NEWS RELEASES

May 15, 2001 (11:50 a.m. EDT) No. 60

TRADE MINISTER WELCOMES AUDITOR GENERAL REPORT ON EDC

International Trade Minister Pierre Pettigrew welcomed the findings of the Auditor General's report, released today, on the environmental review practices of Export Development Corporation (EDC).

"The Auditor General has made an extensive set of recommendations on how to strengthen EDC's environmental practices," said Minister Pettigrew. "I am pleased that EDC has endorsed the Auditor General's recommendations and is committed to implementing them thoroughly. I welcome today's announcement by EDC of a proposed new disclosure policy, which responds to one of the Auditor General's key recommendations and positions EDC among the leading export credit agencies in transparency."

EDC will shortly be consulting publicly on a revised Environmental Review Framework, which will reflect other recommendations of the Auditor General. "I have asked the Auditor General to undertake an audit in two years, once a revised Framework has been adopted, to ensure that EDC has implemented all the recommended changes in the Framework and in how it is applied in practice," added Mr. Pettigrew.

The Auditor General's report is an important outcome of the legislative review of the Export Development Act and the observations of the Standing Committee on Foreign Affairs and International Trade (SCFAIT) on how EDC's Environmental Review Framework might be improved. In his response to SCFAIT in May last year, Minister Pettigrew noted that EDC's overseas activities should reflect Canadian values on the environment, and promised to ask the Auditor General to review the adequacy and performance of EDC's Framework.

In July 2000 the Governor General in Council, on the recommendation of Minister Pettigrew, asked the Auditor General to undertake this audit and report the findings to EDC's Board of Directors, the House of Commons and the Minister for International Trade. The Auditor General has now provided guidance on ways to strengthen the Framework to ensure that it operates transparently, incorporates best practices, and is subject to clear, objective standards.

"I am fully supportive of EDC's continued efforts to refine its Framework to keep Canadian exporters competitive in world markets while reflecting Canadian values regarding protection of the environment," said Minister Pettigrew.

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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