Mr. Speaker, I am pleased to rise today to participate in the debate on Bill C-474, the transparency of payments made by mining, oil and gas corporations to foreign governments act.
Let me state at the outset that our government believes that responsible resource governance practices should include transparency to ensure that the extractive sector sustains economic growth and reduces poverty. Without sound management, natural resource exploitation can lead to increased corruption, poor development outcomes, and at times, the fueling of armed conflict or illicit trafficking.
Openness, clarity and accountability are not only good for the local community but enhance investor predictability and stability. This type of responsible conduct is valued by governments, communities and corporations. This is why it is important to have a solution that works for Canadians, a solution that promotes transparency and good governance and one that respects our Constitution and creates a stable investment environment in Canada and abroad.
Canada is a major player in the international extractive sector, which includes oil, mining and natural gas. This is an important sector for the Canadian economy, our government's top priority. It accounts for 1.6 million jobs and nearly 20% of Canada's GDP. In 2011, Canadian resource companies exceeded $128 billion in outward foreign direct investment. We know that Canadian companies operate overall in a responsible manner, not only here in Canada but around the world. They are instrumental in improving the lives of people in the communities in which they operate.
Let me be clear that our government is not opposed to the objectives of this bill. Indeed, we value transparency initiatives that work for all Canadians. Our corporate social responsibility strategy for the Canadian international extractive sector, or CSR strategy, works for Canadians. It builds host country capacity, promotes widely recognized voluntary international guidelines, provides an independent dispute resolution system through the Office of the Extractive Sector Corporate Social Responsibility Counsellor, and last, facilitates a multi-stakeholder group comprising business, government and civil society to provide practical tools and information on CSR.
Our government continues to innovate with new ways to responsibly advance natural resource governance that works for Canadians. In 2011, at the commonwealth summit, the Prime Minister announced a $25 million contribution for the creation of the Canadian Centre for Extractive Industries and Development. This institution will be jointly operated by the University of British Columbia and Simon Fraser University and will advance best practices in extractive sector technology and management to reduce poverty and protect the environment.
In 2007, the Minister of Finance announced Canada's support for the extractive industries transparency initiative, also known as EITI. Today, Canada is the second largest funder of the EITI multi-donor trust fund, as well as the largest funder of the World Bank's Extractive Industries Technical Advisory Facility. We also host the secretariat of the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development, which convenes developing countries, training partners and donors to discuss and advance issues of mutual concern, such as international standards and best practices in extractive sector management and governance.
As well, let us not forget the Prime Minister's announcement in 2012 of $15.3 million in new funding for the African Minerals Development Centre. The AMDC will deliver guidance and policy advice to African countries on how to manage their extractive sectors responsibly and sustainably.
These are examples of Canadian solutions that work. They encourage extractive companies to make responsible investments, advance transparency and increase accountability. They reinforce Canada's brand as a global leader in this regard. This is why our government advances solutions that bring results not only here in Canada but around the world.
When it comes to advancing transparency and accountability, it is important to bear in mind that we are not the only player in town. At the upcoming G8, all countries will be working together to address this important issue. It is important that we work with our international allies to ensure that we have a strong transparency regime while ensuring that we have a comprehensive framework that does not unduly burden industry. Industry and civil society are also bringing new Canadian solutions to the forefront. There is work under way by Canadian mining companies and civil society to develop a framework for transparent financial reporting of payments to foreign governments.
In July 2012, the Mining Association of Canada, the Prospectors and Developers Association of Canada, Revenue Watch international and Publish What You Pay Canada, signed a memorandum of understanding to develop a framework for the reporting of Canadian extractive companies' revenues to foreign governments on a country-by-country and project-by-project basis. The objective is to create a single reporting framework that would reduce the reporting burden on companies, as well as to simplify the provision of information to all stakeholders.
This is an example of how Canadian industry is stepping up to encourage financial transparency in foreign markets. It demonstrates a constructive consultation for a workable solution. Unfortunately, Bill C-474 is not a workable solution. Bill C-474 tries to impose reporting features taken from other countries, such as the United States and Europe, with little regard to how our system works.
First, Bill C-474 has been presented without, it seems, consideration of how it would actually work under the Canadian Constitution. Our assessment is that the proposed legislation lacks constitutional validity under Canada's criminal law and our federal trade and commerce regulations. Simply put, Bill C-474 does not work under our Constitution. Second, the bill addresses the extraction of natural resources outside of Canada and does not include a domestic reporting regime. Third, Bill C-474 does not recognize the existing consultation in industry trends. Without effective engagement, the bill could result in an undue burden on the extractive sector. Bill C-474 does not work for our industry.
We believe in an approach that works for Canada, for Canadian companies, and an approach that advances transparency and accountability while also increasing economic prosperity and jobs for hard-working Canadians.
While I am standing, I would like to address an issue that I heard from the opposition members earlier today and that I have heard on an ongoing basis, that somehow Canada's international reputation has been going down. They do not cite any data for that. They cite a favoured member of the chattering classes.
I would like to put forward an article from The Toronto Star dated Thursday, May 23. The headline reads: “Canada's international reputation rising” says survey. It continues:
Canada's reputation is improving overseas according to a new public-opinion survey of respondents in 20 countries. Keep that maple leaf patch on your backpack for at least another year. Canada's reputation is improving overseas, according to a new public-opinion survey of respondents in 20 countries. Fifty-six per cent of about 20,000 respondents view Canada favourably, up from 53 per cent last year. The findings are included in a report by the polling firm GlobeScan [which was released yesterday]. Canada's reputation outside its own borders trails only Germany.
Around the world, Canada is the second most favourably viewed country in the world. That is hard data, done by an internationally recognized polling firm that has been doing this on an ongoing basis for 10 years. I understand that the opposition does not want to bring this to the attention of the Canadian people because it does not go along with what they have been trying to tell people for the last couple of years. The facts are that Canada's reputation in the world is going up not down, and that is because we have a responsible and principled foreign policy.
The pollster who did the survey said Canada's reputation has been trending positively since at least 2010, when 51% of the survey respondents had a favourable opinion of Canada. Those are the facts. I hope the opposition will read The Toronto Star. I am pretty sure my hon. friend from Scarborough—Guildwood is a subscriber. He might want to take a look at that article and perhaps respond to it at another time.
