National Security Review of Investments Modernization Act

An Act to amend the Investment Canada Act

This bill is from the 44th Parliament, 1st session, which ended in January 2025.

Sponsor

Status

This bill has received Royal Assent and is now 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

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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 by strengthening the government's ability to review foreign investments that may pose a threat to national security or economic interests. The bill introduces measures such as pre-implementation filing requirements, ministerial authority to impose interim conditions on investments, harsher penalties for non-compliance, and improved information sharing with international partners. While the bill has received broad support, concerns have been raised regarding the scope of the reviews and whether the bill goes far enough to protect Canadian assets, intellectual property, and economic sovereignty from hostile foreign actors.

Liberal

  • Modernizing Investment Canada Act: The Liberals support modernizing the Investment Canada Act to address changes such as technological advancements and foreign interference, especially concerning ownership of Canadian companies and assets. The aim is to protect Canadian industries and ensure investments align with Canada's best interests.
  • Protecting national security: The legislation is intended to allow rapid government intervention if foreign investment harms Canada's national security, adapting to the speed of innovation and addressing geopolitical risks. It aims to prevent hostile actors from exploiting Canada’s expertise and capacity for innovation.
  • Balancing economic growth: The Liberals aim to balance welcoming foreign investment with protecting Canada's economic interests and national security. The goal is to attract investment while safeguarding intangible assets like intellectual property and trade secrets, ensuring economic growth and job opportunities without compromising sovereignty.
  • Aligning with international partners: The amendments in Bill C-34 would better align Canada with international partners and allies by introducing requirements for prior notification of certain investments, the authority to impose interim conditions, and the ability to share case-specific information to support national security assessments.

Conservative

  • Inadequate to address threats: The Conservatives believe the bill does not go far enough to address acquisitions by hostile states. Members noted that it has been 14 years since the act was amended and that state-owned enterprises have become extraterritorial in taking over companies globally for their own economic interests. The Conservatives feel the bill is too limited in scope to address the new challenges of a globalized economy.
  • Missed opportunities identified: Conservatives believe the bill does not adequately protect Canadian assets, companies, and sovereignty. They proposed several amendments that were rejected, including modifying the definition of “state-owned enterprises”, listing specific sectors necessary to preserve Canada's national security, and exempting non-Canadian Five Eyes intelligence state-owned enterprises from the national security review process.
  • Cabinet decision-making is essential: The Conservatives are concerned about removing cabinet from the decision-making process, as it eliminates regional perspectives and the breadth of experience from various ministers. An amendment was proposed to ensure that cabinet continues to play an active role in major decisions about foreign investment.
  • Acknowledges positive amendments: Conservatives highlight some amendments that were adopted, including reducing the threshold to trigger a national security review to zero for any investment by a state-owned enterprise and ensuring that items reviewable include acquisitions of any assets by state-owned enterprises. They also included ensuring a review if a company had previously been convicted of corruption charges.

NDP

  • Supports updating the Act: The NDP supports updating the Investment Canada Act (ICA) to reflect changes since 2009. Members believe that the bill creates more tools to ensure foreign investments align with Canada's best interests and national security.
  • Focus on intellectual property: The NDP emphasizes the need to protect intellectual property in a knowledge-based economy, supporting amendments to capture potential investments or acquisitions by foreign actors. They argue that thresholds should consider the economic value of intellectual property to ensure sensitive IP is reviewed appropriately.
  • Weaknesses remain in legislation: NDP members express concerns about the government's willingness to prioritize corporate interests over Canadian interests, citing the Rogers-Shaw merger as an example. They suggest that changing the act is insufficient without the political will to conduct thorough reviews and reject investments that do not benefit Canada.
  • State-owned enterprises: The NDP argues that the act should mandate review of acquisitions by state-owned enterprises of companies previously reviewed by the ICA. They cite the example of Anbang's acquisition of Retirement Concepts and the subsequent seizure by the Chinese government as a reason.

Bloc

  • Supports bill overall: Bloc Québécois supports Bill C-34, which amends the Investment Canada Act to strengthen the government's ability to monitor foreign investments that could compromise Canada's national security. They see it as a necessary first step in an increasingly interconnected world.
  • Protecting Quebec's economy: The Bloc emphasizes the importance of protecting Quebec's economy from potentially detrimental foreign interests. They are concerned about the impact of foreign investment on Quebec's aerospace industry and intellectual property.
  • Coordination with U.S.: The Bloc recognizes that Bill C-34 aligns Canadian security policies with those of the United States. This alignment is essential for Canada to be included in the U.S. industrial modernization strategy.
  • Review threshold too high: The Bloc believes that the bill is incomplete and that the government needs to go further in scrutinizing foreign investment. They advocate for lowering the review threshold so that more investment projects are subject to review.
  • Need economic security: While national security is important, the Bloc emphasizes the need for economic security and long-term prosperity. They caution against the harmful effects of ill-advised foreign investments on the Canadian economy.

Green

  • Bill C-34 concerns: The speaker regrets the limited opportunity for the Green Party to participate in the debate on Bill C-34. There are concerns that cabinet decision-making is too discretionary and worries about foreign investments affecting national security and sovereignty.
  • Aecon takeover concern: The speaker raised concerns about the proposed takeover of Aecon, a large Canadian engineering firm, by a company from the People's Republic of China. They questioned the need for a national security review and highlighted the implications of the Foreign Investment Promotion and Protection Agreement (FIPA) with China.
  • Paper Excellence worries: The speaker is alarmed by the takeover of Canada's pulp and paper production by Paper Excellence, owned by an Indonesian billionaire. They question whether this poses a national security threat and express concern that the acquisition happened without a foreign investment review.
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National Security Review of Investments Modernization ActGovernment Orders

November 6th, 2023 / 5 p.m.

Liberal

Mark Gerretsen Liberal Kingston and the Islands, ON

Madam Speaker, I rise on a point of order. I know that from time to time there are technical difficulties when voting, and we seem to have established a practice of allowing members to register their votes. I note that the last request came a significant amount of time after the fact, but I believe if you seek it, you would find unanimous consent to allow the member for Fundy Royal to cast his vote in favour.

National Security Review of Investments Modernization ActGovernment Orders

November 6th, 2023 / 5 p.m.

The Assistant Deputy Speaker Carol Hughes

Is it agreed?

National Security Review of Investments Modernization ActGovernment Orders

November 6th, 2023 / 5 p.m.

Some hon. members

Agreed.

National Security Review of Investments Modernization ActGovernment Orders

November 6th, 2023 / 5 p.m.

The Assistant Deputy Speaker Carol Hughes

Resuming debate, the hon. member for Stormont—Dundas—South Glengarry.

National Security Review of Investments Modernization ActGovernment Orders

November 6th, 2023 / 5 p.m.

Conservative

Eric Duncan Conservative Stormont—Dundas—South Glengarry, ON

Madam Speaker, I am honoured to rise in the House, as always, and add my voice to the debate we are having here about Bill C-34. When we say “Bill C-34”, most Canadians who are watching or hearing the debate here would know exactly what that means.

I would remind members that today, we have heard several points of order from members on the Liberal side of the aisle who do not like the topics we are covering regarding this legislation. However, Bill C-34 is an act to amend the Investment Canada Act, modernizing ways in which the federal government could attract more investment in this country. This line is very important, because it was the Prime Minister who instructed the industry minister to “Contribute to broader efforts to promote economic security and combat foreign interference by reviewing and modernizing the Investment Canada Act”.

I am going to take the time I have on the floor here today, and hopefully not get “point of ordered” too many times from the other side, to say this: Actions speak a lot louder than words. What we have, after eight years of the NDP-Liberal government, is an economic situation in this country that is not very good. After the vote today, for example, a big contributor to the frustration of millions of Canadians is the punitive and damaging carbon tax that the Liberals, the NDP and the Bloc Québécois are imposing on this country. The carbon tax is bad for our economy, for business, for investment and for Canadian households.

In talking about investing in Canada and competition from other countries around the world, the example I am going to cite is one that the Leader of the Opposition, the member for Carleton, has raised from our neck of the woods in eastern Ontario.

We talk about the government's economic record, its actions and not just its words in a mundane piece of legislation. The Liberals are continuing to endorse the carbon tax, and they voted today against taking the carbon tax off all forms of home heating for all Canadians. If that is not out of touch, then the way we have greenhouses taxed, and the lack of competition, or frankly, taxing them out of business in this country in too many cases, is a perfect example of how the Liberals' policies are failing.

I think of SunTech Greenhouses in Manotick, in Carleton County just north of my riding in eastern Ontario. For years, it has been struggling to compete. It is based in Manotick, here in eastern Ontario, and it is struggling to compete on cost with tomatoes that come from as far away as Mexico, or even farther south than that. Why is that? It is because the greenhouse in eastern Ontario is being nailed with the carbon tax. The irony of all that is the fact that the CO2 it creates does not go into the atmosphere; it goes into the greenhouses and into the plants that are being grown here locally. It is local food, a local economy and local investment, yet it is getting nailed with the carbon tax, which is the height of irony. It is struggling to compete with tomatoes shipped from Mexico, coming up on a ship and then by truck, and those countries are paying no carbon tax whatsoever.

What we are seeing is our potential in agriculture in this country being hurt badly. We are seeing farmers being taxed for growing food, truckers being taxed to ship the food and grocers being taxed to sell the food. It is adding to a competition problem in this country, and it is adding to, not taking away from, the cost of living crisis in every single part of this country.

I think about two areas I have had the opportunity to visit in recent months. Let's say someone runs a business in northern Ontario and is trying to compete for investment into Canada and actually taking the investments here and maybe exporting around the world. Timmins is hundreds of kilometres away from southern Ontario and the United States, our largest trading partner.

Let us just think about it for a second. There are zero rebates for businesses in Timmins when it comes to these carbon taxes that they are being nailed with. This is only just beginning. They are going to be quadrupling in the coming years. If they are trying to compete with a business in, say, Michigan or even the other way around, if a business in Michigan is competing with somebody at the soup and salad bowl, Simcoe County in Ontario, if a business is trying to take the 600 or 700 kilometres up to Timmins to provide groceries and fresh food, they are being nailed with the carbon tax on the Canadian side.

One of the things I think is really important in this debate is what I will say again: actions speak louder than words. We have a modernization effort here in this bill, long past due. We have tried to add to and strengthen the bill in many ways with no success from the Liberal government.

We talk about priorities and we talk about legislation coming forward. There are so many ways to combat the problems we are facing. Axing the carbon tax is a very high priority for a growing number of Canadians. It is not an environmental plan. It is a tax plan and it is punitive to competition and to investment in Canada, as we can see by recent stagnant numbers, which we are continuing to see in economic indicators on inflation, on housing and on our growth as an economy. We are going in the wrong direction.

The other half I want to highlight is when we talk about efforts to combat foreign interference, we will not look at the words. We will look at the actions of the Liberal government the past couple of years.

We have seen multiple efforts by the Prime Minister and the NDP and Liberals voting together multiple times to ignore, brush aside or try to sweep under the carpet the seriousness and magnitude of foreign interference in our country. In response to the bombshell allegations that were leaked by journalists and courageous whistle-blowers who had to come forward to give the information, we found out that there were numerous members of Parliament who were under surveillance, under threat. It was not until these leaked reports and these whistle-blowers came forward and they were published on the front pages of The Globe and Mail and other national publications that the government finally attempted to address the issue.

Look at the Rosenberg report by Morris Rosenberg after the 2021 election. That was an absolute whitewash attempt to cover up the severity and the depths to which the Communist Party in China attempted to interfere in our democratic process. They did not even bother to interview members of the official opposition from the Conservative Party on their experiences and evidence of serious wrongdoing in the 2021 election. They said that report would be good enough and tried to move on.

Second, whenever further allegations came and they were under further pressure, their actions spoke louder than their words. They appointed a special rapporteur. Most people had to google what rapporteur even meant. For months they went on a charade in a process that resulted in the resignation of David Johnston after he lost a lot of credibility—

National Security Review of Investments Modernization ActGovernment Orders

November 6th, 2023 / 5:05 p.m.

Some hon. members

Oh, oh!

National Security Review of Investments Modernization ActGovernment Orders

November 6th, 2023 / 5:05 p.m.

Conservative

Eric Duncan Conservative Stormont—Dundas—South Glengarry, ON

Madam Speaker, I hear the heckling.

National Security Review of Investments Modernization ActGovernment Orders

November 6th, 2023 / 5:10 p.m.

The Assistant Deputy Speaker Carol Hughes

The hon. members are not heckling. I think they are having conversations. I would ask them to have those conversations outside. They have to realize that their voices carry in this House.

The hon. member has one minute to finish up.

National Security Review of Investments Modernization ActGovernment Orders

November 6th, 2023 / 5:10 p.m.

Conservative

Eric Duncan Conservative Stormont—Dundas—South Glengarry, ON

Madam Speaker, I would be uncomfortable if I were the Liberals too, called out for their failed record on combatting foreign interference.

We had a resignation from David Johnston. We had 24 hours of filibustering at a committee because Liberals did not want the Prime Minister's chief of staff to testify. Let us not forget the Winnipeg lab documents where the House of Commons ordered the production of those documents, but the Prime Minister and Liberal government took the Speaker of the House of Commons to court in an attempt to cover up information that Canadians deserved to know.

As we talk about issues of combatting foreign interference, if we talk about issues of strengthening investment in Canada, there are many failings after eight years of the Prime Minister and NDP government that leave a lot to be desired. Bill C-34 is just scratching at the surface of what truly needs to be done.

National Security Review of Investments Modernization ActGovernment Orders

November 6th, 2023 / 5:10 p.m.

Liberal

Mark Gerretsen Liberal Kingston and the Islands, ON

Madam Speaker, correct me if I am wrong, but I heard the member say that he was the government that pushed David Johnston into a position of excusing himself from his responsibilities. If I remember correctly, and maybe the member can remind me, did the member and the Conservative Party not continuously call for that resignation? Am I forgetting something?

I am pretty sure the pressure was primarily coming from the Conservative Party of Canada.

National Security Review of Investments Modernization ActGovernment Orders

November 6th, 2023 / 5:10 p.m.

Conservative

Eric Duncan Conservative Stormont—Dundas—South Glengarry, ON

Madam Speaker, what I am calling out is the Liberals' continued failed attempts to get to the bottom of foreign interference in this country. They appointed a rapporteur who had many conflicts of interest. They created more questions than answers around the process. They set up a process to try to cover up the truth. They did not want a public inquiry and they did everything they possibly could to avoid it.

The Liberals set up the Rosenberg report, they set up the rapporteur and they avoided, like the plague, a public inquiry. It was only pressure from Conservatives that they finally caved and got a public inquiry going in this country.

National Security Review of Investments Modernization ActGovernment Orders

November 6th, 2023 / 5:10 p.m.

NDP

Alexandre Boulerice NDP Rosemont—La Petite-Patrie, QC

Madam Speaker, I will try to ask a question that has to do with the bill before us.

There are two things that must be assessed when it comes to foreign investments. First, we must determine whether there is a net benefit for the Canadian economy. Second, we must take into account any national security considerations, which the member spoke a lot about.

Since this is the digital age, many countries are saying that digital infrastructure should be considered critical infrastructure and that it sometimes needs protecting from potentially hostile foreign investments. Does the member agree with me that the telecommunications sector should be considered critical and strategic infrastructure here in Canada?

National Security Review of Investments Modernization ActGovernment Orders

November 6th, 2023 / 5:10 p.m.

Conservative

Eric Duncan Conservative Stormont—Dundas—South Glengarry, ON

Madam Speaker, I will echo what many of my colleagues on this side have raised. Members who are on the industry committee will know, when this bill was at committee and amendments were being considered, we put forward 14 different amendments to try to add a more rigorous review process of acquisitions and investments from foreign-state enterprises entering Canada. Just to understand how seriously the Liberals take this issue, of the 14 amendments that would strengthen the process even further, only four of them passed.

I would say to the member from the NDP who voted for time allocation and voted for all this to proceed that they are going along with the Liberals and only passing, for example, four of 14 amendments that would further strengthen the bill.

National Security Review of Investments Modernization ActGovernment Orders

November 6th, 2023 / 5:15 p.m.

Conservative

Larry Maguire Conservative Brandon—Souris, MB

Madam Speaker, I would like my colleague to elaborate a bit more on the topic he was just speaking of.

I would also ask him, because this is on national review, to talk about the kinds of supports needed by our industry in continuing to grow our export volumes in just about all the products we have.

National Security Review of Investments Modernization ActGovernment Orders

November 6th, 2023 / 5:15 p.m.

Conservative

Eric Duncan Conservative Stormont—Dundas—South Glengarry, ON

Madam Speaker, a lot of time with legislation, what happens is that the details, what the government is going to be doing through regulation afterward and the process will be very key. I know of many incidents and examples, by colleagues at committee, of trying to understand what protocol, processes and resources would be provided for this year. There needs to be a time frame for review for when a decision will be made, and making it as clear and as quick as possible in order to continue with investments that are worthwhile and are not of a national security concern or threat. We need to address those in an expedited or reasonable time frame.

There were not a lot of assurances from the other side of the number of employees, the number of regulations, the time frame and the processes. Again, we are going to have to wait and see the actions of the government in the coming years. If it is based on other pieces of legislation, we do not need a ton more bureaucracy and cost to the taxpayer.