Madam Speaker, I would like to expand further on some of the challenges that Bill C-300 would present in its implementation. I will drill down, no pun intended, on at least seven substantive issues we have with Bill C-300.
I should say from the outset that the great Kenora riding is home to vast mineral assets, and in fact has one of the most productive gold mines in the world, operated by Goldcorp in Red Lake and Pickle Lake. Needless to say, constituents, families, communities, and corporations performing exploration and mining activities in the great Kenora riding have expressed serious concerns with respect to Bill C-300.
I am therefore pleased and honoured to speak to this bill on behalf of my constituents.
Many members of the House have pointed out certain practical issues that need to be considered, while recognizing the intent and the goal of this bill.
I want to reiterate that this government is a firm believer in corporate social responsibility. However, this bill is not the way to promote it.
Over the last year, the Standing Committee on Foreign Affairs and International Development has heard from almost 70 witnesses on Bill C-300. Many witnesses have raised a number of practical issues with the bill, and these must be considered while recognizing the intent of the bill. I would like to highlight some of the more significant obstacles that they have raised regarding the effective implementation of the bill.
First, Bill C-300 does not appear to include any procedural safeguards to ensure that it is consistent with Canada's procedural fairness or even every Canadian's right to a fair and public hearing by an independent and impartial tribunal. For example, Bill C-300 would not require those conducting an examination to give notice or even consider evidence from the affected company. It would, however, permit complainants to give evidence against affected parties without subjecting themselves to cross-examination. Furthermore, this bill puts at stake the rights, privileges, and interests of an affected company.
Because a negative judgment under Bill C-300 would significantly affect a company's reputation and operations, we owe our Canadian companies the right to procedural fairness.
Second, Export Development Canada—EDC—uses its trade influence to encourage businesses to develop socially responsible practices and helps businesses implement them.
The categorical nature of the compliance standards set out in this bill would force EDC to immediately cut off any association with any Canadian business that fails to fulfill its corporate social responsibility.
This means that if Bill C-300 becomes law, EDC's ability to provide lending and insurance to companies in the extractive sector will be seriously compromised, without providing any real corporate social responsibility benefit.
Once again, if Bill C-300 is enacted, EDC's capacity to provide loans and insurance to companies in the extractive sector will be seriously compromised, and there will be no real corporate social responsibility benefit.
In the last year alone, EDC's support is estimated to have generated $61 billion in Canadian GDP, which amounts to 5¢ of every Canadian dollar, and sustained 642,000 jobs in communities across the country. When we consider that the extractive sector comprises one-third of EDC's total business volume, we can appreciate the impact that EDC's departure from the market would have on working families here at home. This clearly highlights the economically reckless and irresponsible nature in which this bill was conceived.
Third, the department already has two mechanisms in place to assist in the resolution of disputes: the National Contact Point for the OECD Guidelines for Multinational Enterprises, and the Extractive Sector Corporate Social Responsibility Counsellor. Both of these mechanisms focus on improving the performance of Canadian companies. This allows for longer-term solutions that benefit all parties involved.
By comparison, Bill C-300 is largely punitive. Unfortunately, in many cases the Government of Canada does not have the leverage over extractive companies that the bill presumes. Junior companies, especially, often do not seek the government support this bill proposes to deny them. In these cases, the company would not be compelled to change its performance under the threat of Bill C-300.
The implication is that this bill would see changes we do not want, because a prejudicial regime such as that proposed by this reckless bill could serve only to encourage more companies to leave Canada.
Those companies might see the constructive mediation provided by the national contact point and the corporate social responsibility counsellor as a better way to enhance their performance and be more competitive.
That is what mining companies in Canada are saying about the bill. In fact, a number of witnesses also put forth that the bill would discourage companies from maintaining offices in Canada. Instead, they would relocate to another jurisdiction. Why risk such a result when we have a strategy that is working? That is the question.
The punitive framework of Bill C-300 contrasts with the constructive, productive, and effective mediation offered by the National Contact Point and the Corporate Social Responsibility Counsellor.
Regrettably, Bill C-300 could be counterproductive to the existing mechanisms, since a company might not want to engage in the informal mediation if the information it provides could subsequently be used against it in a complaint under Bill C-300. It burns goodwill and good faith.
Fourth, the bill proposes changes to the Special Economic Measures Act. It is not clear why an act that deals with state-to-state relations would appear in a bill designed to regulate the activities of corporations.
Fifth, even if the consequential amendments that are proposed are applied domestically, the bill may constitute an extra-territorial application of Canadian law since it would be regulating the activities of Canadian companies outside Canada's jurisdiction.
Many countries, including many of our trading partners, would likely take issue with the patronizing implication that Canada viewed their laws as inferior. Likewise, it might harm diplomatic relations if we were to send teams of investigators into these countries, especially if they were in the process of conducting their own investigations.
Sixth, we have serious concerns about whether there is the constitutional authority to enact Bill C-300. The regulation of business, including issues relating to human rights and the environment, is constitutionally a matter for provincial jurisdiction, with regard to property and civil rights. Therefore, there is a serious risk that the regulatory scheme of complaints, examinations, and published findings envisioned by Bill C-300 would be found to be unconstitutional. Simply put, there does not appear to be any federal head of power that clearly authorizes Parliament to establish the regulatory scheme as proposed in Bill C-300.
Seventh, and finally, Canada's missions abroad provide critical advice on corporate social responsibility to Canadian companies. Bill C-300 would prevent our missions from engaging companies facing difficulties and would prevent us from helping to resolve their disputes.
For these reasons, we feel that the government's corporate social responsibility policy is a more effective way of helping Canadian extractive companies continue to develop a social licence to operate. As discussed in the past, building on Canada's commitment to the OECD's Guidelines for Multinational Enterprises and our country's National Contact Point, the government's strategy describes four specific initiatives for action that outline our commitment to promoting best practices for Canadian companies operating abroad.
The government has supported the development, outside government, of a multi-stakeholder Centre for Excellence in Corporate Social Responsibility that will help the Canadian extractive sector to implement these voluntary performance guidelines in their operations abroad.
We applaud organizations like the Prospectors and Developers Association of Canada who have developed e3 Plus, A Framework for Responsible Exploration, which is intended to complement established norms for corporate behaviour as exemplified by the OECD Guidelines for Multinational Enterprises and the United Nations Global Compact.
Our efforts promote corporate and social responsibility, both domestically and abroad. I ask all members from both sides of the floor for their support as we continue to take measures to ensure that Canadian companies can make the most of our global opportunities.