Mr. Speaker, earlier this year the Commissioner of the Environment and Sustainable Development tabled the 2012 fall report in this House. One of the topics this report dealt with was the financial guarantees that are supposed to be posted to cover the reclamation costs of mines in Canada's north.
The commissioner brought up a number of issues that he found. One was that there was missing information about some of the securities, and that they were not matched with particular projects or particular mines for which the financial value of those securities was supposed to pay for reclamation costs. For example, he found that there were 11 mines in Nunavut, and there was a difference of $11 million in the reclamation costs for those mines and the value of the securities.
The report also covered missing inspections of mines. This is important, because when a mine is started, companies do not know exactly what the ore body looks like below. They do not know how the mine is going to develop. They have to inspect the mine and see how the environment has been disturbed, and try to estimate how that affects reclamation costs, and then see if they have the financial securities to cover that.
In 2011, 70% of required site visits to natural resources projects were not made.
Then there were improper securities posted. The Environment Commissioner mentioned $17.6 million in promissory notes, which were not guaranteed by a bank in Canada, and stated that he had concerns about the continuing enforceability of the security. In other words, when it came time to clean up the mine, the commissioner did not feel confident that that money could be collected to pay for the cleanup.
This is important because of a number of values, one being honest accounting: an honest accounting of the liabilities, an honest accounting of the reclamation costs of mines and the actual value of securities to cover the reclamation costs. It is important that we have honest accounting so that we do not have hidden liabilities, surprises that our kids and grandkids would inherit, burdens on our future generations.
The second principle is the polluter pay principle, which I understand the government believes in and which I hope the government will apply honestly in all areas of environmental protection. It is important that the operator of the mine pay for the reclamation of the mine, so proper securities have to be posted.
This is important. It is important, in managing a business, to match assets and liabilities. It is important, in managing an economy, to make sure there are no hidden liabilities. It is important to run a tight ship when managing an economy.
The government should realize this. I know that from time to time the government has other problems to worry about, but I think it is important to have honest accounting of assets and liabilities so that one properly manages an economy.