Thank you.
Canadian mining has a significant international presence, as Lisa just mentioned, with 650 companies in almost 100 countries. However, we are no longer the world's top mining country. Indeed, Australia's two biggest companies exceed the net asset value of the entire Canadian industry, while China's control of the production of many mineral commodities is well known.
However, Canada's role as a global leader in sustainable mining and responsible business practices continues to grow. Central to this work is a program that's been mentioned already, our towards sustainable mining initiative, a globally recognized tool for driving responsible behaviour in our sector. Other countries have taken note of our leadership, and this program is now in the process of being implemented in Finland, Norway, Spain, Botswana, Brazil, Argentina, the Philippines and Australia. We spoke to the Colombians just this morning, and they intend to do the same.
Turning now to the CORE, a central focus has been on the CORE's powers, specifically whether the power to compel evidence and testimony would make for a more effective office. We believe that such an approach, while seemingly strong, would more likely lead to undesirable outcomes for all parties. We have based this belief on the experience and advice of professionals who have worked in this field, such as Meg Taylor, former World Bank compliance adviser/ombudsman, or the CAO.
In the first 10-year review report published by the CAO, Ms. Taylor found that every party wanted a quick judgment but would only accept the findings if the CAO said that they were right. When a judgment was made, such as in the case of the Marlin mine in Guatemala, the CAO was drawn into the conflict, losing its status as a neutral party. The end result was that the cycle of conflict continued. Ms. Taylor further found that her mechanism was much more effective if it focused on how to change the dynamics of the conflict rather than imposing judgment.
If one's interest is to reduce conflicts, we believe joint fact-finding and other collaborative approaches will be more effective. We have long supported the use of penalties, such as the withdrawal of trade commissioner support or access to government financial support, should companies not co-operate in these circumstances.
We believe an ombudsperson with the powers to compel would lead all parties to lawyer up and disputes to be more protracted and conflictual. There are also issues of extraterritoriality that have never been honestly aired or considered.
A few years ago, former minister Jim Carr asked Barbara McIsaac to advise on whether the office as currently constituted had the power to compel, and if not, what would be required to provide such powers.
During the last several weeks of this study, the legal advice provided by Ms. McIsaac has been raised several times and has been characterized as strongly supporting the granting of such powers, but this is simply not accurate.
Ms. McIsaac clearly states that whether the CORE should have these powers is a question of policy, while her mandate was to assess whether the powers could be granted and what implications that might have.
Ms. McIsaac also states that she was struck by the fact that there was a “consistent view”—between NGOs and industry—“that the most important consideration should be that, at the end of the day, the process...should result in real change on the ground.... They differed on how that would best be achieved.”
Ms. McIsaac says that without a way to compel, the CORE's effectiveness may be compromised, but goes on to say, “On the other hand a process which includes powers to compel runs the risk of becoming overly confrontational and caught up in procedural wrangling and court challenges.”
Finally, she observes that there is no way to overcome the extraterritorial limitations of these powers. They could not be used to compel evidence and testimony of local communities, independent suppliers and contractors or state actors. The recent recommendation by this committee to increase the powers of the CORE in the context of supply chains into China makes me wonder how the ombudsperson would obtain the evidence of Chinese nationals to determine the existence of forced labour in the manufacturing of garments and appliances by Canadian companies.
The office should be given a chance to demonstrate whether it can be effective. If further changes are to be considered, they should be done via a transparent process that allows all stakeholders to equally express their views, with equal opportunity to consider proposed government policy options, including legal opinions.
Finally, there has been much talk about the sectors the CORE applies to. Global Affairs Canada is establishing a new responsible business conduct strategy that recognizes the need to expand these kinds of mechanisms to all Canadian businesses operating abroad.
The subcommittee's report on the human rights situation of the Uighurs supports this because, of the three sectors under the CORE's mandate—mining, oil and gas, and garments—only Canadian garment companies have a presence in the region. However, other Canadian businesses from sectors outside the CORE are present, such as those that sell household appliances or those in the solar and renewable energy sectors.
Thank you. We look forward to your questions.