me wonder why the government did not introduce the bill itself if this was such a priority. I have asked myself that question about all of the bills that have recently come to the House.

This is not the first time this kind of bill has come up. In 1997, Canada signed the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions. Canada ratified the convention in 1998. That was a while ago.

Then, there was the United Nations Convention against Corruption in 2004. This convention was ratified in 2007. That was not all. In 2008, the RCMP created an international anti-corruption unit, made up of two seven-person teams in Ottawa and Calgary. This unit focuses on detecting, investigating and preventing international corruption such as bribery, embezzlement and so on. The RCMP oversees this unit.

Canada and Canadians have been concerned about this issue for many years.

In March 2011, Canada and the Corruption of Foreign Public Officials Act were reviewed by members of the OECD working group on bribery. They welcomed Canada's efforts on this issue, but raised objections to the limits on the legislation's jurisdictional reach, the insufficient number of investigators working to uncover bribery of foreign public officials and the lax penalties that would be imposed upon conviction. These were the two criticisms presented.

Since we are part of this convention, it would be useful to conduct periodic reviews and evaluations on this.

They also made a list of recommendations, which is a little too long for me to read here. I would still like to talk more about some points related to the bill now under debate in the House.

Then, in September 2012, Transparency International, a non-governmental organization, released its eighth annual progress report on the enforcement of the OECD Anti-Bribery Convention, which I mentioned earlier. Moreover, the Transparency International board of directors is chaired by a Canadian, who indicated that Canada was in the moderate enforcement category.

This is one of the problems: despite ratifying these conventions for several years, Canada is still enforcing them only at a moderate level despite what the bill says. However, according to Transparency International, active enforcement is necessary to ensure that the legislation actually enables us to tackle this problem. We think that there are not enough resources specifically allocated to do this.

The report also made some interesting recommendations. It proposed ensuring that charges not fall under territorial jurisdiction, but rather be based on the principle of nationality. That is one of the interesting parts of this bill. In other words, any time a Canadian national bribes a foreign public official, the principle of nationality will facilitate the beginning of the legal process under the Criminal Code.

This recommendation, originally made by Transparency International, has been included in Bill S-14. The hope is that it will facilitate launching legal proceedings dealing with the bribery of foreign public officials. Clearly, whether we work here or abroad, we must always hold ourselves to the highest standards regarding ethics and transparency.

This is important for Canadian industries that operate here in Canada as well as abroad, because there is a cost involved any time Canada's reputation abroad is sullied. There is a high cost for the Canadian economy as well as the industries that operate here or abroad.

Canada also needs to show some leadership. We are a democratic nation that has ethical standards. We have established standards regarding working conditions, living conditions and the environment. It is therefore very important that we continue to lead by example, both here and abroad. It is very important to keep this in mind.

Canadians want businesses representing Canada overseas to do so in a responsible, respectable manner. Canadian companies want clear and consistent standards for international business.

[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.

The House resumed consideration of the motion that Bill S-14, An Act to amend the Corruption of Foreign Public Officials Act, be read the third time and passed.

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

Mr. Speaker, I thank my colleague for Vancouver East for the benefit of her years of experience in this House in being able to talk about those issues.

I will be splitting my time with my friend from Chicoutimi—Le Fjord.

I rise today in the House to support Bill S-14, an act to amend the Corruption of Foreign Public Officials Act, and I do so for a number of reasons.

The bill would make four main changes to the Corruption of Foreign Public Officials Act. I will elaborate on a bit on these changes.

Bill S-14 would increase the maximum sentence of imprisonment applicable to the offence of bribing a foreign public official from five to 14 years. It would eliminate an exception for so-called “facilitation payments”, whereby foreign officials are paid to expedite the execution of their responsibilities. It would create a new offence for falsifying or concealing books or records in order to bribe or conceal bribery of a foreign official. It would also establish nationality jurisdiction that would apply to all the offences under the act so that Canadian nationals could be prosecuted for offences committed overseas.

Having noted my support for the bill, I want to take a moment to comment on the process by which this bill comes before us in this House.

It is of concern that we get to this place by way of a 2011 report from Transparency International. That organization ranked Canada as the worst of all G7 countries with regard to international bribery with “little or no enforcement” of the scant legislation that exists in this country on these matters. This is to say that Canada needed to be named and shamed publicly, internationally, for our lax legislation and approach to these issues of corrupting public officials in other countries.

I also want to comment on the timing of the bill, which reflects a curious pathology of the current government. The Conservatives have been in power through a minority and now a majority government since 2006. It seems to elude them that they have been here seven years and that all that they do, now that they have been in power so long, is really an indictment of their own conduct as a government. Implicit in this kind of legislation is an indictment of what they have failed to do over the previous seven years in government.

I note that earlier today the parliamentary secretary justified Bill S-14 on the basis of the fact that we are a trading nation. Well, we were a trading nation as well when the Conservatives came to power in 2006. In fact, we have always been a trading nation. We have always been a very open economy, with goods coming and going to and from this country to other places around the world. When did dawn break over Marblehead? When did the Conservative government realize that we have always been a trading nation? The issues that the bill is meant to address existed in 2006 just as well as they exist in 2013.

It seemed to have taken a series of national embarrassments, largely in the extractive industry, to get the Conservative government to recognize that it needed some legislation such as the bill that we have before us. However, it is still not clear, after all of this, that the Conservatives embrace this legislation.

We had Bill C-300 before in this House. It was a bill that would have required extractive companies receiving government support to meet certain standards. As well, it would have established a system for issuing and assessing complaints against such companies. The government saw fit to whip that vote and defeat that legislation.

We had as well the spectacle of the foreign affairs minister introducing Canadian firms to the transition government in Libya before the United Nations could even assess the needs of post-conflict Libya. Among the companies that our minister of foreign affairs took to Libya, according to media reports, was SNC-Lavalin, a company whose contracts are now being investigated in 10 different countries. It is a company that has been banned from bidding on World Bank projects for 10 years. This is a government that only very recently saw fit to take SNC-Lavalin back into Libya to introduce it to a transition government.

We know too that to date there have only been three convictions on these matters. Since 1999, I would cite the Hydro Kleen group being fined $25,000 in January 2005; Niko Resources Ltd. was fined in 2011 because its subsidiary in Bangladesh had paid for a vehicle and travel expenses for a former Bangladeshi state minister; Griffiths Energy International was fined $10 million in January 2013 after it agreed to pay a $2-million bribe to the wife of Chad's ambassador to Canada, and so on. There have been only three convictions since 1999.

All of this seeming reluctance on behalf of the government to bring forth legislation like this is confirmed by the source of this bill, and that is the Senate. The Senate is an institution with an enormous legitimacy deficit—

[Libby Davies, NDP, Vancouver East, BC]

Mr. Speaker, I am pleased to rise in the House today to speak to Bill S-14, an act to amend the Corruption of Foreign Public Officials Act, and as we are debating this at second reading, it still has to go to committee.

I have listened with interest to the debate in the House today. It appears that all parties will be supporting this bill. We are debating it in principle but, nevertheless, it is important for us to go through the bill to examine it, as we should all legislation, and then it will go to committee.

I want to begin by saying that these last few weeks in the House have been particularly difficult because the government has used time allocation, a form of closure, I think 47 times, if I am keeping the tab correctly. It is really quite incredible that so much legislation has been rushed through.

We serve our constituents in this place. We do our work in the constituency, but our role in this House is due diligence in examining legislation and going through it. Even if we are going to support it, we have to go through it. That is part of holding the government to account in our parliamentary democracy, so it is very disturbing that we see the pattern over and over again. It has become routine. Other colleagues in the House have commented earlier that bills are now pro forma. We are expected to have a couple of hours of debate and take a cursory look, and then there is a time allocation for going through committee, report stage, and third reading. It is all established by timelines.

As members well know, that is not the way to do parliamentary business.

I wanted to begin my remarks with that because, as someone who has been around here a few years, I have watched the erosion of parliamentary and democratic practice in this House.

I can almost hear the voice of Bill Blaikie in my head, the former member for Winnipeg—Transcona. He was one of those folks in this place who had the long-term memory to know what had changed over the years. When change happens incrementally, just a little snippet at a time, it is difficult to get that overview. I think it would be useful one day to have that overview and to actually look at how much certain practices have changed in the House, say, from 10 years ago or 20 years ago. I think we would all be quite shocked, actually, no matter what matter party we belong to.

In any event, we are debating this particular bill today.

I want to begin by saying, as others have remarked today, that the bill is long overdue. Canada has, really, an embarrassing record on corruption overseas, in terms of lack of legislation.

As many have pointed out today, Transparency International, a very credible organization that monitors corruption and bribery in terms of what happens in different places in the world, in its 2011 report, ranked Canada as the worst of all the G7 countries with regard to international bribery. It pointed out that we had little or no enforcement, based upon the very minimal legislation we had.

There is no question that this is absolutely long overdue. It begs this question. Why does it take so long?

We look at the legislative agenda and look at all of the little boutique bills that come through on the Criminal Code, when they do not need to happen. Why has it taken so many years for something as major as this, which would deal with crime and corruption? Why has it taken so many years for anything to come forward? Where is the balance here? Where are the priorities? We are sort of pulling apart the Criminal Code clause by clause and adding in more mandatory minimum sentences. We have had so many Conservative backbencher bills, yet with something as major as this, in terms of Canada's role in the international community, we are hauled on the carpet by an organization that monitors international bribery and corruption, which has said, “You guys have got a pretty bad record; in fact you're basically the worst of all of the highly industrialized countries”. This is an embarrassment.

Further, there have only been three convictions in the last number of years, in fact, since 1999, and two of those were in the last two years. This is a pretty appalling record.

Suffice it to say I am glad, at least, that we are debating this bill today. At least the bill would take some steps.

Just to focus for a moment on what this bill would do, for those who are watching the debate, there would be four main changes to the Corruption of Foreign Public Officials Act. One of them would be to increase the maximum sentence of imprisonment applicable to the offence of bribing a foreign public official from five to fourteen years. That is a fairly significant change.

The second change in the bill would eliminate an exception that had been in operation for what is called facilitation payments, where foreign officials are paid to expedite the execution of their responsibilities. I will come back to this, because there are some concerns about it. While we agree that this exception should be eliminated, we have to examine the impact of that, for example, on NGOs that are operating in extremely difficult circumstances in political environments that are very risky and where they have to provide payments to get essential emergency humanitarian goods through—for example, going through police checkpoints. One does have to find that balance.

Third, the bill would create a new offence for falsifying or concealing books or records in order to bribe or conceal bribery of a foreign official. This is a very important change in terms of ensuring that transparency goes right the way down the line.

Finally, the bill would establish a nationality jurisdiction that would apply to all of the offences under the act. What this means is that Canadian nationals could be prosecuted for offences that are committed overseas. Again, that is a very important measure.

I want to say very clearly that New Democrats have long supported clear rules that require transparency and accountability by both Canadian individuals and corporations overseas. In fact, the NDP has had a number of bills in this regard. One of my colleagues, the member for Burnaby—New Westminster, had Bill C-323, which would allow lawsuits in Canadian courts by non-Canadians for violations of international obligations. The member for Ottawa Centre had Bill C-486, which would require public due diligence by companies using minerals in the Great Lakes region of Africa.

These are very important issues for Canadians, because we know that the extraction industry in Canada and the way it operates overseas is a major business concern. The way those companies do business is something of great concern to Canadians in terms of ethical practices. We have seen many movements here in Canada, including NGOs, the labour movement and individual citizens who have made sure they became active on this issue.

I want to point out something about a bill we voted on not that long ago, Bill C-300, which was a Liberal member's bill. When I raised transparency in the debate, the Liberal member for Charlottetown who replied to me pointed to Bill C-300 as another attempt to bring about better transparency and corporate accountability in foreign practices.

What is really interesting, and I am sure many members here will remember, is that it was defeated in part because 13 Liberal members voted against it. I remember the bill when it came up. There was intense advocacy for the bill from major NGOs across the country. They did an incredible job. The bill itself was very reasonable. It laid out basic standards for practice. However, there was, of course, a lobby against the bill. It was really quite shocking that 13 Liberal members voting against the bill resulted in the bill being defeated by a mere 6 votes.

We actually did come close to having that bill go through the House of Commons. I know that many of the organizations and individuals that had supported the bill were quite shocked that it had been defeated and were hugely disappointed about the amount of energy, time and effort that had gone into it.

It was a wonderful example of how Canadians look beyond their own border, look globally to see what Canada is doing. They had paid great attention to the need for Canadian corporations, companies and businesses to be accountable, to engage in ethical practices and to ensure there is not bribery and exploitative practices taking place in terms of labour rights or the environment.

These are things Canadians are actually very concerned about. I always feel very inspired when I see these organizations and people, whether they are putting out petitions or sending us emails. People really care about what we do in other parts of the world. We care about whether or not people are being exploited.

Just a little while ago, my colleague from Ottawa Centre talked about the situation in Bangladesh. I saw the story too, last night on CBC, and it is gut-wrenching and it makes us want to jump up and ask what we have to do to make sure these kinds of terrible, appalling conditions no longer exist.

We are talking about thousands of people who lose their lives because they work in terrible conditions where safety is disregarded, where people are not paid decent wages. If we layer on top of that all of the bribery and corruption that goes on, this is a multi-billion dollar business in terms of corruption and unethical practices.

I do not think the bill before us would address all of that, so the other bills we have before the House, particularly from the NDP members that I mentioned, are critical to ensuring there is a comprehensive approach to the way we are dealing with this situation.

We do have some concerns about the bill, which I would like to put on the record. assuming that the bill does get referred to committee. Because the bill would amend the definition of a business to now include not-for-profit organizations, we believe that this should be studied very closely at committee, and obviously witnesses need to be brought in to look at the impact of this particular change on charitable and aid organizations. As I mentioned earlier, the reality is that those organizations do sometimes, out of sheer necessity, have to make payments to expedite or achieve delivery of very essential items and humanitarian goods. This is something that is out there in the real world.

The bill is really tackling corruption and bribery, from the point of view that money is being made, money is being put in people's pockets and officials at embassies and so on are being bribed. That is what we are trying to get at, so I think we have to be very careful that we do not, by consequence, lay down a rule that could actually have a negative impact on organizations that are legitimately and in good faith trying to do very important work in some of these global areas where there is political, military and civil conflict going on. To make sure that kind of aid is delivered in a proper way is very important. We are hoping this issue would be examined more closely at committee.

The second item we think needs further examination is that the committee should also study the consequences of establishing an indictable offence punishable by up to 14 years in prison, because once 14 years is reached, it is actually the threshold at which conditional or absolute discharges of conditional sentences become impossible. It is obviously a much more serious penalty, and the committee, when it receives the bill, should examine that very carefully to make sure there is a balance in terms of our judicial system and conditional sentencing or the question of absolute discharges.

It is easy to make a blanket case, and again we have seen that so often with the Conservative government. It tends to make harsh, blanket rules that do not allow for discretion within our court system. Our court system has a history and a tradition of allowing judicial discretion, so judges can actually examine individual cases and the circumstances that warrant a harsher or a more lenient approach. That is what balance in the judicial system is about.

Therefore, one has to be very careful that in bringing forward new legislation we do not tip that balance and create a system that becomes so rigid that it becomes counterproductive. As the penalty is so harsh, people could end up pleading not guilty more frequently, or prosecutors may even be more reluctant to bring forward charges. There could be unintended consequences of having penalties that are so harsh. This is an issue that we think should be looked at in the bill. We support, in principle, the penalty being increased and the sentencing threshold being increased. However, we have to look more carefully at whether 14 years is the right cut-off.

Finally, in terms of changes that we think need to be looked at, there is the question of the rule on the facilitation payments that I spoke about earlier. We need to figure out how it impacts NGOs and non-profits. That issue would not be part of royal assent but rather would be under the consideration of cabinet, which is in the current text. That one aspect of the bill, if this bill were passed as is, would not go ahead with the rest of the bill. Therefore, that has to be examined. We need to know the reason that is being put aside. The discussion on the facilitation payments as they would impact NGOs might help inform that debate, but it is something we need to look at.

I also want to talk briefly about more current situations. We heard today from the member for Ottawa Centre, who updated the House on a communiqué he had received from the G8 that is currently taking place. It was quite interesting. He pointed out that in this communiqué the issues of corruption and transparency were quite prominent. His point was that we need to know that our own government is committed, not only to the words in these communiqués, but that it is actually going to follow up. I thought the member used a very good example when he spoke about international treaties that we sign for which there is no follow-up.

The example he used was Bill S-10 that was rushed through this House a few days ago, on cluster munitions. I was one of the people who spoke to that bill. The member pointed out very clearly in the debate on that bill that the NDP believes Bill S-10 would actually undermine the very international treaty that it is meant to be following up. The point is that when these communiqués come out and these commitments are made in places like the G8, we need to know they are actually going to be followed up. We need to know that those commitments mean something.

Again, we get back to this particular bill, Bill S-14, that has taken so long to come forward. Why has it taken so long? Why is there not a greater priority and emphasis on these kinds of bills? In the G8 communiqué, among the issues that were flagged, was the need to have greater transparency and a public registry.

The member for Ottawa Centre told us that one of the proposals is the need for a regime whereby companies would not be able to set up a shell company. Even if there is good legislation, if enforcement is to be taken on issues of bribery and corruption, it is very difficult. There could be a lack of political will, as I have just spoken about, or it could be that they are trying to figure out who the operatives are in a particular company. There is the idea of a public registry and the need for better transparency, as well as the notion that we should not allow elaborate legal complexities for the setting up of shell companies that in effect allow individuals and operatives to hide behind other entities. That makes it much more difficult to figure out who is doing what and where enforcement should be applied.

That is a very significant issue, and it is not covered in the bill, so it does show us that the bill does not go far enough. I think that was the member's point this morning.

Nevertheless, we are supporting the bill at second reading. We will pay great attention to it in committee. We will seek to improve the bill so that it lives up to its spirit and intent, which is ensuring that we tackle bribery and corruption by public officials in other countries.

The House resumed consideration of the motion that Bill S-14, an act to amend the Corruption of Foreign Public Officials Act, be read the third time and passed.

Sitting Resumed

[Sean Casey, Liberal, Charlottetown, PE]

Mr. Speaker, I am pleased to add my voice to the debate on Bill S-14, an act to amend the Corruption of Foreign Public Officials Act.

This bills makes six much-needed amendments to the Corruption of Foreign Public Officials Act. First, it would remove the words “for profit” from the definition of business so that bribes involving non-profits and charities are included in the act.

Second, it would increase the maximum sentence of imprisonment applicable to the offence of bribing a foreign public official, from the current maximum of 5 years in jail and unlimited fines, to 14 years in jail and unlimited fines.

Third, it would eliminate the exception contained in the act for what are called “facilitation payments”. These are payments for carrying out acts of a routine nature. That exception would be eliminated.

Fourth, it would create a new offence relating to books and records, and the bribing of a foreign public official or the hiding of that bribery.

Fifth, it would establish nationality jurisdiction that would apply to all of the offences under the act, so that all Canadians, permanent residents, Canadian companies, etcetera, can now be charged for crimes taking place in foreign countries.

Finally, it would designate the Royal Canadian Mounted Police as the agency with the exclusive ability to lay charges associated with the act. This specifically refers to the RCMP international anti-corruption unit.

These changes, as we have already heard, are meant to bring Canada in compliance with the OECD conventions on combatting bribery of foreign public officials in international business transactions, which this country ratified in 1998, as well as other international obligations. The Liberal Party will be supporting this bill, as it did through the Senate.

Despite widespread calls for Canada to step up its foreign anti-bribery measures, during the seven years the Conservatives have been in power, they have only begun to deal with the shortcomings of this statute that they propose to fix by this bill.

Bill S-14 updates Canada's anti-corruption laws and puts them in line with Canada's international anti-bribery convention commitments made with the OECD, as well as others made through the United Nations and the Organization of American States. In addition to meeting our commitments to various anti-bribery conventions, Bill S-14 allows Canada to be a country that demonstrates a high level of ethical standards for other countries.

There are important preventative measures that governments should be taking to ensure the RCMP has the resources to successfully investigate cases that are relevant to Bill S-14. A private member's bill, Bill C-474, proposed by the Liberal member for Scarborough—Guildwood, is one such measure, but sadly it is being opposed by the government.

Bill C-474 would attempt to make revenue transparency the norm in resource extraction industries. This transparency would allow for Bill S-14 to be more preventative instead of reactive.

Bill S-14, presently before the House, would result in more prosecutions and convictions for foreign bribery offences. Canada is a bit of a laggard in this regard, even accounting for size differences in population and economy. Canada falls behind, having only prosecuted three cases compared to other major economies. There were 227 cases prosecuted in the United States, 135 in Germany, 35 in Switzerland, 24 in France, 18 in Italy, and 17 in the United Kingdom, as examples.

This bill, as was indicated, would amend the Corruption of Foreign Public Officials Act, which was passed in 1998 and came into effect the next year. Its passage meant that Canada ratified the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions. The Corruption of Foreign Public Officials Act also implemented Canada's international obligations under the United Nations Convention against Corruption and the Inter-American Convention Against Corruption. In 2002, there were several technical amendments that were made to the act because of amendments to the relevant sections of the Criminal Code.

The OECD working group on bribery has produced at least three follow-up reports on Canada's progress. The phase 1 report was released in July of 1999, the phase 2 report in March of 2004, and the phase 3 report in 2011. Each one commented on Canada's progress and set out areas where Canada needed to improve to stay on par with its international neighbours.

The phase 1 report, in 1999, was focused on the implementation of the Corruption of Foreign Public Officials Act. It was almost entirely positive. It stated that the working group was of the opinion that the Canadian act met the requirements set by the convention. It did address the issues that might need to be discussed during the phase 2 evaluation in 2004, including the exemption for “acts of a routine nature”, which are the facilitation payments that I referred to earlier; the effectiveness of the penalties, including monetary sanctions; and the lack of the nationality jurisdiction. All of these things that were referenced in that phase 1 report, in July 1999, are now contained in Bill S-14.

Five years later, the recommendations contained in the phase 2 report included the following: giving a coordinating role to one of the agencies responsible for the Corruption of Foreign Public Officials Act's implementation; reconsidering the subsection 3(4) exemption for facilitation payments, which I referred to earlier; redefining the word “business” in section 2 to include “not for profit”; and reconsidering the decision to not establish nationality jurisdiction for the crime of bribing foreign officials. Again, all of these recommendations from the working group have been included in the provisions of Bill S-14.

In 2008, the RCMP formed an international anti-corruption unit, which became responsible for investigating bribes of foreign officials. It has two seven-man teams, one in Ottawa and one in Calgary, the latter being the centre of Canada's resource extraction industry. They work with the Public Prosecution Service of Canada, which does the prosecutions in foreign bribery cases. As of May of this year, there are 35 ongoing foreign bribery investigations. There have been only three convictions against companies in the oil and gas sectors, with fines of $9.5 million and $10.35 million in two of those cases.

As the House is aware, one was the case of Griffiths Energy International, an engineering company that had an inappropriate financial relationship with the wife of the former ambassador from Chad. Another case was Niko Resources, for bribing a Bangladeshi official. SNC-Lavalin, Canada's premier engineering firm, was recently convicted on bribery charges in Bangladesh and has been barred from competing for World Bank contracts for the next decade.

In 2009, an attempt to implement similar changes to those that are in the bill before us today passed at second reading. It was at committee stage when it died, after the Prime Minister prorogued Parliament in December of 2009.

That brings us to the phase 3 report of the OECD working group from a couple of years ago. This report again found problems in several areas. These included only counting bribes for the purpose of gaining a business advantage for profit. These sanctions were not effective, proportionate and dissuasive. The extraterritorial jurisdiction issue, which I mentioned in connection with the nationality jurisdiction, only applies to bribery carried out overseas if there is a real and substantial link to Canadian territory. Considerations of national economic interest, the potential effect upon relations with another state, or the identity of the natural or legal persons involved, are only prohibited if improper.

In 2011, the Transparency International Global Corruption Report noted that Canada fell in the lowest category of countries since it had little or no enforcement in terms of following the OECD bribery standards and was the lowest ranked member of the G7.

As indicated, the measures contained in Bill S-14 are long overdue and are needed to bring Canada in line with its international obligations. They are measures that the Liberals will be supporting.

Fighting Foreign Corruption Act

[Paul Dewar, NDP, Ottawa Centre, ON]

Mr. Speaker, I rise to speak, yet again, to Bill S-14. We on this side of the House have mentioned before that we support the bill. We believe that we could go further, as I mentioned in my comments and questions to the parliamentary secretary.

As I have done with all of these bills, I have to start off with our concern and my concern about the way the bill came to us. We have a bill on foreign corruption that has come to us from the other place. When a bill has an “S” in front of the bill number, it is an indication that it comes from the Senate. It has been said numerous times since we have been debating the bill that the government should have seen fit to start this bill here in the House. After all, the elected representatives, I think, are the best people to actually look at corruption, notwithstanding what is happening in the other place, speaking of corruption. Every day there is another story of corruption in the other place. I have to start by underlining that point.

The government seems to not even blush anymore when bills are sent over from the other place. At least on this bill, it should show some contrition that there is a bill, an act to amend the Corruption of Foreign Public Officials Act, that would crack down on foreign corruption, yet it comes from the other place, an unelected body, that is mired in corruption right now.

It is rather stark to see this happening with the current government, which claimed that it was going to be different. Now it has become just like the other guys. The government brings in closure and uses the Senate, abuses the Senate, to do its toil. That is what the government has done with Bill S-14. No one even blushes anymore. It is just business as usual with the current government. It uses the Senate to do its bidding, even on something as important as foreign corruption.

The bill itself, as has been mentioned, would simply bring us up to the minimum standard of our allies. The government was embarrassed by our critique, on this side of the House, in terms of how the standards of our companies abroad have fallen in terms of enforcement on corruption and corporate social responsibility. We just saw a news report last night about what happened in Bangladesh. We should not forget that. The NDP called for hearings at the foreign affairs committee. We would like to see more done on that.

It is about Canada getting back into the game and actually leading. The bill does not go far enough.

I will just give a quick résumé. The bill would make four major changes to the Corruption of Foreign Public Officials Act.

It would increase the maximum sentence, as was mentioned by the parliamentary secretary.

It would eliminate the exception for so-called facilitation payments, which is basically paying someone to grease the wheels to get a contract moving. Interestingly, we saw allegations of that happening in Montreal. Maybe we should be applying those rules more forcefully here. Maybe the government should be taking a look at who its candidates are when it recruits them and who it hires as staff when ministers hire ex-candidates. Hopefully, it will do a better job on that.

The bill would also create a new offence for falsifying or concealing books or records. We just received a communiqué from the G8, which came out half an hour ago. In fact, if the government is going to live up to what it has signed on to, it would actually have to amend the bill further, because there is an incentive in this communiqué for the government to do more in this area and to be more transparent in terms of books and records.

The fourth part of the bill would establish national jurisdiction such that Canadian nationals could be prosecuted for offences under the act that are committed overseas. They cannot go overseas and do something they could not do here.

I think it is important to put it into context. As I mentioned, we just received the communiqué from the G8 conference. It touches on many of the aspects we are dealing with in Bill S-14. It is a 10-point communiqué. I am not going to read all 10 points, because they are not all directly related to the bill we are debating.

The first point the G8 leaders signed on to is that “[t]ax authorities across the world should automatically share information to fight the scourge of tax evasion”.

When we talk about the corruption of foreign officials, a lot has to do with the way money moves around. I am delighted to see that this is in the communiqué. We will see if the government takes this seriously.

Second is that countries “should change rules that let companies shift their profits across borders to avoid taxes, and multinationals should report to tax authorities what they pay where”. This has been mentioned already by the parliamentary secretary. It would mean more transparency of companies' operations.

Third is that “[c]ompanies should know who really owns them and tax collectors and law enforcers should be able to obtain this information easily”. If we do not have this in place, the S-14 provisions would be very difficult to enforce, in some cases, because if we do not know who owns companies, we do not know who is influencing the companies. We do not have a full profile. In other words, if we were trying to establish that there was a payment to a company official, and we did not know who the company belonged to, it would be very difficult to prosecute.

We have heard from the G8 meetings that Canada was fighting this. We should be fighting back and getting the government to comply. It turns on the issue of beneficial ownership. That means that a company is hidden behind a shell. What the G8 is looking at, and what Mr. Cameron is pushing for and what number three in the communiqué is about, is that there be full disclosure. Companies can no longer have this parlour trick of hiding behind beneficial ownership. That means having a public registry of all companies showing exactly who owns them. We do not have that right now. Prime Minister Cameron said, “Personally, I would hope the whole world will move towards public registers of beneficial ownership”.

Aid agencies say that private registries would be second best. In other words, there would be a registry, but it would not be public; it would be in government. We are hearing that only the U.K. and the U.S. have committed to having public registries.

I hope the government will take this seriously, because if we are to deal with foreign corruption, we have to have transparency. If we are serious about this communiqué we have signed on to, we have to have a public registry of all companies, who owns them and where they sit. Otherwise, we will not be able to live up to the spirit of transparency.

Fourth is that “[d]eveloping countries should have the information and capacity to collect the taxes owed them—and other countries have a duty to help them”. This is critical when it comes to the issue of being able to influence foreign officials. What we often hear, on the ground, in emerging or developing economies is that officials are able to take advantage of their power to approve projects, et cetera, mainly because there is not a requisite tax system with the proper enforcement and oversight, so they can get away with it. This is what leads to corruption, because there is no proper oversight.

This is extremely important, because obviously, it would help benefit their citizens. It is also a way to deal with the potential for corruption. If there is full disclosure and sunlight, if you will, on who owes taxes and whether they have been paid, it is a disincentive for officials to use their power for corruption.

The fifth point is very important for us in the NDP: “Extractive companies should report payments to all governments—and governments should publish income from such companies”.

We have heard a positive message from the government that it will get behind this. We need to see legislation. From what we have seen and heard from the government, there is no requirement that these reports are to be made public. It is important that we fully embrace transparency and not go just halfway.

By the way, mining companies have said that they would sign on to this. I am hoping that all the extractives will get behind it.

Number six is very near and dear to my heart. It states: “Minerals should be sourced legitimately, not plundered from conflict zones”. As members know, this is the whole issue of conflict minerals. In places like the eastern part of the Congo, where there are human rights abuses and massive corruption, it is a conflict zone. Minerals that go into all of our devices, such as BlackBerrys and cell phones, come from a conflict zone. In essence, we are all, unknowingly for many people, carrying a piece of a conflict in our electronics, because we do not have the proper sourcing of minerals.

What the communiqué says is that “Minerals should be sourced legitimately, not plundered from conflict zones”. This is a challenge to the government. Are the Conservatives going to get on board? Bill C-486, which I put forward, would allow us to comply with what we have seen in the United States with Dodd-Frank. Legislation is in place to ensure that all minerals are from legitimate sources and are not aiding and abetting conflict. The Europeans are moving in this direction. The OECD, which we talked about in terms of this bill, has provided guidelines on ensuring that there is proper and appropriate oversight when it comes to sourcing minerals.

The sixth point is very important, and it is something I have worked on with a lot of people, including people in this place, to get Canada on board and at least get us up to the standard that has been established by others.

Number seven is very important: “Land transactions should be transparent, respecting the property rights of local communities”. When it comes to the corruption of foreign officials, one of the biggest trends we have seen in the last while is the acquisition of land by foreign countries, particularly in developing countries. There is a massive land grab going on right now, particularly in Africa. I will name some countries. China is big into this right now. It is banking land, taking over land. We need to ensure that local communities are respected.

Let us be honest. We are not perfect here in Canada. When we talk about social licence for companies to do their work in extractives, oil and gas, we need to respect local communities. This is an extremely important and urgent issue in developing countries, because we are seeing massive land grabs. It is about food security and about certain countries banking land and keeping an eye on their needs for minerals, oil, gas, et cetera, and in some cases, even food.

Number eight states that governments should roll back some measures on trade that they think would be helpful for trade.

Number nine is about ensuring that things are streamlined, particularly at borders between countries. We certainly know that issue with respect to our friends south of the border. Mr. Speaker, representing your constituency, you do not have to be told that this is extremely important.

Number 10, the last part of the communiqué from the G8, states: “Governments should publish information on laws, budgets, spending, national statistics, elections and government contracts in a way that is easy to read and re-use, so that citizens can hold them to account”. That is actually for us. I am going to read that one again. It is cogent, because if we are going to talk about fighting corruption abroad, we need to be transparent at home. The G8 has signed on to this.

“Governments should publish information on laws, budgets”—think about the parliamentary budget officer here—“spending, national statistics”—this is very interesting, considering what we have done to Stats Canada—“elections and government contracts in a way that is easy to read and re-use, so that citizens can hold them to account”. Number 10 needs urgently to be brought into force here.

I have listed these G8 points that just came out in the communiqué, because as I said in my comments when I questioned the parliamentary secretary, this bill does not go far enough. If we are going to seriously deal with corruption abroad, and we are going to actually be leaders, then it is not good enough just to get up to a minimum standard. That is not the Canadian way. I feel that we are living in the past with the current government.

The way the current government seems to operate, and the parliamentary secretary said it well himself, is that the Conservatives brought forward Bill S-14 because the OECD had cited us as being laggards. It was not until that happened that the government decided to bring forward this legislation. That is not the Canadian way. We should be leading. We should be looking at our practices to see where we are in terms of other jurisdictions.

Everyone knew that we were laggards. Transparency International has been saying so for quite a while.

We can look at this 10-point communiqué of the G8. Are we going to at least meet the standard of our allies? I would like us to see us go further.

For instance, I am concerned when it comes to the issue that Prime Minister Cameron cited about companies being transparent about who owns them so that we can deal with tax evasion. We are hearing that Canada is not going to do that. We are not going to publicly publish who owns a company.

As I mentioned, we need to deal with corruption seriously. We need to have full daylight, and if the government is only going to go halfway on this initiative, we will again fall back. We will be back in this House debating a bill to bring the standard up yet again. The government should embrace what both the U.K. and the U.S. are planning to do and have public registries listing who owns which companies. It should stop the shell game, particularly this practice of “beneficial ownership”.

The point is to make sure that we are transparent when it comes to the extractive industry. The government talked about signing on to the initiative for ensuring that all payments made between foreign governments and Canadian companies are transparent, but to whom? Is the information going to be kept within government, or would it be public? Will we have to ATI to obtain it, or would government do what other governments have done and make it transparent?

As I mentioned before, we must ensure that we get up to the standard of other countries on the issue of conflict minerals so that we no longer are looking the other way when it comes to the sourcing of the supply chain for many of the things that we rely on in our technologies.

If we are serious about it, we would embrace these initiatives of being fully transparent on who owns what companies, being fully transparent and pushing transparency when sourcing minerals in the supply chain for our electronics, and being fully transparent about payments between companies and governments abroad. Then we would be at the same standard as our allies. If we do not meet that standard, then we will be left with what we are doing here, which is trying to catch up.

I will be a bit partisan: what we have seen from the Conservative government is that we have become laggards. We sign on to international treaties, but then we do not follow up with implementation that lives up to the treaty.

For example, we have been called out by Norway and the Red Cross on the fact that the cluster munitions treaty that we signed on to will be undermined by Bill S-10, the proposed implementation legislation, which we have debated. It would undermine this international treaty.

We must think about this for a second. The International Committee of the Red Cross never comes out and criticizes government, but they just did yesterday. It said that Bill S-10, the implementation bill for the cluster munitions treaty that we have signed on to, would actually undermine the treaty. It is shocking.

I am very concerned that when we sign on to this communiqué for the G8 that we actually follow up, live up to the spirit of what we have signed on to and not undermine it.

Another example when it comes to international treaties is the arms trade treaty we agreed to. Then we find the gun lobby taking it over from the government. It is astonishing.

Instead of embracing the future, these guys are living in the past. They are affecting our reputation. Instead of getting on board with progress, they are holding us back just because of their ideology.

Bill S-14 will be supported by the NDP simply because it is the least the Conservative government can do. However, what we want to see is full transparency. When we see the follow-up to the communiqué on the G8, we will be holding the current government to account to at least come up to the standard of our allies.

Personally, and I am sure I speak on behalf of my colleagues, we would like to see Canada lead and not be a laggard. It is something I think most Canadians want to see as well.

[Bob Dechert, Conservative, Mississauga—Erindale, ON]

Mr. Speaker, enforcement is very important. The Prime Minister made a very important announcement in London last week about legislation that will be presented soon requiring Canadian companies to disclose all payments that they make to foreign governments. That is a big step forward.

The enforcement provisions under Bill S-14 and its penalty provisions are very important. They would be among the highest penalties in the world. Some have wondered why they should be. In fact, the penalties under Bill S-14 would be higher in some cases than the penalties for domestic corruption, but that just means that the Canadian Criminal Code probably needs to be updated as well.

We are setting the bar higher with the bill and we are sending a clear and strong message to Canadian companies and to people all around the world that Canada will not tolerate this kind of corruption, either here at home or abroad.

Another measure that I mentioned in my speech is that Canadian companies that engage in foreign bribery and are convicted of foreign bribery will no longer be able to bid on Canadian government contracts. That is a huge disincentive for them to do these kinds of things abroad. We think the combined suite of penalties and enforcement mechanisms we are introducing today would send a really strong message to Canadian companies and everyone in the world they need to compete fairly and ethically to succeed.

[Bob Dechert, Conservative, Parliamentary Secretary to the Minister of Foreign Affairs]

Mr. Speaker, it is my pleasure to rise today to participate in the third reading debate on Bill S-14, the fighting foreign corruption act. I would like to thank members of the Standing Committee on Foreign Affairs and International Development for considering the bill so quickly and our witnesses for their thoughtful contribution to discussion. I note the chairman of the foreign affairs committee is here, and I just want to say to all the members of the House what a superb job he does chairing that committee.

Corruption, in all its unsavoury forms, is an affront to the values of good, honest and hard-working Canadians. Our government's position of zero tolerance in this area is clear. Canada needs to work to root out corruption wherever it lies, and these amendments to the Corruption of Foreign Public Officials Act, or the CFPOA, offer a vital contribution in this regard.

Before I address the important amendments proposed in Bill S-14, I would like to first provide a sense of the considerable efforts Canada is already making in this area. It is a good story for Canadians and for Canadian businesses, and our government is convinced that the enactment of Bill S-14 would only make it better.

I would like to first establish where we are now; that is, firmly committed to combatting foreign corruption in all its guises. Our government's approach to tackling foreign bribery centres on two main thrusts, its prevention and its enforcement. This draws on contributions from a wide spectrum of stakeholders including federal departments, crown corporations and other agencies, all of whom collaborate closely. These actors have all worked constructively together to develop and implement the range of regulatory and legislative tools already in place to advance this worthy and indeed critically important cause. Canada is truly engaged in a whole of government approach to combatting corruption.

Clearly, the best means of addressing corruption is working to prevent it from occurring in the first place. Consultation and outreach figure heavily in such preventative work, and a number of government stakeholders are already engaged in this area. I would like to highlight a few of them and their contributions.

The Department of Foreign Affairs, for one, looks to prepare its diplomats to deal with the issues of corruption, before they serve abroad. Through the provision of information and training, the department educates its ambassadors and political and trade stream officers concerning the Canadian Corruption of Foreign Public Officials Act and Canada's international obligations in the area of corruption.

In March 2010, DFAIT adopted and provided to its missions around the world the policy and procedure for reporting allegations of bribery abroad by Canadians or Canadian companies. That policy was adopted and circulated to provide guidance to Canada's missions on what they should take as appropriate measures when confronted with allegations that a Canadian business or individual had bribed or attempted to bribe a foreign public official and/or committed other bribery-related offences. The policy essentially instructs Canadian officers at mission to relay any such information received to departmental officials back in Ottawa, who in turn transmit the information to law enforcement authorities here, as per an established set of standard operating procedures.

It should also be noted that DFAIT regularly dispatches its legal officers abroad to deliver presentations and serve as panellists in various fora with a view to advancing the anti-corruption cause and building awareness of the wide range of Canadian activity in this area. As just one example, Canadian legal experts from DFAIT delivered a presentation to the 2011 Conference of the States Parties to the UN Convention against Corruption concerning legal mechanisms for freezing the assets of corrupt foreign officials and for combating the bribery of foreign public officials.

As noted earlier, DFAIT is joined by other departments and stakeholders in such important preventative work. Public Works and Government Services Canada, for example, recently added the bribing of a foreign public official under the CFPOA to the list of offences that render companies and individuals ineligible to bid on contracts. That change became effective in November 2012, and it is hoped that it will serve as an added deterrent to companies and individuals contemplating or engaging in such activity.

Our government, through the combined initiative of several federal departments, also took steps in early 2012 to host a workshop in Ottawa on the subject of foreign bribery, with invited experts from various sectors including NGOs, academic institutions, Canadian companies and law firms. The workshop, entitled “New Ideas for Canada's Fight Against Foreign Bribery” was designed to help innovate and develop better measures for enhancing efforts in this area and saw more than 30 participants join officials in a discussion of several foreign bribery-related areas of interest.

The consultation covered topics such as the recognition of and resistance to the solicitation of bribery, voluntary disclosure, books and records offences, the discouragement of facilitation payments, advocacy concerning SMEs, education, training and focused awareness raising, as well as a discussion of the possibility of amending the CFPOA.

The consultation enabled the government to register preventative messaging with Canadian companies first-hand and to really contemplate how to best improve the enforcement of the CFPOA and seek stakeholder support in working to prevent bribery before it occurs and to detect it when it does. The workshop provided a pivotal platform for enhanced engagement and co-operation with these stakeholders as we look to upgrade efforts in this area. We continue to draw on the invaluable input received. The amendments before us today reflect some of that solicited feedback, and we will probably mine some of the good ideas heard for some time to come.

Prevention is only half of the story. Our government is working hard to ensure that we effectively enforce what already exists in the way of legislation and other instruments established to advance the fight against foreign corruption.

Of course the legislative centrepiece of Canada's work on foreign corruption is the CFPOA, which has been in force since 1999. I believe we are all familiar by now with the reasons for the CFPOA's development and its role in honouring Canada's international obligations in this area, as well as the principal purposes it serves and the main activities it criminalizes. I will not repeat those here.

Rather, I would like to use some of my time today to very briefly flag the indispensable contributions that our key law enforcement agencies are making to the enforcement of that existing legislation governing the corruption of foreign public officials. The RCMP serves as the primary enforcement body for the CFPOA and since 2008 has had an international anti-corruption unit in place enforcing and raising awareness about the CFPOA. With teams placed in both Ottawa and Calgary, the latter owing to its position as the largest hub for Canada's extractive industries and related business, this unit would only get better and more effective with the benefit of Bill S-14's enactment.

The Public Prosecution Service of Canada works hand in hand with the RCMP to tackle corruption. Since 2006 and its creation, the PPSC has stationed one of its counsel in Ottawa with the explicit mandate to advise and assist the RCMP's two teams in Ottawa and Calgary with their anti-corruption investigations. This collaboration is paying off. We have seen 3 convictions, and there are another 2 cases pending and 35 more under investigation. The penalties are increasing significantly with each conviction, and we can expect this trend to continue as our legislation gets tougher and we get better at identifying and holding these offenders to account. We are on the right track, and Bill S-14 would only drive us further in that positive direction.

Having touched on what exists already and where we are at, I would like to turn now to where we are going next. Bill S-14 is fundamental to our continued progress, and these reforms would make a significant contribution to our ongoing work to ensure that Canadian companies refrain from bribing foreign public officials and continue to act in accordance with the highest legal and ethical standards in the pursuit of freer markets and expanded global trade. This bill is compelling evidence of our government's commitment to this work, and its passage would send a crystal clear signal to other countries of our expectation that they should hold their own companies to the same account.

These six amendments seek to introduce nationality jurisdiction, specify which authority can lay charges, eliminate the facilitation payments exception, clarify the scope of the CFPOA, increase the maximum penalty and create a new books and records offence.

If I may, perhaps I will just refresh the House's memory as to what each of these amendments would provide for, in turn.

The first amendment, which would introduce nationality jurisdiction, seeks to expand the limited reach of the existing act. The CFPOA's current requirement that the prosecution demonstrate a “real and substantial link” between Canadian territory and the offence charged effectively acts to circumscribe the number of corruption cases we can bring to justice. The assertion of nationality jurisdiction would allow us to tackle possible foreign bribery engaged in by Canadians or Canadian companies regardless of where that bribery might take place, by enabling us to prosecute them on the basis of their Canadian nationality alone.

The second amendment would provide the RCMP exclusive authority to lay charges under the act. This would permit the RCMP to ensure that there is a uniform approach taken to the pre-charge stages of the CFPOA cases throughout Canada. It would also put Canadian businesses on notice that it is clearly the RCMP that is the lead law enforcement agency as far as investigations are concerned.

The third amendment proposes to eliminate the facilitation payments exception currently provided for under the CFPOA. In essence, any payments made to expedite or secure the performance by a foreign public official of any act of a routine nature do not constitute bribes for the purposes of the current act. Such facilitation or grease payments to move along a foreign public official's performance of something he or she is already beholden to perform are plainly open to abuse and should also be characterized as bribes, which are payments specifically made to extract a business advantage and are already illegal under the act.

Indeed, bribes are illegal under the legislation of every OECD country. This is important in light of any concerns that this amendment would place Canadian companies at a competitive disadvantage internationally. As noted in the bill, the entry into force of the specific amendment would be delayed to further address any such concern in recognition of the fact that some other countries continue to permit facilitation payments and, most importantly, to provide Canadian companies with a fair and reasonable amount of time to adjust their own practices, internal policies and operations should that prove necessary.

The fourth amendment, which proposes the elimination of the words “for profit” from the definition of business would ensure that the reach of the CFPOA is not unduly restricted. It clarifies that the scope of the CFPOA is plainly not limited to bribes paid to for-profit enterprises or in the course of profitable businesses. This is key if we are target those who pay bribes on behalf of companies that may not earn a profit in a given year, as well as organizations with a not-for-profit raison d'être. These entities would be caught within this proposed change.

The fifth amendment is straightforward: an increase in the maximum jail term for a foreign bribery offence under the act to 14 years. It is currently set at five. The current possibility of unlimited fines for such offenders would remain untouched.

The new books and records offence that composes the sixth proposed amendment is meant to prevent individuals and companies from cooking the books. While there are offences under the Criminal Code that criminalize the falsification of books and records, they are not specific to foreign bribery. Canada is required to put such specific measures in place in order to honour its obligations under international anti-corruption treaties to which it is a party. The amendment would add another enforcement measure to our tool kit and would be punishable by a maximum of 14 years' imprisonment and unlimited fines; the same severity that is in place for the offence of foreign bribery.

Bill S-14 was adopted by the other place as tabled and I would offer that it is plainly in the national interest that the House do the same. If adopted, the amendments I have just described would clearly and unequivocally demonstrate to interested parties in Canada and abroad that corruption is simply not the Canadian way of doing business, nor should it be the way of doing business anywhere. Ensuring a level playing field for international business is crucial to the global fight against foreign bribery. Legislation such as Bill S-14 is vital if economic growth and expanding global trade and prosperity are to flourish. Indeed, foreign bribery works to undermine that growth, trade and prosperity and to corrode the rule of law that is the foundation for the market freedom so absolutely vital to a trading nation such as Canada.

Bill S-14 seeks to ensure that our companies continue to embrace the highest legal and ethical standards in pursuing their business internationally. Canadians expect no less, and rightly so. Our government firmly believes that Canada can compete with the best and win fairly. Bill S-14 is an expansion of that belief and of our twin commitment to both strengthening the fight against corruption and securing jobs, economic growth and long-term prosperity for all Canadians. I ask all hon. members in the House to work with us to ensure its passage into law as quickly as possible.

The House proceeded to the consideration of Bill S-14, An Act to amend the Corruption of Foreign Public Officials Act, as reported (without amendment) from the committee.

Foreign Affairs and International Development

[Lois Brown, Conservative, Parliamentary Secretary to the Minister of International Cooperation]

Mr. Speaker, I have the honour to present, in both official languages, the 13th report of the Standing Committee on Foreign Affairs and International Development in relation to Bill S-14, an act to amend the corruption of foreign public officials act.

The committee has studied the bill and has agreed to report the bill back to the House without amendment.

Business of the House

[Peter Van Loan, Conservative, Leader of the Government in the House of Commons]

Mr. Speaker, this time last week, I said that I hoped to have a substantial list of accomplishments to report to the House. Indeed, I do.

In just the last five days, thanks to a lot of members of Parliament who have been here sitting late at night, working until past midnight, we have accomplished a lot. Bill C-60, the economic action plan 2013 act, no. 1, the important job-creating bill, which was the cornerstone of our government's spring agenda, passed at third reading. Bill S-8, the safe drinking water for first nations act, passed at third reading. Bill S-2, the family homes on reserves and matrimonial interests or rights act, passed at third reading. Bill C-62, the Yale First Nation final agreement act, was reported back from committee and was passed at report stage and passed at third reading. Bill C-49, the Canadian museum of history act, was reported back from committee. Bill C-54, the not criminally responsible reform act, was reported back from committee this morning with amendments from all three parties. Bill S-14, the fighting foreign corruption act, has been passed at committee, and I understand that the House should get a report soon. Bill S-15, the expansion and conservation of Canada’s national parks act, passed at second reading. Bill S-17, the tax conventions implementation act, 2013, passed at second reading. Bill S-10, the prohibiting cluster munitions act, passed at second reading. Bill S-6, the first nations elections act, has been debated at second reading. Bill C-61, the offshore health and safety act, has been debated at second reading. Bill S-16, the tackling contraband tobacco act, has been debated at second reading. Finally, Bill C-65, the respect for communities act, was also debated at second reading.

On the private members' business front, one bill passed at third reading and another at second reading. Of course, that reflects the unprecedented success of private members advancing their ideas and proposals through Parliament under this government, something that is a record under this Parliament. This includes 21 bills put forward by members of the Conservative caucus that have been passed by the House. Twelve of those have already received royal assent or are awaiting the next ceremony. Never before have we seen so many members of Parliament successfully advance so many causes of great importance to them. Never in Canadian history have individual MPs had so much input into changing Canada's laws through their own private members' bills in any session of Parliament as has happened under this government.

Hard-working members of Parliament are reporting the results of their spring labours in our committee rooms. Since last week, we have got substantive reports from the Standing Committee on Public Accounts, the Standing Committee on Foreign Affairs and International Development, the Standing Committee on Agriculture and Agri-Food, the Standing Committee on Health, the Standing Committee on Procedure and House Affairs, and the Standing Committee on Government Operations and Estimates.

We are now into the home stretch of the spring sitting. Since I would like to give priority to any bills which come back from committee, I expect that the business for the coming days may need to be juggled as we endeavour to do that.

I will continue to make constructive proposals to my colleagues for the orderly management of House business. For example, last night, I was able to bring forward a reasonable proposal for today's business, a proposal that had the backing of four of the five political parties that elected MPs. Unfortunately, one party objected, despite the very generous provision made for it with respect to the number of speakers it specifically told us it wanted to have. Nonetheless, I would like to thank those who did work constructively toward it.

I would point out that the night before, I made a similar offer, again, based on our efforts to accommodate the needs of all the parties.

Today we will complete second reading of Bill S-16, the tackling contraband tobacco act. Then we will start second reading of Bill C-57, the safeguarding Canada's seas and skies act.

Tomorrow morning we will start report stage of Bill C-49, the Canadian museum of history act. Following question period, we will return to the second reading debate on Bill S-6, the first nations elections act.

On Monday, before question period, we will start report stage and hopefully third reading of Bill C-54, the not criminally responsible reform act. After question period Monday, we will return to Bill C-49, followed by Bill C-65, the respect for communities act.

On Tuesday, we will also continue any unfinished business from Friday and Monday. We could also start report stage, and ideally, third reading of Bill S-14, the fighting foreign corruption act that day.

Wednesday, after tidying up what is left over from Tuesday, we will take up any additional bills that might be reported from committee. I understand that we could get reports from the hard-working finance and environment committees on Bill S-17 and Bill S-15 respectively.

Thereafter, the House could finish the four outstanding second-reading debates on the order paper: Bill C-57; Bill C-61; Bill S-12, the incorporation by reference in regulations act; and Bill S-13, the port state measures agreement implementation act.

I am looking forward to several more productive days as we get things done for Canadians here in Ottawa.

[Bob Dechert, Conservative, Mississauga—Erindale, ON]

Mr. Chair, my understanding of the legislation is that we are raising the bar here. What I believe we heard from the officials and from the Canadian Bar Association is that under domestic law there is a range of offences and the penalties, from 5 to 14 years, depending on the offence. Bribing a judge is 14 years.

Under this legislation, there is no minimum penalty, which is usually the objection raised by the opposition. The judge can impose any sentence from a day to 14 years. There is also the opportunity for probation. We heard from Transparency International Canada, an organization that is directly involved in these issues. It is a non-governmental organization and it represents the entire range of views in Canada. There was extensive consultation done with Transparency International. We heard from Ms. Keeping that they think this penalty clause is appropriate. They think Canada should send a strong message to Canadian businesses that these types of bribes are not tolerable. We hope this will be in line with what other countries are doing.

With respect to facilitation payments, we know, because this is something new, that Canadian companies need time to adjust their policies and processes and procedures. That's why there is a provision in Bill S-14 providing for implementation at a later date. It would not be required to go back to Parliament, which would be a long and involved process. Of course, the opposition and any other Canadian can put pressure on the government, both through Parliament and outside of Parliament, to bring those provisions into force, which they can then do with the stroke of a pen. That is actually a fairly effective way of dealing with it.

With respect to the point about NGOs, the Canadian Bar Association pointed out that only organizations that carry on a business, a profession, or a calling would be caught by these prohibitions. Clearly, the Red Cross or Doctors Without Borders is not a business, profession, or calling. If the Red Cross had to pay some small facilitation payment to get food or medical supplies into an affected country, it's hard to see that there would be any risk of prosecution under Bill S-14, since the Red Cross is not a business, profession, or calling. That's pretty clear. I also think you have to rely on prosecutorial discretion not to lay a charge in what is essentially a de minimis situation.

For all those reasons, I don't think we need to add another provision to this bill. I also think what we're doing here is raising the bar. This is a modern statute with modern language. There may be an argument that the Criminal Code provision should be revisited, and such an argument could be taken up at a later date.

Therefore, I would suggest we leave the legislation as drafted, and pass it accordingly.

Thank you.

[Janet Keeping]

Speaking on behalf of TI Canada, I'll just say that it is, of course, our understanding, too, that this provision regarding removing the facilitation payments exemption is a response to criticism of us in the past.

I'll have to tell you that the question of how facilitation payments should be treated under the law has been one that has given rise to the most vigorous debates I have heard around the board table in three years at TI Canada, and also in some of our events for the public. I would have to say as well that, on balance, the position of TI Canada is that this is the way of the world. The world is taking corruption more seriously. We encourage that, of course. At the end of the day, facilitation payments are bribes and have to go.

So we are content with what we see in Bill S-14.

[Bob Dechert, Conservative, Mississauga—Erindale, ON]

Thank you for that.

I'd like to go directly to the issue of facilitation payments, and we've had a lot of discussion about it here today.

My understanding is that Canada is responding to the OECD report that included interventions by the United States in a peer-reviewed report that pointed out a number of areas of the current Corruption of Foreign Public Officials Act that needed, in their view, to be amended and updated to reflect the OECD convention. One of those criticisms was the fact that our legislation currently does not prohibit facilitation payments.

We all know that there is a provision in Bill S-14 allowing a delay in enforcement to give Canadian companies time to change their policies and procedures to ensure that they don't run afoul of this, which will be a new prohibition on Canadian companies.

There's some misunderstanding as to whether or not American companies are allowed to make these kinds of payments. When I asked that question of our officials—of Mr. Kessel—he pointed out that under the Securities Exchange Act these kinds of payments are in fact illegal and that administrative proceedings can be brought against public companies in the United States that are governed by the Securities Exchange Act.

I wonder if you could, Ms. Keeping, tell us, in your view, is the facilitation payments provision of Bill S-14 a response to the criticisms that were made of Canada by the United States and other countries in the OECD report? Do you think that it puts Canadian companies at any kind of a disadvantage versus American companies in doing business around the world?

Maybe I could ask the same questions of you, Mr. Osborne. Do you agree with Mr. Kessel's view of American provisions that prohibit some American companies from making these kinds of payments?

[Bob Dechert, Conservative, Mississauga—Erindale, ON]

Thank you, Mr. Chair.

Thank you to each of our guests for being here today.

I'd like to start with a question for both Ms. Keeping and Mr. Osborne.

Ms. Keeping, I just want to start by saying that I thought the conference that Transparency International Canada organized a couple of weeks ago was very good. I thought you had a very broad range of people representing government, academia, NGOs, and business. We heard a wide range of views on these issues with respect to Bill S-14 and, certainly, they were generally very supportive. I commend Transparency International Canada for holding that conference. I thought you did a superb job.

[Janet Keeping]

If I might make a comment there, I'll be frank that at TI Canada we have not paid explicit attention to the fact that there is this discrepancy between what's proposed by way of penalties in Bill S-14 and what we have in our current criminal law.

But I'd have to say that anybody connected with Transparency International wants to see greater attention paid to the problem of corruption. Therefore, if we're going to find consistency, it ought to be consistency at the more serious level...not to think that foreign corruption should be necessarily reduced to the penalties in our Criminal Code, which may indeed be inadequate.

[Janet Keeping]

Well, historically that's certainly been correct, and that's been noted by the OECD and the other organizations that monitor these things. Of course, the OECD is particularly interested in how we do vis-à-vis the OECD's anti-corruption convention, but yes, in the past, quite frankly, we've been seen as a laggard. There's nothing sensational in saying that. It has been well documented.

But ever since we signed the United Nations Convention against Corruption and the RCMP was mandated to create specialized teams to enforce the Corruption of Foreign Public Officials Act, we've been doing a lot better. I've heard RCMP officers speak several times over the last few years on their involvement in enforcing the CFPOA. They're working hard at it. It's very convincing. I think they're very committed to the objectives.

I'm glad to be asked this question, because 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.

I know that's not the mandate of this committee today—you're looking at a piece of legislation—but keep in mind that we must have the RCMP and the prosecution services adequately resourced to enforce the legislation.

[Janet Keeping]

Thank you very much for this opportunity to speak to the committee.

I'll just correct something right off the bat. I am with Transparency International Canada. I'm president and chair of the board of Transparency International Canada, which is a national chapter of Transparency International. That parent organization was formed in 1993 and is based in Berlin. It has about 100 chapters around the world and is often considered the leading NGO committed to the struggle against corruption globally.

TI Canada, on the other hand, was formed in 1998. We're a coalition that includes professionals, lawyers, such as me, and accountants, and people from the NGO community, retired government officials, and people from business, including from the extractives.

My primary mission today speaking on behalf of Transparency International Canada is to urge the adoption of Bill S-14. 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.

Passage of the bill will allow the Canadian struggle against corruption abroad to move on to other fronts. The bill addresses issues that have been pointed to by many over the years, both from within Canada, including from Transparency International Canada, and from outside our country, as I'm sure you well know.

I'm going to be very brief here and just mention the provisions of the bill that have been of special interest to Transparency International Canada. One is the addition of nationality jurisdiction. It needs to be added. Bill S-14 would add it, and we're very pleased to see this.

On the more serious penalties that the earlier speaker from the Canadian Bar Association alluded to, in our view, increasing the penalties sends the message that Canada is truly serious about the struggle against corruption. Many people believe that only when individuals realize they could go to jail for a significant period of time will more people resist what they see as the corrupt, easy way to do business. I think it's probably more important that enforcement of the law be vigorous and consistent than to have the possibility of long jail sentences, but generally speaking, we are pleased to see that the penalties are being increased.

What about facilitation payments? We have debated this internally in TI Canada and within the course of public events that we've put on several times over the last few years. We understand the complex and, with some of them, subtle issues here, but we are supportive of eliminating the current exemption for facilitation payments.

In our view, the addition of the books and records offence that's created by Bill S-14constitutes a very important start in the area of books and records. We also need a civil books and records provision, but we are fully aware of the constitutional limitations on the federal government in this area. In our view, adding a criminal books and records offence, which Bill S-14 does, will be of tangible assistance to the struggle against corruption.

Just briefly, we also spent a fair bit of time at TI Canada talking about the change to the definition of “business”, eliminating the words “for profit”, and we believe that too is an appropriate measure and are glad to see it in Bill S-14.

I want to conclude my very brief remarks by expressing appreciation to those in the Department of Foreign Affairs and International Trade who organized a two-day workshop in early January 2012 to examine many of the issues now addressed by Bill S-14. It was an excellent effort that was well prepared for, well conducted, and well followed up on. Several government agencies were represented, and TI Canada was pleased to have had a number of its directors and our administrative consultant involved in that process.

It was an open and honest discussion. We felt we were heard, and we probably would have had a whole lot more to say about Bill S-14 had we not been involved so far up front in this process.

Thank you for the opportunity to make this statement, and I welcome questions later.

[Joseph K. Ingram, President, North-South Institute]

Thank you, Mr. Chairman.

I want to thank you and other members for inviting the NSI to comment on the proposed amendments to this bill. It's an honour for the institute, Canada's oldest independent development think-tank—and, I might add, ranked for the past two years as the world's leading development think-tank by the Global Go-To Think-Tank survey. Despite our annual budget of less than $5 million, we were also ranked in the same survey as Canada's leading development think tank.

In addressing the significance of the bill, I wanted to briefly describe the global context in which the bill is being considered. I don't do it as a lawyer or as an expert on the amendments themselves, but rather as a Canadian development economist concerned about the defining challenges of 21st century global development. I also do it as someone who has worked in international development since 1970, including 30 years with the World Bank, including 14 years living in and managing financial support to some of the most corrupt countries on the planet, according to Transparency International's Corruption Perceptions Index—and I won't name them in this room.

I know first-hand the insidious and devastating effect that corruption, fed by an absence of representativeness, transparency, and accountability—the three pillars of good governance—has on a society's economic and social health. It's not pretty and it's not how Canadian or any other taxpayers' resources should be used.

As noted in the recent “Africa Progress Report 2013”:

Transparency and accountability are the twin pillars of good governance. Taken together, they are the foundation for trust in government and effective management of natural resources—and that foundation needs to be strengthened.

As also suggested by this eminent international panel, the absence of these pillars is especially damaging in resource-rich states where the financial stakes and temptations to maximize personal gains by political and economic elites, including foreign investors, are high. The unprecedented growth in demand for natural resources, particularly extracts coming largely from the emerging economies, is producing both volatility and rising commodity prices, with global competition for resources intensifying, especially in Africa where the potential is as yet relatively unexploited. For Canada, a globally connected resource-rich country whose economic health depends increasingly on its capacity to globalize its trade relations, the intensified competition constitutes a particular challenge. The comfort zone of producing primarily for domestic consumers and the U.S. market is quickly evaporating.

As noted by the Conference Board of Canada in 2012, the past decade has effectively been a lost decade for Canadian exports:

The 2000s were a “lost decade” for Canadian exports of both goods and services, as essentially no growth in volumes occurred—even though the volume of global trade in goods expanded by 68 per cent during this period.... We have lost export market share to emerging markets in a wide variety of products, including Canadian stalwarts like wood and paper products.

During the same period, as noted recently by the former Governor of the Bank of Canada Mark Carney, “We've dampened our [2013] forecast of exports because we're seeing a competitiveness challenge...”. Indeed, among the G-20 countries during the same period of 2000 to 2012 Canada was one of eight economies that lost market share of world exports, by about 37%, just behind the U.K., which had the biggest loss of about 40%. The 12 gainers were led, not surprisingly, by China with a gain of 170%—but Australia also saw a gain of 50%.

This loss of market share in exports at the global level is also consistent with a loss of competitiveness of Canadian extracted investments in Africa. Whereas in 2007 Canada was the leading investor in mining on the continent, notwithstanding an increase in the stock of Canadian investment from just under $3 billion to about $31 billion today, we are now fifth, exceeded by China, Australia, South Africa, and the countries of the European Union.

We recently discussed some of these issues at NSI's Ottawa forum entitled “Governing Natural Resources for Africa's Development”—and here I should add that both Dean Allison and Lois Brown made important contributions to that discussion—and addressed how Canada could elevate itself in that sector to being a leader on the continent in natural resource exploitation and investment.

This is at a time when African governments themselves and members of the G-8 are increasingly concerned about using mineral and energy resources more effectively, thereby ensuring that they become the economic blessing they should be rather than the curse they have tended to be.

Indeed, a senior vice-president of one of Canada's leading mining investors in Africa said during the conference that Canadian mining companies could no longer compete on the basis of cost alone, that we needed other attributes.

Enhancing the Canadian brand is one of them, as is being a policy-maker on dealing with corruption in natural resource exploitation, rather than being a policy-taker. Canada needs to be seen as a leader in setting global best practice standards, especially at a point in history where African governments, many of them democracies, are taking active measures to enhance domestic resource mobilization and stem the illicit outflow of financial resources.

Just to give you an example, it's estimated that the outflow of illicit funds in the form of mispriced trade, transfer pricing, etc., from Africa was about $63 billion in 2012, exceeding the inflow of aid and foreign direct investment of about $62 billion. The new Africa mining vision that was developed by the African Union in collaboration with the UN Economic Commission for Africa sets out a compelling agenda for facilitating such changes by shifting the focus from simple mineral extraction to much broader developmental imperatives in which mineral policy integrates with development policy. This means effective regulations governing extractive companies, the strengthening of institutional capacity, and policies that ensure that resources generated are spent to produce sustainable and more equitable outcomes.

For the international community, this means creating a level playing field where natural resource investors are subject to the same set of rules, building on the U.S. Cardin-Lugar amendment and the EU transparency directive adopted by the Europeans earlier this week, so that companies operating in Africa apply the same accountability principles and the same standards of governance that they are held to in rich countries. They should also recognize that disclosure matters.

In our view, Bill S-14 is an important step in that direction, in that it would strengthen the accountability of Canadian firms operating in developing countries and seek to apply the same standards as applied in Canada. We therefore commend the government for preparing it.

On its own, however, it falls short of what is needed for Canada to be seen as a global leader in stemming corruption in that it only deals with one of the pillars of good governance, namely, accountability. Indeed, China adopted its eighth amendment to its criminal code, a law not dissimilar to the Canadian legislation, in 2011. What is also needed is regulation that requires transparency on the part of Canadian investors. Per the call of Prime Minister David Cameron in the lead-up to the G-8 meeting later this month:

we must lift the veil of secrecy that too often lets corrupt corporations and officials in some countries run rings around the law. The G-8 must move toward a global common standard for resource-extracting companies to report all payments to governments, and in turn for governments to report those revenues. This will encourage more investment in resource-rich countries and level the playing field for business.

In my discussions with members of the Mining Association of Canada, some of whom participated in our recent forum, I've heard the same desire expressed, along with concerns that rising resource nationalism in Africa and elsewhere will first target the firms from those countries seen as being less rigorous in their application of laws to stem corporate corruption by their own firms. Indeed, the Africa Progress Panel report explicitly cited Canada, stating: “Not all the opposition [to stronger regulation] emanates from industry. The Canadian government has opposed the introduction of mandatory standards.”

Canada being perceived by African governments and civil society as one of those recalcitrants is neither good for our brand nor for our competitiveness in the medium term. The statement, therefore, by Prime Minister Harper yesterday in London that Canada “will establish new, mandatory reporting standards for payments made to foreign and domestic governments by Canadian extractive companies” is a welcome development, and the government is to be warmly applauded for this step.

This new policy will help change perceptions and enhance our brand, and should it include compliance with the Extractive Industries Transparency Initiative, Canada would align itself with 23 countries that are currently compliant with this initiative. An additional 16 are candidate countries, including Australia and the United States. France and the U.K. will apparently announce their compliance during the G-8 summit, while Germany recently informed EITI's former chairman—who's a German—that it too is on the verge of joining.

Canada's compliance would demonstrate our full commitment to transparency and provide comfort to Africa's governments and civil society that Canadian extractive firms investing in Africa are being subject to the same standards they would be in Canada.

This would contribute both to Africa's economic development and Canada's economic prosperity. It would also move Canada, once again, into a position of global leadership in the area of natural resource governance.

Thank you, Mr. Chair.

[Michael Osborne, Member, CBA Anti-Corruption Team, Canadian Bar Association]

Good morning, Mr. Chair, and honourable members.

The Anti-Corruption Team of the Canadian Bar Association shares the convictions expressed in Bill S-14. As expressed in the Convention, bribery in international business transactions raises serious moral and political concerns, undermines good governance and economic development, and distorts international competitive conditions. That is why the ACT generally supports Bill S-14.

We do, however, have two concerns to bring to your attention today: first, the difficulties associated with repealing the facilitation exception at this time; and second, the difficulties created by increasing the maximum sentence to 14 years.

Turning first to facilitation payments, these are small payments made to officials to get them to do their jobs. They're different from payments made to obtain a business advantage, in the sense of a bribe to get a contract.

The current international consensus seems to be that facilitation payments should be discouraged, but it is not clear that the time is right to require the criminalization of facilitation payments made to foreign officials. Bill S-14 appeared to us to reflect this consensus by providing for the repeal of the facilitation payments exception, but not yet, since this repeal will come into force on a date to be fixed by the Governor in Council.

In the view of the CBA anti-corruption team, or ACT, this is not an optimal way of dealing with facilitation payments. Parliament, not the cabinet, should determine when the time is right, and it should do so after a fuller consultation with Canadians who do business abroad. Some of the important considerations that need to be addressed are as follows.

First is the impact on disaster relief. Charities that deliver humanitarian relief need to be authorized to do what it takes to save lives. One in-house counsel with a major charity told us that feared the day when facilitation payments would be illegal and a vital delivery of food would be held up in some hopelessly corrupt country by a jaded customs official who demanded $50 before releasing the food. The question, he said, would whether they could pay the man $50. If they did not, a thousand people or more would die.

There are other exceptions. Sometimes, for instance, people have no choice but to pay. In some countries, we're told, exit visas are routinely held up until money is paid. In others, the police demand a payment before they will even take a report of a crime. There are reports of cases where officials threaten the health or safety of people in order to extort money. I would think that most people would agree that in those circumstances the payment should not be a crime.

Thirdly, on penalties, as Bill S-14 stands, people who are coerced into making facilitation payments do so in fear of committing an indictable offence punishable by up to 14 years in jail. In other words, this is among the most serious offences on the books in Canada. The question that needs to be asked is whether or not this is an appropriate treatment for small payments of this nature.

For these reasons, the CBA-ACT recommends not proceeding with the repeal of the facilitation payments exception in this bill.

The second general point is the increase in penalties.

The maximum penalty under current legislation is five years’ imprisonment. The bill proposes that the maximum jail term be increased to 14 years.

Fourteen years will be the new penalty, and this will make the corruption offence one of the most serious offences on the books. By way of comparison, this 14-year maximum is higher than the maximum sentence for domestic corruption, for instance, which is generally five years, although it can be 14 years in some cases; for child pornography, which is 10 years; for abandoning a child, which is five years; for criminal negligence causing death with a firearm, which is four years; or for assault causing bodily harm, which is 10 years.

The increase in penalty from 5 to 14 years has important knock-on effects. Fourteen years is effectively a magic number in Canadian criminal law. Offences that carry a maximum sentence of 14 years are not eligible, first of all, for discharges, either conditional or absolute. Incidentally, this responds to a question from one of your colleagues the last day, when she asked about the availability of discharges.

Conditional sentences—that is, sentences served in the community—will not be available sentencing options for this offence. This severely constrains the range of remedial outcomes that are available to prosecutors, defence counsel, and the courts. It will, to put it bluntly, make it difficult to make the punishment fit the crime.

Suppose, for example, a Canadian business person is at the airport, trying to leave a developing country. The customs officials demand a facilitation payment. He pays in order to be allowed to leave the country and return to Canada. Has this person really committed one of the most serious offences on the books in Canada? Does this person deserve to have a criminal record? If the answer is no, then the penalty needs to be changed so that discharges remain available.

With respect, prosecutorial discretion is not the answer. The law should be as clear as possible so as to provide reliable guidance. I would also add that it is not the custom in Canada for the prosecution to issue guidance on the substance of offences. This isn't done, except perhaps in the realm of competition law, unlike, for example, in the United Kingdom, where they do have fairly extensive guidance on their Bribery Act.

Suppose a Mr. 10% somewhere requires a Canadian business person to pay a bribe to get a contract. Suppose the contract is relatively small, and the business person is a first-time offender. This would fit within the existing offence under the act. Of course, it's not a facilitation payment, it is a bribery offence. Do we really need to lock this person up? Why not impose a sentence to be served in the community for a person who does not pose a risk to society?

Under Bill S-14 as it stands, this outcome would not be available, although I should hasten to add that probation would remain available.

Thank you, honourable members. Those are my submissions.

[The Chair, Conservative, Dean Allison]

Good morning everyone.

Pursuant to the order of reference of Tuesday, June 4, 2013, we are considering Bill S-14, an act to amend the Corruption of Foreign Public Officials Act.

I want to thank our witnesses because they have now been back twice—they were supposed to testify before us on Tuesday.

Thank you very much. We do understand that you have busy schedules and so we appreciate your changing your schedules to be here.

It looks like we will once again have the bells within 20 minutes. Voting would be at about 10 minutes to 12:00, which means that we would not be back here until 12:05. I thought it would be helpful to get the testimony in now and then go a little bit longer, if it's okay with the witnesses.

We also will understand if you have other things that you need to do. At least we'll get the testimony in. We will come back and finish off with 30 minutes of questions and answers. If we can get you to stick around, that would be great.

I want to introduce each of our witnesses here today.

From the Canadian Bar Association, we have Noah Arshinoff, staff lawyer for law reform, and Michael Osborne, member of the CBA anti-corruption team. Welcome Michael. Thank you for being here.

From the North-South Institute, we have Joseph Ingram, president. Joseph, it's good to see you here today, sir.

Joining us from Calgary, Alberta, from Transparency International Canada, is Janet Keeping, chair and president. Thank you, Janet, for working us into your schedule. I think the last time we talked you were in Edmonton.

[Bob Dechert, Conservative, Mississauga—Erindale, ON]

Thank you, Mr. Chair, and thank you, Mr. Kessel and your colleagues, for being here this morning. This is very important legislation for Canada to pass. I appreciate your assistance in helping with the drafting of the bill, helping to appear before Senate and parliamentary committees, and helping to move it along.

I believe that all the political parties, at least at this stage, are in agreement that this is something that needs to be done soon.

Last week I had the opportunity to speak to the Transparency International Canada conference, and they expressed wide support for this legislation. There were people in the room representing stakeholders in government, academia, NGOs, businesses, law firms, accounting firms, and other kinds of consulting firms, and they all agreed that this was valuable legislation that should pass very quickly.

Mr. Kessel, in your opening remarks you mentioned the 2008 OECD working group on bribery report. It outlined some recommendations for Canada. Would it be fair to say that Bill S-14 is a response to the OECD report? Can you specifically tell us how the legislation addresses each of those recommendations? As a signatory to a number of anti-corruption conventions, including the OECD convention, does this help Canada live up to its commitment under those conventions?

Could you address those questions for us?

[Alan H. Kessel, Legal Adviser, Department of Foreign Affairs and International Trade]

Thank you.

Honourable members, Mr. Chair, it's my pleasure to be here with you today to discuss legislative amendments to the Corruption of Foreign Public Officials Act, CFPOA.

Since its introduction on February 5, Bill S-14 has progressed quickly and has received widespread support from both parliamentarians and stakeholders. It's our hope that members of this committee, and indeed all parties, will recognize its importance and move expeditiously to ensure that Bill S-14 is enacted as soon as possible.

Canada has long played a prominent role on the international stage in combatting corruption, and it takes allegations of corruption involving Canadian companies seriously. We have seen an increasing amount of international attention being paid to global corruption, and indeed the Canadian media have taken note of a number of recent high-profile cases in our courts.

The global fight against foreign bribery is intended to create a level playing field for international business so that Canadian companies can compete and win fairly in the pursuit of freer markets and expanded global trade. Canada has been an active partner and has played a prominent role in international efforts to combat corruption and bribery. The CFPOA was first introduced to implement our international obligations under the Organization for Economic Cooperation and Development anti-bribery convention, as well as two more anti-corruption conventions through the OAS and the UN.

Needless to say, Canada takes its international obligations extremely seriously, and we are pleased that at its meeting in March 2013, the OECD working group on bribery praised the government for its amendments as measures that will implement the working group's recommendations to a very high degree, if passed as tabled within one year of tabling.

Mr. Chair, Bill S-14 signals our government's continued commitments to further deter and prevent Canadian companies from bribing foreign public officials in international business transactions. These are important amendments that will strengthen our anti-corruption laws and place Canada at the leading edge of countries taking strong action against corruption, action that will benefit Canadian companies both at home and abroad. These amendments will help ensure that Canadian companies continue to act in good faith. With this bill, Canada is sending a loud and clear signal to the world that we will not tolerate corruption.

I'll now take a minute to briefly explain the six technical amendments that are being proposed in Bill S-14.

First is the introduction of nationality jurisdiction to allow Canada to prosecute Canadians or Canadian companies on the basis of their nationality. Currently we can only do so after proving a substantial link between the offence and Canada.

Second, provide the RCMP with exclusive authority to lay charges under the act.

Third, remove the for-profit requirement so that bribery applies to all bribes and not just those paid by businesses that make a profit.

Fourth, increase the maximum imprisonment from five years to 14 years.

Fifth, introduce a new books and records offence specific to foreign bribery. Although there are already offences under the Criminal Code that criminalize falsification of books and records, they are not specific to foreign bribery. The penalties for the new offence would mirror those for the foreign bribery offence, that is, a maximum of 14 years' imprisonment and unlimited fines.

Finally, eliminate the facilitation payments exception under the CFPOA. You will note that the bill provides for a delay for the coming into force of the elimination of the facilitation payment defense. This delay will provide Canadian companies time to adjust their own practices and internal policies, if they have not already done so, to ban the use of facilitation payments in their day-to-day operations.

Honourable members, Mr. Chair, as I previously stated, the proposed changes have given Canada tentatively good marks with domestic stakeholders and at the OECD working group on bribery. We are pleased with the OECD working group on bribery's strong, positive endorsement of the significant progress made on investigations and prosecutions of the foreign bribery offence, the awareness-raising efforts undertaken by numerous government departments, and the proposed amendments to the CFPOA included in Bill S-14. It's important to note that these positive comments from the OECD working group on bribery were given with the strong caveat that the proposed amendments be adopted. Canada has invested a lot of credibility in getting this bill tabled, and we must report back to the OECD in the near future regarding its adoption.

Honourable members, Mr. Chair, Canada is positioning itself as a reliable supplier of the resources that emerging markets need to grow. We must create the conditions for Canadian businesses to succeed in the pursuit of its pro-trade agenda. Corruption does the opposite. It hinders economic growth and long-term prosperity. It fosters only an environment conducive to allowing other crimes to flourish. We expect our companies to abide by the laws of the countries they operate in, as well as to act in accordance with applicable Canadian laws and ethical standards and practices. We believe they can compete with the best and win fairly.

As the Minister of Foreign Affairs stated on February 5, when announcing these new measures:

Canada is a trading nation. Our economy and future prosperity depend upon expanding our trade ties with the world. This, we hope, is a good faith sign that Canada's good name retains its currency.

With that, my colleagues and I would be happy to answer any questions you may have.

Thank you, Mr. Chairman.

[The Chair, Conservative, Dean Allison]

Pursuant to the order of reference of Tuesday, June 4, 2013, we are looking at Bill S-14, An Act to amend the Corruption of Foreign Public Officials Act.

I want to thank our witnesses from Foreign Affairs for being here on such short notice. I know, Mr. Kessel, you're going to be leading off, but I'll just introduce your team. Mr. Kessel is the legal adviser. From the criminal, security, and diplomatic law division, we have Roland Legault, the acting director; Marcus Davies, a legal officer; and Maria Mascaro, who is also a legal officer.

Welcome to the team. Thank you once again for being here.

Mr. Kessel, we're going to turn it over to you for your opening remarks, and then we'll have some time over the next 55 minutes to ask some questions and move forward.

In the second hour we'll be taking some additional witnesses from outside the Department of Foreign Affairs. We'll see if we can go to clause-by-clause.

Mr. Kessel, welcome, sir. We will turn the floor over to you right now.

Tax Conventions Implementation Act, 2013

[Peter Van Loan, Conservative, York—Simcoe, ON]

Mr. Speaker, I rise on a point of order. When I rise in this House to give notice of a motion under Standing Order 78(3), I have to advise that an agreement could not be otherwise reached. These are not empty words. This reflects the state of discussions among the parties on a given bill.

At least twice in recent days, there have general agreements among the parties about proceeding with a piece of legislation in a particular way. When we have tried to convert those agreements into a form the House could endorse so that the House may govern itself accordingly, the NDP balks. It says we should simply trust the NDP.

I know that many members across the way are former union negotiators or union leaders. I would never imagine that they would go back to their membership and recommend approval of a deal when all management says is “trust us”.

With that in mind, and in the interest of securing agreement, I put forward the following motion before the House. There have been consultations with the parties, so it is my hope that there would be unanimous consent that on Tuesday, June 11, the House shall, during government orders, consider the third reading stage of Bill S-2, an act respecting family homes situated on First Nation reserves and matrimonial interests or rights in or to structures and lands situated on those reserves, followed by the second reading stage of Bill S-6, an act respecting the election and term of office of chiefs and councillors of certain First Nations and the composition of council of those First Nations, and followed, in turn, by the second reading stage of Bill S-10, an act to implement the Convention on Cluster Munitions; (b) during the consideration at the third reading stage of Bill S-2 when no member rises to speak or at the expiry of the time provided for debate pursuant to order made Tuesday, June 4, under the provisions of Standing Order 78(3), whichever is earlier, every question necessary to dispose of the said stage of the bill shall be put forthwith; and successively without further debate or amendment during the consideration at the second reading stage of Bill S-6 when no member rises to speak or at 5:30 p.m., whichever is earlier, every question necessary to dispose of the said stage of the said bill shall be put forthwith and successively without further debate or amendment; (d) during consideration of the second reading stage of Bill S-10 when no member rises to speak or at 10 p.m., whichever is earlier, every question necessary to dispose of the stage of the said bill shall be put forthwith and successively without further debate or amendment; (e) when a recorded division is demanded it shall be deemed deferred in accordance with the manner provided in paragraph (b) of the special order adopted Wednesday, May 22; (f) upon the chair of the Standing Committee on Foreign Affairs and International Development or a member of the committee acting for the chair indicating on a point of order that the committee has ready a report respecting Bill S-14, an act to amend the Corruption of Foreign Public Officials Act, the House shall immediately revert to presenting reports from committees for the purpose of receiving the said report; and (g) upon the conclusion of proceedings on Bill S-10, the House shall take up adjournment proceedings pursuant to Standing Order 38.

[Peter Van Loan, Conservative, Leader of the Government in the House of Commons]

Mr. Speaker, I do want to start by reviewing what our House has accomplished over the preceding five days since I last answered the Thursday question.

Bill C-51, the safer witnesses act, was passed at third reading. Bill C-52, the fair rail freight service act, was passed at third reading. Bill C-63 and Bill C-64, the appropriations laws, passed at all stages last night as part of the last supply day of the spring cycle.

Bill S-2, the family homes on reserves and matrimonial interests or rights act, has been debated some more at third reading. Bill C-60, the economic action plan 2013 act, no. 1, was passed at report stage. Bill S-8, the safe drinking water for first nations act, was passed at report stage, was debated at third reading, and debate will continue.

Bill S-14, the fighting foreign corruption act, was passed at second reading. Bill C-56, combating counterfeit products act, was debated at second reading. Bill S-15, the expansion and conservation of Canada’s national parks act, was debated at second reading. Bill S-17, the tax conventions implementation act, 2013, was debated at second reading.

On Bill C-62, the Yale First Nation final agreement act, we adopted a ways and means motion, introduced the bill, passed it at second reading and it has since passed at committee. I anticipate we will be getting a report from the committee shortly.

Bill S-16, the tackling contraband tobacco act, was given first reading yesterday after arriving from the Senate. Bill C-65, the respect for communities act, was introduced this morning.

Substantive reports from four standing committees were adopted by the House.

On the private members' business front, the House witnessed three bills getting third reading, one being passed at report stage, two being reported back from committee and one was just passed at second reading and sent to a committee.

Last night was the replenishment of private members' business, with 15 hon. members bringing forward their ideas, which I am sure we will vigorously debate.

The House will continue to deliver results for Canadians over the next week. Today, we will finish the third reading debate on Bill S-8, the safe drinking water for first nations act. Then we will turn our collective attention to Bill S-15, the expansion and conservation of Canada’s national parks act, at second reading, followed by Bill S-2, the family homes on reserves and matrimonial interests or rights act, at third reading.

Tomorrow we will have the third reading debate on Bill C-60, the economic action plan 2013 act, no. 1. The final vote on this very important job creation and economic growth bill will be on Monday after question period.

Before we rise for the weekend, we hope to start second reading debate on Bill C-61, the offshore health and safety act.

On Monday, we will complete the debates on Bill S-15, the expansion and conservation of Canada’s national parks act, and Bill S-2, the family homes on reserves and matrimonial interests or rights act.

Today and next week, I would like to see us tackle the bills left on the order paper, with priority going to any bills coming back from committee.

As for the sequencing of the debates, I am certainly open to hearing the constructive proposals of my opposition counterparts on passing Bill S-6, the First Nations Elections Act, at second reading; Bill S-10, the Prohibiting Cluster Munitions Act, at second reading; Bill S-12, the Incorporation by Reference in Regulations Act, at second reading; Bill S-13, the Port State Measures Agreement Implementation Act, at second reading; Bill S-16, at second reading; Bill S-17, at second reading; Bill C-57, the Safeguarding Canada's Seas and Skies Act, at second reading; Bill C-61, at second reading; and Bill C-65, at second reading.

Mr. Speaker, I am looking forward to having another list of accomplishments to share with you, and all honourable members, this time next Thursday.

Suffice it to say, we are being productive, hard-working and orderly in delivering on the commitments we have made to Canadians.

There having been discussions among the parties that it will receive unanimous consent, I would like to propose a motion. I move:

That, notwithstanding any Standing Order or usual practices of this House, the member for Peace River be now permitted to table the Report of the Standing Committee on Aboriginal Affairs and Northern Development in relation to Bill C-62, An Act to give effect to the Yale First Nation Final Agreement and to make consequential amendments to other Acts.

[Bob Dechert, Conservative, Mississauga—Erindale, ON]

Mr. Chair, as you know, Bill S-14 has been referred to the committee. I'd like to propose we deal with it next Tuesday, with witnesses—officials and perhaps one or two others. I would suggest, in that regard, Janet Keeping from Transparency International. Hopefully we can deal with it in one meeting, both the consideration of the bill and the clause-by-clause review.

Fighting Foreign Corruption Act

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, I would like to be fairly clear on the position of the Liberal Party of Canada on this legislation. We see it as a step forward, but we also see it as a lost opportunity, in that the government could have done a whole lot more. We have seen that demonstrated. In particular, a member of Parliament from the Liberal caucus brought in the sunshine bill that would have had more of an impact. Ideally, I would love to see some of these amendments to give the bill more strength.

We recognize that whether it is bribery, corruption or kickbacks, these types of things occur and have a devastating impact on many countries around the world. Even though we have 95%-plus in terms of excellent companies that contribute in many different ways to many different countries, a small fraction of companies cause a great deal of concern, and we should all be concerned. This is the reason we believe that the legislation is necessary.

Canada needs to play a stronger leadership role, and bringing forward legislation is one of the ways we can do that. We hope to see the government being open to amendments. Would the member not agree that the government would be best advised to accept amendments to enhance and give strength to Bill S-14?

[Hélène LeBlanc, NDP, LaSalle—Émard, QC]

Mr.Speaker, I rise this evening in the House to talk about Bill S–14, the Corruption of Foreign Public Officials Act.

I cannot ignore the fact that this bill has come from the Senate, where there is still a lot of commotion over ethics issues. It is, therefore, ironic that this bill, which deals with the corruption of foreign public officials, originated in the Senate.

As has been previously mentioned, the NDP will support the bill at second reading, because we think it is important. As industry critic, I believe that Canadian industries and companies operating abroad must focus on three pillars. The same could be said of companies operating here, in Canada. Reference is often made to economic development, which is often the only pillar on which development is based. Economic development is intended to be profitable, and good for the economy, period.

The two other pillars, which must form the basis for the development and establishment of industries or companies, seem neglected. One of these pillars is social responsibility. When an industry is developed, social responsibility must be a focus. It is imperative that there be the social guarantee to be able to open a business in a particular locality.

This is the case with many mining companies. However, other types of companies also establish themselves abroad and they must ensure, at the very least, that the surrounding communities have a stake in potential impacts, and that they be able to participate in the establishment of the business in question. They can do this by, for example, providing labour, however this labour must be paid, working conditions must be good, and health and occupational health and safety must be a concern.

In fact, there seem to be a large number of articles written on Canadian companies that have established themselves abroad, and also companies that outsource offshore, where there is no respect for working conditions, occupational health and safety, and a number of other factors.

We agree that under our current system, it is important for companies to be able to establish themselves and survive economically. However, we can no longer ignore this type of social responsibility, which must be taken into account. In other words, responsible working conditions must be provided.

I shall now turn to the last pillar. The environment must also be respected. A business cannot set up just anywhere, nor can this be done in just any old fashion, without taking into consideration the impact on the environment. Also, this issue is often raised in articles around the world. Reference is made to Canadian companies, among others, that have set up businesses abroad and do not respect the environment. They justify their actions by saying that there is no environmental regulation, and that they will do business anywhere, and any way they see fit, yet it is absolutely crucial that measures be taken to protect the environment and, in doing so, protect the surrounding communities. All of this is part of a framework of responsibility that must be developed.

Often, in order to set up business and circumvent these two principles of social and environmental responsibility, unfortunately, and regrettably, payments make it possible to break the rules that are enforced and put in place here. They are not enforced abroad.

As we have stated, when ethics rules, standards and laws are established, the same should be applied abroad. In fact, even more should be done when a business is established abroad because Canada's good name is at stake. We have an international reputation to uphold.

I think that Canadian industries and companies that set up business abroad are responsible corporate citizens. However, there have been, and still are, cases involving certain Canadian business people who have failed to demonstrate their sense of responsibility and ethics.

In my opinion, the bill will establish rules that everyone will have to follow. This goes without saying in a society such as ours, where law and order are respected. We also respect working conditions, human rights, and environmental laws. However, we are sometimes left wondering, especially when the Conservative government violates a number of environmental protections put in place over the years in order to protect the environment. We should ensure that businesses operating abroad continue to adopt our Canadian practices.

The New Democrats have always encouraged Canadian businesses abroad to be transparent and responsible. That is a top priority. In fact, Canadians generally want their businesses to represent Canada abroad in a more respectable and responsible way. Moreover, Canadian businesses want clear and consistent standards for international trade for Canadian businesses operating abroad. When cases of corruption are uncovered, it is these businesses' reputations that are tarnished.

As I already mentioned, the NDP will support the bill at second reading. We also want Canada to restore its reputation as a responsible corporate citizen and businesses operating abroad to focus on the three pillars that I mentioned: respect for human rights, working conditions, occupational health and safety, compliance with environmental standards, and consideration of the economic dimension. However, that dimension does not exist in isolation. It must be based on more than one pillar.

That is all the speaking time I had at my disposal. My time went by very quickly. I hope that I have covered the issue. I look forward to answering my colleagues' questions.

[Don Davies, NDP, Vancouver Kingsway, BC]

Mr. Speaker, I will be sharing my time with my hon. colleague from LaSalle—Émard.

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

In looking at this bill, and given the record of the government, I find myself yearning to have a companion bill introduced in the House that would be entitled, “an act to amend the corruption of domestic public officials act”. There is a whole host of things we could be dealing with.

In terms of domestic corruption, we could be trying to deal with $90,000 payments to senators made by officials in the Prime Minister's Office allegedly to cover up illegal activity. We could be investigating Canadian senators fraudulently claiming housing and living expenses. We could be looking into people like Arthur Porter, another Conservative and a former appointment made by the Prime Minister to the CSIS oversight board, who apparently helped himself to millions of taxpayer dollars in Montreal and fled to South America. We could be looking into Conservative candidates like Peter Penashue, who spent over the election limits and effectively bought his seat by cheating. We could be looking into robocalls where the Conservative database was used to commit election fraud. Then we watched the Conservative Party try to obscure things and fight against any attempt to bring transparency into that procedure.

There is domestic corruption of public officials galore with the Conservative government. I look forward to the government introducing a bill that would attack corruption and finally clean up politics in this House for Canadians, but unfortunately, that is not the bill before us. We are dealing with foreign public officials.

The NDP, being a party that stands for ethics and transparency in Canadian politics, is proud to support this bill for referral to committee.

This bill makes four main changes to the Corruption of Foreign Public Officials Act. First, it increases the maximum sentence of imprisonment applicable to the offence of bribing a foreign public official from 5 to 14 years. Second, it eliminates an exception for so-called facilitation payments—there is a euphemism if I have ever seen one—where a foreign official is paid to expedite the execution of their responsibilities. The government calls it a facilitation payment, but I call it a bribe. Third, the bill creates a new offence for falsifying or concealing books or records in order to bribe or conceal bribery of a foreign official. Fourth, it establishes a nationality jurisdiction that would apply to all of the offences under the act, such that Canadian nationals could be prosecuted for offences committed overseas.

Again, New Democrats have long supported clear rules requiring transparency and accountability by Canadian individuals and corporations overseas, which usually have been opposed by the Conservatives, unfortunately. This bill complements legislative efforts by New Democrat MPs to encourage responsible, sustainable, and transparent management practices.

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.

Canadians want Canadian companies to be successful and responsible representatives of Canada. We want Canadian companies to have clear and consistent standards for international business. Enforced loophole-free regulations would create a level playing field for all companies while ensuring environmental, labour and human rights protection of which we all can be proud.

In a 2011 report, Transparency International ranked Canada as the worst of all G7 countries with regarding to international bribery, with “little or no enforcement” of the scant legislation that exists. Since then the government has been responding to this national embarrassment. However, there have only been three convictions since 1999, two of which were in the last two years. I would like the government to get tough on corruption. When there have been only three convictions since 1999, that is hardly being tough.

By repealing the facilitations exception, this bill would bring Canada into line with the practices in 36 of 39 other OECD countries. However, while the rest of the bill would come into effect at royal assent, the rules on facilitation payments would take effect at an unknown future date at the will of cabinet.

The books and records rule is already being enforced in the United States at the civil level by the Securities and Exchange Commission, but Canada has no equivalent regulator. While criminal law achieves the same effect, we should be increasing our efforts in this regard.

This bill is particularly relevant to the extractive industry, where the NDP has been and remains the strongest advocate for accountability in the House. Examples include my hon. colleague from Burnaby—New Westminster's Bill C-323 as it then was, which would allow lawsuits in Canadian courts by non-Canadians for violations of international obligations; and my colleague from Ottawa Centre's Bill C-486, requiring public due diligence by companies using minerals from the Great Lakes Region of Africa.

I point out that the mining bill was opposed by the Conservative government and 13 Liberals failed to show up for the vote, which led to the narrow defeat of that bill by six votes. Again, Canadians can only count on the New Democrats to bring corporate social responsibility of Canadian mining companies into international normative standards in the House.

The political elites that profit from corruption, particularly in those countries and sectors where corruption is most problematic, consist mainly of men. At the same time, it is primarily women who lack government protection.

While we support the bill for referral to committee, we do have some concerns. It would amend the definition of a “business” to include not-for-profit organizations. The New Democrats believe this clause should be carefully studied at committee, in relation to its impact on charitable and aid organizations, which may, in the world we live in, have to make occasional payments in order to expedite or achieve delivery of essential assistance. We must take great care around that.

The committee should also study the consequences of establishing an indictable offence, punishable by up to 14 years in prison, as this is the threshold at which conditional or absolute discharges or conditional sentences become impossible.

Finally, the committee should study whether the rule on facilitation payment should take effect at the whim of cabinet, as is in the current text of the bill, rather than when ordered by Parliament.

Here are some key facts and figures to consider.

There have been three convictions, as I have mentioned, under Canada's foreign bribery law since it took effect in 1999: Hydro Kleen Group was fined $25,000 in 2005 for bribing a U.S. immigration officer at the Calgary airport; Niko Resources was fined $9.5 million in June 2011 because its subsidiary in Bangladesh paid for a vehicle and travel expenses for the former Blangladeshi state minister for energy and mineral resources; and, Griffiths Energy International was fined $10 million in January of this year, after it agreed to pay $2 million to the wife of Chad's ambassador to Canada and allowed her and two others to buy shares at discounted prices in exchange for supporting an oil and gas project in Chad.

We all are watching the newspapers as we see the difficulties that SNC-Lavalin has got itself into in terms of allegedly paying bribes to foreign officials to secure contracts abroad, in the millions of dollars.

The Transparency International Bribe Payers Index in 2011 ranked the oil and gas and mining industries as the fourth and fifth most likely sectors to issue bribes. This should be of great concern to Canadians because Canada is a world centre for mining and oil and gas industries and companies. These companies, among all sectors as stakeholders, should want to establish very clean, high-level regulations and rules regarding acceptable corporate conduct. Moreover, the mining and oil and gas industries are the second and third most likely to engage in grand bribery targeting of high-ranking officials and politicians. This makes a bill like Bill S-14 especially important in these sectors.

The fact that the government does not enforce the anti-corruption laws is a national shame. We are pleased that it is finally paying attention to these problems. It is nevertheless deplorable that it has taken so much time, and that Canada had to be condemned and discredited before the government took any action.

For business, for the environment and labour and for Canada's international reputation, we urge that this bill go through Parliament and I urge the Conservatives to make the amendments necessary to get the support of all parties in the House.

[Julian Fantino, Conservative, Minister of International Cooperation]

Mr. Speaker, I rise today to participate in the debate on Bill S-14, the fighting foreign corruption act.

This legislation highlights our government's intent to take further steps to combat corruption and bribery. The amendments included in Bill S-14 would ensure that Canadian companies continue to act in good faith in the pursuit of freer markets and expanded global trade.

Introduced in the other place on February 5, I am pleased that the legislation is moving quickly. It is my hope, as I am sure it is the hope of most reasonable people, that it will make its way through the chamber as expediently as possible and soon thereafter be enacted. I hope that members will agree that the fighting foreign corruption act sends a strong signal that corruption is not the Canadian way of doing business and highlights our own expectations that other countries follow suit.

Bill S-14 makes a number of amendments to the Corruption of Foreign Public Officials Act, which has been in force since 1999. Canada passed that act to implement our international obligations under the Organisation for Economic Co-operation and Development, or OECD, Anti-Bribery Convention, and two more anti-corruption conventions passed by the Organization of American States and the United Nations.

Canada has long been committed to the OECD Anti-Bribery Convention and the efforts of, in particular, the OECD working group on bribery. In fact, in February, Canada submitted to the secretariat our follow-up report on the implementation of the convention. We are also required to report annually to both houses of Parliament. The issue that we want to stress is that we are committed to continuing to remain open and transparent in communicating our government's actions in fighting foreign corruption.

Despite our commitment to this issue, over the last number of years, international anti-corruption bodies and Canadian stakeholders have urged us to strengthen our laws. The OECD working group on bribery issued a report in March 2011 that raised specific concerns with regard to the strength of Canada's current legislation. As I have previously stated, we were pleased to submit a report to them earlier this year highlighting Bill S-14, which shows distinct progress.

Another important stakeholder in the fight against corruption is Transparency International, which also recently came forward to make the case that Canada could do more. I am pleased to tell the House that, following the introduction of Bill S-14, Janet Keeping, chair and president of Transparency International, said that Transparency International Canada was delighted that the federal government is moving to strengthen the Corruption of Foreign Public Officials Act in accordance with Canada's international obligations, and encourages the government to ensure that the RCMP have the resources necessary to enforce the particular act effectively. She also said that legal changes of the kind proposed are only as good as the government's commitment to making the law meaningful on the ground.

Canada's former Foreign Affairs minister, John Manley, also complimented these recent steps. He said that good corporate citizenship at home and abroad is essential to Canada's economic success, and that these latest measures aimed at eliminating corruption and bribery would strengthen Canada's already strong reputation for good governance and ethical business practices.

For those unfamiliar with the act, the CFPOA makes it a crime in Canada to bribe a foreign public official to gain a business advantage abroad. It is a comprehensive step against the corruption of foreign officials, especially when read in conjunction with existing offences in the Canadian Criminal Code.

It makes it possible to prosecute, say, a conspiracy to commit or an attempt to commit such a bribery. It covers aiding and abetting the commission of bribery, an intention in common to commit bribery, and counselling others to commit bribery. Laundering property and the proceeds of crime, including the proceeds of bribery offences, as well as the possession of property and proceeds, are already offences under the Criminal Code. The new offences being created in the CFPOA will also be captured by these Criminal Code provisions once they are in force.

Bill S-14 proposes to make six amendments to the corruption of foreign public officials act.

First, there is the introduction of a nationality jurisdiction which allows Canada to prosecute foreign bribery by Canadians or Canadian companies based on their nationality and regardless of where the bribery takes place in the world. Currently we can only do so after proving a real and substantial link between the offence and Canadian territory.

The second amendment would specify which authority can lay charges under the act. In this case, the RCMP would be the entity. In 2008, the RCMP international anti-corruption unit was established, which is dedicated to raising awareness about and enforcing the CFPOA. Currently this act does not place a limit on who is able to lay charges, but this amendment will ensure that a uniform approach is taken across the country. It highlights our government's faith in the work of the unit, and it sends a strong signal to Canadian businesses that they should contact the RCMP if they have a problem with foreign bribery.

The third amendment being proposed by Bill S-14 seeks to clarify the scope of the act by eliminating the words “for profit” from the definition of business. This would ensure that the CFPOA is not limited to bribes paid by for-profit enterprise or just in the course of business which is currently profitable.

Under Bill S-14, we are also proposing to increase the maximum penalty under the act to a maximum jail term of 14 years. The foreign bribery offence under this act is currently punishable by a maximum of five years' imprisonment and unlimited fines. The possibility of unlimited fines will remain as is.

In developing these amendments, our government was well aware of the implications they would have for Canadian businesses operating abroad. The global economy is still in a fragile state, and the number one priority for our government is securing jobs, growth and long-term prosperity for Canadians and Canadian businesses. That is why in January 2012, the Department of Foreign Affairs undertook consultation in the form of a workshop on new ideas for Canada's fight against foreign bribery. Over 30 stakeholders, as my hon. friend alluded to earlier, participated in this event, and these were from businesses, academia, non-government agencies and various other governmental departments.

At that time, Canadian stakeholders unanimously supported increasing penalties under the act to deter Canadian companies from engaging in foreign bribery. For this reason, and as I have already stated, Bill S-14 proposes to increase the maximum jail time from a maximum of five years' imprisonment and unlimited fines to a maximum of 14 years' imprisonment and unlimited fines.

The fifth amendment included in the fighting foreign corruption act creates a new “books and record” offence. Although there are already offences under the Criminal Code that criminalize falsification of books and records, they are not specific to foreign bribery. The penalties are stated.

The last item, and perhaps most significant amendment being proposed by Bill S-14 would eliminate the so-called “facilitation payments” exception under the CFPOA. Currently the CFPOA states that payments made to expedite or secure the performance by a foreign public official of any act of a routine nature do not constitute bribes for the purposes of the CFPOA.

I hope we all will see the merit and worth in this leadership role that Canada has taken in fighting corruption at home and abroad.

[Dave Van Kesteren, Chatham-Kent—Essex, CPC]

Mr. Speaker, I will be sharing my time with the Minister of International Cooperation.

It is my pleasure to rise this evening to participate in the debate on the fighting foreign corruption act. In my view, Bill S-14 is signature legislation. Since its introduction on February 5, the proposed changes have given Canada good marks both from domestic stakeholders and from the OECD working group on bribery.

These positive comments from groups such as Transparency International were given with the strong caveat that proposed amendments be adopted. Canada has invested a lot of credibility in getting this bill tabled, and we are to report back to the OECD in the near future regarding its adoption.

As others have stated before me, the issue of foreign corruption is as timely as it has ever been, and our government remains committed to seeing this legislation enacted as quickly as possible. It is my hope that this commitment is shared by all opposition parties and members of the House.

The OECD has just published on its website the report that Canada submitted to the organization's working group on bribery, as well as the working group's own summary and conclusion. As part of the OECD's peer review mechanism, Canada was called upon to submit a written report detailing the progress it has made over the past two years in responding to all of the recommendations and follow-up points previously identified by the working group on bribery.

The written report details the significant progress made by Canada in terms of investigations and prosecutions of the foreign bribery offence; the awareness-raising efforts undertaken by numerous government officials, agencies and crown corporations; and the amendments to Canada's foreign bribery legislation, the corruption of foreign public officials act, or CFPOA.

The lead examiners for Canada's evaluation stated that they were extremely impressed with our results. They indicated that Canada should be very proud of what it has achieved in such a short period of time. They also signalled their strong support for Bill S-14, stating that should this bill be adopted by Parliament, Canada would be deemed to have fully implemented most of the significant recommendations made to it by the working group on bribery.

The working group on bribery also concluded that as it stands, Canada has already fully implemented nine out of the total of 18 recommendations and subrecommendations, including those that touched on resources for foreign bribery prosecutions and investigations, awareness-raising, building relationships with provincial securities commissions and due diligence in government contracting. In addition, five of the 18 recommendations were deemed to be partially implemented. Another three of the 18 recommendations were held to be not implemented, but will be fully implemented if and when Bill S-14 is adopted by Parliament.

This is positive reinforcement. Members can rest assured that it only strengthens our desire to see Bill S-14 passed as quickly as possible.

I would now like to provide a brief summary of some of the key conclusions made by the OECD's working group on bribery.

The first relates to a recommendation that Canada amend the offence of bribing a foreign public official in the CFPOA so that it is clear that it applies to bribery in the conduct of all international business, not just business for profit. The elimination of the words "for profit" from the definition of "business" is vitally important, as it would ensure that the CFPOA is not limited to bribes paid to for-profit enterprises or just in the course of business that is currently profitable. I am pleased to report that this recommendation would be considered fully implemented if Bill S-14 is passed in its current state within one year of tabling.

A second recommendation requested that Canada take appropriate measures to automatically apply, on conviction for a CFPOA violation, the removal of the capacity to contract with a government or receive any benefit under such a contract, consistent with the domestic bribery offence in the Criminal Code. This was assessed to be fully implemented as a result of the change in policy in 2012 by Public Works and Government Services Canada.

The third recommendation urged Canada to take such measures as may be necessary to prosecute its nationals for bribery of foreign public officials committed abroad. I am pleased to report that with the nationality jurisdiction clause included in Bill S-14, this would be considered fully implemented once the bill has passed in its current state and within one year of tabling.

The last recommendation I wish to mention specifically calls on Canada to find an appropriate and effective means for making companies aware of the CFPOA, including the defence for reasonable expenses incurred in good faith and the defence of facilitation payments.

It also calls on Canada to increase efforts to raise awareness of the CFPOA in industries at high risk for bribing foreign public officials and individuals and companies operating in countries where there is a high risk of bribe solicitations, as well as municipal and provincial law enforcement authorities. This was assessed to be fully implemented.

Should members choose to read the report and the OECD findings on their website, I think they would be delighted to hear some of its conclusions. Here is a sample:

Canada has continued the enforcement momentum...Canada now has two additional and major convictions against companies in the oil and gas sector under its Corruption of Foreign Publics Officials Act.

The WGB also welcomes significant steps taken by Canada to improve the CFPOA and address three main Phase 3 recommendations through Bill S-14....Bill S-14 also repeals the exception in the CFPOA for facilitation payments...Canada has therefore now fully implemented Recommendation 6.

A number of federal departments, agencies and crown corporations play key roles in Canada's two-pronged approach to foreign bribery: that of enforcement and prevention. Bill S-14 reflects what we believe is the will of Canadians and of Canadian businesses and stakeholders.

In considering the OECD's recommendations and in preparing our response to them, the government consulted widely, including a January 2012 session hosted by the Department of Foreign and International Trade. At that time, over 30 expert stakeholders from Canadian businesses, law firms, academic institutions and non-governmental organizations participated.

It provided an opportunity for full discussion on concrete steps that would be taken to improve the enforcement of the CFPOA as well as an opportunity to further encourage Canadian companies to prevent bribery before it happened and to detect it if it occurred.

We are pleased with the WGB strong positive endorsement of the significant progress made by Canada on investigations and prosecutions of the foreign bribery offence, the awareness raising efforts undertaken by numerous government departments and on the proposed amendments to CFPOA in Bill S-14.

As the Minister of Foreign Affairs stated on the day Bill S-14 was introduced:

Canada is a trading nation. Our economy and future prosperity depend upon expanding our trade ties with the world. This, we hope, is a good faith sign that Canada’s good name retains its currency.

In conclusion, failing to adopt Bill S-14 would send the wrong signal about Canada and Canadian companies. For this reason, I urge all members to support this important legislation.

[André Bellavance, Bloc, Richmond—Arthabaska, QC]

Mr. Speaker, even though we are in favour of the principle underlying this bill, I have some questions.

I have a specific question for the member who just spoke about paragraph 5(1)(b) of Bill S-14, which says that a permanent resident who commits an offence under the Corruption of Foreign Officials Act outside Canada is not deemed to have committed that offence if the person does not return to Canada. That could last for years, and on the day the person returns, he or she could face certain charges under the act.

I would like my colleague to state whether a Canadian resident would receive the same treatment as a permanent resident. In the United Kingdom, care was taken to place limits on this provision. Bill S-14 is different from what is found in other countries.

[Larry Miller, Conservative, Bruce—Grey—Owen Sound, ON]

Mr. Speaker, to get up after my colleague from Niagara West—Glanbrook is filling big shoes, but it is a pleasure today to speak to Bill S-14. On February 5, the Minister of Foreign Affairs announced our government's efforts in taking further steps to combat corruption and bribery.

Through the introduction of Bill S-14, which includes a number of amendments to the Corruption of Foreign Public Officials Act, we are redoubling our fight against bribery and corruption, strengthening Canada's anti-corruption laws and placing Canada at the leading edge of countries taking robust action against corruption, action that will benefit Canadian companies at home and abroad.

The Corruption of Foreign Public Officials Act, CFPOA, is not new. In fact, Canada has had anti-corruption legislation in place since 1999. We passed it primarily in response to the OECD's anti-bribery convention. It is a good law that has already produced several convictions. However, we have identified a number of ways in which we can make it better. These can be found in the six amendments proposed in the fighting foreign corruption act.

Others before me have briefly explained each of these amendments, so I would like to focus particularly on that which proposes to clarify the scope of the CFPOA. This specific but important amendment, the elimination of the words “for profit” from the definition of business, would clarify that the scope of the CFPOA is not limited to bribes paid by for-profit enterprises or in the course of profitable business. Eliminating the words “for profit” from the definition of business ensures that the net is cast as widely as possible. By removing the for profit requirement from the definition of business, we expand the scope of the CFPOA.

We believe this will translate into two advantages in our fight against corruption. First, we wish to seize the opportunity to target those who pay bribes on behalf of companies that may or may not earn a profit during a given year. Second, we would also target organizations whose main purpose is not for profit as well as those whose main purpose is to generate a profit. In other words, we would treat all organizations the same way in the context of foreign bribery. Whether or not an entity is capable of generating revenue and earning a profit, and whether an entity conducts business in anticipation of profit, they would receive the same treatment under the CFPOA.

With respect to the first scenario, a company not earning a profit on a given year, a gap currently exists in the legislation. This gap does not support enforcement or prosecution. A company may try to escape the application of the law by conducting their business in a manner to establish that no profit is reflected in their books. This might be accomplished by way of strategic planning and the application of appropriate accounting methodologies. There is no reason that clever accounting should make the payment of bribes legal.

Our amendment would go a long way to ensuring the act applies to all questionable activities related to bribes, by ensuring that all business activities are captured regardless of the anticipation of profit from those specific activities.

With respect to the second scenario, an entity's reason for being is either profit or not for profit. All entities should be treated in the same manner. The fight against corruption cannot be won if we make exceptions for certain organizations and not for others. If we continue with unequal treatment, we do nothing more than shift the focus of bribery transactions to the not-for-profit sector.

In addition, if we close only the gap for the for-profit sector, we would have a realistic expectation that the number of newly created not-for-profit entities would increase. Why? They would increase in order to escape detection. In other words, we would continue to have an enforcement issue in our fight against corruption and it would simply shift to the not-for-profit sector. The focus would be on determining whether the not-for-profit entities are really that: not for profit. We do not have the resources for this, nor should we. We can be more fair, more strategic and more cost-effective if we simply treat everyone the same.

We have a realistic expectation that by closing these two gaps by simply deleting the words “for profit” from the definition of “business”, we would facilitate enforcement and prosecution. After all, timely and responsive enforcement can enhance investigations and facilitate successful prosecution. In the end this is what we want: to successfully prosecute those involved in the corruption of foreign public officials.

Our government's top priority is to secure jobs, growth, and long-term prosperity. It involves pursuing an aggressive trade agenda and creating the conditions for Canadian companies and businesses to succeed. However, our government expects Canadian companies to play by the rules and compete fairly. As such, the legislation that is before us signals our commitment to fighting corruption and bribery.

These amendments would further deter and prevent Canadian companies from bribing foreign public officials and would reinforce Canada's good name. These amendments would help ensure that Canadian companies continued to act in good faith in the pursuit of freer markets and expanded global trade.

I want to read a few statements in support of this bill.

Ian Pearce, chief executive officer of Xstrata Nickel, said that as a Canadian-based company with operations and projects around the world, they applaud the government's efforts to combat corruption and bribery. He said that as part of the Xstrata group, the are committed to the highest standards of personal and professional ethical behaviour, and have a policy of zero tolerance toward any form of bribery or fraud.

Janet Keeping, chair and president of Transparency International Canada, said that Transparency International Canada is delighted that the federal government is moving to strengthen the Corruption of Foreign Public Officials Act in accordance with Canada's international obligations and encourages the government to ensure that the RCMP have the resources necessary to enforce the CFPOA effectively. She said that legal changes of the kind proposed are only as good as the government's commitment to making the law meaningful on the ground.

On Tuesday, February 5, 2013, the Hon. John Manley, former Liberal MP, said, regarding amendments to the Corruption of Public Officials Act, that good corporate citizenship at home and abroad is essential to Canada's economic success. He said that these latest measures, aimed at eliminating corruption and bribery, will strengthen Canada's already strong reputation for good governance and ethical business practices.

We have this bill before us and as I said earlier, from time to time we review many pieces of legislation in this House. At some point all legislation needs to be reviewed because, while it may be good at one point, circumstances change, and there are people out there who lay awake at night looking for loopholes and thinking of ways to skirt the system.

I certainly urge all my colleagues on all sides of the House to support this bill. If I happened to have a bunch of people from my riding here tonight, I would certainly want them to see all parties in this place stand to support this bill at the end of the night.

I would be happy to take any questions.

[Dean Allison, Conservative, Niagara West—Glanbrook, ON]

Mr. Speaker, it is a privilege to rise today to speak to this very important initiative. With recent events around the world, especially in the Middle East and Africa, it is clear that the fight against global corruption is as timely today as it has ever been. Indeed, developments in our own courts highlight that combatting foreign bribery is significant to Canada. Bill S-14 is an expression of our government's commitment to doing exactly that. I will be using my time today to address the inclusion of the facilitation payments amendment.

Before I continue with my speech, I need to let you know, Mr. Speaker, that I will be splitting my time with the member for Bruce—Grey—Owen Sound.

I would also like to update the House on the three convictions that have already been made under the Corruption of Foreign Public Officials Act, which Bill S-14 seeks to amend. While these recent court decisions are evidence of the effectiveness of Canada's anti-corruption laws and a reminder that corruption is not a Canadian way of doing business, we have been asked to do more, and so we will.

First, I wish to note and thank members of the other place for their support of the bill. Indeed, Liberal Senator David Smith agreed that adopting the measures of Bill S-14 would send an important signal to the international community that we took our commitments seriously and would act on them.

I also wish to thank my colleagues for providing the detailed background on the CFPOA and the six amendments that would answer the call for heightened diligence. Taken together, they certainly demonstrate a broad approach to fighting unethical business practices.

As the Minister of Foreign Affairs has clearly stated, our government is committed to positioning Canada as a reliable supplier of the resources emerging markets need to grow. Canadian companies can compete with the best in this environment and will win fairly. These amendments would ensure that Canadian companies would continue to act in good faith in the pursuit of freer markets and expanded global trade.

I wish to remind my colleagues that a facilitation payment is a “grease payment”, paid to foreign public officials to do something that he or she is already obliged to do, such as deliver mail on time. It is specifically not supposed to allow the person paying to gain a business advantage in any way. Otherwise, the payment would be a bribe and it would be a crime to make the payment.

We have heard some concern that the elimination of the facilitation payments defence may create a competitive disadvantage for Canadian companies with international markets, given that legislation in other countries still contain the facilitation payments defence.

Let me be clear. Those who make facilitation payments are not allowed to receive any kind of business or competitive advantage from their payment. Payments that are made to receive a business advantage are bribes and these payments are already illegal under the CFPOA. They are also illegal under the legislation of every OECD country.

It is also important for hon. members to note that there is good reason to delay the coming into force of the elimination of facilitation payments exception. Canadian companies will need time to adjust their own practices and internal policies, if they have not already done so, to prohibit the use of facilitation payments in their habitual operations. This time to adjust is all the more important given that some other countries continue to allow facilitation payments.

We on this side of the House have been clear that our priority is to create the conditions for Canadian businesses to succeed in the pursuit of our aggressive pro-trade agenda. I reiterate our position that corruption does the opposite. It hinders economic growth and long-term prosperity. It fosters an environment conducive to allowing other crimes to flourish. We expect our companies to abide by the laws of the countries they operate in, as well as to act in accordance with Canadian laws and ethical standards and practices.

For Canadian companies operating in developing countries, this legislation is even more important. As the minister noted before the Senate Standing Committee on Foreign Affairs and International Trade, on February 28:

It is not just about values and ethics. It is also about ensuring that we see meaningful development in developing economies. It is important that we see meaningful development and that this development benefits the people. Corruption, particularly in developing economies, is a real problem. It is basically tapping money that could otherwise go toward the public good, to the benefit of the people in these countries, so it is not just an ethical question but also very much a development question.

Foreign bribery weakens economic prosperity by corroding the rule of law that is the basis for market freedom.

Bill S-14 provides us with a robust tool for creating the conditions for Canadian businesses to play by the rules and for Canadian companies to be successful across the globe. It involves encouraging responsible and ethical conduct. It involves positioning our country as a reliable supplier of the resources that emerging markets need to grow.

As I mentioned at the outset, I would now like to use some of my time to provide the House with some details on the three convictions that have already been made under the CFPOA. These convictions highlight just how seriously our government takes its commitment to prosecute those involved in foreign corruption and bribery. I would like my colleagues to keep in mind that there are also two cases pending, as well as 35 ongoing investigations.

As others have noted, penalties are increasing substantially with each new conviction, and the adoption of these amendments means that those engaging in corruption will be penalized even more severely.

Griffiths Energy International Inc., based in Calgary, Alberta, pleaded guilty on January 22, 2013, to a charge under the CFPOA related to securing an oil and gas contract in Chad. Griffiths will pay a total penalty of $10.35 million.

Similarly, Niko Resources, another Calgary-based company, entered a guilty plea on June 24, 2011, for one count of bribery. The company admitted that through its subsidiary Niko Bangladesh, in May 2005, it provided the use of a vehicle valued at $190,984 to AKM Mosharraf Hossain, then the Bangladeshi state minister for energy and mineral resources, in order to influence the minister in his dealings with Niko Bangladesh. In June 2005, Niko Resources Ltd. paid travel and accommodation expenses for the same minister to travel from Bangladesh to Calgary to attend the GO Expo oil and gas exposition, and paid approximately $5,000 for the minister to travel to New York and Chicago to visit his family

As a result of the conviction, Niko Resources Ltd. was fined $9.5 million and placed under a probation order, which puts the company under the court's supervision for three years to ensure that audits are completed on the company's compliance with the CFPOA. The Canadian Trade Commissioner Service has placed a hold on providing services to Niko during the period of court supervision.

Finally, Hydro Kleen Group, based in Red Deer, Alberta, entered a guilty plea on January 10, 2005, to one count of bribery and was ordered to pay a fine of $25,000. Along with its president and an employee, the company had been charged with two counts of bribing a U.S. immigration officer who worked at the Calgary International Airport. The charges against the director and the officer of the company were stayed. The U.S. immigration officer pleaded guilty on July 2002 to accepting secret commissions. He received a six-month sentence and was subsequently deported to the United States.

In closing, I wish to address the importance of the timely passage of Bill S-14. This is signature legislation that has given Canada good marks with domestic stakeholders and at the OECD working group on bribery in 2013. We have invested a lot of credibility in Bill S-14.

We are due to report back to the OECD in the near future regarding the adoption of the bill, and further delays would have implications that go beyond the scrutiny of the OECD. Regardless of the merits of recent domestic developments, Canada would be criticized on the domestic and international stages for not meeting our commitments. I think this alone speaks to the importance of passing the bill at second reading today, and I urge my hon. colleagues to lend it their full support.

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

Mr. Speaker, unfortunately our track record on this file is not as robust as one would like.

In 2011, the Prime Minister was invited to sign a transparency initiative, which was a robust transparency initiative by his colleagues in the G8, and he declined to do so. As a consequence, there was no statement that came out of the G8 which would have, at that point, moved the Cardin-Lugar amendment up everyone else's legislative agenda.

Here we are two years later. It is the same issue. It is even more important now. We have had a series of embarrassing incidents for Canada.

I do not know about other members, but I do not particularly feel good about seeing Canadian companies engaged in bribery and other kinds of scandals.

The government has had two years to kind of catch up to the rest. To this point, it has not done anything except for Bill S-14. I do not want to be entirely negative here. There have been some discretionary educational initiatives that the government has tried to put forward.

Sometimes we just have to bring the hammer down and the government has thus far declined to do that. The United States has brought the hammer down. The U.K. is in the process of bringing the hammer down. The EU has brought the hammer down. Australia is in the process. When we put all that together, what we have is, in effect, 85% of the extractive sector that will have a robust legislative environment if in fact we join in.

It is hypocritical on our part to say that those countries that are subject to a lot of corruption should clean up their act, if in fact we have legislative holes in ours. Right now Canada is the big hole in the fence. We need to rectify that. It can be rectified in this chamber and quite quickly. The only way, in my judgment, that is done is not only in passing Bill S-14, but in passing Bill C-474 as well.

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

Mr. Speaker, I thank the member for Cambridge for that enthusiastic applause and possibly one or two others as well. However, I would be surprised if the member for Cambridge and others actually remembered what I was talking about two weeks ago when question period interrupted the profundities of my speech.

Let me say that we support Bill S-14. We think it is a good bill insofar as it goes. Regrettably, we do not think it goes very far. The thrust of my speech was to link Bill S-14 with Bill C-474, the sunshine bill sponsored by me, which would actually be the evidence base for Bill S-14. Bill S-14 becomes far stronger if one brings in the evidence. As such, one would actually succeed in getting prosecutions.

In my previous remarks I talked about how aggressive the Americans are with respect to prosecutions in corruption. The numbers are something in the order of, for the same period of time, 277 prosecutions in the United States for corruption whereas in Canada we only had two. In this respect, the Americans are world leaders and not only world leaders in terms of the aggressiveness with which they prosecute companies that engage in corrupt activities. They do not shy away from prosecuting some of the most recognized companies in the world that trade on U.S. stock exchanges. Therefore, not only is their prosecution aggressive but their legislative agenda is also aggressive.

They have passed the Cardin-Lugar amendment to the Dodd-Frank bill, which basically states that if mining or extractive companies secure a concession they would have to disclose to the U.S. Securities and Exchange Commission who they have paid, how much they paid, when they paid it, the frequency of the payments, the currency of the payments, and all other considerations in securing that concession. My sunshine bill, Bill C-474, mirrors that legislation. It is something that both President Obama and Prime Minister Cameron want to achieve at the next G8.

I had summarized all of this and talked about the decline in Canada's reputation and went on to discuss the incongruity of the government's position to, on the one hand, support S-14, which we think is a good idea, and to be opposed to the sunshine bill, Bill C-474, on the other.

My newest seatmate as of today, my colleague from Mount Royal, would say that there is a seeming incongruity with the government's position in supporting Bill S-14. It says that it wants to combat corruption, yet by opposing Bill C-474 it is saying that accountability is not important. I cannot reconcile the disparity easily. Perhaps it lies in the simple fact that Bill C-474 is not a Conservative bill. It is a bill that the parliamentary secretary and other Conservatives have claimed would overburden Canada's extractive sector, leaving our companies at a competitive disadvantage and so forth, when this was in fact contradicted by witnesses at the foreign affairs committee.

I have to take note that a number of mining companies and mining associations have come out and said that they not only support Bill S-14 but they certainly support the principles and indeed the mandatory aspects of Bill C-474. Some Canadian companies have enthusiastically taken up the issue of corporate accountability. Business leaders, such as the president of the Mining Association of Canada, Pierre Gratton, believes that corporate transparency mechanisms are not only the right thing to do but they are also good for business.

All of the investors agree. The last thing that investors want is to be embarrassed as they see their investments decline in value on the front pages of The Globe and Mail. Therefore, industry is on side with Bill C-474. It is certainly on side for Bill S-14. Most responsible extractive companies are on side with the EITI initiative. These are good insofar as they go.

Canada as a nation supports the EITI transparency international initiative, but it has not joined. The Government of Canada has declined to join the EITI, which is quite regrettable because we are the country that is of foremost importance with respect to the extractive sector.

Business, in this instance, is actually ahead of the government in terms of a desire to impose a mandatory regime upon itself. Not only is it a good thing to do, it is good for business. Joe Ringwald of Selwyn Resources said that it is important to become a leader in this and to gain reputational advantage. He also said that Canada has become a laggard on this issue.

Industry has generally taken a favourable tone to this legislation and a number of players want transparency, particularly with many of the projects where there is money going to foreign governments and sometimes more money going to foreign governments than to shareholders. The idea of financial transparency has both public and private sector support. As I say, the industry is certainly on side. The NGOs, as might be expected, are on side. Civil society is on side. I would dare say the public is on side. The only issue that we appear to have here is that the government does not want to legislate in this area.

It is going to be a very difficult issue at a difficult time for the Prime Minister when he goes to Great Britain for the G8. Clearly, Prime Minister Cameron wants a clear, mandatory statement with respect to legislation on the extractive sector. He wants other issues agreed on as well, as does President Obama, who is highly supportive of the Cardin-Lugar amendment. They are binding their own companies to this initiative.

Starting September 1, any company that trades on the U.S. stock exchange will be bound by this legislative initiative. The irony is that if we want to find out about a major gold company, Barrick, for example, including who they pay and what they pay for their concessions around the world to foreign governments, including the foreign government of Canada, we will have to go to the New York Stock Exchange to the Securities and Exchange Commission and look at the published reports to see what and who got paid. It seems to me that Canada as a nation, given its position as the number one mining country in the world, should be a little bit ahead of the curve, instead of behind it.

Internationally, the Prime Minister is going to have to do some tap dancing in Northern Ireland, and explain to his colleagues at the G8 why Canada is not supportive of the sunshine bill.

I see that my time is just about finished. I would like to say in conclusion that the incongruity of the government's position in presenting Bill S-14, which is a good bill, but not supporting Bill C-474 is something that the Prime Minister is going to have some difficulties explaining when he meets with his colleagues this month in Northern Ireland.

The House resumed from May 24 consideration of the motion that Bill S-14, An Act to amend the Corruption of Foreign Public Officials Act, be read the second time and referred to a committee.

Bill S-14--Notice of Time Allocation Motion

[Peter Van Loan, Conservative, Leader of the Government in the House of Commons]

Mr. Speaker, I would like to advise that an agreement could not be reached under the provisions of Standing Orders 78(1) or 78(2) with respect to the second reading stage of Bill S-14, an act to amend the Corruption of Foreign Public Officials Act.

Under the provisions of Standing Order 78(3), I give notice that a minister of the Crown will propose at the next sitting a motion to allot a specific number of days or hours for the consideration and disposal of proceedings at the said stage.

Business of the House

[Peter Van Loan, Conservative, Leader of the Government in the House of Commons]

Mr. Speaker, now that we have been sitting for a week under our Conservative government's plans for a harder-working, productive and orderly House of Commons, I would remind all hon. members of what we have been able to achieve since just Victoria Day.

Bill C-48, the technical tax amendments act, 2012, was passed at report stage and third reading. Bill C-49, the Canadian museum of history act, was passed at second reading. Bill C-51, the safer witnesses act, was passed at report stage and we started third reading debate, which we will finish tonight. Bill C-52, the fair rail freight service act was passed at report stage and, just moments ago, at third reading. Bill C-54, the not criminally responsible reform act, was passed at second reading. Bill C-60, the economic action plan 2013 act, No. 1, was reported back from committee yesterday.

Bill S-2, the family homes on reserves and matrimonial interests or rights act, was passed at report stage and we started third reading debate. Bill S-6, the first nations elections act, was debated at second reading. Bill S-8, the safe drinking water for first nations act, which was reported back to the House this morning by the hard-working and fast running member for Peace River, has completed committee. Bill S-10, the prohibiting cluster munitions act, was debated at second reading. Bill S-12, the incorporation by reference in regulations act, was debated at second reading. Bill S-13, the port state measures agreement implementation act, was debated at second reading. Bill S-14, the fighting foreign corruption act, was debated at second reading.

We will build on this record of accomplishment over the coming week.

This afternoon, as I mentioned, we will finish the second reading debate on Bill C-51. After that, we will start the second reading debate on Bill C-56, Combating Counterfeit Products Act.

Tomorrow morning, we will start report stage on Bill C-60, now that the hard-working Standing Committee on Finance has brought the bill back to us. After I conclude this statement, Mr. Speaker, I will have additional submissions for your consideration on yesterday's point of order.

After question period tomorrow, we will get a start on the second reading debate on Bill S-15, Expansion and Conservation of Canada’s National Parks Act. I am optimistic that we would not need much more time, at a future sitting, to finish that debate.

On Monday, before question period, we will debate Bill S-17, Tax Conventions Implementation Act, 2013, at second reading. In the afternoon, we will hopefully finish report stage consideration of Bill C-60, followed by Bill S-2 at third reading.

On Tuesday, we will return to Bill S-2 if necessary. After that, I hope we could use the time to pass a few of the other bills that I mentioned earlier, as well as the forthcoming bill on the Yale First Nation Final Agreement.

Wednesday, June 5 shall be the eighth allotted day of the supply cycle. That means we will discuss an NDP motion up until about 6:30 p.m. This will be followed by a debate on the main estimates. Then we will pass to two appropriations acts.

Next Thursday, I would like to return back to Bill C-60, our budget implementation legislation, so we can quickly pass that important bill for the Canadian economy.

Transparency of Payments Made by Mining, Oil and Gas Corporations to Foreign Governments Act

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

Mr. Speaker, it is a nifty technique to make his speech in a question and then come back and make his speech all over again.

The simple issue is that this legislation has been on the books since 1999. He is perfectly correct about that. If it was not being prosecuted then he has had six, seven or eight years now to have done something about it. It is not as if the world has not been asking for Canada to step up to the plate. Conservatives have had the opportunity but they have not. Then to turn around and say now that we have this new legislation, Bill S-14, good, I am great about that, but we are not going to support 494, which is the evidence base that any prosecutor, any police officer is going to be able to use in order to have successful prosecutions. It is useless having legislation if we do not have evidence and we do not have resources and that is what Motion No. 494 does.

[Bob Dechert, Conservative, Parliamentary Secretary to the Minister of Foreign Affairs]

Mr. Speaker, the great irony here is the legislation the member is complaining about, the legislation that he says is not robust enough to convict Canadian companies responsible for corrupting foreign public officials, is known as the Corruption of Foreign Public Officials Act. It was passed in 1999 by the government the member was a minister in. Now he stands here today and says that there have not been enough prosecutions, not enough investigations under that act. It was actually his party, the government he sat at the cabinet table of, that passed that act and then sat on it for several years. That is the legislation the member is now complaining about.

Our government came forward with Bill S-14. The president of Transparency International, whom the member likes to quote, has said that Transparency International is delighted that the Government of Canada is moving to strengthen the corruption of foreign public officials act, the one that his government passed that is not robust enough to do what he says it should do, in accordance with Canada's international obligation and encourages the government to ensure that the RCMP have the resources necessary to enforce the CFPOA effectively--

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

moved that Bill C-474, an act respecting the promotion of financial transparency, improved accountability and long-term economic sustainability through the public reporting of payments made by mining, oil and gas corporations to foreign governments, be read the second time and referred to a committee.

Mr. Speaker, I thank my hon. colleague from Winnipeg North for being the seconder to this bill.

It appears we are at the end of a parliamentary week and this has indeed been a week about corruption, I am afraid. I wish it were not so, but it is.

Ironically, today, the government introduced Bill S-14, which is a bill about corruption and we had quite a number of interventions on that bill. Then question period followed and that, too, was, regrettably, about carryings-on about corruption, bribery and things of that nature. Then we were supposed to proceed with Bill S-14 after question period, but the government switched off that bill.

However, my colleague from the NDP raised the issue of the report of the foreign affairs committee where, in fact, it was also a discussion in some manner or other about the use and abuse of aid money in the extractive sectors.

Here we are, at the end of our parliamentary week, talking about bill C-474, which I have suggested be called the “sunshine bill”. The reason we call it the sunshine bill is that sunshine is light on, how shall we say, murky practices. It is light on goings-on that people only suspect.

However, it also has another aspect. Sunshine also has the aspect of killing bacteria. In some respects when we have legislation such as the sunshine bill, I would suggest it would not only shed light on somewhat murky and dubious practices, but it would also kill off some of those murky and dubious practices.

The bill is, as far as I have been able to make it within our legislative framework, a mirror image of the Cardin-Lugar amendment to the Dodd-Frank bill.

Members will recall that in 2008-09 the world went through a pretty significant financial crisis. The major legislative response by the United States was the Dodd-Frank bill. In the Dodd-Frank bill was an amendment made by Senators Cardin and Lugar which said, in effect, that an extractive company operating in a foreign jurisdiction must, within 180 days of its fiscal year end, produce an audited statement to be filed with the Securities Exchange Commission, which discloses all payments it has made in the course of its previous fiscal year, those payments being taxes, royalties, dividends, licence fees, production entitlements, bonuses, provision of infrastructure and other in-kind payments and a variety of other payments that would be appropriate to disclosure.

Insofar as I have been able to make this bill as mirror image as our American friends have done, I have done so.

In the United States, the sanction for failing to file will be delisting from U.S. stock exchanges. Therefore, we can imagine that the Americans are very serious about corruption. Failure to comply means that a company will be delisted from, primarily, the New York Exchange. Its stock will be worth zero. The company will be functus. That is how serious the Americans are about corruption in companies in which it has administrative jurisdiction.

We do not have a national securities regulator. That case was decided about a year ago. I actually applaud the government's efforts to try to create a national securities regulator. Our securities regulation in the country is a joke. There are all kinds of little silos doing various different things. Therefore, I applaud the government's efforts, but those efforts failed. As a consequence, we had to rejig the sanction to be a fine sanction.

Failure to file with the government in a similar fashion as the Cardin-Lugar amendment would, in this instance, attract a fine rather than a delisting from a U.S. stock exchange.

I know the Americans are extremely keen on this legislation. In 2011 or 2012, I am not quite sure in which was the meeting, President Obama raised this matter with his G7 partners. All the partners at the G7 wanted each nation to commit to legislation similar to the Cardin-Lugar amendment. The only nation that resisted was Canada, which is quite regrettable because we are the world centre for the extractive industry. More transactions take place on the TSX than pretty well anywhere else in the world. This is the centre of the world for mine financing, law firms, accounting and geology. We are the best in the world in mining. That is an extremely important industry to us and our nation's well-being. Therefore, we should also be the leaders in an international regulatory environment for the benefit of our nation and the companies that call Canada home. It is good for Canada, for the industry and it is good for our national reputation.

Unfortunately, Canadians are fed up of reading in their national newspapers and other media about various companies that find themselves on the wrong side of bribery allegations, the latest example being SNC-Lavalin, which is by anyone's standard a world-class engineering firm. However, because of bribery convictions in Bangladesh, it has been barred from competing in world bank contracts for the next 10 years. That basically takes SNC-Lavalin, and essentially Canada, out from competing for engineering projects. Officials have been fired and the stock has been hammered.

One can go through quite a number of Canadian and Canadian-based companies such as: the Calgary-based Griffiths engineering company, which recently paid a $10 million fine for an inappropriate financial relationship with the wife of the Chad's former ambassador; Niko Resources another $9 million fine in 2011 for again an inappropriate relationship with a former energy minister in Bangladesh; and Blackfire Exploration Ltd. is having its offices raided by the RCMP.

This is serious stuff. The common pattern is the conviction gets registered, the officials get fired, the stock gets hammered, so there is a bunch of unhappy people and the most unhappy of all are the shareholders. All of us are shareholders in many of these companies because they are all on the TSX and our Canada pension plan has large holdings on many of these companies.

It gets worse than that. Members may or may not have caught an article in The Globe and Mail last year entitled “Canada ranked worst of G7 nations in fighting bribery, corruption”. In the second paragraph it states:

Transparency International, a group that monitors global corruption, put Canada in the lowest category of countries with “little or no enforcement” when it comes to applying bribery standards set out by the [OECD].

Mr. Dent further states that:

—the United States has prosecuted more than 200 companies and individuals, many of them “a veritable who’s who of the corporate world”...

The United States is serious about this kind of corruption and is very serious not only in a legislative fashion but also in a prosecutorial fashion in trying to deal with these allegations and concerns.

The United States, in a comparable period of time, has conducted 227 prosecutions. In a similar period of time, we have conducted two. We are the world centre for mining. Maybe when things go north of the border, we suddenly become a whole lot better than the rest of the world. I suppose we are entitled to believe in our fantasies.

However, the Americans, the British treat and the Europeans treat this very seriously. Unfortunately, the big hole in the legislative fence is right here. This has reputational damage, and it is not only reputation.

I hear my friends chirping over there because they are a little nervous that they have been caught with no legislative response going into the G8 next month.

If Conservatives do not think this is serious to shareholders, if they do not think it is serious to management, if they do not think it is serious to our corporations or our corporate brand, they should think about it in terms of our national reputation.

Positive views of Canada fell most steeply in the United States, Britain and China, according to the BBC World News survey of 20,000 people in 20 countries who were asked if Canada had a mainly positive or negative influence on the world. It is the first time Canada's popularity among its major trading partners has declined since polling from GlobeScan began tracking international sentiment in 2005.

GlobeScan chairman, Doug Miller, said, “the deterioration could hurt Canadian business interests”. He said, “If the conditions persist, it can start to set in more cognitively and become an anchor that weighs down [Canada's] reputation. What countries have found is that it's extremely hard work to regain trust”.

The industry is actually cognizant of this. The industry gets it. Over the last couple of years, I have been meeting quite regularly with industry groups. In many instances they have signed up for EITI, the extractive industries transparency initiative. In many instances they understand that not only is it important that their company have a good reputation, but it is important that their industry have a good reputation and it is important that our nation have a good reputation.

They have conducted on their own, at their own expense, all kinds of seminars, education things and the government has in some respects facilitated some of that discussion with the Vancouver-based organization which is on EITI.

Interestingly, Canada as a nation, unlike other nations like the United States, has not signed on for EITI. We actually cannot hold our own companies to account, even though some of our own companies have voluntarily joined the EITI initiative themselves.

Joe Ringwald, Transparency International Canada representative and an industry representative, said, “It is become important to become a leader in order to gain this reputational advantage”. He also stated that Canada had become a laggard on this industry, that industry in general was taking a favourable tone to this legislation and that there had been a number of industry players who wanted transparency.

The industry, the various other actors, the NGOs and others are stepping up to the plate, but what is really worrisome is that, internationally, we are about to get one more black eye.

At the G8 meeting in June, Prime Minister Cameron wants transparency to be one of the takeaways from that meeting. He wants the rest of the G8 partners to adopt the legislation similar to the Cardin-Lugar amendment. Thus far we are going in with fig leaves.

Bill S-14 is a fig leaf. It is wonderful in so far as getting prosecution, but it is not much good in terms of generating evidence.

I would encourage my colleagues, particularly my colleagues opposite, to support this legislation. This is extremely important to the industry and extremely important for our nation.

Fighting Foreign Corruption Act

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

Mr. Speaker, we might title this day “corruption day on the Hill”. After all, for the first hour or so, we are going to be talking about Bill S-14, a bill on bribery and corruption. I dare say question period will have something to do with the other place, which might have something to do with bribery and corruption. Then we will go back to debating this bill, which is clearly about bribery and corruption. Then we will be on to debating my sunshine bill, which is also about bribery and corruption. I would say that this is corruption day on the Hill.

I take note of the irony, as has my colleague, but there is also a double irony going on here. The government's position is that it wants us to support Bill S-14, which we both agree is a good idea. However, when it comes to actually generating evidence that would support prosecutions under Bill S-14 the government does not want Bill C-474 to pass or to see the light of day.

It is great to say that we have all this great law, but it is utterly useless if in fact we cannot generate the evidence.

I am quoting from what the parliamentary secretary seems to be fond of quoting from:

Transparency International, a group that monitors global corruption, put Canada in the lowest category of countries with “little or no enforcement” when it comes to applying bribery standards.

And also:

By contrast, the United States has prosecuted more than 200 companies and individuals, many of them “a veritable who’s who of the corporate world”.

My question is very simple. What is the use of Bill S-14 if in fact Bill C-474 does not pass and if in fact there are no resources available to the RCMP?

[Paul Dewar, NDP, Ottawa Centre, ON]

Mr. Speaker, I rise today to speak to Bill S-14. As I do with all of the bills that come from the Senate, I have to start by talking a bit about parliamentary democracy, particularly with respect to this legislation.

We are seeing this disturbing trend where bills come to his place that originate in the Senate. I do not know what those members over there were thinking when they were first elected, particularly those who started with the Reform Party, but we have never seen so many pieces of legislation. Was that Preston Manning's vision of what the Senate would become? Over 58 senators have been appointed by the present Prime Minister and they were not appointed on the basis of merit but rather on who they knew. We see what is unravelling there now.

The originators of this piece of legislation are in that place. This legislation is about corruption with companies that some of the people over there have some problems with. There is a conflict of interest here. If members across the way cannot see this, then they should open their eyes. How could they not have caught this? They could not even see the fact that a bill that deals with corruption with companies should not start in the Senate where people are still sitting on boards of corporations. It is called a conflict of interest, and that whole place is a conflict of interest it seems these days.

This does need to be pointed out to Canadians as they watch the crisis in Parliament and in the Senate. Senators who have been appointed to that place sit with elected members from this place in caucus every Wednesday, and they share all their information and wisdom. They are seen as legitimate players in terms of what happens in our parliamentary democracy. That is a shame, and it obviously should be changed. This legislation should be dealt with through sober eyes and with clean hands. I am sorry, but there is a problem when people who sit on the boards of corporations are the originators of this legislation. I cannot believe the Conservatives could not see that; although these days there is a bit of a fog over there as to principles and ethics. Everyone knows about that.

Bill S-14 is overdue. Canada ranks dead last when it comes to transparency. The government talked a good game in 2006. I just heard the parliamentary secretary's rationale of “could not get it done”. That reminded me of the previous government that was going to do all sorts of things on climate change and so on, but it just could not get it done. The Conservative government has been in power since 2006, and Canada is ranked dead last in the G7 when it comes to transparency.

However, now it comes forward at the last minute. We will be embarrassed at the G8 if we do not get in line with what other G7 countries want to do, and that is to have full disclosure with Canadian companies, particularly the extractive companies, when it comes to doing business abroad. The bill would not deal with that. The bill is the bare minimum when it comes to looking at corruption and how Canadian companies do business abroad, which is basically after they are caught.

We need to go much further than this. We need to look at the initiatives taken south of the border. We need to think about what we are going to see when the G7 comes up. British Prime Minister Cameron is going to talk about taxes, transparency and trade. Under transparency, he is going to put on the table the EITI principles, which Canada has been called out on. Right now, Russia and Canada are the two countries in the G8 that are being called out for not doing enough. We have to change that because it involves our good name.

I will not bite on the parliamentary secretary's notion that the NDP is against all mining, gas and oil. Many of us have worked in those sectors. We represent constituents who work in those sectors. I am not sure if he has been there, but the parliamentary secretary should go to northern Ontario and he would understand that. Alas, I will not bite on that. It has no credibility, as is often the case with the parliamentary secretary.

We need to understand that if we do not do more, if this is all the government has to offer in terms of Canada crawling out from last place in transparency, then we have failed. Not only will we have failed in terms of our reputation abroad, but we will have failed Canadian companies. Let me spend a couple of minutes speaking on that.

Right now the mining sector is ready to fully embrace the principles of disclosure. It is stunning that the government has not actually met the industry's wish to have that happen. Why is it doing that? It is because the world has changed and these guys are living in the past. The Conservatives think they can go with the old rules and everything will be fine, that people sit around the table and say, “We have to catch up with this because if we don't it's going to catch up to us”.

The world is passing us by. Industry is passing us by. Industry actually wants to embrace full disclosure of all transactions with foreign countries and companies that they are doing business with overseas. It is really bizarre for me to see that the government is so far in the past and that we have every other country in the G7 passing us by. Canada used to be the leader in the area of international law transparency. We are dead last right now.

Bill S-14 would create new offences for those who are concealing records. Fine. It would make sure the notion of the exception for so-called facilitation payments would be dealt with. SNC-Lavalin could tell us a lot about that; obviously, that is something it got caught in. Should we have dealt with that a long time ago? Absolutely. Is it going far enough? Absolutely not. It is a question of whether the government actually believes in corporate social responsibility. That is what it is about.

What the government fails to do, sadly, is to understand that the rest of the world is moving ahead. If it is going to be stuck in the past, it is at the cost of Canada's reputation, and actually at the cost of Canadian businesses, because no country will want to have a company coming in that is not up to the highest standard. Those are the old days, where they could say they were going to open up an operation in a country and they would have to do certain things because it is a cultural thing there, the way they do business, and just pretend it is okay. Those days are gone, and the government had better wake up to that because the future is about full transparency. It is about full daylight. It is not just about bringing in provisions like this bill, which was something that should have been done decades ago; it is about actually going much further.

When we look at Canada's footprint in the world, we should be leaders. Canada's footprint, particularly in the extractive industry, in mining, and gas and oil to some extent as well, is massive. As members probably know, we have the largest footprint when it comes to concentration of investment, and just look at the Toronto Stock Exchange. That is something we have to pay particular attention to. If we are not careful and we are not bringing in full transparency and requirements for industry when doing business abroad, it could affect investment, in the short and the long run, frankly.

We will see other countries passing us by. Also, if countries that are wanting to get into this field see Canada as living in the past and not being brought up to the standards that many in the international community have embraced, then that will affect investment and jobs. It will mean that instead of being seen as a leader in this area, Canada will continue to be seen as a laggard.

It is interesting that the government did not add more teeth to this legislation earlier. I say that because we had some very fulsome debates on the idea of corporate social responsibility. I know my colleague from the Liberal Party will recall that. At the time, the government was so consumed with shutting down any further requirements for industry when doing their business abroad that it forgot to look at what was happening around the world. At the time it was just about “kill that bill”, and it was successful in doing so. What it forgot to do was to look around and notice the world was changing. Even countries that are often criticized, like China, is doing a lot to change the way it is doing business abroad.

I find it rather simplistic, at best, that the government decided it would only bring forward this legislation after being in power since 2006, that it would come from the Senate, which is the definition of irony, I guess, and that it would not understand that we have to do more in this area.

When some of us travel abroad, we talk to people in government and on the ground and ask, “What are your feelings about what is happening in terms of Canada's participation in your country?” The one thing many people say is that they would like more enforcement in terms of transparency. They say that because they actually want us there, there is no question about it. By and large, Canadian companies have a good reputation; the parliamentary secretary and I agree on this. However, people want us to go further and embrace the norms and standards that the rest of the world has now embraced.

I think of places I have been to like the Congo. There was a recent study by Kofi Annan, in which he identified the problem now in the continent of Africa, where there is massive investment. The problem is that the people who are responsible for, so to speak, stewardship of the land and people who live on the land, are not seeing the benefits. Essentially, it is because money is being sucked out of the continent. It is going elsewhere and they are not seeing the benefits. That social contract that is absolutely critical when investing anywhere in Canada, but especially overseas, is being disrupted. People are not seeing the benefits of having an enterprise in their communities and many now are fighting against it. Clearly, we have to get our house in order. Clearly, we have to do more than what is being offered in this bill. As I said at the beginning, New Democrats will support this bill in principle and study it in committee.

One has to ask oneself if the government actually understands what is happening in the world today. I would argue it does not. There are, as I said before, umbrella groups that represent mining saying they are ready and absolutely on board with full transparency and strengthening the EITI principles. They tell government to get on board and get going and they get silence, at best, from government. One has to wonder what world it is living in.

If we look at what is happening around the world, the world has changed significantly. We see developing emerging economies with more capacity to develop their own resources. We see that the BRIC countries are obviously playing a more significant role than even five or six years ago. Instead of trying to do the minimum, Canada should be doing a lot more because what it means for both our reputation and ability to do business are absolutely connected.

I will give the example of China. Many people have talked over the years about how much China is involved in the development of oil and gas and mining overseas. In fact, there was an issue on the west coast of Canada with a Chinese mining company. It understands now that it cannot go in and do whatever it wants. It has to substantively change its business model, ensure there is no corruption and that it adheres to some basic norms. That is a big change because it knows that at some point the host country will no longer welcome it if there is seen to be, and there is, a lack of transparency.

Internationally, Canada has the responsibility to engage in responsible commerce. I will tell the government to look at what it has done to date. It decided that it would fight to the end on strengthening corporate social responsibility and it brought in a counsellor on the issue. Everyone who has studied the operations of that office will note that it is like the integrity commissioner. There is a person at that office, but there is not a lot going on. The lights are on, yes, but I am wondering if anyone is home.

The question for the government is if this is all it has and this is its vision. Canadians want more, that is clear, that is within our values, but on the business side they want to see that there are clear rules. Two things businesses want are consistent rules and fair rules. Right now they are looking at government and there is a fog. I say that because there is this line that the Conservatives use over and over again, that they are for trade and New Democrats are against trade, they are for business and New Democrats are against business.

[Bob Dechert, Conservative, Parliamentary Secretary to the Minister of Foreign Affairs]

Mr. Speaker, it is my pleasure to rise today to begin debate at second reading of Bill S-14, the fighting foreign corruption act.

On February 5, our government announced further steps to combat corruption and bribery by tabling amendments to the Corruption of Foreign Public Officials Act, or the CFPOA.

Canada has long played a prominent role on the international stage in combatting corruption. Bill S-14 signals our commitment to further deter and prevent Canadian companies from bribing foreign public officials.

The amendments proposed in Bill S-14 are intended to ensure that Canadian companies continue to act in good faith in the pursuit of freer markets and expanded global trade. They also signal our commitment and our expectation that other countries do the same.

The CFPOA has been in force since 1999 and was first introduced to implement our international obligations under the OECD anti-bribery convention and two more anti-corruption conventions through the OAS and the UN.

In essence, the CFPOA makes it a crime in Canada to bribe a foreign public official to gain a business advantage abroad. It also makes it possible to prosecute a conspiracy to commit or an attempt to commit such a bribery. It covers aiding and abetting the commission of bribery, an intention in common to commit bribery and counselling others to commit bribery.

Laundering property and the proceeds of crime, including the proceeds of bribery offences, as well as the possession of property and proceeds, are already offences under the Criminal Code. The new offences being created in the CFPOA would also be captured by these Criminal Code provisions once they were in force.

The six proposed amendments included in Bill S-14 are intended to answer the call for enhanced vigilance. They demonstrate a comprehensive approach to fighting bribery and signal our government's strong and unwavering commitment to that fight. I will explain each of these in turn.

The first amendment, the introduction of nationality jurisdiction, would allow us to prosecute Canadians or Canadian companies on the basis of their nationality, regardless of where the bribery takes place in the world. Currently, we can only do so after providing a substantial link between the offence and Canadian territory.

The second amendment would provide exclusive authority to the RCMP to lay charges under the act. This would ensure that a uniform approach is taken across Canada and would raise awareness of Canadian businesses regarding the RCMP's primary role in the CFPOA investigations.

The third amendment, the elimination of the words “for profit” from the definition of “business”, would ensure that bribery applies to all, not just those paid by businesses that make a profit.

The fourth amendment would increase the maximum jail term to 14 years. It is currently punishable by a maximum of five years' imprisonment and unlimited fines. The possibility of unlimited fines will remain as it is.

The fifth amendment creates a new books and records offence specific to foreign bribery. International anti-corruption treaties to which Canada is a party require that measures be put in place to ensure that individuals and companies do not “cook the books”. The penalties for the new offence would mirror those of the foreign bribery offence; that is, a maximum of 14 years of imprisonment and unlimited fines.

The sixth and final amendment would eliminate the facilitation payments exception. Currently, the act states that payments made “to expedite or secure the performance by a foreign public official of any act of a routine nature” do not constitute bribes for the purposes of the CFPOA. The CFPOA also provides for an inclusive list of acts of a routine nature.

For the benefit of all members, a facilitation payment is a payment made to a foreign public official to do something that he or she is already obligated to do, such as deliver the mail on time. Conversely, payments that are made to receive a business advantage constitute bribes, which are already illegal under the CFPOA. As a result of the elimination of the facilitation payments defence, this would not create a competitive disadvantage for Canadian companies in international markets. Bribes are illegal under the legislation of every OECD country.

In order to ensure a level playing field for all businesses, Bill S-14 provides for the delay of the coming into force of the elimination of the facilitation payments exception to allow Canadian companies to adjust their own practices and internal policies, if they have not already done so, to ban the use of facilitation payments in their day-to-day operations. This time to adjust is all the more important given that some other countries continue to allow facilitation payments.

With Bill S-14, our government has taken a proactive role in raising awareness of its zero-tolerance position, and we are taking a proactive role in raising awareness of the risks of engaging in corruption abroad.

It is incumbent upon us to appreciate this bill for what it is: that being a clear message that Canada means business and that our government's top priority is securing jobs, growth and long-term prosperity.

Corruption does the opposite. Corruption erodes economic growth and long-term prosperity. Corruption fosters an environment conducive to allowing other crimes to flourish.

Foreign bribery undermines economic prosperity by corroding the rule of law that is the basis of market freedom. The global fight against foreign bribery is intended to create a level playing field for all international businesses. The bill provides us with a strong tool for creating the conditions for Canadian businesses to play by the rules and for Canadian businesses to succeed. Canadian companies can compete with the best and win fairly. Recent cases right here in Canada demonstrate the need for continued vigilance and the importance of effective enforcement.

Our government remains committed to combatting foreign corruption and has already developed and implemented an array of regulatory and legislative tools with which to do so. A number of federal departments, agencies and crown corporations play key roles in Canada's fight against foreign bribery. They work in close co-operation in Canada's two-pronged approach to foreign bribery: enforcement and prevention.

In January 2008, the RCMP established its international anti-corruption unit, which is dedicated to enforcing and raising awareness about the CFPOA. Comprising two teams, strategically located in Ottawa, Canada's capital, and Calgary, a major nucleus for industry, trade and finance and a hub for Canada's extractive industries, it has complemented enforcement efforts with substantial awareness-raising and training.

In addition, the legal framework that established the Public Prosecution Service of Canada in 2006 further enhances prosecutorial discretion in Canada. Since its establishment, the PPSC has also created a position in Ottawa for the purpose of advising the two RCMP teams on ongoing investigations.

To date, under the CFPOA, there have been three convictions, and two cases are pending. There are 35 ongoing investigations. The penalties are increasing substantially with each new conviction. This is good news for Canada. With the adoption of these new amendments, we can expect to hear even better news.

In early 2012, during the development phase to identify new ways for Canada to enhance its fight against foreign bribery, the government hosted the “Canadian Workshop: New Ideas for Canada's Fight against Foreign Bribery”. This was a means to consult with experts from Canadian businesses, law firms, academic institutions and non-governmental organizations on the issue of foreign bribery.

The workshop was held in Ottawa and provided an opportunity for discussions between government officials and key stakeholders on concrete steps that could be taken to improve the enforcement of the CFPOA, and to further encourage Canadian companies to prevent bribery before it happens and to detect it when it occurs.

Over 30 participants engaged in discussions on a number of foreign bribery related themes, including possibly amending the CFPOA, recognizing and resisting bribery solicitations, discouraging facilitation payments, voluntary disclosure, books and records offences, awareness raising, messaging to small and medium-sized enterprises, sectorial initiatives and education and training.

The Government of Canada continues to consider the views and ideas that were presented at the workshop, which was intended to be the first step toward increasing engagement and co-operation with key stakeholders on foreign bribery and corruption in the months and years to come. The results of that consultation are reflected in the bill.

These consultations complement the awareness-raising endeavours undertaken by the RCMP, which I mentioned earlier. Additional examples of the RCMP's participation in anti-corruption awareness programs and training include expanding its training of RCMP liaison officers before they depart for overseas assignments to include the issues of foreign bribery and the CFPOA.

The international anti-corruption unit has also established contacts for the Department of Justice's international systems group to ensure that priority is given to requests for mutual legal assistance in corruption matters. The RCMP has also made a number of presentations to external stakeholders, including presentations to local universities, non-governmental organizations, banks, trade commissioners, law firms, government partners, the Canadian Institute of Mining and numerous Canadian and international associations, experts and professionals.

As we can see from an enforcement perspective, we are on solid ground. As mentioned earlier, a number of federal departments, agencies and crown corporations play key roles in Canada's fight against foreign bribery. They work in close co-operation in Canada's two-pronged approach to foreign bribery: in enforcement and in prevention.

Another of these key departments is Public Works and Government Services Canada. Members will recall that effective July 11, 2012, PWGSC extended the list of offences that render companies and individuals ineligible to bid on contracts to include the bribing of a foreign public official under the CFPOA. This further demonstrates the government's zero tolerance position and is evidence of the variety of legislative, regulatory and policy instruments used in Canada's whole of government approach to combatting corruption.

From a prevention perspective, the Department of Foreign Affairs and International Trade also engages in training and outreach. Information and training on the act and on Canada's international obligations to prevent and combat corruption are provided to heads of mission, trade commissioners and political officers.

In March 2010, the Department of Foreign Affairs and International Trade adopted the policy and procedure for reporting allegations of bribery abroad by Canadians or Canadian companies. These provide guidance to Canadian missions on the steps that must be taken when allegations arise that a Canadian company or individual has bribed a Canadian public official, or other bribery related offences.

Canada is a trading nation. Our economy and future prosperity depend upon expanding our trade ties with the world. As the Minister of Foreign Affairs said on February 5, Canada is committed to the implementation of our international obligations on anti corruption.

These amendments will help ensure that Canadian companies continue to act in good faith in the pursuit of freer markets and expanded global trade.

It is now up to the House to demonstrate our commitment to combatting corruption. Canada is committed to strengthening its fight against corruption, and this bill is a reflection of that commitment. Bribery is not the Canadian way of doing business. We need to make this crystal clear today.

[Tony Clement, Conservative, Parry Sound—Muskoka, ON]

moved that Bill S-14, An Act to amend the Corruption of Foreign Public Officials Act, be read the second time and referred to a committee.

Business of the House

[Peter Van Loan, Conservative, Leader of the Government in the House of Commons]

Mr. Speaker, as you know, our government has moved forward this week to conduct business in the House of Commons in a productive, orderly and hard-working fashion, and we have tried to work in good faith.

We began the week debating a motion to add an additional 20 hours to the House schedule each week. Before I got through the first minute of my speech on that motion, the hon. member for Skeena—Bulkley Valley interrupted with a dubious point of order to prevent the government from moving forward to work overtime. His was a bogus argument and the Speaker rightly saw the NDP delay effort as entirely devoid of merit and rejected it outright.

During its first speech opposing the motion to work hard, the NDP then moved an amendment to gut it. That amendment was defeated. The NDP then voted against the motion and against working overtime, but that motion still passed, thanks to the Conservatives in the House.

During the first NDP speech on Bill C-49 last night, in the efforts to work longer, the NDP moved an amendment to gut that bill and cause gridlock in the House. I am not kidding. These are all one step after another of successive measures to delay. During its next speech, before the first day of extended hours was completed, the NDP whip moved to shut down the House, to go home early. That motion was also defeated. This is the NDP's “do as I say, not as I do” attitude at its height.

Take the hon. member for Gatineau. At 4 p.m., she stood in the House and said, “I am more than happy to stay here until midnight tonight...”. That is a direct quote. It sounded good. In fact, I even naively took her at her word that she and her party were actually going to work with us, work hard and get things done. Unfortunately, her actions did not back up her words, because just a few short hours later, that very same member, the member for Gatineau, seconded a motion to shut down the House early.

I am not making this up. I am not kidding. She waited until the sun went down until she thought Canadians were not watching anymore and then she tried to prevent members from doing their work. This goes to show the value of the word of NDP members. In her case, she took less than seven hours to break her word. That is unfortunate. It is a kind of “do as I say, not as I do” attitude that breeds cynicism in politics and, unfortunately, it is all too common in the NDP.

We saw the same thing from the hon. member for Davenport, when he said, “We are happy to work until midnight...”, and two short hours later he voted to try to shut down the House early. It is the same for the hon. member for Algoma—Manitoulin—Kapuskasing and the hon. member for Drummond. They all professed an interest in working late and then had their party vote to shut down early. What is clear by their actions is that the NDP will try anything to avoid hard work.

It is apparent that the only way that Conservatives, who are willing to work in the House, will be able to get things done is through a focused agenda, having a productive, orderly and hard-working House of Commons. This afternoon, we will debate Bill C-51, the safer witnesses act, at report stage and third reading. After private members' hour, we will go to Bill S-12, the incorporation by reference in regulations act, at second reading.

Tomorrow before question period, we will start second reading of Bill S-14, the fighting foreign corruption act, and after question period, we will start second reading of Bill S-13, the port state measures agreement implementation act.

Monday before question period, we will consider Bill S-2, the family homes on reserves and matrimonial interests or rights act. This bill would provide protection for aboriginal women and children by giving them the same rights that women who do not live on reserve have had for decades. After question period, we will debate Bill C-54, the not criminally responsible reform act, at second reading, a bill that makes a reasonable and needed reform to the Criminal Code. We are proposing to ensure that public safety should be the paramount consideration in the decision-making process involving high-risk accused found not criminally responsible on account of mental disorder. It is time to get that bill to a vote. We will also consider Bill C-48, the technical tax amendments act, 2012—and yes, that is last year—at third reading.

On Tuesday, we will continue the debates on Bill C-48 and Bill C-49, the Canadian museum of history act.

On Wednesday, we will resume this morning's debate on Bill C-52, the fair rail freight service act, at third reading.

On Thursday, we will continue this afternoon's debate on Bill C-51. Should the NDP adopt a new and co-operative, productive spirit and let all of these bills pass, we could consider other measures, such as Bill S-17, the tax conventions implementation act, 2013, Bill C-56, the combating counterfeit products act, Bill S-15, the expansion and conservation of Canada’s national parks act, and Bill C-57, the safeguarding Canada's seas and skies act.

Optimism springs eternal within my heart. I hope to see that from the opposition.

Extention of Sitting Hours

[Peter Van Loan, Conservative, York—Simcoe, ON]

Mr. Speaker, I will pick up where I left off. Obviously my hon. friend did not hear this and has not read the motion. I will respond to his macho riposte at the end of his comments by pointing out that the motion would do three things: first, it would provide for us to sit until midnight; second, it would provide a manageable way in which to hold votes in a fashion that works for members of the House; and third, it would provide for concurrence debates to happen and motions to be voted on in a fashion that would not disrupt the work of all the committees of the House and force them to come back here for votes and shut down the work of committees.

Those are the three things the motion would do. In all other respects the Standing Orders remain in place, including the Standing Orders for how long the House sits. Had my friend actually read the motion, he would recognize that the only way in which that Standing Order could then be changed would be by unanimous consent of the House.

The member needs no commitment from me as to how long we will sit. Any member of the House can determine that question, if he or she wishes to adjourn other than the rules contemplate, but the rules are quite clear in what they do contemplate.

As I was saying, the reason for the motion is that Canadians expect their members of Parliament to work hard and get things done on their behalf.

Canadians expect their members of Parliament to work hard and get things done on their behalf.

We agree and that is exactly what has happened here in the House of Commons.

However, do not take my word for it; look at the facts. In this Parliament the government has introduced 76 pieces of legislation. Of those 76, 44 of them are law in one form or another. That makes for a total of 58% of the bills introduced into Parliament. Another 15 of these bills have been passed by either the House or the Senate, bringing the total to 77% of the bills that have been passed by one of the two Houses of Parliament. That is the record of a hard-working, orderly and productive Parliament.

More than just passing bills, the work we are doing here is delivering real results for Canadians. However, there is still yet more work to be done before we return to our constituencies for the summer.

During this time our government's top priority has been jobs, economic growth and long-term prosperity. Through two years and three budgets, we have passed initiatives that have helped to create more than 900,000 net new jobs since the global economic recession. We have achieved this record while also ensuring that Canada's debt burden is the lowest in the G7. We are taking real action to make sure the budget will be balanced by 2015. We have also followed through on numerous longstanding commitments to keep our streets and communities safe, to improve democratic representation in the House of Commons, to provide marketing freedom for western Canadian grain farmers and to eliminate once and for all the wasteful and inefficient long gun registry.

Let me make clear what the motion would and would not do. There has been speculation recently, including from my friend opposite, about the government's objectives and motivations with respect to motion no. 17. As the joke goes: Mr. Freud, sometimes a cigar is just a cigar. So it is with today's motion. There is only one intention motivating the government in proposing the motion: to work hard and deliver real results for Canadians.

The motion would extend the hours the House sits from Monday through Thursday. Instead of finishing the day around 6:30 or 7 p.m., the House would sit instead until midnight.

This would amount to an additional 20 hours each week. Extended sitting hours is something that happens most years in June. Our government just wants to roll up our sleeves and work a little harder, earlier this year. The motion would allow certain votes to be deferred automatically until the end of question period, to allow for all honourable members' schedules to be a little more orderly.

As I said, all other rules would remain. For example, concurrence motions could be moved, debated and voted upon. Today's motion would simply allow committees to continue doing their work instead of returning to the House for motions to return to government business and the like. This process we are putting forward would ensure those committees could do their good work and be productive, while at the same time the House could proceed with its business. Concurrence motions could ultimately be dealt with, debated and voted upon.

We are interested in working hard and being productive and doing so in an orderly fashion, and that is the extent of what the motion would do. I hope that the opposition parties would be willing to support this reasonable plan and let it come forward to a vote. I am sure members opposite would not be interested in going back to their constituents to say they voted against working a little overtime before the House rises for the summer, but the first indication from my friend opposite is that perhaps he is reluctant to do that. Members on this side of the House are willing to work extra hours to deliver real results for Canadians.

Some of those accomplishments we intend to pass are: reforming the temporary foreign workers program to put the interests of Canadians first; implementing tax credits for Canadians who donate to charity; enhancing the tax credit for parents who adopt; and extending the tax credit for Canadians who take care of loved ones in their home.

We also want to support veterans and their families by improving the determination of veterans' benefits.

Of course, these are some of the important measures from this year's budget and are included in Bill C-60, economic action plan 2013 act, no. 1. We are also working toward results for aboriginals by moving closer to equality for Canadians living on reserves through better standards for drinking water and finally giving women on reserves the same rights and protections other Canadian women have had for decades. Bill S-2, family homes on reserves and matrimonial interests or rights act, and Bill S-8, the safe drinking water for first nations act would deliver on those very important objectives.

We will also work to keep our streets and communities safe by making real improvements to the witness protection program through Bill C-51, the safer witnesses act. I think that delivering these results for Canadians is worth working a few extra hours each week.

We will work to bring the Technical Tax Amendments Act, 2012, into law. Bill C-48 would provide certainty to the tax code. It has been over a decade since a bill like this has passed, so it is about time this bill passed. In fact, after question period today, I hope to start third reading of this bill, so perhaps we can get it passed today.

We will also work to bring Bill C-52, the fair rail freight service act, into law. The bill would support economic growth by ensuring that all shippers, including farmers, are treated fairly. Over the next few weeks we will also work, hopefully with the co-operation of the opposition parties, to make progress on other important initiatives.

Bill C-54 will ensure that public safety is the paramount consideration in the decision-making process involving high-risk accused found not criminally responsible on account of mental disorder. This is an issue that unfortunately has affected every region of this country. The very least we can do is let the bill come to a vote and send it to committee where witnesses can testify about the importance of these changes.

Bill C-49 would create the Canadian museum of history, a museum for Canadians that would tell our stories and present our country's treasures to the world.

Bill S-14, the Fighting Foreign Corruption Act, will do just that by further deterring and preventing Canadian companies from bribing foreign public officials. These amendments will help ensure that Canadian companies continue to act in good faith in the pursuit of freer markets and expanded global trade.

Bill S-13, the port state measures agreement implementation act, would implement that 2009 treaty by amending the Coastal Fisheries Protection Act to add prohibitions on importing illegally acquired fish.

Tonight we will be voting on Bill S-9, the Nuclear Terrorism Act, which will allow Canada to honour its commitments under international agreements to tackle nuclear terrorism. Another important treaty—the Convention on Cluster Munitions—can be given effect if we adopt Bill S-10, the Prohibiting Cluster Munitions Act.

We will seek to update and modernize Canada’s network of income tax treaties through Bill S-17, the Tax Conventions Implementation Act, 2013, by giving the force of law to recently signed agreements between Canada and Namibia, Serbia, Poland, Hong Kong, Luxembourg and Switzerland.

Among other economic bills is Bill C-56, the combating counterfeit products act. The bill would protect Canadians from becoming victims of trademark counterfeiting and goods made using inferior or dangerous materials that lead to injury or even death. Proceeds from the sale of counterfeit goods may be used to support organized crime groups. Clearly, this bill is another important one to enact.

Important agreements with the provinces of Nova Scotia and Newfoundland and Labrador would be satisfied through Bill S-15, the expansion and conservation of Canada’s national parks act, which would, among other things, create the Sable Island national park reserve, and Bill C-61, the offshore health and safety act, which would provide clear rules for occupational health and safety of offshore oil and gas installations.

Earlier I referred to the important work of committees. The Standing Joint Committee on the Scrutiny of Regulations inspired Bill S-12, the incorporation by reference in regulations act. We should see that committee's ideas through by passing this bill. Of course, a quick reading of today's order paper would show that there are yet still more bills before the House of Commons for consideration and passage. All of these measures are important and will improve the lives of Canadians. Each merits consideration and hard work on our part.

In my weekly business statement prior to the constituency week, I extended an offer to the House leaders opposite to work with me to schedule and pass some of the other pieces of legislation currently before the House. I hope that they will respond to my request and put forward at our next weekly meeting productive suggestions for getting things done. Passing today's motion would be a major step toward accomplishing that. As I said in my opening comments, Canadians expect each one of us to come to Ottawa to work hard, vote on bills and get things done.

In closing, I commend this motion to the House and encourage all hon. members to vote for this motion, add a few hours to our day, continue the work of our productive, orderly and hard-working Parliament, and deliver real results for Canadians.

Business of the House

[Peter Van Loan, Conservative, Leader of the Government in the House of Commons]

Mr. Speaker, this afternoon we will continue the debate on today’s opposition motion from the NDP. Pursuant to the rules of the House, time is allocated and there will be a vote after the two-day debate.

Tomorrow we will resume the third reading debate on Bill S-9, the Nuclear Terrorism Act. As I mentioned on Monday, I am optimistic that we will pass that important bill this week.

Should we have extra time on Friday, we will take up Bill C-48, the Technical Tax Amendments Act, 2012, at report stage and third reading.

When we come back from constituency week, I am keen to see the House make a number of accomplishments for Canadians. Allow me to make it clear to the House what the government's priorities are.

Our government will continue to focus on jobs, growth and long-term prosperity. In doing that, we will be working on reforming the temporary foreign worker program to put the interests of Canadians first; implementing tax credits for Canadians who donate to charity and parents who adopt; extending tax credits for Canadians who take care of loved ones in their homes; supporting veterans and their families by improving the balance for determining veterans' benefits; moving closer to equality for Canadians living on reserves through better standards for drinking water, which my friend apparently objects to; giving women on reserves the rights and protections that other Canadian women have had for decades, something to which he also objects; and keeping our streets and communities safer by making real improvements to the witness protection program. We will of course do more.

Before we rise for the summer, we will tackle the bills currently listed on the order paper, as well as any new bills which might get introduced. After Victoria Day, we will give priority consideration to bills that have already been considered by House committees.

For instance, we will look at Bill C-48, which I just mentioned, Bill C-51, the Safer Witnesses Act, Bill C-52, the Fair Rail Freight Service Act, and Bill S-2, the Family Homes on Reserves and Matrimonial Interests or Rights Act, which I understand could be reported back soon.

I look forward also to getting back from committee and passing Bill C-60, , the economic action plan 2013 act, no. 1; Bill S-8, the safe drinking water for first nations act; and Bill C-21, the political loans accountability act.

We have, of course, recently passed Bill C-15, the strengthening military justice in the defence of Canada act, and Bill S-7, the combating terrorism act. Hopefully, tomorrow we will pass Bill S-9, the nuclear terrorism act.

Finally, we will also work toward second reading of several bills including Bill C-12, the safeguarding Canadians' personal information act; Bill C-49, the Canadian museum of history act; Bill C-54, the not criminally responsible reform act; Bill C-56, the combating counterfeit products act; Bill C-57, the safeguarding Canada's seas and skies act; Bill C-61, the offshore health and safety act; Bill S-6, the first nations elections act; Bill S-10, the prohibiting cluster munitions act; Bill S-12, the incorporation by reference in regulations act; Bill S-13, the port state measures agreement implementation act; Bill S-14, the fighting foreign corruption act; Bill S-15, the expansion and conservation of Canada’s national parks act, which establishes Sable Island National Park; and Bill S-17, the tax conventions implementation act, 2013.

I believe and I think most Canadians who send us here expect us to do work and they want to see us vote on these things and get things done. These are constructive measures to help all Canadians and they certainly expect us to do our job and actually get to votes on these matters.

I hope we will be able to make up enough time to take up all of these important bills when we come back, so Canadians can benefit from many parliamentary accomplishments by the members of Parliament they have sent here this spring.

Before taking my seat, let me formally designate, pursuant to Standing Order 81(4)(a), Tuesday, May 21, as the day appointed for the consideration in a committee of the whole of all votes under Natural Resources in the main estimates for the final year ending March 31, 2014. This would be the second of two such evenings following on tonight's proceedings.

[Peter Van Loan, Conservative, Leader of the Government in the House of Commons]

Mr. Speaker, I thank the opposition House leader for his stream-of-consciousness therapy.

Our government, however, is very focused. Our top priority is jobs, growth and long-term prosperity. With that in mind, this afternoon we will continue second reading debate on the cornerstone item of our legislative agenda, which is Bill C-60, the economic action plan 2013 act, no. 1. We will continue this debate tomorrow.

Next Monday, May 6, will be the fourth day of second reading debate on this important job creation bill, and Tuesday May 7 will be the fifth and final day.

Once debate is concluded, the House will have an opportunity to vote on the substantive job creation measures in this bill.

On Wednesday, the House will debate Bill S-8, the safe drinking water for first nations act. This will be the fourth time this bill is debated at second reading so it is my hope and expectation that this bill will come to a vote.

With the vote, there will be another clear choice before the House. Members will be voting to allow for national standards for on-reserve drinking water. This is a question of basic equality. I know the opposition voted against equality for women on reserves when it voted against Bill S-2, matrimonial property on reserves, but I hope they have stopped grasping at excuses to oppose equal treatment for first nations and will now support Bill S-8.

While I am speaking about aboriginal affairs, allow me to take the time to notify the House that I am designating, pursuant to Standing Order 81(4)(a), Thursday, May 9, for consideration in committee of the whole all votes under Indian Affairs and Northern Development in the main estimates for the fiscal year ending March 31, 2014.

On Thursday, we will continue to advance the economic priority of our legislative agenda by debating Bill C-48, the technical tax amendments act, 2012, in the morning. Following question period on Thursday, May 9, we will continue Bill S-9, the nuclear terrorism act at third reading. I understand there is broad support for this bill, so I hope to see it pass swiftly. Then we can move on to other legislation, including: Bill C-49, the Canadian museum of history act; Bill C-51, the safer witnesses act; Bill C-52, the fair rail freight service act; Bill S-10, the prohibiting cluster munitions act; Bill S-12, the incorporation by reference in regulations act; Bill S-13, the coastal fisheries protection act; and Bill S-14, the fighting foreign bribery act.

Finally, Friday, May 10 will be the seventh allotted day, which I understand will be for the NDP.

Corruption of Foreign Public Officials Act

[John Baird, Conservative, Minister of Foreign Affairs]

moved that Bill S-14, an act to amend the Corruption of Foreign Public Officials Act, be read the first time.

(Motion agreed to and bill read the first time)

Message from the Senate

[The Deputy Speaker, Joe Comartin]

I have the honour to inform the House that a message has been received from the Senate informing this House that the Senate has passed Bill S-14, An Act to amend the Corruption of Foreign Public Officials Act, to which the concurrence of the House is desired.