Debates of Oct. 2nd, 2012

Opposition Motion—Nexen

[Pierre-Luc Dusseault, NDP, Sherbrooke, QC]

Mr. Speaker, I am pleased to ask my colleague from Longueuil—Pierre-Boucher a question. His speeches are always so eloquent and interesting, which I quite like.

It seems to me that the process is not very clear. In his speech, my colleague talked about polls. Would my colleague agree that the Conservatives like to make decisions based on how much resistance they will get from Canadians and that clear processes are not usually established until a situation arises?

It seems that decisions are made based on the degree of resistance from Canadians and that the Conservatives do not really want to serve the interests of all Canadians. Basically, their main goal is to win votes.

Does my colleague believe, like I do, that we need to create a clear and precise process that can be used in future transactions?

[Pierre Nantel, NDP, Longueuil—Pierre-Boucher, QC]

Mr. Speaker, I want to thank the hon. member for the question.

Indeed, we need to establish a clear process based on the fact that we are here to ensure the best interests of Canadians. The polls indicate that everyone is concerned about this. Nevertheless, the Conservatives continue to bulldoze their way through this.

[Jasbir Sandhu, NDP, Surrey North, BC]

Mr. Speaker, businesses require a stable investment climate. The Conservatives have had six years to provide that stable environment for business to invest. They have chosen to take a path that is secretive and unaccountable. The House passed a motion a couple of years ago that required the Conservatives to look at having a transparent and accountable net benefit for Canada, and they have not provided that.

Considering the current environment that the Conservatives have created, it leads to businesses not wanting to invest because the process is not clear and it is not transparent. Would the member agree with that statement?

[Pierre Nantel, NDP, Longueuil—Pierre-Boucher, QC]

Mr. Speaker, I want to thank the hon. member for Surrey North for his question.

In the current economic context, a lot of money and capital is dormant, and many companies are wondering whether to invest or not.

By all accounts, the government is ignoring everyone's interests and questions. This type of attitude is certainly not the solution. The polls reflect that. Everyone knows it and deplores it, of course.

We must never stop taking exception to the lack of transparency of the members opposite. We must not become numb to it. We must speak out against it. We must talk about it. We are here to ensure a transparent process.

[Deepak Obhrai, Conservative, Parliamentary Secretary to the Minister of Foreign Affairs]

Mr. Speaker, I am thankful for the opportunity to speak to the motion before the House. In my brief remarks today, I would like to give members an overview of our economy and what our government is doing to keep our country strong and competitive in what is a volatile and uncertain global environment.

I will be splitting my time, Mr. Speaker, with the member for Souris—Moose Mountain.

Canada's current economic and fiscal health record is the envy of many other nations today. Thanks to the prudent fiscal and economic decisions made by our government before the recession hit in 2008-09, Canada's economic and fiscal health today is stronger than most other developed nations.

When faced with an unprecedented global crisis, our government responded with an economic action plan, which stimulated the economy, protected Canadian jobs during the recession and invested in the long-term growth. It is also been both outstanding and widely recognized.

For example, the Canadian economy has achieved one of the best performances on jobs and growth among the G7 in recent years. We have recovered and exceeded all the output and all the jobs lost during the recession. Since July 2009, almost 770,000 net new jobs have been created. Virtually all jobs created since then have been full-time positions. Real GDP is now also well above the pre-recession levels.

In addition, Canada has the distinction of the world's soundest banking system for the fifth year in a row, as affirmed three weeks ago by the World Economic Forum. Forbes magazine has ranked Canada as number one in its annual review of the best countries for business. Three credit rating agencies, Moody's, Fitch and Standard & Poor's, have reaffirmed the top rating for Canada and it is expected that we will maintain their AAA rating in the year ahead.

Canada is still growing, but we are not immune to the downside risks originating outside our country or, in fact, of the economic challenges faced by some of our largest trading partners.

Our continued response to the global economic uncertainty has been our economic action plan. To ensure that Canada's finances remain sustainable over the long term, our government has introduced a host of strong, economic measures to foster more growth, more jobs and continued long-term prosperity.

These actions to improve conditions for business investment include: expanding trade and opening new markets for Canadian businesses; keeping taxes low for job-creating businesses; strengthening business competitiveness; and further strengthening Canada's financial sector.

Our government is also determined to return to balanced budgets in the medium term. Our government is taking a balanced approach based on prudent economic growth presumptions between supporting jobs growth and implementing our plan to return to balanced budgets over the medium term. It is a goal that we are all well on our way to achieving and at a pace other developed countries cannot match.

In two years we have already cut the deficit in half. We did it by ending our targeted and temporary stimulus measures and by controlling the growth of new spending.

Canada expects to achieve its G20 commitments to halve the deficit by 2013.

We also plan to stabilize or reduce total government debt-to-GDP ratios by 2016, as agreed by the G20 leaders at the summit in Toronto in June 2010.

Finally, I will say a few words about Canada's tax advantage.

To prosper in a competitive global economy, entrepreneurs and businesses also need a competitive and efficient tax system. That is why early on our government introduced the tax relief required to create jobs and growth throughout the economy. In 2007, prior to the global crisis, we passed a bold tax deduction plan that would help brand Canada as a low tax destination for business investment. The final stage of our step-by-step reduction in the fiscal business tax rate came into force at the beginning of this year. It is a culmination of a process that has seen the business tax rate fall from 22.12% in 2007, when we set our goal, to just 15% today.

I do not have to tell anyone in this room what this investment-friendly tax environment means to the future of Canada's economy and jobs. It is a broad-based, fiscally durable and structurally sound—

[Charlie Angus, NDP, Timmins—James Bay, ON]

Mr. Speaker, I rise on a point of order. Perhaps I walked in on the wrong day. I thought the debate today was the sale of Nexen to the state-owned Chinese enterprise without any public consultation. We have not heard a word about it. I would ask him to stay on topic and not talk about stuff that has absolutely nothing to do with the debate at hand.

[The Acting Speaker, Conservative, Barry Devolin]

The member for Timmins—James Bay is correct in terms of the topic of today, but as he knows, members are given significant leeway in terms of the case they build relevant to that. I am quite confident the parliamentary secretary will address his concerns before his speech is completed.

The hon. parliamentary secretary.

[Deepak Obhrai, Conservative, Calgary East, AB]

Mr. Speaker, I am talking about Canada's economic action plan and he is talking about business investment in this country. That is exactly what I am talking about. If he does not like my using the word Nexen or something else, that is his problem. However, what I am talking about is the business investment climate in this country, and investment in this country is exactly what this motion is about. I am on topic even if he does not want to listen to how well Canada's economic action plan has been doing and how this government has been acting. That is what bothering him. Too bad for him.

Let me also tell him in no uncertain terms that the Minister of Industry, whom we fondly call Captain Canada, is going to do what is best for Canada whether the New Democrats like it or not. The NDP's policy has always been for higher taxes and now a carbon tax. They would make sure there were no investment in this country.

It is amazing that they moved a motion that talks about investment in this country but when we talk about how great our banking system and tax regime are, which is why people like to invest in this country, they have a problem. They have a problem because it is contrary to what they are proposing in their economic plan, which is all about taxes, a carbon tax and no investment. I would remind the member that if he listened very carefully to what I have just said, he would actually support this motion. He would say yes to investment.

I will say once again that the Minister of Industry will make a decision that is in the best interest of this country.

[Linda Duncan, NDP, Edmonton Strathcona, AB]

Mr. Speaker, there are many on that side who represent Alberta. I also represent Alberta. As members of the House are well aware, there is a growing concern about the fact that we are moving forward with yet another instance of foreign control of one of the major enterprises in Alberta that potentially produce revenue for our country.

I am wondering if the member could speak to the fact that he and all of his colleagues on the Conservative side of the House voted unanimously for a motion put forward by the former leader of my party, Jack Layton, to immediately proceed with an open public review of foreign ownership rules. One would presume the government would have done that before it started rubber stamping more foreign ownership. There is now even concern being expressed in the oil patch in Alberta about the number of foreign entities lining up to buy more pieces of the oil sands, by buying into the companies exploiting those resources.

Perhaps the member could give us the answer. Does he know when the government is going to proceed with this open public review? How many more of these foreign ownership applications are going to be approved before we have the public review?

[Deepak Obhrai, Conservative, Calgary East, AB]

Mr. Speaker, the member mentioned two facts. She is from Alberta; so am I. She talked about the oil patch. If she indeed is representing real Albertans, the member should talk to her leader as to why he talks about the oil sands as a disease in this country and why New Democrats are opposed to the development of the oil sands.

Of course, after he got slapped in the face by the rest of the country for this, the leader of the official opposition backtracked and now says that he supports the oil patch. The member should educate her leader on this. If she is an Albertan, she should oppose a carbon tax, because it would destroy investment in this country. If she is really interested in the development of the oil patch, then she should be standing up for the oil patch, not for her leader and the carbon tax.

As for the question she asked, I would repeat that the Minister of Industry will make the best decision for Canada, after going through the investment review according to the act. We have full confidence in that.

[Raymond Côté, NDP, Beauport—Limoilou, QC]

Mr. Speaker, after listening to the hon. member for Calgary East blindly singing his minister's praises, I would just like to mention to him that, after the Stadacona mill in my riding was bought out by an American billionaire in 2003, the number of employees at the mill dropped from 1,600 to barely 300.

Is this the type of net benefit he is talking about when he lists all his government's so-called achievements?

I am rather shocked to see just how blind my colleague is being. At the same time, he is basically encouraging us—and this is probably the most offensive part—to blindly trust in a non-transparent process and in a minister who cannot even decide where to put his sleeping bag as he wanders from one cottage to another.

When will the hon. member for Calgary East listen to our suggestions and truly support a transparent process instead of one that goes on behind closed doors?

[Deepak Obhrai, Conservative, Calgary East, AB]

Mr. Speaker, one of the reasons I do not listen to the member is that he just talks about the Minister of Industry, and not in nice terms. It shows how biased he is, and if there is that much bias, why we would take any advice from that party? Not only that, but this is the party that wants a carbon tax and has economic policies that are very dangerous for this country.

We have a very proud record. Apparently the member did not listen to what I was saying. This country is the envy of the world, one of the best in the G8. Our banking system is very sound. Our tax rate is very low. Those are absolutely the conditions for investment this government has put in place.

In 2003 we were not in power. Maybe he should ask the Liberals about their investment record. Under our government, the investment climate is there, and therefore we are seeing investment coming in. However, we will make a decision that is in the best interests of this country.

[Ed Komarnicki, Conservative, Souris—Moose Mountain, SK]

Mr. Speaker, I am pleased to have the opportunity to speak to the important issue of how foreign investment benefits Canadians and the Canadian economy.

With the extensive media coverage in newspapers and television of recent proposed foreign investment transactions, this is certainly top of mind to many Canadians. Of course, many discussions have been held across the country with respect to the particular acquisition referred to in the motion. This interest is positive because of the importance of foreign investment to Canada. It is a good thing that more Canadians are becoming aware of it and are thinking and talking about it.

As a result of our government's careful decisions prior to the worldwide economic downturn in 2008, Canada is in better shape economically than many of its peers. Despite current global economic uncertainty, we have achieved one of the best performances among the G7 countries, with almost 770,000 net new jobs created since 2009. This is the strongest job growth among the G7 countries during a global recovery.

One of the reasons for Canada's economic resiliency and success over the most recent difficult few years is our government's success in attracting quality foreign investment. This government believes that Canadian companies can compete with the world's best. For that reason our government continues to welcome foreign investment that benefits Canada. The fact is that foreign investment, both from foreign companies into Canada and by Canadian companies in foreign jurisdictions, is absolutely critical to the health and wellbeing of the Canadian economy. Foreign investments can introduce new technologies and business practices that promote economic growth, increased employment and more innovation here at home, while at the same time providing Canadian business with better access to new markets and a place in the global supply chain.

Our government recognizes that foreign investment can bring some of the most productive, specialized and successful firms in the world to Canada. This connection with other countries can result in some of the highest paying jobs for Canadians. Statistics Canada research has shown that foreign-owned companies operating in Canada have higher labour productivity, pay higher wages and contributed nearly 15% of total business expenditures on research and development in 2010.

The government also recognizes that foreign investment provides opportunities for Canada as a player in a globalized economy, connecting Canadian firms to the rest of the world. This allows our firms to grow and compete so they can become national champions and global industry leaders.

In short, foreign investment both into Canada and by Canadian firms abroad is a win-win proposition for Canadians and the economy.

How well is Canada performing against other countries? We need to put all of this in context when we look at the particular legislation that has been brought into question.

Since the mid-1990s, Canadians have held a larger interest in foreign operations than non-Canadians in companies operating in Canada. As of 2011, Canada has attracted $607.5 billion of foreign investment into Canada and Canadian businesses have invested $684.5 billion abroad. Therefore, Canadian businesses are doing well outside of Canada.

Over the past few years Canada has attracted a significant amount of foreign investment relative to its share of global GDP and relative to other developed countries. For example, since 1980 Canada has received a greater share of the global stock of foreign investment than Australia, a comparably developed country. Indeed, Canada's stock of inward foreign investment as a percentage of our GDP has been increasing since the early 1990s.

Furthermore, Canada's stock of outward foreign investment as a percent of GDP has been increasing since the late 1970s. In terms of outward foreign investment performance, Canada has consistently out-performed other peer countries since 2000, with the exception of the UK.

Foreign investment in Canada comes from many sources. As of 2011, over half of the foreign investment stock in Canada came from the United States. Other key countries include the United Kingdom, the Netherlands, Japan, Brazil and France. Moreover, investment from emerging markets has been increasing substantially in recent years.

With a rigorous investment review regime in Canada, Canada welcomes investments that are of benefit to Canadians. We must always remember that and put that in context.

Key sectors of the Canadian economy have benefited from foreign investment: first, manufacturing; second, mining, oil and gas; and third, the financial services sector. Manufacturing alone received 35% of Canada's direct foreign investment inflows, followed by mining, oil and gas at 16.4% and financial services at 15%.

Canadian businesses have been leaders in investment abroad. In particular, 39% of investments by Canadian businesses in other countries have been within financial services and this share has grown in importance during the last decade. Mining, oil and gas was the second most important sector with a share of about 17% of Canadian outward foreign investment. Manufacturing was the third most important sector with a share of 14%.

It is important to remember that foreign investment works both ways. Canadians benefit both from the ability of our companies to invest and operate abroad as well as from the opportunity for foreign businesses to set up shop in Canada, employing Canadians, making connections with other Canadian firms and giving consumers more choice.

For Canadian businesses to expand and compete successfully throughout the world, we must continue to be open to foreign investment to demonstrate to our trading partners that we understand that protectionism is not the path to economic growth. Our government is committed to sending the message to investors around the world that Canada is a safe and stable place in which to invest and to do business.

This government will continue to bring the benefits of foreign investments to Canada by providing the right economic climate so that firms in Canada will continue to prosper and create jobs for Canadians. We will also continue our work to secure access to foreign markets in order to ensure the continued success of our own Canadian businesses abroad.

Let me be clear. This government knows that not all foreign investment will be of benefit to Canada. Canada is open for business, but it is not for sale. That is why we have a rigorous review process under the Investment Canada Act. The net benefit factors are clearly set out in the act and are available publicly so that investors and Canadians know what is of importance to Canada in reviewing a proposed investment. Obviously, these are broad considerations and that is a factor in the decision making.

Briefly, the factors relate to the level and nature of economic activity in Canada; the degree and significance of participation by Canadians; productivity, efficiency, technological development, product innovation and variety; how it affects competition in Canada; Canada's ability to compete in world markets; and compatibility with national industrial, economic and cultural policies, including policies of provinces that are likely affected. In fact, a province that is affected by a decision has significant input. These are the factors and principles that are taken into consideration. If the minister is not satisfied that a reviewable investment is likely to be of net benefit to Canada, the Investment Canada Act allows him to block the transaction.

This government is committed to protecting the security of all Canadians. The Investment Canada Act allows the government to review an investment when there is reason to believe that it could threaten or impair Canada's national security.

Our record in safeguarding Canada's national security is clear. The Investment Canada Act has been around since 1985, but until this government took action, it did not contain a mechanism for safeguarding Canada's national security. Recognizing the global security context, in 2009 we put in place this particular section to ensure that Canada's national security interests will continue to be safeguarded.

Our approach was in line with what other developed countries had done in a post-9/11 world. It brought Canada up to the best practices of most of our trading partners for reviewing investments on national security grounds and it did so while being consistent with our obligations and international trading agreements.

Let me be clear. Protecting Canada's national security will always remain a top priority for this government. Our government has a reputation for welcoming foreign investment and will continue to do so when that investment provides a net benefit and does not impair the national security of Canadians. Those principles will guide the decision-making process.

This question of foreign investment will remain an important one for the economic well-being of Canadians. I am pleased with the work our government has done to date, and I am confident we will continue to attract more companies, better high-paying jobs and stronger economic growth to support hard-working Canadians.

[Charlie Angus, NDP, Timmins—James Bay, ON]

Mr. Speaker, my hon. colleague and I do not often agree on many things, but I think this is the first time today I have heard a member from the government actually speak to the issue at hand. It is a serious issue and we all have a stake as parliamentarians in addressing it.

My hon. colleague talked about state security issues. On September 10, 2012, the Calgary firm Telvent was hacked in a major corporate espionage issue. It is a major player in the oil patch. Apparently, it has been traced back to hackers in China. We have not confirmed that yet.

However, if we look at the Canadian Security Intelligence Service report for 2010-11, it raises specific issues with respect to corporate espionage and the national security threat that Canada faces regarding takeovers by operations owned by foreign governments. It talks about how this would put the Canadian economy at risk because these governments could exploit that control in an effort to facilitate illegal transfers of technology or to engage in other espionage and foreign interference activities.

CSIS expects that national security concerns related to foreign investment in Canada will continue to materialize, owing to the increasingly prominent role that [state-owned enterprises] are playing in the economic strategies of some foreign governments.

There is no other issue as important as the control of oil. Will the government take this seriously in its review of the Nexen takeover?

[Ed Komarnicki, Conservative, Souris—Moose Mountain, SK]

Mr. Speaker, the issues the member raises are always factors to be taken into consideration no matter what the investment or by whom it is made. Obviously, because national security is one of the factors, all of that will be taken into consideration when that is being reviewed. That is not just with respect to one transaction but to all transactions.

In this particular case, the oil company has an interest in the oil sands, but it is a limited and defined interest. The minister has a number of factors to take into consideration. Those factors include at least six additional ones that will be looked at. After having all of that reviewed and imposing or not imposing any conditions, the sale would or would not get approved. That is the process that is set out in the act. It is a good, fair process. In broad categories it identifies the kinds of considerations that must be taken into account.

Canadians can trust that the government will look at each and every one of those considerations in an objective way and deal with them appropriately. That is why we have the act and those conditions, and that is why those considerations will be looked at and administered very carefully and rigorously before a decision is rendered.

[Ted Hsu, Liberal, Kingston and the Islands, ON]

Mr. Speaker, my question to my hon. colleague is simple. From the point of view of managing business risk and reducing uncertainty, would it not have been better for both parties, the buyer and the seller, to have clear criteria on the table so that the people who are planning businesses have a better idea of what the government's thinking will be in approving or denying approval for this takeover?

[Ed Komarnicki, Conservative, Souris—Moose Mountain, SK]

Mr. Speaker, the act does set out quite specifically what the six criteria are that would be used to judge whether a particular transaction ought to go through or not. They allow not only the investor but the seller as well to make representations along those lines and they also take into account the interests of the province in question. Although those rules are broad, they are not difficult to understand. Anyone reading the sections would know the key considerations that go into the decision-making process. Obviously, anyone making the application, investing or selling, would be well positioned to make the appropriate arguments to convince the minister to go one way or another. Therefore, the criteria are necessarily broad because those issues cannot be identified specifically.

Can more be done? Of course there always can be. However, the application is made under the existing legislation and needs to be dealt with under that legislation. Therefore, we find ourselves in the position where we must trust that the decision that will be made will be of net benefit to Canada or most likely will be of net benefit to Canada and Canadians, and will ensure that our economy continues to proceed forward as it has, where Canada stands out among its peers in job-creation numbers, expansion and the investments that people and businesses are making in Canada.

[Matthew Dubé, NDP, Chambly—Borduas, QC]

Mr. Speaker, I am very pleased to speak to this opposition motion, particularly since it directly concerns the western provinces. People where I come from perhaps do not realize to what extent this could have an impact on them in the future. It is important to know what kind of precedent we want to set and how we want to improve the existing legislation. I also want to congratulate my colleague from Burnaby—New Westminster for having introduced this motion. Before I forget, I am pleased to share my speaking time with the member for Rivière-des-Mille-Îles, one of my wonderful colleagues whom I am looking forward to hearing speak on this issue.

Let us come back to the issue before us today. My colleague from Timmins—James Bay repeatedly tried to get our colleagues opposite back on track by asking them why they could not stick to the subject. The issue before us goes beyond economic considerations. These are fundamental considerations to do with fairness and being masters in our own house. The protection of our natural resources is at stake.

As several of my colleagues have said since this morning, the issue is not so much whether or not one is for or against investments, but whether these investments are responsible and beneficial to Canadians and our industries and whether they allow us to make the most of our natural resources both at home and abroad.

Before continuing, I would like to speak about another extremely important issue. Our motion includes two important points. The first point concerns public hearings, and the second point, clarifying the notion of “net benefit”.

I am going to start by talking about public hearings. A definition was proposed by the former minister of industry and the current president of the Treasury Board. A colleague and I saw an article published this morning where the minister was quoted. He stated that supporting our motion would mean breaking the law and that it would be illegal to hold a public consultation. He is wrong.

If you do not read the legislation carefully, you could be forgiven for thinking that he is right. The Investment Canada Act places a great deal of importance on the confidentiality of information, but in paragraph 36(4)(c), it states that information that is already public is exempt from the confidentiality clause. Public consultations can therefore be held. After all, when it comes to the sale of Nexen, a number of facts are already in the public realm. For example, a submission that the company made to the Securities and Exchange Commission revealed that the Communist Party of China has shares in this company. There are also concerns regarding national security, which were recently raised in a public report to Parliament. These facts have already been made public. So there is no reason to consider public hearings illegal.

My colleague from Burnaby—New Westminster spoke this morning about the motion that our party and our late leader, Mr. Layton, had moved regarding a review of the Investment Canada Act. That particular case had to do with BHP Billiton. I was not here at the time, but all the members of the House, across party lines, unanimously supported the motion.

I will read an interesting part of that motion:

...those most directly affected by any takeover are considered, and any decision on whether a takeover delivers a “net benefit” to Canada is transparent by: (a) making public hearings a mandatory part of foreign investment review; (b) ensuring those hearings are open to all directly affected and expert witnesses they choose to call on their behalf;

I am summarizing here because the motion is much too long. However, we can see that it talks about public hearings. This motion was unanimously adopted by the House. This is interesting, because the former industry minister said that this would be illegal. So I have a hard time understanding why he supported such a motion in 2010 but will not support the current motion, seemingly on behalf of his own government. That does not make sense. It is not too much to ask for public hearings.

At the risk of repeating what has been said by many of my colleagues, this is not a matter of being for or against the purchase. It is a matter of creating a thorough process to avoid setting a precedent that could raise difficult issues or lead to problems in the future. We must also hear what Canadians have to say on this subject.

That is not too much to ask. I think that is the very essence of democracy. I do not understand why the Conservative members are so afraid of holding public hearings on this. It could be a positive for them. In the future, they could refer to these public hearings once a decision has been made, since the process will have been thorough.

That said, I would also like to talk about the second aspect of our motion, which deals with the definition of “net benefit”. I am not a lawyer, but any lawyer would tell you that it is important to clearly define the terms used in a bill. The government accuses us of being against entrepreneurs, business people and investment. But investors and business people are calling for a clear definition.

I have spoken with business people in my riding, and they want clear regulations. They want to know whether or not they are protected. By providing a clear definition of what constitutes a net benefit, we would improve the business community's situation and create a healthier environment for investing in Canada, for both the public and shareholders.

Earlier this morning, a Conservative member said that shareholders had voted in favour of the CNOOC takeover of Nexen. There are a few important points to raise in this regard. First, a public hearing does not prevent shareholders from expressing their opinions. After all, they are investors and individuals. There is nothing about this process that would prevent them from sharing their opinions and explaining to the public why they voted in favour of the takeover.

As the hon. member for Burnaby—New Westminster mentioned, he was the only member of Parliament at the meeting to better understand this issue. When it comes to natural resources, it is important to be, as we say in Quebec, “maîtres chez nous” or masters of our own domain. I think that all Canadians feel the same way about this. Our natural resources are an asset. It is important that everyone be involved, not just shareholders. Shareholders benefit from resources that are dear to us, that are the heart of our country's development. This is a very important issue.

In closing, I would like to say that it was very important to me to express my opinion on this issue. In my riding, in eastern Canada and in Quebec, not everyone is aware of this issue because it primarily affects the western provinces.

It is important to realize that precedents can be dangerous, problematic and worrisome. This takeover could cause harm to other sectors later. Natural resources are very important in Quebec. How do we know that this will not happen in the future under different circumstances? We must be vigilant and rigorous. That is why I am proud of our motion.

[Pierre-Luc Dusseault, NDP, Sherbrooke, QC]

Mr. Speaker, I am pleased to have the opportunity to ask the hon. member for Chambly—Borduas a question.

He mentioned a few concerns that Quebec shares regarding foreign takeovers that will affect all Canadians, not only those who live or work in the regions where the takeovers occur.

I wonder if my colleague would agree that the process needs to be more transparent.

Bill C-38 is a 400-page long document that implemented certain provisions of the budget tabled in 2012. It amended the Investment Canada Act and gave the minister greater freedoms regarding the disclosure of reasons for his decision, but only after the decision has been made.

Does my colleague think that the government should instead open up the process the minister uses to make his decision and hold public hearings in order to be more transparent when it comes to sharing his reasons for arriving at a given decision?

The Conservatives go on and on about how the minister will make his decision in the best interest of Canadians. That is what they keep telling us.

Why is this decision not being made in consultation with all of the stakeholders involved and with Canadians in general?

[Matthew Dubé, NDP, Chambly—Borduas, QC]

Mr. Speaker, I want to thank the hon. member for Sherbrooke for the question.

Indeed this is a matter of transparency, as I alluded to in my speech.

As long as there are issues that divide the House, then the opposition motion makes perfect sense.

Today we are not talking about the decision in and of itself, because we know there is a process to be followed. We are making two simple requests that will benefit the public and investors.

As my colleague indicated, we are talking about transparency, public hearings and clarifying certain rules and certain definitions.

Once again, when we talk to business people and investors, they tell us that having clear rules is good for them. It is also good for everyone to have clear rules. That is what we are advocating today.

Canadians across the country think that is important. The other MPs from Quebec, Alberta and the other provinces and I can honestly say that everyone thinks it is important to have transparency. It cannot be bad.

As I was saying, it can even be good for the government because at least it would be sure, when making decisions, that it got everything it could out of the consultations and that it applied the rigour that is needed in handling matters as complex and sensitive as this one.

[Jack Harris, NDP, St. John's East, NL]

Mr. Speaker, I want to refer to some of the items that were in the 2010 motion that was unanimously agreed to. Members from the Conservative Party supported the amendments to the act that would clarify that a goal of the act would be to encourage foreign investment that brings in new capital, creates new jobs, transfers new technology to the country, increases Canadian based research and development, contributes to sustainable economic development and improves the lives of Canadian workers and their communities, not foreign investment motivated simply by a desire to gain control of a strategic Canadian resource.

Members opposite supported that motion in 2010 but that notion seems to be absent from any of the debates of the members opposite today. I wonder if the member knows why that is and why he thinks the government is not living up to the support that it gave to Jack Layton's motion in 2010.

[Matthew Dubé, NDP, Chambly—Borduas, QC]

Mr. Speaker, I appreciate the question from my colleague, who would like to hear more about the 2010 motion. Quite frankly, I unfortunately do not have the answer.

I have a great deal of difficulty reconciling the logic that prevailed back in 2010, when the motion was unanimously adopted, and today's logic. We hear very little, if anything, about that in our colleagues' speeches.

As I mentioned in my speech, there are also the comments by the former industry minister. This morning, he told journalists that it would be illegal to hold public hearings. According to section 36, there is enough information to which the public has access, that it would not be confidential and we could actually hold public meetings. He obviously thought otherwise at the time because he supported our motion.

The motion was too long, and I did not read it in its entirety. My colleague read a number of excerpts that actually raise other important points, such as the protection of jobs in Canada and the protection of sustainable development. These are all important issues of interest to consumers and business people.

The key word is “rigour”. A rigorous process is needed to properly manage an issue that is so complex and will have such significant consequences with respect to our natural resources.

[Laurin Liu, NDP, Rivière-des-Mille-Îles, QC]

Mr. Speaker, I am pleased to speak today to this opposition motion concerning the takeover of the Canadian company Nexen by the Chinese company CNOOC.

Essentially, the motion sponsored by the NDP's industry and natural resources critic calls for three things. First, it calls on the government to undertake public consultations before making a decision concerning the plan to acquire Nexen. Second, and more broadly, it asks the government to hold consultations concerning the entire issue of foreign ownership in the Canadian energy sector. Third, the motion asks that this exercise be used to clarify the concept of “net benefit” to Canada when foreign takeovers are reviewed under the Investment Canada Act.

Before going any further, I would like to do a brief review for the people listening, because I am sure there are people in my riding, Rivière-des-Mille-Îles, who are listening to me now and do not see how this issue affects their lives. But we have to remember that even though this is happening in Alberta, the issue affects all of Canada and all Canadians. This is the biggest foreign purchase offer by a government-owned company in the history of Canada and the first in what will probably be a series of similar major acquisitions.

In July 2012, the China National Offshore Oil Corporation, CNOOC, put in an offer to purchase Nexen, an oil company based in Calgary, for $15 billion.

It is important to know that CNOOC is 64% owned by the Chinese government and that a number of the company's key executives, including the president and vice-president, are appointed by the Chinese government. If the transaction were to go through, as the Nexen shareholders hope, it would be the biggest takeover in Canada by a foreign state-owned corporation, and as I mentioned, some people are afraid that this is just the beginning.

By getting its hands on Nexen, the Chinese government would control the 12th largest oil company in Canada, a company that has interests in 300,000 acres of oil sands and another 300,000 acres of land that is suitable for shale gas drilling.

We have to realize that this is a growing trend. Canada has already authorized multiple acquisitions of Canadian companies by Chinese companies in the natural resources sector. According to information compiled by the CBC, these transactions add up to $23 billion dollars since 2005. Consider, in particular, the investments by the China Petrochemical Corporation in Syncrude, and various investments by the China National Petroleum Corporation in Canadian oil and gas.

To win over the Canadian regulatory authorities, CNOOC has promised to keep the company’s head office in Calgary, maintain the same number of jobs and keep the existing management team. These fine promises remind me of the commitments made by the Anglo-Australian multinational Rio Tinto when it got hold of Alcan in 2007. The brief experience we had with that transaction showed how detrimental that loss of control was for workers in Quebec. And we learned recently that the corporation was going to suspend its activities at the cathode production centre at the Arvida plant and cut management positions at the Shawinigan aluminum smelter.

We also have to realize that CNOOC's environmental practices raise eyebrows among some observers.

For example, in June 2011, two consecutive spills at CNOOC project sites dumped 204 tonnes of oil and polluted more than 6,200 km² of the ocean surface in China’s Bohai Bay. The company did not report the spill until 30 days later. In addition, the site operator said that CNOOC insisted on using an affiliated company rather than going with a clean-up service that offered faster deployment.

All of this is of particular concern because the Conservative government refuses to require that corporations honour the environmental commitments made in the foreign investment review process. It is even less likely that Canada will require a state corporation that enjoys the support of the Chinese government to honour its commitments.

In addition, the new foreign investment protection agreement signed by the Conservative government and China includes investment protection measures that give special rights to foreign corporations.

CNOOC could wield more power than Nexen vis-à-vis the Canadian government and block environmental restrictions.

As we know, CNOOC and the Chinese government have a dismal human rights record. For example, a project in Burma was controversial because 3,000 oil wells were dug by hand and more than 300 acres of agricultural land were forcibly confiscated.

What is most ironic is that this takeover of a Canadian company by a Chinese state-owned company is taking place under a government that, not so long ago, shied away from the Chinese market because of the Chinese government's poor human rights record.

In 2006, for example, the Prime Minister said:

I think Canadians want us to promote our trade relations worldwide, and we do that, but I do not think Canadians want us to sell out important Canadian values—our belief in democracy, freedom, human rights. They do not want us to sell that out to the almighty dollar.

On July 28, 2012, the editorial writer for Le Devoir wrote:

At the slightest diplomatic chill, the Chinese government will not hesitate to blackmail its trade partners by threatening to close facilities or interfering in the markets to choose its suppliers and customers.... It will thus be up to the Prime Minister himself...to decide. However, based on the statements he made in 2006 and those he is making now, the Prime Minister's priorities have clearly changed: he is now focused on oil patch investments and trade opportunities with Asia. How can we trust that Canadians' long-term interests will be seriously considered in this process?

For many observers, the Chinese government's control over CNOOC and the possible control this company could have over a resource as strategic as Canadian oil represent an unacceptable potential threat to national security.

The Canadian Security Intelligence Service recently warned this Parliament. I would like to quote some of what it said:

When foreign companies with ties to foreign intelligence agencies or hostile governments seek to acquire control over strategic sectors of the Canadian economy, it can represent a threat to Canadian security interests. The foreign entities might well exploit that control in an effort to facilitate illegal transfers of technology or to engage in other espionage and other foreign interference activities.

All of these legitimate concerns bring us back to the process used by the government to examine this transaction. The bid is subject to a foreign investment review process under the Investment Canada Act to determine whether it constitutes a “net benefit” to Canada.

This process has some serious shortcomings. First, it takes place in secret behind closed doors. Canadians will not be consulted. They will not be able to provide information on the effect the transaction will have on employment, the environment or the energy sector in general.

Furthermore, the process will not take into account CNOOC's track record with regard to human rights or the fact that this company has already caused oil spills and environmental disasters. This type of takeover must not be examined quickly and informally.

Given the serious concerns this transaction has raised, the NDP is calling on the government to hold public hearings before making a decision. We also believe that the government should take advantage of this opportunity to broaden the debate and hold consultations on the whole issue of foreign ownership in the Canadian energy sector.

As my colleagues already mentioned, companies, workers and communities need certainty with regard to foreign acquisitions, but the review process for these transactions lacks transparency, accountability and predictability.

In closing, I would like to encourage all of my colleagues, regardless of party affiliation, to support this NDP motion.

[Linda Duncan, NDP, Edmonton Strathcona, AB]

Mr. Speaker, I thank the hon. member for her very good speech and my colleague behind me for an excellent speech before her. As they mentioned, it is not just the New Democratic members of Parliament who are raising this issue. The oil patch based in Calgary is also raising it and it is calling on the government to provide greater clarity on the definition of “net benefits”.

How is the government making this decision? The government voted unanimously to undertake the review that our former leader called for, and it was to do specifically what the member called for.

Does the member agree with what the oil patch lawyers are calling for, which is that this review be held up until it can be more closely scrutinized and that at least the current criteria be properly applied, which does not appear to be the case?

[Laurin Liu, NDP, Rivière-des-Mille-Îles, QC]

Mr. Speaker, I thank my colleague for her question.

It should be remembered, as she mentioned, that in 2010, after the proposed takeover of PotashCorp by BHP Billiton was rejected, the government itself promised to clarify the meaning of net benefit.

There is still no clear definition. I wonder why the Conservative government does not keep its promises.

My colleague also raised another very important point, and that is that investors want clarity, which is something the government is not offering.

I support my colleague's comments.