Mr. Speaker, I would like to inform you that I am going to share my time with the member for Sudbury.
Canadian resources are above all for the benefit of Canadians. When we consider a case like the acquisition of Nexen by CNOOC, the Conservatives’ penchant for secrecy and control without accountability shows in everything they do. Canadians are losing confidence in our investments because we are not in a position to determine whether an acquisition is in their best interests.
The opposition motion debated in the House today is not necessarily asking for the acquisition of Nexen by CNOOC to be rejected without an appraisal of the situation. It is basically asking that the process leading to a decision be sound. This debate is about transparency and accountability.
It is essential to hold consultations and to clarify the net benefit review process to ensure that the interests of Canadians are truly protected. When the net benefit criteria are not clear, the decision becomes arbitrary. There is neither transparency nor accountability. Even investors are not reassured by this arbitrary process. Until the act is clarified, it is impossible to weigh Canada’s interest against foreign interests.
In 2010, even the Conservatives agreed that the “net benefit” concept should be defined more clearly in the act. The then minister of industry had promised to do so. As we in the House know, the Conservatives do not come through on their promises of transparency. This is not surprising to us. Without this essential clarification, the net benefit is at the mercy of the minister’s own definition. I sincerely believe that this definition is not one that Canadians would accept.
In 2007, the guidelines added by the Conservatives to the act specified among other things that the targeted corporations should pay attention to what senior officials have to say, appoint Canadians to the board of directors and list the corporation’s shares on a Canadian stock exchange. I am not about to disagree that these factors should be taken into account, but the true concerns of Canadians relate more to employment and the environment. As it happens, environmental concerns are missing from the process, and employment is given short shrift.
In the specific case of Nexen, CNOOC has not promised to keep value-added jobs in Canada or to create new jobs. Nor has it promised anything about improving environmental performance.
With regard to the environment, it is not just the lack of promises that is disturbing. The different trade agreements that the Conservatives negotiated without paying attention to the details could prevent us from effectively protecting the environment because they would make the Canadian government open to legal action by foreign companies if it legislates in a responsible manner.
Furthermore, there is a significant risk for our jobs, especially in the processing and refining sectors. Are the Chinese not interested in extracting oil here and refining it in China? I believe that would be in their best interest. In that case, high-quality jobs in Canada's processing sector will be lost. China's refining capacity is at 85%. There are no guarantees that China will not use Canadian crude for the remaining 15%. That is hardly a net benefit.
While the Conservatives' priority is to find out who will be on the board of directors, jobs and the environment are the priorities of Canadians and the NDP. We must also not forget national security, which has been discussed a great deal recently, and security of intellectual property.
The Canadian Security Intelligence Service, CSIS, issued a warning in its most recent report:
When foreign companies with ties to foreign intelligence agencies or hostile governments seek to acquire control over strategic sectors of the Canadian economy, it can represent a threat to Canadian security interests. The foreign entities might well exploit that control in an effort to facilitate illegal transfers of technology or to engage in other espionage and other foreign interference activities.
The People's Republic of China has a 64.45% stake in CNOOC and has a ministry of political and ideological affairs. In addition, China also has a party committee in the company. Better yet, the company president considers deepwater oil rigs to be its mobile national territory and a strategic weapon. All this seems to be consistent with the warnings that the Conservatives seem to be ignoring.
We must also consider that this acquisition is probably not an isolated event. China is making massive investments in natural resources abroad, which could have disastrous consequences.
For example, take China's investments in and purchases of agricultural land in Africa. The strategy is obvious: guarantee food security for China, which in turn weakens Africa's food security. It is vital that we prevent this type of phenomenon from taking place in Canada.
After making a few strategic purchases, China or any other foreign power could rapidly gain significant control of our natural resources. There is a definite risk that a precedent will be set. We are talking about the nationalization of our natural resources for the benefit of another nation. I believe this is a mistake.
The Conservatives will of course answer that investments in the economy are necessary, and on that we agree. Certainly, such investments help our economy. But while they want to have investments that are controlled outside Canada, I think the best way of promoting innovation and developing the Canadian economy is really to have Canadian investments.
In an article published in Canada Business entitled “Canadian business must invest more if Canada is to remain competitive”, journalist Hugh McKenna quoted a report prepared by Deloitte, “The Future of Productivity: Clear choices for a competitive Canada”. I took two points from that article that are being completely ignored by the Conservatives: first, the real problem with Canadian productivity is the lack of investment and capacity for expansion on the part of Canadian companies; second, the government should make the foreign investment review process more transparent.
Those positions reflect the concerns felt by Canadians. Unfortunately, the Conservatives do not seem to have the same concerns about real prosperity, jobs, the environment and the security of Canada.
They are even working against those principles by raising the threshold in the act for a transaction that is subject to the net benefit review. At present, the Investment Canada Act provides that transactions with a value of $330 million or over are to be reviewed by the Minister of Industry, but that threshold will shortly be raised to $1 billion or over. The government is clearly moving backwards when it comes to standing up for Canadian interests.
To conclude, I have to point out the perfect ironic illustration of how less than zealous the Conservatives are when it comes to standing up for Canadian interests. Although the Conservatives seem set on approving the Nexen purchase with no discussion, the acquisition of the agricultural corporation Viterra by Glencore, which the Conservatives had approved, is currently being subjected to careful scrutiny by China’s anti-monopoly agency. I find that interesting.
I repeat: as a general rule, in this debate, we should not be replacing one arbitrary approach with another.
The NDP is not calling for the deal to be simply rejected, but we want to be sure that thorough public consultations are held and transparent, accessible public hearings are organized on the issue of foreign ownership in the Canadian energy sector. We want to know what foreign governments are going to be doing in Canada, and obviously we want to clarify what the legislation says about the concept of “net benefit”.
I see my time is up. Thank you.