- Member of Parliament
- Member of Parliament
- NDP
- South Okanagan—West Kootenay
- British Columbia
- Voting Attendance: 61%
- Expenses Last Quarter: $128,729.57
- Government Page
Mr. Speaker, I am happy to rise today to speak to Bill C-34, which would update the Investment Canada Act. This act is designed to do two main things. The first is to ensure that foreign investments in Canada have a net benefit to Canadians. The second is to ensure that foreign investments are not detrimental to our national security.
Many Canadians, especially Canadians of my age, might know this act better by its former name, The Foreign Investment Review Act. In its early days in the 1970s, it was brought in to deal with a rash of foreign buyouts, mainly American, of Canadian companies.
The Foreign Investment Review Agency approved about 90% of the transactions it dealt with, but was criticized by both Liberals and Conservatives for actually doing its job by blocking some proposals that did not show a benefit to Canadians.
Therefore, Brian Mulroney brought in the Investment Canada Act in 1984. He replaced the Foreign Investment Review Agency with Investment Canada, saying that he wanted to welcome foreign investment. True to his word, under his government, Investment Canada did not block a single foreign investment transaction, not one. The Liberal governments that followed Mulroney, under Jean Chrétien and Paul Martin, had the same record, not one application blocked.
The Harper government was a different story. Harper blocked the sale of British Columbia-based Macdonald, Dettwiler to the American company Alliant based on both financial and critical technology arguments.
On the other hand, in 2012, the Harper government allowed the $15-billion sale of Canada oil company Nexen to the China National Offshore Oil Company, owned by the Chinese government, and the $6-billion sale of Progress Energy to Malaysia-based Petronas. However, the same day, Harper changed the Investment Canada Act to block state-owned foreign investment in Canadian oil and gas companies, essentially closing the barn door after the horses had left.
Therefore, legislation regarding regulating foreign takeovers of Canadian companies has changed from time to time over the past decades. Foreign investment trends have changed as well. The share of U.S. investment in Canada has declined over the past few decades, but it still leads the pack followed by the Netherlands, the United Kingdom, Luxembourg, Switzerland, Japan, China, Germany, Brazil, France and Bermuda, although, I suspect the high placement of Luxembourg and Bermuda reflects more where Canadian companies are hiding their profits than real sources of investment.
However, 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. The bill before us introduces a pre-implementation filing requirement for certain investments to give earlier visibility to situations where there is a risk that a foreign investor would gain access to sensitive assets or information immediately on closing.
I have talked to numerous tech companies over the past few years. One story I hear repeatedly is that small Canadian tech companies work hard to develop a new technology, say in hydrogen energy development or AI advances. However, when it comes to expand their companies to really get their product to market, they need investment. Too often in the Canadian tech ecosystem, these companies simply get bought out by bigger companies from the United States, Europe or China. With those sales go the intellectual property that represents the core of their company's value.
The present version of the Investment Canada Act allows companies to report takeovers after the fact. However, if critical intellectual property is involved, it is usually too late to stop the transfer of that information, if we find out about the transaction 30 days later, for instance. It is not like the old days when the main value of a company was in the factories it owned. This new pre-implementation filing could help put a stop to that where necessary.
There are several other improvements that provide more flexibility for the minister to act and better manage the entire process.
What would make the act 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, and I would like to spend some time on a story that illustrates why this is needed.
There is a company called Retirement Concepts that owns and operates a number of seniors residences in British Columbia, long-term care homes. One of them is the Summerland Seniors Village just outside the federal riding I represent but within the provincial riding I live in. When I first sought to enter politics 10 years ago, I was involved in a provincial election in that riding.
The Summerlands Seniors Village was involved in a tragic story of a local family that lost both its mother and its father in 2012 to poor care and accidents. I met with members of the family and heard the heart-wrenching story of neglect that had taken the lives of their parents.
After that incident, the provincial government demanded that Retirement Concepts hire more staff, but managers claimed that no one was applying. I am guessing that a combination of low wages and overworked conditions had a lot to do with that.
In 2016, Chinese insurance giant Anbang, then a privately held company, bought Retirement Concepts, a transaction that was reviewed and okayed by the federal government's investment review process. 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 that the Canadian government 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 B.C.. Not only is it one of the largest providers of long-term care, it is known to provide very poor care at times for our seniors.
In fact, in 2020, the provincial government in British Columbia had to seize management control of four care homes run by Retirement Concepts because of the continuing problems with poor care. It returned that control just over a year later, but it is an indication of the general lack of priority Retirement Concepts had placed on the care of seniors.
At present, there are no provisions in the Investment Canada Act that would allow Investment Canada or the minister to be able 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. This can be done by establishing the power to require a mandatory divestment of all Canadian assets by entities in these specific circumstances.
As an aside, in the case of long-term care homes, the NDP is very much in favour of a move to a future where seniors' care is given the same respect that all health care gets, a future where no long-term care homes are owned by private companies that put profit ahead of the well-being of our seniors.
This is an example of where we could and should take a big step in that direction.
Another factor to consider in investment review is to prevent the loss of 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 dollars 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 that technology and those jobs to its operations in Mexico.
An NDP amendment, passed in committee, would allow for the review of a foreign takeover to consider the intellectual property whose development was funded by the federal government and to issue remedies to retain the benefits in Canada. Therefore, a situation like that of Nemak would not happen again.
I do not have time today to go over all the improvements this bill would bring to the foreign investment space in Canada or to go over all the improvements that we had hoped it would bring but fell short.
In this new world, where ideas and data are often more valuable than the natural resources we have so long relied on for our wealth, we need a new regulatory framework to protect our industries, our workers and our companies. Bill C-34 is a step in that direction.
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- Apr/25/22 11:34:10 a.m.
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Madam Speaker, I am very happy to rise here this morning to speak to Motion No. 47 on improvements to long-term care, put forward by the member for Avalon. This motion points out that the COVID pandemic has exposed long-standing issues affecting long-term care, and it asks the federal government to:
...work with the provinces and territories to (i) improve the quality and availability of long-term care homes and beds, (ii) implement strict infection prevention and control measures...(iii) develop a safe long-term care act...to ensure that seniors are guaranteed the care they deserve....
I am also happy to say that I will be supporting this motion. As a New Democrat, I am very proud to say that we have used our power in the current minority government to secure a commitment from the federal government in our confidence and supply agreement to bring in a safe long-term care act to ensure that seniors are guaranteed the care they deserve, no matter where they live. This long-overdue legislation must be implemented without delay, and I thank the member for Avalon for introducing this motion, which adds further impetus to this necessary action.
I would first like to thank all the workers in long-term care across Canada. They have been at the front lines of the pandemic for the past two years and more. This is hard work. It is stressful work, and it is done by people who truly care for the people whom they care for. I want to make it completely clear that these workers are not the problem in the long-term care crisis.
As the motion points out, COVID-19 has exposed a fragmented and under-resourced long-term care system across Canada, and this has been a problem for many years. I remember speaking here just over a year ago to an NDP motion that called for significant changes to make sure our seniors are cared for properly and with dignity. In that speech, I mentioned a couple of stories that illustrated how long-standing this problem is. I would like to briefly reiterate those points today.
In 2013, nine years ago, I met with a family who had lost both their mother and their father to substandard care at a privately owned care home in Summerland, British Columbia. The province investigated the family's concerns and found that the staffing levels of the facility were far too low. Months later, the company that owned the facility, Retirement Concepts, reported that it was trying to hire more staff but was having trouble filling the new positions. As Mike Old of the Hospital Employees' Union said, Retirement Concepts is well known for paying low wages, and that has resulted in chronic understaffing at many of its facilities.
Retirement Concepts operates 20 facilities in Canada, most of them in British Columbia. In 2016, Retirement Concepts was sold to Anbang Insurance Group of China for more than $1 billion. Since then, problems at Retirement Concepts homes seem only to have gotten worse. As of last year, the operation of its properties in Summerland, Courtenay, Nanaimo and Victoria had been taken over by the provincial health authority, all because care levels were inadequate due to understaffing.
Retirement Concepts is not alone in its understaffing problems. I remember visiting another facility in Penticton in 2015, seven years ago, and talking to the staff about working conditions there. I was shocked to find out that some of the staff who had worked there for 20 years were making less money in 2015 than when they had started in 1995. No wonder they were tempted to leave whenever they could. A friend whose mother was in that facility recently told me that the staff was hard-working and attentive but completely overwhelmed. There was always a “now hiring” sign out front. Apparently, the home could not afford to pay workers as much as the local hospital, so it was constantly losing the most experienced staff whenever a job opened up at the hospital.
Experts have been issuing dire warnings for years about this crisis, but successive federal governments, both Liberal and Conservative, have failed to act. Then the pandemic hit. Hundreds died needlessly in care homes during the pandemic, sometimes in horrific conditions. The armed forces had to be called in because staff was overwhelmed in many places. According to the Canadian Institute for Health Information, more than 840 outbreaks were reported in long-term care facilities and retirement homes during the initial wave of the COVID-19 pandemic. This accounted for 80% of all COVID deaths in Canada during that wave, representing the worst record among comparable countries and double the OECD average.
We must never allow this to happen again. Federal leadership is urgently needed to protect vulnerable Canadians living in long-term care, both throughout the pandemic and in the years to come.
In these debates, we have heard a lot of calls for national standards of care. Yes, we need those national standards, but the fact is that no provincial standards are being met now. The benchmark for quality long-term care is 4.1 hours of hands-on care per resident per day; no province or territory currently meets this standard of care.
There is a lack of accountability for long-term care facility operators due to lax enforcement of standards and regulations. For example, a recent CBC investigation revealed that 85% of long-term care homes in Ontario have routinely violated health care standards for decades, with near total impunity.
The problem is funding. Lack of funding results in short-staffed institutions and underpaid workers. Underpaid workers are forced to work two or three care homes at once, and we saw how that spread the virus during the early stages of the COVID pandemic.
At the heart of the funding problem are the for-profit long-term care homes. Among care home residents, 80% have underlying medical issues that have meant they have had to move into those care homes. Long-term care is medical care, but it is not covered under our universal, not-for-profit health care system in Canada, and because long-term care lies outside the health care covered by the Canada Health Act, many care homes are run first and foremost for profit.
This means Canadians often pay substantial out-of-pocket costs for long-term care, which can vary significantly depending on the region and whether it is a private or public facility. Service quality varies widely depending on ability to pay, and service quality can have a significant impact on the health of care home residents, especially during a pandemic. Residents and workers in for-profit centres have faced a higher risk of COVID-19 infection and death than those in non-profit and publicly operated homes.
Decades of research have demonstrated that long-term care homes run on a for-profit basis tend to have lower staffing levels, more verified complaints and more transfers to hospitals, as well as higher rates of both ulcers and morbidity. On top of that, during the pandemic, many for-profit operators have been paying out millions in CEO bonuses and dividends while accepting public subsidies and neglecting the residents under their care.
The NDP is proud to have used its power to secure a promise from the government to advance a safe long-term care act through the confidence and supply agreement, and I will add that this agreement also includes dental care and pharmacare, so that we can have a truly universal health care system in Canada.
We must continue to work collaboratively with patients, caregivers and provincial and territorial governments to develop national standards for long-term care and other continuing care, which would include accountability mechanisms and data collection and be tied to sustainable, long-term funding. The standards are not enough by themselves.
Successive Liberal and Conservative governments have failed to improve standards of long-term care, because they have embraced a profit-driven model for the sector. The NDP will work relentlessly to change that. Profit has no place in the care of our seniors, just as it has no place elsewhere in our primary health care system.
Our seniors deserve to live in dignity and comfort, so in conclusion, I will be supporting this motion. I urge the government to live up to its promises and act quickly and boldly to fix the long-term care crisis in Canada.
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- Apr/25/22 11:09:12 a.m.
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Madam Speaker, I would like to thank the member for Avalon for bringing this motion forward. He talked about standards of care. There are provincial standards of care across Canada. The trouble is that none of those standards are being met in any province, and the problem is both funding and the model of delivering long-term care in Canada, which to a large extent is a for-profit model.
I am wondering how his motion would help this. If we do not get the profit out of long-term care in Canada, how can we put strings on any funding we might provide to make sure these long-term care homes provide a dignified place to live for seniors?
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- Feb/1/22 11:18:18 a.m.
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Madam Speaker, I would really like to thank the member for Sarnia—Lambton for bringing up that important issue. The NDP has been calling on the government to change its decision. Some of the most heartbreaking messages, emails and phone calls I have been getting in my offices are from seniors who were advised to collect CERB because they were told they qualified, but who then found out after CERB was abruptly cut off that their GIS vanished. They now cannot afford their rent and some of them have lost their homes.
We have been pressing the government to do the right thing, reinstitute that and give them the retroactive pay they need. It is not that they deserve it; they need it. In Canada, we have to take care of our seniors, and low-income seniors are some of the most vulnerable people in our country. Let us do the—
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