NEWS RELEASES

September 20, 2001 (10:40 a.m. EDT) No. 131

MINISTER PETTIGREW TABLES LEGISLATION IN PARLIAMENT

TO UPDATE EXPORT DEVELOPMENT ACT

International Trade Minister Pierre Pettigrew today tabled in the House of Commons amendments to the Export Development Act. A principal change is a new legal requirement for the environmental review of projects that Export Development Corporation (EDC) has been asked to support. Other amendments include changing the Corporation's legal name to Export Development Canada, as well as measures to update governance and administrative practices.

"The legal requirement for EDC to conduct environmental reviews on projects is a significant change," said Minister Pettigrew. "This Bill will allow Canada to position itself at the forefront of environmental review policy for export credit agencies around the world."

The new legislation complements policy changes made following a comprehensive review of Canada's Export Development Act. The review included a consultant's report, broad public consultation, parliamentary committee hearings and input from business organizations and public interest groups.

"EDC is a valued financial partner for many Canadian exporters, especially small and medium-sized businesses," the Minister said. "The Bill seeks to balance the competitive needs of these exporters with a desire for EDC to exhibit leadership in corporate social responsibility practices. It follows on policy guidance given to EDC in June."

On June 26, 2001, Minister Pettigrew announced steps to update EDC's mandate. At that time he set out new policy directions for the Corporation and signalled his intention to table supporting legislation in the fall.

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A backgrounder is attached.

For further information, media representatives may contact:

Sébastien Théberge

Office of the Minister for International Trade

(613) 992-7332

Media Relations Office

Department of Foreign Affairs and International Trade

(613) 995-1874

Backgrounder

SUMMARY OF AMENDMENTS TO THE ED ACT

The legislation takes a balanced approach to changes to Export Development Corporation (EDC).

The Bill follows on the policy guidance provided to EDC by Minister Pettigrew in June 2001 for strengthening the environmental review of the projects it is asked to support.

Legislative Summary

This enactment amends the Export Development Act by

(a) changing the name of the Corporation to Export Development Canada and making consequential amendments to other Acts and to the regulations;

(b) enabling the Board to delegate its powers and duties to committees that it may establish, other than the executive committee;

(c) requiring the Corporation, before entering into a transaction that is related to a project, to determine, in accordance with a directive established by the Board, whether the project is likely to have adverse environmental effects and, if such is the case, whether the Corporation is justified in entering into the transaction;

(d) requiring the Auditor General to audit the design and implementation of the directive established by the Board, at least once every five years;

(e) providing that the Canadian Environmental Assessment Act cannot be made to apply to certain activities of the Corporation;

(f) providing that an environmental assessment will not be required under the Canadian Environmental Assessment Act where the Minister for International Trade, the Minister of Finance or the Governor in Council exercise certain powers with respect to the Corporation; and

(g) enabling the Board to make by-laws respecting the establishment of a pension plan for the officers and employees of the Corporation and their dependants.

Additional background on the ED Act Review Process

The current legislation governing EDC requires the Minister for International Trade, in consultation with the Minister of Finance, to review the Act after five years and report the findings to Parliament.

The review commenced in 1998 with a comprehensive study of EDC's operations, Canada's export finance needs, and the international trade environment. The study included extensive stakeholder consultations, as well as detailed surveys and research.

The House Standing Committee on Foreign Affairs and International Trade (SCFAIT) and the Senate Committee on Banking, Trade and Commerce concluded hearings and round tables with a diverse range of stakeholders. SCFAIT produced a comprehensive report on the review in December 1999. The Senate Bank and Commerce Committee also provided a short report in March 2000.

The government agreed that EDC should publicly demonstrate its accountability by reflecting the full range of public policy concerns in its activities, and should introduce appropriate transparency measures concerning its activities.

In June 2001, the Minister for International Trade announced steps to update the mandate of EDC, including the provision of policy guidance on environmental review, and signalled his intention to table legislation in the fall session of Parliament as part of a broader package of changes to the Corporation's policies and practices.