Mr. Speaker, I want to begin by thanking the member for Ottawa Centre for putting forward this bill. In the past, we have had bills before this House that have dealt with corporate and social responsibility. It is an important issue, and I am most pleased to speak to it today.
I want to read one part of the bill. This is, “An Act respecting the promotion of financial transparency, improved accountability and long-term economic sustainability...”. That strikes me as almost the Conservative mantra, when I see that.
However, the reason I am particularly interested in this bill and pleased to have the opportunity to speak to it today is that in my capacity as critic for international human rights for the last eight and a half years, I have had numerous delegations. In fact, in a one-month period about a year ago, I had indigenous groups from Guatemala, Colombia, Honduras, the Philippines, and Mexico, all of whom accused their governments of removing their communities from their traditional lands to allow mining exploration and development, some of which was conducted by Canadian mining interests.
I know that Canadians from coast to coast to coast believe that Canadian mining interests would operate and function with the values that we hold dear about human rights in Canada. Unfortunately, from time to time that has been called into question. This bill would require that Canadian mining, oil, and gas corporations submit annual transparency reports that disclose all payments provided by them or their subsidiaries to a foreign government for the purposes of further mining, oil, or gas activities.
We know there have been Canadian companies called into question around Libya and other countries. We have some court cases that are under way. This type of legislative responsibility is important, not for the good mining companies, not for the people who follow the rules and have some pride in what they do, but for those companies that we would call into question their activities and how they proceed in foreign lands.
I spent time in Saudi Arabia, in the 1970s, and in that country at that time bribery was a huge undertaking. Nearly anything one needed or wanted to get done had a bribe attached to it. That is a culture that needed change. Part of the change is that countries that provide workforces to a country that functions on bribery have a responsibility to start that change.
From the reports of abuses that I heard from the indigenous groups who visited me, it is clear that part of the equation for change in those countries is contained in this bill. Clear reporting on those transactions will ensure that Canadian companies continue to use the proper due diligence in those countries with murky governments, and we all know what we are talking about here. There are governments out there that will use torture and will attack their own citizens. Members of the leadership of these indigenous groups are physically at risk as a result of standing up for what should be rights to their own traditional lands.
New Democrats have long supported transparency and accountability by Canadian corporations overseas. The member who sponsored Bill C-300 is with us here today. In fact, in that bill we had an opportunity to further corporate and social responsibility in the world by having Canada become a leader. Unfortunately, even though it was a minority Parliament, we lost, if I recall, by some 12 votes. We see that this bill further complements legislative efforts that the NDP members and others have made in this House to encourage that kind of responsibility and sustainable and transparent management practices in the Canadian extractive sector, which is then used around the world.
We also believe that the responsible management of natural resources means that part of the arrangement must provide the people of these countries with social and economic benefits. Rather than having all of the profits skimmed off, when they have a corrupt government that is practically willing to give away the resources in these countries, there must be some responsibility to ensure that the people who have lost their land receive the benefits.
It is clear to NDP members, as well, that corporate transparency about payments to foreign governments should further Canada's national foreign policy objectives, and we think it would do that.
Part of our goals as a country, for many years, has been to encourage the development of democracies around the world. Part of that, particularly, is governmental accountability. If there is a trail of transparency where we can see where the monies have flowed, when those get off base, it would be something that we could identify and act upon.
With this bill, Canada would join the growing international community that is starting to move toward disclosures of this nature. Another speaker earlier quoted the Barney Frank initiative in the United States. We also believe that enforced regulations would create a more level playing field for all Canadian companies.
In these countries, we know bribery happens and huge amounts of money are fed to governments under the table. When Canadian companies are abiding by the rules and being responsible but have been defeated in getting a chance to explore for a certain resource because someone else outbid them under the table, we have to develop international rules and regulations to ensure it does not happen.
Today, the EU, Australia, and the U.K. are considering standards similar to what was just imposed in the United States. Bill C-474 would put Canada on the path to joining those nations that believe their companies must show a commitment to corporate and social responsibility when dealing with resource development, particularly in the developing world. It would ensure that Canadian corporations are accountable for the payments they make, as I have said over the last few minutes.
The bill complies with the corporate standards of the extractive industries transparency initiative. Payments are required to be identified, under this initiative, and separated according to the specific extractive projects to which they apply. It is very direct, maybe in some terms simple, accounting for what people do, but if that payment is not linked to a specific reported project, it must be listed separately. If a payment that is listed generically is believed to apply to a specific project, the bill would authorize the Minister of Natural Resources to launch an investigation. That is what I would call true accountability.
The Transparency International bribe payers index ranks the oil and gas and mining industries as the fourth and fifth most likely sectors to issue bribes. Consider that for a moment, because Canada is a leader in resource development in both of these areas. We do not want our companies tempted or compromised into feeling they have to pay bribes in these other countries.
Two-thirds of the world's poorest people live in countries rich in natural resources. As I said before, if Canada is party to the extraction of those resources, it is part of our responsibility to ensure that those poor people benefit from that extraction and the sales of their resources. Note that I said they are their resources. Effective environment and labour standards in developing countries often depend on advocacy and activism by local populations; thus the groups that visited my office over last summer.
This bill would make sure local people are aware of the payments made to their governments by Canadian extractive companies. Beyond that, it would show where the give and take has been in those agreements and where the principles have been tested for the Canadian companies. We hope to be able to say that this bill would encourage those Canadian companies to the point where we will never see on record any evidence that they have bribed, been part of any coercion, or had anything to do with it. My belief is that companies do not do it, but this would ensure that it is not done and it would ensure direct accountability.
When the leaders of those nations see that there is an accountability chain that could cause Canadian companies to withdraw from their country, perhaps that is just the one lever that might be needed to start the change to where they treat their own people with dignity, they do not push them off the lands for exploration, and when the lands are taken and the delivery of the resources is done, the people benefit in a true way.