Industry Committee on Jan. 27th, 2022

[Ed Fast, Conservative, Abbotsford, BC]

How did you do that? How was that the case, when you didn't even exercise the additional 45 days that the act allows for?

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

With respect, you're misleading Canadians when you're saying that. There are not two national security review processes. There's only one national security review process.

[Ed Fast, Conservative, Abbotsford, BC]

It's a multi-stage review process, which you suggested.

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

It's a multistep process, but it starts on day one—the power to compel. The moment we become aware of information about a transaction, we have the power to investigate. That's exactly what we did in this circumstance.

[Ed Fast, Conservative, Abbotsford, BC]

Minister, did you personally consult with Canada's public safety minister on this transaction?

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

There is a very well-established process between me and the public safety minister of Canada.

[Ed Fast, Conservative, Abbotsford, BC]

So did you?

[The Chair, Liberal, Joël Lightbound]

Thank you, Mr. Fast.

[Ed Fast, Conservative, Abbotsford, BC]

That's the question—yes or no?

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

I'm saying there's a very well-established process between our two departments—

[Ed Fast, Conservative, Abbotsford, BC]

That's not an answer—

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

—when it comes to national security.

[Ed Fast, Conservative, Abbotsford, BC]

—and you know that.

[The Chair, Liberal, Joël Lightbound]

Mr. Fast, that's all the time we have for this round. We'll come back to the Conservatives.

We will move to Mr. Dong and Mr. Erskine-Smith for six minutes.

[Han Dong, Liberal, Don Valley North, ON]

Thank you very much, Chair.

It's very good to see you, Minister Champagne.

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

It's good to see you again as well, and all the members of the committee.

[Han Dong, Liberal, Don Valley North, ON]

Welcome to the committee.

You said in your earlier statement that in March 2021 you announced the updated guidelines on the national security review of investments issued under the Investment Canada Act. Can you explain the timing and the rationale behind that decision and how that decision strengthened Canadians' interest in critical minerals?

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

Thank you very much for the question, Mr. Dong, because that's very important.

On the one hand, we want to welcome foreign investment in Canada. On the other hand, we want to protect our national security. What I issued in March last year was to make sure that investors from around the world would be well aware that we would apply enhanced national security when it comes to a number of things—companies in Canada involving personal data, sensitive technology, and critical minerals—to the question from our colleague Mr. Fast.

Obviously, this was very much needed. As I told you, as a former trade minister and foreign affairs minister, I'm very well aware of the geopolitical circumstances we're living through. In terms of consulting with allies, I've been talking to colleagues in Europe and in the United States to make sure we have a system of trusted partners when it comes to the resiliency of our supply chain. I think telling the world that, yes, Canada is open for business but that we would, at the same time, apply enhanced national security when it comes to certain areas, like critical minerals, was a great signal and a much-needed signal to make sure that people knew exactly what we would do if they intended to invest in Canada.

[Han Dong, Liberal, Don Valley North, ON]

In short, the decision to update the guidelines does strengthen Canadians' interest in critical minerals.

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

Well, we want to protect our national security. As you may have seen, not only did I introduce the new guidelines, but in July of last year I also introduced a new framework for research security in Canada.

As you would recall, I did not hesitate to block transactions. You may recall the TMAC mine in Nunavut, where we blocked the foreign acquisition, and more recently, through the Governor in Council, we have ordered that China Mobile divest itself of its assets in Canada.

On the one hand, we are open for business.... That's what I was trying to say to our colleague Mr. Fast. There is only one national security review process. It's a multistep process that starts from day one. It involves all the relevant departments, the national security agencies and the intelligence agencies of Canada, and we make a determination to make sure that, on the one hand, we welcome investment in Canada, but one thing is sure: We will never compromise national security.

[Han Dong, Liberal, Don Valley North, ON]

That's good.

Are all foreign transactions reviewed?

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

We review all foreign transactions for national security. As I said, this was very much the case when it came to Neo Lithium. This was absolutely reviewed. As I said, anyone who suggests otherwise is not grounded in facts.

This was reviewed from the moment we were made aware of the transaction. We not only applied the review, but we applied enhanced scrutiny under the new guidelines.

[Han Dong, Liberal, Don Valley North, ON]

Thank you.

Chair, I'll give the rest of my time to MP Erskine-Smith.

[Nathaniel Erskine-Smith, Liberal, Beaches—East York, ON]

Thanks to my colleague Mr. Dong.

[François-Philippe Champagne, Liberal, Saint-Maurice—Champlain, QC]

It's good to see you.