Mr. Speaker, I rise to address the House on Motion No. 136 which calls on the government to develop the Donkin mine in Cape Breton as a crown corporation.
I join the Parliamentary Secretary to the Minister of Natural Resources in thanking the hon. member for Bras d'Or for bringing this matter before the House. There has been a great deal of debate in Cape Breton about the future of the Donkin mine. The government appreciates the opportunity to address this issue and to advise the hon. member and all Canadians of its position on this matter.
As the parliamentary secretary has noted, the Cape Breton Development Corporation, better known as Devco, is a coal mining company that currently operates not one but two coal mines as well as support facilities that include a railway, a port facility and a coal washing plant.
Devco is headquartered in Sydney which is a wonderful community. It had a great race track at one time. It holds all the coal leases for Cape Breton, including the Donkin mine on the island's east side.
The corporation is a major employer in Cape Breton and must continue to play a vital role in the long term viability of Nova Scotia's great coal mining industry. In order to do this Devco must become commercially viable. As hon. members have been informed, the corporation is continuing to lose money. By the way, that is exactly what my horses did when I raced them at Sydney, lost money.
Progress is being made but Devco still has a long way to go before it can meet the government's objective of being a commercially viable crown corporation.
Hon. members know Devco believes the key to economic profitability in the short term is not to play bingo at Stornoway but to get its current business right, to reverse the trend of annual losses by the fiscal year 1999-2000. With that in mind, this wonderful corporation has focused on achieving productivity improvements and introducing new technologies and promoting increased co-operation between management and labour and I hope between all members in this esteemed House of Commons.
As the parliamentary secretary has very clearly and unequivocally indicated, Devco will be looking at all options to get around the existing geological problem at its Phalen mine.