Mr. Speaker, on behalf of the constituents of Etobicoke--Lakeshore who are very much involved and interested in businesses, et cetera, where the Export Development Act would have some reference, I am pleased to join in the debate today.
As Canadians we all understand the importance of a healthy environment, not just within our bodies but for everyone on this planet.
This past spring, I hosted a roundtable on the environment, where many of my constituents expressed concern over the state of the air we breath, the pollution of our lakes and rivers and global warming. For them they want the federal government to ensure that Canadian corporations, when carrying out their activities overseas, that they act responsibly toward the environment as they would if they were here in Canada.
Bill C-31 answers that concern. The bill would complement Canada's international and domestic obligations on the environment front. The bill would allow those values that we share as Canadians and initiatives that we implement on the environment to be implemented in an international context.
Canada's leadership role in the Kyoto protocol is sending a strong signal to our international partners that the federal government is committed to protecting and preserving the environment.
We are also helping developing countries to reduce toxic by-products that are industrial and agricultural based by encouraging them to adopt best practices to ensure environmental sustainability. As Canadians we have a responsibility to do this.
My constituents understand that toxics know no border and that we must take measures to respond to environmental challenges such as climate change and air pollution.
My constituents also understand that all sectors in society, government, civil society and the private sector, must share in the responsibility for a healthy and safe environment.
As a member of the Standing Committee on Foreign Affairs and International Trade, I have had the privilege of hearing from numerous witnesses who came before the committee. They spoke about the operations of the EDC. We heard from the president, from labour, civil society, business owners and exporters.
During the hearings the message was loud and clear: consideration must be given to the environment when EDC finances projects; and, that a formal environmental review process must be established.
Let me take this opportunity to remind the House that EDC was established in 1944 with a mandate to support and develop Canada's export trade. In the year 2000, it supported an estimated $45 billion in export and foreign investments.
The scope of credit agencies financing activities, particularly in the developing world, has prompted a call for sound environmental practices, recognizing the importance of fostering trade competitiveness that is consistent with environmental conservation.
From the early 1990s, as part of its risk management process, the corporation reviewed projects for their environmental impact.
Two years ago, EDC introduced its environmental review framework to formalize and strengthen its environmental procedures. The framework was developed at a time when few export credit agencies were seeking to manage environmental risks.
I am very pleased that the EDC has followed through on the suggestions and recommendations, not only of the foreign affairs committee but also on the Gowling report studied by the foreign affairs and international trade committee with the recommendations for a legislative framework and a substantive approach following that of environmental practices in other areas, including the World Bank.
The federal government is committed to ensuring that environmental standards are observed and defends the discussion today on the bill, balancing the need for EDC to be environmentally as well as socially responsible with the need to promote Canada's participation in a competitive and international market.
Bill C-31 makes the EDC's board of directors--and we heard mention of the board of directors earlier-including two deputy ministers of the federal government responsible for the environmental review policy. This is a binding obligation.
In addition the auditor general would have an ongoing monitoring and reporting role on behalf of parliament and the Canadian public. The EDC was among the first export credit agency to introduce such a review framework, putting Canada and the EDC at the forefront of current practices in the environmental review of export projects.
The framework has to two guiding principles: first, as the witnesses we heard from stressed, that environmental reviews undertaken by financial institutions to mitigate project risk can help encourage sustainable development by promoting consideration of the environmental benefits and costs of projects in host country jurisdictions; and, second, that EDC should decline support for projects which after taking into account the implementation of mitigation measures are in its opinion likely to cause significant adverse environmental effects that cannot be justified by the anticipated positive effects of such projects.
In other words, if the end result of a project is positive but there is a negative way in which to get to the end result, under its guiding principle the EDC can say no.
This environmental review framework is a reflection of ongoing multilateral discussions at the Organization for Economic Co-operation and Development. In that forum an export credits group is working to develop internationally acceptable standards for the environmental review practices of the export credit agencies of all OECD member countries.
There is a growing number of countries with formal environmental review policies including all the G-7 nations and the majority of OECD nations. Among the best are those of the United States, the United Kingdom and France. My constituents know that EDC's environmental review framework is regarded as being at the forefront of international initiatives in this regard.
Earlier my colleague mentioned the report of the auditor general. He stated that this framework contained all the elements suitably designed to aid this process. It shows the following: how the corporation would identify environmental risks, the information it would need to assess them, the circumstances under which it would decline to support a project or to make its support conditional, and the process for monitoring and reporting to ensure that the risks are appropriately managed.
Canada is standing head to head with other nations. These practices are in wide use. Bill C-31 would strengthen our domestic values and international agreements relating to the environment. Canadians expect that corporations doing business outside our shores such as EDC will reflect our values and the environment.
I call on all my colleagues to support Bill C-31 which would work to ensure the concerns of Canadians will be echoed in both the domestic and international spheres.