Mr. Speaker, I am very pleased to rise today to speak on the motion put forward by my colleague, the hon. member for Timiskaming-French River, which urges the government to consider implementing incentives to promote mining exploration and development in Canada.
Canada extends over some 10 million square kilometres and is one of the richest countries in the world in terms of natural resources. Its mining industry was ranked amongst the best in the world in many areas of mineral production. Mining has always played a major role in the Canadian economy, which is hardly surprising, since Canada is one of the biggest producers and exporters of non-fuel mineral resources.
Statistics for 1992 show that the non-fuel mineral resources industry accounted for a little over 4 per cent of the Gross Domestic Product and almost 3 per cent of employment. Also, these statistics indicate that the total value of the non-fuel mineral resources production for 1992 reach $14.6 billion, which is 41 per cent of overall mineral production in Canada. It is important, also, to remember that Canada produces a little over 60 minerals. Except for phosphorus, manganese, bauxite and chrome, our country can meet its own needs in terms of minerals.
Statistics on exploration also speak volumes. Non-fuel mineral resources exports reached $23 billion, a little over 15 per cent of total exports for Canada. During the same period, the value of our non-fuel mineral resources imports was estimated at $13.2 billion, for a trade surplus of over $9.8 billion. All these statistics reflect the outstanding progress made by the Canadian mining industry.
Technological innovation also has something to do with the boom enjoyed by this industry. However, the industry did not escape from the upheaval caused by the recession during the late 1980s and the early 1990s. Mining was hard hit during this period. But since 1993, it is recovering nicely. All of us in this House recognize that several irritants are still preventing Canada's mining industry from hitting its stride.
This is why I wholeheartedly support the motion put forward by the hon. member for Timiskaming-French River, whom I wish to congratulate for this excellent initiative, especially since my hon. colleague showed, in the eloquent speech he made when he introduced his motion, that he is very much aware of the current codition of federal finances.
This motion has nothing to do with tax breaks, grants, or subsidies. Its only goal is to bring the government to consider measures that would not cost a lot of money to the Canadian taxpayer but will go a long way to ensure a brighter future to the Canadian mining industry and to the mining communities across Canada.
In its report of December 1994 entitled "Lifting Canadian Mining Off the Rocks", the House of Commons Standing Committee on Natural Resources proposed nine recommendations. Some of those recommendations would cost money if implemented, while others would emphasize collaboration and partnership that would alleviate some problems for the industry. Here are some of the recommendations.
Recommendation number three: "That the federal government introduce a mineral exploration incentive by modifying the Income Tax Act to incorporate a change in the adjusted cost base of flow through shares from a value of zero to the actual cost of the shares, that this new fiscal measure incorporate a cap on a given company's take-up of the tax benefit, and that the new incentive vehicle be in place for a maximum duration of five years".
Recommendation number four: "That in order to enhance the effectiveness of exploration work financed by means of flow through shares, the federal government enable the exploration activity funded through such shares to be carried out over a period of one full year after financing".
Recommendation number seven: "That once initial steps have been taken to improve the investment climate in Canadian mining, the federal government, its provincial and territorial counterparts, and the domestic mining industry develop through consultation an integrated approach to communicate the positive features of the Canadian mining sector to potential investors".
In May 1995 the Minister of Natural Resources responded very favourably to the report of the Standing Committee on Natural Resources on mining. She stated: "The Government of Canada remains committed to fostering a modern environmentally respon-
sible mining industry that contributes significantly to Canada's economic growth and job creation. We are committed to ensuring in conjunction with provincial governments and the Canadian mining industry that there is a positive environment for investment in mineral exploration in Canada".
A month earlier, in Miami, Florida, at the Investing in the Americas Conference, the Minister of Natural Resources stated in her speech to the conference: "The Government of Canada recognizes the importance of the mining industry, its contribution to economic growth and jobs, and the challenges it faces".
During the last Canadian federal election the Liberal Party of Canada was the only political party to release a detailed policy outlining its commitment to the mining industry. This commitment has not wavered. We are proud of our mining industry and we believe its present and future prospects are excellent.
From the statements made by the Minister of Natural Resources, one can only conclude that the federal government is acting in good faith in this matter and, particularly, that it is prepared to help the mining industry, in co-operation with all the other stakeholders.
It even seems fairly clear that our government is already responding to the request made in today's motion, with the intention of keeping government initiatives in the mining industry in line with the present fiscal situation.
This approach was clearly expressed in the response the government gave to the fifth report of the Standing Committe on Natural Resources entitled "Lifting Canadian Mining off the Rocks", which was tabled in the House by the hon. Anne McLellan, Minister of Natural Resources, on May 8, and I quote: "While mining remains a priority of this government, budgetary conditions also require that new ways be sought to deliver quality programs and services at a lower cost. To this end, the federal approach will be to exercise a role that complements that of the provinces and provides a national co-ordination capacity, where required, so that government policies and strategies have the most favourable impact on mining in Canada".
Heads of the mining industry in Canada are quite aware that the federal government cannot do it all on its own and offer a miracle cure for the ills of the mining industry. However, they can count on the federal government's cooperation and total support.
Already in 1994, in its action plan entitled Building a More Innovative Economy , the federal government had announced its intention to implement a number of measures concerning the regulations governing the climate for investors. Improvements are being considered in the following areas: decisions regarding land use; definition of garbage and recycling; regulatory systems north of the 60th parallel; better evaluation of environmental and economic factors in the review of the impact of new regulations-