44th Parl. 1st Sess.
November 6, 2023 11:00AM
Madam Speaker, yes, my hon. colleague has rightly emphasized that our regime, as a general rule, has thresholds in place that allow us to screen investments coming in. In other instances, it is sectoral because there are various sectors of the economy that are vulnerable to falling into the wrong hands, if you will.
These have been ongoing changes. I made reference to changes that we made in 2021 and 2022. This does not mean that if we bring in some of these new provisions, they are necessarily replacing all of the old safeguards that were there previously.
Our intention has always been to have the gold standard when it comes to screening investments coming in. This will ensure that we will continue to lead the way in having a good, robust system in place, which does evolve as security threats around the world evolve.
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Madam Speaker, it is always a privilege to rise in the House.
Before I really dive into my speech on Bill C-34, I just want to acknowledge Marilyn Bouw, the president of the Springfield Agricultural Society, for hosting my wife and me at their annual banquet. She is a tremendous advocate and supporter of agricultural communities in her riding of Springfield and broader.
I also want to mention Mayor Myron Dyck from Niverville, Manitoba, who also hosted my wife and me this weekend, together with his wife Shari, at the Niverville Heritage Centre annual fundraising banquet. The Niverville Heritage Centre does a tremendous amount of good work in the community, especially supporting our vulnerable seniors.
I thank Niverville Heritage Centre very much.
The interesting thing about what came up this past weekend at both of those events was the issue of the carbon tax. Folks at both venues talked to me about the carbon tax vote that we had here earlier in the House today. They said, “How is it going to go, Mr. Falk? Is this a confidence vote? Will this actually bring us into an election?”
We know that the Liberals want to quadruple the carbon tax and we know that, already, Canadians right across the country are experiencing significant increases to the cost of living and affordability is top of mind for almost all Canadians.
They asked me—
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Madam Speaker, I rise on a point of order. I am struggling to find any kind of link between what the member is talking about and the bill that is before the House right now. We have had a number of opportunities to discuss the subject that he is trying to discuss but, right now, we are talking about this bill.
Perhaps you could encourage him to get back to the subject at hand.
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- Nov/6/23 4:26:41 p.m.
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There is a little flexibility during the speeches, of course. I remind members who are getting up to speak on bills before the House that it needs to be relevant to the bill. They should mention either the bill or what is in the bill.
The hon. member for Provencher.
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Madam Speaker, that is very good advice. I was paving the pathway to this bill on how this carbon tax is negatively impacting investment in Canada.
The Liberals today had an opportunity to reduce the cost of living for Canadians from coast to coast to coast and failed to do that. They were joined by the Bloc. The Bloc members had an opportunity to speak for Quebeckers to make sure their cost of living was also being reduced and they failed to do that.
The members for Winnipeg North, Winnipeg South, Winnipeg South Centre, Saint Boniface—Saint Vital, who are Liberal members, could have reduced the cost of home heating for their constituents, but voted against this motion to expand the carbon tax pause to all Canadians. It is very disappointing that their constituents cannot even count on them to represent them adequately here in the House.
Let me now dive headlong into my speech and carry on with that.
We have seen before where the current government subjects a bill to being discussed, even this critical one here, and this is something we should have seen long ago. It requires legislation of course on the whole issue of Invest in Canada, but this legislation presented by the government lands so far from what is needed, so far from the reality of the problem that it seeks to address, that it is really difficult to see a common-sense solution here. This is the kind of stuff we continually get from the Liberals. We see this on their approach to the environment, immigration, the economy, guns, drugs and the list goes on.
There is a common series of steps the Liberals go through when they encounter these various problems. First, they deny there is a problem. Once that stops working for them, then they start to blame the Conservatives. Then they start blaming Canadians. Finally, when they run of out people to blame, once the PM's wizards and the PMO finally recognize that something needs to be done before even the CBC starts dumping on them, then they put something like this forward. However, it takes all of those things to happen before the Liberal government takes steps to address real issues. When they do finally present something, it is unremarkable, as members will see later in my speech.
For years, the Communist dictatorship of Beijing has been taking advantage of Canadians, of our weak acquisition laws, Canadian industry and our proprietary technology. Why is that? Part of it seems to be the bizarre fascination that the Prime Minister has with China. We all remember his comment about admiring Beijing's basic dictatorship, though at the time few thought he was naive enough to believe that and throw open the doors to Beijing, but it turns out that he actually has that fascination.
When the former environment minister visited China in 2018, she too gushed over China's leadership on climate change and its ability to “scale like no other country”. In her address to Boston's Northeastern University this past May, the Deputy Prime Minister “said the fundamental question of our time is: 'Does capitalist democracy still work?'” I think it would be better if the minister were here working for Canadians, but that is what she said.
She stated:
That is the question being posed around kitchen tables, in my country and this one, as parents wonder if our children can count on capitalist democracy’s essential promise of a future more prosperous than our present.
These comments, of course, raise the spectre of what she considers a viable alternative. That would be China's basic dictatorship perhaps. To read between the lines, her thought process seems to be that Canada's current economic woes are not the result of her government's incompetent management, but rather the fault of capitalism and democracy.
As one journalist recently noted, if we are talking about what passes for capitalism and democracy in Justin Trudeau's Canada, not unlike those of China, where capitalism has come to be characterized by close—
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Madam Speaker, I rise on a point of order. This is sometimes what happens when members are just reading speeches that are given to them that are written by staffers who perhaps do not know the rules of the House, but the member just said the Prime Minister's name in the context of it being “the [Prime Minister]'s Canada”.
Perhaps the member should inform those who are writing his speeches how the rules of the House work so that this does not happen again.
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- Nov/6/23 4:32:02 p.m.
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I am sure the hon. member cannot prove for sure who has written the speech.
The hon. member mentioned the Prime Minister's name. I would ask him to please be careful and ensure that he is not mentioning the name of parliamentarians who sit in the House. I know that does slip from time to time and I think it is done on both sides of the House.
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Madam Speaker, I rise on a point of order. I would ask that you ask the member for Kingston and the Islands to withdraw his comment.
I know it is the practice on one side of the House to just read canned speeches, but I know this member, and I know he wrote that speech. I know he writes all his speeches, just as most of our members do.
I would ask the Speaker to kindly ask him to withdraw that comment, which was meant to put down one of my colleagues on this side of the House.
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- Nov/6/23 4:33:02 p.m.
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I have indicated that hon. members should be careful with what they put in their speeches, and they should also be careful when saying whether somebody has done something or has not done something.
I am not sure if the hon. deputy government House leader would like to rise to apologize for that. I understand he is not willing to do so.
I would ask all members to please be careful as it causes disorder in the House, which is not the way we want to function here.
The hon. member for Provencher.
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Madam Speaker, to carry on, in a so-called capitalist system where the Prime Minister picks the winners and the losers and stacks the deck to ensure a select few friends get rich while everyone else is pushed to become reliant on government for everything from housing to basic income, the general trend, and I believe the endgame of the government, will inevitably collapse.
Likewise, so would a democracy that has been left unprotected and consistently undermined by the actions of the Prime Minister and his friends in Beijing. Beijing had spies, scientists with ties to China's bioweapons program, in our National Microbiology Laboratory in Winnipeg, which is one of our most secure facilities. Now, they are nowhere to be found.
The Prime Minister took the former Speaker of the House, the person who sat in Madam Speaker's chair, to court and sued that person to prevent the truth about what was happening at the Winnipeg National Microbiology Lab with those Chinese spies from coming out.
There is hacking and espionage against Canadian infrastructure, academia and industry. The list goes on and on. It is always China. What has the government done so far? In eight years, what has the Liberal government done? It has done nothing up until today, unless of course we include cash for access with Chinese billionaires and donations to the Trudeau Foundation.
However, now the Liberals have a plan, which is Bill C-34. What is the solution government members have put forward? Are they proposing to ban Communist Chinese acquisitions of Canadian companies or to take China to the World Trade Organization? Would they expel Beijing-run spies and state police from Canada? No, they would not. Their solution is more government, more bureaucracy and specifically for more power concentrated in the minister. This would not be the Minister of Public Safety or the Minister of National Defence, but with the Minister of Innovation, Science and Industry. It is bizarre. One cannot make this stuff up.
In almost case with the government, it is the same minister who created the problem tasked with fixing the problem. In this case, we have the minister of industry, who I actually like. I wish him all the best in his leadership bid. In 2017, before his time, the minister of industry failed to request a full national security review of the acquisition of B.C.-based Norsat International and its subsidiary Sinclair Technologies by Hytera Communications, which is owned by the People's Republic of China.
Then, in December of 2022, under the former public safety minister, the RCMP awarded a contract to supply sensitive hardware for its communication systems to Sinclair Technologies, which was then owned by a Beijing company and major supporter to China's public security ministry. Then it was revealed, also in December of 2022, that since 2017, the CBSA had also been using communications equipment and technology from Hytera Communications.
Hytera has been charged with 21 counts of espionage in the United States and has been banned by President Biden from doing business in the U.S., but it has not been banned here in Canada, not under the Liberal government. How did the minister respond to these acquisitions? He thought it was cool.
Let us look at another example. In March 2021, the minister updated and enhanced guidelines for national security reviews for transactions involving critical minerals and state-owned enterprises, but in January 2022, he failed to follow his own guidelines when he fast-tracked the takeover of Canadian lithium company Neo Lithium Corp by, once again, Chinese state-owned Zijin Mining Group, without a national security review taking place.
Then, in November of 2022, the minister ordered three Chinese companies to divest their ownership of three critical mineral firms, but guess who he forgot to mention? It was Neo Lithium. The list goes on.
I am not sure what is more astounding: that it is always China with the Liberal government or that the minister can put forward this legislation with a straight face. How can he expect the House or Canadians to trust him to solve this problem when his own lack of oversight has been so instrumental in creating the problem?
As I wrap up, I will say that the member for Kingston and the Islands always asks whether there is nothing positive in the legislation, and if we cannot say one positive thing. Even he needs reassurance that the Liberals are not completely dropping the ball.
Therefore, I am happy to inform him and his—
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- Nov/6/23 4:38:58 p.m.
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The member's time is up. We will come to questions and comments in a moment, and he will be able to add his additional comments during that time.
Order. It is my duty pursuant to Standing Order 38 to inform the House that the questions to be raised tonight at the time of adjournment are as follows: the hon. member for Spadina—Fort York, Public Safety; the hon. member for Battle River—Crowfoot, Carbon Pricing; the hon. member for Nunavut, Indigenous Affairs.
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Madam Speaker, that was interesting to listen to. There was some real revisionist history there. The member opposite referenced political relationships with dictators, and I am going to pick up on that.
It is no secret that the member for Carleton has hitched his political wagon to former president Trump. We know of former president Trump's relationship with Putin and his affinity for the government in Russia, and we know that the member for Carleton has been eerily silent on his support for Ukraine.
Is that an indication of his lack of support? Can we chalk up the member's silence on his support for Ukraine to his relationship with former president Trump and, by extension, his relationship with Putin? Can the member explain that and connect the dots for us when it comes to relationships with dictators?
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Madam Speaker, the member asked a good question.
I ask why we continue to allow Chinese state-owned companies to invest in Canada when even President Biden, who we often consider as being at the far left or the extreme left, has banned Chinese state-owned companies from operating technology in the United States. The question really is why, here in Canada, are we not seeing the same thing?
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Uqaqtittiji. I can see some work has been done on this legislation and that there were amendments made at committee. I see an amendment to clause 7 regarding the review of proposed investments to be made by a foreign entity, and I see that this review would only happen as long as the minister had recommended it to the Governor in Council.
I wonder if the member agrees and if he could share with us whether he thinks this process is sufficient, given the great concerns he shared regarding reviews.
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Madam Speaker, I appreciate the member's honest, thorough, well-thought-out question.
This is something I raised in my speech, which is whether the responsibility for conducting the necessary reviews regarding protecting the integrity of our country from foreign influence and outside investment that would not promote the safety and security of Canadians should not be held by cabinet or, in other words, Governor in Council. It absolutely should be, but it only would if it were to get referenced there by the minister.
That is why, through this bill, a lot of the power would be shuffled over into the seat of one individual, whoever the minister of industry, science and trade would be. The member appropriately identified an area of concern here, which is that this should be a Governor in Council decision and not just a ministerial decision.
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Madam Speaker, I want to ask my colleague if he had anything he wanted to finish up with at the end of his speech. I am pretty sure my colleague would agree with me that, regardless of who the U.S. president is, Canada is in a much better trading relationship to have them as any ally with what is happening in China right now.
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Madam Speaker, the hon. member for Brandon—Souris does a tremendous job for his constituents in the western part of the province of Manitoba. They are very well represented. He operates with a lot of integrity and gives a lot of insight into all the issues being considered by the House. I want to commend him for the good work he is doing here.
In so far as answering the question goes, I will talk a little more about the negative impacts the carbon tax has had. It affects investment here in Canada, because it increases the cost of everything. It is not like GST, which is only applied to the end-user once. The carbon tax is applied to the producer, the transporter, the manufacturer, the transporter again, the distributor, the transporter again and finally the retail outlet, which then serves the consumer, Canadian constituents. Those are the people who pay quadruple in carbon taxes, and it is wrong.
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Madam Speaker, it is an honour to rise in this place to speak to Bill C-34, which has been before the House for some time. I must state my great regret that time allocation has been applied to it before any member of the Green Party has been allowed to speak to it.
People know that when someone rises on the government's side and says it has had 20 speakers, 20 witnesses and so on, it sounds exhaustive. However, the rules in this place are intended to allow a proper debate of every bill that involves all members with an interest in it. Members will know that I have long decried, as mentioned earlier in this debate, the use of written speeches. This allows more members to speak to a bill who have a strong interest or background in the subject matter.
I think in this case we have the reverse. We have a really important piece of legislation that got all the way through second reading without any speakers from my party, and then it got into committee, where we are not allowed to be members. Then amendments were made, and here we are at report stage already and I have a lot of concerns. Without further pause to reflect on my regret that this is the first time I have been given a speaking opportunity in this place, let me speak to the Investment Canada Act and to the revisions that are made in Bill C-34.
It is very important that we, in 2023, take a new lens and look at what we mean by foreign investments of concern and what that means for national security and national sovereignty. I am concerned that the bill leaves cabinet decision-making more as a discretionary matter and that there will not have to be a cabinet decision unless there is a recommendation from the minister.
Triggering a foreign investment review has never been easy in this country. Let me just reflect for a moment on two specific cases. I think one will be better with the changes made under Bill C-34, but I hate to say that, even at this late hour, I am not certain this bill would improve the situation on a more complicated matter.
Let me speak to the first one. It was a few years ago that a takeover was proposed for one of Canada's largest engineering firms, Aecon. It had gone quite far. It was reported in the business pages that Aecon was to be purchased, after being approved by Aecon shareholders, by a People's Republic of China company, CCCI. It was moving along without concern.
It was in 2018 that I was the first member of Parliament to raise on the floor of the House of Commons a concern: Did we not need a national security review before one of the largest engineering companies in Canada became the property of a company based in the People's Republic of China? It has been a particular concern of mine for some time because, back in the Harper years, a decision was taken by cabinet alone with no vote. I want to repeat that for new members of Parliament, as it will be shocking to them. We never had a vote in the House of Commons on the approval of the foreign investment promotion and protection agreement, otherwise known as a FIPA, between the People's Republic of China and Canada.
It gives corporations and state-owned enterprises from within the People's Republic of China superior rights, if they are a Canadian company, to complain of changes made by regulation, complain of court decisions or complain of any number of matters where a corporation feels that its expectation of profits has been somehow reduced. This originally emerged as an investor-state provision in chapter 11 of NAFTA back in the day when it was NAFTA. Ironically, this investor-state provision has been removed from CUSMA, but it has been transplanted into bilateral trade agreements. However, they are not even trade agreements, as in the case of the FIPA with China. There is no trade deal between the People's Republic of China and Canada. Thanks to former prime minister Stephen Harper, there are investment protections for corporations from the People's Republic of China that Canadian corporations cannot access.
Even worse, the FIPA with China keeps any complaints from the People's Republic of China or its state-owned enterprises completely secret. The complaint process is secret. We would only find out about it if it went to the end, to an arbitration. That would be reported.
I do not have enough time in the time I have to speak to Bill C-34 to fully explain why we must have a very different lens when looking at the takeover of Canadian enterprises by any foreign entity. If that foreign entity has the benefit of an investor protection agreement that gives a corporation superior rights to a domestic Canadian corporation, it is very concerning.
I think I had to raise it two or three times in the House before a few other MPs began to say that they were also concerned about Aecon, and in the end, the minister triggered a foreign national security review. It was turned down. The decision was made by the Government of Canada, I think appropriately, to stop the takeover of Aecon by a corporation in the People's Republic of China.
More complicated and recent is the takeover of virtually all of Canada's pulp and paper production by a corporation owned by one man. It is not a limited corporation. It does not appear on the stock exchanges of any country. The name of this corporation is Paper Excellence. It is owned by one human being, one sole person who is a billionaire from Indonesia.
Some of the media coverage, which thank goodness has been intensive, is quite belated. Basically, Paper Excellence had already bought up Domtar, already bought up Catalyst Paper and already bought up Resolute, and after purchasing Northern Pulp of Pictou, Nova Scotia, suddenly Paper Excellence, which has a registered headquarters in Vancouver but is no more Canadian than the Indonesian billionaire who owns it, has bought up virtually all of the pulp and paper processing across Canada.
This is alarming. Is it a national security threat? The question was never asked. No one really saw it coming. It was only seen through the media investigations subsequent to this Indonesian billionaire-owned enterprise called Paper Excellence becoming the owner of all the pulp and paper mills.
The acquisition of Resolute Forest Products had a major impact in Quebec. Many people, including members of the Bloc Québécois, are very concerned since Resolute is an important player in Quebec's pulp and paper industry.
It is also very important in British Columbia, where Catalyst Paper is based. The mill in Crofton and the mill in Powell River were purchased initially from Catalyst Paper and suddenly became owned by a very mysterious Indonesian billionaire. Should this have had a review? Media coverage has managed to unearth that the buying spree of Paper Excellence was likely, although we do not know for sure, financed by loans from the state investment bank of the People's Republic of China.
Do Paper Excellence mills have access to the FIPA with China to complain if we make changes in any way, like provincial changes in Quebec or British Columbia, where these mills are based? They would have access to the FIPA if they can make the case that they are operations of the People's Republic of China. We do not know if this investment is from the People's Republic of China.
Even with the changes made in Bill C-34, I am not reassured that we would have caught what was going on with Paper Excellence. Would we have had an opportunity to have a foreign investment review before this single Indonesian billionaire began buying up all our pulp and paper mills? I wish I had had an opportunity at committee. I wish I had had an opportunity to be in debate at second reading. I know the hon. member for Timmins—James Bay raised some of these issues at the time. He is also concerned about Paper Excellence.
With the time remaining, I will say I think it is unfortunate that we have time allocation now and these issues are rushed. It is unfortunate that we will not adequately debate the amendments that have come forward at report stage, such as the ones I have heard mentioned by the member for South Shore—St. Margarets. I close here and hope we have not missed too much.
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Madam Speaker, I certainly always enjoy listening to the comments from the member for Saanich—Gulf Islands.
She must admit, though, that she is aware of the fact that there are a lot of procedural games that go on in the House, which puts the government in a position that, in order to be able to do anything, unfortunately, the reality is that time allocation has to be brought in on certain bills. I think of the Canadian free trade agreement with Ukraine. Every time the bill is scheduled to come up, Conservatives put forward a concurrence motion that is preventing us from being able to let it. If we left it to the Conservatives to always dictate, and I know that Conservatives are heckling me right now and we are not even discussing that bill, we would never even get to the opportunity to pass that very important piece of legislation for Ukraine.
I am wondering whether she could at least acknowledge the fact that she understands the position we are in and that we have to do this from time to time.
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Madam Speaker, of course, I empathize, but I cannot understand.
I do not like our rules' being abused constantly to bring in forced closure on debate to speed things along. The hon. member for Kingston and the Islands will know that I think the solution lies in applying all of our rules. It is against our rules in this place, as it is against the rules of the Parliament of Westminster in the U.K., to read a written speech. If we did not have written speeches handed out to members, we would have fewer speeches about every bill, because fewer members of Parliament would be prepared to speak from rough notes without somebody else putting the words in their mouth. That would speed things up. I understand and I empathize, but I plead with the government not to keep doing this, because too many members are going to assume that this is the way it is done.
No matter who is sitting in the Prime Minister's chair, we continue to see democracy eroded in Parliament.
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