Mr. Speaker, let me begin by stating that foreign investment plays a very important role in the Canadian economy. Foreign investors bring capital, knowledge, capabilities, technology, and other resources which can increase the productivity, efficiency and competitiveness of Canadian firms. Their investments help businesses to expand and create jobs for Canadians.
It is important to note that investment flows both into and out of Canada. In the past several years Canadian firms have invested more abroad than foreign firms have invested in Canada. According to Stats Canada, foreign investments into Canada reached $549 billion in 2009, while Canadian investments abroad reached $593 billion.
In order to ensure that Canadian firms have access to investment opportunities abroad, it is important for Canada to maintain an investment climate which encourages the free flow of investment in both directions. Recognizing the importance of investment flows into the country, Canada has a broad framework in place to promote trade and investment while protecting its interests. This includes the Investment Canada Act, which provides the Minister of Industry with the power to review significant foreign investment proposals.
The review threshold for WTO members is currently $299 million in book value of the assets of the Canadian business. Where a proposed investment is subject to review under the act, the investor cannot implement the investment without the approval of the minister responsible for the act.
The Minister of Industry approves an application only where he is satisfied that the transaction is likely to be of net benefit to Canada. In making his determination, the minister must consider the factors listed in section 20 of the act.
These factors include: the effect of the investment on the level and nature of economic activity in Canada; the degree and significance of participation by Canadians in the Canadian business or new Canadian business; the effect of the investment on productivity, industrial efficiency, technological development, product innovation and product variety in Canada; the effect of the investment on competition within any industry or industries in Canada; the compatibility of the investment with national industrial, economic and cultural policies; and the contribution of the investment to Canada's ability to compete in world markets.
As a part of the review process, the investment review division of Industry Canada consults with federal government departments with policy responsibility for the industrial sector involved, with the Competition Bureau, and with all provinces in which the Canadian business has substantial activities or assets.
In October 2006, the Minister of Industry at the time approved Vale's application for review of its acquisition of Inco Limited because he was satisfied that the investment was likely to be of net benefit to Canada.
The original question put forward by the member asks whether the government will stand up and tell Vale to get back to the table, negotiate in good faith, and demonstrate that Vale's investment truly represents a net benefit to Canada.
The government is surely disappointed at the lack of progress in resolving this strike at Vale; however, as has been mentioned several times in this House and as the hon. member mentioned himself, the strike is a labour dispute between Vale and its union. Labour relations are governed by a well-established legislative framework which Vale and the union must respect.
The provinces of Ontario and Newfoundland and Labrador are responsible for the administration of the legislation which governs labour relations in their respective provinces.
I want to thank the Speaker for the opportunity to address my colleagues in this House. We encourage both sides to sit down together and negotiate a settlement.