Bill C-34 (Historical)

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

François-Philippe Champagne  Liberal

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 amending the national security review process for foreign investments. The proposed changes include requiring prior notice for certain investments, granting the Minister of Industry more authority in the review process, increasing penalties for non-compliance, allowing interim conditions to be imposed on investments, facilitating information sharing with international partners, and introducing new provisions for protecting sensitive information during judicial reviews. While the bill intends to strengthen national security and align Canada with international allies, concerns have been raised regarding the scope of the changes and the potential impact on foreign investment and economic growth.

Liberal

  • Modernizing investment review: The legislation represents the most significant update of the ICA since 2009 and is required to adapt to the current geopolitical landscape. The goal is to review and modernize key aspects of the act, while ensuring the framework to support needed foreign investment remains strong and open.
  • Bolstering national security: The bill seeks to ensure Canada remains a top destination for foreign investors while also protecting national security. This includes updating policies to improve transparency, addressing investments originating from hostile states, and introducing a voluntary filing mechanism for investors.
  • Enhancing review efficiency: Proposed amendments aim to make the national security review process more efficient. Measures include granting the Minister of Industry the authority to extend reviews, updating penalties for non-compliance, and enabling the imposition of interim conditions on investments.
  • International cooperation: The bill would allow Canada to share case-specific information with international counterparts to protect common security interests. This collaboration is vital for addressing investors active in multiple jurisdictions seeking sensitive technologies.

Conservative

  • Supports the bill in principle: The Conservatives will vote in favour of Bill C-34 at second reading, viewing it as an improvement, but plan to seek considerable amendments at the committee stage.
  • Focus on China's influence: Much of the debate is about the People's Republic of China and state-owned investments in Canada, particularly those that may contravene national security interests or harm the Canadian economy and workers.
  • Strengthen national security: The party believes that the bill should give the Minister of Industry more time and authority to assess foreign transactions that might compromise national security, as well as make more severe the penalties for violating the Investment Canada Act.
  • Addresses gaps and loopholes: The Conservatives believe the bill does not address the sale of assets of companies, the record of the current government regarding China's takeover of important assets, or the need for automatic review of state-owned enterprises from authoritarian or hostile countries.
  • Recommends lower threshold: Members are seeking amendments to move the threshold for state-owned enterprises to zero, requiring the minister and the department to review all proposed investments, and to include a provision to list countries that are not advantageous or are a threat to our economy.
  • Need for cabinet involvement: The Conservatives want to ensure that when a decision is determined to be a net benefit, or not, or when the research comes back and says it is a national security interest, or not, that the issue should always go back to cabinet for discussion before the final decision is made.
  • Need a Made-in-Canada strategy: The Conservatives propose a made-in-Canada strategy that ensures our resources, IP, people, and talent stay in Canada and are protected.

NDP

  • Amendments to strengthen the bill: The NDP will be bringing amendments to Bill C-34 at committee to address weaknesses in Canada's outdated competition law. They hope to receive support from other parties to strengthen the bill.
  • Screening non-democratic governments: The NDP is calling for additional security screens for investments from non-democratic governments. They will also be seeking an amendment to address the issue of private equity firms buying up iconic Canadian companies with unknown ownership.
  • Transparency for taxpayer-funded companies: The NDP believes there should be full disclosure and public review when a Canadian company that has received taxpayer money through tax credits or innovation support is taken over by a foreign company. This would provide transparency and accountability for the use of public funds.
  • Protecting Canadian innovation: The NDP is concerned about Canadian taxpayers' money going to corporations that then move innovation out of the country. They believe the bill should address this issue and ensure that Canadian innovation remains in Canada.

Bloc

  • Supports national security focus: The Bloc supports the bill's focus on national security. They believe the bill improves oversight of investments that may be injurious to national security.
  • Bill doesn't go far enough: The Bloc believes that the bill does not do enough to protect Quebec's businesses and economy. They argue that the government has missed an opportunity to strengthen Quebec's business network and prevent resources from going offshore.
  • Threshold too high: The Bloc criticizes the high threshold for investment reviews, stating that 99% of foreign investments are automatically authorized without review. They propose lowering the threshold to prevent the transfer of intellectual property and talent to foreign companies.
  • Need economic security too: The Bloc argues that the bill's focus on national security neglects the gradual loss of control over the economy. They advocate for another bill to modernize the entire Investment Canada Act, emphasizing the importance of economic security alongside national security.
Was this summary helpful and accurate?

National Security Review of Investments Modernization ActGovernment Orders

March 31st, 2023 / 12:40 p.m.

The Acting Speaker Mike Morrice

Is that agreed?

National Security Review of Investments Modernization ActGovernment Orders

March 31st, 2023 / 12:40 p.m.

Some hon. members

Agreed.

The House resumed from March 31 consideration of the motion that Bill C-34, An Act to amend the Investment Canada Act, be read the second time and referred to a committee.

National Security Review of Investments Modernization ActGovernment Orders

April 17th, 2023 / 3:10 p.m.

The Speaker Anthony Rota

Pursuant to order made on Thursday, June 23, 2022, the House will now proceed to the taking of the deferred recorded division on the motion at second reading stage of Bill C-34.

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

Vote #293

National Security Review of Investments Modernization ActGovernment Orders

April 17th, 2023 / 3:25 p.m.

The Speaker Anthony Rota

I declare the motion carried. Accordingly, the bill stands referred to the Standing Committee on Industry and Technology.

(Bill read the second time and referred to a committee)

National Security Review of Investments Modernization ActGovernment Orders

April 17th, 2023 / 3:25 p.m.

The Speaker Anthony Rota

I wish to inform the House that because of the deferred recorded division, Government Orders will be extended by 12 minutes.

National Security Review of Investments Modernization ActGovernment Orders

April 17th, 2023 / 3:25 p.m.

Liberal

Jennifer O'Connell Liberal Pickering—Uxbridge, ON

Mr. Speaker, I rise on a point of order.

Following question period on March 31, the member for Fort McMurray—Cold Lake rose on a point of order and accused me of making statements about her. I want to unequivocally again deny that any such remarks were made by me, but in reaction to that assertion, I used unparliamentary language. While I hope everyone can understand why my reaction was so strong, I have the utmost respect for this House, for the rules that govern it and for all hon. colleagues. That is why I rise to withdraw, and apologize for, the inappropriate use of the word “lie”.

National Security Review of Investments Modernization ActGovernment Orders

April 17th, 2023 / 3:25 p.m.

The Speaker Anthony Rota

I want to thank the hon. member for her apology. She is rising on a question of privilege, as well.