44th Parl. 1st Sess.
February 8, 2023 02:00PM
Madam Speaker, I want to ask my colleague whether the Conservatives would be willing to agree with the NDP that a good amendment to this bill would be to ensure including any investment in a Canadian company made by a foreign investor that goes through, and later that company is bought by a state-owned enterprise.
The example I gave was Anbang Insurance Group in British Columbia and Retirement Concepts. I think we need to make an amendment so we drop the requirements to zero so all those investment proposals would be examined by industry Canada.
96 words
All Topics
- Hear!
- Rabble!
- add
- star_border
- share
Madam Speaker, I do thank the member for that very good question. He has not yet provided us with a copy of the amendment that he would like to propose. We will look at it very carefully.
Quite frankly, it sounds like it makes sense. We, as Conservatives, strongly believe that the Investment Canada Act must be made more robust. I believe the member knows that we will be bringing forward our own amendments at committee to make sure we get that outcome. We do, in principle, support the legislation. It is just that it is a bill that is so lacking in substance when we have an opportunity now to get this right.
114 words
All Topics
- Hear!
- Rabble!
- add
- star_border
- share
Madam Speaker, I wonder if the member would comment on the following.
He has said that foreign investment has plummeted during the time of government, while at the same time acquisitions by state-owned and state-controlled enterprises have gone through without review. That has resulted in something that was best captured in last week's Globe and Mail article titled, “The growing threat of a low-wage future for Canadians”. I just want to quote two lines from that editorial.
The Organization for Economic Co-operation and Development ranks this country last in potential economic growth over the next 40 years.
If that OECD forecast becomes reality, the Canada of 2060 will be a relatively poorer country, falling further and further behind other advanced economies into second-tier status.
Would the member comment on that?
138 words
All Topics
- Hear!
- Rabble!
- add
- star_border
- share
Madam Speaker, I will start off by saying that I will be sharing my time.
I am pleased to appear before us today to speak in favour of Bill C-34, an act to amend the Investment Canada Act, and in particular, the context that led us to undertake these amendments.
Canadians know that our government will always act quickly and decisively to respond to threats to our national security. They also know that a nuanced approach is necessary to ensure that we do not impede the flow of capital that is so important to our continued prosperity.
Indeed, Canada remains a destination of choice for foreign investment. This investment helps businesses prosper and grow, creates well-paying jobs and ensures strong economic growth that benefits all Canadians. Canada has a long-standing reputation for welcoming foreign investment and a strong framework to promote trade while advancing Canadian interests. In fact, Canada has one of the earliest and most robust screening processes for FDI.
The Investment Canada Act was enacted 38 years ago in 1985. The act allowed the government to review foreign investments to ensure that these benefits exist, and it was updated in 2009 to include a framework for a national security review of foreign direct investments.
The world in which Canada now operates is increasingly characterized by the complexity of linkages between economic competition and geostrategic clashes. Globalization has brought new threats to Canada's national and economic security. By exploiting access routes to the Canadian economy through investment, potentially hostile foreign actors can appropriate technologies, data and infrastructure, which are critical to Canada's national security. We also know that some foreign states seek to inhibit Canada's economic growth and to exercise economic coercion against Canada.
Such activities pose a threat not only to Canada's national security but also to its long-term economic prosperity. Canada must have the tools and resources to protect its assets from economic threats to national security. The Investment Canada Act must therefore also continually adapt to these considerations. The complexity of these dynamics can be seen in the increased volume of activity under the act in recent years.
Indeed, there have been more national security reviews since 2020 than in an entire previous decade. The review process is also increasingly complex, as international transactions and ownership structures are also becoming more complicated. The proposed modernization of the Investment Canada Act is designed to make this review process more efficient and more transparent.
Economic-based threats to national security are an area of increasing concern not just for Canada but for our allies as well. Other international jurisdictions are moving in response to shifting geopolitical threats, either by amending or putting in place investment screening regimes. Our action is needed to bring Canada into greater alignment with our international partners and allies.
We will recall that the Investment Canada Act played an important role in Canada's response to the Russian invasion of Ukraine. As early as March 2022, we issued a policy statement that any investment controlled or influenced by the Russian state will also support a determination by the minister that there are reasonable grounds to believe that such an investment could be injurious to Canada's national security, regardless of its value.
This statement sends a clear message about our commitment to protecting Canada's economic security from unwanted investment. Moreover, Canada's Indo-Pacific strategy is clear that this region will play a critical role in Canada's future over the next half century.
The significant opportunities for economic growth in this region are also accompanied by challenges related to the objectives of certain world powers that do not share our democratic and liberal principles. We must respond to this reality in a number of ways, including in the way foreign investment is assessed.
In short, the Investment Canada Act plays a key role in protecting Canada's economic interests from hostile foreign actors. It is broad in scope and allows Canada to respond to changing threats that may arise from foreign investment while protecting Canada's openness to beneficial international investment.
The package of amendments proposed in this bill is designed to assure businesses and investors that Canada has a clear and predictable regulatory regime. Today, we are taking bold steps to modernize key aspects of the Investment Canada Act to ensure that our review regime continues to be effective, rigorous, transparent and flexible to adapt to a changing world.
I thank—
749 words
All Topics
- Hear!
- Rabble!
- add
- star_border
- share
- menumenu
- notificationsnotifications
- home
- mailmail
- searchsearch
