Mr. Speaker, I am pleased to address the House today on Motion 292, which would require the government to consider a new program of incentives to encourage exploration and development in Canada. In part the question is the definition of incentives and what that actually means.
[Translation]
I would like to thank my colleague, the hon. member for Timaskaming-French River, for having brought these important matters to the attention of the House.
Mining makes an enormous contribution to the Canadian economy and way of life, representing a vital source of employment in more than 115 communities throughout the country. It provides direct jobs for more than 300,000 Canadians and contributes more than $20 billion to the economy every year.
Moreover, mining activities have a significant indirect effect on the Canadian economy, from the small local supplier to the specialized financial institution in Toronto, Montreal, or Vancouver. For every job created in the mining industry an additional job is indirectly created in other sectors of the Canadian economy.
The Canadian mining industry is known throughout the world for its leadership in developing and applying state of the art exploration and mining techniques and technologies. We are very proud of the expertise that was developed here in Canada to take full advantage of our rich mineral endowment.
The government appreciates the key role of mining to our economic well-being. However, we are also aware of the challenges the industry has been facing, especially from increased global competition and mineral investment. We must meet these challenges by working with all the mining stakeholders to sustain the vitality of the industry and provide conditions that will foster its growth.
In our opinion, the best way to support and encourage the mining sector is to reduce the level of long term structural impediments to mineral investment. Many of these impediments were identified by the Whitehorse Mining Initiative, which saw the federal government, along with the representatives of industry, provincial governments, environmental groups, labour unions, and aboriginal organizations, come to the table to work together. A consensus was reached and the WMI leadership council accord was signed in September 1994, which outlines agreed upon principles and goals to guide the development of mining in this country.
To help develop an action plan to address the WMI issues that fall within the jurisdiction of the federal government, the Minister of Natural Resources established a private sector ministerial advisory committee. One of its first tasks is to provide commentary and advice on the sustainable development of mineral, mines, and metals issues paper the minister released in September in Vancouver. This release fulfils a promise the minister made. After discussion on the paper, the minister will work with the stakeholders to develop a mineral and metal policy for consideration by cabinet.
To address the most fundamental industry concerns we introduced a measure in the 1994 budget allowing a deduction for mine reclamation trust fund contributions. Our commitment to mineral development was also reaffirmed when the mining sector was identified as one of the six key sectors where the government wants to see significant improvement to the regulatory regime. Furthermore, our natural resources standing committee is currently examining this very issue.
Some specific areas where we are working to make tangible long term improvements include administration of the Fisheries Act, land use and related decision making, the definition of waste, regulatory regimes north of 60, regulatory impact analysis, and toxic management policy and practices. Important improvements on issues of overlap and duplication could also be achieved through various initiatives to harmonize federal and provincial regulatory regimes.
On October 19 Natural Resources Canada and the Mining Association of Canada co-sponsored a seminar on regulatory streamlining in order to help identify concrete ways of accelerating progress on these issues. In support of the same objectives for jobs and new investments, NR Canada has been marketing Canada's mineral opportunities in Canada and abroad in an effort to attract much needed capital investment for our mineral industry.
The Minister of Natural Resources is a strong champion of the Canadian mining industry. Earlier this year she participated in the international "Investing in the Americas" conference, where she vigorously promoted Canada as an attractive country for mineral investment.
These efforts are very important, because investments are essential to ensure the industry's future.
We know that Canada's geography and geology are attractive. Exploration levels have recently started to recover, thus reflecting increased confidence in Canada as a mining country.
Of course the 1995 budget must be counted among our efforts to help solve the problems of the mining industry. By forcefully proceeding to put our economic house in order, we are sending a clear signal that we want to regain control of our country's finances. The measures implemented in the last budget will result in more favourable investment conditions in Canada, which will certainly benefit the mining industry.
The government remains committed to a prosperous mining sector in Canada and promotes actions that are consistent with our budgetary objectives and the efficiency of the federation. Mining, more than most industries, is global. The influence that Natural Resources Canada exercises in national and international fora makes a significant difference to the sustainable development and competitiveness of the industry. Our science and technology and our policy investments are cost-effective and bring benefits to Canada in all regions.
The initiatives I have discussed are fundamental critical steps that will result in greater levels of certainty for the mining investor. This government understands that reality. We will continue to work in partnership with provinces and territories to ensure that our geological potential is fully realized and Canadians have an opportunity to benefit from a strong mining industry.
In conclusion, this government appreciates the important contribution the mining industry makes to our country's job creation and economic growth. We understand the challenges that face the industry today. This government is following a policy agenda to put in place an attractive investment climate that encourages and supports a prosperous mining industry committed to sustainable development.