Madam Speaker, it is with great pleasure that I present the government's position on Bill C-263 tabled by the hon. member for Okanagan-Similkameen-Merritt. I will be speaking to this House about the International Development Research Centre, or IDRC as it is better known, and why it is and should remain exempt from the Financial Administration Act, or the FAA.
It is with great pride that I tell you about this well respected Canadian organization in true Canadian form. It is one of our institutions that is better known outside this country than it is by the taxpayers who support it.
IDRC was the first such institution in the world. Lester B. Pearson, a strong proponent of IDRC, was named as its first chairman. The centre was then copied in Sweden, set up as SAREC in 1975, and in the U.S.A., Australia, Germany and the Netherlands.
The debates here and in the Senate showed there was strong agreement that IDRC should represent a new approach to relations with developing countries. The idea of the centre was to bring together Canadian and foreign experts on the problems of developing economies.
During second reading the Hon. Mitchell Sharp, well known to everyone in Canada, who was then Secretary of State for External Affairs, pointed out that the centre would be "a Canadian institution with an important international dimension. Both the board and staff will include specially qualified people from various parts of the world, including the developing countries. The centre will be structured so as to provide the best possible environment for creativity and problem solving".
Therein lies the reason why IDRC is not an agent of Her Majesty. Canadians must form the majority of its board members but the remainder is made up of prominent residents of developing countries. The current board members include Sir Sridath Ramphal, former Secretary-General of the Commonwealth, and Dr. Miguel de la Madrid, former President of Mexico. It would be very difficult for non-Canadian governors to serve, without a conflict of allegiance, an institution which was an agent of Her Majesty.
The importance of having staff from outside Canada is the reason the employees are not members of the public service. To this date the centre's staff comprises many scientists from developing countries. These bring to the centre's work a unique knowledge and appreciation of local conditions which is essential to finding practical and useful results. If its staff were to join the public service, it would become extremely difficult to recruit scientists in developing countries.
Now we come to the thrust of Bill C-263, the question of IDRC's exemption from the FAA. When the centre was created the parliamentary subcommittee reviewing the bill noted in its report that there was concern that there be "a reasonable measure of accountability for the use of public funds". At the same time it was recognized that "an essential prerequisite for
such an institution is that it be fully free to exercise purely professional standards of prominence and integrity".
The report went on to say that "constant vigilance will be required to protect the independence and integrity of the centre. The object will be advanced by the diversification of the sources of financial support and this should be a high priority for the governors".
Throughout its existence, IDRC has used its exemption from the FAA to enable it to seek financial support from diverse sources, something which it has had some success in doing. However in the current climate of government fiscal restraint, IDRC has made it a priority within the centre to reduce its dependency on the public purse by raising and leveraging resources from organizations outside Canada: multilateral and bilateral institutions and private not for profit foundations. Many of these, because of their mandates, would be unable to provide funds to the receiver general of a developed country.
In other words, by putting IDRC under the FAA which the member wants to do in his bill, we would make it more reliant on government funding and limit its ability to diversify its revenue resources. I am sure this was not the intention of my esteemed colleague when he tabled this bill.
This exemption from the FAA does not mean that the IDRC is unaccountable. On the contrary, IDRC is accountable to the Parliament of Canada. Its transactions are audited annually by the Auditor General of Canada who has also just completed a second value for money audit undertaken at the centre's request.
The centre's annual report is tabled in Parliament and the centre's chairperson and president frequently appear before House of Commons committees. I know I cannot use props but I do have the International Development Research Centre's annual report for 1993-94 if any member is interested in obtaining a copy.
I have just returned from Montevideo where I visited the regional office of IDRC. I also have a copy of its annual report which is available to any member who wishes to study it.
The current status allows for flexibility and enables the centre to move with great speed when political situations change, as they did in South Africa, Vietnam, Ukraine and who knows, maybe Burundi in the future.
IDRC's work at implementing sustainable development was given a positive mention in the special joint committee review of Canada's foreign policy. Its performance was rated highly by the National Advisory Board on Science and Technology's review of science and technology in Canada.
IDRC's flexibility has brought enormous benefits to Canada and the developing world. The centre is seen internationally as a dynamic, knowledge based and results oriented organization which has helped improve the lives of people in developing countries. It is particularly suited to these times of considerable change and constant upheaval.
I could refer to many examples of the outstanding work of IDRC but I know my time is limited. However, I would like to share a few examples with the House.
Members may have heard of the fog catcher in Chile. Peter Gzowski on "Morningside" a month ago and the extremely influential British magazine The Economist in January had stories describing this IDRC technology which is bringing clean drinking water to the poor people of a Chilean village. It is now being introduced in neighbouring Peru and Ecuador. It has the potential to bring water to many other communities in Africa, the Middle East and Asia.
In this its 25th year, IDRC and Canadians who have supported it have much to be proud of. IDRC is a leading Canadian agency for research and innovation, an area this government regards as key to our future growth. Its work benefits not only people in developing countries but also people here in Canada.
I visited the IDRC regional centre in Uruguay just two weeks ago and held a round table meeting with the regional director, the staff and the researchers. I learned how the work of IDRC in developing countries provides information, technology, goodwill and knowledge that can lead to business opportunities for Canadians at home or in those countries.
I also learned that the IDRC can contribute in a unique way in helping economies in transition to prepare for a market economy and build ties to Canada. IDRC's assets in this regard are its in house expertise and its international network of experts in this field.
IDRC helps emerging economies tap Canadian scientific and technological expertise and establish links with Canadian researchers and the private sector. This was the case, for example, in IDRC's work in Vietnam, China, Singapore, Pakistan and India.
In closing, I would like to reiterate that IDRC's exemption from the FAA has served it and Canada well. Removing this exemption would make it difficult for the centre to raise revenue from sources outside Canada. It would make it less flexible. It would thus hinder its fine work and would limit the international component of the centre.
When we have a good institution, a uniquely Canadian institution, why change it? For these reasons and others, the government does not support Bill C-263.