The pressure is on Gerald Merrithew, the newest kid on the

block, to represent the concerns of the mining industry in Ottawa. And the minister of state for mines has no illusions about how tough that task will be. “Mining people are hard bargainers,” the amicable Mr Merrithew told The Northern Miner in a recent interview.

Mr Merrithew assumed his new portfolio in late June, while still retaining his responsibilities as minister of state for forestry. At the time, the mining industry seemed disappointed with the double appointment. After all, they had grown accustomed to working with full-time mines minister Robert Layton for nearly two years. And though forestry and mining are both natural resources, the lumping of the two in a single portfolio led the mining industry to perhaps expect, as Lionel Kilburn, president of the Prospectors and Developers Association said at the time, “a dilution of attention toward mining.”

“They needn’t worry,” reassures Mr Merrithew. “Those who do can check my record. I’ve worked hard and I will keep working hard.”

Indeed, a glance at Mr Merrithew’s political track record shows that this is indeed the case. A native of New Brunswick and a school principal by profession, he was elected to that province’s legislature in 1972 at the age of 41. Appointed minister of education in 1974, he later assumed the portfolio of commerce and development and in 1982 was sworn in as minister of natural resources. Until his election to the House of Commons in 1984, he was government house leader in the New Brunswick legislature and was, among other things, the minister responsible for energy policy.

“I’ve always paid a lot of attention to the mining side,” he says, “and I do know the industry.” “Trees and rocks go together”

Not only does he know the industry, but “he’s also interested in it, concerned about it and devoted to it,” says Walter Curlook, president of the Mining Association of Canada. Though Dr Curlook feels that putting mines and forests into one. W. Curlook portfolio is not an appropriate arrangement for the long term, he is pleased that Mr Merrithew is handling the mines. “He has had prior experience in the provincial government with both mining and forestry,” he says.

William James, president of Falconbridge Ltd., is equally positive about Mr Merrithew. “He does know the mining industry very well,” he says. “He also knows the forestry industry very well.”

Mr James says he is not at all concerned that forestry and mining have been grouped together under Mr Merrithew. “Trees and rocks go together very well,” he says. If anything, he notes, the two should be put into one portfolio with Mr Merrithew W. James thew made a minister in his own right. As things stand now Mr Merrithew, as a minister of state for forestry and mines, must report to two separate ministers: minister of agriculture John Wise on forestry matters and minister of energy, mines and resources Marcel Masse on the mining side.

Mr Merrithew is emphatic that forestry and mining are in step on several counts. Not only are the two industries linked historically by their role in shaping the economy of this country, but they face many of the same issues and problems: free trade, introduction of new technologies, the environment and Third World competition, to name but a few. Building a trust

Though he does know mining, Mr Merrithew realizes that he still must establish a strong trust with the industry. He has made this his number one priority.

To this end, Mr Merrithew has wasted no time introducing himself and talking to the community. This past summer was spent criss- crossing the country meeting members of the industry, including Mr Kilburn, who says “He’s a good man and he has made a real effort to get out to meet the members of the mining industry and to listen to their concerns.

How effective Mr Merrithew will be in dealing with these concerns remains to be seen. And though he could not give any hints in his interview on whether any policy shifts or any of the industry’s major issues will be in the forefront of the Governor General’s speech from the throne that will launch the next session of Parliament on Oct 1, he did have what may be heartening news for the industry. More attention to minings

For many years the mining industry has felt that the main focus of the department of energy, mines and resources has been oil. Many of the big oil issues have largely been resolved now, points out Mr Merrithew referring to the Western Accord and the lifting of the controversial Petroleum Gas and Revenue Tax to name but two. This means, says Mr Merrithew quite bluntly, that Mr Masse “will now be taking more of an interest in mining.”,

Indeed, one issue that E M & R will have a difficult time avoiding is the taxation side of mining. As Mr Merrithew says: “I’ve noticed one thing about the people in the mining industry. They all want to talk taxation.”

And high on the list on taxation topics is the concept of flow- through shares, particularly such concerns as: will the concept of flow-through shares continue and will it be expanded to cover development costs?u

“I think Michael Wilson, the finance minister, understands the importance of flow-through shares to the industry,” he says. Though Mr Merrithew admits that there would be little exploration in Canada without flow-through shares, he stresses that care must be taken so the system is not abused and that “no games are being played.” Development two-edged sword

Extending the concept of flow- through beyond the exploration stage to include development work is a two-edged sword, he says. Mr Merrithew worries that incentives offered on the development side might detract from exploration. “We must be careful of not slowing down exploration.” Another point, Mr Merrithew makes is that extending the flow-through incentive to cover development would set a precedent that would reach beyond the mining industry. “Other industries, such as forestry, are watching,” he says.

Other particulars such as offering a tax break for prospectors and allowing them to treat all the proceeds from the sale of mineral properties as capital gains are also to be looked at, says Mr Merrithew.

Other issues that will occupy much of the mines minister’s time include free trade and asbestos. Regarding the former, Mr Merrithew is in favor of having increased access to foreign markets and particularly an enhanced relationship with the U.S. Asbestos still an issue

On the asbestos issue, Mr Merrithew intends to pick up where his predecessor Mr Layton left off. “We have let the asbestos industry in Canada know that we support their efforts, including their stance against the U.S. Environmental Protection Agency” (EPA) which proposes to have the mineral banned altogether.

Mr Merrithew recently met with Quebec Mines Minister Raymond Savoie, and says he will encourage the provinces to adopt the convention issued by the influential Geneva-based International Labor Organization (ILO) conference this summer that supports a “controlled use” rather than an outright ban of the mineral.

Though it is still too early in the game for Mr Merrithew to have made any national headlines regarding major mining issues, he says that at the end of the day “I would love to say that we have a national minerals policy. We were talking about the need of one back in 1981 when I hosted the mines ministers’ conference in New Brunswick.”

But in the meantime Mr Merrithew is concentrating on one goal — “I want to make sure that the mining industry has a real voice in cabinet.”