Mr. Speaker, it gives me great pleasure to present to the House information about our Conservative government's efforts to promote and encourage corporate social responsibility principles and standards throughout Canada's extractive sector.
I want to thank the hon. member for Pierrefonds—Dollard as I can appreciate the intent of Motion No. 283 calling for the government to act immediately to implement the measures contained in the advisory group report produced following the national round tables on corporate social responsibility and the Canadian extractive industry in developing countries.
This report called for the establishment, through the appropriate legal framework and with required funds, of an independent ombudsman office with the power to receive and investigate complaints against Canadian extractive sector companies. In fact, this Conservative government has already undertaken action on these recommendations and we will soon be doing even more to support corporate social responsibility, or CSR, practices around the world.
Since the presentation of the advisory group recommendations in March 2007, the minister has met many times with representatives of the extractive industries in a variety of forums in an effort to continue the discussion on a number of issues, including CSR. The Minister of International Trade and the Minister of International Cooperation have also met with civil society representatives to discuss trade and development issues, including CSR. This is part of our government's continuous effort to engage with and hear views from all stakeholders and subject matter experts on this very relevant and important issue.
As a member of the Organisation for Economic Co-operation and Development, or OECD, Canada is a proud signatory to the OECD's guidelines for multinational enterprises. This is a multilateral instrument promoting CSR. It has also been a long-standing key element of Canada's approach to the issue.
Adherence to the guidelines require Canada, among other things, to establish and maintain a national contact point, a body responsible for promoting OECD guidelines, handling inquiries and helping to resolve issues. The national contact point's work extends to all multinationals operating in Canada and all Canadian companies operating abroad across all sectors. The national contact point gives us an effective means to engage stakeholders and promote a positive, open and constructive dialogue between multinational enterprises and those affected by their operations.
Motion No. 283 calls for the creation of an ombudsman's office. This government does not disagree that a dispute resolution mechanism could help to address problems where they exist, as well as expose unfounded allegations. Through consultation we have found that the opinions of stakeholders diverge on the appropriate model. However, there was widespread support for functions such as fact finding, mediation and good offices to help settle the dispute, recommendations for action and follow up on their implementation and annual public reporting on activities. We are working to develop this model further and hope to present our findings to the House soon.
I would like to take a few moments today to recognize some of the other ways in which this government is proactively addressing the recommendations contained in the advisory group report.
Our government is a strong supporter of the extractive industries transparency initiative, or EITI. In February 2007, Canada joined the EITI, which seeks to improve governance in resource rich countries through a full publication and verification of company payments and government revenues for mining and oil and gas operations. To date, Canada has allocated $1.15 million to the EITI and has secured a seat on the international board of EITI for the 2009 rotation. It is proving to be an effective way of publishing what companies pay and what governments receive in an open, transparent and accountable manner.
The advisory group also recommended enhanced public reporting by the Canadian Investment Fund for Africa, yet another step that has already been taken by the Canadian International Development Agency which manages the fund. As well, the advisory group asked the government to support and adhere to internationally recognized standards, such as the voluntary principles on security and human rights.
As I have stated, our Conservative government adheres already to a number of international standards. I am happy to add that in 2008 our government applied to join the voluntary principles. We hope to confirm our membership soon. The voluntary principles were developed to guide companies in balancing the need for safety while respecting human rights and fundamental freedoms.
In addition to these important steps, in October 2007 Export Development Canada became the second export credit agency in the world to sign on to the equator principles. These principles are an international financial industry benchmark for assessing and managing social and environmental risk and project financing.
We are also committed to ensuring that Canadian companies are made aware of Canada's Corruption of Foreign Public Officials Act, or CFPOA , which makes it illegal for Canadians and their representatives to bribe foreign government officials.
To this end, since February 2005, the Royal Canadian Mounted Police has provided functional oversight of the international anti-corruption teams and anti-corruption enforcement activities through a commissioned officer at national headquarters.
In addition, Canada is a member of the International Labour Organization and we fully support the ILO Tripartite Declaration of Principles concerning multinational enterprises and social policy. This declaration is widely considered to be the universal basis reference point for social responsibility and labour issues.
Our Conservative government has provided financial support for a number of domestic and international initiatives aimed at promoting CRS principles. For example, since 2005 we have provided financial and political support for the work of Dr. John Ruggie, the United Nations special representative to the secretary-general on business and human rights.
Dr. Ruggie states:
CSR occupies the space between the requirements imposed on companies by law, and prevailing social expectations of the corporation’s role in society.
Dr. Ruggie adds:
The gap between the requirements of legal compliance and prevailing social expectations is particularly wide in countries with weak governance and a weak rule of law.
It is in addressing this gap that our current focus on CSR will be particularly applicable to developing countries. It is also what drives our efforts to increase government-to-government co-operation. In fact, resource governance is an area where Canada can play a leading role. Our vast experience in developing our own resources over decades has given us a breadth of expertise and experience to share with our partners in developing nations.
We are already working with developing countries, helping them to build up their expertise and create the foundation for successful, open and responsible extractive sectors that can provide lasting benefits to their citizens.
We do recognize that not all governments, especially those in developing nations, have the tools, expertise or capacity to effectively manage their natural resources or implement the laws that regulate them. That is why, for example, we have provided financial assistance to help Peru join the OECD Declaration on International Investment and Multinational Enterprises and to establish its own national contact point.
Peru's adherence to the declaration is a huge step forward for that country in terms of CSR practices and would bolster its commitment to the OECD's guidelines for multinational enterprises.
Our involvement in Peru also contributes to strengthening our economic partnerships with Latin America, a region of priority for this government. It is an initiative that we are proud of. Accordingly, Canada's voice on the issue is an influential one.
For example, we are closely working with our partners to foster and promote CSR international standards in a number of multilateral forums, including the Organization of American States, the Group of Eight, the Francophonie and Asia-Pacific Economic Cooperation. Indeed, at last year's G8 summit in Japan, leaders reiterated support for a consolidate set of internationally recognized CSR guidelines for the extractive sector. This is yet another good example of how we are working with our global partners on this very important issue.
I am happy to tell members that we are extending this principled approach to our trade negotiations. As we know, Canada recently signed free trade agreements with Peru and Colombia, both of which include language in support of CSR practices.
Our government has also included CSR language in its FTA negotiations with Panama, the Central America Four and the Dominican Republic. These are Canada's first free trade agreements to include language that encourages the parties to support positive CSR practices and reminds enterprises of the importance of incorporating CSR standards into their internal policies.
We have also signed parallel agreements on labour and the environment to help ensure that increased business between our countries does not come at the expense of workers' rights or a sustainable environment.
The inclusion of CSR provision in FTAs advances the government's policy to promote CSR, generally. In addition, it encourages our treaty partners to increase CSR promotion.
Those are just a few of the examples of how this government is responding to the recommendations of the round tables and moving in the right direction on CSR in real and tangible ways and without creating unnecessary regulation or administrative burden.