Mr. Speaker, the mint's mandate is to supply Canadians with coins that are of high quality, cost effective and delivered on time.
As a commercial entity, the mint generates a financial return to the Government of Canada by successfully marketing its minting services and coinage products worldwide.
In early April the mint began construction of a new coin plating facility in Winnipeg which will fulfil three objectives. It will guarantee a cost effective supply of plated domestic coinage; produce annual savings of approximately $10 million; and generate additional profits of $3 million annually from the production of foreign plated coinage.
The mint obtained the funds to build the plating facility from a private commercial institution, not from the government. The mint does not receive any government subsidies.
Under the current Royal Canadian Mint Act, the mint may borrow up to $50 million from the consolidated revenue fund or any other source. Members may recall that in May the government introduced Bill C-41, an act to amend the Royal Canadian Mint Act and the Currency Act.
One of the amendments proposes increasing the mint's borrowing limit to $75 million. This is not because the mint needs additional money to finance the plating facility. It has already obtained the financing it requires. The proposed increase will allow the mint to maintain a borrowing cushion or margin of safety as growth occurs in the years ahead.
The mint's competition is not with Westaim, not with private industry, but rather with foreign government mints. Some countries will only contract from government mint to government mint.
The mint's investments in its plating plant, its workforce and its new technology will ensure that it is well placed to be a leader in the global market.
I would hope that this clarifies once and for all the mint's mandate, its operations and the financing for its new plating facility.