44th Parl. 1st Sess.
February 8, 2023 02:00PM
Mr. Speaker, I rise today to speak to Bill C‑34, an act to amend the Investment Canada Act.
Today, our government is proposing important amendments to modernize this legislation. We will never hesitate to act swiftly and decisively when there is a threat to our national security, and these amendments are at the heart of that effort.
The purpose of this bill is to modernize the Investment Canada Act. The proposed amendments will help make Canada more agile in addressing any threats that may arise from foreign investment, thereby maintaining Canada's position as a top destination for doing business.
Today I want to talk specifically about increasing foreign investment across the entire economy and in certain key sectors of Canada's economy over the past few years. More than ever, we know and recognize the importance of ensuring that we are doing everything we can to promote and foster a strong, innovative green economy. A clear and predictable regulatory regime in Canada is essential for businesses and investors.
As we know, Canada is one of the best places in the world to do business. Businesses that invest here benefit from favourable economic conditions, a stable political climate, safe infrastructure and an innovation-friendly environment. Canada's advantageous position makes companies that do business here more competitive and increases prosperity for all Canadians.
Over the past few years, more and more foreign investors have chosen Canada for its business-friendly environment. The flow of foreign direct investment in Canada has nearly doubled over the past five years.
I will be sharing my time with my hon. colleague and esteemed friend from Halifax.
According to the United Nations, in 2021, Canada had the second-largest ratio of foreign direct investment stock to GDP among G20 countries. However, this increase in the volume of foreign investment also comes with certain risks. For example, the number of investments reviewed under the Investment Canada Act also doubled over the past five years. There are also more and more investments related to sensitive technologies, critical minerals and sensitive information.
It is also important to point out the recent increase in national security reviews under the Investment Canada Act. There have been more national security reviews since 2020 than in the previous 10 years. This upward trend is expected to continue, given that Canada is an attractive destination for foreign investors.
The reality is that today's geopolitical dynamic is evolving quickly. Hostile actors could seek to disrupt Canada's economic security through our open market economy. Threats to Canada are changing all the time, and the government must ensure that Canada's foreign investment review regime strikes a good balance between promoting foreign direct investment and protecting Canada's interests and security.
We are all proud that Canada is an open economy and a trading nation. Our country is one of the most attractive destinations for the foreign investments that are necessary to our economic prosperity. In order to ensure that Canada remains an attractive destination for foreign investment, we must have a clear and predictable regulatory regime. That is why this new bill, which modernizes Canada's foreign investment review regime by amending the Investment Canada Act, or ICA, is so important.
The amendments to the ICA will make the investment review process more effective and transparent, while ensuring that the interests and security of all Canadians are better protected. This new Bill C-34 represents the most significant update of the Investment Canada Act since 2009.
Together, these legislative amendments will help ensure that Canada is able to enjoy the economic benefits of foreign investments in all sectors, while strengthening its ability to act quickly and decisively to defend against threats to our national and economic security.
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Madam Speaker, what I would say is that the direction of the bill is so important. I have risen many times in the House to talk about corporate concentration and foreign ownership. Especially, when foreign owners attempt to purchase an asset in Canada, whether it is a holding company, an operating company or straight asset, and they are backed by, say, a fund that is backed by the government, we need to have the tools and resources to block those types of acquisitions.
If this is going on that track, the bill will hopefully be sent to committee for further studies, further recommendations and more in-depth questions.
I appreciate the hon. member's question. I share those concerns.
We need to make sure that we protect our assets and our companies from national security threats from wherever they may arise throughout the world.
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Madam Speaker, I am actually an economist by training, but I have about half my accounting designation as well, along with my CFA charter. Therefore, I am well versed on the finance issues.
I will say that on any sort of net benefit test, the test should not be on the value of the transaction. It should actually be, in my opinion, on the strategic asset that is being looked at or being purchased by a foreign entity or an entity that we would consider injurious to Canada's national security interests and national economic interests.
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Madam Speaker, the care of our seniors in long-term care facilities throughout this country, whoever they may be owned by, is of paramount concern to me and the residents of my riding, as is making sure that we maintain that commitment and promise to take care of our seniors at whatever age they are, so they can have a secure and dignified retirement. That is a solemn promise I made to my constituents. We need to uphold that promise.
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