Canada's John Baird: Mining Industry Needs More Government Support

During his keynote address at Red Cloud Mining Capital‘s Fall Mining Showcase, former Canadian Foreign Affairs Minister John Baird outlined the ways in which the Canadian government intersects with the mining industry.
Stating that most Canadians don’t recognize how important the mining industry is for the nation’s economy and prosperity, Baird argued that the Canadian government needs to be more supportive of the mining industry. The industry, after all, “creates a lot of well-paying jobs, prosperity and government revenue.”

Activists fight Canada’s commercial interests

Baird began by outlining the many ways in which political and environmental activists work against Canada’s commercial interests, noting that while exercising their right to free speech, these activists end up harming Canadian industry and investment, both at home and abroad. Baird called for a stop to government support for these groups, stating that “they shouldn’t be getting money from the public purse to pursue this narrow ideology abroad.”

The necessity of strong government support abroad

Baird went on to discuss foreign governments as another major impediment to the Canadian mining industry. “Another major challenge facing the industry is when foreign governments try and rewrite the rules on taxes, regulation and royalty payments. It’s amazing to me how the rules always seem to change just as the last dollar goes into a mining project, just as the last dollar of capital is invested,” he said.
Citing examples across the world, from the Dominican Republic to Colombia, Baird outlined how foreign governments cause problems for the Canadian resource sector, and affirmed his belief that the Canadian government has to be a strong partner for mining companies in cases of insecurity abroad. Baird also said that China’s stagnant economic growth is exacerbating challenges in the resource sector.

The political perspective

In closing, Baird turned to politics, arguing that the Liberal government has moved to the left, and neither it, nor the NDP, will be strong supporters of the Canadian mining industry. Baird said that Canada crafts its foreign policy firstly on its values and secondly on its interests. The government, Baird believes, should be a global advocate for the mining industry on both of those fronts. “When it comes to mining, we punch well above our weight,” he said, adding that it’s the government’s job to help protect mining in the country.
During a question period after his talk, Baird said that either the Liberals or Conservatives could take a majority. He — and no doubt the Canadian mining industry as a whole — will undoubtedly be watching to see how the election will affect the Canadian mining industry.
 

Securities Disclosure: I, Morag McGreevey, hold no direct investment interest in any company mentioned in this article.