House of Commons Hansard #94 of the 40th Parliament, 3rd Session. (The original version is on Parliament's site.) The word of the day was company.

Topics

Opposition Motion—Foreign TakeoversBusiness of SupplyGovernment Orders

11:15 a.m.

Conservative

Gerry Ritz Conservative Battlefords—Lloydminster, SK

Mr. Speaker, all of these are adjudicated on a case-by-case basis at that time and place. Since these deals were put in place, we have seen companies that have not lived up to what they promised. In some cases we have taken them to court, which has never happened before. These transactions were always rubber-stamped and never went to court. We are doing this, and we are happy to do it.

We are seeing a recession that rocked the boat around the world. Certainly, these industries will have a chance to come back again. We saw this with General Motors. We stepped up and did what needed to be done, as a government, and put them back into play.

I welcome the opportunity for a Canadian investor to come forward now, when these industries are at a low ebb, and put forward a bid.

Opposition Motion—Foreign TakeoversBusiness of SupplyGovernment Orders

11:15 a.m.

Liberal

Keith Martin Liberal Esquimalt—Juan de Fuca, BC

Mr. Speaker, I would like to ask the minister a question similar to the one I asked the leader of the NDP.

The minister mentioned some of the challenges facing the future of our assets, which are extremely important to our country. What framework would the government use to differentiate between those companies considered to be strategic assets, and thus exempt from being placed under majority ownership by a foreign group, and those companies that would be allowed to be acquired by a foreign consortium?

It is important to a tell the Canadian public which companies are considered strategic assets and which are not. It would also give direction to the private sector, letting investors know where to put their money for maximum effect.

Opposition Motion—Foreign TakeoversBusiness of SupplyGovernment Orders

11:20 a.m.

Conservative

Gerry Ritz Conservative Battlefords—Lloydminster, SK

Mr. Speaker, we will look forward to doing that in 30 days, when our legal requirements are up under the Canada Investment Act.

I would say to my hon. colleague on the other side that, from this government's perspective, every business is strategic that helps to drive the economy and create jobs. That is why we are dispirited when we see carbon taxes coming from the member's party; when we see support for Bill C-300, which would drive all our mining resources out of this country; and when we see the opposition talking about raising business taxes. That is why we get upset. That is why we feel that every business in this country is strategic.

Opposition Motion—Foreign TakeoversBusiness of SupplyGovernment Orders

11:20 a.m.

Bloc

Robert Bouchard Bloc Chicoutimi—Le Fjord, QC

Mr. Speaker, in 2007, the government and the then Industry minister allowed the transaction—and this is the question I asked the minister—in which Rio Tinto acquired Alcan. No conditions were imposed despite the fact that the community called for two conditions: they wanted jobs and they wanted Rio Tinto to be required to undertake secondary and tertiary aluminum transformation in the Saguenay—Lac-Saint-Jean region. The government and the minister demonstrated extreme negligence by failing to impose those two conditions.

Will the minister acknowledge that the minister of the day made a serious mistake by failing to impose conditions before allowing Rio Tinto to acquire Alcan?

Opposition Motion—Foreign TakeoversBusiness of SupplyGovernment Orders

11:20 a.m.

Conservative

Gerry Ritz Conservative Battlefords—Lloydminster, SK

Mr. Speaker, I cannot speak to what happened a number of years ago. The Minister of Industry at that time made the decision based on the best information he had.

As the minister said to our colleague from the Bloc Québécois, resources across this country are all treated equally in this government's eyes. Under the Constitution, these resources belong to the province of record, which helps these decisions along.

Opposition Motion—Foreign TakeoversBusiness of SupplyGovernment Orders

11:20 a.m.

Liberal

Ralph Goodale Liberal Wascana, SK

Mr. Speaker, I am pleased to take part in the debate today about potash. It is a commodity that many people may not have heard much about, at least not until six or eight weeks ago. But since then, potash has become a symbol of how Canadians value and measure the public interest and the strategic interests of our country. That is not something they want sold out or taken over.

Potash is a mineral nutrient that is a vital ingredient in fertilizers, and 53% of the world's known reserves are located in Saskatchewan. Potash is used to renew and enrich arable farm lands. It is indispensable to food production worldwide and will be so for generations to come.

Our soil types here in Canada are different from many others around the world. We do not use a lot of potash in our country, at least not yet. One day we most certainly will. In the meantime, its strategic value in feeding a hungry world is indisputable and is growing more strategic and more valuable every day.

It came as a surprise to many, about two weeks ago, when the Prime Minister answered a potash question in this House in a remarkably superficial and dismissive manner. In reference to the hostile bid by the massive transnational BHP Billiton Corporation of Australia to take over the Potash Corporation of Saskatchewan, the Prime Minister said, essentially, “What is all the fuss? It is just an Australian company trying to buy out an American company, so who really cares?” That was the tone of the Prime Minister's answer.

As it turns out, millions of Canadians care, and they care deeply. The Prime Minister was wrong about the Potash Corporation. It is not an American company, 49% of its shareholders are Canadian and only 38% are American. More important, two-thirds of its directors are Canadian citizens and Canadian residents. Control of the company rests in Canada, in Saskatoon, Saskatchewan.

Beyond being erroneous, the Prime Minister's remark was taken by a lot of people in Saskatchewan as an insult, an indication that Saskatchewan was being taken for granted again and maybe taken to the cleaners, that Saskatchewan's interests could easily be sacrificed on the altar of ultra-Conservative ideology, sold out to Australia because the Prime Minister had a personal bias in favour of the proposed takeover.

That is how Saskatchewan read the Conservative position two weeks ago. The government was out of sync with a big majority of Saskatchewan people who did not want, and do not want, to stand by and see this transaction result in the biggest resource sellout in history. They do not want to lose control, permanently and irretrievably, over this strategic commodity and an entire industry.

Offended by the Prime Minister's foolish remark, public opinion galvanized and mobilized. The Saskatchewan government and the provincial legislature were of one mind on this issue. If anyone knows the politics of Saskatchewan, that is indeed a rare moment.

Premier Wall was buttressed by former premiers Calvert, Romano, Devine, and Blakeney, and the opposition accumulated far beyond Saskatchewan. Former Alberta premier Peter Lougheed weighed in, as did the current premiers of Alberta, Manitoba, Quebec, and New Brunswick. The Ontario finance minister warned the federal government to listen carefully to Saskatchewan. And as the official opposition in the House of Commons, we issued the same warning for six long weeks, day after day, question period after question period, .

The wave of common opinion rolled beyond politics. Icons of Canadian business became very vocal. Early out of the gate to oppose the deal was Stephen Jarislowsky of Montreal, who owns an estimated some 9 million shares of Potash Corp., and stood to make a tidy profit at $130 per share. He said, “No, do not do it.”

The same counsel came from the legendary Dick Haskayne of Calgary, the man for whom the business school at the University of Calgary is named. He, too, said, “No, do not do it.”

Then Roger Phillips of Regina, former vice-president of Alcan when it was a Canadian company and later CEO at IPSCO Steel, said no as well. From there, the list of those with substantial misgivings just kept growing. Norman Keevil of Teck Resources, Dominic D'Allesandro, Calin Rovinescu of Air Canada, Roger Martin of the Rotman School, Gerry Schwartz of Onex, Red Wilson, and many more.

The questions being asked were all much the same. If the Potash Corporation of Saskatchewan were to be sold out to BHP, control over the operation would move from a board in Saskatoon, where two-thirds of the directors are Canadian, to a very different foreign board in Australia, with maybe one Canadian director out of 11. So how is that a net benefit?

If Saskatchewan stands to lose jobs, investment, and provincial government revenues totalling between $3 billion and $6 billion, how is that a net benefit?

If the deal means the inevitable destruction of the Canpotex marketing group and the muscling out of other players like Agrium and Mosaic, how is that a net benefit?

If the biggest resources sell-out in Canadian history adds potash to the list of Alcan, Inco, and Falconbridge, all former Canadian champions now lost from Canadian ownership, lost from Canadian control under this Conservative government, how is that a net benefit?

If Saskatchewan and Canada lose all effective influence over one of the world's most strategic commodities in food production, especially in burgeoning markets in India and China at a time when these economies are poised to begin driving the global economy, if we give up that influence, how is that a net benefit?

If Canada's image is reinforced on the global stage as a corporate pushover, an easy mark for takeovers, or if people are led to believe, to use the words of none other than the former chairman of BHP, that “Canada's policies are the worst...Canada has been reduced to an industry branch office largely irrelevant on the global mining stage”, then where is the net benefit in letting BHP take over?

We asked all of these questions over and over again in the House of Commons. Business leaders asked them too, as did the province of Saskatchewan. After weeks of interrogation, the government has finally admitted that it cannot find any net benefit either. Because this was so obvious for so long, people are left to wonder what the government was really thinking during all that time.

It goes back to the answer from the Prime Minister two weeks ago. This is a government that wanted to say yes, that planned to say yes, until the Conservatives saw themselves threatened politically.

The Conservatives polled furiously over this past weekend. They leaked a bunch of trial balloons to the news media to see what might fly. They tried to test what would sell, so that they could ride a horse in two different directions at the same time, but the reaction was all consistently negative. They could not make a silk purse out of this sow's ear.

In the end, they had to be dragged kicking and screaming to get on the same side as a strong majority of Canadians and an overwhelming majority of Saskatchewanians, and just say no. Even then, their position remained a bit vague. Yes, the rules require a 30-day response period for BHP, but in fairness to the corporation, it should not be drawn into some kind of wild goose chase.

The people of Saskatchewan have not said maybe. They have unequivocally said no. The Premier of Saskatchewan has not said, “Make me a better offer”. He has said unequivocally no.

BHP officials should know what is in their power to address and what is not. Could they do better on the share price, jobs, investment, provincial taxes and royalties, or the size of their Saskatoon branch office? Maybe. But as Premier Wall points out, how could they address the fundamental strategic considerations that go far beyond merely haggling over the price?

In other words, Saskatchewan's potash resources are clearly so strategic, how does BHP officials render those resources unstrategic? In a hungry world in which soil fertilization is vital, how do they diminish control over 53% of the global supply of potash to nothing more than the routine marketing of axe handles? If it is special and it is strategic and BHP cannot change that, then why lead it on? Yes, give the 30 days that the law requires, but do not raise false hopes on the part of the bidder and do not cause doubts among Saskatchewan people about what the answer is. When it comes to potash, no means no. That is what 80% or more of Saskatchewan people want to hear.

They do not want to be told that they are bad or weak people because they expect their governments to stand up and safeguard a strategic resource. Some of the extremist commentary that has been pedalled about Saskatchewan being a banana republic and the premier being some kind of Hugo Chavez of the north is just ideological claptrap. The cream of Canada's business leadership says that standing up for a strategic resource and standing against this particular transaction is not anti-business and not anti-investment, it is simply the right thing to do.

Canada's global reputation is not that we are too tough on foreign direct investments. It is that we are too soft, to the point where even the former chairman of BHP was making fun of us. Neither Australia nor any other sophisticated economy would rubber-stamp a deal like the foreign takeover of PotashCorp. The right-wing Conservative elites who make the contrary argument are the same people who opposed robust financial regulations and promoted big bank mergers about a decade ago. If their bad advice had been followed then, Canada's financial system would have suffered the same big trouble as the American system that so damaged the U.S. economy through the recession of the last two years. A strong legal framework and robust oversight are not bad for business but the Investment Canada process does need to be improved.

Early in this debate, several weeks ago, the Liberal official opposition made that very point and we called for four types of changes. The first one was that there needed to be more precision in the definition of what constitutes a net benefit under the Investment Canada Act. Right now it is a bit of a moveable feast. It is vague, it is whatever the minister says that it is from time to time and it changes from time to time. For all sides in the debate about foreign direct investment there needs to be more clarity about what net benefit means. To this very moment, BHP still believes that it passed the test. To a big majority of Canadians, it is beyond doubt that it did not pass the test and perhaps could not. Such ambiguity is not helpful to any side in a large, complex commercial transaction. So number one is that there be greater certainty in the definition of net benefit and the factors that determine it.

The second change concerns transparency. As it exists today, the Investment Canada process is a totally secret black box. No one knows the information that goes in or the arguments that are exchanged. No one knows what analysis if any gets done and no one knows the basis upon which recommendations are made. We have the bizarre situation here in the BHP case where the minister says that there was an analysis but that there were no recommendations. Well, how silly is that, an analysis without recommendations? Equally silly is that any conditions attached to any government approvals are also secret. Now that is ludicrous. If the public cannot know what the conditions for an approval are, then how can there be any measurement of performance? Provisions need to be embedded in the legislation to ensure proper public disclosure of necessary information and a more transparent procedure in the public interest.

The third change concerns enforcement. As we have seen all too often since 2006, big promises are too often made by takeover bidders in order to close their deals, only to be broken within a few scant months thereafter.

The practical experience on this front has been bitterly disappointing to a great many Canadians. It is not good enough to say “then sue them”. Where would that get us? Litigation would be tied up in the courts for 10 years or more while Canadians lose their jobs. The act needs to be amended to include practical, timely, readily available remedies to enforce any promises that are made.

Fourth, as we have seen in the Potash case, this federal jurisdiction over foreign direct investment can impinge squarely upon provincial constitutional jurisdiction over natural resources. Premier Wall was prepared, if necessary, to take that question to court as the people of Saskatchewan would have expected him to do.

While the Investment Canada Act cannot resolve every question of constitutional jurisdiction, it can at least obligate the federal authority to consult more closely and to keep profoundly affected provinces more effectively in the decision-making loop. They deserve some recognized status in this whole procedure.

The motion before us today is by no means a panacea. Some of its proposals are useful while some may not be workable or even desirable, but at least a discussion needs to begin on how to improve the Investment Canada Act and its procedures as we called for about a month ago. That discussion needs to get going before there is another megatakeover looming on the horizon. The Potash case has demonstrated that the present regime is not adequate, so let us get it fixed.

In the meantime, this motion in its last sentence says clearly that the BHP takeover bid needs to be stopped. That is the primary message in this motion today that I hope all members will endorse.

Opposition Motion—Foreign TakeoversBusiness of SupplyGovernment Orders

11:40 a.m.

NDP

Jim Maloway NDP Elmwood—Transcona, MB

Mr. Speaker, for a while I thought I was listening to an NDP member. The Liberals when in opposition can talk a great line and sound progressive but their history in government is something quite different. In fact, when they were in government they stopped absolutely zero in terms of foreign takeovers.

I want to take the member back to November 2, 1989, when Grant Devine was the Conservative premier of Saskatchewan. The Potash Corporation of Saskatchewan was privatized. For many years it had been government owned and very successful. It was privatized by a Conservative government at that time. Mulroney was the prime minister at the time and the Liberals were the official opposition but I do not recall the Liberal Party of Canada taking a strong position against that particular issue.

Bill C-300, the corporate social responsibility bill sponsored by a Liberal member, which was recently before the House, would have forced Canadian mining companies to act responsibly in foreign jurisdictions and treat workers and the environment fairly. The member's own party held out sufficient members when it came time to vote so his colleague lost his bill. That is the way the opposition acts. The Liberals sit on both sides of issues but particularly with Bill C-300.

While the member made a great speech, we have some questions about how solid the Liberals are in terms of following through if and when they ever get back into government.

Opposition Motion—Foreign TakeoversBusiness of SupplyGovernment Orders

11:40 a.m.

Liberal

Ralph Goodale Liberal Wascana, SK

Mr. Speaker, it is hard to know if a question was actually buried there. It seemed to be more like a rhetorical statement.

The fact is that in the lifespan of the Investment Canada Act, going back to the mid-eighties, there has not been a proposed transaction in the resources sector in the order of magnitude as the Potash case. This is the first one that has been this big, and we have been very clear about our position on the case of Potash.

We have also indicated that the major takeovers of large chunks of Canadian natural resources, whether that was Inco, Falconbridge or Alcan, they have all occurred since 2006 under the watch of the present government, not the previous government. I think the hon. member should pay a little more attention to the timeframe and direct his criticism where it belongs.

The stripping away of Canada's ownership of its natural resources in terms of the control factor has all occurred since 2006. If Potash were to be added to the list of Inco, Alcan and Falconbridge, many in the Canadian business community would look over the horizon and ask, “What is left? It is all gone”. It is very clearly time to draw the line in the case of Potash.

On the issue of Bill C-300, I would point out to the hon. gentleman that in the course of that vote, every Liberal in the House voted in favour and there were members of Parliament missing from all political parties at the time that vote was taken.

Opposition Motion—Foreign TakeoversBusiness of SupplyGovernment Orders

11:40 a.m.

Conservative

Rob Clarke Conservative Desnethé—Missinippi—Churchill River, SK

Mr. Speaker, for 18 years I was in the RCMP and I respect the criminal law and understand the Criminal Code that guides the whole country on criminal acts and behaviour. I had to work with Canadian people and clients in order to prosecute and bring people to justice.

Is the member aware of section 36(5) of the Canada Investment Act which stipulates that it is a criminal offence if the minister comes out and speaks about it in detail? Was the member, for the last two weeks and last night, counselling the minister to break the law?

Opposition Motion—Foreign TakeoversBusiness of SupplyGovernment Orders

11:40 a.m.

Liberal

Ralph Goodale Liberal Wascana, SK

Mr. Speaker, of course not. The point is that the government has been trying on this issue to have it all ways to Sunday and not to be clear with Canadians about where it wanted to go. We heard that in the answer that was given by the Prime Minister two weeks ago yesterday when he was asked the question about Potash and gave that flippant, dismissive response that said, “Who cares? It is just an Australian company trying to buy an American company and it really does not matter”.

The people of Saskatchewan took that as a personal insult. They knew it was factually wrong to start with but they were offended by the dismissive, back of the hand kind of approach that they saw from the Prime Minister. It also betrayed a bias on the Prime Minister's part that he was tending to go down the road of approving this transaction.

That galvanized public opinion in Saskatchewan and across the country. The ball really got rolling when Canadians said that they would need to stop this transaction because if they left it to the government, it would let it go.

Opposition Motion—Foreign TakeoversBusiness of SupplyGovernment Orders

11:45 a.m.

Liberal

Geoff Regan Liberal Halifax West, NS

Mr. Speaker, in relation to the previous question that was raised, it strikes me that whatever the Criminal Code says about ministers, it certainly does not say that members of Parliament must be silent, that they cannot speak about an issue. Unfortunately, however, we have heard nothing from the 13 Conservative MPs from Saskatchewan over the past few weeks. Thank goodness that the people of Saskatchewan and its premier spoke out so strongly.

Does my hon. colleague, the member for Wascana, think that if it had not been for the overwhelming response from western Canada, especially from the people of Saskatchewan. and their insistence that the Prime Minister change his tune on this issue, the government would have rubber-stamped this deal in no time at all?

Opposition Motion—Foreign TakeoversBusiness of SupplyGovernment Orders

11:45 a.m.

Liberal

Ralph Goodale Liberal Wascana, SK

Mr. Speaker, there is a lot of public opinion in Saskatchewan that holds exactly that point of view, that it was absolutely essential for the province of Saskatchewan to take the position that it did, for the opposition in Saskatchewan to take the position that it did, for other premiers to become engaged, for other former premiers to become engaged and for the business community to come out and express their point of view clearly and strongly.

If there had not been that groundswell, the government was on a different course. The government was headed in the wrong direction, It was public opinion that brought it, kicking and screaming, to the conclusion that it arrived at last night. Now Canadians want to be sure that that conclusion will stick and that it will not just dribble away in the next 30 days.

Opposition Motion—Foreign TakeoversBusiness of SupplyGovernment Orders

11:45 a.m.

Conservative

Paul Calandra Conservative Oak Ridges—Markham, ON

Mr. Speaker, what is quite clear is that the member read the wrong speech today. He read a speech based on a different sale.

It is driving him crazy that the 13 Saskatchewan members in the Conservative caucus have been able to do more since 2006 than the member and his party have ever done for this country and that the net benefit to Canada actually started in February of 2006 when that lot was thrown out and the Conservative government and Prime Minister were put in office.

For 13 long years, the Liberals did absolutely, positively nothing. They did not listen to the provinces, they cut health care and they raised taxes for Canadians. They did absolutely nothing. To stand in his place and suggest otherwise is absolutely ridiculous.

Would he not agree with me that the reason we might have to consider changing the Investment Canada Act is that the party of the member opposite did absolutely nothing? All it ever did was rubber-stamp every single one of these things, and it is this government that has finally put the interests of Canadians and Saskatchewanians first.

If the member wants to really do something for the people of Canada, he should consider crossing the floor to this party because we are the only party that actually stands up for the people of Saskatchewan.

Opposition Motion—Foreign TakeoversBusiness of SupplyGovernment Orders

11:45 a.m.

Liberal

Ralph Goodale Liberal Wascana, SK

Mr. Speaker, what an invitation. The answer to that one is, indeed, no.

On the role of Saskatchewan's MPs, I note the commentaries in the media in Saskatchewan that refer to them in very unflattering terms. I will not put those epithets into the record because they are pretty tough, but they are described as MPs who are missing in action, who scurry away from the microphones, who refuse to take a position, refuse to stand up for Saskatchewan and only take a position after the Prime Minister has told them what they think.

That is the kind of taking for granted of Saskatchewan that the province roundly resents. That is why the notion of having a one-party political monopoly on Saskatchewan is something that province is very anxious not to have.

Foreign AffairsRoutine Proceedings

11:50 a.m.

Liberal

Hedy Fry Liberal Vancouver Centre, BC

Mr. Speaker, there have been discussions among the parties and I think you will find unanimous consent for the following urgent motion. I would like to add that this motion was adopted unanimously by the Standing Committee on the Status of Women and is supported by the members for Beauport—Limoilou, Laval and London—Fanshawe. I move:

That pursuant to the motion adopted earlier today by the Standing Committee on the Status of Women, this House ask the Minister of Foreign Affairs to take the strongest action possible to demand that the government of Iran permanently stay the execution of Sakineh Mohammadi Ashtiani, and to release her, and her son, and that furthermore this House communicate its deep concern directly to the President of Iran.

Foreign AffairsRoutine Proceedings

11:50 a.m.

Conservative

The Acting Speaker Conservative Barry Devolin

Does the hon. member have the consent of the House to move the motion?

Foreign AffairsRoutine Proceedings

11:50 a.m.

Some hon. members

Agreed.

Foreign AffairsRoutine Proceedings

11:50 a.m.

Conservative

The Acting Speaker Conservative Barry Devolin

The House has heard the terms of the motion. Is it the pleasure of the House to adopt the motion?

Foreign AffairsRoutine Proceedings

11:50 a.m.

Some hon. members

Agreed.

Foreign AffairsRoutine Proceedings

11:50 a.m.

Conservative

The Acting Speaker Conservative Barry Devolin

(Motion agreed to)

The House resumed consideration of the motion.

Opposition Motion—Foreign TakeoversBusiness of SupplyGovernment Orders

11:50 a.m.

Bloc

Robert Bouchard Bloc Chicoutimi—Le Fjord, QC

Mr. Speaker, every time I have the opportunity to speak in the House of Commons, I try to find out whether the bill, the motion or the debate directly affects the people of Chicoutimi—Le Fjord, the riding I represent in the House.

Although this matter is unfolding far from Saguenay—Lac-Saint-Jean, we recently went through something very similar. When I read the text of the NDP motion, it struck a chord with me. Three years ago, on October 18, 2007, I condemned the then industry minister's lack of forethought in the Rio Tinto takeover of the Alcan Group.

Before going any further, I would like to spend a few minutes on the text of the motion before us. There are some similarities between the Potash Corporation takeover, the subject of today's motion, and the Alcan file. The length of the motion no doubt is representative of the many problems with the Investment Canada Act.

The Investment Canada Act, which covers the review of foreign investment, is complex but has some shortcomings. At present, the act gives too much latitude to the Minister of Industry and is too complacent with respect to foreign corporations. We must establish a more transparent process.

I will present the Bloc Québécois's position right away. On the very eve of the debate on the motion—yesterday, November 3, 2010 at 6 p.m.—the Conservative government finally decided to block the current transaction by declaring that there was no net benefit to Canada. However, rather than slamming the door shut, the Minister of Industry left it open a crack by giving BHP Billiton the opportunity to submit a better offer within 30 days. In short, the matter is not settled and the Conservative government may still allow the foreign takeover of Potash Corporation.

Even though, this time, public outcry and the Saskatchewan premier's opposition forced the Conservative government to use the Investment Canada Act to block the transaction, it is the exception to the rule. In general, the Conservatives pay little heed to foreign takeovers of Quebec and Canadian corporations. Even worse, the Conservative government makes a point of making decisions in a vacuum, without respecting the positions of the major players: the representatives of workers and the industry and, above all, the governments of Quebec and the provinces.

Do we need to remind the government that natural resources, as in the case of Potash Corporation, come under the exclusive jurisdiction of Quebec and the provinces? The Conservative government's position is quite worrisome because the flow of foreign investment has been increasing internationally for years, particularly in the natural resources sector. Natural resources have a strategic significance that foreign countries crave, and Quebec and Canada need to make sure that they do not lose control of those resources. The international business environment is in favour of international trade and foreign takeovers of Quebec's industry icons.

The importance of these industries for Quebec goes beyond trade and encompasses the total economic and social development of our society. Foreign takeovers have often resulted in job losses and a loss of control over business decisions.

Many trade agreements include a dispute settlement mechanism allowing foreign investors to contest legislative measures unfavourable to their financial interests.

In the March 2010 Speech from the Throne, the Conservative government expressed its intention to facilitate foreign takeovers in a number of our key sectors including satellites, telecommunications and mines. Foreign investment should be synonymous with new capital, economic growth and job creation, instead of just foreign takeovers of our well-established industries.

The current wording of the Investment Canada Act already allows the Minister of Industry to consult representatives from industry, the labour market, provincial and local governments and any other interested parties. The motion aims to make these consultations mandatory.

The Conservative government has already quietly amended the Investment Canada Act through the Budget Implementation Act, 2009, which made it possible to raise the threshold for review by Industry Canada to $1 billion simply by an order in council.

The Conservative government's approach does not promote transparency or inspire the confidence of the House in its actions with respect to this kind of transaction. The federal government should respect decisions that Quebec and the provinces make about foreign takeovers, particularly since Potash Corporation operates in the natural resources sector, which is under the exclusive jurisdiction of Quebec and the provinces.

The Bloc Québécois supports the NDP motion we are debating today.

As I said at the beginning of my remarks about today's NDP motion, we all know how important Alcan is to Quebec. In my region, Saguenay—Lac-Saint-Jean, the news that Rio Tinto was buying Alcan was like a bomb going off. There were a lot of unknowns surrounding the transaction. Things were going to change. Would plans change? Alcan became foreign-owned. Our dams and our rivers became, in part, foreign property. That is worrisome.

Before the Alcan-Rio Tinto transaction, the company had its headquarters in Quebec. The resources were Quebec's property and the capital was mostly in Quebec and Canadian hands. Today, the company is headquartered abroad. Our resources are foreign property and most of the capital is elsewhere. Alcan's Montreal headquarters are now a Rio Tinto administrative office.

Because the company's decision-making hub is no longer in Quebec, the shareholders' meeting on Rio Tinto's business activities in North America is now held in London.

For the past three years, I have crossed the Atlantic with other elected representatives or people representing employees at Rio Tinto plants in Saguenay—Lac-Saint-Jean to ask the London-based Rio Tinto executives some questions. These issues are so important to the region that it wants to make sure its message gets heard where decisions get made.

Before Rio Tinto acquired the company, shareholders' meetings were held in Montreal. Company leaders were nearby. When people talked about Saguenay—Lac-St-Jean in Montreal, the issues were well known. Now, in London, in a huge room full of groups from dozens of countries, each with their own issues, it is harder to get the message through. Also, in Montreal, people could express themselves in French because some of the top brass were our own. In London, it is a whole different story.

I am not trying to prevent the sale of Canadian businesses to foreign companies. I simply believe that the Canadian government has the tools needed to ensure that the transaction will have a positive, significant impact on our economy, our workers and our communities.

In fact, the Investment Canada Act allows the federal government to impose conditions when a Canadian company or business is being bought by a foreign investor. For instance, that legislation allows the government to authorize or refuse a transaction after examining whether it will benefit Canada. For me, the case that comes to mind is Rio Tinto and Alcan. The Minister of Industry did not express any objections or impose any conditions on Rio Tinto in 2007. To this day, I have a hard time really understanding how a company as large as Alcan, which was the pride and joy of the Quebec economy, could have been sold without anyone really taking a close look at the impact of such a decision.

The Bloc Québécois and a number of stakeholders in Saguenay—Lac-Saint-Jean called for conditions, but the minister at the time ignored those demands. He pulled the rug right out from under our feet. He rushed to make a decision and hastily accepted the transaction. Unfortunately, Rio Tinto has since acquired Alcan. The minister did not demand any commitments from Rio Tinto concerning the number of jobs to be preserved, although that should have been a priority in the process. Nor did he demand any commitments regarding secondary and tertiary aluminum processing activities in Saguenay—Lac-Saint-Jean or even in Quebec. As a result, an entire legacy built by people in my region ended up being sold off in just a few days. It seems logical to me that in such a situation, someone should ask some questions and impose certain conditions on the new owners.

Since the NDP motion mentions Potash Corporation, I would like to talk about this saga. Potash Corporation extracts potash, which is a rare mineral that is used in fertilizers. Potash Corporation used to be state-owned but it was privatized in 1989 and now owns nearly 20% of the world's potash reserves. In mid-August 2010, BHP Billiton, an Anglo-Australian mining company, made a hostile takeover bid to the shareholders of Potash Corporation for a total sum of $28.5 billion, or $130 a share. This hostile bid sparked an immediate reaction from Potash Corporation's management, who essentially called it robbery. BHP Billiton also repeated its promise to keep the company's headquarters in Saskatchewan and to transfer the management team from its potash division to the province and maintain the same number of jobs there. Potash Corporation responded by taking legal action in American courts.

Potash Corporation is special to the people of Saskatchewan and is a source of pride for the province. This explains the hostile reaction that this takeover bid sparked from the people of Saskatchewan. The premier even spoke out publicly against this transaction, which he deemed to be strategically unacceptable for the economic future of his province. He also felt that this transaction did not offer any net benefit for the country, as is required by the Investment Canada Act. From a financial point of view, Saskatchewan could stand to lose up to $3 billion a year in royalties if Potash Corporation were sold to foreign investors.

I would like to take this opportunity to present the Bloc's requests regarding this motion.

Considering the fact that there is a dispute settlement regime favourable to foreign investments on the international scene, and that a limit of $1 billion could make it possible for many outstanding assets of Quebec's economy to be sold to foreign investors without the government even having an opportunity to determine whether the takeover would be of net benefit to the local economy, the Bloc Québécois is suggesting that these provisions be abandoned and that the threshold be set at $300 million.

This amount would allow foreign investments in Canada without unnecessarily putting a stop to them, but major investments above this threshold would be reviewed before being approved. Thus, the government would have a right to review the nature of major foreign takeovers and the risks associated with them and would be able to determine the foreign investors' intentions regarding the management of their Canadian assets.

It is up to the Minister of Industry to decide whether the proposed investment is of net benefit to Canada. Unfortunately, when a foreign company and the government negotiate an agreement, it is classified as confidential. I can understand that a private company does not want to show its hand. However, I sincerely believe that certain terms and conditions must be established and made public.

As my speech has indicated, there is no doubt that the Bloc Québécois is in favour of the NDP motion. I repeat, we are not against the foreign acquisition of Canadian companies, but I believe it is important to set more transparent standards and require commitments that will help ensure the future of the company. That is what I would have liked to see in the 2007 transaction when Rio Tinto acquired Alcan. The minister at the time had not set any conditions. The regional community called for two conditions: that a certain number of jobs be created and that the aluminum be processed in the Saguenay—Lac-Saint-Jean region.

In closing, in comparing yesterday's decision to the one made in 2007, we see that there is a double standard when it comes to Quebec. For strategic reasons, the Conservative government intervened yesterday to say that the sale of this company would not go through, but in the case of Alcan, the government did not intervene and was negligent in not setting any conditions. Does the Conservative government think that natural resources are less important in Quebec?

The Conservative government did not intervene for political reasons. This issue mobilized people, governments and the industry in Saskatchewan. In my region, in Saguenay—Lac-Saint-Jean, the hon. member for Jonquière—Alma did nothing to pressure the Minister of Industry. The then minister, the current minister and hon. member for Jonquière—Alma, and the Conservative government have all demonstrated gross negligence.

Opposition Motion—Foreign TakeoversBusiness of SupplyGovernment Orders

12:10 p.m.

Conservative

Maurice Vellacott Conservative Saskatoon—Wanuskewin, SK

Madam Speaker, I have a question for my colleague across the way, the Bloc member. I would have liked to have asked it of the member for Wascana before he scurried away from his seat shortly after his speech. I will just give a bit of history to my Bloc friends regarding the member for Wascana.

The member for Wascana was the provincial Liberal leader for some time in that province before he escaped to Ottawa. He was kind of lonely there, being the only, lonely Liberal for a period of time. Now he has come here and history repeats itself, I guess, insofar as he is the only, lonely Liberal in the whole province, surrounded by a sea of 13 Conservatives, and he does not much like that. He does not particularly like the fact that he is no longer in the government, in the government caucus, in the cabinet. He can yap and yip all he wants on that side because he does not have disclosure restraints. There are no criminal sanctions that would apply to him as a member of the opposition, yipping and yapping on the other side.

The members from the Conservative Party, the 13 of us here in this place, take our responsibility seriously in providing the kind of input that the minister requests as he gathers all the input he requires for a very serious and very sobering kind of decision. At the end of the day, the minister, as he has rightly said, made a good decision, that it does not present a likely net benefit to Canada, in respect of the Billiton bid.

I would remind the Bloc member and the Liberal member for Wascana who was here in his seat talking some moments ago that the current Liberal leader in the province of Saskatchewan actually said in public comments that this should be wide open, that we should just let it happen, that the government should not be involved at all.

So it is fine for the member for Wascana to flail his arms and all of that in this place, to flap his arms and his gums, I guess I would say, but what does the Bloc member think of the fact that the federal Liberals rubber-stamp everything and the provincial Liberal leader said it should just be left open, when in fact--

Opposition Motion—Foreign TakeoversBusiness of SupplyGovernment Orders

12:10 p.m.

NDP

The Acting Speaker NDP Denise Savoie

Order, please. I would like to give the hon. member for Chicoutimi—Le Fjord an opportunity to respond.

Opposition Motion—Foreign TakeoversBusiness of SupplyGovernment Orders

12:10 p.m.

Bloc

Robert Bouchard Bloc Chicoutimi—Le Fjord, QC

Madam Speaker, I thank the member for his question. I find that the Liberals and the Conservatives are all the same. It is six of one and half a dozen of the other.

In the past 25 years, the government has intervened very few times. Yesterday's decision to reject the transaction is an exception. In my region, people believe that the Conservative government adopted a laissez-faire attitude and did not set conditions for the 2007 Rio Tinto acquisition of Alcan.

I have been in this House since 2004, and that takeover happened on my watch. This Conservative government was negligent, the Conservative members from my region were also negligent, and the member for Jonquière—Alma was negligent. He went along with his party and toed the line.