Bill C-300

Bill C-300 was tabled as a private member’s bill in the House of Commons by John McKay (Liberal) on February 9, 2009. The bill proposes that Canadian services and benefits to extractives sector companies operating abroad be contingent upon meeting specific standards for corporate social responsibility (CSR). In other words, if a Canadian-incorporated mining, oil or gas company is deemed to have acted contrary to certain guidelines (not yet defined), punitive measures would result, including cutting off Export Development Canada (EDC) financing and Canada Pension Plan investment.

Industry, government, and multi-party collaborative efforts to enhance Canada’s lead role in CSR are already underway. These will result in much more progress than a punitive approach to this important policy area. We urge the Standing Committee and MPs not to support Bill C-300, but rather to support the federal CSR Strategy together with these other collaborative initiatives in CSR which accentuate the positive aspects of foreign economic development, particularly in developing countries.

AME BC actively supports high standards in CSR, and devotes considerable resources to CSR by assisting its members with information, networking and partnerships, and innovation. BC is home to the largest cluster of mineral exploration companies in the world. We believe that Bill C-300 would have significant negative impacts on our sector and on the investments our companies make around the world in local health, safety, education and training, and infrastructure. It also would have a profound impact on suppliers to the sector, including legal, accounting, securities, and equipment.

While the bill proposes sanctons for Canadian companies operating abroad, it does not provide for the substantial resources required to conduct investigations to a minimum standard of procedural fairness, nor even the right of a company to properly defend itself from allegations. As well, the proposed legislation does not safeguard companies from the serious impacts resulting from unfounded allegations of wrongdoing. While allegations would be publicized for the duration of an investigation, a subsequent finding that the company indeed acted in accordance with guidelines would not repair the damage to its reputation and ability to attract investment. Moreover, it would apply a standard of international customary law which is, as yet, ill defined.

The legislation also references “voluntary principles on security and human rights” which are established by foreign governments in the United Kingdom and United States over which the Government of Canada has no input or control.
Bill C-300 fails to acknowledge that Canadian companies are already recognized as global leaders in CSR, and instead it proposes a punitive approach that does not take into account the many factors that contribute to social and environmental issues. Moreover, Bill C-300 would deter Canadian companies from acquiring local companies or projects that are in need of investment to improve their business and social practices. Rather it would encourage foreign entities not subject to the proposed legislation to continue what are, in many instances, counterproductive to responsible mineral development.

Fundamentally the legislation, as proposed, offers few tangible opportunities for companies and their local partners to engage in CSR improvement. On the other hand the legislation allows for significant harm to industry. There is no doubt that the lives of people in developing nations can be improved by the flow of investment if done properly. This bill in no way facilitates the potential positive impacts that result from the operations of many Canadian companies overseas. As a purely punitive piece of legislation, the bill offers nothing to facilitate improvement of derelict operators or recognize exceptional behavior by more progressive companies.

The federal government implemented a new CSR Strategy for the International Extractive Sector in March 2009 following an extensive series of consultations and report of the National Roundtables on CSR and the Extractive Industry in Developing Countries. The Strategy contains three main components: a) social responsibility, b) environmental stewardship, and c) health and safety. A CSR Counselor was recently appointed to spearhead the federal initiative and to review complaints. The DFAIT is now collaborating with the Canadian Institute of Mining, Metallurgy and Petroleum and a wide range of interest organizations to create a CSR Centre for Excellence that will further enhance the ability of Canadian companies to implement leading practices in CSR.

The PDAC has made a submission to the federal government on Bill C-300 which AME BC endorses. AME BC also is meeting with federal representatives to share our perspectives on the bill.

Download PDF Version 

Additional Information

Mining Association of Canada - Bill C-300 Myths & Facts

Mining Association of Canada - Bill C-300 Briefing Note - November 2009