FAIT Committee Meeting

MINUTES OF PROCEEDINGS

Meeting No. 36

Thursday, October 25, 2001

The Standing Committee on Foreign Affairs and International Trade met at 9:10 a.m. this day, in Room 308, West Block, the Chair, Bill Graham, presiding.

Members of the Committee present: Jean Augustine, Hon. George Baker, Aileen Carroll, Bill Casey, Rick Casson, John Duncan, Bill Graham, John Harvard, Marlene Jennings, Stan Keyes, Pat O'Brien, Pierre Paquette, Bernard Patry, Svend Robinson.

Acting Members present: Yves Rocheleau for Francine Lalonde; Gérard Binet for Aileen Carroll; Mac Harb for Diane Marleau.

In attendance: From the Parliamentary Research Branch of the Library of Parliament: Peter Berg, Gerald Schmitz, Research Officers.

Witnesses: From the Export Development Corporation: A. Ian Gillespie, President and CEO; Mary Grover-LeBlanc, Vice-President, Corporate Representation; Eric Siegel, Executive Vice-President, Medium and Long-term Financial Services; Gilles Ross, Senior Vice-President, Legal Services and Secretariat. From the Department of Foreign Affairs and International Trade: Martin Jensen, Officer, Export Financing Division; Agnès Levesque, Legal Council, Justice Legal Services Division.

Pursuant to its Order of Reference of Tuesday, October 2, 2001, the Committee resumed consideration of Bill C-31, An Act to amend the Export Development Act and to make consequential amendments to other Acts (See Minutes of Proceedings, Thursday, October 18, 2001, Meeting No. 33).

On Clause 1.

Ian Gillespie made an opening statement and, with the other witnesses, answered questions.

At 10:34 a.m., the sitting was suspended.

At 10:53 a.m., the sitting was resumed.

The Committee proceeded to Clause-by-Clause consideration of the Bill.

Clause 1 carried.

Clause 2 carried.

On Clause 3,

Pierre Paquette moved, -- That Bill C-31, in Clause 3, be amended by adding after line 2 on page 2 the following:

"(4) Section 2 of the Act is amended by adding the following in alphabetical order:
"environment" means the components of the Earth, and includes
(a) land, water and air, including all layers of the atmosphere,
(b) all organic and inorganic matter and living organisms, and
(c) the interacting natural systems that include components referred to in paragraphs (a) and (b);
"environmental assessment" means, in respect of a project, an assessment of the environmental effects of the project that is conducted in accordance with this Act;
"environmental effect" means, in respect of a project,
(a) any change that the project may cause in the environment, including any effect of any such change on health and socio-economic conditions, on physical and cultural heritage, on the current use of lands and resources by local communities, or on any structure, site or thing that is of historical, archaeological, paleontological or architectural significance, and
(b) any change to the project that may be caused by the environment;
"mitigation" means, in respect of a project, the elimination, reduction or control of the adverse environmental effects of the project, and includes restitution for any damage to the environment caused by such effects through replacement, restoration, compensation or any other means;
"project" means
(a) in relation to a physical work, any proposed construction, operation, modification, decommissioning, abandonment or other undertaking in relation to that physical work, or
(b) any proposed physical activity not relating to a physical work;"

After debate, the question being put on the amendment, it was negatived.

Clause 3 carried.

Clauses 4 to 7 carried severally.

On Clause 8,

Pierre Paquette moved, -- That Bill C-31, in Clause 8, be amended by adding after line 28 on page 2 the following:

"8. (1) Subsection 10(1) of the Act is replaced by the following:
10. (1) The Corporation is established for the purposes of supporting and developing, directly or indirectly, Canada's export trade and Canadian capacity to engage in that trade and to respond to international business opportunities, while fulfilling Canada's international commitments."

After debate, the question being put on the amendment, it was negatived on the following recorded division:

YEAS

NAYS

Svend Robinson moved, -- That Bill C-31, in Clause 8, be amended by adding after line 28 on page 2 the following:

"8. (1) Subsection 10(1) of the Act is replaced by the following:
10. (1) The Corporation is established for the purposes of supporting and developing, directly or indirectly, Canada's export trade and Canadian capacity to engage in that trade and to respond to international business opportunities having regards to Canada’s obligations under international agreements."

After debate, the question being put on the amendment, it was negatived on the following recorded division:

YEAS

NAYS

Clause 8 carried on division.

On Clause 9,

Pierre Paquette moved, -- That Bill C-31, in Clause 9, be amended by striking out lines 3 to 33 on page 3 and substituting the following therefor:

"10.1 (1) The Corporation must conduct an environmental assessment before entering, in the exercise of its powers under subsection 10(1.1), into a transaction that is related to a project.
(2) The environmental assessment process shall include
(a) the environmental assessment; and
(b) the design and implementation of a follow-up program.
(3) The Corporation shall establish an environmental assessment process that takes into account, among other factors,
(a) the environmental effects of the project, including the environmental effects of malfunctions or accidents that may occur in connection with the project and any cumulative environmental effects that are likely to result from the project in combination with other projects or activities that have been or will be carried out;
(b) the significance of the effects referred to in paragraph (a);
(c) comments from the local communities;
(d) measures that are technically and economically feasible and that would mitigate any significant adverse environmental effects of the project;
(e) the purpose of the project;
(f) alternative means of carrying out the project that are technically and economically feasible and the environmental effects of any such alternative means;
(g) the need for, and the requirements of, any follow-up program in respect of the project;
(h) the capacity of renewable resources that are likely to be significantly affected by the project to meet the needs of the present and those of the future; and
(i) the impact of the project on local communities, which must be in accordance with Canada's international human rights commitments.
(4) The Corporation shall prepare an environmental assessment report and submit it to the Minister for International Trade.
(5) The Corporation may use all available information in conducting the environmental assessment, but where the Corporation is of the opinion that the information available is not adequate to enable it to take a course of action, it shall ensure that any studies and information that it considers necessary for that purpose are undertaken or collected.
(6) The Corporation shall take one of the following courses of action in respect of a project after taking into consideration the environmental assessment:
(a) subject to subparagraph (c)(iii), where, taking into account the implementation of any mitigation measures that the Corporation considers appropriate, the project is not likely to cause significant adverse environmental effects, the Corporation may exercise any power or perform any duty or function that would permit the project to be carried out and shall ensure that any mitigation measures that the Corporation considers appropriate are implemented;
(b) where, taking into account the implementation of any mitigation measures that the Corporation considers appropriate, the project is likely to cause significant adverse environmental effects that cannot be justified in the circumstances, the Corporation shall not exercise any power or perform any duty or function conferred on it by or under any Act of Parliament that would permit the project to be carried out in whole or in part; or

(c) the Corporation refers the project to the Minister of International Trade for a decision to authorize or not to authorize the project, where
(i) it is not clear whether the project, taking into account the implementation of any mitigation measures that the Corporation considers appropriate, is likely to cause significant adverse environmental effects,
(ii) the project, taking into account the implementation of any mitigation measures that the Corporation considers appropriate, is likely to cause significant adverse environmental effects and paragraph (b) does not apply, or
(iii) the concerns of the local communities warrant it.
10.2 (1) The Corporation shall disclose, 45 days before entering into any agreement, information on the projects in which it is participating, including
(a) the name of the borrower;
(b) the name of the host country of the project;
(c) the environmental and social considerations and the concerns of the local communities; and
(d) the amount of financial support and its terms and conditions.
(2) No provision in the Privacy Act or the Access to Information Act shall operate so as to limit or prevent the disclosure of the information referred to in paragraphs (1)(a) to (d)."

After debate, the question being put on the amendment, it was negatived.

Svend Robinson moved, -- That Bill C-31, in Clause 9, be amended by striking out lines 12 to 14 on page 3 and substituting the following therefor:

"(b) if such is the case, that the Corporation shall not enter into the transaction unless there is demonstrable justification for doing so."

After debate, the question being put on the amendment, it was negatived.

Svend Robinson moved, --That Bill C-31, in Clause 9, be amended by striking out lines 31 to 33 on page 3.

The question was put on the amendment and it was negatived on the following recorded division:

YEAS

NAYS

Clause 9 carried on division.

Clause 10 carried.

On Clause 11,

Pierre Paquette moved, -- That Bill C-31, in Clause 11, be amended by striking out line 27 on page 4 and substituting the following therefor:

"Auditor General must, at least once every two"

The question being put on the amendment, it was negatived.

Clause 11 carried on division.

On Clause 12,

Svend Robinson moved, -- That Bill C-31, in Clause 12, be amended by striking out lines 38 to 46 on page 4 and lines 1 to 12 on page 5.

The question being put on the amendment, it was negatived.

Clause 12 carried on division.

Clauses 13 to 32 carried severally on division.

The Title carried.

The Bill, carried on the following recorded division:

YEAS

NAYS

ORDERED, -- That the Chair report Bill C-31, without amendments to the House as the Ninth Report of the Committee.

At 12:15 p.m., the sitting was suspended.

At 12:18, the sitting was resumed in camera.

The Committee considered its future business.

It was agreed, --That That the Sub-Committee on Human Rights and International Development be authorized to hold a breakfast meeting on Wednesday, October 31 at 7:30 a.m. to meet with Mr. Jan Egeland, Special Advisor to the Secretary General of the United Nations on International Assistance to Colombia, with the cost of the breakfast not to exceed $250.00.

It was agreed, --That the Committee undertake the study of Bill C-35, An Act to amend the Foreign Missions and International Organizations Act during the Committee’s usual meeting time on October 30, November 1, November 6 and November 8 and that clause-by-clause study take place during the afternoon of November 8, subject to confirmation of the availability of Committee members.

At 12:40 p.m., the Committee adjourned to the call of the Chair.

Stephen Knowles

Clerk of the Committee