Mr. Speaker, I rise to speak to Motions Nos. 1 to 4 in Group No. 1 on Bill C-89.
Motion No. 1 calls for the deletion of the head office clause which stipulates that CN's headquarters must reside permanently in Montreal and calls for the deletion of the 15 per cent ownership restriction.
In today's marketplace the stipulation of the permanent location of a head office is absurd and makes a mockery of a bill of serious intent. This whole question of permanence reminds me of a story of a fellow who applied for a job with a previous employer. When he was offered the job he asked whether it would be temporary or permanent. The response was in that company there were no permanent jobs. This stipulation would not occur in a free market and no private sector companies face these same restrictions. This is purely for political reasons and should be expunged from the bill.
As well, restricting the percentage of shares any one individual, corporation or association may own is not sound. Where is the incentive for new investors to bring in a new management style to revitalize this dinosaur? To which latest investor advice fad is the government listening?
This clause also restricts the best price CN could fetch in the marketplace. As one investor put it, the 15 per cent restriction circumscribes the deal. This restriction dampens investor confidence and freezes out the type of investor who looks for troubled, debt ridden companies that can be restructured and made profitable, generating dividends and capital gains. I support Motion No. 1.
Under Motions Nos. 2 and 3 of Group No. 1, I support the introduction of a sunset clause of a five year time limit on the headquarters and ownership restrictions should Motion No. 1 not carry.
Motion No. 4 calls for parliamentary approval on each offer made by the private sector for CN assets. This is redundant. If Bill C-89 passes Parliament has already given its approval for the sale of CN. I will not support Motion No. 4.
If the government cannot attract a good offer it will have to answer for that later.