Mr. Speaker, I am pleased to speak to Bill C-41, an act to amend the Royal Canadian Mint Act and the Currency Act.
It was over 10 years ago that the legislation governing the mint was amended to allow it to become a fully commercial crown corporation. Bill C-41 is designed to improve the mint's operations and to improve its potential in markets that have changed considerably since 1987.
I do not intend to go into great detail about the content of the bill. However, I would like to briefly reiterate to the House the basic purpose of the bill which is threefold: to streamline the approval process for issuing coins and coin designs; to provide flexibility in the governance structure of the mint; and to increase the powers of the mint within its existing accountability structure which will allow it to achieve its vision of global leadership in minting. The passage of this legislation is crucial to the mint's future.
One thing that struck me during previous debate and subsequent further examination at the committee stage is how intense the competition is within the international coin market. This global business, that accounts for 70% of the mint's revenue, also works to reduce the overall cost to Canadians for the circulation of their own coinage. Last year alone the mint produced one billion coins for 16 different countries. By the end of this year that total will rise to an amazing 2.5 billion coins.
We are, through the provisions of Bill C-41, proposing that the mint be given the powers of a natural person to provide it with sufficient flexibility to meet its long term strategic direction and achieve its vision of global leadership in minting. The powers of a natural person will allow the mint to support its public policy role of producing domestic coinage and operating at a profit.
The mint will continue to be able to exercise all of the same specific powers that exist in current legislation while enabling it to acquire more general powers in support of its mandate. However, it is still subject to the existing accountability framework found in the Financial Administrative Act. It would still involve review by the Treasury Board and the approval of the Minister of Finance and the governor in council. In addition, the auditor general will continue to conduct an annual audit of the Royal Canadian Mint as well as a special examination every five years.
With the powers of a natural person, the mint will be more proactive and able to react more quickly to new business opportunities. These powers will provide the mint with the flexibility to enter into alternate business structures, such as alliances, partnerships, and subsidiaries. With these powers the mint will be in a more advantageous position in relation to all challengers within an extremely competitive international market.
The mint currently operates extremely well in a highly competitive and rapidly changing environment. These new powers will give the mint the increased flexibility it needs to be market sensitive, seize new business opportunities and be a more profitable enterprise for the benefit of all Canadian taxpayers.
Another key provision of the act is to increase the mint's borrowing authority which will allow the mint to foresee financial needs and the ability to respond quickly to any market opportunity that is commercially attractive and advantageous. This increase was seen by independent third party experts as prudent and realistic in keeping with current market conditions and practices.
The mint borrows for short and long term purposes. Long term borrowing is required for investment in capital and technology. Short term borrowing allows the mint to finance more competitive bids and expand its markets. It is important to note that the mint's borrowing limits will still be subject to approval by the Minister of Finance and the governor in council.
These powers will put the mint on the same legislative footing as other successful commercial crown corporations. Just as important, it will place the mint on an equal footing with its main competitors, other government mints, such as those of the United Kingdom, Austria and Germany.
This legislation will therefore improve the mint's competitive edge immeasurably and will ensure the Royal Canadian Mint achieves its vision of global leadership in minting. However, as stated previously throughout debate on this bill, the mint will still be subject to the same rigorous accountability framework that exists now.
Members will note that the bill has been amended at committee in order to maintain the role of parliament regarding the addition of new circulation coins and the deletion of existing circulation coins.
Bill C-41 does allow the mint to make changes in the characteristics of circulation coins by regulation rather than by time-consuming debate in the House. This allows the government to react quickly to changes in production costs and availability of metals while ensuring there is full opportunity for consultation and participation by Canadians at the occasion of adding new coins or deleting old coins from circulation. In fact, the amendment acts to improve the bill even more.
In closing, I would like to also note that Canadians should be proud of the true success story of the Royal Canadian Mint. Our mint is one of the finest in the world. Canadian coins are world renowned for their high quality and beautiful artistry.
I would like to take this opportunity to pay tribute to the mint. It is a truly world class competitor operating on solid business principles in an increasingly competitive market. In recognition of this, I would submit that passage of this bill would be our way of providing the Royal Canadian Mint with the best means of achieving its goals. Canadians should expect nothing less.