Mike Lake

[Fairness at the Pumps Act, May 10th, 2010]

Mr. Speaker, this has been an issue that has been raised before. I know that John Manley looked at this when he was industry minister under the previous Liberal government and, with the advice of experts, he decided to stick with the global standard in terms of temperature control.

However, we always welcome input from hon. members on ways to even further strengthen legislation. If the hon. member wants to get more information, pass on more information or have a conversation with me afterward, he is welcome to do so.

[Fairness at the Pumps Act, May 10th, 2010]

Mr. Speaker, there is a whole variety of different things that governments can do to improve the lives of Canadians, and we are always looking for ways to make further improvements, but in this case we are focused very seriously on the measurement of products that Canadian consumers purchase.

In terms of what this bill would do regarding measuring devices, what we are looking at here is largely a problem with the calibration of devices, not necessarily intentional, although messing around with the devices is part of the problem, but what we are talking about are devices that are not inspected properly or, if they are inspected and found out to be wrong, they tend to get corrected when the problem is to the detriment of the retailer but not necessarily to the detriment of the consumer.

We see twice as many pumps that are inaccurate in their measurements to the detriment of the consumer as we see to the detriment of the retailer. Obviously, it is a very significant problem.

[Fairness at the Pumps Act, May 10th, 2010]

Mr. Speaker, in terms of the small number of Canadians who the member says this change will affect, I want to point out that the number we are talking about in terms of the cost of this inaccuracy just at the gas pumps alone, and, of course, there are several industries that this bill touches on, is $20 million per year. I would say that is not an insignificant number, as the hon. member suggests it might be.

Several proposals that were put forward by the Liberal Party would have had an impact on gas prices over the last few years, but perhaps the most significant one was the proposal that it ran as the centrepiece of its last election campaign which was the carbon tax. That would have been devastating for Canadian consumers and businesses who purchase gasoline and virtually anything else that they would purchase.

[Fairness at the Pumps Act, May 10th, 2010]

Mr. Speaker, on May 12, 2008, the former minister of industry, the hon. member for Calgary Centre-North stood in the House and responded to a question. The question had to do with media reports that an alarmingly high percentage of gas pumps across the country were not accurately measuring the volume of gas being pumped into the vehicles of Canadian consumers.

Even more troubling was that consumers were getting the short end of the nozzle. Three out of every five times the gas pump measured inaccurately, it was the motorist who was getting ripped off. Clearly something had to be done. Gas pumps are intricate machines. Consumers cannot tell if a pump is not operating properly unless it is widely off the mark. If the machine is over-charging consumers, for example, who is to know and who is to compel the retailer to fix the faulty pump if that retailer is unwilling to correct the error or does not even realize it exists?

The problem should also be considered at a deeper level. Commercial transactions, the millions of exchanges between buyers and sellers that take place every day in our country, are made on the basis of trust. The seller sells the agreed-upon quantity at a fair price. The buyer makes the agreed-upon payment in a timely manner.

When that social and financial trust, that fundamental expectation shared by buyers and sellers, comes into question it does harm to the entire system of commercial exchange on which our country's prosperity and ongoing growth is based. If that trust is gradually and perniciously eroded in one important industry, the entire system can fall under a shadow of doubt and suspicion. Obviously something had to be done and thankfully it is being done.

On that day 24 months ago, the minister told the House he had taken two immediate steps to bolster Canadians' trust in that vital system of commercial exchange. First, he instructed officials in his department to increase the number of gas pump inspections to be undertaken over the course of that summer, the summer of 2008. Second, he sent letters to all Canadian gas retailers informing them of the stepped-up inspection campaign and asking them to co-operate fully with government inspectors.

That is not all. My hon. colleague pledged he would take two additional steps. He would speed up the government's review of the laws that govern gasoline pumps to make sure those laws give the Government of Canada the authority to levy stiff fines on retailers whose pumps cheat Canadian consumers. And he would take measures to ensure that the number and frequency of inspections at gas pumps were permanently increased to make sure unscrupulous and negligent retailers did not resume overcharging their customers once the public furor over the scandalous behaviour died away.

We promised to take further action to protect Canadian consumers then and we are going to deliver on that promise right now.

I am delighted to have the opportunity to lead off debate on Bill C-14, the fairness at the pumps act. Talk about truth in advertising. The bill would provide Canadians with exactly what its title indicates, fairness at the pumps. It would do so by amending the two laws that govern the use of retail measuring devices such as gasoline pumps, the Weights and Measures Act and the Electricity and Gas Inspection Act.

To be precise, the bill would give the force of law to three specific changes that have been carefully designed to protect Canadian consumers and deter unscrupulous or negligent behaviour among retailers. One, the bill would sanction mandatory inspection frequencies for measuring devices used by retailers. Two, the bill would authorize the Minister of Industry to designate qualified authorized service providers to carry out inspections on measuring devices. Three, the bill would set down stiffer fines that could be imposed under the Weights and Measures Act and the Electricity and Gas Inspection Act and would put in place a new graduated system of administrative monetary penalties.

Each of these actions would be a tremendous advance in the way we as Canadians protect ourselves as consumers and make sure our retailers operate fairly and honestly.

Why do I believe so strongly in the merit of these new provisions? Let me go through each one in detail and show the House exactly what I mean.

The first change set down in the fairness at the pumps act is mandatory inspection frequencies. Mandatory inspection frequencies is a complicated way of saying that the new act would amend the Weights and Measures Act to instruct businesses in a variety of specific industries to have their measuring devices inspected regularly. The Government of Canada would use its regulatory authority under Bill C-14 to put these mandatory inspection frequencies in place. Once established, these compulsory inspections would apply to virtually all companies that rely on measuring devices as part of their daily business. Gasoline retailers as well as retailers of home heating oil would be required to have their devices inspected every two years. That would also be the mandatory inspection frequency for all devices used in what is known as the downstream petroleum sector, for example, loading rack meters used to fill petroleum transportation trucks.

That same two-year inspection frequency would apply to measuring devices used by businesses in the dairy industry, enterprises in mining and metals, and companies in the grain and field crop sector, other than measuring instruments used in grain elevators. That does not mean the new bill would exempt grain elevators. Businesses and agricultural co-operatives would have to make sure measuring devices in grain elevators were inspected every year. One year would also be the mandatory inspection frequency for propane dispensers, meters in the dairy sector, measuring devices in the fishing and fish-products industry and in logging and forestry.

The fairness at the pumps act would also cover businesses in the retail food sector. These businesses would have to have their scales and other kinds of measuring instruments regularly inspected.

While this is a lengthy list of industries, companies and frequencies, it is by no means a finite one. Should Canadians deem it necessary, Bill C-14 would enable the Government of Canada to expand its area of authority to include the measuring devices of businesses that operate in other industries and sectors as well.

At the same time, I should point out that any future decision to extend the application of the act would not be taken unilaterally. Representatives of the federal government would consult closely with business owners and operators in any industry sector that we decided must be included under regulations developed under authority of the fairness at the pumps act. That way we would make absolutely sure that any new demands we make on retailers were realistic, fair and consistent.

We have taken that kind of inclusive, respectful approach from the start. Officials at Measurement Canada consulted carefully and thoroughly with industry sector representatives immediately impacted by the bill we are considering today. As a matter of fact, these discussions have been ongoing, and we accelerated them to respond as quickly and as reliably as possible to the troubling situation uncovered by the media reports I spoke of at the beginning of my remarks.

Retailers have been with us every step of the way because they realize the importance of the bill. They know their credibility is at stake. They know that when their reputation as honest, fair businesses and business people takes a hit among Canadians, so do their prospects for continued success and prosperity. They also know that the best way for their businesses to maintain the trust of consumers is to have their measuring devices and instruments undergo regular inspections.

Granted the businesses and the industries I have pointed out would have to pay fees for those inspections, but these costs would be determined by the marketplace and are already understood and accepted as facts of life by businesses in these industries. In fact I anticipate many companies would take advantage of inspections to have service and repair work performed on the measuring devices being inspected.

Of course, inspections do not occur on their own, and the ramped-up regime of mandatory inspection frequencies made possible by Bill C-14 would certainly not appear miraculously. We would need more trained inspectors to make sure we could meet the stringent requirements set out in the fairness at the pumps act.

That point brings me to the second change outlined in the bill. The bill would authorize the Minister of Industry to designate authorized service providers to carry out inspections of measuring devices. These inspectors could be independent professionals or employees of companies. Either way we would guarantee those designated to carry out this important work under the new bill were up to the task. We would establish conditions that would make the organizations authorized to perform inspection work accountable. We would only designate organizations and their technicians that met a stringent and ongoing qualification process.

These authorized service providers would be responsible for ensuring that appropriate test equipment and inspection procedures approved by Measurement Canada were used. Individuals permitted to perform inspections would be required to pass mandatory training, which includes theoretical as well as practical evaluations. Annual assessments would be part of the monitoring process for authorized service providers.

In instances where responsibilities were not fulfilled, the minister could suspend or revoke their designations, an action that would severely impact their ability to conduct business. Measurement Canada has successfully piloted a similar program for initial inspections performed under the Weights and Measures Act. Assessments of this approach demonstrate that the quality of the work done by authorized service providers and their recognized technicians is in the 96% satisfaction range.

Even though Bill C-14 would see authorized service providers play an increasingly important and meaningful role in protecting consumers, Measurement Canada inspectors would remain leading forces in the field. They would perform independent inspections to assess the compliance of industries under the new act. They would respond to public complaints of companies suspected of measuring inaccurately and they would be solely responsible for taking actions to enforce the law when offences under the Weights and Measures Act and the Electricity and Gas Inspection Act were identified.

I should also point out that this approach is not entirely new. For many years, Measurement Canada has employed authorized service providers to carry out inspections under the Electricity and Gas Inspection Act.

The bill before us today would make it possible for us to expand the reach of non-government inspectors to include all of the industries subject to the Weights and Measures Act.

Like the involvement of service providers, fines and penalties for those who violate the Electricity and Gas Inspection Act and the Weights and Measures Act are not entirely new.

What is new is the amount of these court-imposed fines and the nature of those penalties.

That brings me to the third and final change set out in the fairness at the pumps act.

To be precise, Bill C-14 would increase the fines that can be imposed under the Weights and Measures Act and the Electricity and Gas Inspection Act. The bill would also put in place a new graduated system of administrative monetary penalties.

Let us consider the fines, first.

The fairness at the pumps act would increase the court imposed fines for the variety of the offences listed in the Electricity and Gas Inspection Act and the Weights and Measures Act. Fines under the two acts would rise from $1,000 to $10,000 for minor offences and from $5,000 to $25,000 for major offences. The bill would also introduce a new fine of $50,000 to be levied against those who repeatedly violate the acts.

Why have we chosen to make such substantial increases in the amounts of these fines? The answer is straightforward. The costs of gasoline, electricity, food and other measured products have risen dramatically and they are expected to keep on rising for the foreseeable future. It is only proper that we increase the penalties we impose on those who violate the law if we want the penalties to have a deterrent effect. After all, if an unscrupulous retailer can make money by cheating consumers even if he or she is fined, what good is the fine?

To levy fines under the two existing laws, the federal government must prosecute alleged offenders. However, a process as complex as a criminal proceeding and a punishment as severe as those listed under the new act are not always the most appropriate ways to deal with all those who violate the law.

Some contraventions of the law may call for less stern penalties. It is common sense. That is why we have introduced what are known as administrative monetary penalties. The fairness at the pumps act would give federal authorities the discretion to use a graduated system of penalties to punish offenders: monetary penalties, which would not lead to a criminal record for those who commit relatively minor offences; and criminal prosecution for those who commit serious offences or who are repeat offenders.

Enforcement action, such as the use of administrative monetary penalties, would not be abused. These measures would be used as part of a graduated enforcement structure that would include trader education and the use of warnings when appropriate. It is not the government's intention to punish the good players who demonstrate that they have taken appropriate steps to provide accurate measurement.

Like the joint public-private approach for inspections, this graduated system of administrative monetary penalties is not entirely new. Several departments and agencies that enforce regulations rely on administrative monetary penalties; large departments such as Transport Canada and smaller yet active and vital agencies such as the Competition Bureau and the Canadian Food Inspection Agency.

Those are the three advances proposed by Bill C-14, the fairness at the pumps act. Mandatory inspection frequencies to measure devises used by retailers, authorized service providers to carry out inspections of those measuring devices, stiffer fines and a new graduated system of administrative monetary penalties. They are reasonable steps taken in partnership with industry. They are a practical response to a problem we committed to resolve and, most important, they are a fair deal for consumers, retailers and all Canadians.

These changes are a fair deal for consumers because they would put in place an inspection regime that would make it possible for a host of qualified inspectors to root out inaccurate measuring devices. Measurement Canada estimates that the number of annual inspections of gas pumps alone would increase from 8,000 to approximately 65,000. That is taking action, that is keeping our commitments to Canadians and that is protecting consumers.

These changes are a fair deal for retailers because they would protect honest retailers from being associated with and harmed by the unscrupulous practices of the minority of retailers who willingly or unwillingly operate inaccurate measuring devices.

I am sure my hon. friends would agree with me that the overwhelming majority of retailers in our country are fair and honest businesspeople. Their businesses are tainted when companies in their industry engage in unscrupulous behaviour. They want us to deal with illegal and negligent behaviour by retailers just as much as consumers do. In fact, their representatives told us that businesses were willing to pay the fees associated with an increased number and frequency of inspections if these inspections will expose and punish negligent and unscrupulous retailers and safeguard the integrity of their industries.

These changes are a fair deal for all Canadians because, although the fairness at the pumps act is a direct product of inaccurate gas pumps, the bill would extend the reach of inspections enforcement beyond gas retailers to include companies that rely on measuring devices to conduct their day-to-day business. That way, the resulting law will benefit all Canadians.

The changes are also a fair deal for all Canadians because they would impose minimal costs on the federal government, and this is important. A report published by the International Organization of Legal Metrology in 2003 used Canadian device compliance rates to estimate dollars at risk for each type of device. When these figures were related to inspection activities, it was found that for each dollar spent on inspections, $11 of inaccurate measurement was corrected. With rising commodity costs, this is a return on investment I am sure all Canadians can support and just one more reason that I am convinced Canadians will support this bill.

Consumer protection is a priority for this government. Once this bill receives royal assent, the process for implementation will require that regulatory amendments be processed and that there be a capacity to have these inspections take place. These regulations will be put in place as soon as possible after royal assent.

Measurement Canada has been building capacity for implementation in the eight sectors that we are talking about here today. Over the coming months, Measurement Canada will be educating traders as to their responsibilities once the bill is enacted, as well as ramping up the authorized service provider capacity to implement.

I am also confident that this House will support Bill C-14, the fairness at the pumps act. I have given members three powerful reasons to do just that. I have outlined clearly how this bill is a fair deal to all, and yet perhaps the most important reason to support this bill is the principle that lies at its heart: Canadian consumers should get what they pay for, no more and certainly no less. What could be fairer than that?

[The Economy, May 7th, 2010]

Mr. Speaker, the difference between our government's approach to the economy and the Liberal approach could not be more clear.

Our government believes that low taxes fuel job creation and economic growth. That is why since forming government we have reduced taxes for families, seniors, students and businesses. The Liberal Party thinks Canadians should pay more, a higher GST, a new carbon tax and hikes to business taxes, a move experts have said will kill jobs.

We need only look at the facts to know which plan will have better success. Canada has created 285,000 new jobs since last July, including a record number of job gains last month. On the economic growth front, the IMF and OECD predict Canada will lead all G7 countries in growth both this year and next year.

Canadians have a clear choice. They can choose the tax and spend Liberal approach, a failed approach from the past, or they can choose our low tax approach, which has made Canada the envy of the industrialized world.

[Business of Supply, April 28th, 2010]

Mr. Speaker, I am sure that the dozens of Canadians who are tuned in right now are having a hard time hearing my answer, because they are laughing hysterically at the NDP member's speech on economics.

Let us take a look at what the experts have had to say about Canada's approach.

Nobel Prize-winning economist Paul Krugman said:

We need to learn from those countries that evidently did it right. And leading that list is our neighbor to the north. Right now, Canada is a very important role model.

Patricia Croft, from RBC Global Asset Management, had this to say:

In terms of the global comparisons, Canada is the envy of just about every other country in the world.

[Business of Supply, April 28th, 2010]

Mr. Speaker, I would point out that under the Investment Canada Act, the changes that were made were largely put forward by a panel of renowned experts from across this country. These changes have been widely accepted as ones that would benefit Canada significantly economically, especially given the fact that we are a trading nation.

I would also point out in terms of the net benefit review and the undertakings by different companies, and here we are talking about several different companies named by the members opposite in the motion, that in every case the undertakings are very different. In some cases, the challenges faced by those companies are largely due to the circumstances that are coming out of this global economic slowdown that we have talked about and that everybody is aware of.

In one particular case, of course, in the judgment of the minister, a company had not met its requirements according to its undertakings. That case is now before the courts.

[Business of Supply, April 28th, 2010]

Mr. Speaker, once again I would reiterate what I said in my speech.

Specific criteria are used to define net benefit to Canada. Virtually every economist in the world would point to foreign investment as a key driver of growth, better jobs, and better quality of life in terms of technology and all of the different things that we benefit from.

I would also point out that the number of Canadian companies and champions that are buying companies in other countries is significantly higher than vice versa, contrary to what the opposition parties would have us believe.

Canada is uniquely positioned in the world among industrialized countries as we come out of this global slowdown, as indicated by the commentary from the IMF, the OECD, and the World Economic Forum. Virtually every knowledgeable foreign economic organization has pointed to Canada as a world leader coming out of this global slowdown.

[Business of Supply, April 28th, 2010]

Mr. Speaker, the hon. member attributes the results of a global economic slowdown to changes in the Investment Canada Act. I would note that as this global economic slowdown has affected countries around the world, commentators worldwide have pointed to Canada as a leader because of our approach in this regard.

I would also point out that the NDP ideology would seek to build a wall around Canada; nothing would get in, nothing would get out. Canadian companies would be unable to grow beyond our borders. Canadian companies would be unable to sell their products around the world.

The NDP protectionist ideology would be devastating to Canadians, devastating to Canadian companies, and devastating to Canadian consumers. Most importantly, it would be devastating to Canadian workers.

[Business of Supply, April 28th, 2010]

Mr. Speaker, let me begin by stating that foreign investment plays an important role in the Canadian economy.

Foreign investors bring with them knowledge, capabilities and technology that can increase the productivity, efficiency and competitiveness of Canadian firms. These investments frequently help Canadian-based companies to expand and create jobs for Canadians.

Recognizing the importance of investment flows into the country, Canada has a broad framework in place to promote trade and investment while at the same time protecting Canadian interests. It is important to note that investment flows both into and out of Canada. In fact Canadian international acquisitions exceeded the value of foreign acquisitions over the past several years.

According to one of Crosbie and Company's quarterly M & A reports, 204 Canadian companies acquired foreign companies in 2009 compared with 83 foreign companies acquiring Canadian firms.

In order to ensure that Canadian firms continue to have access to investment opportunities abroad, it is important for Canada to maintain a global investment climate that encourages the free flow of investment.

The Investment Canada Act provides a mechanism to review significant acquisitions of Canadian enterprises by non-Canadian companies to determine if they will be of net benefit to Canada. It also provides a mechanism to review investment that could be injurious to national security.

I would like to take this opportunity to describe how the Investment Canada Act works and how decisions are taken by the minister.

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.

My comments today will focus on only those investments that are the responsibility of the Minister of Industry. When a foreign investor proposes to acquire a Canadian business, the investor has certain responsibilities under the act.

Foreign investors must file either a notification or an application for review. An investor must file a notification when a new Canadian business is established or when there is an acquisition of control of a Canadian business with assets below the established threshold.

For an investment that is not subject to a net benefit review under the act, where an investor has provided the information required by the Investment Canada regulations, the investor has met its obligations under the act. No further action is required on the part of the investor. Information required under the regulations includes the names of the investor and the Canadian business, their respective addresses, a description of the business of the latter, and its level of assets.

Where a proposed investment is subject to a net benefit review under the act, the investor cannot implement the transaction without the approval of the minister responsible for the act. The investor must provide certain information as part of the filing of an application, including its plan for the Canadian business.

An acquisition is subject to review when the assets of the Canadian business to be acquired are equal to or above the thresholds established in the act. The threshold that applies to WTO members is adjusted each year by an amount equal to the change in the nominal gross domestic product. The threshold is $299 million for 2010. The threshold for cultural businesses remains at the level established in 1985. It is $5 million for direct acquisitions or $50 million for indirect acquisitions.

The act provides the minister an initial 45 days to complete the review of a proposed investment and to make a determination of net benefit. The minister can extend the review period if necessary by 30 days. The review period can be extended further if both the investor and the minister agree.

The Minister of Industry approves an application for review only where he is satisfied, based on the plans, undertakings and other representations of the investor, that the investment is likely to be of net benefit to Canada.

In making his determination of net benefit, the Minister of Industry 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 finally, the contribution of the investment to Canada's ability to compete in world markets.

As part of the review process, the investment review branch of Industry Canada consults with federal government departments with policy responsibility for the industrial sector involved in the proposed acquisition, with the Competition Bureau, and with all the provinces in which the Canadian business has substantial activities or assets. The purpose of the consultation is to engage sector specialists at both the federal and provincial level, to identify any policies that should be considered in the review and to obtain the views and concerns of the consulted parties relating to the acquisition.

Industry Canada's investment review branch relies on consulted parties to identify areas of concern for the sector and the specific Canadian business. Once the consulted parties have provided their input, discussions take place with the investor, and legally enforceable undertakings are discussed with the investor to address the concerns of the consulted parties.

Industry Canada's investment review branch staff also perform an independent analysis of the acquisition. To do so, they examine financial statements and annual reports for both the investor and the Canadian business. This information provides an indication of the strategic marketing, operating and financial strengths of each party and assists in the analysis of how the two companies fit together. In addition, the investor is frequently requested to provide additional information to make better understood the plans it has for the Canadian business.

In 2009, the investment review branch of Industry Canada received and processed 415 notifications. In addition, the Minister of Industry approved 22 applications for review. The motion before us asks that the government act immediately to protect the interests of Canadian workers and their communities and the strategic and long-term interests of the Canadian economy by:

improving its review of foreign takeovers that involve key Canadian resource, manufacturing, high tech and, potentially, telecommunications companies, by strengthening the Investment Canada Act by: (a) lowering the threshold for public review; (b) ensuring public hearings are held in affected communities; and (c) requiring publication of the reasons for decisions and conditions to be met by approved foreign owners.

As I have mentioned, under the Investment Canada Act, where an investment is subject to review under the act, the minister must approve an investor's application for review before an investor can implement an acquisition. The minister approves applications only where he is satisfied, based on the plans, undertakings and other representations of the investor, that the investment is likely to be of net benefit to Canada. Under the act there is a rigorous review process that involves careful analysis and extensive consultations with government departments and the provinces.

Let me take a moment at this time to explain the confidentiality provisions of the act. These provisions do not permit the minister to make comments about specific investments without the investor's prior agreement. Divulging confidential information outside of the narrow exceptions of the act is a criminal infraction.

Some of the members of the House have asked why the confidentiality provisions of this act are so strict. The confidentiality provisions of the act reflect the fact that information shared by investors with the government is often commercially sensitive information, which, if disclosed, could harm the competitive position of the investor and its partners, including, for instance, its suppliers.

Unless they are assured that their information will be protected by the government, investors will be reluctant to share information that is critical to the rigorous review process. To ensure that the minister can obtain the information he requires to make his net-benefit determination, very strict confidentiality provisions have been included in the Investment Canada Act, and these must be followed.

During the review process, investors generally provide plans and undertakings to support their position that investments are likely to be of net benefit to Canadians. All approved investments are subject to monitoring to determine the extent to which the plans and undertakings provided by the investor have been implemented.

An evaluation of the implementation of the plans and undertakings provided by the investor is ordinarily performed 18 months after the implementation of the investment. Additional evaluations are performed based on the duration of the plans and undertakings.

The act provides for remedies where a non-Canadian investor implements an investment on terms or conditions that vary materially from those contained in an application or where the investor has failed to comply with a written undertaking. The decision to take enforcement measures under the Investment Canada Act is based on the overall performance of an investor in implementing its plans and undertakings.

Decisions to take enforcement measures are made on a case-by-case basis by the minister, based on the specific circumstances of the transaction. The process for enforcing plans and undertakings provided by an investor during the review process includes seeking an order from a superior court to remedy any gap in the implementation of plans or undertakings.

The government has recently completed a review of the act, and has implemented amendments to ensure that the act will apply to the investments that are most important to the Canadian economy and that will increase the transparency of the act.

In July 2007, the government appointed the Competition Policy Review Panel, chaired by Red Wilson. As part of its mandate, the panel reviewed both the Investment Canada Act and the Competition Act. In June 2008, the panel released its final report, entitled “Compete to Win”, with recommendations to enhance Canada's competitive performance.

The panel concluded that Canada benefits from being open to the world and that attracting greater foreign investment is in Canada's interest. Accordingly, it concluded that the Investment Canada Act should be applied to fewer cases, where the market importance of the transaction is the greatest. To achieve this, it recommended, notably, that the threshold under the act be increased.

The panel also recommended measures to improve the transparency and accountability of the Investment Canada Act while recognizing the importance of preserving commercially sensitive information. Finally, the panel endorsed the creation of a new review mechanism for national security.

In March 2009, the government made a series of amendments to the Investment Canada Act that resulted in the adoption of the panel's core recommendations and conclusions. These amendments were by far the most important legislative changes to the Investment Canada Act since its adoption in 1985. The government recognizes that global markets have evolved and so too must our framework policy.

The amendments ensure that reviews of proposed investments will apply to those investments that are the most important to the Canadian economy and will continue to allow foreign investors to create jobs in Canada by investing here. These amendments also improve transparency in the administration of the act, so that Canadians and foreign investors alike can better understand the workings of the act and its objectives.

More specifically, the amendments reform the act by changing the basis for the general review threshold from the book value of the gross assets to enterprise value. Regulations are required to bring this change into force. Furthermore, the amendments reform the act by raising the general review threshold to $1 billion over a four-year period; it currently stands at $299 million in gross assets.

The amendments also eliminate the application of the lower review threshold in identified sectors, for example, transportation services, financial services, and the uranium production sectors.

The amendments require the minister to justify any decisions to disallow an investment, and allow the minister to disclose administrative information on the review process. Moreover, they require the publication of an annual report on the operations of the act and, finally, they authorize the government to review investments that impair or threaten to impair national security and, if necessary, to take appropriate action.

These amendments will help Canada attract more foreign investment, a key driver of growth, by improving Canada's access to know-how and technology, by enhancing Canadians' ability to innovate and reach global markets, and by continuing to employ Canadians throughout the country.

In conclusion, the act provides a mechanism for the review of significant investment proposals to determine whether they are of net benefit to Canada. The government has examined the act and has introduced amendments to ensure that it applies to the investments that are most important to the Canadian economy, and to improve the transparency of its administration.

The government also has enforcement measures at its disposal, which it can invoke where the minister was not satisfied that investors have fulfilled their obligations under the act.