Thank you, Mr. Chairman. Thank you, committee members.
I have some short opening remarks I would like to make regarding the extractive sector transparency measures act. The act is designed to implement Prime Minister Harper's 2013 G-8 commitment to contribute to global anti-corruption efforts by introducing new reporting and transparency obligations to the extractive sector.
In 2013 G-8 leaders noted that in many developing countries there's a huge potential for economic growth based on abundant natural resources reserves. However, the lack of strong systems of transparency in the management of natural resources in some resource-rich countries has often allowed revenues to be misallocated or diverted. Raising global standards of transparency will contribute to deterrence of corruption and other illicit activities.
In Canada, resource development is a major economic driver. Canada's mining, oil, and gas sectors directly and indirectly support about 10% of Canada's gross domestic product and about 625,000 jobs. Globally, Canada's industry also has a significant impact. Canadian mining companies now have mining interests worth nearly $150 billion in over 100 countries around the world. The stock of investment by Canadian oil and gas companies abroad was about $75 billion in 2013.
Domestic implementation of these reporting requirements will brand Canada as a responsible resource developer and contribute to the emergence of a global standard. In an effort to ensure a level playing field for Canada's extractive sector, the federal requirements are broadly aligned with those in the United States and the European Union, including the reporting requirement and the requirement to break down reported payments by project. The act also provides for authority to make regulations that are strictly tailored to ensure that Canada's standards remain aligned with the global standard.
To avoid red tape, the act allows industry to comply with the act by submitting the same report they have submitted to another jurisdiction with reporting requirements that the minister has determined to be an acceptable substitute. Further, the enforcement measures are designed to address non-compliance with the obligations under the act. Non-compliant entities can work with the minister to take corrective measures to meet their obligations under the act. Entities that choose to remain non-compliant risk prosecution and a fine of up to $250,000 per offence committed.
Since July 2013, the government has engaged provincial, territorial, municipal, and aboriginal governments and organizations, industry, and civil society on this initiative. We have sought feedback on key reporting requirements and implementation issues and also kept stakeholders informed on the government's progress in establishing the extractive reporting standards.
Recently at the August 2014 Energy and Mines Ministers' Conference, all provincial and territorial governments pledged support for mandatory reporting standards, and agreed to continue working collaboratively in the interests of implementing mandatory reporting standards for the extractive sector.
Also at the Energy and Mines Ministers' Conference, the government announced that it will defer the obligation for industry to report on payments to aboriginal governments for two years following the coming into force of the act. During this period, the government will continue to engage with aboriginal governments and communities to discuss how the standards apply to the industry and their relevance to aboriginal governments and communities. Engagement will also continue with stakeholders on the development of the template and industry guidance for reporting payments on a project basis that will be required to comply with the act.
This concludes my remarks.