44th Parl. 1st Sess.
November 9, 2023 10:00AM
Madam Speaker, my thoughts go out to the Groupe TVA employees and their families following last week's catastrophic loss of 547 jobs. This is a heavy loss for my region, where 24 out of 30 jobs were wiped out. Obviously, we have high hopes that the federal government will be there to support these people. As we proposed yesterday, the Bloc Québécois is calling for a summit as well as a $50‑million emergency fund to support our local media, which are a vital part of our democracy and our communities.
Returning to today's topic and the debate on Bill C-34, I listened carefully to my colleague's speech and one thing jumped out at me. The government tabled this bill so that it could be passed as quickly as possible. However, the Conservatives, who typically advocate for the economy, moved a motion calling for all foreign state-owned companies not belonging to the Five Eyes countries to be excluded from the application of the act, an attempt to slow down foreign investment.
Since 40% of European investment in Canada takes place in Quebec, I want to give the example of Airbus, a French and German state-owned company that, as everyone knows, manufactures airplanes in Mirabel. If the Conservative Party's motion had been adopted in committee, it would have seriously hurt direct foreign investment in Quebec.
I would therefore like my colleague to tell me how she thinks she can block all proposed foreign investments from any country other than the Five Eyes. It is possible to have alliances with democratic states that we can trust.
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Madam Speaker, I have an important question for my colleague.
We proposed amendments, including one that would have made it possible to go back to the current act, since, under the new version, the Department of Public Safety and Emergency Preparedness and the Department of Industry could be the only two entities determining whether an investment would be good or not.
If both ministers are from western Canada, Ontario or the Maritimes, and neither is from Quebec, these two ministers would have absolute power to decide whether an investment is good for Canada without considering the interests of Quebec, assuming proposed investments in Quebec are involved. My colleague mentioned some examples in his speech.
Why did my colleague not support the amendment we presented?
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Madam Speaker, I really appreciate my colleague's work on the Standing Committee on Industry and Technology, especially his vigorous defence of Quebec's interests. I do want to recognize that. As an entrepreneur himself, he is aware of the requirements and problems that business owners can encounter. His business might not be a likely target for a foreign buyout right now, but who knows. Maybe one day, with globalization, there may be foreign interests that take over in Rivière‑du‑Loup.
The fact remains that the current law has significant limitations. Should the Conservatives form the next government, I hope they will very quickly table a bill that will address the concerns, particularly about lower thresholds. Protecting our strategic sectors is essential. Obviously, there is the whole issue of transparency.
What my colleague is asking me is this: If a minister is not from Quebec, will he have the same ability to defend Quebeckers? That is a perfectly legitimate concern. Quebec's economy is very different. It is built on strategic sectors that often differ from major Canadian sectors. Take aerospace, for example. Canada has no national aerospace policy, which is totally absurd. It results in untendered projects, such as the purchase of aircraft. Consequently, the Canadian government is not doing its job to protect the Quebec economy.
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Madam Speaker, I would like to think that Manitoba has a lot in common with Quebec and its industries, such as the aerospace and the pork industries. The other thing we share in common is the fact that we have incredible capabilities and potential.
Bill C-34 ensures there are better safeguards for companies, large or small, whether it is Hydro-Québec, Manitoba Hydro or the small company start-ups. Given the changes in technology and AI, our industries need to be protected from foreign investment. This bill modernizes that and brings us that much closer to providing a higher sense of comfort. I would ask if the member agrees.
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Madam Speaker, I will agree with my colleague from Winnipeg North that our provinces have something in common. I dream of the day when I can go to a Nordiques game in Winnipeg. There is a lot of sharing that we could do.
The economy is changing. I think the member for Winnipeg North would be welcome on the committee because the points he has raised would be very useful around the table. I would like to see him get out of the House sometimes, get his hands dirty, and present these amendments in committee.
I feel that the government has indeed done a diligent job, but within the limits imposed on us by the shackles of Bill C‑34. The law needed to be modernized to meet the realities of a new economy.
Right now, the Standing Committee on Industry and Technology is examining Bill C-27. I think everyone agrees on the fundamental aspect of data protection for all Quebeckers and Canadians, and especially for children. However, when it comes to developing AI and protecting our cultural sovereignty—and here I am thinking in particular of Quebec's cultural sovereignty, our French language and our accent, which CBC values so much—we definitely need to modernize this law and go even further. This is also important for protecting our start-ups and emerging companies that have patents and those that are working on and developing AI. We have some very painstaking work to do. I thank the government for its collaboration on Bill C-34.
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Mr. Speaker, I thank my colleague from Rosemont—La Petite‑Patrie for his comments, which are always cordial but sometimes force us to dig a little deeper.
I will answer his question by giving him an example. Strategic critical minerals are a key issue. North American Lithium, a Chinese-owned lithium mine in Abitibi—Témiscamingue went bankrupt. Investissement Québec had shares in this company, which was put back on the market. In the end, an Australian company took it over, mainly for export purposes, and established partnerships with Tesla, among others.
With regard to long-term strategic needs, it is absolutely critical that Quebec own this resource. Right now, when major investments are made, like the ones the federal government is making in Stellantis, GM and Northvolt, there is no guarantee that supplies will come from Quebec or Canadian supply chains. Will GM vehicles and others have lithium from Quebec or Canada in their batteries? There is no guarantee of that.
The purpose is precisely to consider the long term. The Parliamentary Budget Officer has shown that we can cut five to 20 years from government investment if we develop the downstream supply chain from the mine and bring processing plants to Abitibi-Témiscamingue, like Sayona did. I acknowledge and thank Sayona for doing so, but it is important to have a facility near the mine to process the minerals that are needed at every stage, in other words, from the anode, cathode, chemistry, cell and other steps to the battery and then the automobile. There are economic and environmental benefits.
To respond to the question and concern of my colleague, this needs to be done in Quebec, because that is where the value-added is developed and there is a long-term vision.
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Mr. Speaker, I congratulate my enthusiastic colleague. His speeches are always very lively and well researched. It is obvious that he really knows his stuff when it comes to anything related to innovation, especially the people who have expertise in his region, Abitibi—Témiscamingue.
I want to come back to the question asked earlier by my colleague from Montmagny—L'Islet—Kamouraska—Rivière-du-Loup. I was rather confused, even surprised, upon hearing his comments. He has been a member of the Canadian Parliament for a number of years and, all of a sudden, he is worried that having ministers from outside Quebec could put Quebec at a disadvantage, because economic interests could be concentrated outside Quebec. We in the Bloc Québécois have had the answer to this question for a very long time. For us, the only way to truly defend the interests of Quebec is to be independent.
I wonder if my colleague from Abitibi—Témiscamingue could share his thoughts on defending our head offices in Quebec and our economic interests, which are often at odds with the economic interests of the oil and gas sector in the rest of Canada.
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Mr. Speaker, I thank my colleague from Rimouski‑Neigette—Témiscouata—Les Basques for his excellent question.
I wish there were a reporter in the House to hear what a staunch defender I am of the interests of my region, Abitibi-Témiscamingue, just like my colleague from Abitibi—Baie-James—Nunavik—Eeyou.
Quebec sovereignty essentially boils down to three things. Obviously, one is the ability to collect our own taxes and reinvest them in Quebec's economic priorities, including the battery industry's transformation. Another is the ability to sign our own treaties, as a member. This would include environmental treaties, which the Conservatives are obviously going to brush aside. The last is to pass all our laws based on our national interests, like the Act respecting Investissement Québec.
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Mr. Speaker, I am very happy to rise here today once again to speak to Bill C-34, which would update the Investment Canada Act. I spoke to this bill on Monday. It is now Thursday and not much has happened in the interim. We did consider a report stage amendment and voted on it, an amendment that would have taken some of the powers vested in the minister in this new act and moved them to cabinet. That amendment was defeated, so we are basically back to where we were when it came out of committee at report stage. I will therefore be repeating some of my comments from Monday, naturally.
This act is designed to do two main things. It is designed to ensure that foreign investments in Canada have a net benefit for Canadians and that foreign investments are not detrimental to our national security.
As I said previously, many Canadians will know this act from its first iteration, back in the seventies, as the Foreign Investment Review Act. It was brought in at that time because there was a rash of foreign takeovers, predominantly American takeovers, of Canadian companies. American companies were moving in as the economy was booming in the fifties and sixties. There was money for these companies to expand. They moved north and started to buy up Canadian companies. I remember that at that time, to go way back, there was real concern in Canada about this trend of foreign companies taking over Canadian companies, sometimes moving their operations entirely out of the country, sometimes just keeping them as branch plants of larger multinationals.
The Foreign Investment Review Act was brought in then to deal with this situation. It reviewed these transactions as they took place, and the Foreign Investment Review Agency approved about 90% of them. Canadians are open to investment. We know that we need investment to grow our economy, but 10% of those applications were turned down by the Foreign Investment Review Agency in the seventies and early eighties. That brought criticism to the agency by both Liberals and Conservatives, who thought we should be open for investment and should not be turning down some of these applications.
In 1984, Brian Mulroney brought in this act, the Investment Canada Act, to replace the Foreign Investment Review Agency with Investment Canada, of course saying he wanted to welcome foreign investment. True to his word, under the Mulroney government, the new Investment Canada entity did not turn down any applications for foreign takeovers.
The Liberal governments that followed Mulroney's, those of Jean Chrétien and Paul Martin, had the same record, with not one application being blocked. The Harper government was a different story. Harper blocked the sale of British Columbia-based MacDonald, Dettwiler to the American company Alliance based on both financial benefits to Canadians and the critical technology argument.
On the other hand, in 2012, the Harper government allowed the $15-billion sale of Canadian oil company Nexen to the China National Offshore Oil Corporation, owned by the Chinese government, and the $6-billion sale of Progress Energy to Malaysia-based Petronas. Then, on the same day, the Harper government changed the Investment Canada Act to block state-owned foreign investments in Canadian oil and gas companies. It was a good thing but essentially closed the barn door after the horses had left.
Legislation regulating these foreign takeovers in Canada of Canadian companies has changed from time to time over the past few decades. Foreign investment trends have changed as well. The share of investments in Canada by the United States has declined over the past few decades, but it still leads the pack. It is still the main country, not surprisingly, dealing with foreign takeovers of Canadian companies because of its close proximity to us and the history of co-operation between our countries. It is followed by the Netherlands, the United Kingdom, Luxembourg, of all places, Switzerland, Japan, China, Germany, Brazil, France and Bermuda, although I assume, as I said on Monday, Bermuda and Luxembourg are there because that is where Canadian companies are sheltering their profits; they are not bringing investments from those countries. It is clear that we need to keep up with the times in regulating foreign investment, and Bill C-34 is another example of that.
Information and data are the new oil, and earlier versions of the Investment Canada Act were essentially blind to that. I have talked to numerous companies over the years, especially tech companies. At the natural resources committee and now at the international trade committee and the science and research committee, one story I have heard repeatedly from companies is that while small Canadian companies, especially tech companies, work hard to develop new technologies, say in hydrogen energy or AI advances, when it comes to expanding companies to get their products to market, they need investments. These companies develop technologies and do all the testing, and when they have a product that people want, they have to invest to expand their operations to get their products to market. We often call this stage the “valley of death” because so many companies fail at that.
In the Canadian tech ecosystem, we do not have big Canadian tech companies that can help invest in smaller companies, so too often the investment they attract is taken over by foreign companies from the United States, Europe or China. With those sales goes the intellectual property, the ideas behind that new technology, and the real core of the company's value disappears from Canada immediately.
The present version of the Canada Investment Act allows companies to report takeovers after the fact, so a foreign takeover could happen and then it is reported to Investment Canada. However, when that happens, for instance with a tech company takeover, we need some way of reviewing the takeover before the transfer of intellectual property happens.
Bill C-34 has a pre-implementation filing requirement for certain investments to give early visibility to situations where there is a risk that a foreign investor will gain access to sensitive assets or information immediately on closing a deal, because if critical intellectual property is involved, it is usually too late to stop the transfer of that information if it is done after the fact. It is not like the old days when the main value of a company was in the factories it owned or in the rights to natural resources, that sort of thing. This new pre-implementation filing could help put a stop to that, where necessary.
As an aside, on top of this, we really need to develop domestic measures to help develop and protect intellectual property here in Canada so that companies are better prepared when they get to that stage and can keep intellectual property in Canada, where it can be used to help grow our economy. Canada is the leader in many areas that are now very important in the world of technology, such as AI and, as I mentioned, the development of hydrogen energy and fusion. There are various technologies that we are the leader in, and we risk losing that leadership position if all of this intellectual property gradually leaks away.
What are some other things that would make this bill even better? First, the act should mandate the review of an acquisition by a state-owned enterprise of a company previously reviewed by the ICA. This refers to situations where a foreign company takes over a Canadian company and Investment Canada reviews it, finds the company is okay, as it looks like Canadian interests would be protected, and then okays it. After that happens, sometimes the foreign company is taken over by, say, a foreign state.
This has happened several times with Chinese companies, and I will talk about a couple of them. It is a real concern. I mentioned Monday the story of a company called Retirement Concepts, which owns and operates seniors residences in British Columbia, Alberta and Quebec. These are long-term care homes taking care of our seniors. I have told the tragic story of a family's loss of both parents to inadequate care in the Summerland Seniors Village, which is one of the Retirement Concepts care homes in B.C. that is very close to where I live. Suffice it to say that Retirement Concepts has a checkered history of investigations for its operations.
Even after that, in 2016, Chinese insurance giant Anbang, then a privately held company, bought Retirement Concepts. The transaction was reviewed and okayed by Investment Canada, but less than a year after that purchase was okayed, the Chinese government seized the Anbang company and jailed its chairman for fraud. Perhaps it knew something the Canadian government had missed when that review was carried out.
Suddenly, we have the Chinese government owning a company that is one of the largest providers of long-term care in Canada, and certainly the largest in British Columbia. Not only is it one of the largest providers of long-term care for our seniors, taking care of our mothers, fathers, grandfathers and grandmothers, but it is known to provide very poor care for seniors in many situations. In fact, in 2020, the British Columbia government had to seize management control of four care homes run by Retirement Concepts because of continuing problems of poor care. It returned that control just over a year later, but it is an indication of the lack of priority Retirement Concepts has placed on the care of seniors.
At present, I do not see any direct provisions in the ICA that would allow Investment Canada or the minister to review the subsequent acquisition by a state-owned enterprise of an ICA-approved takeover or merger by a foreign private company. We have to change this.
The NDP put forward an amendment that would allow for the review of a takeover by a state-owned enterprise of a previously approved acquisition of a Canadian firm. This could be done by establishing the power to require a mandatory divestment of all Canadian assets by entities in these specific circumstances. This is an example of where we could and should take a big step in that direction.
I have been told the NDP amendment to fix this was ruled out of order because the government claimed it now has the power to enforce the divestment of any state-owned purchase. If that is the case, then it should act on Retirement Concepts without delay. This would not only take the Chinese government out of the business of taking care of our seniors, but would be a step toward taking all for-profit enterprises out of seniors care. There is not place for profit in our health care system, and that includes seniors care.
Anbang also features in another cautionary tale about foreign takeovers in Canada, one that highlights the risk of exposing Canadians' privacy and digital rights. This was again in 2016. Anbang was very busy in 2016 buying up Canadian companies. The Chinese company Bluesky Hotels took over InnVest, a Canadian real estate company that invests in hotels and owns over 100, in a deal worth $2.1 billion. It was the biggest owner of Canadian hotels.
It is alleged that Bluesky is just a front for Anbang, because that company initially wanted to acquire InnVest, and the executive in charge of Bluesky is a former employee of Anbang. However, Investment Canada reviewed and approved the takeover. As I mentioned, a few months later, Anbang was seized by the Chinese government.
This development has raised significant concerns regarding privacy issues, among other things. China's Ministry of State Security was reportedly behind the massive cyber-attack against the Marriott hotel chain, compromising the personal information of 500 million guests. This has heightened the concerns of the employees and guests of InnVest hotels. Therefore, we need to amend the Investment Canada Act to allow for a privacy protection review.
Another factor to consider in investment reviews is preventing publicly funded research and development from leaving the country, resulting in the loss of jobs and, basically, the theft of taxpayer dollars. A company called Nemak received $3 million from the government's automotive supplier innovation program. However, in 2020, Nemak closed its plant in Windsor, where those funds had been used to create new products for General Motors, and transferred the technology and those jobs to its operations in Mexico.
An NDP amendment passed in committee would allow for the review of a foreign takeover, which would consider intellectual property that was developed with funding from the federal government and issue remedies to retain the benefits in Canada. Therefore, a situation such as that of Nemak would not happen again. The foreign investment review would now also include the effect of the investment on the use and protection of personal information of Canadians. This would help prevent such situations as the one we saw with Bluesky and Anbang. The federal and provincial industrial, cultural and economic policies affected by foreign investment would now be included in the review as well.
I will conclude by running through some of the amendments that were passed at committee that strengthened the bill or, at least, changed it.
One amendment was to allow the investment made by a foreign entity, especially state-owned enterprises, to be fully reviewable, regardless of the size of the investment. Before, there was a lower limit that would trigger a review. In addition, in clause 8, there was the NDP amendment, which I mentioned, that would trigger a review on a takeover of a company by a foreign company that would see the loss of intellectual property and technology that had been funded by the federal government.
There is an amendment that would expand the investment review to include partial investments by foreign entities; another amendment would include a non-Canadian who has been convicted of an offence involving corruption as part of the investment review process. Hopefully, if they found out that the head of a company such as Anbang was charged with fraud, that would trigger a review right away and probably result in the cancellation of that transaction.
There is another amendment to impose interim conditions on both the foreign entity and the target Canadian business during the review process, as long as national security risks are not increased. Another amendment that involves national security instructs the minister to provide copies of any order concerning a foreign investment review to the National Security and Intelligence Committee of Parliamentarians and the National Security and Intelligence Review Agency.
I will finish by saying that, in this new world where ideas and data are more valuable than the natural resources we have so long relied on, we need a new regulatory framework to protect our industries, our workers and our companies.
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Mr. Speaker, what has been done is that the authority has been taken away from cabinet. It would rely on one minister. That minister could come from Quebec. That minister might come from who knows where in the country. Obviously that one minister might have a bias toward maybe his or her own riding or province. That is one reason we are a little upset with this. It has to go through cabinet. The more eyes that see this, the better. Only having one set of eyes looking at it is a major concern I see in Bill C-34.
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Mr. Speaker, this is not about Quebec; this is about everybody in the country. I know he represents Quebec, being a Bloc member, but I will give one example from my province of Saskatchewan.
There have been $18 billion invested in the Jansen potash mine. It is the largest investment in the history of Saskatchewan. It is done by BHP Biliton out of Australia. It had the first phase, which is $12 billion, and it just announced another $6 billion. This is the kind of investment we need and can work with from this company from Australia, which will be headquartered eventually in Saskatoon.
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- Nov/9/23 2:15:50 p.m.
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Mr. Speaker, what a season in the life of Kevin Lambert. Shortlisted for a Prix Goncourt, winner of a Prix Décembre and now, following in the footsteps of Marie-Claire Blais, who incidentally was an inspiration for his latest novel, young writer Kevin Lambert has won the prestigious Prix Médicis, 57 years after his muse.
This is the third time a Quebecker has won the Prix Médicis, following Marie-Claire Blais in 1966 and Dany Laferrière in 2009, and it is a good sign for our literature. I invite people to visit a bookstore and pick up Que notre joie demeure. If that title is not available, they can try Querelle de Roberval or Tu aimeras ce que tu as tué. If those are not available either, people should buy any Quebec book. Our literature is amazing, wacky and creative, and it transports the reader to unsuspected places.
I want to congratulate Kevin Lambert. I want to thank him for making Quebec culture shine and for being a unique voice. I want to thank him for the hours of joy, awe and surprise his pages provide. What a season in the life of Kevin Lambert.
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- Nov/9/23 2:26:13 p.m.
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Mr. Speaker, premiers François Legault and Doug Ford released a public statement calling for an open competition to replace the Aurora aircraft. That is all they are asking for, an open competition. The Liberals need to end their policies that are hurting Quebec and the aerospace industry. They have no business offering $9 billion without a bidding process to Boeing instead of Bombardier. They have no business giving Quebeckers' money to the Americans without a competition. Liberal policies are harmful for Quebec, period.
When will the Liberals launch a competition?
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- Nov/9/23 2:26:56 p.m.
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Mr. Speaker, I thank my colleague for taking the time to ask that very important question.
This gives me an opportunity to say how important the aerospace industry is in Quebec and across the country. It contributes nearly $25 billion to the GDP every year and provides more than 200,000 aerospace jobs across the country, including, obviously, at every supplier in the huge supply chain. That is why we have the opportunity to continue to support it, and we will have the opportunity to continue to do so over the coming years.
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- Nov/9/23 2:27:30 p.m.
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Mr. Speaker, Bombardier is not asking for charity; it simply wants to be allowed to compete. Even that is too much for the Liberals. For the oil companies out west or the auto industry in Ontario, the Liberals are there. For Quebec and the aerospace industry, they are there too, but only to get in the way. They generously hand out taxpayer money to the Americans, to keep Americans working, but not Quebeckers.
The Minister of Innovation, Science and Industry is a Quebecker. When will he stand up for Quebec, bang his fist on the table and launch a competition?
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- Nov/9/23 2:28:13 p.m.
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Mr. Speaker, I thank my colleague for pointing out the amazing work that the Minister of Innovation, Science and Industry and all the other ministers from Quebec accomplish for Quebeckers every day. One example that I am sure he knows about is the Davie shipyard, which is very close to my riding. In March 2023, it became part of Canada's new national shipbuilding strategy, all because of the effective leadership of Liberal members from Quebec over the past few years.
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- Nov/9/23 3:00:15 p.m.
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Mr. Speaker, sadly, what my colleague is saying in the House is again false. Since we took office, wind power production in Canada has increased by 60%. The GM, Stellantis, Volkswagen and Northvolt projects are all projects that the Conservative Party opposes. They also oppose battery manufacturing in Quebec and the investments in Ontario.
We are here to create a sustainable economy for generations of Canadians while fighting climate change, unlike the Conservatives, who have no plan for the economy, no plan for fighting climate change, and no plan for affordability.
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- Nov/9/23 3:18:46 p.m.
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Mr. Speaker, there have been discussions among the parties, and if you seek it, I believe you will find unanimous consent to adopt the following motion:
That the House salutes Bernard Lemaire's immense contribution to the development of the Quebec business community and the green economy in Quebec, Canada and around the world, and offer its condolences to his family and loved ones.
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