Mr. Speaker, I am pleased to rise in the House to respond to the concerns expressed by the hon. member for Windsor West about the acquisition of certain Nortel assets by Ericsson, a Swedish-based telecommunications company.
In the economic action plan, Advantage Canada, and in budget 2007, the federal government committed to undertake a review of Canada's competition policies and its framework for foreign investment policy. To deliver on these commitments, in July 2007 the government created an expert panel chaired by Mr. Lynton Ronald Wilson.
The panel conducted extensive consultations. In June 2008 it released its final report and recommendations aimed at raising Canada's overall economic performance through greater competition to provide Canadians with a higher standard of living.
One of the panel's key recommendations was that we narrow the scope for intervention on economic grounds under the Investment Canada Act. The panel also found that it would be in Canada's best interest in a post-9/11 world to incorporate a national security test into the act.
We moved very quickly to address these and other key recommendations in the report.
Last winter, the Budget Implementation Act, 2009 brought about reforms to the Investment Canada Act, including a national security review mechanism. Before this legislation, Canada was the only major developed country that did not have the authority to review foreign investments on the basis of national security concerns. Now we do.
It is important to understand the process undertaken to conduct a national security review. I would like to take a minute to explain this process.
Under the new national security provisions of the Investment Canada Act, a foreign investment, regardless of its dollar amount, may be subject to review. An investment is reviewable if, after consultation with the Minister of Public Safety, the Minister of Industry considers that the investment could be injurious to national security. He refers the investment to cabinet and it makes an order to review the investment. If cabinet orders a review, the Minister of Industry is responsible for leading it, in consultation with the Minister of Public Safety.
At the end of the review period, if there are grounds for further action, the minister would submit a report with recommendations to cabinet. Cabinet has the authority to take any measures in respect of the investment that it considers advisable to protect national security.
With respect to the acquisition of Nortel's CDMA and LTE assets by Ericsson, the government did examine the national security implications of this transaction. The Minister of Industry consulted with the Minister of Public Safety and the Minister of Foreign Affairs. Based on all of the information presented to the Minister of Industry, there are no grounds to believe that this transaction could be injurious to Canada's national security.
In closing, foreign investment is an important driver of economic success. It stimulates job creation, technological development and economic growth. It is therefore critical that we send the strongest possible signal to investors around the world that Canada is a safe and stable place to do business.