Madam Speaker, I am pleased to again stand in the House to debate Bill C-11.
Since I last spoke to the bill on November 15, 1999, I have had an opportunity to visit Cape Breton and talk to the stakeholders in this issue. I met with union representatives, as well as two local bidders whose bids were rejected by Nesbitt Burns Inc. I also visited the mine sites, the coal wash plant and the old Sydney steel mill site. The visits certainly gave me a more indepth understanding of the issues surrounding the sale of Devco and how it will affect Cape Bretoners.
Despite the government's stated commitment to a speedy process for this bill, Bill C-11 seems to have totally dropped off the government's legislative radar until today. Everything else seems to be a priority for the government except for a bill that has so far-reaching and drastic effects on the lives of Cape Bretoners.
We might also suppose that a bill of such importance would be given due process and time, but no, yet again the government has decided to wait until the last moment before invoking time allocation to run the bill through the House of Commons as fast as it possibly can. After all, the government does not care to allow all members the opportunity to rise in the House and speak their concerns, or more important, the concerns of Canadians.
I can only wonder why the government is suddenly in such a hurry to speed Bill C-11 through the House. After all, it has always been acknowledged that before the sale of Devco could proceed, this bill had to be passed.
It makes me wonder if the rumoured American buyers are getting impatient to claim their prize. We know how chummy the Prime Minister likes to be with anyone south of the border. What else would motivate the government to suddenly move so quickly? Certainly it could not be the interests of Cape Bretoners and Canadians.
I am fully aware that Devco was created as a vote getting measure, despite the fact that as far back as 1957 it was recognized that the coal industry alone simply would not be sufficiently viable to sustain the entire economy of Cape Breton on a long term basis.
In 1966 the government announced a $55 million package to phase out coal mining in Cape Breton over 15 years, yet in the very next year massive expansion occurred within the region with the creation of Devco. Even as Devco was being created it was obvious that the coal mining industry in Cape Breton would not be viable if Devco had to accept the full liability of past generations of Dominion Steel and Coal Company employees who were abandoned when these ventures went into receivership. So began the government's involvement, what I would call interference, into the economy and viability of Cape Breton.
For the next 30 years the government continued to support Devco through a variety of subsidies and grants until finally in January 1999 the government announced that it was putting Devco and all its assets up for sale. That is 30 years of families coming to rely on the industry they believed would support them as they had supported Devco.
We are not just talking about a nine to five job that the miners can walk away from without any costs. A well known fact is the toll that coal miners pay with their health to work in coal mines.
Despite the costs, the miners went ahead and did their jobs believing they would have jobs in the industry which is all many of them have ever known. Yet the entire time the government has known differently.
Over the years through different governments which have come and gone, one thing has not changed regarding Devco. It simply was not working.
To sustain the economy, one could suggest to flow votes from Cape Breton to the government, the government continually sunk more and more money into Devco with the expressed intention of making the industry work. At the same time, an examination of the annual reports of Devco indicated that the government was intentionally manipulating the shutdown of Devco.
Because of that manipulation, Devco families have faced numerous shutdowns, failures to meet production targets, and stunning financial losses. It is those families in the Cape Breton community as a whole who are suffering from devious management manipulation.
When I first rose in the House to speak to Bill C-11, I raised a number of concerns regarding the accountability measures included within the bill. As I have just mentioned, governments over the years have done little to ensure that Devco was not used as a patronage plum. I would hope that in the final days of Devco, the government could at the very least assure Canadians that their hard earned money was not going to waste in some Liberal crony's pocket.
On March 20 a committee established to suggest ways to spend the $80 million set aside to cushion the collapse of Cape Breton's coal industry released a report which stated the following:
Cape Breton Island has experienced poor economic conditions many times...but none can compare to the present day. People are showing a lack of confidence in the future. Immediate action is required to both illustrate government's understanding of the problem and its potential to help.
I would like to remind everyone that such a situation is exactly what was predicted back in 1957. Here we are on May 8, 2000 and we are still looking at second reading of this bill, albeit in a rather drastic hurry.
The report was released almost a month and a half ago and the government is just now realizing it had better hurry up and do something about the situation in Cape Breton. After all, the Prime Minister has promised an election within the next year. I question the timeline of the government and its dedication to providing due process and consideration for the miners and Devco employees affected by the sale of Devco.
Speaking of the sale of Devco, I have a few questions regarding exactly how the sale is taking place. Let me provide a bit of background.
Clause 2(2) calls for subsections 99(2) to (5) of the Financial Administration Act not to apply to the disposal or sale of Devco assets. Back in November when I originally spoke to the bill I voiced my concerns as to why the FAA needs to be suspended for this sale to go through. More important, what will replace those controls? The FAA ensures that a sale such as this happens in an open, accountable manner. If these restrictions are removed, what will control such issues as who gets the successful bid, was a reasonable amount paid for the assets, was the transaction made in the best value for money interests and will the money return to the public coffers?
Another concern I raised in November was that only bidders and cabinet will have access to the bidding process. No one else can get information about how much the assets are worth. How will we know if the final price truly reflects the value of the assets? The reality is that whoever takes over the assets will not just get non-viable leftovers. After having invested millions of dollars over the last 30 years and thanks to governments never seeing any kind of return on investment, Canadians at least deserve to know the terms and conditions of the sale.
I am sorry to state that I believe many of my fears regarding the process of the sale of Devco are being realized. Mr. Joe Shannon, currently on the Devco board of directors, was first appointed by cabinet on July 4, 1995 to be the chairman of the Devco board for a three year term. On July 26, 1995 cabinet authorized the board's decision to have Joe Shannon act as president of Devco. Mr. Shannon was reappointed to the board of directors for another three year term on August 26, 1998.
Mr. Shannon has obviously done fairly well through his appointments. At the same time he was leading Devco he was also president, director and chief executive officer of Seaboard Transport. While Joe Shannon was head of both companies, Seaboard Transport received a multimillion dollar contract to transport coal from the mines to the Nova Scotia power plants and the wash plant, a clear conflict of interest.
That is not the end of the story of Mr. Shannon. He is currently participating with Nesbitt Burns assessing bids for the sale and divestiture of Devco assets. Mr. Shannon clearly has a vested interest in ensuring his own interests are considered by whoever takes over. Judging by his lack of qualms in sitting on both the Devco and Seaboard Transport boards, I am doubtful that Mr. Shannon will suddenly find himself a conscience and act on what is truly in the best interests of Devco, Cape Bretoners and Canadian taxpayers.
Not only do I have concerns regarding the goings on in the boardroom, I have serious doubts regarding the bidding process for Devco and how decisions are being made as to who is seriously considered. In the March 20, 2000 edition of the Cape Breton Post a letter from Kevin Murphy, vice-president of the Cape Breton Miners Development Co-operative Limited, stated the concern of many Cape Bretoners that the bidding process for Devco is freezing out local bids. Mr. Murphy stated the following:
We feel that handing off the Nova Scotia Power Inc. supply contract to foreign suppliers is an unacceptable situation and we decided back in May to do something about it by forming a workers co-op and subsequently submitting a bid for the Devco assets through the Nesbitt Burns process.
Our bid was rejected, as was a bid put forward by Donkin Resources Limited, which is determined to press on with opening the Donkin mine with the support of the community and groups such as our co-op, which is ready to invest in the project to ensure that at least some of the NSPI coal is supplied by Cape Bretoners.
Mr. Murphy went on to question why the federal government would rather hand over a lucrative contract to a foreign company when the coal could be supplied locally. He concluded that “there is money to be made in the industry and that it should be reinvested here for the future of our people”.
I quoted extensively from Mr. Murphy because I do not think it could be said any better. Cape Bretoners are ready, prepared and anxious to rebuild their economy—