Mr. Speaker, I will be splitting my time with the hon. member for Elk Island. One would think that after the member for Parkdale--High Park finished with her catalogue of good things the EDC had done over the past years that there was absolutely nothing in the world the EDC could not do to promote business. I wonder what happened to all of our financial institutions and our private enterprises that operate without EDC support.
I want to put on the record a balanced position which clearly indicates there is something else besides EDC that might work. One would think that according to the government the only corporations which really know what to do are crown corporations. That is far from the truth. There are a lot of other corporations that are doing very well. I suspect that is one of the reasons CN, which was a crown corporation, is now a private corporation.
I will speak to a number of amendments contained in Bill C-31: the environmental provision, the increase of the contingent liability ceiling from $15 billion to $32.5 billion, the empowering of the board to make contributions to pension plans, making it an offence for businesses to refer in their advertisement to EDC involvement in their enterprises, the appointment of committees and the power of the board to delegate its powers to them.
I will read into the record the clause pertaining to the environmental provisions. I am sure many people who are watching do not know exactly what is being talked about. Clause 10.1 states:
Before entering, in the exercise of its powers under subsection 10(1.1), into a transaction that is related to a project, the Corporation must determine, in accordance with the directive referred to in subsection (2),
(a) whether the project is likely to have adverse environmental effects despite the implementation of mitigation measures;
Subclause 10.1 (2) states:
The Board shall issue a directive respecting the determination referred to in subsection (1), which directive may
(a) define the words and expressions that the Board considers necessary for the application of that subsection, including the words and expressions “transaction”, “project”, “adverse environmental effects” and “mitigation measures”;
Is that not interesting? The board has the right to decide whether there will be adverse environmental effects. The next section defines an adverse environmental effect.
The bill does not in any way refer to Canada's environmental act. It is excluded specifically. Those projects are approved under the Canada account which the Minister of Finance and the Minister for International Trade need to approve. They are specifically exempted and do not apply or come under the jurisdiction of the Canadian Environmental Assessment Act. Clause 12 which amends section 24.1 states:
(1) Subsection 5(1) of the Canadian Environmental Assessment Act does not apply where the Minister or the Minister of Finance exercises a power or performs a duty or function under this Act or any regulation made under it, or exercises a power of authorization or approval with respect to the Corporation under any other Act of Parliament or any other regulation made under it.
We now need to look at the very wide reaching powers of the EDC. The corporation may acquire and dispose of any interest in any entity by any means; enter into any arrangement that has the effect of providing to any person any insurance, reinsurance, indemnity or guarantee; enter into any arrangement that has the effect of extending credit to any person or providing an undertaking to pay money to any person; take any security interest in any property; prepare, compile, publish and distribute information; provide consulting services; procure the incorporation, dissolution or amalgamation of subsidiaries; make any investment and enter into any transaction necessary or desirable for the financial management of the corporation; and there are others.
The powers are overwhelming. The auditor could be the president of the EDC and do anything he would want to do. It is like telling my friends to form a corporation, make sure to do some exporting and make sure that they get paid by the person who is buying the product they are exporting. That is what is possible here.
We have to recognize that these people will be responsible, but the law is an open book and allows them pretty well to go anywhere they want to go. That is the sort of thing that makes it possible for a patronage appointment, for example, to reflect specifically what it is the Prime Minister wants done in another country, another corporation, or whatever the case may be.
In addition, the board that runs the corporation may now appoint committees which can have any of these powers delegated to them. This is really interesting. That is the kind of bill we have before us. If it were not for the trust, faith and common sense of some of people, we would have the possibility and potential of making something corrupt.
I am happy that we as Canadians do not live like that. We trust one another. We have a sense of morality and a sense of ethics. That is what makes this kind of thing work. It is not because the legislation is so good. It is because the people are so decent.
This is why I am such a strong proponent of private enterprise in the first instance. These people are now directly responsible for their own money in their own way. They can do the things that have to be done to benefit them and get the finest results they can get.
The answer lies not in forming crown corporations and extending their powers and privileges but rather in creating an environment so that private enterprise can win and can apply these kinds of things.
I am sorry the hon. member for Parkdale--High Park is not in the House right now because I would like to ask her if it is really possible--