Mr. Speaker, I will be splitting my time today. I am pleased to rise to speak in support of the legislation, as will be no surprise to my colleagues on the other side.
I could not help but listen to my hon. colleagues in the PC/DR who talked about missed opportunities. It is great to be speaking to the issue today. I did not miss an opportunity to do so in the last session. In the last session I was chair of the subcommittee on international trade, trade disputes and investments. I was also an associate member of the Standing Committee on Foreign Affairs and International Trade which examined the Gowling report.
While I was not mandated to appear at those committees I thought it was important to do so. It is important for small businesses in my riding that I understand and appreciate what EDC does and the kind of value it adds.
I had an opportunity to lead two trade missions to the Baltic states during the last session of parliament. At that time if there was one criticism by small businesses it was that they wanted more involvement by the Export Development Corporation.
I support the bill because it means Canada's Export Development Corporation would continue to be able to meet the financing needs of our exporters but in a way that reflects Canadian values for corporate social responsibility.
Over the years Export Development Corporation or EDC has become a valued part of our country's success as an exporting nation. Last year EDC facilitated $45 billion in international business by Canadian companies. The corporation served the needs of 5,700 clients, well over 80% of whom were small and medium size enterprises. As a founding member of the Women Entrepreneurs of Canada I know the value of small and medium size businesses as well as businesses run and owned by women.
In total last year EDC carried out some 70,000 short term insurance transactions. These services are vital to our nation's export success. We must ensure EDC can continue to provide them. At the same time EDC's operating policies and actions must reflect the values Canadians believe in, and they must do so both at home and abroad.
EDC does business in more than 200 markets around the world. One hundred and thirty of these are in developing countries. We need to make sure Canadian values regarding issues like sustainable development and human rights are part of the decision making process for EDC supported projects in other countries. We also need to make sure the decision making process is transparent and accountable so that Canadians know this is the case.
These are the reasons Bill C-31 is important for us as legislators. Along with other policy guidance from the government, the amendments to the Export Development Act contained in the bill would help us reach two overarching policy objectives: first, that the act support Canada's exporters and the jobs and wealth they create; and, second, that it recognize that Canadian values of corporate social responsibility must be included in EDC's decision making process.
There is no shortage of examples to show that EDC is vital to our country's export success. As noted, last year the corporation provided financial support of one kind or another to 5,700 Canadian companies. Again, most of these were small or medium size enterprises.
These are the kinds of companies members on every side of the House have in their ridings. They are companies like Cameron Seafoods Ltd. of Nova Scotia, a family run business which is developing new markets abroad for its specialty seafood products. EDC has provided it with financial support such as credit guarantees that have facilitated new sales to buyers in other countries. When EDC came on board in 1998 the company's sales increased from $3 million to $5 million in one year. That is quite an increase.
Another example is Amec Earth and Environmental Ltd. of Calgary, a firm that provides geotechnical and environmental engineering services. EDC has worked with the company for several years and provided it with financial support to reduce the risk of doing business internationally. Amec now employs 1,600 people and is doing business in 30 countries.
Another good example is Klik Automation of Montreal. This small, high technology firm is part of the new imaging software community that has grown up in the Montreal region. When Klik was looking to develop a new export market last year, the company turned to EDC for insurance to guarantee payment by a new overseas customer. That deal resulted in 19 new jobs in Montreal.
There are stories like this all across Canada. Each one means increased exports for Canada and good jobs for Canadians. The government is working hard to make sure that we see more of these success stories. Bill C-31 is a key element of this work. It is not a long bill. In fact it can be read quite quickly, and I would encourage members who have not read it to do so. It is a bill that should be read and understood within the broader context of change for EDC, both domestically and internationally.
Bill C-31 is really the concluding step in a process review that started over three years ago when the government commissioned a consultant to carry out a legislative review and write a report. That was the so-called Gowlings report.
The process continued with the parliamentary committee hearings and reports to government by the House Standing Committee on Foreign Affairs and International Trade and the Senate committee on banking.
In addition, the auditor general has been involved and has made useful recommendations, especially on EDC's environmental review framework. In June of this year, the Minister for International Trade provided guidance on updating EDC's mandate in a number of key areas, including environmental review, human rights and broadening the base of participation of the private sector in financing Canadian exports.
Throughout the review, interested stakeholders have also been involved in the process, another opportunity, I would say, to participate. Although the review of the Export Development Act has not been a matter of broad public concern, a number of organizations and committed stakeholder groups, representing both business and public interest groups with specific interest in EDC, have been actively involved in the process.
Both the Minister for International Trade and EDC have found this involvement helpful. I would remind my colleagues on the other side that this is simply part of what the Liberal government is all about. In fact the Speech from the Throne talks about the importance of consultation. This is evidence of not just speaking about it but actually doing something about it.
EDC is perhaps best known for its success as an export financing institution but the corporation has also shown that it is socially responsible. Note, for example, that it was the EDC that initiated the environmental review framework and it is putting in place a new disclosure policy to improve accountability. These are significant developments.
We all want greater attention to be given to environmental and human rights issues and we all want a disclosure policy that will reassure Canadians that EDC's decision making process is transparent and accountable.
It is equally important that we have policies and operating directives that are realistic as well as workable. That is why public consultations are so important and the input of those stakeholder groups in Canadian society who are most affected by EDC is also so helpful to the government.
EDC has recently gone through a public consultation process on its disclosure policy. Just this past September, the corporation was going through a similar consultation with stakeholders to follow up on advice from the auditor general and the Minister for International Trade on strengthening and improving its environmental review framework.
Representatives from both the business community and public interest groups have been a welcome part of these consultations. They are an important part of the process to develop the specific policies and operating procedures that will meet the government's policy objectives and that are realistic and workable in practice.
In the OECD, for example, we have led the discussion in this area. Our negotiators sense a growing consensus for action by the OECD to require the export credit agencies of member countries to conduct environmental reviews of projects proposed for financial support. Canada can be a model for this new approach. It is a balanced approach that best meets Canada's needs in changing the international environment.
The legislation is the right approach for Canada. It brings the force of law to EDC's environmental review framework and it will position us well to deal with emerging trends in the international community. It is a bill that all members should support.