Madam Speaker, the potential sale of Rona to American giant Lowe's has a lot of Quebeckers concerned.
The first issue is that while Rona has hundreds of small hardware stores across the province, Lowe's is an expert in big-box stores. Since Lowe's paid twice the price to get its hands on Rona, some are worried that it will shut down smaller stores to increase profits and finance its takeover bid. Today, hundreds of business owners are worried and need some reassurance.
The second issue is the head office. A head office is where all of the important decisions are made, which is very important when people want to retain some control over their own economy. Rona's head office employs 1,000 people in Boucherville. It generates another 1,000 jobs for all kinds of professionals, including accountants, lawyers, computer experts, and marketers. Two thousand good-quality jobs are directly dependent on Rona's head office. However, that is not all. Since Rona is a Quebec company, it buys from Quebec companies. Rona makes almost half of its purchases from Quebec suppliers and 84% of its purchases from Canadian suppliers.
According to the Quebec government, 50,000 jobs in Quebec, especially in manufacturing SMEs, depend on Rona. In Canada, that number is 90,000. These jobs existed because Rona was a Quebec company, decisions were made here, our business people had direct access to the company's buyer and, furthermore, they could speak to him in their own language. That is what the purchase by a large southern U.S. chain is jeopardizing.
Lowe's made many promises in order to get its hands on Rona. Lowe's promised to continue working with Quebec suppliers; it promised not to move the corporate headquarters; it promised not to get rid of all the small hardware stores. That was what it had to promise to get its hands on Rona. Such a well-established organization is worth some concessions. However, there is one thing that Lowe's did not promise, and that is to keep its promises. There is no such requirement at present. The Government of Quebec has no legislative or regulatory power to protect Quebeckers in this transaction. That power belongs to the federal government. It can approve or reject the sale and, more importantly, it can attach conditions. It can ensure that Lowe's keeps its promises and that tens of thousands of jobs will not be jeopardized.
The Competition Bureau needs to examine this transaction. In this regard, the Competition Act is clear. The process exists and its criteria are clear. There is no political interference. No one can meddle in the process. As for the Investment Canada Act, however, that is another story. Department officials will be the ones doing the analysis, and we will never see it. The minister can then do as he pleases. The question I asked him on February 4 was simple: “Will the minister commit to imposing conditions to protect our SMEs and protect economic activity in Quebec?”
My question was simple, but sometimes I think things get lost in translation. The proof is that he replied, “We will make sure that we follow the process.”
There is no process. Once department officials have examined the file, the minister can do as he pleases. The decision is up to the minister and to him alone. It is purely political.
I will therefore ask the question again. Will the minister commit to imposing conditions to protect our SMEs and protect economic activity in Quebec?