Mr. Speaker, my apologies.
I found the machinations the member for Elk Island went through interesting. He knew we were going to vote for his motion. I guess it gave him an opportunity to rent his clothing and rail against the winds for his constituents.
Motion P-16 requests that the Royal Canadian Mint produce documents concerning the construction of a new coin plating facility at the Royal Canadian Mint location in Winnipeg.
As the hon. member for Elk Island already knows, the Standing Committee on Natural Resources and Government Operations asked for these documents last June. The Royal Canadian Mint complied and sent the documents to the clerk of the committee. The committee will soon reconvene and the documents requested will be available for review. We are on division going to vote for this today. We are going through the exercise, but it must be completed.
I ask the House why we are using our valuable time and resources to debate a motion when its goal has already been achieved, except for the opportunity for Elk Island to get up once again and state his position.
Let me address the benefits of the new plating facility to all Canadians. The initial guarantee is that it is a secure cost effective supply of plated coinage. Plated coinage is the technology of the future. Plated coins are less costly to produce and are just as durable and attractive as the coinage used in the past.
By building this facility, the government will achieve quite a large saving. The mint will pass on savings to the government of approximately $10 million per year. This is extremely important to a government that is counting each one of its pennies very carefully.
The mint is the only corporation mandated for the production, sale and distribution of coins in Canada. It supplies Canadians with coins that are of high quality, are cost effective and are delivered on time. The mint must also generate a profit for its shareholder, the Government of Canada, by successfully marketing its minting services in coinage products worldwide.
The Royal Canadian Mint is not an appendage of the government as was the implication of the member opposite. It competes in a global environment. Business fundamentals such a market analysis, sales, competitive positioning, leading edge technology and investment in human resource development are daily essentials, as they are with any corporation.
The mint does not receive government subsidies. All its operating costs are paid through its revenues or by securing financing from private financial institutions. The member opposite knows this. Making coins for other nations keeps the mint presses running at high speed and around the clock, which is the most cost effective production technique available. In 1997 the mint produced over one billion coins for 16 foreign countries. This year it will have upped that number to two billion.
It is expected that the mint's new plating technology will continue to be in high demand around the world. The mint estimates the new facility will enable it to generate an additional $300 million in annual profits. Construction of the plating facility began in April. Construction is on schedule and on budget.
It is also important to note that the entire project has been financed by the mint through commercial financial institutions. One hundred to one hundred and thirty construction jobs were created over the three years of the construction period. On completion it will add 25 to 30 new permanent full time staff to its Winnipeg workforce.
The hon. member for Elk Island is understandably concerned about the well-being of a company in his riding, Westaim Corporation. Let me assure the House that the Royal Canadian Mint does not compete with Westaim. Westaim has been a supplier of the Royal Canadian Mint for many years and will continue to be one of several suppliers that provide the Royal Canadian Mint with the materials it needs. Westaim is the sole supplier for the 1$ coin blank because it holds the patent for this project. Suppliers from Canada, the United States and Europe provide the mint with metal strip and coin blanks for the other coins.
Throughout the world there is a growing demand for lower cost circulation coinage. There will be many opportunities for both Westaim and the mint to work together to compete against foreign mints which are also expanding to meet the growing demand for lower cost coinage, in particular plated coinage.
As early as 1991 Westaim informed the mint that it wanted to get out of the coin business and we had to make other plans. Westaim wanted out of the business and it is not considered to be a secure supplier for the mint.
The mint's coins are preferred by vendors who require two years to retool their machines, so let us look at what the cost would be to private enterprise. The mint's process is environmentally safe and produces high integrity coins. The mint needs the plating facility to fulfil its mandate and to meet the expectations of its customers at home and around the world. The mint is a totally independent crown corporation charged with the task of making money, both coins and profit. The plating facility is an essential tool that will enable the mint to fulfil its mandate to produce secure top quality but cost effective coins for Canada and profits for Canada through marketing its coinage expertise around the world.
The plating facility is essential for the mint to succeed in the international coinage business in which it is an active and extremely successful player. It is a dynamic and innovative organization in a highly competitive international market. For now and in the future it will continue striving to be the world leader in minting.
I remind the House that the Royal Canadian Mint has already produced the documents requested by Motion P-16 in response to a similar request made by the Standing Committee on Natural Resources and Government Operations last June. These documents will be available for review as soon as the committee reconvenes. Any member of the House may obtain a copy of those documents from the clerk of the committee.