Mr. Chair, perhaps I can offer a few considerations with respect to the question of the member.
One, I would note the increasing number of pre-revenue and other companies that, on the basis of their financial books, are not necessarily earning profits yet are still very much active in the marketplace. I won't name names of companies in this space. Obviously, the financials are one consideration, but a lack or not of profit is not necessarily an indication of relevancy to the market.
More specifically to the member's question with respect to what we take into account when it comes to a net benefit review, I would note the broadness of the factors that are laid out within the act in section 20. They include the following:
(a) the effect of the investment on the level and nature of economic activity in Canada, including, without limiting the generality of the foregoing, the effect on employment, on resource processing, on the utilization of parts, components and services produced in Canada and on exports from Canada;
(b) the degree and significance of participation by Canadians in the Canadian business or new Canadian business and in any industry or industries in Canada of which the Canadian business or new Canadian business forms or would form a part;
(c) the effect of the investment on productivity, industrial efficiency, technological development, product innovation and product variety in Canada;
(d) the effect of the investment on competition within any industry or industries in Canada;
(e) the compatibility of the investment with national industrial, economic and cultural policies, taking into consideration industrial, economic and cultural policy objectives enunciated by the government or legislature of any province likely to be significantly affected by the investment; and
(f) the contribution of the investment to Canada’s ability to compete in world markets.
It is also important to note that we then have specific guidelines with respect to state-owned enterprises:
It is the policy of the Government of Canada to ensure that the governance and commercial orientation of [state-owned enterprises] are considered in determining whether reviewable acquisitions of control in Canada by the [state-owned enterprise] are of net benefit to Canada. In doing so, investors will be expected to address in their plans and undertakings, the inherent characteristics of [state-owned enterprises], specifically that they are susceptible to state influence. Investors will also need to demonstrate their strong commitment to transparent and commercial operations.
Thank you, Mr. Chair.
