Thank you, Mr. Chair.
Good morning, committee members. I would like to emphasize that I am appearing here as an individual.
My name is Christian Paradis, legal counsel and former member of Parliament for the beautiful riding of Mégantic—L'Érable. I also served as a cabinet minister in the Harper government from 2008 until my retirement from politics in 2015.
First, I would like to thank you for inviting me to the committee. Ten years ago already, I myself was Minister of Industry. I'd like to take this opportunity to extend my warmest greetings to the colleagues with whom I had the pleasure and privilege of sitting. I'm also delighted to meet the new members.
The subject currently being addressed by this committee is of the utmost importance. Our country has developed well compared to many other countries, thanks to its values based on a free and democratic society and mainly anchored in the rule of law. The strength of our system and its stability are cited as an example around the world.
Our heritage as an open, trading nation has made us a major economic powerhouse today. Our country is one of the most resource-rich places in the world, making it a popular place for foreign investment. The ever-increasing level of investment also brings its own set of challenges.
As you know, nearly 40 years ago, the federal government passed the Investment Canada Act. But society has come a long way since then, and many things have changed. More specifically, it's fascinating to see geopolitical and socio-economic realities have evolved over the past few years. Significant trends were already apparent in the late 2000s, leading to a growing number of investment reviews on national security grounds. In 2012, guidelines on publishing appeared with regard to the acquisition of Canadian companies by foreign state-owned enterprises. Basic questions of governance and transparency increasingly being raised, the government needed to step in to protect Canadians' interests.
The security upheavals of recent years, indeed months, certainly call for a review of the Investment Canada Act. I have taken note of the comments made by Minister Champagne, who said he wanted to add tools to his toolbox with the main objective of protecting certain sectors, which have yet to be defined.
I took note of the various proposed levers, such as advance notice of investment, interim conditions after consultation with the Minister of Public Safety, the extension or termination of a review, the protection of information in reviews and judicial reviews, the disclosure of confidential information to other foreign states and increased penalties.
As you are all aware, the current context calls for a review of the Investment Canada Act, as the authorities must be able to deal properly with fundamental issues of national security. Given the importance of this issue, I believe the work of this committee is extremely important. Dealing with issues that have international consequences sends out an important message that does not go unnoticed, whether in a positive or negative way. The markets are obviously the first to read these signals, and that's why we will have to move forward carefully and not intervene too heavily, that is, to properly apply and, in particular, frame the levers which will be used.
I agree that the act needs to be reviewed, and the proposed levers seem appropriate at first glance. I believe, however, that a word of caution is in order when it comes to implementation. It will always be important to optimize the transparency of the process, as much as possible, given that we obviously cannot disclose everything, not to mention having a predictable and consistent process. It will therefore be important to carefully calibrate the application of the act by means of the various tools proposed, since legislative rigidity would risk having a chilling effect on the markets, as would directives that change too much over time.
Thank you.