44th Parl. 1st Sess.
November 9, 2023 10:00AM
Madam Speaker, I want to begin by drawing members' attention to an important event that is happening tomorrow.
Last week at the opening cocktail reception for the Abitibi-Témiscamingue international film festival, Steve Jolin, known as Anodajay to rap fans, was awarded the National Assembly medal for all of the work that he does to protect cultural vitality. Sandy Boutin from the Emerging Music Festival and Madeleine Perron from the Abitibi-Témiscamingue cultural council also received awards.
Why am I talking about this? The reason is that, following his first album Premier VII, featuring the hit song J'te l'ai jamais dit, Anodajay, an artist from a remote region who raps in French, put out a second album called Septentrion, containing a cover of the classic song La Bittt à Tibi. His version is called Le Beat à Ti-Bi. Tomorrow, November 10, his record label, Disques 7ième Ciel, will be celebrating its 20th anniversary at none other than the Bell Centre. This record label, which was established 20 years ago, promotes rap and is likely the definitive source for French rap music in North America, with artists such as Koriass, Samian, Manu Militari, Alaclair Ensemble, Souldia, and many others, including Fouki and Zach Zoya, who is originally from Rouyn-Noranda.
I should mention that Rouyn-Noranda will be at the Bell Centre tomorrow to celebrate the record company’s 20 years, and I also wanted to acknowledge the talent and fearlessness of Steve Jolin. This will be a great day for Quebec rap.
Today, I rise to speak to Bill C-34 and its critical importance for us Quebeckers. This bill amends the Investment Canada Act. The Bloc Québécois supports Bill C‑34, which strengthens the federal government's powers regarding oversight of investments that could compromise Canada's national security. More specifically, Bill C‑34 reinforces the minister's authority, giving him the power to impose conditions during national security reviews and to accept undertakings to mitigate national security risks.
These essential amendments are a logical evolution in an increasingly interconnected world where foreign investments play a vital role in the economic development of both Quebec and Canada. Consider the minerals needed to produce technological goods and electrify transportation. All mineral production becomes essential, even strategic, and therefore becomes a national security concern. Consider life sciences or quantum technology businesses or artificial intelligence start-ups. In these sectors, any investment by a foreign government or a foreign firm, from a country such as China, would automatically be subject to an initial review to prepare for an in-depth study. It would be subject to a national security review and systematically rejected unless the investor can convincingly demonstrate its real benefits, meaning its net benefit for Canada. This is an important point.
Bill C‑34 and the new critical mineral policy should put an end to the acquisition of resources by foreign-controlled firms that renders our industry completely dependent. This is something I vigorously defended at the Standing Committee on Industry and Technology. These are good mechanisms for Quebec and Canada. They protect our supply chains, our businesses and our sovereignty from ill-intentioned foreign investments. Each new review process essentially copies what is done in the United States, creating the harmonization that our businesses have also been calling for. By passing Bill C‑34, we are increasing the chances that the U.S. will continue to see us as a trusted partner, which is a condition for being a preferred supplier and, most importantly, for being integrated into their supply chains.
The U.S. has agreed to include Canada in its critical minerals supply chain, and, importantly, it has backed off on the most protectionist measures in the Inflation Reduction Act, the IRA, since Bill C‑34 now meets the requirements, the main one being to align our security policies with those of the United States. This is an essential prerequisite for including Canada in its industrial modernization strategy, in particular the development of the electrification industry. I have participated in not one, but two ministerial missions on these topics in Washington. I went there two years ago with the Minister of International Trade, Export Promotion, Small Business and Economic Development and last year with the Minister of Innovation, Science and Industry, who was accompanied at the time by the Minister of National Defence. That shows how current these policy issues are and how vital they are for maintaining our competitive edge.
I do thank the government for its openness in committee. The government agreed to clarify the fact that purchasing a company's assets is the same as purchasing the company itself. If a company owns a mine and resources, and we purchase that company, we also get the mine and resources. This is very important, because it means that the transaction is subject to the act. This clarification was necessary, particularly in the case of intangible assets, such as intellectual property patents, where there was a gap in the previous version of the act. It is crucial that our laws protect our national interests, including intellectual property.
There may also be a flaw in the government's overall approach when it comes to protecting intellectual property. Does it go far enough? During our study of Bill C‑34 in committee, several witnesses pointed out that the government could be doing more in that regard.
We took a more nuanced position on certain amendments. I supported the idea of considering intellectual property when reviewing transactions because it strengthens our national security and protects our strategic assets.
I want to take this opportunity to mention that other ideas emerged during the Standing Committee on Industry and Technology's work. I will start with a fundamental value: transparency. One of the most important changes that the Bloc Québécois and I argued vigorously in favour of had to do with transparency provisions. That was a major issue the witnesses raised and one that came up in the technical documents that were submitted.
I insisted on the need for greater transparency around national security in the decision-making mechanisms. That calls for more information from agencies responsible for decisions related to national security. That is a legitimate request that comes largely from the professionals who support the parties involved in this type of transaction, as well as from anyone who wants to understand how the decisions are made and which criteria are taken into account.
The minister's obligation to make their decisions public represents significant progress. This will improve the public's understanding and enable individuals, businesses and all stakeholders to better understand the process and the reasons for national security-related decisions.
We got a commitment from the minister to disclose certain types of information and require parties to a transaction to disclose the names of individuals benefiting from the new company resulting from the acquisition of or merger with the Quebec or Canadian company. We are firmly committed to acting in the best interest of the Quebec nation and to ensuring that the preservation of our national interests is in harmony with our democratic values and our pursuit of open and transparent governance.
Consider, for example, the acquisition of Rona by Lowe's. Rona was one of Quebec's success stories. It was acquired by Lowe's, but we will never know the conditions set by the federal minister. Nearly a decade later, we need to consider the consequences of that. Was it because of local procurement obligations, the need to maintain a head office in Montreal or the need to keep a certain number of employees in Quebec, both at the head office and in the companies? Were those aspects respected? We will probably never know, because the conditions were never made public. If they had been, the public would have been better informed and it would have been easier to hold the company to account regarding whether or not Quebec's interests were respected. Let me remind the House that we lost a head office at that time, and that must never happen again. Greater transparency is therefore an important gain.
Now let us talk about thresholds. The Bloc Québécois urges the government to go much further and to improve overall oversight of foreign investment, with a view to preserving our head offices, our economic leverage and our control over our resources, which Bill C-34 does not do.
I would therefore ask the House to consider a new bill providing for a more complete reform of the Investment Canada Act in this regard. We tried to do it in committee because no one had thought of it when Bill C‑34 was created. Unfortunately for us, the government restricted possible amendments to the sole issue of foreign investment as it relates to national security, which is important, yes, but limited. If we could have improved one thing, that would have been a good pick. However, we were unable to go as far as adding a new provision. While this is very unfortunate, I have high hopes that a new bill could be introduced.
I think there was even some degree of consensus around the table that the government missed an opportunity to review the thresholds to which mergers and acquisitions must be subject, particularly when it comes to guaranteeing that foreign investments will have a net benefit for Canada. That is an essential condition for everyone who is interested in foreign investment.
We support Bill C‑34, but we will continue to demand loud and clear that the government introduce a new bill to examine and review the other provisions of the Investment Canada Act.
The federal government's blind spot is its failure to protect our economic levers, a critical element that is often overshadowed by more immediate concerns. The data set out in the annual report from the department's investment division, which was tabled in Parliament in October, present an alarming reality that is getting worse as the years go by.
Of the 1,255 foreign investment projects totalling $87 billion that were submitted last year, only 24 of them would have been considered to have national security implications had this bill been in effect at the time. Everything we are talking about right now would have an impact on only about 2% of projects. That is far from nothing, but it is not enough either.
The rest, or 1,221 investments, remain subject to the old lax rules with less than 1% of them being subject to a thorough review to assess their true net economic benefit.
Each year, more than 97% of investments are not subject to a review. We have a right to question the oversight capacity for transactions.
This gap in the protection of our economic levers stems from the growing fragility of the Canada Investment Act, with an increasingly high review threshold, allowing the vast majority of foreign investments to avoid any substantial assessment of their impact on our economy. It is imperative that the government deal with this blind spot by strengthening the controls and reaffirming its commitment to preserving our economic sovereignty for the long term.
Over the years, the Canada Investment Act has been watered down. The threshold for a government review of an investment keeps going up. Almost all of the investments slip through and the government does not even have the power under the Canada Investment Act to assess whether each investment is beneficial.
The current act, introduced in the mid-1980s, assumes that full liberalization of investment is a good thing, that just about any foreign investment, whatever it may be, is beneficial, resulting in the loss of decision-making levers and head offices—weakening Montreal's financial sector in the process—the total dependence of our businesses on foreign suppliers, possible land grabs and the loss of control over our natural resources. Doing nothing is disastrous.
By focusing solely on national security, Bill C‑34 does not address Quebeckers' and Canadians' gradual loss of control over their own economy. In an economy that is in transition, that is no longer something we can afford, not that we could ever afford it.
COVID-19 has also caused us to reflect on many aspects of impacts, including the devaluation of certain head office assets and dependence on supply chains. If we are not producing vaccines, for example, we are dependent on foreign vaccine portfolios. This cost us billions of dollars. I am eager to have this information. If we had domestic companies that could have been protected, maybe we would still have assets, and it would have cost much less to secure the health of our population.
To that end, we invite the government to table another bill to modernize the entire Investment Canada Act, not only the part on national security. National security is important, but so is economic security. In particular, the government should significantly lower the threshold beyond which it authorizes foreign investments without a review.
Bill C‑34, which focuses mainly on national security, also raises legitimate concerns for many Quebeckers and Canadians. Although protecting national security is a crucial part of the legislation, it should not overshadow the gradual loss of control over our economy.
As a citizen concerned for our economic future, I call on the government to go beyond a simple review of the Investment Canada Act's national security provisions and to adopt a more holistic approach to modernizing the entire act. National security is undeniably a major concern for any government. However, it is just as important to consider economic security. The economic well-being of the provinces is closely linked to our ability to protect and promote our local industries.
The federal government must pave the way for greater recognition of innovation zones and the efforts made by stakeholders in these vital zones.
For example, Abitibi—Témiscamingue is rich in minerals that are critical to the new economy. We have expertise in this area, and this could put Quebec on the map internationally. Once again, I invite and even encourage the minister and those advising him to recognize our uniqueness and the leaders of my community by working with us to increase economic activity in and around the mines. I also urge them to protect the efforts being made to develop these companies, which are so sought after by foreigners.
The government must act decisively and lower this threshold considerably in order to effectively protect our economic interests.
The Bloc Québécois has raised this concern numerous times, and we have conveyed it to the minister and his officials every time the Investment Canada Act came up for discussion. I have personally done so.
The current threshold is too high. This means that many potentially sensitive transactions are not being reviewed by the relevant authorities. Lowering the threshold for foreign investment will enable the government to better control transactions that could have a negative impact on our economy. That does not necessarily mean that all foreign investments should be blocked, but rather that we must be able to carefully evaluate each case and impose conditions, if necessary, to ensure that these investments truly benefit Quebec or the rest of Canada.
By modernizing the entire Investment Canada Act, the government can also put in place mechanisms to encourage investment in key sectors of our economy. Tax incentives, targeted subsidies and other incentives can be used to attract domestic and foreign investment in areas such as technology, R and D, manufacturing and many other vital sectors. The aeronautical field also comes to mind.
In addition, modernizing the act can help ensure that foreign investment does not compromise our economic sovereignty by allowing foreign players to take control of our strategic companies. Appropriate control mechanisms must be put in place to ensure that Canadian companies remain under Canadian control and Quebec companies remain under Quebec's control. This is necessary to protect our interests.
It is important to note that the modernization of the Investment Canada Act should not be seen as an isolationist measure, quite the contrary. We recognize the value of international trade and foreign investment in our economy. However, we have a duty to protect our long-term economic interests. In that sense, ownership of our resources is a fundamental issue.
The government is responsible for striking a balance between national security and economic security. By modernizing the Investment Canada Act in a way that takes both of these aspects into consideration, we can guarantee that our economy will remain, strong, competitive and sovereign.
I want to dig into the pandemic example a little more because there is something interesting there. Some companies, like Air Transat, lost value. Air Canada was in a similar situation. The Standing Committee on Industry and Technology did a study on the Investment Canada Act and its potential repercussions.
I believe that Bill C‑34 is essentially the product of the recommendations that came out of the work we did in committee at the height of the COVID‑19 pandemic. One of my concerns back then was potential loss of value due to a major economic factor such as COVID‑19. Given the current inflationary context, we may still be heading for a recession. Interest rates have gone up a lot. We know that the situation with the Canada emergency business account is key to the survival of our SMEs. About 80% of them have not yet started repaying their loans. Many businesses are in danger.
Had we been able to lower the thresholds and provide better protection for these businesses, maybe we could have saved these strategic assets. Based on the overall current context, we believe that lowering the thresholds is still appropriate. Economic growth can never be taken for granted.
Lastly, by focusing mainly on national security, Bill C‑34 fails to adequately address the fact that Quebeckers and Canadians are gradually losing control over their own economy. It is imperative that the government table another bill to modernize the entire Investment Canada Act by significantly lowering the foreign investment thresholds, introducing incentives to stimulate domestic and foreign investments in strategic sectors, and protecting our economic sovereignty.
As I have said before, national security is important, but so is economic security. Our future depends on it.
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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 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 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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- Nov/9/23 5:54:10 p.m.
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Mr. Speaker, I am going to be fairly direct with the government about the Ignoble Purpose Award it received a few weeks ago. After hearing testimony from survivors and whistle-blowers, and considering that 98% of the 114 witnesses heard by the Standing Committee on Canadian Heritage called for a public inquiry into abuse and mistreatment in sports, it is clear to me that any other option is no longer an option at all, and I am not going to dismiss their request out of hand. We need to get to the bottom of the systemic problems in sport.
Being the recipient of an ignoble award is a reminder of the importance of integrity in sports, as well as the underlying responsibilities. Sport is not just about competitions and medals. It plays an essential role in the health, well-being and development of individuals. It reinforces the values of honesty, teamwork and self-improvement while fostering inclusion and diversity, which enable people from all walks of life to come together around a common passion. Integrity in sports is compromised by the many abuses that have been reported and the wilful blindness of government, not to mention conflict situations.
In England, investigations into foreign interference in sport are under way. This has ramifications all the way to Canada. The minister is all too aware of this, since she is a former employee of the Canadian Olympic Committee, the International Olympic Committee's franchise in Canada.
Every time the Minister of Sport appeared before the Standing Committee on Canadian Heritage, we reminded her of how Sport Canada and the funding of multi-sport organizations are at the root of many of the problems we are seeing right now. That is what has been coming out of the committee hearings that have taken place this past year. Has she forgotten that she is accountable for failing to follow up on three separate requests to appear before the Standing Committee on Canadian Heritage since July 26, 2022? She was called to appear on December 13, 2022, April 17, 2023 and again on June 1, 2023. Patience has its limits.
Until we actually have some guarantees in place, I am prepared to stand up in the House as often as I am permitted and I will raise this issue in every forum to continue to consistently get this message across. Perhaps I sound like a broken record on this issue, but I think that this is something that we can control and that we cannot let slide.
The Government of Canada won an ignoble purpose award for its apathy toward abuse in sport. This should not be seen as a mere red flag, but a full-on red alert. A public inquiry is long overdue. Sport does not deserve contempt, but the blatant indifference toward this issue is simply unacceptable. Since the appointment of a new Minister of Sport, the silence has been deafening. We hear nothing but crickets.
I would just like to remind the House of the motion I brought on June 22, 2022, a year and a half ago, which was adopted unanimously:
That the House call for an independent inquiry into Hockey Canada's handling of the events of June 2018, in order to determine whether this was an isolated event or whether there are deficiencies in Hockey Canada's handling of reported complaints of sexual assault, sexual harassment and other types of misconduct.
It is crystal clear that the government has done nothing about this issue. Though the motion was adopted unanimously by the House of Commons, it did not spur the government to action. The minister has repeatedly been asked to appear before the sport committee and hold herself to account. In May, the Minister of Sport held a press conference at which she announced she would launch an independent public inquiry. That was more than six months ago, but there is still no sign of that public inquiry.
This Parliament's very credibility is at stake, along with the credibility of all parents and athletes who put their kids in organized sport. When will the government launch this independent public inquiry?
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- Nov/9/23 6:01:24 p.m.
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Mr. Speaker, I thank my colleague for being here, for working with the Standing Committee on Canadian Heritage and for her empathy. I also want to say that the Parliamentary Secretary to the Minister of Environment and Climate Change and to the Minister of Sport and Physical Activity has a reasonable excuse for his absence today.
I want to remind everyone that there is a crisis in sport, and everyone knows it. Survivors deserve more consideration from the Liberal government members who are responsible for sport. Athletes and their families are calling for urgent recognition that the situation is dire, especially as the 2024 Olympic Games in Paris draw near. The Bloc Québécois is therefore calling for immediate action and urging the minister to stop playing hide-and-seek and launch an independent public inquiry into abuse in sport, as described in Bill 1.
Why is she waiting to launch the public inquiry? Why have there been so many resignations at various organizations, such as Own The Podium, Sport Canada and Hockey Canada, to name just a few? The house of cards is collapsing. It is time for answers.
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