- Member of Parliament
- Member of Parliament
- Conservative
- Charleswood—St. James—Assiniboia—Headingley
- Manitoba
- Voting Attendance: 66%
- Expenses Last Quarter: $99,486.97
- Government Page
Madam Speaker, I question the capacity of every minister in the government.
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Madam Speaker, it is a very large concern. One person should not have that much power in a democratic government, period. For example, let us say that the minister of the day is from Ontario and a foreign investor wants to come along from an authoritarian state and spend $30 billion buying a Volkswagen electric battery plant. The minister from Ontario would be under a lot of pressure to allow that type of investment to proceed, but it might not be in the national interest. That is why it is important to have multiple perspectives at the table when decisions are being made about investments that are national in scope and could have major effects on our GDP, our economy and our national security.
I agree that the Bloc is being hypocritical on this. It should support our amendment.
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Madam Speaker, I always find it interesting that the NDP is stuck in the past. Its members want to keep talking about the last Conservative government or Mr. Harper. My recommendation is that the member and his party start thinking about their future, because it is dismal to tie their wagon to this calamitous Liberal government.
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Madam Speaker, the Liberals missed a chance to think big and understand what is going on in the Canadian economy. This bill does not go far enough to address the risks faced by Canadians.
That is why Conservatives worked to pass four significant amendments. For instance, Conservatives ensured that the threshold to trigger a national security review was reduced so that Canadian resources, including intellectual property, are safer.
Among the changes proposed by the government in the bill is the removal of mandatory consultations with cabinet in determining whether an investment is a threat to Canada's national security. This change is problematic given the number of state-owned investments made in Canada over the past eight years that have not undergone a security review because of decisions made by past industry ministers. By removing cabinet from the process, decisions over whether an investment is considered injurious will receive less debate and scrutiny.
These are decisions that should have a national perspective that only cabinet could provide. Foreign investments often have national impacts on our economy and on multiple regions. To leave the discretion in the hands of one minister from one part of the country will negate a broad national perspective. It is a problem that this bill is only as strong as the minister's scrutiny, whoever the minister may be in the future. Conservatives believe matters of such importance should be scrutinized by all of cabinet to make sure nothing slips through the cracks.
As I mentioned, one Conservative amendment that was approved at committee was about reducing the threshold to trigger a national security review from $512 million to zero dollars for all state-owned enterprise investments made in Canada. Lowering that threshold was critical so that at least it would trigger and initiate a security review.
Another Conservative amendment that was passed would ensure that items reviewable under the national security review process include acquisitions of any assets by a state-owned enterprise. Until now, the review only applied to acquisitions of the controlling shares of an industry. That was a huge loophole, as it opened the door to circumvent a review where a deal was structured as an asset purchase. For example, buying the shares of a mining company could be reviewed but buying the mines themselves could not. This is a welcome change.
Another amendment would ensure that an automatic national security review is conducted whenever a company has previously been convicted of corruption charges. Another change would require the minister to review any investments or acquisitions made in Canada that exceed $1.9 billion in enterprise value instead of it being an option.
Conservatives could have improved this legislation further had the NDP-Liberal government not rejected many notable Conservative improvements to this legislation. Among the common-sense Conservative amendments that failed to pass committee was one that would have modified the definition of “state-owned enterprise” to include any company or entity headquartered in an authoritarian state such as China.
Another amendment that was defeated would have exempted non-Canadian Five Eyes intelligence state-owned enterprises from the national security review process to prevent any overly broad review processes. Another amendment would have ensured that an automatic national security review is conducted whenever a company has previously been convicted of corruption charges. One other amendment would have implemented a requirement for the minister to trigger a national security review automatically whenever the investment review threshold was triggered. The last would have required the minister to conduct a national security review by changing the word “may” to “shall” to ensure a review would be triggered whenever it is in the new threshold.
It is important that we get this right. Recently at the ethics committee, there was a study on foreign interference and the role that nations, particularly China and Russia, are playing as state-owned actors in making investments in our economy for the purpose of control, including controlling Canadian businesses, Canadian minerals, Canadian resources and, in many cases, some of our northern and offshore areas.
Therefore, it becomes critically important for the government to keep a keen eye, and multiple eyes in fact, on what is happening with foreign investment and approvals. We believe that Conservatives have improved the bill dramatically. We are trying to improve it again in the spirit of good public policy for Canada and protecting our economy against hostile interests, which the Liberals seem not to be that interested in.
I urge the House, including all members of the Bloc Québécois, the NDP and the government, to recognize that cabinet's decision-making process is essential to understanding the national impacts of foreign investment. I urge members to vote for our amendment. By removing clause 15 from the bill, all security review decisions would remain reviewable by cabinet and not just by the ministers of industry and public safety. This is all about protecting Canadians and protecting our valuable assets, our businesses, our national security and certainly our interests.
We must take sensitive transactions seriously, and we have failed to fully review some transactions, particularly as they relate to Chinese state-owned enterprises of the past. A Conservative government would not only protect Canadian investment but build Canadian companies and attract investments to grow them.
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Madam Speaker, in the House, I think the Speaker was asked a very similar question and said he has relented on that position.
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Madam Speaker, I am honoured to rise today to speak on Bill C-34.
Before I do, I would be remiss if I did not talk about the calamitous vote the Liberal members of this House took earlier today by excluding all Canadians from being treated fairly by pausing the carbon tax for Canadians all over the country. I come from Winnipeg, one of the coldest cities on the planet. Today, Liberal members from Winnipeg said no to Winnipeggers, while their Atlantic Canadian counterparts seem to be more effective than they are. They have the ear of the Prime Minister who I suppose was trying to save himself from his terrible polling results with this desperate measure by the government. However, at the end of the day the Liberals chose not to pause the carbon tax pain, which is really unfortunate for all Canadians.
As far as Bill C-34 is concerned, I want to say this. After eight years of the Prime Minister, numerous foreign state-owned enterprises have acquired interests and control in many Canadian companies, intellectual property, intangible assets and the data of our citizens. The government is doing too little, too late to protect our national economic and security interests with this bill.
Since the Liberals came to power, business investment per employee in Canada has dropped 20%. At the same time, business investment per employee in the United States has increased 14%. Per capita growth is at the lowest level since the Great Depression some 90 years ago and Canada has the most at-risk mortgage default portfolio in the G7. According to the National Bank of Canada, for the first time ever, business investment is now lower in this country than housing investment. When we think about all the manufacturing, oil production and everything else, investment in those things is lower than it is in housing.
The goal of the Investment Canada Act is to deal with foreign investors controlling Canadian industry, trade and commerce. Foreign direct investment creates opportunities, stimulates economic development and introduces new ideas and innovation to Canada. For Canadians, this means more high-quality jobs and a stronger, more sustainable economy.
Billions of dollars of Canadian natural resources, ideas, IP and land are being controlled by foreign entities. Huawei, a state-owned enterprise that feeds intelligence directly to China, was still working with many Canadian universities as of this past summer.
Another example would be taxpayer-funded dollars at Dalhousie University that are funding Tesla intellectual property and research and that IP is all going back to California.
In 2017, the Liberal government allowed a telecom company from British Columbia called Norsat to be acquired by a company called Hytera, which is a Chinese-based state-owned company. Conservatives demanded at that time a full national security review. The Liberal minister of the day refused to do one and approved the acquisition.
This sort of lax attitude toward issues of national security is clearly a problem. After eight years of the Prime Minister, numerous foreign state-owned enterprises have acquired interests and control in many Canadian companies, intellectual property, intangible assets and the data of our citizens.
The future of Canada needs to be protected in the airwaves, AI and quantum computing. It needs to be protected in our farms, food-processing plants, oceans and fisheries, as well as in developing Canadian LNG, which the world so desperately wants. The government is doing too little to protect our national economic and security interests with this bill. Canadians know the Liberals do not take sensitive transactions seriously and have failed to fully review transactions involving Chinese state-owned enterprises, putting the security of Canadians and the government at risk.
The minister is the minister of broken bills, which is why Conservatives are having to make more amendments to this piece of legislation. On his other bill, Bill C-27, the digital charter implementation act, after a year and a half he was forced to make amendments.
The Liberals missed the chance to think big and understand what is going on in the Canadian economy. This bill does not go far enough to address the risks faced by Canadians. That is why Conservatives worked to pass four significant amendments to ensure a rigorous review process—
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Mr. Speaker, I know the member to be a good person and an honest person, but he is saying that we have agreed to something that we have not agreed to. I do not think that is appropriate. It has been very clear that we have not agreed, particularly on the amendment to clause 15.
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Mr. Speaker, the minister keeps arguing that we have debated this enough and that all of these amendments were voted on at committee. Getting back to the question that my colleague for South Shore—St. Margarets asked, there is one question that was not voted on at committee, and it is perhaps the most important one. It has to do with ministerial discretion. That was not voted on at committee, which is why we brought it back to the House.
My colleague for South Shore—St. Margarets asked a very direct question, and the minister did not answer it. I think Canadians who are watching these proceedings deserve an answer. Does the minister not think that the country would be better served by all of cabinet undertaking the security review, rather than one minister from a particular region where certain interests are served?
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Madam Speaker, I was reminded, during my colleague's speech, of one of my favourite Ronald Reagan quotes, “The nine most [frightening] words in the English language are: I'm from the Government and I'm here to help.” Can the member comment on whether that is as true today of the Liberal government as it was of the Democrats when Mr. Reagan spoke of it?
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Madam Speaker, I appreciate that the member would like to see the legislation updated. There was an amendment at committee that would bring in, subject to review, assets that were required by a state-owned enterprise. This was not the case before. For example, if we were going to buy the shares of a state-owned enterprise, that would be reviewable. However, if we were going to buy a single mine from a mining company, the asset itself would be reviewable, based on the amendment, if it were to pass in the House.
Does the member agree with such an amendment?
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Madam Speaker, there was an amendment at committee that would have required cabinet to be responsible, as a whole, for triggering a national security review, as opposed to just the minister. That amendment, for some reason, was ruled out of order.
Conceptually, does the member agree that it would be better to have that considered by the whole of cabinet, as opposed to a single minister?
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Madam Speaker, one of our amendments that Conservatives put forward at committee was voted down at committee. I wanted to ask my colleague about it. It was the amendment that called for the modification of the definition of state-owned enterprise to include any company or entity headquartered in an authoritarian state like China, for instance. It was voted down.
I wonder if he could comment on the importance of that amendment and why it should have passed.
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Mr. Speaker, I was hoping that the member had listened to my speech before she asked her question. If she reviews the Hansard, she will see that is, in fact, exactly what I said. I don't think the $454 million threshold solves the problem anymore. It should be zero.
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Mr. Speaker, I enjoy working with my colleague on the finance committee. He always has excellent questions and makes excellent points, and this is in fact one of them.
This is an opportunity to really overhaul how Canada reviews foreign investment, in light of the new world that we are living in. I agree with the member entirely. The committee needs to have a serious look at what we could do. It could be by reducing the threshold to zero; by including asset purchases; by making sure it is not just the Minister of Industry who decides, but all of cabinet or some other broader mechanism. That would make sure Canadians remain in control of their economic future.
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Mr. Speaker, I would be remiss if I did not say what the elephant in the room was this morning. There is a report in The Globe and Mail saying how the extent to which the Chinese Communist Party tried to manipulate the results of both the 2019 and 2021 elections was surely a bombshell revelation.
We are dealing with a government that cannot even protect the basic integrity of our elections, and we are asking it to now make sure that we are secure in terms of foreign investment. I have grave concerns about Bill C-34 coming out of committee in a strengthened way. I certainly hope that members on the committee and in the Liberal Party see that this bill does need to be strengthened. We are living in a whole new world where it is not just about the net economic benefit anymore. It is about what the national security threats are to Canada as a whole.
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Mr. Speaker, I will be sharing my time with the hon. member for Northumberland—Peterborough South.
In December 1973, Parliament enacted the Foreign Investment Review Act, which was known as FIRA, to deal with the issue of foreign investors controlling Canadian industry, trade and commerce, and the ability of Canadians to maintain effective control over their economic future.
These investments would be allowed to proceed only if the government had determined that they were, or were likely to be, of significant benefit to Canada. This net benefit test still exists today, but much has changed given rising national security concerns that necessitate new measures. Let me elaborate.
In June 2017, Hytera Communications, a company owned by the Chinese Communist Party, acquired Norsat International, a B.C. telecom company. Just like that, a firm backed by an authoritarian regime took over an essential service provider here in Canada.
One would think this takeover would have raised some red flags, but it did not, not for the Liberal government at least. If it had acted rationally, the government would have conducted a national security review into Hytera. However, after eight years in power, it is clear that rationality is in short supply these days.
It did not bat an eye when, as all of this was taking place, our own Border Services Agency was using equipment from Hytera. We are talking about a company that has been charged with 21 counts of espionage. That company has been banned from doing business with our neighbour to the south. Up until that point, the Liberals have said that business is business, even when it means letting a hostile regime gain access to our essential services.
This sort of lax attitude toward issues of national security is clearly a problem. What is even more problematic is that for five long years after the Hytera fiasco, the government has not learned from its mistakes.
In 2020, it gave out a contract to Nuctech, a company founded by the son of a Chinese Community Party secretary general. It would not have taken a national security review to figure out who the company's founder was. A quick Google search would have sufficed.
It was not just standard, run-of-the-mill work that this company with Chinese Communist Party connections was doing. Nuctech was supplying X-ray equipment, of all things, to almost 200 Canadian embassies and consulates.
Two years ago, it looked like the government was changing its course when it updated its national security review guidelines. This was not the case, or at least it certainly was not the case when the Minister of Industry greenlit the takeover of a Canadian lithium mine by a Chinese state-owned enterprise.
Once again, the opportunity was right there. The minister could have requested a national security review. The review framework was even new and improved, or so they would have us think. However, the minister did not act. Delays, half measures and slaps on the wrist. Those have been the Liberal responses to national security threats throughout the past eight years.
Huawei is a perfect example of this. By 2021, each and every one of our allies within the Five Eyes had already banned Huawei from using their 5G networks. For years, my colleagues and I have been calling on the government to do the right thing: Listen to our allies, listen to security experts and ban Huawei from accessing 5G.
Reluctantly, and far too late, the Liberals finally took our advice and took a stand against the Chinese Communist Party. That was less than a year ago. With the Liberal government's dismal track record in matters related to national security, Bill C-34 feels like too little, too late. It is like the goalie letting in eight goals, then coming onto the ice at the last minute and saying, “Don't worry guys. I've got this.”
To be fair, this bill does address Canada's national security. It is a policy area where the government has been complacent for far too long. For that reason, I am prepared to support the bill at this stage, as long as it can be strengthened in committee.
For a while, a lot of us had the naive idea that these regimes were emerging partners, and they were slowly moving toward the democratic norm. Putin's war changed all of that, and it is time that Canada acted accordingly. It is time for a reality check. Hostile foreign governments want to subvert and undermine this country. The threat is real and the threat is here. Canadians are well aware. A few weeks ago, all that Canadians had to do was look up and see a Chinese surveillance balloon flying at 60,000 feet.
Bill C-34 responds to this new reality, but not well enough and not in its current form. The bill puts the power to request national security reviews in the hands of the Minister of Industry, the same minister whose predecessor did not even request a security review when Hytera took over an essential Canadian telecom provider. It is the same minister who, even after strengthening the security review guidelines in 2021, chose not to investigate the Chinese takeover of a critical Canadian mining company.
The bill is only as strong as the minister's scrutiny, whoever that minister may be in the future. Conservatives believe matters of such importance should be scrutinized by all of cabinet to make sure nothing slips through the cracks.
There are also existing problems with the Investment Canada Act that are not even addressed in Bill C-34. For no apparent reason, when a state-owned enterprise invests in a Canadian company, a national security review is only triggered if the Canadian company has assets worth more than $454 million. This provision has it all wrong. It is not about the size of the company that is being acquired. It is about the security risks that would inherently arise when a hostile state-owned company gains control over a critical service or product here in Canada.
Bill C-34 needs a provision that would trigger an automatic national security review when a state-owned enterprise invests in Canada. The threshold should be zero dollars, not $454 million. Also, the bill would only deal with share purchases and non-asset purchases. Therefore, in theory, there is a roundabout way that foreign investors could acquire assets in Canada and completely circumvent the legislation. It is clearly a loophole that needs to be plugged.
Since 2017, Chinese companies have been governed by the national intelligence law. This law compels every citizen and every company to hand over data to Chinese intelligence agencies. For almost six years, so much Canadian information has gone to China's autocratic government that it is hard to even quantify. We need to put an end to this, but right now, Bill C-34 would not do that.
Bill C-34 needs a presumption against allowing the takeover of Canadian companies by China's designated state-owned entities. It needs a reformed net benefit test to better account for the potential effects of a transaction on the broader innovation ecosystem, with a particular focus on protecting intellectual property and human capital. It needs automatic review of transactions involving sensitive sectors, such as defence, artificial intelligence and rare earth minerals. It also needs a mandatory national security review for state-owned enterprises where national security is a concern.
The act would not attempt to change definitions of state-owned enterprises or look at the issue of what constitutes control. One would not have to buy 50% of a company to control it. Someone could buy small percentages of it, get a number of seats on the board or change management, which Hytera has done.
It is clear that Canada needs to improve these protections. Bill C-34 would be a small step in the right direction, but much more needs to be done.
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Madam Speaker, I noted that during his speech, the member talked about the security of our economy. Right now, under the legislation, foreign investment review is triggered only when the assets of a Canadian corporation are at least $454 million.
I wonder if the member would agree that, given the nature of security threats and foreign acquisitions by hostile governments, it would be better to have that threshold at zero dollars.
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