With regard to the government’s decision regarding the acquisition of the firm Macdonald, Detwiller and Associates by Alliant Techsystems Inc. under the Investment Canada Act, and in response to (a), (b), (c) and (d), the confidentiality provisions of the act do not permit the minister to discuss specifics of the case. As referenced in section 36 of the act, all information obtained in the course of the administration of the act is privileged.
In response to (a), in general terms, to approve an application, the minister must be satisfied that the proposed investment is likely to be of net benefit to Canada. In making his decision, the minister carefully considers the information submitted by the investor in light of the six net benefit factors listed in section 20 of the act. The six factors listed in section 20 are, first, the effect of the investment on the level and nature of economic activity in Canada, including, without limiting the generality of the foregoing, the effect on employment, on resource processing, and on the utilization of parts, components and services produced in Canada and on exports from Canada; second, the degree and significance of participation by Canadians in the Canadian business or new Canadian business and in any industry or industries in Canada of which the Canadian business or new Canadian business forms or would form a part; third, the effect of the investment on productivity, industrial efficiency, technological development, product innovation and product variety in Canada; fourth, the effect of the investment on competition within any industry or industries in Canada; fifth, the compatibility of the investment with national industrial, economic and cultural policies, taking into consideration industrial, economic and cultural policy objectives enunciated by the government or legislature of any province likely to be significantly affected by the investment; and sixth, the contribution of the investment to Canada’s ability to compete in world markets.
In response (b), as is standard practice, the minister consults federal departments as appropriate, affected provinces or territories and the Competition Bureau. The act, section 19, also requires that the director of investments provide the minister with specific information to assist in the net benefit determination. This includes the information contained in the investor’s application for review, written undertakings and other information, and representations from affected provinces and territories. At Industry Canada, the director of investments is supported by a deputy director and the personnel of the investment review division. The list of personnel in the investment review division is available online at: http://www.ic.gc.ca/eic/site/ica-lic.nsf/eng/h_lk00058.html.
The response to (c) is the same as the response to part (a).
In response to (d), in general terms, the act, section 19, requires that the director of investments provide the minister with specific information to assist in the net benefit determination. This includes the information contained in the investor’s application for review, written undertakings and other information, and representations from affected provinces and territories.