Graham Allen: Bill C-300 would make Canada world leader in mining accountability

By Graham Allen

Last October, I wrote an opinion piece that concluded by asking for support for Bill C-300. This is the private member’s bill that was introduced into the House of Commons by Liberal MP John McKay in February 2009.

The avowed purpose of Bill C-300 is “to ensure that corporations engaged in mining, oil or gas activities and receiving support from the Government of Canada act in a manner consistent with international environmental best practices and with Canada’s commitments to international human rights standards”. There are three essential parts to the contemplated legislative regime:

1. The responsible ministers, those of foreign affairs and international trade, are charged with the task of issuing guidelines, within 12 months of enactment, to articulate corporate accountability standards for mining, oil, or gas activities. These guidelines will incorporate specified standards that are already in effect, together with other provisions “consistent with international human rights standards”.

2. Citizens or residents of Canada or of the developing country involved can submit written complaints to the ministers if they consider that a mining, oil, or gas company is not complying with the guidelines. The ministers have full power to investigate the complaint, including taking evidence from witnesses outside Canada, and the results will be published in the Canada Gazette.

3. Both Export Development Canada and the Canada Pension Plan, by amendment of their governing statutes, will be required to take into account the guidelines before financing, insuring, or investing in mining, oil, or gas companies. In addition, they will be required to cease involvement with any such company found to be not complying with the guidelines.

Nobody would claim that Bill C-300 is the panacea for all issues of corporate accountability. McKay himself has characterized it as “a step on the way”. But, despite the limitations on what a private member’s bill can achieve—notably the inability to expend public funds—the passage of Bill C-300 would provide an unprecedented accountability mechanism for Canadian mining, oil, and gas companies in their overseas operations, establishing Canada as a world leader in this important area. Bernard Membe, Tanzania’s minister of foreign affairs and international cooperation, was reported to have commented: “If the Canadian government would have that capacity to hold their mining companies responsible and accountable...that would be a very, very good idea.”

Bill C-300 is presently being considered by the standing committee on foreign affairs and international development. That process is scheduled to end on June 10, but there is the possibility of a 30-day extension if the committee members agree. However, regardless of any extension, time is obviously getting short in which to have input with the standing committee and, more crucially, to prepare for the big event of third reading. Already groups such as the Prospectors and Developers Association of Canada have urged their members to lobby against “this potentially disastrous piece of legislation”. And certain journalists are waxing lyrical in their opposition. Consider the following Avatar comparison from Peter Koven of the Financial Post:

Picture this scenario: A sinister mining company travels to a faraway land and with the help of a psychotic militia, it rapes the land of its natural beauty and slaughters its eco-loving inhabitants.

That is the plot of Avatar, the highest-grossing movie to date. Koven suggested that the allegations made during hearings on Bill C-300 paralleled this plot!

So the fight is definitely on—and the forces opposed to Bill C-300 seem organized and determined. If you support Bill C-300, this is accordingly the time. You can get involved now by sending a message to committee members.

Graham Allen is a lawyer practising with Boughton Law Corporation. He specializes in arbitrations, property-tax assessment, and First Nations economic development. Allen has been a member of Amnesty International since his teens, and is presently studying for a master’s degree in international human-rights law at the University of British Columbia.

Comments

4 Comments

David Clarry

Apr 5, 2010 at 11:51pm

For all the detailed legal and business concerns raised regarding C-300, Mr. Allen chooses to characterize the opposition to the bill with a very unclear reference to some hyperbole from an article in the National Post. He also inaccurately described the Bill - step 2 is that the Minister MUST investigate the company if a single complaint is received, and if that complaint is malicious (for example a competitor for a mining property that wishes to disadvantage a Canadian company) there is no penalty for the person submitting the malicious complaint.

Also, while Mr. Allen appreciates the views of Mr. Membe, a key aspect of CSR and policy of the Canadian government is local "capacity building", something that would be subverted by C-300. Mr. Membe's characterization of the world with C-300 in place is "our role in Tanzania is just to whisper to the embassy or anybody, ”˜There is this thing, please take charge”¦.’". Many people believe instead we should be supporting Tanzania (and other countries) taking charge.

A better characterization of some of the concerns regarding C-300 can be found in the recent participation by EDC's senior vice-president for legal affairs, Jim McArdle, on a Globe 2010 panel. His concerns were summarized in an article in the Vancouver Sun http://www.vancouversun.com/business/Export+development+agency+opposes+r.... Another more detailed listing of concerns has been presented by the Prospectors and Developers Association of Canada on their web-site: http://www.pdac.ca/c300/documents/bill-c-300-position-statement-final.pdf.

For those of you who are interested, the C-300 debate is much richer and more thoughtful than implied by Mr. Allen. If you want to delve into more detail you can also visit http://www.digdeeperoncsr.com/.

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ds

Apr 6, 2010 at 11:09am

they should pass a bill that makes the goverment more accountable first
and then worry about the rest of the world

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MT

Apr 17, 2010 at 6:43am

A world leader? We are a world leader. Right now companies from around the world flock to Canada to list on our exchanges adding to our tax base and creating jobs. Bill C-300 would reverse that trend. I don't think the average person who signs their name to a petition and sends in letters to their MP truly understands what this bill will do to the Canadian economy.

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laurabrite

Sep 20, 2010 at 11:05am

It's always about the economy isn't it? How can it take precedence over human rights; how do people support the economy's supremacy when clear and heinous violations of human rights are carried out in the regions that make us rich?
I dont think the average person who opposes this Bill truly understands how dire the need is for more accountability, transparency and responsibility in the Canadian mining industry operating abroad.
For all the talk about hurting the economy, I have yet to see any numbers that show projected financial damage to the industry/our economy.

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