Good afternoon.
I would like to start by acknowledging that I am joining this meeting from Treaty 6 territory, the traditional gathering land, ceremonial place and centre for trade for many first nations, Métis and Inuit people.
My name is Malcolm Bruce, and I am the CEO of Edmonton Global, the foreign direct investment attraction and trade corporation for the Edmonton metropolitan region. The Edmonton region is the fifth-largest economy in Canada, with $105 billion in GDP, which approximates one-third of Alberta’s GDP. We have a population of 1.5 million people and are one of the youngest and fastest growing regions in the country. The purpose of Edmonton Global is to transform and grow the economy of the Edmonton region, and we’re focused on attracting investment and helping our regional businesses grow internationally.
The conversation this committee has been having is extremely important. As someone who comes from a military background with over 30 years of service, I fully appreciate the need to prioritize Canada’s national security. Foreign direct investment can, under certain circumstances, undermine Canada’s national security. China is an obvious example; however, bilateral trade with China last year grew by 17%, and they continue to have significant financial stakes, for example, in our energy sector.
As we know, they may not have had our best interests at heart. We need to be paying close attention to how our economic ties with this country develop, and develop it will for the foreseeable future. We can’t be seen as the weak link by our security partners, but neither can we be seen as a weak link in our trade and economic endeavours. Business leaders across the country recognize that Canada’s ability to attract foreign investment is essential to maintaining Canadians’ high quality of life.
Foreign investment fuels company expansions, increases demand for domestic goods and services and promotes market choice and competition. These benefit consumers and create good, well-paying jobs for Canadians. Foreign investment also supports the development of emerging industries. A good example is the extraction and development of critical minerals in Canada, a national security issue in its own right.
One story I’d like to share with you today is about an Edmonton-based company that operates a silica quartz mining operation in Golden, B.C. Silica quartz can be refined into silicon metal, an essential mineral for green energy transformation producing everything from computer chips, EV batteries, solar panels and lightweight alloys to over 7,000 consumer products. This particular company spent millions of dollars over the years trying to build a foundry in Canada that would be able to refine this material here, but ultimately, they were unable make it work in Canada. They have since begun construction of that foundry in Tennessee, an investment that will grow to over $1 billion over time, and we’ve lost the value-added opportunity related to this vital natural resource.
From a national security and resiliency perspective, we’ve lost out doubly. All of the silicon metal that is being produced will go directly to U.S. companies, including the Department of Energy focused industries of computer chips, solar panels and EV batteries. As America prepares itself for the future and independence from global supply chain issues, we may still remain very vulnerable. We need to be paying attention to the resiliency of our supply chains and invest in the infrastructure that will make us less vulnerable to geopolitical and economic shifts. Energy and food security are top of mind for many countries, including our closest allies. Our region is at the forefront of a significant global opportunity in hydrogen and the net-zero economy, global food security and the technology that will transform the way we do everything—artificial intelligence.
I recently spent some time travelling to South Korea, Japan and Taiwan to share the opportunities that exist here in our region. There’s a lot of interest in what Canada has to offer, and they want to invest. We need to ensure they can.
From the investment attraction standpoint, what I want to emphasize today is the importance that investor confidence plays in attracting investment. From friendly investments, we cannot risk lengthy delays in closing transactions or have investors concerned about steep penalties in the event of an unclear legal requirement. It is my understanding that the government is still defining the prescribed business activities that will be required for a pre-closing filing. It’s imperative that this legislation provide reasonable, predictable and transparent guidelines for companies exploring investments in Canada.
Agencies like Edmonton Global need clear guidance on institutional roles and on who, within the federal government, we can consult with to support potential investments.
I also recommend that the government commit to a timeline for reviewing the amendments after they have been in force, and continue to consult with organizations like ours to understand how this legislation is helping or hindering our work.
Once again, I'd like to thank the standing committee for the opportunity to speak with you today. We appreciate all the work that's going on to protect Canada's national interests.
Thank you.