Mr. Speaker, I would like to commend the hon. member for Burnaby—New Westminster on his motion. I know he has been working hard on this file ever since he was elected to this House.
Today's motion seeks to clarify the net benefit test, include parameters concerning reciprocity, improve the transparency of decisions, and set specific criteria for state-owned companies to meet regarding net benefit requirements for foreign company takeover bids in order to protect the Canadian economy from potential foreign government interference. This is an extremely important motion and it is also very timely.
Individuals or governments or members of Parliament are always defined by their actions, not by their words, because those are two different things. We may say one thing but act quite differently. I would like to summarize the Conservatives' actions on this file and give a little sketch of what they have done.
In 2010, this House unanimously adopted a motion to clarify the definition of “net benefit” but nothing came of it. We can see clearly that there was no action. Earlier this year, Petronas announced its intention to acquire Progress Energy. Once again, the idea of net benefit to Canadians was not clearly defined. Now we have the CNOOC purchase, but there still has been no clear definition of net benefit to Canadians.
On Friday evening, the government approved the acquisition of Nexen by CNOOC, a state-owned corporation. The government's lack of action in clarifying the concept of net benefit belied its claim that this would never happen. It was as if we put up a “for sale” sign on our natural resources, something that should not be encouraged.
The Prime Minister himself said that this was not a good deal for Canadians, but he was the one who approved it, just the same.
If they had taken action back in 2010 and defined what constituted a net benefit, they would perhaps have been able to say that it was not a good thing for Canadians, that there was no net benefit for Canadians and that for this reason they were refusing the deal or the offer.
I would like to take a moment to explain the impact and the consequences of their lack of action on this issue. Now there is some uncertainty among investors. Before making a purchase offer, a foreign investor wants to be certain that he knows the rules of the game.
If I am interested in investing in natural resources in Canada, before I go any further, before I get into the process, before I present an offer, I want to know the rules. When I buy a coffee, I know how much it costs; I know how the transaction is going to work. I think it is important and essential for the Canadian economy to have regulations and clear and precise definitions, if we want to encourage investment. This is good for everyone.
There is another consequence. There is a real threat to quality jobs in Canada. In this agreement, there is no guarantee that Canadian jobs will stay in Canada. These are good jobs, worthwhile jobs.
This would not be the first time that jobs are lost when this type of agreement is signed. I can give you some examples. When the Conservatives approved the sale of Falconbridge to Xstrata, 686 jobs were lost. Xstrata guaranteed that there would be no layoffs or job losses for three years, but Xstrata broke its promise. In 2009, two U. S. Steel plants closed down and 1500 jobs were lost. When Inco was taken over by the Brazilian giant Vale, workers had to endure a stormy and protracted strike when the employer tried to cut wages.
We therefore do not have to look very far to find examples of agreements that were not signed and decisions that were not made in the best interests of Canadians because the definition of “net benefit” is unclear.
There is another consequence: there is no reciprocity for Canada.
We do not even know what was negotiated in this agreement given the blatant lack of transparency in this regard. We do not know anything because no one was consulted. When organizations, such as the Calgary Chamber of Commerce, expressed their concerns, they were completely ignored. I looked, but I was unable to find what this agreement does for Canadians, and that causes me a great deal of concern. That is why I am so pleased that the hon. member for Burnaby—New Westminster moved this motion.
I would like to close by saying what we want. Contrary to what the government or the Liberals are saying, we are not against all agreements. We are in favour of agreements that are good for Canada, that will ensure that we have good jobs here and that will provide a guarantee of reciprocity. It is very important that these agreements be reached in a transparent manner.
The NDP thus wants to lower the threshold for investment that must be subject to review to $100 million. This will increase transparency and give us a little bit more power over our natural resources. Our criteria regarding proof of a net benefit for Canada must be more transparent and explicit. We must also hold public hearings and ensure public disclosure and the public implementation of all commitments undertaken by potential investors.
We have a beautiful country and wonderful natural resources that must be protected. We must make decisions in the best interests of Canadians. I am therefore asking everyone to support this motion.