The Extractive Industries Transparency Initiative (EITI) was launched by the UK Prime Minister, Tony Blair, at the World Summit on Sustainable Development, in Johannesburg, September 2002. The Department for International Development has led the development of the initiative since then. The initiative encourages governments, extractive companies, international agencies, Non-Governmental Organisations and others with an interest in the sector to work together to develop a framework to promote transparency of payments and revenues.
Ministers, Chief Executive Officers and high-level representatives of other stakeholder groups were invited to a Conference on 17 June to agree a Statement of the Principles underpinning EITI and agree actions to take the Initiative forward. Charles Bland, Executive Vice- President, Policy and Corporate Affairs, made the following statement of support on behalf of BG Group.
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| Statement by Charles Bland, EVP, Policy and Corporate Affairs, on behalf of BG Group to Multi-stakeholder Conference 17th June 2003, London |
I would like to add my appreciation to that of colleagues here for the leadership the UK Government has shown in championing the EITI. The range and calibre of participants in this meeting is a tribute to the personal commitment of the Prime Minister and his Government.
BG Group is an integrated gas company, operating in some 20 countries across the world, including many developing countries. We are active along the gas chain from exploration and production, through liquefied natural gas transportation to transmission and distribution and power generation.
Like others here, we recognise that developing countries face many obstacles, including sometimes lack of transparency, in converting their resource wealth into sustainable economic development. It is in all our interests that countries overcome these barriers so that they can take full advantage of the opportunities their resource wealth presents to increase the prosperity and living standards of their people.
Wherever BG Group operates, we conduct our activities in accordance with our Statement of Business Principles. These Principles, agreed by our Board, set out the fundamental values and principles under which we operate. They include values of integrity, openness and trust. As a company which attaches overriding importance to operating within our Business Principles, we have no difficulty in supporting this initiative and in endorsing the principles which have been set out.
The desire to be open and straightforward must be subject to commercial confidentiality and the contractual conditions under which we operate. We are pleased to see that the EITI Principles recognise that the achievement of greater transparency must be set in the context of respect for contracts and laws.
In developing this initiative, the UK Government has also recognised that transparency cannot be delivered by companies alone. What is needed is a partnership between companies and governments, both here in the UK as well as in host countries. This idea is also embodied in the EITI Principles but the role of the G8 governments will be critical.
The key to the success of the initiative will be the full participation of all stakeholders. There is plenty of interest in supporting this initiative and we need to build on this interest by engaging co-operatively with each other. We recognise that arguments exist for a mandatory regime but, in the view of BG Group, the proposed voluntary approach is a better route to willing co-operation and partnership.
There are a number of technical issues to do with how data will be aggregated which need to be clarified as do also any implications of legislation in host countries. However, given active collaboration of all involved, we see no major difficulties in principle. The issue now is implementation.
The ultimate goal must be for investment around the world not only to bring returns to shareholders, but also to contribute to sustainable development in host countries. Business thrives in prosperous, fair and stable economies with open and robust rule of law. It is in our interest to seek to contribute to such development wherever we operate.
This initiative has the potential to make a significant impact on development progress in many countries around the world. BG Group has pleasure in supporting it.
Michael Barron, Policy & Corporate Affairs Manager
Tel: +44 (0) 118 929 2891
Or contact us at: CR Enquiries
web links: www.dfid.gov.uk
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