Thank you very much.
Mr. Wallace.
Evidence of meeting #5 for Finance in the 39th Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was going.
A recording is available from Parliament.
Evidence of meeting #5 for Finance in the 39th Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was going.
A recording is available from Parliament.
6:15 p.m.
Conservative
Mike Wallace Conservative Burlington, ON
Mr. Jarislowsky, you chatted to us today about preventing companies from being purchased by foreigners. You also said that Canada should not be in the bailout business, and so on. My question is more philosophical, and I'm sure you've thought about this.
My concern has always been why Canadians aren't more aggressive in their investments. Why are we complaining that foreign companies and foreign investors are buying Canadian companies? What's wrong with Canadians doing it? I asked a professor who was at a previous meeting a similar question.
I know you understand the marketplace quite well. Why should we be putting a moratorium on that? Why don't we do something to convince Canadians that they should be investing in their own companies? I'd like to know what your response is to that.
6:15 p.m.
Chairman and Director, Jarislowsky Fraser Limited
There's absolutely no question that Canadians invest in their own companies. Our firm invests in Canadian companies, but it also invests enormously in foreign companies at this stage because we can't find many of the industries in which we like to invest in Canada.
In the case of Alcan, for years and years it was not an extremely well-managed company. The foreigners got big benefits out of it because they had economies they could make between their companies and Alcan, etc., which obviously a Canadian company alone wouldn't have.
I'm basically not against takeovers, but I am against takeovers at a specific time, as we had here recently. If because of the takeover we close enormous sectors of our economy and destroy capital for years to come on a semi-permanent or permanent basis, that is the time to close this kind of border.
Further, I believe that many countries in the world would never have permitted such takeovers of practically every large mining company in this country except one, which couldn't be taken over because it had multiple voting shares.
6:15 p.m.
Bloc
Paul Crête Bloc Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC
Thank you.
Mr. Pellerin, we often hear that there is a crisis in the lumber industry, but we often completely forget the people who grow the trees, the lot owners. I would like you to tell us a little more about them. You talked about an assistance plan, but, at the moment, are there any specific measures that would help forest owners survive this situation? From what I understand, they are now keeping their wood because they cannot sell it at a reasonable price.
6:15 p.m.
President, Union des producteurs agricoles
The law in Québec is supposed to give supply priority to private forest owners and to link the price of wood from crown land to sales from private lots. Not many ministers would dare apply that principle to the letter. The area is out of control and the place of privately held forests in Québec is quietly eroding. In Québec, 130,000 private owners supply 20% of the wood being processed. It is still significant.
Industry, forestry workers, mill workers, everyone has received some assistance to get through the present crisis, except the owners. What can be done for these private forest owners? They cannot sell, there is no market. Can we use the time to establish forest management programs designed to increase the value of the forest, like selective thinning, draining and land improvement? Now would be a good time to keep the workers and the equipment working in order to enhance the value of the wood in the years to come, in one or two years, when the good times are back.
6:15 p.m.
Bloc
Paul Crête Bloc Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC
That is kind of news that ...Editorial note: inaudible.
6:15 p.m.
Conservative
The Chair Conservative Rob Merrifield
Thank you very much. I think we'll leave it there.
We want to thank you for coming in and presenting before the committee. We will take your comments forward and hopefully address them in our report. We want to thank the committee for their good questioning.
The meeting is adjourned.