Conflict Minerals Act

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

This bill is from the 41st Parliament, 2nd session, which ended in August 2015.

Sponsor

Paul Dewar  NDP

Introduced as a private member’s bill. (These don’t often become law.)

Status

Defeated, as of Sept. 24, 2014
(This bill did not become law.)

Summary

This is from the published bill.

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

Similar bills

C-486 (41st Parliament, 1st session) Conflict Minerals Act
C-571 (40th Parliament, 3rd session) Trade in Conflict Minerals Act

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Bill numbers are reused for different bills each new session. Perhaps you were looking for one of these other C-486s:

C-486 (2010) Treaties Act
C-486 (2009) Treaties Act
C-486 (2007) An Act to amend the Criminal code (protection from sexual interference)
C-486 (2004) Constitution Act, 2004 (Representation)

Votes

Sept. 24, 2014 Failed That the Bill be now read a second time and referred to the Standing Committee on Foreign Affairs and International Development.

Conflict MineralsPetitionsRoutine Proceedings

September 24th, 2014 / 3:25 p.m.


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NDP

Paul Dewar NDP Ottawa Centre, ON

Mr. Speaker, today I have petitions from right across the country, but primarily from Calgary. These petitioners are asking the government to deal with the horrific conflict in the Democratic Republic of Congo, where 5.4 million people have died since 1998. The petitioners want the government to enact Bill C-486 to stop the revenues coming from conflict minerals and the trade therein. They are also asking that the government support Bill C-486, which, as I noted today in question period, is being supported by the Mining Association of Canada.

Mining IndustryOral Questions

September 24th, 2014 / 3:10 p.m.


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Calgary East Alberta

Conservative

Deepak Obhrai ConservativeParliamentary Secretary to the Minister of Foreign Affairs and for International Human Rights

Mr. Speaker, our government has long been committed to combatting conflict minerals and is always looking for ways to improve our efforts. Unfortunately, Bill C-486 is fundamentally flawed, and instead of making tangible progress on the issue, it stigmatizes the region in Africa and creates burdens and red tape that would only serve to harm the people of the Great Lakes. Canada will continue to work with the Great Lakes region and the Canadian industry to increase transparency and accountability in resource development.

Conflict MineralsPetitionsRoutine Proceedings

September 22nd, 2014 / 3:15 p.m.


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Liberal

Frank Valeriote Liberal Guelph, ON

Mr. Speaker, I rise to present a petition from residents in and around Guelph calling on the Government of Canada to end trade in conflict minerals by adopting Bill C-486, the conflict minerals act.

The petitioners call on the government to adopt the hon. member for Ottawa Centre's bill as a means to end conflict in places like the Democratic Republic of Congo, where over 5 million deaths and untold suffering are being financed by illegally mined minerals, by ending trade in conflict minerals.

Conflict MineralsPetitionsRoutine Proceedings

September 22nd, 2014 / 3:10 p.m.


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NDP

Paul Dewar NDP Ottawa Centre, ON

Mr. Speaker, I have petitions from Canadians from right across the country.

The petitioners want the Conservative government to join with other governments to stop the spread of rape as a weapon of war in the Congo by dealing with conflict minerals.

They ask that all parliamentarians get behind my bill, Bill C-486, to stop the revenues that go to the militias that do horrendous things in the eastern Congo. They also ask that we support those who are affected by gender violence.

Conflict MineralsStatements By Members

September 16th, 2014 / 2 p.m.


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NDP

Paul Dewar NDP Ottawa Centre, ON

Mr. Speaker, more than five million people have died as a result of the war in the Congo. The conflict is fueled and funded by minerals we use in our cell phones, computers, jet engines, and jewellery. If we stop buying these minerals from armed groups in the Congo, we can end the war, just like we did with blood diamonds. That is why I proposed Bill C-486, the conflict minerals act, now approaching a vote at second reading. That is why thousands of Canadians have signed petitions and written letters to me and other parliamentarians supporting this bill. That is why a grassroots network has developed on the issue, bringing together human rights advocates, student groups, and environmental organizations.

Tomorrow night, for 486 minutes, Canadians across the country will take part in a national day of action for this Just Minerals campaign by turning off their cell phones to show solidarity and create awareness. I invite all members and all Canadians to join in this action tomorrow night. Together, let us take conflict out of Canadian homes.

Conflict MineralsPetitionsRoutine Proceedings

June 12th, 2014 / 10:55 a.m.


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NDP

Paul Dewar NDP Ottawa Centre, ON

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

Corporate Social Responsibility of Extractive Corporations Outside Canada ActPrivate Members' Business

June 3rd, 2014 / 6:25 p.m.


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NDP

Charmaine Borg NDP Terrebonne—Blainville, QC

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

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

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

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

Corporate Social Responsibility of Extractive Corporations Outside Canada ActPrivate Members' Business

June 3rd, 2014 / 6:05 p.m.


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NDP

Paul Dewar NDP Ottawa Centre, ON

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Conflict MineralsPetitionsRoutine Proceedings

May 26th, 2014 / 5:15 p.m.


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NDP

Paul Dewar NDP Ottawa Centre, ON

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

Conflict MineralsPetitionsRoutine Proceedings

May 16th, 2014 / 12:15 p.m.


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NDP

Charmaine Borg NDP Terrebonne—Blainville, QC

Mr. Speaker, the second petition calls on the House to support Bill C-486, which I had the honour of supporting.

It calls on all members of the House to support this bill, which will put an end to conflict minerals.

Conflict MineralsPetitionsRoutine Proceedings

May 2nd, 2014 / 12:10 p.m.


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NDP

Paul Dewar NDP Ottawa Centre, ON

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

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

Fighting Foreign Corruption ActGovernment Orders

June 18th, 2013 / 1:10 p.m.


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NDP

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.

Fighting Foreign Corruption ActGovernment Orders

June 18th, 2013 / 12:40 p.m.


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NDP

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.

Fighting Foreign Corruption ActGovernment Orders

June 18th, 2013 / 12:30 p.m.


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NDP

Matthew Kellway NDP Beaches—East York, ON

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

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

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

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

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

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

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

Fighting Foreign Corruption ActGovernment Orders

June 18th, 2013 / 11:50 a.m.


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NDP

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.