Mr. Speaker, I am pleased to rise today to add my support to the motion put before this House by the hon. member for Timiskaming-French River.
The major topic we are addressing today is the importance of the mine manufacturing industry in our nation. Like my other colleagues, I feel it is necessary to point out the importance of the mining industry to the Canadian economy.
I suspect that a number of hon. members in the House, particularly those from urban areas, do not realize the impact that the mining industry has on our economy. The facts clearly show that the industry is a key component of the national economy.
In 1993 mining products represented 15 per cent of Canada's total exports which resulted in a $10 million trade surplus. This industry contributes approximately 4 per cent to the gross domestic product of the nation. In addition it may surprise many members of the House that 60 per cent of all Canada's rail and sea freight is directly related to the mining industry. While these economic statistics are very impressive, it is also important to look at the central role this industry plays in the lives of individual Canadians.
The industry directly supports approximately 100,000 high paying skilled jobs in mines across Canada. The future of about 150 Canadian communities is dependent on the success of their local mines. These single industry cities and towns are reliant on the continued development of the mining industry to ensure their very existence. Hundreds of thousands of Canadians live in these communities. They are keenly aware of the importance of preserving our mining industry.
Having stated the importance of mining to so many communities in the country, it may interest those present today that there are no mines operating in my riding of Nipissing. Northern Ontario is rich in mineral deposits. However my riding does rely on an abundance of subsidiary industries. There are no ore deposits and that is why I am speaking in favour of the motion designed to assist the expansion of the mining industry.
The answer is that the manufacturing spinoffs from other mines in the region are a driving force to the riding of Nipissing. Those familiar with the industry may recognize some of the major manufacturing exploration companies in my riding, such as Boart Longyear, Warren Equipment Ltd., JKS Boyles Ltd., and J. S. Redpath Ltd. These companies are all located within the city of North Bay and employ a large portion of the local workforce. However the importance of the continued success of the mining industry extends beyond these big players.
The database of the Mining Association of Canada lists no less than 25 companies within the city of North Bay that manufacture or supply products related to mining. These products range from diesel electric locomotives to specialized spare parts, to core drilling and drill bit supplies.
The point I am trying to make is that there does not need to be a mine in one's community to benefit from the mining industry. I suspect that virtually every member of this House has a company within their constituency that directly or indirectly has business within this industry. In Ontario specifically, the 1994 study of Ernst & Young found that about 72,500 people are employed by direct or spinoff jobs resulting from mining.
I believe the facts which I have presented illustrate the importance of the mining industry to Canada. It has become necessary to act to protect this crucial industry.
As others have stated, the mining industry has suffered serious setbacks in recent years. Low mineral prices and a worldwide recession caused job loss and restructuring within the industry. To stay productive, many engineering manufacturers and exploration companies expanded their operations to foreign markets. The initial pain which resulted from the changes has been offset by the benefits of exporting to new markets. Nonetheless, these companies cannot survive on exports alone.
The key market for most of these companies is and will continue to be the domestic market. Canadian mines are the primary buyer of Canadian mine manufacturing products. This is due to the natural advantage of proximity and the fact that many of these Canadian products are technically superior.
This design and engineering superiority is the result of years of research and development which occurred during more prosperous times. In order to maintain the advantage especially in cutting edge technology, we must ensure the future viability of the Canadian ore reserves.
The motion and the recommendation suggested here today by the hon. member for Timiskaming-French River addresses many of the issues needed to revitalize the Canadian mining industry. Foreign mines are not necessarily prospering because they have larger or better ore reserves. They are prospering because the
investment climate in those countries is such that the mines can be developed and exploited with a higher expectation of profit.
Many foreign governments have acted to attract investment dollars through tax breaks and incentives. In Canada one of the chief disincentives to investing in mining is the high non-profit taxes and other charges which artificially increase the cost of doing business here. This has hindered our ability to attract new investors while at the same time companies operating here have had to make cuts to other areas in order to ensure their profitability.
One of the key areas that has suffered is exploration. This is a grave tragedy because without exploration there will be fewer discoveries of ore deposits and therefore fewer new mines. If this continues, the mining industry in Canada will die a slow and painful death along with most of the associated manufacturing industries.
The motion before the House today asks us to consider making changes to the investment climate as it relates to the mining industry, particularly in the area of mine exploration. What is proposed is not radical. It calls for the implementation of the majority of the recommendations put forward by the natural resources committee of the House.
In truth, by encouraging the exploration for and the development of mines the government will be creating jobs and stimulating the economy which can only serve to increase revenues. Most important, by encouraging exploration we will be increasing the probability of finding new ore deposits. These undiscovered resources represent the future of the Canadian mining industry. They will be the mines of the next century.
If we do not prepare the way for its future then I fear our mining industry will falter. If the mines fail then I expect the small and medium size companies manufacturing and supplying mining materials will not survive. These are the companies which support the local economy in my riding of Nipissing and it is for this reason that I speak in favour of the motion today.
We as parliamentarians must act to ensure the future viability of the mining industry in Canada. Motion No. 292 represents an effort to address the fundamental problems facing the industry today. If we make it more attractive for investors to bring their money here or to keep it here, then we will be assured that the process of the exploration and development of mineral resources will become healthy once again.
Canada is a world leader in mining and mining technology, but this position has been challenged in the last decade. I am supporting the motion today because I believe it represents one of the steps we need to take to recapture a position we have rightfully earned.