Evidence of meeting #33 for International Trade in the 39th Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was companies.
A recording is available from Parliament.
Director General, North America Trade Policy, Department of Foreign Affairs and International Trade
With respect to the EDC program, the government is paying its own money to the Canadian companies in advance of the money from the United States, to expedite those companies receiving that money so that it can be used by them for whatever they want to use it for.
Bloc
Guy André Bloc Berthier—Maskinongé, QC
What is the deadline for refunding companies? I would like to know the deadline. When will companies get a refund from EDC?
Director General, North America Trade Policy, Department of Foreign Affairs and International Trade
The companies will receive the money from EDC anywhere between four and six weeks after they've completed the documentation EDC requires.
Bloc
Guy André Bloc Berthier—Maskinongé, QC
When do you think that companies will have completed the paper work?
Director General, North America Trade Policy, Department of Foreign Affairs and International Trade
I think we're going to see completion of paperwork starting any time now, and into the next month or two. So there'll be not just one payment by EDC to everybody; there will be tranches done. As companies complete the paperwork, they will be refunded their moneys.
Bloc
Guy André Bloc Berthier—Maskinongé, QC
November 30th is the deadline and it might be six weeks later. Then, companies might get their refund in the beginning of January 2007 at the latest? Is that right?
Director General, North America Trade Policy, Department of Foreign Affairs and International Trade
Some companies might see their money conceivably any time soon with respect to.... As soon as they've registered for EDC, and that's even before the implementation of the agreement, then the work is already started with their documentation.
Moneys could therefore be flowing any time, theoretically, from today until whenever the documentation is finished by the last company that allows EDC to pay. But I would expect the bulk to be paid in the next four to six weeks.
Conservative
Conservative
Dick Harris Conservative Cariboo—Prince George, BC
I would like to clarify something. Is it correct, however, that any refunding of penalties that have been paid cannot start until this piece of legislation is complete?
Director General, North America Trade Policy, Department of Foreign Affairs and International Trade
That's right.
Conservative
Dick Harris Conservative Cariboo—Prince George, BC
So it would probably be in the best interest of the mills that are anticipating a refund, a return of penalties, that this piece of the enabling legislation be expedited as quickly as possible, because it holds up the refund process.
Director General, North America Trade Policy, Department of Foreign Affairs and International Trade
I wouldn't want to anticipate each company's consideration of which way to go—whether they go the EDC or the special charge route.
Conservative
Dick Harris Conservative Cariboo—Prince George, BC
I'm speaking of the work we're doing now. I mean, this enabling legislation has to be in place to make all of this work.
Director General, North America Trade Policy, Department of Foreign Affairs and International Trade
With respect to the special charge, there is reference, as I think we discussed at the last meeting, that it has to be in place before a special charge can be collected.
Conservative
Dick Harris Conservative Cariboo—Prince George, BC
Right. And just to get back to Mr. André's point, and I understand what he's trying to think about, there was a date when EDC started receiving the paperwork, and companies—correct me if I'm wrong—that practise due diligence in how they run their business would be the ones that would be scrambling to get their papers in on time, so that they'll get their money back in a reasonable time. Companies that didn't practise due diligence, that maybe were a little slow or a little sloppy in getting it done, are going to be the ones that get it later.
But EDC has said, then, that within a time period of four to six weeks after completion of the papers, they would expect the funds would start rolling to those who had completed paperwork?
Director General, North America Trade Policy, Department of Foreign Affairs and International Trade
Yes. I might add that I think it's EDC's intention not to wait for that timeframe to begin refunding money. When they have completed documentation to allow the refund of money, the process will begin as there are companies to refund to.
As we've spoken about, the theoretical time for that is any time from now up to when the last company finishes the documentation. But I would realistically expect interest from companies, given as it has been identified, to get the documentation in so as to get the refund.
We will probably see a lot of money being refunded over the next four to six weeks. But that's speculation, because it's dependent on the companies' actions concerning the finalization of documentation.
Conservative
The Chair Conservative Leon Benoit
Okay. Are there any other questions from the government side?
Mr. Julian.
NDP
Peter Julian NDP Burnaby—New Westminster, BC
Thank you, Mr. Chair.
I'd like to clarify that it's not the government's own money. It's taxpayers' money that would be used for this little shell game of reimbursing companies with taxpayers' money, because we won't be getting money from the United States for many months.
The other thing we established on Tuesday that's important to clarify is there is no provision in Bill C-24 for what you've mentioned, Mr. Robertson. It may be a promise to the government, but we're dealing with the hard facts of Bill C-24.
In Bill C-24, the situation that Monsieur André speaks of is very possible. We've established that it's very possible. There are no provisions in this legislation to ensure that won't happen. In fact, the legislation is very clear.
Conservative
Conservative
Conservative
Dick Harris Conservative Cariboo—Prince George, BC
It's my understanding that under the whole process, there is under the EDC repayment plan—
Conservative
NDP
Peter Julian NDP Burnaby—New Westminster, BC
You'll have your opportunity, Mr. Harris, to speak when it's your turn. But don't interrupt me when it's my turn.
Thank you.
Conservative
Dick Harris Conservative Cariboo—Prince George, BC
Thank you, Mr. Julian. I appreciate that reminder.