CIDA doles out corporate welfare to mining giants

In Oct 2010, Bill C-300, An Act respecting Corporate Accountability for the Activities of Mining, Oil or Gas in Developing Countries, went down to defeat 140 to 134 because 13 Liberals, 4 Bloc, and 4 NDP skipped the vote. The bill sought only to limit Canadian tax dollars being spent to subsidize mining abuses committed by Canadian-registered companies abroad and only if they agreed to it.


A couple of months later in January 2011, Bev Oda, Minister of 'Not Kairos' and International Cooperation, acknowledged that Canadian tax dollars were subsidizing mining companies' CSR (corporate social responsibility) projects through CIDA - half a million to Barrick Gold, another half million to Rio Tinto, etc etc up to a total of $50-million for the year.

Today's G&M : CIDA funds seen to be subsidizing mining firms

This marks the first time that CIDA and mining firms are jointly funding aid projects abroad ...         The mining industry is welcoming the new trend in Canada’s foreign-aid policy. 

“There is a policy shift under way, and it’s one we’re encouraged by,” said Pierre Gratton, the president of the Canadian Mining Association.

while World Vision Canada, a CIDA partner with Barrick Gold in Peru, put it this way  (italics mine):

 “Anything we can do to encourage and advocate for better mining practices, and support the communities that they are displacing or affecting, we’re contributing to a better lifestyle and environment for them.” 

Yes, sadly, communities will be displaced but at least our taxes will be there to help polish the image of their new corporate landlords . 


It's particularly galling that multinational mining giant Rio Tinto ($US15 billion-plus earnings in 2011) is receiving Canadian corporate welfare after locking  800 Canadian workers out on New Years Day in Quebec for protesting having their union jobs replaced by contract workers. Additionally, a court injunction only permits 20 workers to demonstrate at any one time and only at a distance of 150 metres from the front gate.


Back to the G&M :

Federal officials said the policy shift at CIDA is co-ordinated with efforts by International Trade and Natural Resources to encourage the growth of Canadian firms abroad

Sure it is.
A couple of days ago, Rio Tinto took majority control of Canada's Ivanhoe Mines which owns 66% of Mongolia's Oyu Tolgoi copper and gold mine, the rest being owned by the state of Mongolia. 
As it happens, Bev Oda was in Mongolia last August :

"looking to assist Mongolia to strengthen its democratic governance and economic growth"

 presumably with the help of China :

"In 2010, Rio Tinto said that it had held talks with its biggest shareholder, Chinalco, about the possibility of bringing in the Chinese state-owned company as a partner in Oyu Tolgoi"

Why are Canadian tax dollars subsidizing these massive multinational mining corps with corporate welfare again?
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Bill C-300 : AWOL Libs were lobbied by mining industry

A week ago the Liberal Bill C-300, An Act respecting Corporate Accountability for the Activities of Mining, Oil or Gas in Developing Countries, went down to defeat 140 to 134 because 13 Liberals including Ignatieff, 4 Bloc, and 4 NDP skipped the vote.

According to Embassy Mag today, for the month prior to the vote, opposition MPs were lobbied by consultants hired by Barrick Gold, IAMGold, Vale Canada, the Mining Association of Canada, and the Prospectors and Developers Association of Canada.

Barrick hired former Liberal cabinet minister Don Boudria, now a lobbyist with Hill and Knowlton, to target 15 Libs "multiple times" for two weeks - 13 of whom did not show up for the final vote.

The Liberal sponsor of the bill, John McKay, says he does not think that there will be "another attempt at a bill looking at corporate social responsibility for the mining sector until after another election."

You're shocked, I'm sure.
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The Bill C-300 Walk of Shame

Bill C-300, An Act respecting Corporate Accountability for the Activities of Mining, Oil or Gas in Developing Countries, was the attempt to provide a mechanism for dealing with environmental and human rights violations supported or perpetrated by Canadian companies abroad.

Despite being a Liberal bill, it barely passed second reading in the House on April 22, 2009 by a mere 4 votes, because 20 Libs and 7 Dippers missed the vote.

Yesterday in the House, the Bloc's Richard Nadeau quoted from Not on Our Watch: The Mission to End Genocide in Darfur and Beyond by Don Cheadle and John Prendergast with an introduction written by Barack Obama, published in 2007 :

"The Sudanese regime, supported by Canadian, Malaysian and Chinese oil companies, was able to wipe out whole populations in south-central Sudan, leaving the way clear for the oil companies to start pumping the oil."

and Noir Canada: Pillage, corruption et criminalité en Afrique, 2008

"In Bulyanhulu, Tanzania, bulldozers and the national police force were used to expropriate several hundred small-scale miners and clear the way for Canada's Sutton Mining to exploit the area. Fifty-two people were buried alive in that operation. Sutton Mining was then bought by another Canadian company, Barrick Gold."

The International Trade Committee has been hearing similar testimony and much worse for the last 18 months.

Today Bill C-300 went down to defeat in the House 140 to 134 because the following 13 Liberals, 4 Bloc, and 4 NDP skipped the vote (2 Bloc and 2 Cons were paired). Those with a star beside their name also missed the vote on this bill last time, which might lead one to wonder at the coincidence.

Libs : Michael Ignatieff*, Scott Brison*, Ujjal Dosanjh*, John McCallum*, Geoff Regan*, Scott Andrews, Sukh Dhaliwal, Ruby Dhalla, Martha Hall Findlay, Jim Karygiannis, Gerard Kennedy, Keith Martin, and Anthony Rota.

NDP : Charlie Angus*, Bruce Hyer, Pat Martin, and Glen Thibeault

Bloc : Monique Guay, Francine Lalonde, Carole Lavallée, and Yves Lessard.

A special shout-out to Libs Michael Ignatieff, Scott Brison, and Scott Andrews who were all present in the House today yet somehow failed to vote for Bill C-300.
Bruce Hyer of the NDP was there to vote on the 14 amendments to this bill just prior to the vote but not for the final vote.

Cowards. Shame on you all.
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Bill C-300 : In the minefield of the International Trade Committee

Canada is #1 in the world in mining and extractive industries in foreign countries. With over a thousand mining and exploration companies in 100 countries - about 5,000 projects - Canada has well over 50% of the global exploration and mining companies. There have been noises about human rights abuses.

On March 26, 2009, the Cons tabled a policy to deal with corporate social responsibility abroad : a "centre of excellence", a voluntary industry compliance strategy, and a Con-appointed corporate social responsibilty official, Marketa Evans, who will report to the minister of trade once a year. She has no power to investigate abuses if the corps in question do not agree to it.
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International human rights standards, however, refer to people, not corporations.
Bill C-300, An Act respecting Corporate Accountability for the Activities of Mining, Oil or Gas in Developing Countries, attempts to provide a mechanism for dealing with environmental and human rights violations supported or perpetrated by Canadian companies abroad.
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From the Committee on Foreign Affairs and International Development :
Oct 8 : A Canadian copper mine in the Philippines was dumping mine waste in the ocean. Its earthen dams broke, inundating villages below with toxic mine waste. Parents of dead children were paid $23 per child.
In Ecuador a Canadian mining company's paramilitary agents issue death threats to local villagers opposed to the mine.
In Tanzania, a Canadian gold mine is leaking cyanide into surrounding rivers.
Norway's government pension fund has dropped its shares in a Canadian mine in Papua New Guinea because it "dumps its tailings and its waste directly into a huge tropical river system".

Oct.20 : A Canadian mining company in Papua New Guinea :

Numerous accounts of rapes show a similar pattern. The guards, usually in a group of five or more, find a woman while they are patrolling on or near mine property. They take turns threatening, beating, and raping her. In a number of cases, women reported to me being forced to chew and swallow the condoms used by guards during the rape.

Oct 22 : A tailings dam failure in Guyana in which the Canadian gov refused to hear the suit, a large cyanide spill at the EDC-supported mine in Kyrgyzstan, irreversible damage to local glaciers in Argentina, troops kill artisan miners in Tanzania to make way for a Canadian gold mine. Etc etc through about 30 countries.
Lawsuits are tried in the US courts because there is no opportunity to try them in Canada.

Export Development Canada is a crown corporation export credit agency, providing 8,300 Canadian companies operating abroad, mostly mining companies, with advice, debt insurance, and start-up financing money.
In response to questions about the need for Bill C-300 to safeguard human rights, Jim McArdle, a lawyer for EDC, explained that EDC is concerned that C-300 would force them to yank funding from Canadian corps found to be committing human rights abuses, and this would have a chilling effect on companies considering applying to the EDC for assistance. Despite already having their own CSR (corporate social responsibility) advisory group and a compliance officer, EDC has yet to yank funding from a single Canadian corp for any violation.

Further, McArdle said Canada adopting C-300 would "take Canadian companies out of the game", give other countries an unfair advantage, and likely result in our companies relocating to another country with less stringent rules.
Hey, I guess that's why we're currently #1.

Peter Goldring, Con, suggests that with its emphasis on international human rights standards, this bill "amounts to a limit on Canadian sovereignty."

Kevin Sorenson, Con Chair, suggests Bill C-300 would pave the way for "frivolous lawsuits"

CIDA : Not our job to handle complaints!

Deepak Obhrai, Con, says the definition of what precisely constitutes a human right is very open to misinterpretation and will hurt our mining companies.

Tell you what, Deepak, let's just start off by dealing with the raping, killing, and displacing of brown people in the way of our profits and work back from that.

Another concern voiced was that the media would carry stories of abuses as soon as investigations began, thereby putting a potentially innocent company under a cloud until the issue was resolved. Yeah, just like people.

Every committee has at least one Con whose job is to ask leading questions about how wonderful the Con gov is. This job just requires stringing together a number of non-sequitors in the form of a question. Or not.
John Weston, Con, my MP :

"I would appreciate more specific comments on what the government is doing now. In other words, this is not a government that's oblivious of human rights concerns. We created serious impediments for mining companies, with some of the things we've done in the name of human rights. We're doing that to try to open up the competitive capacity of the mining companies. If you can't do business and you don't pay your taxes in Canada, then we can't maintain our social safety net."

Thanks for that, John.

On April 22, 2009 Bill C-300 passed second reading in the House by a mere 4 votes. With all Cons voting against it, it is now struggling its way through the minefield of the Foreign Affairs and International Development Committee - 6 Cons, 3 Libs, 1 Bloc and 1 NDP. Excellent work from Paul Dewar with Bob Rae looking for the middle ground.

Time to fire off a letter. Over at The Beav I've posted the email addies of the 20 Libs and 7 Dippers who missed the vote last time. They could use a note too.
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