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

3:55 p.m.

NDP

Claude Gravelle NDP Nickel Belt, ON

Mr. Speaker, I am pleased to rise today to speak to this important motion.

For the record, the importance of this motion lies in its five key elements: one, making public hearings a mandatory part of foreign investment review; two, ensuring those hearings are open to all directly affected; three, ensuring all conditions attached to the approval of a takeover be made public; four, clarifying that a goal of the act is to encourage foreign investment that brings new capital, creates new jobs, transfers new technology to this country, increases Canadian-based research and development, contributes to sustainable economic development and improves the lives of Canadian workers and their communities; and five, asking that the House express its opposition to the takeover of Potash Corporation by BHP.

As a northern Ontarian, I experienced first-hand the impact of a bad foreign takeover where jobs have been eliminated while profits soared, pensions and nickel bonuses were under attack, and replacement workers were hired, contributing to the longest strike in our region's history.

My community is living proof of the current and previous governments' failures to protect the interests of Canadian workers and their communities. I worked at Inco for 34 years. Those workers became my extended family. To watch them suffer because a foreign company was intent on driving down their wages, taking away defined benefit pensions and reducing their bonuses while raking in billions in profit cannot in any way be defined as a net benefit to our community or to our country.

The nickel they are taking out of our mines is Canada's natural resources and my community's resources. Northern Ontarians will never forgive the Conservative government for approving the sale of such strategically important mines, Inco and Falconbridge, to foreign companies without extracting guarantees that there will be measurable net benefits to our region and country or holding them accountable when they broke their contractual obligations.

It is the reason New Democrats have been sounding the alarm about the need to strengthen the Investment Canada Act. We heard my colleague from Windsor West earlier today point out that he warned the government years ago. We heard about the efforts of former NDP MP Peggy Nash, who worked diligently to help stop the sale of MacDonald, Dettwiler and Associates.

Since being elected in 2008 and appointed mining critic by my leader, I have worked with my community, concerned workers and other stakeholders to push for changes to the Investment Canada Act. I would remind the House that on April 28 of this year, Parliament passed my motion that called for lowering the threshold for public review of foreign takeovers, ensuring public hearings are held in affected communities, and requiring publication of the reasons for decisions and conditions to be met by approved foreign owners.

Today we build on that motion by articulating what constitutes a net benefit to Canada. Canadians are not naive. They understand the difference between foreign investment and foreign takeovers. There is not a single Canadian who does not get the importance of global trade.

However, Canadians also understand that certain sectors of our economy, particularly parts of our natural resources and telecommunication sectors, have strategic importance, and in some circumstances “open for business” cannot mean allowing a fire sale of our successful companies and strategic resources.

New Democrats understand that difference. Canadians understand that difference. One can only hope that the Conservative government has begun to understand that difference as well, but I will not hold my breath.

To be clear, there are positive examples of good foreign investment. Essar Steel Algoma Inc. in my colleague's riding of Sault Ste. Marie is one such example. There are others as well, all across the country.

During recent weeks we have heard concerns from some unusual corners about the sale of Potash Corporation. In the November 2, 2010 edition of The Globe and Mail's Report on Business, Roger Martin, dean of the Rotman School of Management and a leading advocate of free trade, said with regard to the possible sale of Potash Corporation:

Canada has been an unsophisticated player [...] There are tough, tough people in the world who couldn’t care less what happens to Canada.

Others have pointed to a lack of takeover reciprocity in a variety of countries such as Australia, which is home to BHP Billiton, and Brazil, which is home to Vale, and of course, we all know how China operates.

No one is suggesting increased protectionism, but the business community is cautioning the government about its often simplistic approach to foreign acquisition. In 2008, here is what was said about how Canada handles foreign takeovers:

Canada's policies are a worst-case scenario; ... Canada has lost more head offices than any other country; ... Canada has already been reduced to an industry “branch office” and is largely irrelevant on the global mining stage.

Who said this? It was Don Argus, former chairman of BHP Billiton, when warning his own country, Australia, not to become like Canada. Australia and other countries are heeding this warning.

We are living in a critical time of increasing global energy and food demands due to growing population and economics. Country after country has begun to view its supply of natural resources as an issue of national security. In addition to Australia, others such as China, Vietnam, Russia, India and Indonesia have all begun to strategically invest in natural resources at home and around the world. Why is Canada not assessing its key sectors such as natural resources, manufacturing, high tech, including green technologies, and telecommunications through the filter of long-term strategic need?

That is the very point that many in the business community are making. It is time the Conservative government began listening. Do not just take our word for it, take the government's. In this morning's paper, quoted with respect to one aspect of the Investment Canada Act, being confidentiality and lack of public debate, the University of Toronto's Rotman School of Management, Professor Joseph D'Cruz said that while he was normally not sympathetic to the NDP:

[On this issue] I think they're on the right track. I think having public hearings is pretty healthy.... I've always been a bit concerned that the commitments that the foreign companies make to Investment Canada are confidential and the public doesn't know what they are. On an important public...issue, I think confidentiality is not healthy.

On the issue of national security and strategic national interests, Canada, it seems, is also heading in the opposite direction of many countries by increasing significantly the minimum threshold upon which a federal review of a foreign takeover takes place.

In other words, the government is telling the world to help itself to our natural resources, our technologies and our intellectual property, and while it is at it, it is also signalling to them not to worry about those conditions of sale that the federal government imposes, because the federal government will not pursue them even when they break their contract. One only has to look at the government's disgraceful behaviour during the Vale Inco strike in my community. It chose to ignore the plight of the workers in Northern Ontario, but at least with respect to Potash it seems to have listened for the time being to the people of Saskatchewan.

I have a plea to the government not to treat this important NDP motion in a blindly partisan way but to see it for what it is, a critical, important motion that helps to restore the balance between sustaining and growing global trade relations and securing strategic Canadian-owned resources for future Canadian generations.

The facts speak for themselves. In 2007, for the first time since 1999, foreign-controlled companies operating in Canada held 52.8% of manufacturing assets, up from 46.8% in 2006. Statistics Canada says:

The increase was due largely to foreign acquisitions of Canadian-controlled firms, especially in the primary metals and the wood and paper industries.

In one year alone, 2006, foreign control over Canada's mining sector rose from 12% to 40%.

In conclusion, I want to be clear that this motion is about protecting Canada's long-term strategic interests. It is not about stopping foreign investment in Canada, but it is about stopping foreign takeovers that are not of net benefit to Canada. The status quo is failing Canadians. The government has yet to articulate what exactly its net benefit test is when it approves takeover after takeover.

This motion addresses some of key weaknesses of the current system. I hope that, together, we as parliamentarians can begin to address this imbalance of protecting the interests of Canadian workers, their communities--

Opposition Motion--Foreign TakeoversBusiness of SupplyGovernment Orders

4:05 p.m.

Conservative

The Deputy Speaker Conservative Andrew Scheer

Questions and comments. The hon. member for Elmwood—Transcona

Opposition Motion--Foreign TakeoversBusiness of SupplyGovernment Orders

4:05 p.m.

NDP

Jim Maloway NDP Elmwood—Transcona, MB

Mr. Speaker, I want to thank the member for an excellent presentation regarding the motion today.

The fact of the matter is, as I indicated earlier, those 13 Saskatchewan MPs on the government side were the last people to be on board. The NDP leader in Saskatchewan, Dwain Lingenfelter, has been in front of this issue for a long time and drumming up support against it.

In response to the comments from the member for Saskatoon—Wanuskewin this morning, the fact of the matter is that the NDP has supported foreign investment in the past.

For example, the NDP did not oppose the Italian Fiat takeover of the Chrysler Corporation. During the carve-up and sell-off of the former technology leader, Nortel, the NDP did not oppose the sale to foreign companies of any Nortel division except LTE Assets, which had a national security component that the Conservatives chose to ignore when they let a foreign company buy that division, even though it was raised by many others, including the business community.

As well, when Cirque du Soleil, a renowned Canadian artistic and cultural champion, was having a majority stake purchased by the Disney Corporation, a foreign company, the NDP did not object to that. Also, there was the China Investment Corporation's majority purchase of a Penn West division, an oil and gas takeover, that was not opposed by the NDP.

For the Conservatives to say that somehow the NDP is chilly towards foreign investment is just not borne out by the facts.

Opposition Motion--Foreign TakeoversBusiness of SupplyGovernment Orders

4:05 p.m.

NDP

Claude Gravelle NDP Nickel Belt, ON

Mr. Speaker, the facts speak for themselves. But let me say a few words on the leader of the NDP from Saskatchewan, Dwain Lingenfelter. He was the first at the plate on this issue, followed by the federal leader of the NDP. When the issue became too hot, the provincial government stepped in.

We never heard from the 13 Saskatchewan MPs. We did not hear a word from those guys. They scattered like the mice in the Liberal Party.

I hope that answers your question.

Opposition Motion--Foreign TakeoversBusiness of SupplyGovernment Orders

4:05 p.m.

NDP

Jean Crowder NDP Nanaimo—Cowichan, BC

Mr. Speaker, I want to thank the member for his very good speech. I wonder if he could talk a little more about the impact on workers. I know he alluded to it.

I also want to acknowledge the member for Elmwood—Transcona pointing out the other foreign takeovers that the NDP has not stood in the way of.

I know that a foreign takeover has had a serious impact on the member for Nickel Belt and his community. It is not just that the resources and profits go somewhere else, but there is an absolute impact on the workers and businesses in their communities because the workers no longer have well-paying jobs. I wonder if the member could talk a little more about the personal impact that he has seen in his community as a result of this.

Opposition Motion--Foreign TakeoversBusiness of SupplyGovernment Orders

4:05 p.m.

NDP

Claude Gravelle NDP Nickel Belt, ON

Mr. Speaker, the impact of foreign takeovers on my community was a year-long strike at Vale Inco because the company, Vale, did not want to negotiate. They make billions of dollars every quarter. I think the last quarter they made $3 billion. Yet they were intent on taking away the defined benefits pension from the workers. They were intent on lowering the nickel bonus. They have laid off some workers. Some of our community's businesses, family-owned businesses, were forced to close.

So, yes, there was a definite impact on our community and it was not a net benefit.

Opposition Motion--Foreign TakeoversBusiness of SupplyGovernment Orders

4:10 p.m.

Regina—Lumsden—Lake Centre Saskatchewan

Conservative

Tom Lukiwski ConservativeParliamentary Secretary to the Leader of the Government in the House of Commons

Mr. Speaker, it will be a pleasure to speak to the NDP opposition day motion, which seeks to make amendments to the Investment Canada Act. I will be sharing my time with the hon. member for Saskatoon—Rosetown—Biggar.

I should say at the outset that I believe all legislation from time to time needs to be reviewed. I believe that there should be reviews on a regular basis of all legislation to see whether or not current legislation can in some way be improved.

While there are some elements of the motion before us today that I agree with, there are others that I do not accept. I agree with the spirit of the motion, which states that we should be reviewing the Investment Canada Act to see whether there are ways to improve the current provisions of the act.

I would point out that, since we first came to power in 2006, our government has made changes to the Investment Canada Act. We included provisions that required us to consider national security when determining whether foreign takeover bids should be approved. We did this a couple of years ago, when there was a proposed takeover of the MacDonald Dettwiler organization, which was heavily involved with robotic arms and other technologies for the aeronautics and aerospace industries. At that time, we turned down a bid from a U.S.-based company, because we felt that, in the interest of national security, it was best to keep that company in Canadian hands.

Beyond the motion itself, I want to speak to a political dynamic that I think has seized the House and the country over the course of the last couple of days. Most important, I want to talk about the role that the Saskatchewan members of Parliament have played in the deliberation process during the last few weeks.

More specifically, I want to talk about the role we have played in helping the Minister of Industry to decide whether or not to accept the BHP bid in the proposed takeover of the Potash Corporation of Saskatchewan.

The 13 Saskatchewan members of Parliament have been fully engaged on this issue for several months. We had meetings with the Premier of Saskatchewan. We had meetings with many ministers of the Crown in the province of Saskatchewan. Even more important, we met with our constituents, the people of Saskatchewan, to get their feelings about this proposed takeover.

Opposition members, in a self-important exercise, have gathered themselves before the nearest camera or reporter to tell the world of their efforts to influence the government. I can assure all members of the House, however, that their attempts to influence the government in its decision-making have been futile. They have had no effect whatsoever. I would also point out that actions speak louder than words. Opposition members, particularly the member for Wascana, have tried to convince the public that they were leading the charge on the rejection of the BHP bid. But in fact, the opposite is true.

They had no influence. The member for Wascana had absolutely no influence on the government decision, nor did the leader of the NDP. But day after day in this House we heard them asking, “Why will the 13 members of Parliament from Saskatchewan not stand up and oppose this deal?” The answer is quite simple. If the members had taken the time to review the Investment Canada Act, they would find under “disclosure” that members on the government side were prohibited from expressing opinions or commenting on the merits of the proposed takeover bid. In fact, members of Parliament, departmental members, and cabinet ministers can be criminally charged if they do not follow this part of the law. We observed these legal prohibitions, but we worked diligently behind the scenes with the Minister of Industry, expressing our opinions and the views of our constituents on the proposed BHP takeover.

Opposition parties attempted to get publicity, feather their own nests, and convince their constituents that they were working on their behalf. But it was political pandering and nothing more.

Our members of Parliament, by contrast, worked hard and long to express the wishes of the people of Saskatchewan, talking to constituents, consulting with members of the provincial government, and speaking with ministers of the Crown. Let me say once again that opposition members had no influence on the government. Opinions on the government side count. The opinions of the opposition members, in contrast, have no impact whatsoever.

I hear a lot of caterwaul, bombast, and bluster from members opposite. This is only another attempt to get their message heard through the media, to convince Canadians that they are actually relevant. On this issue, however, they are not relevant at all.

I want to congratulate all of my colleagues from Saskatchewan, because I know how hard they worked on this file. We were under intense pressure from the media and members of the opposition, who stated incorrectly that we were invisible, that we were not standing up for our province.

I know different. Every one of the 13 members of Parliament from Saskatchewan also knows different. We know the effort that we put in to speak with the minister and the Prime Minister, to gather information to assist the Minister of Industry in making his final decision. Our efforts were entirely successful.

For the next 30 days, we will be prohibited from making extensive comments on the decision. However, after that 30-day period, the minister and all members of Parliament from Saskatchewan will be more than pleased to explain to all Canadians what went into the decision and what we did to bring it about.

We will not ignore or oppose legal prohibitions, now or in the future. We will comply with all legal provisions contained in legislation in the House. Members opposite, of course, being in opposition, do not have to observe these legal prohibitions. They can comment, scream, yell, and whine, but they have no influence. They have absolutely no influence.

In this case, which was one of the most controversial foreign takeover bids of the last 20 or 30 years, the opposition members had nothing to offer the debate. Knowing that government members were prohibited from speaking publicly, they tried to make a political case to further their own interests. It was nothing but partisanship, pure and simple.

On the other hand, the deliberations of the Minister of Industry were in great part shaped by the information he received from Canadians, business people, the bidder, the Potash Corporation of Saskatchewan, and members of the Saskatchewan caucus. I will not stand and say that our efforts alone caused the Minister of Industry to come up with his decision, but I will state emphatically that the members from Saskatchewan played an integral part in the minister's decision process.

I am proud of each and every one of my colleagues from Saskatchewan, and I know the people of Saskatchewan are proud of us as well.

Opposition Motion--Foreign TakeoversBusiness of SupplyGovernment Orders

4:15 p.m.

Liberal

Mario Silva Liberal Davenport, ON

Mr. Speaker, I am pleased that the government has decided to reject, at least for 30 days, the PotashCorp deal, because potash is an important industry in this country.

This opposition day motion has provided us with an opportunity to discuss the loss of some of our head offices in this country, the loss of jobs, and various takeovers of Canadian marquee companies. I am speaking as a parliamentarian who laments the loss of companies that were once the jewels of Canada. We have a responsibility to protect these companies so that our economy remains strong, and so that we maintain our commercial identity as Canadians.

Algoma Steel, Dofasco, Inco, Falconbridge, Labatt's, Alcan, Nortel, and Four Seasons are all companies that we have lost. Of course, Nortel is a more complex issue. These marquee companies put Canada on the map. We have to do everything possible to secure companies such as these. The government has to intervene to make sure that such companies continue to play a leading role in our economy.

The government's decision is a positive step. I hope that it will go further and block this deal because—

Opposition Motion--Foreign TakeoversBusiness of SupplyGovernment Orders

4:20 p.m.

Conservative

The Deputy Speaker Conservative Andrew Scheer

I hate to stop the hon. member, but I have to allow enough time for the parliamentary secretary to respond.

Opposition Motion--Foreign TakeoversBusiness of SupplyGovernment Orders

4:20 p.m.

Conservative

Tom Lukiwski Conservative Regina—Lumsden—Lake Centre, SK

Mr. Speaker, my hon. colleague is wondering whether we will actually block the deal after the 30-day period, that is, after we have heard interventions from the bidding company.

As I mentioned in my earlier address, we cannot comment publicly on the decision that the Minister of Industry made yesterday. There is a 30-day period during which we are legally obligated to wait and see if there are further interventions or undertakings from BHP. We cannot, as the opposition would have us do, make a decision today. It is against the law. We are legally obligated to wait 30 days.

My colleagues on the opposition benches are calling for an immediate answer. That just shows how ill-informed they are. It is against the law. I urge my colleagues to inform themselves better by reading the act.

Opposition Motion--Foreign TakeoversBusiness of SupplyGovernment Orders

4:20 p.m.

NDP

Yvon Godin NDP Acadie—Bathurst, NB

Mr. Speaker, I listened to the speech given by the parliamentary secretary, and I noted that he said the 13 members from Saskatchewan consulted various people. Did they consult with the Premier of Saskatchewan? If not, is that the reason that the premier decided that, if the government did not change its mind and support Saskatchewan, he would take it to court?

Opposition Motion--Foreign TakeoversBusiness of SupplyGovernment Orders

4:20 p.m.

Conservative

Tom Lukiwski Conservative Regina—Lumsden—Lake Centre, SK

Mr. Speaker, normally my colleague from Acadie—Bathurst hangs on every word I say in debate, so I am surprised that he did not listen to what I had to say in the main body of my speech. I said we met with the Premier of Saskatchewan.

The premier and I have known each other as friends for over 25 years. As all my colleagues from the Saskatchewan side would know, we consulted with Premier Wall extensively, as we did with his ministers. For the member opposite to suggest otherwise shows how ill-informed he is. Frankly, the approach he is taking is one of partisanship rather than benefit to the nation.

Opposition Motion--Foreign TakeoversBusiness of SupplyGovernment Orders

4:20 p.m.

Conservative

Kelly Block Conservative Saskatoon—Rosetown—Biggar, SK

Mr. Speaker, I am pleased to rise in my place to respond to the motion tabled by the hon. member for Toronto—Danforth, concerning foreign investment in Canada and the Investment Canada Act.

I would like to take this opportunity to speak to my constituents and thank them for their patience and for their support over these past few weeks.

The Minister of Industry announced last night that, in his opinion, the BHP proposal was unlikely to provide a net benefit to Canada. I fully support him in his decision and would like to thank him for his diligence and hard work on this very important issue.

I would also like to thank my colleagues for their tireless efforts over the past number of weeks to ensure that the people of Saskatchewan and, indeed, all Canadians were effectively represented.

Canada has had a longstanding debate, and some would call it a perennial debate given the length of time it has been ongoing, over the benefits and costs of both inward and outward foreign direct investment.

Fears about foreign investment in Canada are rooted in protectionist thinking from bygone days. This type of thinking does not reflect the new realities of globalization, whether it is in relation to trade or investment flows. In a word, these fears are outmoded.

The idea that foreign-controlled companies operating in Canada will turn our economy into a branch-plant economy is simply not based on fact.

Open markets and globalization have disaggregated production processes to the point that supply chains are now global. Our challenge is to ensure that Canadian businesses can maintain and enhance their positions within these global supply chains, so that they can be cost-effective and successfully compete against competitors from other countries. In order to be successful in today's globalized economy, Canada must attract more inward foreign investment and Canadian businesses must continue to invest abroad.

The concern for Canada is not too much inward foreign direct investment in Canada or too much outward Canadian investment abroad. Rather, the real concern is to ensure that Canada is not falling behind other countries with respect to attracting foreign direct investment. Canada has to maintain and improve its share of investments to secure associated benefits.

In today's globalized economy, investment is linked to trade, and we all know that our economy is heavily dependent on trade for our prosperity and standard of living. We cannot be complacent and rely on outmoded policies, which impose undue cost on Canadian businesses and Canadians. We simply cannot afford this. We must ensure that Canada remains an attractive destination for foreign investment.

In fact, based on data from the World Investment Report 2010, over the period 2003 to 2009, Canada was the world's seventh-largest recipient of the global foreign direct investment flows, attracting more foreign investment than Germany and Italy among the G7 countries; Canada attracted some 3% of global inward foreign direct investment flows, well above its share of global GDP of 2.3%; and Canada also ranked second only to the United Kingdom among G7 countries in terms of foreign direct investment flows per capita.

Access to foreign markets is essential for a small economy such as Canada's. We are working aggressively to open markets in foreign countries for Canadian goods, services and investment through trade negotiations and free trade agreements.

I would now like to speak briefly about foreign direct investment in Canada and some of the benefits that are associated with it.

Until as recently as the late 1970s, many countries were highly suspicious of foreign investment, particularly from large multinational enterprises. Indeed, many countries limited foreign investment or banned it entirely in key sectors.

Canada was also cautious of foreign direct investment. In fact, in 1973, Canada created the Foreign Investment Review Agency to screen inward direct investment.

However, in today's global economy, countries have taken a completely different and new tack, as is the case for Canada.

Countries now seek, and in fact compete, to attract foreign investment as they recognize its many benefits. This is why it is important for Canada to maintain its open policies and continue to welcome foreign investment. Foreign direct investment contributes positively to Canada's economy and is critical to our long-term growth and prosperity.

Let me be more specific about some of the benefits of foreign direct investments in Canada. First, foreign direct investment is a key source of jobs, especially those that are highly skilled and pay high wages. Studies have shown that 1 in 10 jobs in Canada can be attributed to foreign investment. Moreover, foreign-controlled firms in Canada pay higher wages than their Canadian-controlled counterparts.

Second, foreign investors make strong contributions to the Canadian economy, including the much-needed capital for our Canadian economy to grow. While the majority of capital is sourced domestically, a growing proportion comes from international sources. Foreign investment provides much-needed additional capital that would otherwise not be available. Canada is competing with other countries to attract foreign investment, and we are successful at it in light of our fair, predictable and stable business environment.

Third, foreign investors provide access to new goods and services and exposure to different management styles and processes. Foreign investors often do bring innovative marketing strategies and new perspectives on management, people and technology. This expertise is often passed on to Canadian firms. This ultimately enhances the ability of Canada's business to compete and raise the overall level of productivity of the economy.

Fourth, foreign investment is also an important source to access new technologies. Considering the high costs of research and development, Canada must recognize the role foreign investment plays to ensure that Canadian firms continue to have access to leading-edge technologies.

Finally, foreign investment contributes to Canada's success in international trade. Foreign firms often produce goods and services not just for their domestic market but for their international affiliates. Research has shown that foreign firms operating in Canada are more export-oriented. In 2002, foreign-controlled establishments operating in Canada accounted for only 9% of the total number of exporters but contributed almost half of Canada's exports.

I am thankful for this opportunity to address my colleagues in the House and to articulate the importance of foreign investment in our economy.

Opposition Motion--Foreign TakeoversBusiness of SupplyGovernment Orders

4:30 p.m.

Conservative

The Deputy Speaker Conservative Andrew Scheer

It is my duty pursuant to Standing Order 38 to inform the House that the question to be raised tonight at the time of adjournment is as follows: the hon. member for Davenport, poverty.

Questions and comments, the hon. member for Elmwood—Transcona.

Opposition Motion--Foreign TakeoversBusiness of SupplyGovernment Orders

4:30 p.m.

NDP

Jim Maloway NDP Elmwood—Transcona, MB

Mr. Speaker, clearly November 2, 1989, was the day that Conservative premier Grant Devine sold off Potash Corporation of Saskatchewan to private investors and at that time neither Brian Mulroney, the prime minister, nor Liberal opposition in the House raised any opposition to that privatization.

Now we have all 13 Saskatchewan Conservative members of Parliament missing in action. They have done nothing to stop PotashCorp from being taken over by BHP Billiton in this hostile bid. They said nothing in the House that I am aware of over the last month on this issue. It has only been through the efforts of Dwain Lingenfelter, the NDP leader in Saskatchewan, and the national leader of the NDP, the member for Toronto—Danforth, who voiced vocal opposition and forced the Prime Minister to take a second look and stop this takeover.

Opposition Motion--Foreign TakeoversBusiness of SupplyGovernment Orders

4:30 p.m.

Conservative

Kelly Block Conservative Saskatoon—Rosetown—Biggar, SK

Mr. Speaker, I am not sure if that was a question or not. It seems to me that it is simply more rhetoric coming from that side of the room. While members of the opposition were busy trying to politicize this process, the members from Saskatchewan were honouring the process and the requirements of the act. We held several meetings, as was mentioned already, with the minister and with members of the Saskatchewan legislative assembly, and we met as caucus. We listened to the people of Saskatchewan and, indeed, all Canadians to ensure that they were and are effectively represented.

Opposition Motion--Foreign TakeoversBusiness of SupplyGovernment Orders

4:35 p.m.

Conservative

Bradley Trost Conservative Saskatoon—Humboldt, SK

Mr. Speaker, I listened with interest to my colleague's comments and I know she has been very active on this file. I think by some accounts Saskatchewan MPs have had 17 meetings on this, going back to September.

I was listening to some of the comments from the other side of the aisle and indications from the public that were arguing from the NDP perspective that this corporation should be renationalized, bought again by the government. I find that particularly interesting since it was the Romanow government in Saskatchewan, which Mr. Lingenfelter was a part of, that actually changed the act affecting the privatization of PotashCorp and allowed non-Canadians to buy a majority of the shares.

To prevent a future sale to non-Canadians some of the NDP are suggesting to nationalize it.

I wonder if my colleague would care to comment on whether or not nationalizing a $40 billion company is a wise investment?

Opposition Motion--Foreign TakeoversBusiness of SupplyGovernment Orders

4:35 p.m.

Conservative

Kelly Block Conservative Saskatoon—Rosetown—Biggar, SK

Mr. Speaker, I thank my colleague for his question and I thank him as well for all the hard work he has done over the past few weeks to ensure that Saskatchewan residents are well represented on this issue.

PotashCorp is a successful business, one that is dominant in world markets. This is a Canadian resource beneath Canadian soil. The potash resources in Saskatchewan are owned by the people through their federal and provincial governments.

Under the Investment Canada Act, each case is considered unique and is reviewed on its own merits. I am proud to be part of a government that remains committed to maintaining an open climate for investment while protecting the interests of Canadians.

Opposition Motion--Foreign TakeoversBusiness of SupplyGovernment Orders

4:35 p.m.

NDP

Brian Masse NDP Windsor West, ON

Mr. Speaker, I would like to ask the member how she feels about the fact that the minister came to the chamber this morning and talked about this being an interim decision. That is different language from what he used yesterday. He never used the word “interim” and it is different language than on the MacDonald Dettwiler file, where that was not used either, and they actually closed that door right away.

Why are there unusual special circumstances for BHP, and why is the story still going?

Opposition Motion--Foreign TakeoversBusiness of SupplyGovernment Orders

4:35 p.m.

Conservative

Kelly Block Conservative Saskatoon—Rosetown—Biggar, SK

Mr. Speaker, the simple answer is that we are following the law.

Let me be clear. Canada is open for business. Under the Investment Canada Act, each case is considered unique and is reviewed on its own merits.

Canadian companies have a strong record of competing globally, with Canadian companies overall investing far more overseas than foreign companies invest in Canada.

We will continue to support being open for business and standing up for Canadians and their interests.

Opposition Motion--Foreign TakeoversBusiness of SupplyGovernment Orders

4:35 p.m.

NDP

Yvon Godin NDP Acadie—Bathurst, NB

Mr. Speaker, I will be sharing my time with the hon. member for Hamilton Centre.

I am proud of the New Democratic Party motion being debated today in the House of Commons.

The text of the motion calls for improvements by:

(a) making public hearings a mandatory part of foreign investment review; (b) ensuring those hearings are open to all directly affected and expert witnesses they choose to call on their behalf; (c) ensuring all conditions attached to approval of a takeover be made public and be accompanied by equally transparent commitments to monitoring corporate performance on those conditions and appropriate and enforceable penalties for failure to live up to those conditions; (d) clarifying that a goal of the Act is to encourage foreign investment that brings new capital, creates new jobs, transfers new technology to this country, increases Canadian-based research and development, contributes to sustainable economic development and improves the lives of Canadian workers and their communities, and not foreign investment motivated simply by a desire to gain control of a strategic Canadian resource; and that the House express its opposition to the takeover of Potash Corporation by BHP.

I do not see how the government can vote against this motion unless it has something to hide.

While I was listening to the members from Saskatchewan, 1 of the 13 Conservative members from Saskatchewan said they all play a big role and that they talk to people in Saskatchewan, to the government, to the caucus and to the party caucus in Saskatchewan.

I wonder if the threat by the premier of Saskatchewan to take the federal government court played a part in the government's decision yesterday. When the premier of Saskatchewan and his party said that if the government did not give Saskatchewan what belongs to them, which is the potash of Saskatchewan, then they would take the federal government to court, I wonder if that figured into the federal government's decision.

Knowing that there will probably be an election at the beginning of 2011, the government had to wonder what would happen to the 13 Conservative members of Parliament from Saskatchewan if it did not change its decision. Is that what made the government change its decision?

When we talk about foreign companies coming to Canada, we say that we welcome them but, as motion reads, it needs to be good for Canada.

Yesterday, the Minister of Industry said that he looked at this issue and found that it was not good for Canadians, so the government would stop the sale for 30 days. He would not tell us why under the law.

Today we hear that the 13 Conservative members worked so hard that they were the ones who stopped the sale. That is what the government has been telling us all day. It did not tell us that the sale was stopped because it was not a benefit to Canadians.It said that it was stopped because of the 13 Conservative members working so hard because they did not want to lose in an election. Talk about politics, the government is making this political.

We have experience with foreign companies. In 1914, a paper company was built in Bathurst, New Brunswick. In 1989, Stone, a company from the United States, bought it. In 1989, Smurfit, another company from the United States joined with Stone and became Smurfit-Stone.

What did that company give to the people of Canada? What did it give to the people of Bathurst and New Richmond?

Well, not long after that, in 2007, the company decided to close down and go back home to the United States. One of the conditions to buy the pulp and paper mill in Bathurst was that the company could not be in competition with the United States. How can a pulp mill be sold without being competition to a company with a pulp mill?

Today in Bathurst, it is sad to see this mill going down every day. The whole building is being torn down, a building that was built in 1914 and a mill that gave good jobs to the people in Bathurst, New Brunswick. It also gave good jobs to people in New Richmond and in Quebec but they also lost their jobs.

What happened to Bowater when it bought Abitibi in Dalhousie? Abitibi bought it and then Bowater came in and in 2007-08 it decided to close it down. Where is the mill today? The mill is being torn down in the same way the mill in Bathurst, New Brunswick is being torn down.

The only thing foreign companies have done is to walk away from us and people have lost their job. What about Vale Inco, the company from Brazil? The government did not stop that company from coming in. Nothing stopped it from coming in. First, it supposedly had a guarantee for Canadians. Was the only problem in Sudbury the fact that it did not have 13 members from the Conservative Party? Is that the only problem it had in Sudbury? This company came in and it put people on strike and out of work for 10 months. The company took away part of their pension plans and their bonuses and put the workers on the streets.

At the same time, in Voisey's Bay, Newfoundland, the workers are still on strike. That is what foreign companies have done. On top of that, company told the workers they should learn about the type of living in Brazil.

How many times were questions put to the Minister of Industry and he kept defending the company? At the same time, the government was ready to give the company a $1.2 billion loan, a company that put Canadian workers out on the street.

This motion is calling on the government to be open and transparent, which is why the government was elected in 2006. It said that it would be more open and transparent, that it would talk and share decisions with Canadians and that it would not hide.

This motion is all about sharing with the House of Commons and sharing with Canadians. So far we have not seen too many companies that have helped Canadians once they took over a company. They just exploit everything that we have and, once it is time for them to go, they just go.

That is what happened in the forestry industry. I am happy with what the NDP did. After we put pressure on the government, it finally saw the light or was forced to see the light as a result of a threat from the premier of Saskatchewan that it would take the government to court if that company went into Saskatchewan. The government must have felt the threat pretty strongly when it knew that 13 Conservative members of Parliament in Saskatchewan did not stopping the deal. That is what stopped the deal.

However, it should go further than that. That is not what should stop a deal. What should stop a deal is truth and transparency being given to Canadians and a decision being taken on behalf of Canadians. That is what needs to be done.

The Conservatives are telling us that they are a responsible government and they feel the opposition parties are playing politics. If somebody is playing politics, it is the Conservatives. If they are not playing politics and if they believe in transparency, on November 16 when we vote on this motion they should stand and support it.

Outside of that, they have something to hide and that will be sad because we have lost too many companies in our country. We have lost too many jobs and for the people who are working their wages are going down. Too much of that has happened because of foreign companies coming here. We are a country with sovereignty and we could run our own businesses when we look at our natural resources. Very soon we will not own this country anymore because the Conservatives and the Liberals will have given it away to other countries around the world.

I ask this House to support this good motion because it is a good one. The motion did not come just yesterday. In 1985 a motion like this was brought to the House by the hon. Ed Broadbent and the Liberals and Conservatives never supported it. I will be surprised on November 16 if they are here to defend—

Opposition Motion--Foreign TakeoversBusiness of SupplyGovernment Orders

4:45 p.m.

Conservative

The Deputy Speaker Conservative Andrew Scheer

Questions and comments, the hon. Minister of Canadian Heritage and Official Languages.

Opposition Motion--Foreign TakeoversBusiness of SupplyGovernment Orders

4:45 p.m.

Port Moody—Westwood—Port Coquitlam B.C.

Conservative

James Moore ConservativeMinister of Canadian Heritage and Official Languages

Mr. Speaker, I was having some meetings but I noticed that my hon. colleague, the official languages critic for the NDP, was here in the House to speak in this debate. I just noticed that we have had over the past day and a half very good debates in the House on copyright reform. Different parties have come forward with their views and hopefully that legislation will go to committee.

Obviously, there is plenty of room for discussion and debate with regard to foreign direct investment, the degree to which it is beneficial to Canada and the degree to which the government should or should not respond to the regime in which we approach these considerations, but there is no need to yell and scream and attack people's motives on this issue. There are plenty of examples.

As a matter of fact, the largest employer in the riding of the NDP member for Burnaby—New Westminster is Electronic Arts Sports, an American-owned video game software company that is hiring thousands of his constituents in Burnaby—New Westminster in the video game and software development industry. It is massively profitable. That is a direct example of foreign direct investment into his own riding. That is the largest employer in his riding, with high-paying, high-quality jobs in the tech sector. That is foreign direct investment hiring Canadians.

There are examples, certainly with regard to natural resources in different regions of the country that have different pressures and different dynamics, and members opposite are more than welcome to raise those concerns. We can have a debate about them and that is fine. However, the one thing I wanted to underline is that it is not all bad but it is not all good and the government has a responsibility to make decisions that are in the best interest of Canadians, the net best interest as the legislation describes.

What I wanted to clarify is the member's attack, frankly, on the members of Parliament from Saskatchewan. There are 14 members of Parliament elected from the province of Saskatchewan and 13 of the 14 are Conservatives. It is different when one is on the governing side of the House of Commons. I can say that the members of Parliament who are over here, including you, Mr. Speaker, and I see the member from Saskatoon and others, work incredibly hard, and just because they do not turn red and yell it into a television camera does not mean that they are not working very hard for the people of Saskatchewan. I can say that they are.

This is a very difficult issue and they took their responsibilities seriously to balance the best interests of all of Canada and their constituents, and they did their job.

Opposition Motion--Foreign TakeoversBusiness of SupplyGovernment Orders

4:50 p.m.

NDP

Yvon Godin NDP Acadie—Bathurst, NB

Mr. Speaker, I am not ashamed of turning red when I believe in something. I am not ashamed of speaking from my heart. Too many workers have lost their jobs because of the previous government and the government of today. The people at Vale Inco did not deserve what they got. The people of UPM in Miramichi, which I did not talk about, did not deserve what they got. After the company bought it in 2000, hundreds of people lost their job.

NDP members welcome foreign companies that create good jobs and respect workers. We have said that all along. When a company comes to Canada, we need to know whether it will be a good corporate company that respects workers and Canadians. This motion is all about being able to study companies and not have backroom deals where Canadians cannot find out what is happening. I hope the Conservatives support it because that is what the Minister of Canadian Heritage and Official Languages was saying.

If it upsets him that I get red and emotional, it is because I also serve people. Even if I am not on the government side, people come to my office with tears in their eyes when they lose their job, their pensions and everything for which they have worked for over 35 years. That is what I am talking about, if he were listening.

Opposition Motion--Foreign TakeoversBusiness of SupplyGovernment Orders

4:50 p.m.

NDP

Brian Masse NDP Windsor West, ON

Mr. Speaker, it is important to point out the difference between a hostile takeover and investment. NDP members support investment like EA Sports and others that come to mind but this is a hostile takeover.

I would like to ask my colleague a quick question. The government failed to protect the workers of Inco and Falconbridge where the U.S. courts tied up the chance for us to have a great mining Canadian champion. It allowed Vale and Xstrata to come in and basically suck the blood out of the community, especially when we look at Vale, as opposed to creating a corporate champion in Canada. There is a difference between takeovers and investment and that is what the government does not understand.