Commentary. Desperately seeking sanction: Canadian extractive companies and their public partners

Abstract ABSTRACT In 2009, a private member's bill was introduced in the House of Commons to create accountability mechanisms for government political and financial support to extractive companies whose overseas operations are associated with conflict, environmental degradation or human rights abuses. Bill C-300 received broad endorsement but was ultimately defeated in the House of Commons by a slim margin. This article examines the origins of the bill, the perspectives of diverse stakeholders and the political dynamics surrounding the bill's advancement through the legislative process. Résumé En 2009, un projet loi privée était déposé à la Chambre des communes pour que le soutien financier et politique du gouvernement canadien aux entreprises d'extraction qui sont associées à des conflits, la dégradation environnemental ou les violations des droits humains soit redevable aux contribuables canadiens. La loi C-300 a fait l'objet d'un soutient plutôt important, mais elle a été défaite par faible majorité. Cet article explore les origines de la loi, les perspectives des parties prenantes et les dynamiques politiques associées à cette loi. Keywords: extractive industrycivil societyCSRCanada Notes House of Commons of Canada, 2009. “Bill C-300: An Act respecting Corporate Accountability for the Activities of Mining, Oil or Gas in Developing Countries”. Second Session, Fortieth Parliament, 57–58 Elizabeth II, 2009. First Reading 9 February 2009. http://www2.parl.gc.ca/HousePublications/Publication.aspx?DocId=3658424&Language=e&Mode=1/. See section below, “Origins of the bill”. See Parliamentary testimony on Bill C-300 by the following: Anthony Andrews, Executive Director, Prospectors and Developers Association of Canada, to the Standing Committee on Foreign Affairs and International Development, 17 November 2009, http://www.parl.gc.ca/HousePublications/Publication.aspx?DocId=4231494&Language=E&Mode=1&Parl=41&Ses=1/ Shirley-Ann George, Senior Vice-President, Policy, Canadian Chamber of Commerce, to the Standing Committee on Foreign Affairs and International Development, 25 May 2010, http://www.parl.gc.ca/HousePublications/Publication.aspx?DocId=4547693&Language=E&Mode=1&Parl=41&Ses=1/; James Peterson, Counsel, Fasken Martineau DuMoulin, to the Standing Committee on Foreign Affairs and International Development, 26 November 2009, http://www.parl.gc.ca/HousePublications/Publication.aspx?DocId=4266713&Language=E&Mode=1&Parl=41&Ses=1/; and Grant Manuge, Director General, Trade Commissioner Service, Operations, Department of Foreign Affairs and International Trade, 1 December 2009, http://www.parl.gc.ca/HousePublications/Publication.aspx?DocId=4281177&Language=E&Mode=1&Parl=41&Ses=1/. In a position statement of 26 November 2009, Barrick Gold says the bill would create incentives to relocate: http://www.barrick.com/investors/news/news-details/2009/BarrickGoldSetsOutPositiononBillC-300andProvidesFacts1121285/default.aspx. In a position statement of August 2009, the PDAC says companies will be forced to seriously consider leaving: http://www.pdac.ca/pdac/publications/na/pdf/090812-bill-c-300-position-statement.pdf. Aside from mining company statements, the following persons made a similar point before Parliament. James Peterson, counsel at Faskin Martineau, addressed this question in the Q&A following his testimony (26 November 2009): http://www.parl.gc.ca/HousePublications/Publication.aspx?DocId=4266713&Language=E&Mode=1&Parl=41&Ses=1. Shirley-Ann George, Senior VP, Canadian Chamber of Commerce, testified on 25 March 2010 that the bill “would drive Canadian extractive companies, the vast majority of which do behave responsibly and are considered to be globally responsible leaders, to move their base of operations outside of Canada”: http://www.parl.gc.ca/HousePublications/Publication.aspx?DocId=4547693&Language=E&Mode=1&Parl=41&Ses=1. The CNCA unites environmental and human rights NGOs, faith groups, labour unions, and research and solidarity groups across Canada who are advocating for federal legislation to establish mandatory corporate accountability standards for Canadian extractive companies operating abroad, especially in developing countries. See www.cnca-rcrce.ca. See Prime Minister Stephen Harper's statement at the 2012 Summit of the Americas: “PM Delivers Remarks at Business Summit on the Margins of the Summit of the Americas”, Cartagena, Colombia, 14 April 2012. http://www.pm.gc.ca/eng/media.asp?id=4743/ The text of the UN Framework for Business and Human Rights is at http://198.170.85.29/Ruggie-report-7-Apr-2008.pdf. The information website for the UN Secretary-General's Special Representative on business and human rights (John Ruggie) is at http://www.business-humanrights.org/SpecialRepPortal/Home. Examples in Latin America include operations in the Dominican Republic by Barrick and Goldcorp (MAC Citation2010a, 2010b); Talisman's operations in the Peruvian Amazon (“The Achuar and Talisman's Energy”, Amazon Watch: http://amazonwatch.org/work/talisman; and Kinross's Morro do Ouro mine in Brazil (Ministerio Publico Federal em Minas Gerais Citation2009). See http://www.cppib.com/. For example, at 31 March 2011, the CPP held equity in the companies mentioned in note 8 above: specifically, $219 million in Barrick Gold, $177 million in Goldcorp, $71 million in Talisman and $72 million in Kinross. See www.cppib.com. Critics have pointed out that Canadian mining junior Manhattan Minerals obtained its interest in the controversial Tambogrande mine concession shortly after participating in a Team Canada trade mission to Peru (Natural Resources Canada Citation1998). For more on the controversy over this project, see Rousseau and Meloche Citation(2002). See CBC News, “Ecuadorian President Reassures Mining Firms”, 25 April 2008. http://www.cbc.ca/news/business/story/2008/04/25/ecuadormining.html?ref=rss/. As originally drafted, C-300 conflicted with provisions of the Canada Pension Plan Investment Board Act. A proposed amendment would have avoided this conflict by requiring that CPPIB investment managers “take into account the results of examinations and reviews undertaken” under Bill C-300. In other words, these managers would not have been required to divest from extractive companies that are noncompliant with the standards established under C-300, as originally proposed. Established in 2000, the Voluntary Principles on Security and Human Rights – an initiative by governments, NGOs, and companies – provides guidance to extractives companies on maintaining the safety and security of their operations within an operating framework that reportedly ensures respect for human rights and fundamental freedoms. The Voluntary Principles (VPs) are the only human rights guidelines designed specifically for oil, gas, and mining companies. http://www.voluntaryprinciples.org/files/voluntary_principles_english.pdf. See, for example, http://www.miningwatch.ca/news/centerra-gold-inc-flouting-mongolia-s-environmental-protection-laws-organizations-file. See, for example, “Indigenous Chileans Take Mining Giant to International Court: Chile to Face Two Different Accusations of Human Rights Abuses on the Same Day”, Observatorio Latinoamericano de Conflictos Ambientales News Release, 20 October 2011 (http://olca.cl/articulo/nota.php?id=101192/); “Congolese Victims Pursuit of Justice against Canadian Company Goes to Supreme Court”, Canadian Centre for International Justice News Release, 26 March 2012 (http://www.ccij.ca/media/news-releases/2012/index.php?DOC_INST=3/); “Ecuadorians Lose Appeal in Lawsuit Against Canadian Mining Company and TSX: Canadian Law Continues to Fail Communities Harmed by Canadian Mining Overseas”, Ramirez v. Copper Mesa & TSX, March 2011 (http://www.ramirezversuscoppermesa.com/); and “Choc v. HudBay Minerals Inc. & Caal v. HudBay Minerals Inc.: Lawsuits against Canadian Company HudBay Minerals Inc. over Human Rights Abuse in Guatemala” (http://www.chocversushudbay.com/). See, for example, “Choc v. HudBay Minerals Inc. & Caal v. HudBay Minerals Inc.”, http://www.chocversushudbay.com/about#Summary%20of%20Caal/. The mission of the Canadian Network on Corporate Accountability (CNCA) is to advocate for federal legislation to establish mandatory corporate accountability standards for Canadian extractive companies operating abroad, especially in developing countries. The network aims to enhance the effectiveness of its members' activities through information sharing, policy analysis and research, and to coordinate joint advocacy for legal and policy reform. The CNCA also seeks to promote public awareness of these issues. http://cnca-rcrce.ca/about-us/mission/. An important partner in Latin America is the Latin American Observatory of Mining Conflicts (OCMAL). This network was formed in 2006 and includes roughly 40 organisations from across the region. The network's central objective is to promote greater social and environmental justice in areas impacted by the industry. OCMAL seeks respect for the rights of those communities who are affected or threatened by mining activity, including their chosen paths of development. See http://www.conflictosmineros.net/. “Letter from 39 Latin American Human Rights Organisations Supporting Bill C-300” (in Spanish): http://www.miningwatch.ca/sites/miningwatch.ca/files/Carta_de_respaldo_ley_C-300.pdf. In English: http://www.miningwatch.ca/article/letter-39-latin-american-human-rights-organizations-supporting-bill-c-300. Due to prorogation, the Committee was afforded more than one session of hearings. Testimony by Chris Albin-Lackey, Senior Researcher, Human Rights Watch and Harvard Law School, to the Standing Committee on Foreign Affairs and International Development, 3 June 2010. http://www.parl.gc.ca/HousePublications/Publication.aspx?DocId=4588646&Language=E&Mode=1&Parl=41&Ses=1#Int-3203505/. Testimony by Shanta Martin, Head of Business and Human Rights, International Secretariat Amnesty International, to the Standing Committee on Foreign Affairs and International Development, 25 May 2010. http://www.parl.gc.ca/HousePublications/Publication.aspx?DocId=4547693&Language=E&Mode=1&Parl=41&Ses=1#Int-3407887/. Letter from Senator Benjamin L. Cardin, Chairman, US Commission on Security and Cooperation in Europe to the Honourable John McKay, 26 October 2010. In his testimony before the Parliament's Standing Committee on Foreign Affairs and International Development (7 May 2012), Stephen Brown links the two actions by CIDA. Stephen Brown, Associate Professor, School of Political Studies, University of Ottawa, to the Standing Committee on Foreign Affairs and International Development, 7 May 2012. http://www.parl.gc.ca/HousePublications/Publication.aspx?DocId=5559228&Language=E&Mode=1&Parl=41&Ses=1#Int-7563563. Letter from James Crossland, Senior Vice-President, Government Relations and Corporate Affairs, Kinross Gold Corporation to Ministers Maxime Bernier and David Emerson, 15 October 2007; letter from Barrick Gold Corporation to Ministers Maxime Bernier, Gary Lunn and David Emerson, 11 October 2007. PDAC Response to the Federal Government on the CSR Roundtable Advisory Group Report. 19 July 2007. http://www.pdac.ca/pdac/publications/na/pdf/070725-csr-full-response.pdf/.

Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.