Mr. Speaker, to get up after my colleague from Niagara West—Glanbrook is filling big shoes, but it is a pleasure today to speak to Bill S-14. On February 5, the Minister of Foreign Affairs announced our government's efforts in taking further steps to combat corruption and bribery.
Through the introduction of Bill S-14, which includes a number of amendments to the Corruption of Foreign Public Officials Act, we are redoubling our fight against bribery and corruption, strengthening Canada's anti-corruption laws and placing Canada at the leading edge of countries taking robust action against corruption, action that will benefit Canadian companies at home and abroad.
The Corruption of Foreign Public Officials Act, CFPOA, is not new. In fact, Canada has had anti-corruption legislation in place since 1999. We passed it primarily in response to the OECD's anti-bribery convention. It is a good law that has already produced several convictions. However, we have identified a number of ways in which we can make it better. These can be found in the six amendments proposed in the fighting foreign corruption act.
Others before me have briefly explained each of these amendments, so I would like to focus particularly on that which proposes to clarify the scope of the CFPOA. This specific but important amendment, the elimination of the words “for profit” from the definition of business, would clarify that the scope of the CFPOA is not limited to bribes paid by for-profit enterprises or in the course of profitable business. Eliminating the words “for profit” from the definition of business ensures that the net is cast as widely as possible. By removing the for profit requirement from the definition of business, we expand the scope of the CFPOA.
We believe this will translate into two advantages in our fight against corruption. First, we wish to seize the opportunity to target those who pay bribes on behalf of companies that may or may not earn a profit during a given year. Second, we would also target organizations whose main purpose is not for profit as well as those whose main purpose is to generate a profit. In other words, we would treat all organizations the same way in the context of foreign bribery. Whether or not an entity is capable of generating revenue and earning a profit, and whether an entity conducts business in anticipation of profit, they would receive the same treatment under the CFPOA.
With respect to the first scenario, a company not earning a profit on a given year, a gap currently exists in the legislation. This gap does not support enforcement or prosecution. A company may try to escape the application of the law by conducting their business in a manner to establish that no profit is reflected in their books. This might be accomplished by way of strategic planning and the application of appropriate accounting methodologies. There is no reason that clever accounting should make the payment of bribes legal.
Our amendment would go a long way to ensuring the act applies to all questionable activities related to bribes, by ensuring that all business activities are captured regardless of the anticipation of profit from those specific activities.
With respect to the second scenario, an entity's reason for being is either profit or not for profit. All entities should be treated in the same manner. The fight against corruption cannot be won if we make exceptions for certain organizations and not for others. If we continue with unequal treatment, we do nothing more than shift the focus of bribery transactions to the not-for-profit sector.
In addition, if we close only the gap for the for-profit sector, we would have a realistic expectation that the number of newly created not-for-profit entities would increase. Why? They would increase in order to escape detection. In other words, we would continue to have an enforcement issue in our fight against corruption and it would simply shift to the not-for-profit sector. The focus would be on determining whether the not-for-profit entities are really that: not for profit. We do not have the resources for this, nor should we. We can be more fair, more strategic and more cost-effective if we simply treat everyone the same.
We have a realistic expectation that by closing these two gaps by simply deleting the words “for profit” from the definition of “business”, we would facilitate enforcement and prosecution. After all, timely and responsive enforcement can enhance investigations and facilitate successful prosecution. In the end this is what we want: to successfully prosecute those involved in the corruption of foreign public officials.
Our government's top priority is to secure jobs, growth, and long-term prosperity. It involves pursuing an aggressive trade agenda and creating the conditions for Canadian companies and businesses to succeed. However, our government expects Canadian companies to play by the rules and compete fairly. As such, the legislation that is before us signals our commitment to fighting corruption and bribery.
These amendments would further deter and prevent Canadian companies from bribing foreign public officials and would reinforce Canada's good name. These amendments would help ensure that Canadian companies continued to act in good faith in the pursuit of freer markets and expanded global trade.
I want to read a few statements in support of this bill.
Ian Pearce, chief executive officer of Xstrata Nickel, said that as a Canadian-based company with operations and projects around the world, they applaud the government's efforts to combat corruption and bribery. He said that as part of the Xstrata group, the are committed to the highest standards of personal and professional ethical behaviour, and have a policy of zero tolerance toward any form of bribery or fraud.
Janet Keeping, chair and president of Transparency International Canada, said that Transparency International Canada is delighted that the federal government is moving to strengthen the Corruption of Foreign Public Officials Act in accordance with Canada's international obligations and encourages the government to ensure that the RCMP have the resources necessary to enforce the CFPOA effectively. She said that legal changes of the kind proposed are only as good as the government's commitment to making the law meaningful on the ground.
On Tuesday, February 5, 2013, the Hon. John Manley, former Liberal MP, said, regarding amendments to the Corruption of Public Officials Act, that good corporate citizenship at home and abroad is essential to Canada's economic success. He said that these latest measures, aimed at eliminating corruption and bribery, will strengthen Canada's already strong reputation for good governance and ethical business practices.
We have this bill before us and as I said earlier, from time to time we review many pieces of legislation in this House. At some point all legislation needs to be reviewed because, while it may be good at one point, circumstances change, and there are people out there who lay awake at night looking for loopholes and thinking of ways to skirt the system.
I certainly urge all my colleagues on all sides of the House to support this bill. If I happened to have a bunch of people from my riding here tonight, I would certainly want them to see all parties in this place stand to support this bill at the end of the night.
I would be happy to take any questions.
