Mr. Speaker, the press conference that the Prime Minister of Canada gave last Friday at the end of the day was quite surprising. On the one hand, the Prime Minister said that Canada was not for sale, and on the other hand, he said that he was giving his approval to the biggest transaction ever to be made under the Investment Canada Act: he simply accepted the takeover of Nexen, a Canadian corporation, by CNOOC, a state-owned Chinese company.
On the one hand, he said that Canada supports the free market and, on the other, he gave his approval to a sale that distorts the marketplace, an offer that no private business can match.
Furthermore, he handed control of our natural resources over to an economy where the free market does not really exist. For the past few months, the Minister of Industry has gone out of his way to say that the rules under the Investment Canada Act were clear, and that the transactions that would be approved would represent a net benefit for Canada.
Now here comes the Prime Minister, who is no longer quite so sure. He says that takeovers of the oil sands by foreign state-owned corporations are not something that will happen again.
In 2010, the Conservative government and the House unanimously agreed to review the Investment Canada Act, to clarify the meaning of net benefit and to hold public hearings on takeovers of our industries. Two years later, the Minister of Industrystill has done nothing about it. The government waited for storms to hit the Canadian economy, for investors to be confused, for provinces to be baffled and for commentators to be unanimous in their criticism of the vague criteria in our foreign investment legislation.
The Prime Minister has once again promised to review the criteria on net benefit. Well, no. Rather than taking advantage of the crisis to clarify our investment rules finally and to schedule public hearings, the Prime Minister has added a new expression to the rather hazy list in our Investment Canada Act.
After guessing at what the government meant by net benefit for Canada, investors will now have to unscramble the equally cryptic criteria that make up “exceptional circumstances”. They are once again offering vague rules simply to sugar-coat the pill of two separate takeovers of our strategic energy resources by foreign governments. Moreover, Canadians still do not know the conditions that CNOOC and Petronas will have to meet.
The new regulations are not enough: nothing in them clarifies the net benefit test; there are no assurances that public consultations will be held with Canadians, who will bear the consequences of these takeovers; there are no assurances of mandatory disclosure of the guarantees given by investors or that they will actually be enforced in a transparent and responsible manner; there is no improved reciprocity for Canadian investors outside Canada; there are no assurances that governments' records of interference in the activities of state-owned corporations will be reviewed; and there are no guarantees that the strategic importance of the asset concerned will be taken into consideration.
In allowing the takeovers of Nexen and Progress Energy, the Prime Minister says they represent a net benefit for Canada. In the same breath, he announces that the rules will now be changed for state-owned corporations wishing to acquire companies operating in the oil sands—is that right?—but not for other sectors of the economy. What is deeply disturbing is that the Prime Minister has decided that this sector will be protected, but not others.
One Globe and Mail columnist wrote:
More profoundly than that, Mr. Harper's populist and ideological decision to draw a line in the oil sands could be one of the most influential rulings by Canada on world economic affairs in decades, as the global economy continues its seismic reordering in the era of emerging superpowers led by China.... The risk is that the world sees Canada as closed for business....
I wonder what the situation is for Canadian businesses in other strategic sectors of our economy, such as agriculture. I am thinking of Viterra, which has just been bought by Glencore. What about sectors such as mining, forestry, the aerospace industry and the high-tech and manufacturing sectors? Will those sectors not be protected?
The Conservatives, who boast that they are the guardians of Canada's economy, totally lack any long-term vision or understanding of industry or resources as a whole.
They are unable to develop a consistent policy to ensure that Canada fully benefits from the positive impact that foreign investment can have. They are incapable of negotiating conditions that would meet the net-benefit-for-Canada test or subsequently to establish mechanisms to enforce it.
The recent past is one of broken promises by foreign investors, but especially of the Conservatives' lax approach to protecting jobs and research and development opportunities.
The Stelco closing in 2009 resulted in 1,500 workers being laid off in Nanticoke and Hamilton. The shutdown of appliance manufacturer Mabe in the east end of Montreal cost 700 workers their jobs. Let us not forget the 1,300 Electrolux jobs that will be lost in L'Assomption, in Lanaudière, when the Swedish appliance giant relocates. There are also the 600 jobs that were lost when the White Birch paper plant shut down in Quebec.
Eric Reguly wrote in the Globe and Mail:
In many cases, some or all these promises have been broken, leading to a hollowing-out of Corporate Canada. Exhibit A is Hamilton, once a thriving steel town....
The new 'net benefit' test must be clearly defined and easily enforced. It has to be transparent. It must come with a defined set of sanctions...if benefit promises are broken. And it has to come with the understanding that Canadian companies investing in, say, China, will be treated equally fairly, even if they are not allowed to own 100 per cent of a Chinese company.
Canadians no longer have faith in the Conservatives' ability to negotiate conditions that will benefit the Canadian economy, create jobs and comply with our environmental standards. The recent announcements are tangible evidence of the Conservatives' total lack of strategy. This reeks of improvisation.
Unlike the Conservative government, the NDP is clear. It is proposing that Canada, along with the provinces, identify Canada's strategic sectors and comparative advantages.
The NDP is also proposing that we develop an energy and industrial policy that would use these comparative advantages as leverage in negotiations for agreements and foreign investment in Canada.
Lastly, the NDP supports an in-depth review of the Investment Canada Act, including: a transparent public consultation process; conditions regarding jobs, the environment, communities, headquarters, research and development, and intellectual property; oversight mechanisms and penalties if the conditions are violated.
The official opposition is prepared to do its share in working together on a process that will satisfy Canadians, as well as Canadian and foreign investors, so that Canada can responsibly and strategically unlock the potential of its resources and so that the industrial spinoffs are felt in all regions of Canada. The government must also include all of Canada's strategic industrial sectors.
It is time to get to work.
Following the press conference of last Friday, I would like to strengthen the motion by proposing the following amendment. I move:
That the motion be amended by adding, after the word “interference,” the following: “and calls on the government to hold full and public consultations on the proposed guidelines announced by the Prime Minister on December 7, 2012 and on previously promised changes to the Investment Canada Act.”