Madam Speaker, it is a pleasure to take part in the debate on third reading of Bill C-4, which would establish a foundation to fund sustainable development technology.
Sustainable development involves balanced development, an approach that avoids either/or outcomes, that does not sacrifice one essential value for another. The goals are complex, not simple, for example, not just electric power, but power without pollution, not just industrial growth and busy factories, but these without environmental damage.
We know from the history of the last 30 years that these balancing acts are achievable. We need only think of the reduction of automotive emissions, the abatement of air pollution, improvements in energy efficiency, and technologies of enhanced oil recovery that squeezed new oil from old wells and at the same time reduced the environmental footprint.
The common factor in every case has been innovation: new thinking and new technologies that transform the equation, effective technologies, affordable technologies and sustainable development technologies. Innovation has helped us progress as a society and it will continue to do so in the future.
Innovation of this order is what Bill C-4 is about. The legislation is straightforward. It would authorize the establishment of the Canada foundation for sustainable development. The foundation would administer the sustainable development technology fund of $100 million announced in budget 2000.
The initial focus of the foundation would be on climate change and clean air because these are two major environmental challenges of our time, particularly as recent events in the U.S. have dictated. Under the climate change heading, it would concentrate on the development of new technologies to slow down, arrest and eventually roll back the threat of climate change, for example, technologies to reduce greenhouse gas emissions, to make carbon energy systems less carbon intensive, to increase energy efficiency, and to capture, use and store carbon dioxide.
In the clean air part of its mandate the foundation would focus on the development of technologies to reduce the level of contaminants in the air we breathe: volatile organic compounds, nitrogen oxides, particulate matter and others.
Technological innovation is by nature adventurous, pioneering work that will always involve some form of risk. That makes it particularly important that we achieve the best possible ratio of inputs to outputs, of investments to results.
First, the bill would require that the foundation concentrate its funding support on collaborative efforts rather than on projects by single entities. This requirement reflects a strong emphasis throughout the legislation on teamwork. It would also help ensure that funding goes to projects that receive technical review and peer support.
Second, the foundation would plan its activities to complement and to dovetail with those of other federal and provincial government programs on climate change and clean air.
In addition, the terms and conditions in the funding agreements would require the foundation to use the fund to lever investment from other sources to get the ball rolling, not to play the whole game. The foundation would fund up to 50% of eligible costs of any project but never more than 33% of eligible costs on average across the program. This requirement too is consistent with the promotion of teamwork. It is also a consistent maxim that a good predictor of a project's success is the willingness of proponents to put up some of their own money.
Let me now turn to another aspect of the proposed foundation: the arrangements for governance as visualized in the bill. Ultimately the extent to which the fund advances the cause of sustainable development depends on good targeting, good management and good administration. The machinery of government for the foundation that the bill proposes meets this requirement.
The legislation would require the foundation to operate at arm's length from the government and hon. members will see that the governance structure matches that requirement. Essentially it has two components.
One component would be a board of directors, an executive body that would be responsible for the management and services of the foundation and would exercise all its powers subject to the foundation's bylaws.
The second component would be a committee of stakeholders, potential clients of the foundation and other entrusted parties or members of the foundation as we call them. Their role would be analogous to those of shareholders in a private corporation in the sense that they would scrutinize and comment on the activities of the foundation.
Of the 15 directors of the board, 7 would be government appointees. Members of the foundation would appoint the 8 other directors. None of the directors or the members of the foundation would be from the government.
It is an accepted principle of sound design that form should follow function and it does in this case. The ultimate function is sustainable development, a process in which the trajectory is away from narrow perspectives to broad vision. That applies with full force to the development of sustainable development technology. It must be effective, environmentally benign and affordable. The form of the governance machinery proposed by the bill supports that breadth and balance.
Together, the members of the board of directors and of the foundation represent the experience and expertise of every sector linked to the development and implementation of sustainable development technology: the public sector, the private sector, academic institutions and non-profit organizations.
In order to have balance in the geographic sense, members will be drawn from all regions of Canada.
The bill also prescribes measures to ensure due diligence and accountability, requiring the foundation to establish sound financial and management controls and to appoint an independent auditor to verify the effectiveness of these controls. The foundation must submit an annual report to the Minister of Natural Resources, to members of the foundation and to the public. The report must include an evaluation of results achieved through the funding of projects and must be tabled in parliament.
The detailed terms and conditions associated with the management of the fund will be set forth in a funding agreement between the Government of Canada and the foundation. The Auditor General of Canada will scrutinize the funding agreement.
In order to begin implementation of the mandate of the sustainable development technology fund as soon as possible, Bill C-4 also contains conditional clauses that provide for the governor in council to designate a private sector foundation to serve as the foundation in accordance with the requirements of the legislation.
The legislation stipulates that in this eventuality the assets and liabilities of the private sector foundation would be transferred to the foundation and its board of directors and corporate membership would dissolve, thus triggering the appointment of the board and members of the foundation as stipulated in the legislation.
These conditional clauses are also contingency clauses, insurance against unnecessary slippage of schedule in the start up phase. In the event of administrative or other delays of process, they would allow the government to fulfil its promises to establish the fund.
I would like to bring hon. members up to date on the history of the bill. The legislation is based upon more than two years of the most open, transparent and comprehensive consultation that involved the provinces, municipalities, the private sector, academic institutions and non-governmental organizations.
Every aspect of Canadian life was consulted in that two year process and the sustainable development technology foundation is a product of that process. However we did not stop there. The consultation process continued even after the bill was tabled in the House on February 2. We have had the opportunity to discuss the bill in detail with directors of private sector foundations. We agreed that one or two issues related to the roles of members and the timing of their meetings could use clarification. We therefore prepared amendments to the bill to achieve those clarifications.
We presented the bill and the amendments to the House of Commons Standing Committee on Aboriginal Affairs, Northern Development and Natural Resources. After vigorous and constructive discussion the legislation and clarifying amendments received approval. During report stage we debated a further seven motions in amendment. One consequential technical amendment was adopted to ensure consistency of all amendments throughout the bill.
I want to take this opportunity to thank all members from the various parties represented in this House for their support. Bill C-4 was much enhanced because of the positive debate that was held.
In conclusion I repeat what the Minister of Natural Resources has said to the House on other occasions. He said that we could not rely on technology alone to meet the challenges of climate change and clean air or to achieve the balancing act of sustainable development but that a constant flow of new technology, effective technology, affordable technology and sustainable development technology were indispensable to our success.
As we know from experience, this is an area in which the right investment of dollars, effort and expertise directed at the right target at the right time could cut the largest problems down to size. It is the right legislation directed at the right targets at the right time. I urge hon. members to speed the legislation on its way.