Plan Canada supports the call for greater transparency in Canadian companies’ revenue reporting
Recommendations for mandatory payment reporting by Canadian extractives is a step in the right direction toward poverty reduction and development in the world’s poorest nations
Toronto, January 16, 2014 – Today Plan Canada welcomes and supports a set of key recommendations to the Canadian Government on mandatory payment reporting standards for Canadian mining companies.
Currently, a lack of reliable public information about the flow of revenues to governments from extractive companies makes it difficult to monitor such funds, guard against corruption, ensure efficient and timely tax and royalty collection, and ensure that resource revenues contribute to sustainable development.
Transparency is critical to seeing that citizens of developing nations receive their full share of the benefit from their country’s rich natural resources. By creating standards that make mining companies’ payments to governments transparent, citizens will have information they need to hold their governments to account for the expenditure of the revenues received due to resource extraction. Resource revenues represent a central source of income in many developing countries, at times outweighing aid dollars. When well-spent, these revenues can fuel sustainable development and poverty reduction in the world’s resource-rich, but poorest, nations.
Canadian exploration and mining associations, in collaboration with civil society organizations, have today released recommendations for the development of a payment transparency standard for all publicly-traded mining companies in Canada. The recommendationsprovide Canada’s federal and provincial governments, alongside provincial securities commissions, with a blueprint for a payment reporting framework.
The recommendations would require publicly-traded mining companies in Canada to disclose project-level payments to domestic and foreign governments and they aim to bring Canada in line with emerging global reporting standards such as those recently passed into law in the United States and European Union.
The release of the working group’s recommendations comes seven months after the Canadian government committed to enhance extractive sector payment transparency in the June 2013 run-up to the G8 Summit. The recommendations cover a wide range of reporting criteria from scope, format, and frequency of reporting to payment reporting thresholds and exemptions.
Home to at least 60% of the world’s mining companies; Canada has an important role to play in the push for greater transparency. With these recommendations, the Canadian government has not only an opportunity, but a responsibility to integrate these into the mandatory payment reporting standards it has already committed to create.
About Plan Canada
Founded in 1937, Plan is one of the world’s oldest and largest international development agencies, working in partnership with millions of people around the world to end global poverty. Not for profit, independent and inclusive of all faiths and cultures, Plan has only one agenda: to improve the lives of children. Because I am a Girl is Plan’s global initiative to end gender inequality, promote girls’ rights and lift millions of girls – and everyone around them – out of poverty. Visit www.plancanada.ca and www.becauseiamagirl.ca for more information.
Abigail Brown, Plan Canada, email@example.com 647-971-3764