Bill C-34

National Security Review of Investments Modernization Act

An Act to amend the Investment Canada Act

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.

National Security Review of Investments Modernization Act

[Richard Cannings, NDP, South Okanagan—West Kootenay, BC]

Mr. Speaker, I do not believe the member was listening carefully enough, because I never said any of those things.

What I said was that the Mulroney government did not—

[Rick Perkins, Conservative, South Shore—St. Margarets, NS]

Not true. I was there.

[Richard Cannings, NDP, South Okanagan—West Kootenay, BC]

Mr. Speaker, all the examples the member gave were from the Harper government, and I praised Harper in the speech. I do not do that very often. I just wanted to point that out. I was saying that Harper changed all that; actually, I could have mentioned PotashCorp and all those things, because that was in my notes as well. I just did not want to go there. I just want to put that on the record.

As to the member's question about cabinet versus the minister, the NDP voted with the Conservatives on that amendment, so I think that settles that.

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Mr. Speaker, I will let the other two figure out the Mulroney versus Harper era.

The member referred to AI. Canada, in very real and tangible ways, is in fact leading the world in certain aspects. AI is so encouraging and important, and by modernizing the legislation, we would be able to have more protection, so we do not have foreign investment coming into Canada and then lose control of some of that critically important AI development.

Would the member agree with that?

[Richard Cannings, NDP, South Okanagan—West Kootenay, BC]

Mr. Speaker, I would totally agree.

In my speech, I briefly mentioned the need to really develop and bolster our intellectual property programs and culture in Canada. That is outside this act, which controls investment and the takeovers of Canadian companies. We are studying this in the science and research committee right now, about how exposed a lot of Canadian research and development is to foreign takeover, foreign theft and foreign entities taking our intellectual property because they have the legal right to it.

The value in these companies today is intellectual property. AI is one example. It is lost so quickly and easily. We have to do everything, controlling it not only in these acquisition regulations but also in the period of science and research that leads up to some of these investments.

[Charlie Angus, NDP, Timmins—James Bay, ON]

Mr. Speaker, what was raised here was about the Stephen Harper years.

Stephen Harper sold off a massive amount of natural resources to state-owned Chinese companies in a $15-billion Nexen takeover, then signed a secretive free trade agreement with China. He handed the Chinese Communist Party baskets of blueberries to show our good faith.

Now the Conservatives are saying that the world has changed; that was a different Communist government then. They rail about Communist governments now because of the Liberal government. However, the former Conservative government gave up $15 billion of Canada's natural resources to a foreign state-owned company.

That is the history of the Conservative Party, of Stephen Harper and of Brian Mulroney. It is certainly going to be the history, if ever that dark history is written, of the member who represents the party now. How does my hon. colleague think that the Conservatives could now pretend to defend the national interests, when they sold us down the river every chance they got?

[The Deputy Speaker, Chris d'Entremont]

I would just like to know whether they were blueberries from Nova Scotia or New Brunswick.

[Richard Cannings, NDP, South Okanagan—West Kootenay, BC]

Mr. Speaker, I am sure they were blueberries from British Columbia. They are bigger and better.

I mentioned in my speech the fact of two very significant takeovers that happened during the Harper era. One was from, basically, the Chinese government, in our oil patch; the other was from Petronas, the Malaysian oil and gas company.

Canada has, since its inception, relied on its natural resources to be the basis of our wealth. This is basically our birthright. It is what we have to really develop the Canadian economy. Therefore, I think we have to be very careful about any takeovers by companies that give foreign companies and, especially, foreign governments control over our natural resources, especially one as important as oil and gas.

I think it is ironic, as I mentioned in my speech, that the Harper government banned the sale of oil and gas companies to foreign entities as soon as they approved those two acquisitions.

I think it is certainly something that we have to really be careful of in the future. Hopefully, these incremental changes in Bill C-34 will help us do that.

[Mario Simard, Bloc, Jonquière, QC]

Mr. Speaker, I feel I must rise because of my colleague's unacceptable remarks.

I come from Saguenay—Lac‑Saint‑Jean. They call us the “Bleuets”. I am offended by my colleague's claim that the best blueberries in the world come from his region. My entire region must be offended, and I would like to give my colleague the chance to take back his comments as a courtesy to the people of Saguenay—Lac‑Saint‑Jean.

He may also wish to continue talking about the importance of natural resources in the context of this bill.

[Richard Cannings, NDP, South Okanagan—West Kootenay, BC]

Mr. Speaker, perhaps I should back down now and apologize for one part. I said they were bigger and better. They are certainly bigger in British Columbia. The taste may be up for debate.

I would like to thank the member for the last part of his question. I know he is a real advocate for natural resources in Canada and Quebec, especially forestry.

I am from British Columbia, where forestry has been the driver of our economy since before I was born. It is becoming less important now, but it is still a huge part of our economy.

The history of British Columbia's forestry is a history of foreign acquisitions. A lot of the companies that really control our forest ecosystems in British Columbia were gradually taken over, as 95% of our forests are basically leased out in very long-term leases and tree farm licences in British Columbia to private companies.

Some are held by Canadian companies and some by foreign companies. This whole process has to be really monitored and regulated very carefully if we are to protect the value of those forests for the future, whether it is in terms of timber and fibre, the watershed providing clean water, biodiversity or all the benefits that wild forests can have.

This is, again, something that we should really be looking at when we think about foreign investments in Canada.

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Mr. Speaker, for the last minute or so, I have been sitting in my chair contemplating a private member's resolution perhaps in the future to talk about blueberries. The member from B.C. was talking about the blueberries from B.C. My colleague from Fredericton was talking about the lovely blueberries in communities around Fredericton, and there are blueberries in the province of Nova Scotia. I can attest there are blueberries growing even in the province of Manitoba. From coast to coast to coast, and I believe even in Yukon, we can get blueberries, but do not quote me on that.

What we could all agree on is that blueberries are very healthy. We know that for a fact. It is a nutritional powerhouse for one's diet, so we should all be eating blueberries, no matter where they come from. I will wait for the private member's motion at some point in the future to add to those thoughts.

Having said that, I am grateful that today we are debating Bill C-34 and that the Conservative Party did not move a motion for concurrence. That means we actually get to debate the legislation that was intended to be debated. That is how I would start off in terms of good news, in recognizing that the Conservatives have provided us the opportunity to debate the bill. However, members will recall that we did have to bring in time allocation in order to get the bill to the committee, in order to ultimately get it to third reading.

I am going to continue to be a little optimistic. I have listened to the speeches on all sides of the House, and there are a couple of thoughts that come to my mind.

First, members seem to recognize that it is important that we modernize and update the legislation and justifiably so. Over the last decade-plus, which is the last time we actually saw any form of substantial change to the legislation, a lot has changed.

In the question I posed to the previous speaker, I talked about AI. It is incredible the degree to which AI has grown in the last number of years. It was not that long ago when someone sitting beside me in the chamber said, “Pick a topic, Kevin.” I think I can say my first name, Mr. Speaker. I picked a topic and used the example of the Philippines. Moments later a speech that I would apparently be comfortable saying appeared right there, in one minute. It was a detailed speech talking about the Philippines—

[Charlie Angus, NDP, Timmins—James Bay, ON]

Mr. Speaker, on a point of order, could we have the chatbot version instead of the real one? It might be more to the point. I would certainly be willing to include it, and if we need unanimous consent, I would support that.

[The Deputy Speaker, Chris d'Entremont]

This is getting into debate, and the hon. member can use his first name any time he wants to.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, I am not that up on technology and social media to be able to talk about chatbots.

The point is, as other members have made reference to, that things have changed considerably, and one of those things is dealing with technology and amplifying the issue of AI.

It is interesting when I listen to the Conservatives, and their critic in particular. They have so many reservations about seeing this legislation ultimately pass. We saw that in their statements today and in the questions they are posing. Earlier today, one of the Conservative members stood in her place and talked about how bad the Government of Canada, that we kind of sneak around to do things, and then asked why we would want a minister to be responsible. I asked the member to reflect on an incident that occurred a number of years ago.

When Stephen Harper was the Prime Minister of Canada, he ventured over to China and I believe brought back a commitment to bring panda bears over from China. What was not well advertised was that he put in place an investment protection agreement. The other day I made reference to it as a free trade type of agreement. The member for Abbotsford stood in his place and demanded that it was not a free trade agreement, but rather it was an investment protection agreement.

We can play with words all we want, but the bottom line is that agreement was done in complete secrecy. Therefore, when Conservatives stand up and talk about how we are going to give all this power to the minister, I think they should reflect on Prime Minister Stephen Harper and the manner in which he put into place a substantive agreement known as an investment protection agreement between Canada and China.

If we contrast that to many of the things the Conservatives are saying during the debate on Bill C-34, I think they would be a bit surprised with what would have happened had they had the same principles they have today back when that agreement was signed with China, because we know what their attitude toward China is today.

I say that because, when I think of the legislation, I believe that having the authority lie with the minister, who has an obligation to consult with the public safety minister, which is often not mentioned, adds a great deal of strength to the legislation. Ultimately, there is accountability for the minister that takes place in different forums, whether it is through question period, orders for return, the minister going to committee or in the form of written letters. Today there are many types of mainstream media outlets that members can go to, as well as social media. There are many different ways in which the opposition is able to track, oppose and raise the level of public debate on issues.

Therefore, I do not share the concerns that members across the way have with this legislation now giving more authority to the minister. The minister can now request a further national security review.

We need to recognize that the primary purpose of this legislation is to protect Canada's best interests on the issue of foreign investment. It is interesting. We have heard in the chamber a great deal about foreign interference. We have had committees study it. We have had a public inquiry of sorts looking into the issue of foreign interference.

Investment is another way in which countries can, in fact, cause issues related to foreign interference concerns. I would have thought that would have elevated the need to see this type of legislation not only being talked about, but also passed.

The New Democratic critic was talking about amendments, as was the Conservative critic. They were talking about the amendments that were not passed. There are two issues that I would highlight, which the members did not reference.

One issue is that, in approaching the committee, the government was very open to improving the legislation through amendments, if the amendments could improve the strength of the legislation. What we saw, as we often see, at least in this government, was a willingness and an openness not only to listen to potential amendments, but also where it makes sense and adds true value in terms of the strength and scope of the legislation, to see the amendments pass. We saw that at the committee stage. We saw significant amendments proposed and passed. Not all amendments passed. A member referenced one of the amendments that he was concerned about, but then he was assured that the minister already would have the authority to be able to do it, and the amendment was not approved.

The point is that today the legislation is even stronger than it was prior to going to committee. That is why we, including me, pushed very heavily to get Bill C-34 out of second reading so that we could get it to committee stage and look at potential amendments.

Members can correct me if I am wrong, but at the end of the day, I believe that the legislation is going to be receiving all-party support. I am not too sure about the Green members, but I do believe it will be receiving substantial support.

I know there are other pieces of legislation that the opposition has concerns about. The Ukraine trade agreement is one of them. Much to my surprise and the surprise of many, it would appear that the Conservative Party might not be supporting that particular agreement. It is important. It is an important part of foreign investment, and let me tell members why.

At the very beginning, back in 2015, when we took office, we made it very clear that as a government we wanted to be there to support Canada's middle class and those aspiring to be a part of it. I suspect that if members were to do a search in Hansard, they would find that I have re-emphasized that on many occasions. That is the type of action and the type of budgetary and legislative measures that we have put into place to support Canada's middle class and those aspiring to be a part of it, not to mention the many other policies to assist in lifting other individuals, including seniors and children, out of poverty.

A big part of that is to recognize that Canada is a trading nation. When I say it is a trading nation, we can look at the number of agreements that were signed off by this government. Never in history has a government signed off on as many trade agreements as this Prime Minister has. That is a clear fact.

No doubt there was some preparatory work done under the previous administration, but the signing off and the finalizing of those agreements were done under this administration. Trade is important to our communities in all regions of our country.

I have referred to HyLife, as an example, in the community of Neepawa, Manitoba. At HyLife, they process literally hundreds, if not thousands, of pigs every month, and likely thousands of pigs are processed every day in Neepawa. Think about the jobs created as a direct result, whether in the farming community or on the factory floor. Colleagues may be surprised to know that the last time I had a tour of the facility, 98% of what was coming off the floor was being exported to Asia.

That particular firm is not alone. I think it amplifies how important trade is and the opportunities that trade provides. Think about investments. Having those trade agreements encourages more investment, foreign investment. When people look at those direct jobs I referred to, they should think about the indirect jobs that are a direct result of those. Farming and working in factories, and every job in between, could be classified as direct jobs. Indirect jobs would be selling cars, and making restaurants, houses and appliances. Those are all indirect jobs because of the economics of having that particular processing facility, all of which demonstrates why trade is so important.

Let us compare Canada to any other country in the world, including the U.S.A., and it has trade agreements that expand the world. As a result, as part of having those special relationships with countries around the world, it sends another message that Canada is not only a good country to trade with but also a good country to invest in. I believe, if we apply that perspective to the advancements we have seen in small businesses in every region of our country, whether small, medium or big, we should all be concerned about how money is flowing into the country and being invested in companies that are already up and running. As I indicated, if we think back to foreign investments in 2009-10, the world was very different, with respect to technology and AI.

There are so many other factors at play. That is why it is important that we bring forward Bill C-34. By doing that, we are ensuring Canadian interests are, in fact, protected. An ideal example of that would be any foreign company investing in a company in Canada for the purpose of taking it over and then potentially shutting it down, or taking the technological advances or AI development within it and taking it out of the country, thereby limiting potential growth in that area, especially in areas of expertise.

My friend from the Bloc referred to the industries in the province of Quebec. In the preamble of my question to him, I pointed out that there are a lot of similarities between Quebec and Manitoba. Manitoba's aerospace industry is very important. The other day, I met with someone at StandardAero, and we talked about the importance of the aerospace industry and engines. That company has been in Manitoba for over 100 years.

There are all sorts of things that take place in our specialized industries, whether it is aerospace or hydro, again, something we have in common with the province of Quebec. There are certain sectors throughout the country in which I suggest we are on the leading edge, and we need to be very cognizant that some outside characters might not necessarily be acting in good faith when they say they want to acquire company X. That is why it is important that this legislation passes. It is important that the minister has the ability to make those decisions and to work with the Minister of Public Safety.

There are many other ways to ensure there is public awareness and a high sense of accountability, which I alluded to earlier. It is why I am hoping the Conservatives, the opposition, will recognize the value of the legislation. It is now at third reading. It is in a great position to pass and, hopefully, time allocation will not be required.

[John Brassard, Conservative, Barrie—Innisfil, ON]

Mr. Speaker, I chuckled when the hon. member mentioned middle-class Canadians, or those aspiring to be. It is funny how, after eight years, middle-class Canadians are now just trying to stay in the middle class as a result of all the policies of the government, with the affordability and inflation crisis caused by overspending and the debt that has accumulated.

I want to speak specifically about Bill C-34 and the mandatory notice regime. There seems to be a lot of uncertainty within industry right now as it relates to the applications that are in the process, in some cases by minority investors. As for the definition of the mandatory notice regime, and specifically what categories of investment would fall into that, there seems to be a little uncertainty. I wonder if the hon. member can tell us what that would be.