Bill C-300: calling mining companies to account

Posted on May 27, 2010
NO: It will improve corporate practice
 
By John McKay May 26, 2010
 
The core argument of the mining industry is that C-300 (The Responsible Mining Bill) would cause reputational damage to mining companies. That is nonsense. C-300 didn’t cause reputational damage in the case of the allegations of murder against Blackfire in Mexico; it’s not even clear that C-300 would apply to the Mexican situation.

What is clear, however, is that Canada’s reputation is being harmed by the actions of irresponsible mining companies. When our own governor-general faces protesters chanting “Canada, go home,” it’s hardly a good day for our relationship with the Mexican people.

Our troubles don’t end in Mexico, though. In Honduras, Guatemala, Chile, Argentina and in literally dozens of other countries, complaints are being raised against Canadian-based mining companies. Our national reputation is being abused.

Witness after witness at the Foreign Affairs and International Trade committee testified of incidents which, if they were to happen here, would give rise to jail terms, fines and lawsuits.

With an image such as this of our companies abroad, it is no wonder then that Canadians are no longer being met with the warm reception that we once took for granted.

Recently in committee, witness Steven Schnoor told a story of having to black out the Canadian flag on the back of his hat, and to quote Schnoor he “did this for [his] own safety.”

Other witnesses before committee, such as Tyler Giannini of the Human Rights program at Harvard Law School and Sarah Knuckey of the University of New York University’s Center for Human Rights and Global Justice, gave damning testimony on the practices of Canadian mining companies, which they witnessed in Papua New Guinea. Testimony was also given by Alex Neve, the secretary-general of Amnesty International Canada; Michael Casey, executive director of the Canadian Catholic Church’s Development and Peace organization; Richard Janda from the McGill University’s law school; Daviken Studnicki-Gizbert, a McGill history professor; Stephen Hunt, district director from United Steelworkers; Toby Heaps, the founder of Corporate Knights; and even former Argentine environment minister Romina Picolotti, who has fought her fair share of battles with Canadian mining companies.

This is only part of a long list of credible and respected individuals who have come forward to speak to this issue. Even witnesses against the bill, such as Carlo Dade, who testified on behalf of Focal, have admitted that for every two happy cases there is often an unhappy case.

With upwards of 4,000 mining projects operating internationally, this makes for a lot of unhappy cases.

The mining industry’s response to this testimony has been to brush it off, deny it or attack the credibility of the witness. With the evidence mounting to substantiate the testimony, though, this tactic of deny, deny, deny is becoming less and less believable.

The hearings before the Foreign Affairs committee, though, are just one small part of the growing and incontrovertible evidence that shows Canada has a serious corporate-social-responsibility problem in the extractive industry. It also points to Bill C-300 as a step in the right direction. C-300 seeks to bring accountability and transparency to incidents of breaches of environmental and corporate social-responsibility standards. If a company is found to be non-compliant, the sanctions to be applied would be a direction by a Minister of the Crown to withdraw our investments in Export Development Canada and the Canada Pension Plan.

These sanctions are neither drastic nor unreasonable. It should be the responsibility of companies operating overseas to use mining practices that respect human rights. The witnesses and the Canadian public want Canada, as the world centre for mining financing, to be accountable for its investments. If Canada invests in these companies through EDC and CPP, surely it’s not too much to ask that Canadian mining companies account to the Canadian taxpayers and pensioners in a transparent fashion.

The mining companies and their lawyers have made the argument that this small bill will destroy the Canadian mining industry and drive companies out of Canada.

Their “sky is falling” argument is losing credibility. Canada is the world centre for mining. It has the best technology, the biggest companies, the most expertise and the most favourable conditions. When C-300 passes, these facts will remain the same. Good corporate social responsibility is good for business, and good business is good corporate social responsibility. A responsible mining bill is good for Canada.

It is more than a little perplexing to me, then, why mining companies have put up such an enormous fight against such a modest bill.

So, as abuse heaps upon abuse and the government stonewalls, and ridicules the credibility of witnesses and appoints a toothless counsellor, the problems of the mining industry remain. The call for action on this issue is neither drastic nor frivolous nor vexatious. Yet it has been met with enormous resistance.

Bill C-300 is a modest proposal that can be seen as a limited stepping stone to better corporate practice. Perhaps the only reason that can be given for the resistance is a proverb that comes from the Bible: “There are none so blind as those who will not see.”

John McKay is a Liberal member of Parliament for Scarborough-Guildwood in Ontario.

© Copyright (c) The Vancouver Sun

 

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