44th Parl. 1st Sess.
February 8, 2023 02:00PM
- Feb/8/23 2:51:18 p.m.
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Mr. Speaker, in our last budget, we moved forward with historic investments to support people buying their homes, whether it is by moving forward to eliminate some of the predatory practices in the real estate market, moving forward with $4 billion for municipalities to accelerate the construction of new homes to create more opportunities for buyers and renters, or moving forward with a tax-free savings account for first-time homebuyers to help them buy their own homes. We know there is much more to do and we are going to continue doing it by working with all parliamentarians.
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- Feb/8/23 3:09:04 p.m.
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Mr. Speaker, over the past years, we have made significant investments to support Canadians, not only through the pandemic but also in the years before it, when we were investing and creating jobs. We were lifting Canadians out of poverty and preparing for a clean-energy future, which Canadians know is around the corner.
We will continue to be there to support Canadians, whether it is with rental investments, with dental care or by doubling the GST rebate for low- and middle-income Canadians. We are going to continue to be there to invest in and support Canadians. Unfortunately, the Conservatives continue to push for cuts and austerity.
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Madam Speaker, I am pleased to rise today to speak on behalf of the residents of Davenport in support of Bill C-34, an act to amend the Investment Canada Act.
The Investment Canada Act, for those who may not know, is designed to encourage investment, economic growth and employment in Canada. It is a very important act for our federal government, because as we continue to try to create a stronger culture of innovation in Canada, as our economy moves increasingly from tangible to intangible or non-physical assets, as intellectual property becomes more important, and as we work to define the freedom to operate rules in Canada, acts like the Investment Canada Act are very important.
It is also an act that provides mechanisms to review foreign investments in Canada to ensure that foreign investment is a net benefit to Canada and does not harm national security. The rules in the act are established to provide investor certainty while giving Canada the ability to block individual investments under specific circumstances. This act is critical to ensuring a prosperous economic future for Canada and to guiding the right type of investments in our country.
Let us review some of the key changes to the Investment Canada Act that are being proposed by Bill C-34. It is not first time we have made changes to this act, but it is probably the largest set of amendments we have proposed since 2009.
The first thing the bill would do is to introduce a preimplementation filing requirement for specific investments. This would give the Canadian government more tools to review any proposed investments in sensitive business sectors.
It would also give authority to our Minister of Innovation, Science and Industry, in consultation with our Minister of Public Safety, to order further national security reviews of investments.
It would update penalties to strengthen deterrence of any behaviours we may not want.
It would introduce the authority for the Minister of Industry, again in consultation with the Minister of Public Safety, to impose interim conditions on an investment to reduce the risk of national security injury taking place during the course of the review itself, such as through the possible transfer of assets, intellectual property or trade secrets before the review is complete.
The bill would provide greater flexibility in mitigating national security risks by allowing the Minister of Innovation, Science and Industry, in collaboration with the Minister of Public Safety, to impose binding undertakings on investors. These undertakings would have to demonstrate that they adequately mitigate the national security risk that would arise from the investment in question.
Finally, the bill would allow Canada to share case-specific information with international counterparts to help protect common security interests.
The Investment Canada Act not only sets out the rules that would encourage more investment and trade in Canada, but also includes a number of measures that would serve to protect any foreign-made investments in Canada as well.
The economy is changing, the global trade and investment environment is changing, and so must our rules, legislation and regulations change. This would ensure that Canada is able to attract the best foreign investments and trade that would encourage economic growth, innovation and employment opportunities in Canada while also protecting Canada's national security and interests as they relate to trade and foreign investments.
As I mentioned earlier, this is not the first time that our Minister of Innovation, Science and Industry has updated the Investment Canada Act. He has done so at least three times in the last couple of years. The first time, in March 2021, he updated the national security guidelines in light of the then-evolving national security concerns to include investments involving sensitive personal data, sensitive technologies and critical minerals, as well as investments by state-owned or state-influenced investors.
The second time, we adjusted our federal government act to begin in February 2022, when Russia began its unprovoked and illegal attacks against Ukraine, creating an environment of heightened national security and economic risk. At that time, we put out a policy advising clearly that any investment with ties to Russia would only be found to be of net benefit to Canada on an exceptional basis. Moreover, any foreign investments with ties to the Russian state would also be viewed as potentially harmful to Canada's national security.
Finally, the third time we updated the Investment Canada Act was when the federal government announced a new policy related to foreign investment in Canadian critical mineral sectors. The policy advised that any investment in the critical mineral sector by state-influenced investors would only be approved as being a net benefit to Canada on an exceptional basis. Then we took quick action to block transactions that would be injurious to Canada's national security, and the government ordered the divestiture of investments by three foreign companies in Canadian critical mineral companies.
This announcement was a change in procedure, and it is also part of our efforts to modernize and improve the administration of Canada's investment review regime. Despite previously having the authority to announce decisions of this nature, the Government of Canada had traditionally not done so.
Again, it is not the first time updating the Investment Canada Act. Indeed, this bill is the latest in a series of actions our government has taken to ensure that we have the right tools and flexibility to protect Canada's national security interests. In turn, I believe that this would ensure an investment climate in Canada that is positive for economic growth both now and in the future.
Let me take a moment to relay some of the great investments we have already made in the area of innovation, science and technology with an eye to the future. For me, these are the types of investments that absolutely set Canada up for success both now and in the future.
In late January, the Minister of Innovation, Science and Industry announced an investment of $100 million through the strategic—
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Madam Speaker, I was highlighting some of the great investments we have already made, which are innovative and very much set Canada and Canadians up for success.
At the end of January, the Minister of Innovation, Science and Industry announced an investment of $100 million through the strategic innovation fund to support Saskatchewan's BHP's $7.5-billion project to develop its world-leading, low-emissions potash fund. To me, this innovation is one of the many investments we are making that are going to help make sure we will be reaching our net-zero targets by 2050.
In mid-January, our Minister of Innovation, Science and Industry announced the launch of Canada's national quantum strategy, which will shape the future of quantum technologies in Canada and help create thousands of jobs. It is an investment of $360 million, and the strategy will amplify Canada's existing quantum research and grow quantum technologies, companies and talent.
Here are another couple of other things I am really proud that we have done.
Our Minister of Innovation has also signed MOUs with Volkswagen to investigate opportunities for Canada to contribute to Volkswagen's global and regional battery supply chains, which will be of mutual benefit to both of our countries and will advance our respective EV and energy agendas. Another great MOU I want to point out is the one we signed with Mercedes-Benz to look at opportunities to promote co-operation and to explore ways to advance opportunities across Canada's electric vehicle supply chain, including, but not limited to, securing sustainable sources of raw materials moving forward.
I will mention one more thing I am very proud of.
In 2019, we set up the innovation asset collective, which is a $30-million pilot that very much helps Canadian clean-tech companies harness the power of IP to maximize the value of their intangible assets and set the stage—
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Madam Speaker, I would like to thank the member for her interesting speech. What is unfortunate is that there is a major problem in Bill C‑34. I do not understand why the government has not addressed it.
It had the opportunity to modernize the Investment Canada Act. It addressed national security. That is a good thing. However, there is another aspect, the net benefit review, which has an extremely high threshold. At this time, the threshold for the review of an investment is between $1.3 billion and $9 billion.
Does my colleague not find this threshold to be too high, and that it makes no sense to not examine investments that fall below that very high threshold?
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Madam Speaker, as I mentioned before, the Investment Canada Act provides for net benefit and national security reviews of foreign investments in Canada. We have proposed a number of changes in this particular act. Assuming the bill passes second reading in the House and goes to committee, there will be many opportunities to consider amendments that might strengthen it.
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Madam Speaker, the member opposite is pretty much telling us that they are going to modernize Bill C-34, that it is a good thing and that we should be pleased.
I am pleased that Bill C‑34 will be updated somewhat; what is sad is that that requires rigour. The problem is that there is no rigour.
Is there a way to come up with a more rigorous bill, one that would require rigour? That is what I would find more interesting and make me happier.
Let us look at an example. In 2021-22, there were 1,255 notices of foreign investment. That is a lot. How many were examined? How many were reviewed?
Not even 1% of investments were reviewed. That is absolutely crazy, but that is what the government considers to be rigorous. It approves everything and has lost control.
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Madam Speaker, I thank my colleague for her question. I touched on this subject briefly in my speech. People with foreign interests or economic interests coming to invest here do not always have our social investments at heart.
She mentioned seniors' homes. I fully agree that we need to pay close attention in modernizing the bill, and we must consider that the interests of foreign investors will not always align with ours.
She makes an interesting point. I gave the example of land grabs. Everyone here needs to eat, just like the general population. It is the same thing. The Bloc Québécois will certainly be able to work with my colleague.
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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, if I am not mistaken, the member across the way is an accountant by training. So am I, as it happens.
He has been an MP in the Liberal government for a few years now. If I am not mistaken, he, like me, was elected in 2015. In 2015, the net benefit review threshold was $369 million. Today, the threshold is $1.9 billion. There is quite a gap between $1.9 billion and $369 million. However, it was the member's government that raised the threshold year after year. In any case, it does not even review 1% of investments.
My question is the following. As an accountant, does he think that $1.9 billion is pocket change?
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Madam Speaker, it is a privilege to rise today to speak to Bill C-34, legislation that represents the most significant update to the Investment Canada Act since 2009. In those 15 years, thanks to Canadian hard work and ingenuity and, for the last seven and a half years, a government that has been willing to invest in our future, Canada has become increasingly attractive to foreign investors who want what Canada has to offer, be that clean technologies, critical minerals, batteries or our skilled workforce.
I have the great pleasure of serving as the Parliamentary Secretary to the Minister of Innovation, Science and Industry. In this role, I have seen first-hand how Canadian innovators are getting attention from investors around the world.
I also have the great privilege of being the member of Parliament for Halifax, and in the riding of Halifax we are proud to claim Dalhousie University professor Jeff Dahn as one of our own. Dr. Dahn is one of the world's leading researchers on lithium ion batteries, whose work has received significant industry investment, including from Tesla.
Nova Scotia is also home to Novonix, known for producing the best and most accurate lithium ion battery testing technology in the world. I was present at the grand opening of its new facility in Dartmouth just last November, which was made possible with help from our government.
Another Nova Scotia example, CarbonCure Technologies, is the winner of the 2021 Carbon XPrize. CarbonCure has gained international attention for its technology, which introduces recycled CO2 into concrete to drastically reduce its carbon footprint and make the concrete substantially stronger. Canada has much to offer in today's world as we together tackle issues of global concern.
There is, of course, another important asset this country has going for it as we seek to position Canada as an investment destination. That is the tireless Minister of Innovation, Science and Industry himself, who has been remarkably prolific and successful in the last several years in bringing together foreign investment into Canada. That is because our government understands that attracting investment to Canada means creating jobs for Canadians and growing the Canadian economy.
At the same time, we recognize that the evolving national security landscape means that Canada's approach to foreign investment must also evolve. To be sure, Canada must remain an open economy, but we cannot ignore that we are increasingly being targeted by hostile actors. This threatens not just our national security, but also our prosperity, and we must always remember that economic security is national security.
Over the last number of years, we have already undertaken a number of measures to modernize the Investment Canada Act, or ICA, by updating our policies to improve transparency and provide certainty to investors. For example, in 2021, we updated guidelines on the national security review of foreign investments. In 2022, in response to the unprovoked and unjustifiable invasion of Ukraine, we set out a new policy on the review of foreign investments from Russia. We also introduced a voluntary filing mechanism for investors seeking regulatory certainty, triggering the same legal deadlines as a mandatory filing. That means investors can gain certainty about their plans while the government gains valuable insights into those plans ourselves. This past fall, we introduced a policy regarding foreign investment from state-owned enterprises in critical minerals under the ICA.
Bill C-34 is the next step forward. This legislation would protect the Canadian marketplace by evolving our tools to better defend against current and future threats. By equipping ourselves today for tomorrow's threats, Canada will remain a destination of choice for foreign investment.
With that framing, I would now like to touch on the amendments to the ICA that we are proposing, which all together would improve Canada's visibility into proposed investments, enhance transparency and investor confidence, and further empower Canada to act decisively on potential threats to our national security. There are seven proposed amendments to the ICA contained in Bill C-34.
The first is the introduction of a pre-implementation filing requirement for specified investments. This means that Canada would have oversight of investments made in certain sensitive business sectors, allowing a review of these transactions to be undertaken to prevent potential harm to our national security. This is a targeted approach designed to reduce unnecessary burden while bolstering transparency and certainty for investors.
The second amendment would introduce a new ministerial authority to order further national security reviews of investments. This means that the Minister of Innovation, Science and Industry would have the ability to order further reviews more efficiently, whereas previously a Governor in Council order was required.
The third amendment in Bill C-34 would increase penalties to strengthen deterrence. This means that penalties for non-compliance, which have not been updated in several decades, would reflect current financial realities, while also providing the authority to update penalties again as needed in the future.
The fourth would be the new authority provided to the Minister of Innovation, in consultation with the Minister of Public Safety, to impose interim conditions on parties to an investment. This means that during the review itself, we would better protect against national security threats that could come from the transfer of assets, IP or trade secrets.
The fifth amendment would provide the minister with the authority to accept mitigation undertakings. This means there would be more flexibility to improve or amend mitigation agreements at the ministerial level, where again, previously, the very rigid Governor in Council order was necessary to impose conditions on transactions to mitigate risks.
The sixth amendment in Bill C-34 would improve information sharing with international counterparts. We know that in the evolving geopolitical landscape that we inhabit, our co-operation with international allies is important for our collective security. This amendment would mean smoother consultations with our international partners and would allow Canada to share case-specific information, where appropriate, to support national security assessments.
The seventh and final amendment in the bill would bring new rules to protect information in the course of judicial review proceedings. This means sensitive information could be used in these proceedings while protecting it from disclosure, allowing judges to consider this information as part of their deliberations while allowing the applicants to fully participate in the judicial review.
Canada has a global reputation as a welcoming investment destination and ranks second among G20 countries in foreign investment. This is good news. In fact, last year we celebrated a new all-time high in the total number of filings. It is a job well done by the Minister of Innovation, Science and Industry. As a result of this success, Canada’s foreign investment regime must adapt to the speed of innovation.
Under the leadership of the minister and this government, Canada’s evolving policies and guidance have been addressing these developments as they arise, and we have taken clear and decisive action on transactions whenever necessary to protect Canada’s national security, but more must be done to ensure our ability to move quickly and decisively in the future. The guidance and decisions issued over the past several years make clear that some transactions, particularly those by state-owned or state-influenced investors, may be motivated by non-commercial imperatives that could harm Canada’s national security.
Ultimately, the volume and complexity of foreign investment reviews is increasing and this significant change provides a strong rationale for supporting ICA modernization. The time now is right to pursue modernization of the Investment Canada Act through Bill C-34 before the House today. Fundamentally, our government believes that an effective review regime must be robust, transparent and flexible to adapt to a changing world. We are making important moves now to review and modernize key aspects of the act, while ensuring that the overarching framework to support needed foreign investment to grow our economy remains strong and open.
Our record as a government makes it abundantly clear that where national security is concerned, we will not shy away from decisive action, and our assessment of risk keeps pace with evolving economic and geopolitical circumstances. While the ICA gives us much of the authorities we need to intercede and address national security risks that can arise in foreign investment, these amendments build on that strong foundation and improve the mechanics of the national security review of investments.
Taken together, these legislative amendments would ensure Canada is able to continue to gain the economic benefits of investments while strengthening our ability to address threats to our country and its future prosperity. For these reasons, I hope all members of the House will vote in favour of Bill C-34.
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Madam Speaker, I will repeat something I said during my remarks. Economic security is national security. The purpose of Bill C-34 and modernizing the ICA is to not only protect Canada's national security but to ensure that any foreign investments bring a net economic benefit into the country.
That answer with my previous answer, I hope, would satisfy the member.
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Madam Speaker, as I was saying, foreign investment, whether it is investments coming into Canada or Canadians investing abroad, can contribute markedly to our national prosperity. I have travelled all around the world promoting Canadian investment, because there was a time when Canada was a great place to invest. Sadly, over the last few years under the Liberal government there has been a decline in foreign investment. Why is foreign investment abandoning Canada? It is because of high taxes and regulatory uncertainty. This should concern all Canadians, because when foreign investment comes to Canada, for the most part it drives job creation if it is done right and contributes to our overall prosperity as a country.
However, as we welcome foreign investment into our country, we also have to be very judicious, making sure that those investments, first, represent a net benefit to Canadians and, second, do not represent a national security threat to our country. That is where the Investment Canada Act comes in. It was created to ensure that as foreigners invest in Canada, we have mechanisms and tools available to review those investments, to welcome those who are going to contribute to the overall good of the country and to reject those who are not good for our country.
The bill before us is seeking to introduce some amendments to the Investment Canada Act that purportedly will really improve the robustness of this regime. Unfortunately, if we dig down into the seven main amendments being proposed, they are mostly tinkering around the edges. Why do I say that? I do not believe they will markedly reduce the influence of foreign corporations and their ability to invest in Canada, especially when they come from increasingly hostile regimes around the world.
When we look around the world, I think all of us can agree that investments coming from a country like Russia require special diligence. Investments that come from places like Iran and China require a special degree of vigilance to make sure they serve our national interest. More and more often, we have seen under the Liberal government that investments have come from abroad from the more hostile regimes around the world, which engage in espionage and make investments that are not necessarily for the good of our country but promote a foreign country's economic interests. My colleague from Calgary Rocky Ridge has already articulated some of the cases where the Minister of Industry has failed to subject investments to the kind of rigorous review that Canadians would expect of its government.
For example, we had a situation where an RCMP contract was awarded for the supply of sensitive hardware for communications to a company that had earlier been purchased by a China-based company beholden to the communist regime in Beijing. How can that be? It is because the minister refused to do a national security review of that foreign investment into Canada. It was also revealed that the Canada Border Services Agency has used communications equipment and technology from the same company.
Canadians need to know that this very same company was charged with 21 counts of espionage in the United States. Would we trust this company not to conduct espionage in our country? Of course not. The reality is that I could go through the same list of foreign transactions my colleague from Calgary Rocky Ridge listed, to which the minister refused to apply the kind of rigour to reviewing these foreign investments that Canadians would expect.
We also have to understand that the geopolitical and security landscape around the world has changed dramatically and the risks Canada faces are that much more acute. We look around the world at countries like China, Russia and Iran that are flexing their muscles economically and militarily in the field of cyber-espionage, and we are incredibly vulnerable, so we have to pay attention to this.
I would also mention that, as we look at investments from abroad, there are some who have said we should be very cautious about welcoming investments of state-owned enterprises from a country like China into our country because of the allegiance of those corporations to the communist regime in Beijing. However, the reality is that, not long ago, China passed a national intelligence law, under which all Chinese corporations and citizens, whether at home or abroad, are required to act as agents of the government and hand over any information the Chinese communist authorities demand.
Therefore, any company from that country, and any citizen from that country, is expected to be an agent of the government, so as we look abroad for investment, it behooves us, as legislators and decision-makers, to make sure we are prudent in whom we welcome to our country to invest.
The largest majority of investments come from countries we would gladly welcome investment from. Obviously, if the United States has a corporation that wants to invest in Canada, we would say we welcome that investment, generally speaking. If it is a huge investment, we may want to put a special spotlight on that investment to make sure there is a net economic benefit to Canada, but by and large, the investments we attract to Canada, we welcome.
As such, the Investment Canada Act is targeted and makes sure that the investments that are problematic are reviewed by our federal government. The legislation before us, unfortunately, had the opportunity to implement the nine recommendations an earlier report from the industry committee had brought forward. Sadly, only two of those recommendations have actually been adopted by the government in its amendments to the Investment Canada Act. What a lost opportunity.
We, as a country, can do so much better, and the reality is that we, as Conservatives, have long had a robust approach to foreign investment. When we were in government, we made major reforms to the Investment Canada Act. We said “no” to investments. We required a number of foreign investments to be qualified and conditional before they could be invested in Canada.
I have just outlined very briefly what it is we are debating here, the Investment Canada Act amendments. Let us make sure we get it right.
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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—
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