EMR trying to improve the quality of life for Canadians

Some four years ago, world mineral markets had barely started to recover from the 1981-83 recession.

The industry had to make some tough decisions. A lot of them involved serious belt tightening. Remarkable moves were made to cut costs, improve productivity and implement technological innovations.

Credit must also go to the workers. Many were laid off and others suffered through periods of no pay increase.

Let’s look at the industry today.

Unemployment rates in mining and quarrying occupations are down. In fact, there is even a serious shortage of skilled miners in some parts of the country.

Metal prices are up substantially. Copper, nickel, zinc and aluminum are prime examples.

During the early part of the recovery period one of the most significant contributors to industry’s improvement was an increase in productivity. These gains, followed by improvements in mineral prices which have reflected a strengthening world economy, have resulted in the increased profits many of Canada’s major producers are experiencing. The turnaround in companies like Inco and Noranda has been remarkable.

Today we are proud of the fact that Canadian mines are among the lowest cost, and among the most competitive, producers in the world. Good management, skilled labor, technological innovation and a strengthening world economy have all played a part.

I would be remiss if I didn’t point out that government policy has also been a significant factor. Policy decisions taken by the current government have been aimed at ensuring a stable, economic environment in which ind ustry sectors such as mining might better prosper. For example, * we dismantled the National Energy Program with its excessive government intervention; * we dismantled the Foreign Investment Review Agency; * we deregulated the transportation industry; * we reformed the tax system; and * we negotiated a free trade agreement to secure Canadian access to the U.S. market.

Within the mines department, we developed a mineral and metal policy for the Government of Canada — a first. In my view, it is an important document because it provides a statement of objectives for all those at the federal level who are working to support Canada’s mineral and metal industry.

This policy was developed in a spirit of co-operation and consultation. It defines a flexible and supportive role for the Government of Canada toward the mineral and metal sector, one that enables industry and provincial governments to respond to their own particular circumstances and challenges.

As a cornerstone of the mineral and metal policy, as with many other policies of our government, the department for Energy Mines and Resources (EMR) has underlined its desire to provide a fair and balanced fiscal and regulatory framework that will encourage the optimum development of Canada’s resources.

The federal government listened to the provinces and industry, when they expressed concerns about the inadequate level of exploration investment, following the 1987 crisis on the stock exchange. We consulted and then we acted. The Canadian Exploration Incentive Program was delivered in record time. It will pay out more than $210 million dollars a year, and will make it easier for junior exploration companies to realize their financial requirements.

In the past four years government and industry have worked together on the broadest co-operative programming arrangements for mineral development that have ever been in place. The Mineral Development Agreements (MDAs) and their various components have addressed provincial and industrial priorities, providing support not available through any other means.

A number of our MDAs will expire in March 1989. Let me stress one point. The mining sector is in stiff competition with other resources sectors for funding. But if the mineral development agreements are important, then it’s important for the industry to ensure that provincial governments see the renewal of the MDAs as a priority. Provincial mines ministers must speak to their premiers about it and make sure that minerals are on the short list of priorities in their province. My support is certainly 100% behind the continuation of MDAs. I strongly feel that many of the projects funded through the agreements provide long-term benefits and will continue to serve the industry well in the future.

Before I conclude, a final point on the environment. Although not always recognized, EMR has been in the environmental quality business for a long time through various scientific and research activities. Through an action plan, the department is now committed to a greater emphasis on the environmental implications of the department’s work.

EMR is concerned with improving the quality of life for Canadians. Its objective is to see pollution prevented at the outset by adopting additional proactive policies and practices.

We’ve made a good start at understanding the environmental problems. Now we have to work even harder to solve them. The contamination of surface and ground water from mine tailings and acidic effluent from smelters have damaging effects on the environment. EMR, with industry and the provinc es, is developing techniques that will not only clean up existing problems but also prevent problems in the future.003 Gerald Merrithew is a former Minister of State for Forestry and Mines.

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