Yesterday, at the Prospectors and Developers Association of Canada’s (PDAC) Canada Minister of Natural Resource, Joe Oliver, announced with great fanfare a new initiative to compel mining companies to disclose payments of over $100,000’s to foreign and domestic governments.
On the surface this looks like a win for transparency, particularly for a sector that is of great importance to Canada: mining.
And this issue matters since not only do extractive industries represent an important part of Canada’s economy, but the sector has been dogged with controversy. Indeed the Toronto Star just uncovered today a report commissioned (and buried) by the Prospectors and Developers Association of Canada (PDAC) that showed Canadian mining companies have the worst record when it comes to environmental standard and human rights.
Forcing mining companies to account for their payments to foreign and domestic governments won’t solve every problem, but it can help curb corruption. Indeed the issue was seen as so important that at the last G8 summit, the leaders agreed that companies should be compelled to disclose these payments.
Happily, there is a legitimate global movement to make government payments by extractive industry companies more transparent. It is called the Extractive Industries Transparency Iniative (EITI). It has set a series of standards for disclosing such payments so that they are easier to track across borders. In fact EITI is seen as so important it is actually the only organization mentioned by name in the last G8 summit communique. This is the same EITI program about which last year the Minister’s press secretary boasted:
Since 2007 Canada has also been a supporting country of the Extractive Industries Transparency Initiative, and is now the second largest financial donor to the initiative, providing $12.65 million to the World Bank’s Extractive Industries Transparency Initiative Multi-donor Trust Fund…
Which brings us to Minister Oliver’s important announcement.
Did the government announce that it was joining 42 other countries, including its G8 partners the United States, the United Kingdom, France, Germany and Italy to join the standard it has been a major funder of?
No. It did not.
Apparently EITI is good enough to fund so that others can implement it. When it comes to actually doing what is effective… the government balked. Canada, apparently, is going to adhere to its own “unique” approach.
And it gets worse.
Read the Minister’s statement more closely, particularly this line:
“We want to make it as easy as possible, so we will not create a central database. Instead, we would require that reports be posted to company websites, with the government and public notified.”
So unlike EITI, which offers a centralized repository where records can quickly be downloaded and compared, Canada’s “compliance” will involve each company to maintain their own records “somewhere” and will require anyone interested if actually figuring out what is going on to go and track down each one individually.
We call this secrecy by obscurity. It makes a mockery of the notion of transparency.
We have a global infrastructure designed to make disclosure cheap, easy and effective. Infrastructure our own government has poured $12.7M into it. And we turn around and ignore it all.
Canada claims it wants to be a leader in open data. But if it can’t even get something basic like this right… such claims sounds increasingly silly here at home, among our G8 partners and, well, among the rest of the world.
Addendum: It gets worse still. Few people have noticed yet, but Canada recently (and quietly) stopped reporting the names of corporate directors in the public database of the country’s firms. This is a major step backwards and makes those who benefit from one of the most important benefits society can confer – limited liability – invisible to the public who confers that right. This is a major step backwards. Read this wonderful Economist article on why. More on this to come.