Madam Speaker, I am pleased to respond to the comments made by my colleague, the hon. member for the riding of Churchill—Keewatinook Aski, concerning the review of foreign investments that could be injurious to national security.
First of all, I would like to point out that direct foreign investment plays a positive and significant role in the Canadian economy. It contributes to research development, productivity, and globalization.
Trade and direct foreign investment go hand in hand. They link Canada to international value chains. Canada is open to investments that create jobs, growth, and long-term prosperity for Canadians. However, that cannot happen at the expense of national security.
The Investment Canada Act has an important role to play. On the one hand, it provides for the review of significant foreign investments for their likely net benefit to the economy. On the other hand, it provides for the review of investments that could be injurious to national security.
All foreign investment in Canada is subject to a national security review under the Investment Canada Act. The process is thorough and involves consultation with government organizations responsible for national security. The Allstream-Zayo transaction was no exception.
I can assure the House of full compliance with the Investment Canada Act. The act restricts the amount of detail that can be shared about specific transactions, and those restrictions are important because they prevent trade injury and protect national security.
It would be useful to look at how those in charge of reviewing transactions in accordance with the act operate. The act was amended in February 2009 to enable reviews of investments that could be injurious to national security.
Review processes and timelines are clearly established, and the act also gives the Governor in Council the authority to take any necessary measures to address problems that arise concerning national security.
The national security provisions apply to a broader range of foreign investments than the net benefit provisions.
The act also provides separately for the review of foreign investments for their likely net benefit to the Canadian economy. Net benefit reviews are limited to significant investments for acquisitions of control of Canadian businesses valued above the threshold set out in the act. For private sector WTO investors, the relevant threshold is $600 million in enterprise value. For foreign state-owned enterprises, that threshold is at a lower $375 million in asset value.
The net benefit review process is rigorous and involves thorough consultation with affected provinces and territories, as well as government departments or agencies that have policy responsibility for the sector involved in the transaction. Other bodies are also consulted. In addition, any person or group may submit its views in writing to the minister during the review process.