Mr. Speaker, I am pleased to have an opportunity to speak today in support of Motion No. 292, especially after the fairy tales I have been hearing from the member of the Bloc.
During my seven years as a member I have had an opportunity to meet various sectors of the mining industry, people involved in the mining industry on a daily basis. The main message they have been giving governments over these years is that governments must make a solid commitment not only to keeping the mining industry in Canada but also to making it prosper.
The motion before us today proposes the government consider implementing a new program of mining incentives which would encourage exploration and development in Canada. Although most people equate these incentives with taxes and grants, this is not necessarily the case.
I commend the hon. member for Timiskaming-French River for putting this motion forward. He has been very supportive of the mining industry. As he previously stated in the House, all the mining industry wants is a level playing field and a tax system competitive with the rest of the world and competitive internationally. In order to do this it is essential to streamline government procedures and to provide the mining industry with a single window approach to approvals.
The parliamentary secretary will be speaking after I finish. I am sure he will bring us up to date on how the minister is moving in these areas.
Why is this motion so important to Canadians? It is important because we are being asked to consider new initiatives, initiatives which previous governments did not feel were necessary.
When driving through Hagersville or Caledonia in my riding the first things we see as we approach these communities are the shafts of the gypsum mines. They support the gypsum plants which produce gypsum board which is shipped throughout North America. These communities rely on the mines, as do small communities in remote and rural areas all across the country. For visitors these mines show the importance of mining to the economic and social well-being of the country.
There has been a progressive decline in investment, employment and mining exploration in Canada over the last ten years. Between 1990 and 1993, 20,000 jobs were lost in the Canadian mining industry. Taking into consideration that mining provides 400,000 direct and indirect jobs in Canada, that number is quite substantial.
There are approximately 150 communities across Canada which depend on mining for their livelihood. When we factor in the number of businesses and the family members who buy goods from the stores and businesses, we are talking close to one million Canadians depending on this industry, a big industry in Canada.
We are also talking about an industry which pays some of the highest industrial wages in Canada: $847 per week. Most of these wages are earned in rural and isolated communities across the country. They provide the infrastructure in many places which keeps rural Canada together.
Between 1986 and 1991 Canada failed to attract a single new mining project with capital of more than $250 million. By comparison, Latin America acquired five such contracts. Likewise, from 1991 to 1992 more than 150 companies worldwide reduced expenditures in Canadian mining projects by 30 per cent, from $430 million to $302 million.
We need to look at why these investors are no longer selecting Canada and we must move to provide solutions to the problem. Why are they going to South America? Why are they going to Southeast Asia? The common feeling is it must be because of the environmental differences. I do not think that is the case. That may be a small component of it but more and more it is a direct result of government red tape.
We have three and in some areas four different levels of government. These companies have to go through an enormous amount of red tape to get anything done. It should be a primary role of anybody looking at solutions to the problem to deal with the whole question of red tape.
In 1994 the total contribution to the Canadian economy from mining equalled $19.1 billion. We must also remember this is a cyclical industry; it has ups and downs. In 1992 and 1993 alone 44 Canadian mines closed while 22 opened. We can see the trend is not in the right direction.
The requests that have been put forward by Keep Mining in Canada are not only logical but they are very plausible and workable. The Keep Mining in Canada campaign, supported by the industry, has laid out 10 reasonable points that it feels, if achieved, would help its industry.
The Standing Committee on Natural Resources when chaired by the member for Kenora-Rainy River conducted extensive hearings with all the stakeholders which resulted in the setting out of nine key recommendations committee members felt that if followed through on would help the industry.
They talked about streamlining the federal-provincial environmental regulations, which only makes sense and I know the Minister of the Environment is working in that area now; implementing an appropriate incentive to stimulate grassroots mineral exploration, and I know some hon. members do that sometimes as well; changing the tax laws on mine reclamation funding; establishing processes for land use planning that respect mineral tenure and ensure both the protection of Canada's heritage and access to the mineral resource development. We have to be able to balance those two. I know the parliamentary secretary will be happy to tell us following my speech how the minister is working in that area.
Overlapping jurisdictions also have a negative impact on investors. Much time and money is spent by companies filling out separate forms for either municipal, provincial or federal levels of government. They always seem to have different guidelines. These companies have to jump through a number of hoops. Surely our
governments can work together and come up with a single window and a single set of regulations which these companies can follow.
Canada also must implement an appropriate incentive to stimulate grassroots mineral exploration. By improving the tax laws and reclamation funding we would be promoting good environmental management. I know the member for Davenport wants to talk about that a little later.
The taxation of money put into trust by a company to meet future demands for mine reclamation should definitely be one of the items the government should look at. I am sure the member for Davenport will have something to say about that.
The last item I want to consider today in my last few minutes is the topic of establishing a process for land use planning that respect mineral tenure to ensure both the protection of Canada's natural heritage and access to mineral resource development. Mining is part of our heritage and we must ensure that it is accessible and that its terms can be met.
A commitment to supporting the mining industry does not translate into excess money being spent. Many incentives can be implemented that are not costly but which would encourage exploration and development. I talked about a few of these incentives in my speech. I urge anyone who seriously considers what is being voted on today to take a look at this. This is a votable item. It is a serious item. It is serious in the sense that it helps our program to develop and create jobs in this country.
We are voting today on the very survival of the mining industry and the demise of the communities that mining supports. Mining has always been a very important part of our heritage and I hope we will keep it.