Mahsi, Mr. Chair. I am pleased to appear before the committee today to review Bill 2, Settlement of International Investment Disputes Act. The purpose of the bill is to provide for adoption in the Northwest Territories of the Convention on the Settlement on Investment

Disputes between States and National of Other States. The convention established the International Centre for Settlement of Investment Disputes, an institution of the World Bank, in the belief that the centre would promote international investment, especially in developing countries where people are fearful of investing because of the lack of an effective means to resolve disputes.

The convention is intended to assist with the settlement of investment disputes between governments and foreign investors, providing the parties with dispute resolution services on a user-pay basis. The use of the arbitration or conciliation services is voluntary, by agreement between the parties. This bill, based on the model act developed by the Uniform Law Conference of Canada, provides for the recognition and enforcement of decisions in the Northwest Territories that are made through the centre.

Over 140 countries have ratified the Convention, but Canada has not done so as it required legislation in every province and territory. The Government of Canada passed implementing legislation in March 2008, and is now making ratification of the convention a priority. Ratification of the convention would be seen as making Canada a more attractive place to do business, thereby promoting foreign investment in Canada. To date, five Canadian jurisdictions have enacted legislation to implement the convention.

The convention would provide NWT residents investing abroad and NWT companies doing business with member states with an additional option for resolving disputes, a significant benefit in member states where the courts are not as experienced or considered to be as reputable as those in Canada.

The centre would also be available to this government as an alternative means of resolving disputes in agreements that it may have with foreign companies or investors operating in the Northwest Territories.

Mr. Chair, I would like to thank the members of the Standing Committee on Social Programs for their review and comments on the bill and would be pleased to respond to any questions the committee may have regarding Bill 2. Mahsi, Mr. Chair.