Submissions Received by the Task Force

Full Submission

From: Export Development Corporation
Sent: October 19, 2001

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Introduction

• EDC
  • Our Mandate
  • A Highly Commercial Organization
  • EDC and Transparency
• The Access to Information Review
• The Bartram Report and EDC
• The EDC Position

EDC

• Proposed changes to the Access to Information Act (AIA) must be considered within the context of EDC's mandate and the work we do in support of it
• The Export Credit Insurance Corporation (ECIC) was created as a Crown Corporation in 1944 to function as Canada's official Export Credit Agency
  • its mandate was to serve the financing and insurance needs of Canadian exporters in order to enhance the competitiveness of Canadian exporters

EDC: Our Mandate

• ECIC was renamed EDC in 1969 and now has a broader mandate that better reflects its role in the international market:
  • to support and develop directly or indirectly Canada's export trade and Canada's capacity to engage in that trade and to respond to international business opportunities
• EDC fulfills its mandate by providing financing and risk mitigation services in support of Canadian exporters and investors (e.g. business financing, accounts receivable insurance)
• EDC's activities have an international focus - the international financing and trade community

A Highly Commercial Organization

• EDC also has a commercial mandate
  • EDC must be financially self-sustaining
    • it receives no appropriations from Government
    • EDC earnings are critical for future growth
    • revenues are obtained through fees, premiums and interest charged to foreign and Canadian private sector clients
• EDC operates on a commercial basis in a commercial environment
  • EDC needs to work closely and easily with the private sector
  • EDC shares a common approach to business with the private sector

A Highly Commercial Organization

• In order to fulfill its mandate EDC needs to:
  • be seen as a trustworthy, commercially sensitive potential business partner
  • be able to assess and enter into transactions on the basisof complete information
• One way to meet our mandate is by helping Canadian companies get involved in international transactions
  • EDC has to be seen on equal footing with its international competitors
  • EDC must be able to win the confidence of foreign, private sector partners in the international financing and trade community

A Highly Commercial Organization

• Obtaining commercially sensitive information from foreign entities is essential to our ability to conduct our business
  • without this information EDC cannot perform the due diligence required to assess and enter into transactions
  • the confidence of current and future clients in EDC's ability to protect this information is critical

   

A Highly Commercial Organization

• This results in a number of concerns with AIA:
  • potential business partners (foreign, private sector) will be reluctant to enter into agreements with EDC if there is a risk that their information will be subject to AIA or they would have to defend the protection of their information in Canadian courts
  • the possibility that information may be disclosed will be enough to deter groups from choosing EDC and the Canadian companies it supports - perception is critical
  • with so many non-Canadian alternatives available potential partners will opt for the no-risk choice

EDC And Transparency

• EDC already provides information to Parliament and the public
• EDC recently went through an extensive legislative review process in which the need for increased transparency was raised
  • the conclusion reached in the review process was that a disclosure policy was the best vehicle to achieve this goal
• As a result, the EDC disclosure policy was implemented in October 2001 following a thorough public consultation process

EDC And Transparency

• The disclosure policy is the product of a number of indepth considerations:
  • an independent review of EDC (Gowlings)
  • the report of a Parliamentary Committee (SCFAIT)
  • the response of the Government of Canada
  • extensive public consultations with NGOs and EDC clients
• NGO concerns were heard during this process
• The question of coverage under the AIA was specifically addressed
  • a disclosure policy was considered the best way of meetingthe needs of the public and EDC's clients
  • disclosure seen as the best way to accommodate these needs within EDC's mandate

The Access to Information Review

• The Task Force objective:
  
  • to "modernize access to federal government information in
    a way that promotes open, effective, accountable
    government, and an informed citizenry in a knowledge
    society, and is consistent with the public interest and
    personal privacy"
    
• The need to establish transparent and effective criteria for
  inclusion must be reconciled with other, competing public
  interests
  
  • other Canadian interests must be taken into consideration

The Bartram Report And EDC

• Dr. Bartram's report established a test to determine whether AIA would apply to an institution
• Bartram's third set of criteria touches on the challenge that EDC is facing on access to information
  • the test acknowledges that there are situations where special consideration must be made
  • the test recognizes that an entity's essential mandate could be placed at risk by being made subject to AIA

The Bartram Report And EDC

• EDC's mandate is at risk if EDC is not seen as a commercial partner by the international financing and trade community
• Being subject to AIA would harm its ability to support Canadian exporters
• Inclusion under the AIA would tilt the playing field against EDC and the Canadian exporters it supports

The EDC Position

• EDC's position is straightforward: the current exemption from the AIA must be maintained
• Based on the third criteria of the Bartram test and the impact that inclusion would have on its mandate, EDC should remain outside of the AIA
• EDC has developed a disclosure policy which various parties determined was the best means of striking an effective balance between the needs of our clients and the need for public transparency

Submissions Received by the Task Force