Mr. Speaker, I rise today to speak to Motion No. 2 regarding changes to the bill that will implement the agreement on internal trade.
During my address today I will explain that without the inclusion of my amendment, Bill C-19 will not address the concerns of Canadian taxpayers who are tired of the onslaught of patronage appointments from this Liberal government.
I will explain how my amendment will improve this legislation to serve the best interests of Canadians by providing a transparent system of scrutinizing governor in council appointments as they pertain to the agreement on internal trade.
The amended clause would read as follows:
14(1) The Governor in Council shall, by order, appoint any person to fill any position that may be necessary or advisable, in the opinion of the Governor in Council, for carrying out the purposes of the agreement only after scrutiny and approval by the appropriate committee of the House of Commons.
Government ministers have made a practice of conducting the business of governor in council appointments in secret. The salaries which are bestowed on these appointees are paid for by the taxpayers. It is only right that these same taxpayers should have a say in how many appointments are made and how much the commissioners are paid.
This amendment establishes elected members of Parliament serving on committees as scrutineers to patronage appointments. It will ensure that Canadians, through their elected members of Parliament, play a role in governor in council appointments.
The process thus far has been anything but open. Even though the Liberals campaigned on integrity in government and pledged to award governor in council appointments based on merit, Liberal Party affiliation has been at least as important as merit. I would suggest that it has been far more important in many of the patronage appointments made by the government.
This amendment will help the Liberals to keep their election promise. After all, everyone needs a little help now and again.
The agreement on internal trade, which will be implemented by this legislation, was contrived from executive meetings involving cabinet officials of the 12 provinces and territories along with the federal government. These 13 government bodies are defined as parties to the agreement. Their objective is the removal of interprovincial trade barriers which cost Canadians between $6 billion and $10 billion a year. The objective is, indeed, admirable. The government is to be congratulated for taking the first step in freeing up trade within Canada. Unfortunately, it is only a very small first step.
The result of this process so far is a seriously flawed agreement which identifies the problems, yet does very little to solve them. The important thing to remember is that all provinces and territories signed the agreement showing an intent to remove trade barriers. The problem exists in the means available to remove those barriers.
The agreement on internal trade outlines a series of legitimate objections which allow exemptions to the agreement. These objections are based on public security and safety; public order; protection of human, animal or plant life and health; the protection of the environment; consumer protection; protection of the health, safety and well-being of workers; and affirmative action programs for disadvantaged groups. If it can be proven that any of these provisions will be infringed on by the removal of a barrier, they will be exempt from the agreement. By doing this a party can protect specific interests very easily.
The fact that all agreements are based on the unanimous support of all parties leaves the door open to protectionist practices. This is evident in the removal of a dispute settlement mechanism in the energy sector. Just last week the House debated the Churchill Falls power contract. The trade barrier created by the contract is costing Newfoundland and Labrador close to $1 billion a year in lost energy revenue.
The very principle on which the agreement on internal trade is based is contravened by that contract. The people of Newfoundland and Labrador look to the new agreement on internal trade to right the wrong. Unfortunately, the process of deliberation between the provinces does not provide any real hope for the resolution of this problem as the agreement now stands.
The definition of a legitimate objective is extremely vague. It encompasses nearly every protectionist measure implemented by the provinces and ensures that barriers will continue to exist.
It is obvious from this language that disputes between parties will arise. It is imperative that a trade agreement contain a dispute settlement mechanism which is fair, effective and binding.
It remains to be seen whether the dispute settlement mechanism in the agreement will be effective. However it has met with considerable criticism from a wide range of groups, individuals and companies that have examined this agreement.
The process that individuals and governments have to go through to settle a dispute is lengthy, complicated and limits the access of individual businesses to the mechanism. The Minister of Industry and his provincial counterparts had the arduous task of striking an agreement which not only addressed the barriers to trade in Canada but was also agreeable to all parties on all issues. This was partially accomplished, although many of the sectors were not addressed effectively. That is the problem. Some were not addressed at all.
The committee of ministers set out objectives for designing the dispute resolution mechanism. This was to include: (a) disputes are to be directed by governments rather than private parties; (b) non-confrontation resolutions are to be used wherever possible; (c) no access to the courts will be granted in dispute settlements, no room for court interpretations; (d) restrict access to private parties in order to minimize the possibilities of frivolous claims being used as a means of harassing governments, resulting in financial burdens.
I want to repeat part of the last criteria set out by governments in this agreement: to restrict the access of private parties in order to minimize the possibility of frivolous claims being used as a means of harassing governments. This agreement is more concerned with protecting governments from harassment than it is with protecting individual Canadians and individual Canadian companies. That shows there is a real flaw in the thinking that has gone into the dispute settlement mechanism.
I question the rationale for restricting individuals access to dispute resolution mechanisms. As stated earlier, trade barriers cost Canadians money and jobs. Therefore Canadians need to be assured that their concerns on the existence of these barriers will be duly heard and acted on.
Access to dispute resolution mechanisms by individual Canadians ensures that the concerns of small businesses that rely heavily on internal trade will be dealt with. The purpose of this agreement is not to appease governments but rather to ensure access to markets across Canada. That is the purpose of this agreement.
The agreement on internal trade includes a provision which allows individuals access to the dispute resolution mechanism. The following is a brief outline of that provision. As I go through it, members will acknowledge that the mechanism is much too complex, much too slow and has no teeth.
First, an individual company is to contact its party to the agreement. Its party is either a provincial or the federal government, depending on jurisdiction. If the government involved refuses to act on its behalf, the party that wants to use the mechanism can contact the internal trade secretariat and apply for individual to government consultation.
Before access is granted, an individual has to undergo a screening process which determines whether the individual's claim is frivolous or vexatious. If it is deemed to be frivolous or vexatious, then the claim is disqualified and the individual company is not allowed to go through the dispute settlement mechanism.
If the claim is deemed valid, then the dispute will be heard by a panel of experts. This is where my amendment comes in. Each province and the territories, along with the federal government, will appoint five panelists to a roster that will consist of 65 panelists.
The terms of reference of these experts, their pay and their accountability is not mentioned in either the agreement or in this bill. The agreement also calls for the appointment to the office of the secretariat of internal trade of screeners and others as needed by the governor in council. The bill asks Canadians to sign a blank cheque for an undetermined number of people, to be paid an undetermined amount of money, to do an undetermined job.
Canadians are tired of this kind of patronage appointment. They want accountability. In fact, when the Liberals were in opposition they too wanted accountability of order in council appointments. They suggested that there be established a non-partisan nomination and confirmation procedure for order in council appointments. Is it not interesting now that the Liberals are the government they forget what they wanted when they were in opposition?
My amendment will deal with this problem of openness in order in council appointments.