Mr. Speaker, I am pleased to participate in the debate today on Bill C-31 regarding the Export Development Corporation.
I asked my assistant to go to the website to find out exactly what the mandate of the organization is and I will quote the very first sentence: “EDC is a Canadian financial institution devoted exclusively to providing trade finance services to support Canadian exporters and investors in some 200 markets, 130 of which are in developing markets”. I believe the website is relatively current. It goes on to say that last year, Canadian business concluded $45.4 billion in export and domestic sales and investments in markets using EDC trade financing services. It claims right up front that it is not only involved in exports but also has domestic sales and investments in the marketplace.
The EDC also says that 90% of its customers are smaller customers, but it does not indicate the magnitude of the business conducted with these different corporations. While 90% of its customers are presumably smaller companies, in terms of the number of them, we have no indication or any way of finding out exactly who the other 10% are. It could well be, and I suspect it is the case, that the 10% that are not smaller companies are large corporations that benefit immensely from the majority of the financial activity of the corporation.
The EDC goes on to say that it also has responsibility for social corporate activity. It logs its code of conduct and business ethics. It lists all of the things it is high on and we should commend it for that. It is a global business and says that it is therefore a global citizen and works within a global environmental context.
I find it quite incredible because the Government of Canada has expressed its concern for global environmental issues. We are no longer living in a world where what we do with our air, water and soil is limited only to ourselves because of the fact that our world has become a very small community. I commend these words, but when we look into the depths of the legislation that is before us and what is proposed therein, we find that it is somewhat inadequate in the sense that Canada's rigid environmental laws do not apply.
I will digress for a second. I think of Canada signing the Kyoto accord. One of the questions that has been asked of me, and which I actually have asked myself, is exactly how the environment is enhanced by shipping Canadian money to other countries that for whatever reason do not have as much pollution as our country.
For example, we are a northern country. We have heating demands which are just not present in Africa. A person would have a hard time making a living selling furnaces in Africa because they are not needed. No fuel is burned and hence not as much pollution is produced.
In order to solve the environmental problems of the world, should we ship our money to Africa? How is the environment enhanced by that? Would it not be better to keep the money at home in Canada and use it for research and other activities in order to clean up our environment and the way in which we produce our own energy needs?
The Export Development Corporation is not required to adhere to Canada's environmental laws. It has its own law. I can see its argument. It says that it is one that is internationally agreed to and in order to allow it to play on a level playing field, that is the rule it needs to apply.
From time to time EDC becomes involved in financing projects which would not fly in Canada because of Canadian environmental laws. That to me is an anachronism. We are willing to send money out of the country which has nothing to do with helping the environment yet, through the Export Development Corporation, we may be financing projects which do not meet even our own requirements. It is a contradictory use of Canadian taxpayers' money.
There is also something called the Canada account. My colleague from Kelowna mentioned it. The Canada account is used to support export transactions which are determined by the Minister for International Trade to be in Canada's national interest. According to its website, this is usually due to a combination of risks and it mentions what those are. Basically the executive summary of it is it would become involved if ordinary banks would not touch the matter.
Canada account transactions are negotiated, executed and administered by the EDC, just like the corporate account transactions are, but the risks under the Canada account are assumed by the Government of Canada.
We see a direct involvement of the Minister for International Trade who can say “This is a project which we will approve”. Unfortunately, there is no check and balance in the legislation to prevent the minister from using it for the purposes of propping up businesses of the minister's choice rather than perhaps what is really good for the country as a whole.
To whom is EDC accountable? It says that it operates at arm's length from government. However, the way the corporation is set up, the Government of Canada, i.e., the taxpayers of Canada, is the only shareholder of the corporation. I was elected to speak for taxpayers in Canada. That was my primary theme. Canadian taxpayers have “invested” into EDC in excess of $1 billion, yet the corporation claims that it operates at arm's length from the government and does not cost the taxpayers anything. I beg to differ.
As a matter of fact, if someone were to give me $1 billion and said that I would have to pay it back, eventually I would give back the $1 billion but boy, would I live a happy life in the intervening years. It is a little thing called interest. One billion dollars could easily produce $100 million per year in income. That would be adequate for a good weekend, would it not? We are talking a lot of money here and it is money that is lost to Canadians by virtue of the fact that it is tied up in the Export Development Corporation.
Let us not kid ourselves. Let us not say that the corporation does not cost the taxpayers anything. It obviously does since we have this huge amount of money that has been invested in it. It is taxpayers' money.
I will not deny the fact that many businesses benefit from the work of the Export Development Corporation. It enables them to promote their own business and to export to countries around the world. In that sense those taxpayers at least get something back. It obviously produces some employment and that is also good.
I would like to see legislation which would greatly enhance the accountability to the Canadian taxpayers. I am appalled when I read the details that although the auditor general has access to the accounts and makes reports and the five year special report, those audits are not readily available, even through access to information.
I regret that my time for debate is up. I hope some members will have questions for me so that we can enter into debate.