Thank you, Mr. Chair, for inviting me to testify.
I am pleased, of course, to be able to share with the committee the results of two and a half years of work in the Senate on Bill S‑211 and the lessons learned.
As my colleague John McKay told you, we've consulted many stakeholders, including in the business community, human rights organizations and key players abroad. As you know, a bill on this topic has been introduced three times, which has allowed us to improve this one significantly.
We'll begin with the most important thing: the Canadian government will also be subject to the reporting requirement. That encompasses departments and some one hundred federal institutions. The Canadian government must have best practices. We saw this last year, when the government signed a $220‑million contract with a Malaysian company suspected of using forced labour to manufacture medical gloves.
We also defined more clearly what constitutes child labour under the law. We did not want to target only the worst forms of child labour, but to bring the bill in line with the International Labour Organization's definition, which includes work that keeps children out of school.
Reports on forced labour will have to be approved by the company's board of directors, similar to financial reports. This change follows the contemporary trend of requiring the same level of rigour for corporate financial and non-financial disclosures. In addition, federally regulated companies will be required to report on their efforts to combat modern slavery in their annual reports. That's a first.
We have also strengthened and harmonized the elements of the reports, including requiring that due diligence processes and remediation plans be included.
As you know, Bill S‑211 proposes a transparency approach, like the U.K. and Australian legislation, but has more teeth, because it imposes penalties of up to $250,000 if reports contain false or misleading information.
During Senate consideration, some asked why we didn't go further to combat forced labour more aggressively. These stakeholders wanted legislation that required companies to conduct due diligence on their operations and held them accountable for any human rights violations in their supply chain. I, personally, have no objection in principle to this approach. Whether it is a transparency law or a due diligence law, the objectives are the same: to limit and, if possible, eradicate forced and child labour. The differences are more in the area of political pragmatism.
In two years, I did not feel that there was sufficient consensus in the Senate and among stakeholders to pass a much tougher law in Canada. I therefore favoured a staged approach—a legislative compromise that would finally allow us to move forward, given the inexcusable backlog that Canada has in the fight against modern slavery. Bill S‑211 is an important first step, but no one believes that it alone will solve the problem of modern slavery, which is the product of a combination of causes, including poverty, inequality and insecurity.
It is true that countries such as France and Germany have chosen a more punitive model of law, which provides recourse against companies that have not done their due diligence. However, it should be noted that, in France, for example, only very large companies—those with over 5,000 employees—are targeted. Only 265 companies are affected. In comparison, Bill S‑211 would affect approximately 3,000 large companies and part of the 20,000 medium-sized companies in the country.
In short, the choice is clear: we can be very severe and target only a very limited number of companies, or we can try to gradually change the mentalities of companies where the risks of forced labour in their supply chains are greater, that is, medium-sized companies.
As with any complex situation, it is an imperfect choice, but one that allows us to start somewhere and stop being silent accomplices to these iniquitous human rights violations. I am talking about children working in mines, fields and plantations instead of going to school; women and men enslaved to make our clothes, our machines and our cheap food.
Members of Parliament can make this bill even better. Considering the importance that Canada places on defending human rights in its speeches, it is time to act, so that our laws finally reflect our words.
Thank you.