House of Commons photoWon his last election, in 2011, with 49% of the vote.
Foreign Investment October 3rd, 2012
Mr. Speaker, our government will act in the best interests of Canada. We have improved the act over the last years, including in 2007 issuing guidelines for state-owned enterprises; in 2009, adding more provisions for national security interests; and in 2009, increasing transparency and the ability to communicate, and the same in 2012.
This transaction will be scrutinized very closely. However, I must remind the House that under the previous Liberal government not a single deal was turned down.
Foreign Investment October 3rd, 2012
Mr. Speaker, I will quote Professor Ian Lee from Carleton University, who said, “It will politicize the process enormously”. He also said, “They're trying to transform these” approval processes “into kangaroo courts”. He continued further, “The whole purpose is to frighten off foreign capital”.
The NDP members are trying to install a process that would ensure we would go back 30 or 40 years, because they are against trade. They are against investment. They are against development of the country.
Every single decision we will make here will be in the best interests of the country.
Foreign Investment October 3rd, 2012
Mr. Speaker, I will indicate where I do not agree with my colleague across the floor. When we made improvements back in 2007, we put in guidelines for state-owned enterprises. Back in 2009, we put in provisions to make sure that security interests would be taken into account. Also back in 2009, we provided the tools to be able to communicate more with the public. We did this also earlier this year. The NDP always voted against those things.
This transaction will be scrutinized very closely. Every single decision made by the government is made in the greatest interests of the country.
Foreign Investment October 3rd, 2012
Mr. Speaker, my colleague is definitely not familiar with section 36 of the act. What the NDP is trying to do is implement a process that would politicize everything. There would no longer be any type of proposed investment here in Canada. The NDP wants to take us back 30 or 40 years.
Unlike the NDP, we believe in investment. Canada is open to investment, and every transaction will be assessed based on its merits. Investments must provide a net benefit to Canada. Decisions will be made in Canada's best interest.
Foreign Investment October 3rd, 2012
Mr. Speaker, as my colleague knows, section 36 indicates that any information obtained from an investor must be privileged and confidential. However, this does not prevent the sharing of opinions. That is how the law works.
The proposed decision will be scrutinized very closely. Every proposed transaction must be assessed to determine whether it provides a net benefit to Canada. We always make decisions in Canada's best interest, but we will not implement a process such as that proposed by the NDP, which would bring us back 30 or 40 years and prevent any form of investment here in Canada.
Business of Supply October 2nd, 2012
Mr. Speaker, there is a contradiction. My friend across the way is a member of the party that never turned down a single deal in 13 years. In the case of the potash deal, the process was followed under the Investment Canada Act. As he said, the premier had the opportunity to make comments. This was the way the law worked.
After that, we realized we needed to increase transparency and better communicate with the public, so some changes were made back in 2009. We went even further. In 2012 there were more opportunities for the minister to communicate with the public about the fact that if he was not satisfied that a deal would provide a net benefit for the country, he could explain why. This is exactly what we are working on.
Two other major changes were established. We put in place state-owned enterprise guidelines back in 2007 regarding corporate governance as well as the ownership of shares. In 2009 we established provisions for the national security aspect.
That is the way the law evolved and it evolved more under this government compared to the previous government. Why? Because we are pragmatic and welcome foreign investment, but always in the best interests of our country.
Business of Supply October 2nd, 2012
Mr. Speaker, first, we have to see what the market prospects are.
As I said in my speech, this is important because when an investment is studied, we must consider whether it is good that it happens, then see if the company is viable or not and what opportunities will be there in the future.
Under the leadership of my colleague, the President of the Treasury Board, a court case was established and then tremendous undertakings were achieved, as well as benefits for the local community of Hamilton. There were some investments by the company, as well as important capital expenditures.
Going down the road, foreign investments provide the opportunity to have our enterprises be part of the global supply chain. Otherwise, when the market gets low, without new capital, it may be the end of some enterprises.
It is too bad that my colleague has portrayed the situation as a bad one, because this is a good one.
Business of Supply October 2nd, 2012
Mr. Speaker, I would first like to say that I will be sharing my time with the hon. member for Brant. I wish to thank you for the opportunity to speak to the House today.
I will take this opportunity to describe how the Investment Canada Act works and how the Minister of Industry makes decisions. First, the administration of the act is shared between two ministers and their respective departments. The Minister of Canadian Heritage is responsible for the review of investments involving cultural businesses. The Minister of Industry is responsible for the review of all other investments. The Minister of Industry is also responsible for all other aspects of the administration of the act, including initiating enforcement measures.
Today, I will be talking about investments for which my department, Industry Canada, is responsible.
When a foreign investor proposes to purchase a Canadian company, that investor must obey the law. If a proposed investment must be reviewed in terms of its net benefit under the act, the investor cannot close the deal without the approval of the minister responsible. The investor must provide certain information in its application. This includes a business plan for the Canadian company.
Foreign investments are reviewable if the assets of the Canadian company are equal to or greater than a threshold established in the act. The threshold for World Trade Organization member countries is adjusted each year by an amount equivalent to the change in the gross domestic product of the investor’s home country. In 2012, this threshold is $330 million. The threshold for cultural businesses and non-WTO countries remains at the levels established in 1985: $5 million for direct acquisitions and $50 for indirect acquisitions.
Under the act, the Minister of Industry has an initial period of 45 days to consider the proposed investment and decide whether it will have a net benefit. If necessary, the minister can extend this period by 30 days. In addition, the period can be extended if the minister and the investor agree.
Industry Canada only approves applications for review when it is convinced that the plans, undertakings and other information from the investor make it clear that the investment is likely to be of net benefit to Canada.
Let me be clear that in my role as minister of industry, I must make sure that an application is approved only when we are satisfied, based on the plans, undertakings and representations of the investor, that the investment is likely to be of net benefit to Canada.
To determine the possibility of a net benefit, the following factors, listed in section 20 of the act, must be taken into account. They are:
(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 of which the Canadian business or new Canadian business forms or would form a part;
(c) the effect of the investment on productivity, industrial efficiency, technological development, product innovation and product variety in Canada;
(d) the effect of the investment on competition within 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; and
(f) the contribution of the investment to Canada’s ability to compete in world markets.
As part of the review process, the Investment Review Division of Industry Canada consults with federal government departments with policy responsibility for the industrial sector involved, with the Competition Bureau and with all the provinces and territories in which the Canadian business has substantial activities or assets.
Anyone who wishes to express their opinion regarding a specific investment can do so during the review process. This is outlined in the document entitled: “Guidelines—Administrative Procedures”.
According to these guidelines, when unsolicited representations are received that may be contrary to a net benefit determination, the applicants are advised of the nature of these representations and given enough time to respond if they so wish. Once the parties consulted have been able to explain their point of view, discussions are held with the investor and the subject of binding commitments is addressed.
The Investment Review Division also conducts an independent analysis of the acquisition on the basis of the six factors pertaining to net benefits that are set out in section 20 of the act. In the course of this review, the minister responsible for enforcing the act establishes benchmarks on the basis of which the proposed transaction is examined.
For this purpose, the profile of the Canadian business which the investor intends to acquire is examined with due regard to the future prospects of this business if it were to remain independent and not acquired. This would include determining whether the business in question is healthy and has good prospects, or whether instead it has financial problems. This is an important point.
Also taken into consideration are the main strengths of the business, areas for improvement and any challenges it may face. In addition to this, other factors involved in the planned investment are considered, such as the fact that the investor is providing capital or expertise that would not otherwise be accessible to the Canadian business.
In 2011, the Investment Review Division received and dealt with 634 notices of investment. It approved a total of 15 applications for review.
Our government has also been proactive and has updated the act to reflect new conditions.
More specifically, our government introduced the following measures: in 2007, it implemented the “Guidelines – Investment by stated-owned enterprises”; in 2009, it amended the provisions on national security; it amended the act to raise thresholds so that reviews could focus on the transactions that would have the greatest impact on Canada’s economy; it introduced targeted amendments so that the minister would be in a better position to communicate information concerning the review process to the public, and lastly, it published an annual report on the administration of the act.
We need to remember that the context in which international investments occur is constantly changing. We therefore continually review the act to make sure it is up to date and effective.
With respect to the proposed investment, as I said previously, all the time required will be taken to ensure that there is a detailed and attentive review of CNOOC’s plans to acquire Nexen.
The transaction will be approved only if it is likely to be of net benefit to Canada.
With reference to the proposed investment, as stated previously, the necessary time will be taken to conduct a thorough and careful review of CNOOC's proposed acquisition of Nexen. It will not be approved unless there is satisfaction that it is likely to be a net benefit for Canada.
I am happy to have had the opportunity to speak to the House and my colleagues in order to provide details about the Investment Canada Act.
Telecommunications Industry October 2nd, 2012
Mr. Speaker, Industry Canada has standards and policies in place that must be adhered to. This is done in co-operation with the municipalities and other stakeholders. For every action that is taken with respect to installing new towers, we ensure that we are protecting Canadians' health and safety.
Foreign Investment October 2nd, 2012
Mr. Speaker, we always act in the best interests of Canadians. What my colleague proposes is to shut down any single form of investment in this country.
We have article 20 in the act. The hon. member can read it. It has the factors taken into account to determine whether a transaction will provide a net benefit or not.
We improved the act. In 2007 we put new guidelines for state-owned enterprises. We also put in new provisions for national security issues, and in 2012, we put more in tools to better communicate with the public, and the NDP always voted against these provisions.