Mr. Speaker, let me begin by stating that foreign investment plays an important part in the Canadian economy. Foreign investors bring capital, knowledge, capabilities, technology and other resources which can increase the productivity, efficiency and competitiveness of Canadian firms. Their investments help businesses to expand and create jobs for Canadians.
Indeed, Canada has one of the most open investment regimes in the world. In order to ensure that Canadian firms have access to investment opportunities abroad, it is important for Canada to maintain an investment climate which encourages the free flow of investment.
Canada has a broad framework in place to promote trade and investment while protecting its interests. This includes the Investment Canada Act, which provides the Minister of Industry with the power to review significant foreign investment proposals. The review threshold for WTO members is currently $299 million in book value of the assets of the Canadian business.
Where a proposed investment is subject to review under the act, the investor cannot implement the investment without the approval of the minister responsible for the act.
The Minister of Industry approves an application only when he is satisfied that the transaction is likely to be of net benefit to Canada. In making this determination, the minister must consider the factors listed in section 20 of the act. These include: the effect of the investment on the level and nature of economic activity in Canada; the degree and significance of participation by Canadians in the Canadian business or new Canadian business; the effect of the investment on productivity, industrial efficiency, technological development, product innovation and product variety in Canada; the effect of the investment on competition within any industry or industries in Canada; the compatibility of the investment with national industrial, economic and cultural policies; and 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 in which the Canadian business has substantial activities or assets.
The Investment Canada Act is in place so that major investments are properly reviewed to ensure they are in the best interest of this country and, when they are not in the best interest of this country, this government will not hesitate to block a transaction.
BHP Billiton has withdrawn its application for review and informed its shareholders of this decision. Under the Investment Canada Act, this terminates the review process because there is no longer a transaction to review.