Mr. Speaker, this is not the first time I have had a chance to speak after my good friend from Acadie—Bathurst. I appreciate the emotion and the colour he is able to put into his speeches.
I would like to add a few remarks as we come to the conclusion of speeches on second reading of Bill C-11.
On November 15, 1999, the Minister of Natural Resources indicated to the House that fundamental change is required in the coal industry in Cape Breton and that Bill C-11 is an important component in the reshaping of that industry.
The bill provides the legal authority for the Cape Breton Development Corporation, or Devco as it is commonly known, to sell all or substantially all of its assets. The bill is consistent with the recommendation from Devco's board that a private sector buyer should be sought to purchase Devco's assets, as agreed to and announced by the government in January 1999.
Finding a strong private sector owner who can maintain a commercially viable operation over the long term is viewed as the best and most realistic way to sustain as many coal mining jobs as possible in Cape Breton.
In the debate of this bill, considerable support has been expressed by members on both sides of the House for a private sector commercial operation. I am pleased to tell the House that the firm of Nesbitt Burns Inc., which is managing the sales process for Devco, has been successful in identifying private sector interest in Devco's assets. In fact, prospective purchasers have toured Devco's facilities as part of their due diligence process and definitive proposals have been received for Devco's assets.
Devco is at the stage of evaluating and clarifying one of the proposals with a view to finalizing the broad terms and conditions of a sale in June. Negotiations concerning the final detailed agreement of purchase and sale would then follow.
The prospects for transferring Devco's assets to the private sector and for maintaining coal mining jobs in a private sector commercial operation are real.
It is now more important than ever with purchasers on Devco's doorstep that we move forward with this bill. Timely passage of Bill C-11 will allow Devco the legal authority to finalize a sales transaction with the purchaser. Most important, a sale will confirm the maintenance of good, solid private sector coal mining jobs.
During the debate there has been some concern expressed about the fairness of the $111 million human resources compensation package for those Devco employees, estimated at approximately 1,000, who will lose their jobs because of the need to close the Phalen mine.
In January of this year, in response to requests from its unions, Devco's management agreed to establish a joint planning committee which is following the process as outlined in the Canada Labour Code to resolve issues related to the existing human resources package.
This process has led to the appointment of an independent third party arbitrator whose decision will be binding on both parties. That decision is expected around the end of May.
Beyond providing the legally required sale authority, the bill creates no new ministerial powers and no delegated authorities. It maintains what is called the general advantage of Canada clause which will ensure that the Canada Labour Code will continue to apply, a point which is important to Devco's unions and employees.
The sale proceeds, as with any other funds provided to Devco, will be expended under business plans which will be approved by the Government of Canada. The Financial Administration Act requires that Devco operate within an approved business plan, summaries of which are tabled in the House. The bill will not change that requirement.
Concern has also been raised by some hon. members about Bill C-11's elimination of section 17(4) of the Devco act. Let me remind my colleagues of two points.
First, the Canada Labour Code, as well as collective agreements between Devco and its unions, contain provisions dealing with workforce reductions.
Second, the economic development responsibilities of Devco's former industrial development division were transferred to Enterprise Cape Breton Corporation in 1988. Although Devco has continued to make a significant contribution to the Cape Breton economy, it has not been an instrument of economic development for over 10 years. However, economic development on Cape Breton is continuing to be addressed by the government.
In fact, to support economic development in Cape Breton and in response to the requirement to close Devco's Phalen mine, the Government of Canada has already committed $68 million. The Government of Nova Scotia also contributed $12 million for this purpose.
The new federal funding is in addition to any job creation or economic development activities that would normally be undertaken by either the Enterprise Cape Breton Corporation or the Atlantic Canada Opportunities Agency, or any other federal agency or department.
Already the existence of this fund has made it possible to attract jobs to Cape Breton. On March 21 the Prime Minister announced the DES Sydney centre, a contact centre that will create up to 900 full time jobs over the next four years. As requested by Cape Bretoners, local consultations have been undertaken to obtain the very best possible local advice about how to use that new funding.
The panel that was assigned to conduct these consultations with Cape Bretoners has submitted its final report to ministers. Federal and provincial officials will use that information as the basis upon which to design an economic investment strategy for Cape Breton. The initial elements of that strategy should be operational this summer.
Just as an aside I would point out, and I would like to make comments contrary to those of the member for Dartmouth who exhibited very little confidence, I believe in the workers of Cape Breton.
Sheelagh Whittaker, who is president and CEO of DES Canada, when it was announced that this new major project would be undertaken in Cape Breton, said this: “DES customers, major global corporations and telecommunications manufacturing and financial services will come to rely on this centre for rapid and responsive support. The customer service professionals here”, and she meant there in Cape Breton, “will be trained and equipped with cutting edge web and wireless technologies and the DES centre itself will be nothing short of a showcase featuring the latest thinking in both technology and customer service processes”.
I believe she was clear in saying she was making a bit of a joke I guess of the situation unfortunately, but I would ask her to revisit her words and instead say that the people of Cape Breton and the workers in the coal industry are capable people, capable of adjusting to a new world and in fact as we begin this new millennium proceed with a confidence that I believe and we all believe is there.
Everyone knows the enormity of the challenges now facing the people of Cape Breton. The Government of Canada is committed to assisting in every reasonable way to help building a more secure and durable future. Legislation now before us is the key to moving that process forward. The future hinges in large part upon that process being successful in finding a buyer who will make a tangible and long term commitment to Cape Breton and to Cape Bretoners and to its workers.
Bill C-11 is relatively simple and straightforward. By allowing a private sector operator to purchase Devco's mining assets we are taking a tangible step to try to maintain the maximum possible number of coal mining jobs in Cape Breton in a commercially viable context for the long term. Now is the time to get on with the important business of examining the bill in more detail in committee. Now is the time for us to show confidence in Cape Breton and its people.
In responding to the amendment with reference to the HRDC committee, I believe its proper place is with the Standing Committee on Natural Resources and Government Operations which is fully capable of examining this bill. While I remind the House the bill is a simple bill, a straightforward bill, it does not create any new authorities for the minister. It does not delegate any authorities. It is a bill which will allow for the evolution as it must of the coal mining industry in Cape Breton.
With that I see that my time is up, Mr. Speaker. I ask all members to support the bill, including my colleagues across the House.