Mr. Speaker, as chairman of the northern Ontario caucus I am very pleased to have the opportunity to speak on Motion No. 292 put forward by my colleague from Timiskaming-French River.
Mining in northern Ontario is of historical significance. It has provided significant economic growth in northern Ontario and is the source of a significant number of jobs. It is a very important industry in northern Ontario. The motion talks to the need and the logic of government continuing to support the industry.
Canada's mining industry is the third largest in the world. It employs over 330,000 people and adds over $20 billion to the Canadian economy. The Canadian shield which covers northern Ontario is one of the richest ore bodies in the world. We produce over 60 different commodities. We have almost 500 mines and quarries. Unlike many other industries, when jobs are created in the mining industry there is a spinoff effect of almost 6:1 as compared to several others where it is 2:1 or 3:1.
However, mining is different from many of our resource based industries. It is not a renewable resource. One thing that is known when a mine is open is that eventually it will close. That is why it is absolutely essential that we search out, seek and explore for new supplies.
Canada is fortunate to have the reserves. We can continue to mine far into the future but we need to take action. We need to provide the incentives that will enable our companies to go out there to search out these areas of new supplies. Government should and will create a climate in which the private sector will be able to do so. Government needs to invest in exploration and in development.
There are three broad areas in which we should be doing this. First, I mention creating an environment that allows the industry to prosper; second, creating a tax regime that is conducive to exploration; and, third, providing technological and other assistance to the industry.
In respect of the environment, creating the budgetary climate in which business and industry as a whole can prosper is important. Our budget of last February brought in government expenditure controls and brought in a firm plan to reduce the deficit. It will help not only the mining industry but all industries in Canada.
Trade must be encouraged and international barriers must be decreased and relaxed. The Ministry of Natural Resources program to encourage trade by going to Europe and Asia and explaining to the world what is available in Canada is an important initiative. We have to go out there to create an environment by co-ordinating environmental assessments between the federal government and the provinces and to provide certainty to companies so that they
know how long and exactly what is going to be necessary to develop a particular find.
We need to create a tax regime in the country that is competitive with the world so that when a company is deciding to invest in exploration it will choose Canada because it receives treatment that is equivalent or similar to that in the rest of the world. I am referring to things like accelerated depreciation, research and development tax credits on technical research, and moderate source deductions. We need to do something about source deductions such as our reduction in the UI premium. We need a competitive tax regime on profits. As was mentioned earlier by one of my colleagues, contributions to mine reclamation were made tax deductible in 1994. We need to look at the income earned within those funds being tax deductible.
We need to help the industry in terms of technology and other areas. Seeing as we are coming to a close of private members' hour, let me conclude by saying that we need to support the mining industry. It is a large employer and important source of international trade. For many areas of rural Canada, including northern Ontario, it is the backbone of our economies.