Bill C-34

National Security Review of Investments Modernization Act

An Act to amend the Investment Canada Act

Sponsor

Status

This bill has received Royal Assent and is, or will soon become, law.

Summary

This is from the published bill. The Library of Parliament has also written a full legislative summary of the bill.

This enactment amends the Investment Canada Act to, among other things,
(a) require notice of certain investments to be given prior to their implementation;
(b) authorize the Minister of Industry, after consultation with the Minister of Public Safety and Emergency Preparedness, to impose interim conditions in respect of investments in order to prevent injury to national security that could arise during the review;
(c) require, in certain cases, the Minister of Industry to make an order for the further review of investments under Part IV.1;
(d) allow written undertakings to be submitted to the Minister of Industry to address risks of injury to national security and allow that Minister, with the concurrence of the Minister of Public Safety and Emergency Preparedness, to complete consideration of an investment because of the undertakings;
(e) introduce rules for the protection of information in the course of judicial review proceedings in relation to decisions and orders under Part IV.1;
(f) authorize the Minister of Industry to disclose information that is otherwise privileged under the Act to foreign states for the purposes of foreign investment reviews;
(g) establish a penalty not exceeding the greater of $500,000 and any prescribed amount, for failure to give notice of, or file applications with respect to, certain investments; and
(h) increase the penalty for other contraventions of the Act or the regulations to the greater of $25,000 and any prescribed amount for each day of the contravention.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from Parliament. You can also read the full text of the bill.

Bill numbers are reused for different bills each new session. Perhaps you were looking for one of these other C-34s:

C-34 (2021) Law Appropriation Act No. 3, 2021-22

C-34 (2016) An Act to amend the Public Service Labour Relations Act and other Acts

C-34 (2014) Law Tla'amin Final Agreement Act

C-34 (2012) Law Appropriation Act No. 4 2011-12

Votes

Nov. 20, 2023 Passed 3rd reading and adoption of Bill C-34, An Act to amend the Investment Canada Act

Nov. 7, 2023 Passed Concurrence at report stage of Bill C-34, An Act to amend the Investment Canada Act

Nov. 7, 2023 Failed Bill C-34, An Act to amend the Investment Canada Act (report stage amendment) (Motion 3)

Nov. 7, 2023 Passed Bill C-34, An Act to amend the Investment Canada Act (report stage amendment) (Motion 1)

Nov. 6, 2023 Passed Time allocation for Bill C-34, An Act to amend the Investment Canada Act

April 17, 2023 Passed 2nd reading of Bill C-34, An Act to amend the Investment Canada Act

Debate Summary

This is a computer-generated summary of the speeches below. Usually it’s accurate, but every now and then it’ll contain inaccuracies or total fabrications.

Bill C-34 aims to modernize the Investment Canada Act to better protect Canada's national security and economic interests amidst increasing global complexities and security threats, particularly related to foreign investments. The bill introduces measures to strengthen the review process for foreign investments, enhance information sharing with international partners, and impose stricter penalties for non-compliance. While supported by most parties, concerns have been raised regarding the scope of ministerial power and the need for more comprehensive reforms to address economic sovereignty, especially in relation to state-owned enterprises from authoritarian states.

Liberal

Modernizing investment act: The Liberals are in favour of modernizing the Investment Canada Act to create business-friendly conditions based on stable regulations. Bill C-34 is intended to encourage economic growth and employment by only intervening if an investment is potentially harmful to Canada's national security while permitting quick action and judgments as circumstances warrant.
Protecting Canadian interests: The Liberals believe that the Investment Canada Act must be modernized to offer additional protections against hostile actors exploiting Canada's expertise and capacity for innovation. The act played an important role in Canada's response to the Russian invasion of Ukraine and it is key to protecting Canada's economic interests from hostile foreign actors.
Alignment with allies: Bill C-34 is designed to bring Canada into greater alignment with its international partners and allies, addressing common threats and maximizing collective effectiveness. The new requirement for prior notification of certain investments allows Canada to have better and earlier oversight over investments in certain sensitive sectors.
Protecting national security: Bill C-34 will encourage positive investment without compromising national security, ensuring that Canada gets the best of both worlds. The bill provides a solid framework to address evolving geopolitical threats while aligning Canada's review regime with its international allies.

Conservative

Bill inadequate protection: The Conservatives believe that Bill C-34 does not go far enough to protect Canada’s economic and security interests. They proposed 14 amendments at committee to intensify the review process of business acquisitions from foreign state-owned entities, but most were rejected.
Ministerial power grab: Conservatives are concerned the bill gives too much power to ministers. They will continue to push for the deletion of clause 15, which they believe will ensure that cabinet decision-making is central to the investment review process, rather than a ministerial power grab.
Concerns over Chinese investment: The Conservative speakers raised concerns about the significant presence of state-owned enterprises, particularly from China, within the Canadian economic landscape. They believe the measures in Bill C-34 are not sufficiently robust to address the challenge posed by China.
Past failures: Speakers pointed to past failures in the investment review process, citing instances where foreign acquisitions proceeded with insufficient scrutiny. Examples mentioned included the case of Norsat International, the acquisition of Neo Lithium Corp. by Zijin Mining, and the Canada Border Services Agency's use of Hytera Communications equipment.

NDP

Updating Investment Canada Act: The NDP supports updating the Investment Canada Act to ensure foreign investments benefit Canadians and do not harm national security, acknowledging the need to modernize regulations in light of changing investment trends.
Protecting intellectual property: The NDP emphasizes the importance of protecting Canadian intellectual property, especially in the tech sector, by implementing pre-implementation filing requirements to review takeovers before the transfer of intellectual property occurs.
Reviewing state-owned enterprise takeovers: The NDP advocates for mandating the review of acquisitions by state-owned enterprises of companies previously reviewed by the Investment Canada Act, citing concerns about foreign governments gaining control of sensitive assets like long-term care homes.
Privacy and data protection: The NDP stresses the need to amend the Investment Canada Act to allow for privacy protection reviews, highlighting concerns about foreign entities compromising Canadians' personal information and digital rights through hotel acquisitions.

Bloc

Supports bill C-34: The Bloc Québécois supports Bill C‑34 because it strengthens the federal government's powers regarding oversight of investments that could compromise Canada's national security. They see these amendments as a logical evolution in an increasingly interconnected world.
Needs more transparency: The Bloc pushed for greater transparency around national security in decision-making mechanisms. They secured a commitment from the minister to disclose certain information and require parties to a transaction to disclose the names of individuals benefiting from the new company, but more is needed.
Economic levers unprotected: The Bloc urges the government to improve overall oversight of foreign investment to preserve head offices, economic leverage, and control over resources, which Bill C-34 does not fully address. They believe the government missed an opportunity to review the thresholds to which mergers and acquisitions must be subject.
Modernize entire act: The Bloc invites the government to table another bill to modernize the entire Investment Canada Act, not just the part on national security. They feel the government should significantly lower the threshold beyond which it authorizes foreign investments without a review.

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National Security Review of Investments Modernization ActGovernment Orders

November 9th, 2023 / 4:35 p.m.

The Deputy Speaker Chris d'Entremont

Pursuant to Standing Order 45, the division stands deferred until Monday, November 20, at the expiry of the time provided for Oral Questions.

The hon. member for North Okanagan—Shuswap.

National Security Review of Investments Modernization ActGovernment Orders

November 9th, 2023 / 4:35 p.m.

Conservative

Mel Arnold Conservative North Okanagan—Shuswap, BC

Mr. Speaker, if you seek it, I believe you will find unanimous consent to see the clock at 5:30 p.m. so we can begin Private Members' Business.

National Security Review of Investments Modernization ActGovernment Orders

November 9th, 2023 / 4:35 p.m.

The Deputy Speaker Chris d'Entremont

Is it agreed?

National Security Review of Investments Modernization ActGovernment Orders

November 9th, 2023 / 4:35 p.m.

Some hon. members

Agreed.

The House resumed from November 9 consideration of the motion that Bill C‑34, An Act to amend the Investment Canada Act, be read the third time and passed.

National Security Review of Investments Modernization ActGovernment Orders

November 20th, 2023 / 3:20 p.m.

The Speaker Greg Fergus

It being 3:25 p.m., the House will now proceed to the taking of the deferred recorded division on the motion at third reading stage of Bill C‑34.

Call in the members.

(The House divided on the motion, which was agreed to on the following division:)

Vote #449

National Security Review of Investments Modernization ActGovernment Orders

November 20th, 2023 / 3:35 p.m.

The Speaker Greg Fergus

I declare the motion carried.

(Bill read the third time and passed)