Where are the net benefits from foreign takeovers?
December 19th, 2012 - 4:16pm
"Where are the net benefits from foreign takeovers?"
As Canadians have watched the Federal government again approve foreign takeovers in the resource sector the issue of net benefits is again front and centre.
When a foreign company takes over a Canadian company there is supposed to be a net benefit for Canadians.
The Federal government rejected the BHP takeover of potash in Saskatchewan because of the lack of benefits but earlier approved the Vale takeover of Inco that has had a negative net benefit for Thompson.
It is clear that the net benefit test needs immediate clarification in the wake of the Conservatives’ approving a transaction of limited benefit to Canadian
Our caucus has called on the House of Commons to direct the Federal government to honour their two-year-old promise and update the Investment Canada Act.
Our Natural Resources critic Peter Julian has called on the government to lay out specific net benefit criteria, improve the transparency of decisions and to require public consultations on changes to the Investment Canada Act.
He pointed out that the government has rubber stamped a deal that leaves the Canadian economy vulnerable to foreign government interference, in secret with no public consultation. This is unacceptable and we need immediate action on the Investment Canada Act to ensure that this doesn’t happen again.
It is time we as Canadians took strong action to ensure we and future generations benefit from our natural resources.