Improving Investment Canada Act will improve the lives of Canadians
From Carol Hughes, NDP MP Algoma-Manitoulin-Kapuskasing
Algoma-Manitoulin-Kapuskasing MP Carol Hughes
The recent government decision to put the brakes on the hostile takeover of Potash Corp of Saskatchewan is a welcome development but does not change the need to overhaul Canada’s foreign investment regulations. It is important to remember that BHP was given thirty days to amend their proposal and there are no guarantees the government will continue to protect this important Canadian resource.
Canada is standing at a crossroad and the government needs to decide whether the country will chart its own course or be a branch-plant for foreign corporate entities like the Australian multinational, BHP.
Canadians are seeing more and more foreign ownership of natural resources and important pieces of our industry. The fire sale of Canada does not make a lot of sense to relinquish domestic control and place blind-faith in foreign investors who, naturally, are pre-occupied with the bottom line.
Northern Ontario residents are all too familiar with the phenomenon. We watched Essar buy Algoma Steel, Vale buy Inco and Xstrata take over Falconbridge. Northern Ontario is under siege and our best assets have been the first to go.
Everyone saw what can happen with foreign owners who are not committed to their new communities during the long and bitter strike in Sudbury. When Vale flexed its muscles and ground the workers down during a year-long battle, the outcome changed the culture in that workplace and the communities that depend on it, forever.
The culture has changed because new hires face an uncertain future. They saw those before them look forward to secure and reasonable pensions. They were able to buy houses, buy camps, or do things like take trips—secure in the future they were building with their hard work. The person who gets hired-on next will not be able to count on a secure and reasonable pension. That doubt will force them to limit their expectations and accept that the fruits of their labour will not be as abundant as the generation that went before them.
The NDP motion on the Investment Canada Act, that parliament debated in early November, is a good place to start changing the expectations placed on foreign owners. The motion called on the government to amend the Investment Canada Act, making it more transparent and placing a priority on the interests of Canadians.
The public needs to know about the conditions attached to any takeover and know the government will demand they be honoured. The public – especially those directly affected by foreign takeovers – need to be part of the process and should be able to address any hearings into foreign bids and decide which witnesses should be considered. The “net benefit’ of foreign capital should be something that is defined and spelt out.
If the government can ensure the Investment Canada Act is working to encourage foreign investment that will improve our nation with new jobs, Canadian based research and sustainable economic development, then—and only then—can they say we have an Act that truly takes care of Canadians first.
