Thank you, Mr. Chair.
Good morning.
We are proposing that clause 192 be amended by replacing line 9 on page 110 with the following: “following year, $300,000,000; and”. Now I will explain why we are asking for the amendment. It's important to understand that, originally, the change the government sought was to raise the reviewable investment amount, pursuant to the Investment Canada Act, from $600 million to $1 billion.
Our party sees that as a very bad idea because the Investment Canada Act requires the economic development minister to review foreign investments exceeding a certain amount. To that end, the minister has to examine whether the transaction is sound. That's called a net benefits analysis. He also has the power to allow or refuse the transaction and even to attach conditions to it. We believe that setting the reviewable investment amount at $300 million, as opposed to $1 billion, would be much more appropriate. The reality is that very few of Quebec's big companies on the Toronto Stock Exchange are valued at over $1 billion. You can count them on two hands; there are fewer than 10.
When the act came into force, the amount was set at $300 million, which was in line with what had been negotiated under the North American Free Trade Agreement, NAFTA. We would even be in favour of setting the threshold below $300 million, but we do think $300 million is a reasonable number, and that is why we are proposing it.
It would apply to companies like RONA bought by foreign interests. That deal was worth over $1 billion. You also have companies like Canam Group, a company worth less than $1 billion that was recently bought by the Americans. When a purchase exceeds that amount, to protect national interests, the minister is able to review the transaction and determine whether or not it should proceed and can attach conditions to it. In our view, the economic interests of all Quebeckers would be far better served by a lower threshold.