Madam Speaker, I am pleased to respond to the comments by the hon. member for Joliette regarding the proposed purchase of Rona by Lowe's.
First, I would like to remind members that, much like trade, foreign investment is an important driver of globalization and is essential because it gives economies access to global value chains. That is why Canada is open to investments that create jobs, growth and long-term prosperity for Canadians.
The Investment Canada Act is the framework that allows us to guarantee that foreign investments meet that objective. The act sets out that any significant investment, namely the acquisition of control of a Canadian business with assets that exceed the threshold under the act, must be reviewed to determine whether the investment is likely to be of net benefit to Canada.
The net benefit review threshold for private sector WTO investments is currently $600 million in enterprise value. The review threshold for WTO investors that are state-owned enterprises is $375 million in asset value.
In order to determine whether an investment project constitutes a net benefit for Canada, the Minister of Innovation, Science and Economic Development assesses the investor's plans and undertakings based on the six criteria set out in section 20 of the Investment Canada Act. They include:
(a) 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, on the utilization of parts, components and services produced in Canada and on exports from Canada;
(b) the degree and significance of participation by Canadians in the Canadian business or new Canadian business and in any industry or industries in Canada...
(e) 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;
These criteria are clear indicators for investors, who often submit their plans based on those criteria.
The department determines the net benefit for Canada on a case-by-case basis. There is not one sole determining factor. Some criteria may be given more weight than others, depending on the nature of the investment and the circumstances surrounding it.
The process for assessing the net benefit is thorough and, if necessary, involves consultations with the provinces and territories affected as well as with the government departments or agencies with responsibilities in the sector involved in the transaction.
With regard to the proposed takeover of Rona by Lowe's, I would like to assure the House that the minister will thoroughly and carefully review the proposal submitted by Lowe's in accordance with the procedure set out in the legislation—