House of Commons Hansard #52 of the 38th Parliament, 1st Session. (The original version is on Parliament's site.) The word of the day was industries.

Topics

Employment Insurance ActAdjournment Proceedings

7:35 p.m.

The Acting Speaker (Mr. Marcel Proulx)

The hon. Parliamentary Secretary to the Minister of Industry.

Employment Insurance ActAdjournment Proceedings

7:35 p.m.

Chatham-Kent—Essex Ontario

Liberal

Jerry Pickard LiberalParliamentary Secretary to the Minister of Industry

Mr. Speaker, before I begin I would ask my colleague to table the documents which he suggests he has in his hand.

The Government of Canada recognizes foreign investment plays a very important role in the Canadian economy. Foreign investors bring knowledge, capability, technology and can increase the productivity, efficiency and competitiveness of Canadian firms. These investments frequently help Canadian based companies to expand and create new jobs in Canada. Canadians have benefited greatly from opening the country's borders to trade and investment.

Since we recognize the importance of investment flows into Canada, Canada has a broad framework in place to promote trade and investment while at the same time protecting Canadian interests. The Investment Canada Act is a key part of the framework and it has been modernized to reflect our changing international commitments.

The Investment Canada Act provides a mechanism to review significant acquisitions of Canadian enterprises by non-Canadian companies and to determine if they will show a net benefit to Canada.

The factors considered as part of a net benefit test are listed in the Investment Canada Act. They include such considerations as the effect of investment on level of production, employment, competition in Canada and compatibility of investment with our economic and cultural policies.

The Minister of Industry is responsible for the Investment Canada Act. In this capacity he can negotiate enforceable commitments with investors during the review process to shape an investment and a deal in such a manner that it would provide a net benefit to Canada. Industry Canada's officials work closely with potential investors to negotiate these commitments. They also consult with other federal government departments and provinces to maintain the views and concerns that are relevant to the acquisitions.

I can assure the member that any investment reviews conducted under the Investment Canada Act are done with so much vigour that we ensure Canada's interests are protected.

The member should also be aware that any Canadian operations of foreign enterprises are required to conform to all Canadian rules and regulations. These include, but are not limited to, legislation related to labour relations, environmental protection and corporate reporting and accountability.

In conclusion, Canada wants and needs foreign investment. However, I can assure this House that acquisitions by foreign investors are only approved where they demonstrate a net benefit to Canada.

Employment Insurance ActAdjournment Proceedings

7:40 p.m.

Conservative

Rob Anders Conservative Calgary West, AB

Mr. Speaker, it is not as though we are talking about private foreign investment. This is another government. That government, by the way, is right now the fourth largest recipient of foreign aid. Two years ago it was the largest recipient of Canadian foreign aid.

Noranda, responsible for 15,000 employees, will not receive any guarantees of fair treatment with regard to the Chinese government. The Chinese government, with regard to mining, has the worst safety in the world. Noranda controls strategically vital deposits of zinc, nickel, copper and other minerals. Nickel, particularly, is involved in the hardening of the armour of the side of warships, intercontinental ballistic missiles and space technology.

Canada's trade deficit with China has been growing to the point where now it is $14 billion a year difference. In other words, we import $18.5 billion from China and China buys $4.7 billion from us. It does not sound like a fair relationship.

It is the moral aspects of these things. The idea that Chinese dissidents--

Employment Insurance ActAdjournment Proceedings

7:40 p.m.

The Acting Speaker (Mr. Marcel Proulx)

The hon. Parliamentary Secretary to the Minister of Industry.

Employment Insurance ActAdjournment Proceedings

7:40 p.m.

Liberal

Jerry Pickard Liberal Chatham-Kent—Essex, ON

Mr. Speaker, I tried to make it very clear a minute ago, and I will reassure the House that any acquisitions by foreign investors have to be approved by the minister and will only be approved by the minister when it shows a net benefit to Canada.

In a situation where a foreign investor fails to live up to the commitments under the Investment Canada Act, the minister has the power to demand compliance and make sure compliance is carried out.

The minister and the legislation protect this country. I am certain that the minister would do nothing to hurt Canadian investment.

Employment Insurance ActAdjournment Proceedings

7:40 p.m.

The Acting Speaker (Mr. Marcel Proulx)

Is there unanimous consent to table the documents referred to?

Employment Insurance ActAdjournment Proceedings

7:40 p.m.

Some hon. members

Agreed.

Employment Insurance ActAdjournment Proceedings

7:45 p.m.

The Acting Speaker (Mr. Marcel Proulx)

The motion to adjourn the House is now deemed to have been adopted. Accordingly, this House stands adjourned until tomorrow at 2 p.m., pursuant to Standing Order 24(1).

(The House adjourned at 7:45 p.m.)