Greg Fergus

[Public Safety, February 23rd, 2016]

Madam Speaker, I would like to thank the member opposite again for her questions and concerns.

I cannot comment on the specific case of this particular transaction, but let me reassure the member, as well as all Canadians, that the provisions in the law set out a host of evaluations to make sure that there is a national security component that is taken into account and there is an examination.

I can assure the hon. member that the government did that and followed the law thoroughly on the evaluation of this particular transaction, as it does for all transactions that fall under the purview of the law.

I can assure hon. members that the conclusion of that committee was that national security concerns were taken into account and that there was a net benefit for Canadians.

[Public Safety, February 23rd, 2016]

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.

[Foreign Investment, February 17th, 2016]

Madam Speaker, I am new here in the House of Commons. I do not know if my colleague is in a similar position, but I do know that he is sitting next to the dean of the House of Commons, the most experienced man in the House.

I am sure that his colleague can explain to him that the Investment Canada Act states that the process is not political; it is independent of the government. The evaluation is conducted independently. That is important. We have to have a group that can evaluate the process to determine if there is a net benefit to Canada.

That is why there is no need for me to provide reassurances because our government can certainly ensure that there will be a process. The law prevails, and the bureau will review the situation.

[Foreign Investment, February 17th, 2016]

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—

[Aerospace Industry, February 16th, 2016]

Mr. Speaker, the aerospace industry is one of Canada's most innovative industries. It is also export-oriented, which is very important for the Canadian economy.

The federal government is in discussions with Bombardier and the Government of Quebec in order to make a decision as quickly as possible. I can assure the House of Commons and the hon. member that any investments will be in Canadians' best interests.

[Ethics, February 16th, 2016]

Mr. Speaker, I would like to reassure the hon. member and the House that the Minister of Innovation, Science and Economic Development meets daily with key stakeholders and key business people across the country. He meets with them and will continue to meet with them to make sure that we build a strong business climate for quality jobs for Canadians. However, let me confirm to this House that neither the government House leader nor anyone else from his office participated in that meeting last week.

[National Flag of Canada Day, February 16th, 2016]

Mr. Speaker, yesterday was the 51st anniversary of Canada's national flag.

On that day in 1965, our flag was raised on Parliament Hill in Ottawa and in communities all over Canada for the first time.

Today, Canadians know that the maple leaf represents a free, bilingual, democratic, and diverse country, a country that we are proud to call our own. All around the world, it symbolizes openness and optimism. The Canadian flag unites us and represents our values and has done so for the past 51 years.

I encourage Canadians to gather together to celebrate this precious symbol not only on National Flag of Canada Day but throughout the year.

[Aerospace Industry, February 5th, 2016]

Mr. Speaker, as I told my hon. colleague opposite, we know how important the aerospace industry is and we know that Bombardier is one of Canada's leading companies.

We have entered into discussions with the company and with the Government of Quebec, and we are going to make a decision in due course.

[Aerospace Industry, February 5th, 2016]

Mr. Speaker, our government has initiated discussions with Bombardier and the Government of Quebec to take stock of the company's priorities.

We believe that any federal investment in that company must be supported by a solid business plan. However, we recognize that the aerospace sector is a very important industry that relies heavily on exports and employs over 180,000 Canadians. It is very important—

[Innovation, Science and Economic Development, February 5th, 2016]

Mr. Speaker, we will allow the Competition Bureau to do its work. It does its work independently of government and will do its work in a rigorous manner. We will wait for those results.