Mr. Speaker, Motion No. 5 proposes that the shares of CN be sold only to Canadian individuals and corporations for the first 90 days that the shares are sold on the stock market. It would negatively affect both the value the government would receive for its shares in CN and its ability to sell 100 per cent of its shares.
Given the size of the CN initial public offering it is unlikely that the Canadian equity markets could absorb the issue alone. Therefore, in order to sell 100 per cent of CN for a value which maximizes the return to Canadian taxpayers, foreign investors will need to participate in the share offering.
Changing this clause, as suggested by the Reform Party in Motion No. 5, would be viewed as foreign ownership restriction. Any restriction on the ability of foreigners to participate in the sale of CN would affect value and the shares would have to be sold at a significant discount in order to sell them all exclusively to Canadians.
Given the likely size of the share issue, all Canadians who so desire will have an opportunity to purchase CN shares, resulting in broad Canadian ownership of CN stock. An amendment such as suggested in Motion No. 5 is therefore unnecessary.