Mr. Speaker, I rise today to address Bill C-474, the transparency of payments made by mining, oil and gas corporations to foreign governments act.
I would first like to commend the sponsor, my colleague representing Scarborough—Guildwood, for his persistence and dedication involved in seeing this legislation through Parliament these past several years.
Bill C-474, the sunshine bill, as my colleague has properly characterized it, would compel Canadian-based extractive companies operating abroad to disclose all payments made to foreign governments after having been reviewed by a qualified independent auditor. The disclosures would be made to the Minister of Natural Resources who would then ensure that they are made available online for public viewing. If it is discovered that a company has failed to disclose a payment, it would be deemed guilty of an offence and face a fine upon summary conviction of up to $5 million.
These provisions will not only help to promote greater transparency and accountability in Canada's extractive sector, the sunshine aspect, as my colleague put it, but they will also discourage the kinds of illicit payments to foreign governments, especially those that routinely violate human rights, the disinfectant aspect, that have long been used to gain access to resource reserves.
To be clear, this legislation is not an indictment of all Canadian extractive companies, nor will this legislation stifle business and trade. As Pierre Gratton, president of the Mining Association of Canada, stated last year with respect to payment disclosures:
I think by and large it's not only seen as the right thing to do, but it's starting to be seen as actually good business to have these payments to government published.
This legislation is about combatting corruption and ensuring corporate social responsibility and accountability. Admittedly, many Canadian companies already have excellent track records in this regard, but as my colleague pointed out, this is now a question for Canada's reputational integrity and to make these countries even more attractive to investors. There is also precedent for this kind of legislation in other jurisdictions, including the U.S. and the EU, as has been pointed out, as well as broad support from civil society organizations in Canada. I am therefore pleased to support this bill and trust that it may enjoy the full support of the House.
Canada has already established itself as a world leader in the extractive industry. This distinction, however, carries significant responsibility in terms of ensuring that our companies conduct business abroad in an ethical manner and with the utmost respect for human rights. Regrettably, this has not always been the case, as my colleague has pointed out, which is largely why this bill is being brought forward.
As well, throughout this parliamentary session, the House Subcommittee on International Human Rights, of which I am vice-chair, has heard from witnesses as to the activities of Canadian extractive companies in countries around the world. Regrettably, much of the testimony has given us cause for concern.
For example, this past October, the subcommittee had the pleasure of receiving Neri Colmenares, a member of the Philippine House of Representatives and an authentic human rights hero in his country. In his testimony, Mr. Colmenares explained how transnational corporations operating in his country, including Canadian mining company Toronto Ventures Incorporated, TVI, have hired paramilitary groups for security, which he dubbed “a recipe for disaster”. These “unwieldy elements”, as he put it, have reportedly carried out routine violations of human rights dating back many years.
In a recent example, Mr. Colmenares described how local media were detained and held hostage by such a paramilitary group hired by TVI. This is but one example Mr. Colmenares shared with our subcommittee and in several meetings that I had with him. Indeed, his testimony and similar witness statements only underscore the need for the kind of legislation at hand.
In addition to the Philippines case, the subcommittee has also been inquiring into the state of human rights in Eritrea, which, as members will know, is the most closed society in Africa, dubbed the North Korea of Africa, and is one of the world's most egregious violators of human rights.
This past November, the subcommittee heard testimony from Cliff Davis, president and CEO of Nevsun Resources, another Canadian-based mining company with operations in Eritrea. Mr. Davis repeatedly insisted that all who work at the company's mine, which it co-owns with the Eritrean government, are there of their own free will and are provided with good working conditions, food and accommodations, in accordance with international standards. Moreover, Mr. Davis claimed that his company fully addressed allegations of human rights violations, particularly the use of conscripted labour by an Eritrean government subcontractor employed by Nevsun.
However, in witness testimony before our committee, we heard Nevsun does not know whether conscripted labour is being used or that the company has been repeatedly denied the right to investigate by the Eritrean government-owned subcontractor and now “appears to feel it has no power” and has responded with “quiet acceptance”.
This is precisely the impression I was left with after hearing Mr. Davis' testimony.
When I asked him if he was aware of human rights violations in Eritrea, generally speaking, notwithstanding the public record, he said no. When I asked him if he was ever advised about human rights violations in Eritrea by anyone, he said no. When I asked him if he was aware of human rights violations at the mine site, he said no. When I asked him if he was advised by anyone of human rights violations at the mine site, he said no. When I asked him whether he had ever conveyed to the Eritrean government any concern of any kind about any human rights violations, he said, and I am paraphrasing for reasons of time, “ I do not acknowledge the premise of the question. That is a premise asserted by people outside of our mine site, and there are no human rights violations at our mine site”. In the end, it was, in my view, akin to hear no evil, speak no evil and see no evil.
Simply put, it is unacceptable for Canadian companies to profit while funding and enabling those who violate human rights. I believe that Bill C-474 can help end that practice. The legislation would also serve to advance the principles of transparency and accountability that have already taken root among Canadian companies, while reinforcing the notion in the minds of investors that corporate social responsibility is good business.
I trust that the House will adopt the bill.