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Harper erects 'For Sale' sign on Canada . . . .
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May 25, 2012, 6:46:50 PM5/25/12
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The companies that will be most affected are the RESOURCE industries - like oil and gas in
Alberta and BC and the east coast.
This government is out to deregulate, privatize and sell out everything that gives Canada any
value. It's like watching the Nazis' takeover of a continent . . . .
____________________________________________
May 25, 2012
Ottawa moves to limit foreign investment reviews
Federal government to start limiting its reviews of foreign investment over next four years
The federal government is raising to $1 billion the amount of foreign money that can go into a
Canadian company before the investment is reviewed.
Right now, an investment or takeover of a Canadian business worth $330 million or more triggers
a federal review under the Investment Canada Act. The industry minister looks at whether the
investment is of "net benefit" to Canada, though current laws don't explain what that means.
If the change goes ahead, the limit will immediately rise to $600 million, then to $800 million
two years after that. The threshold will sit at $800 million for another two years before
rising to $1 billion. The final amount will be indexed to Canada's gross domestic product.
The Conservative government used the Investment Canada Act to block a proposed 2008 takeover of
MacDonald, Dettwiler and Associates Ltd., the company behind the Canadarm, and a proposed 2010
takeover of Potash Corp.
In 2010, a media report quoted Prime Minister Stephen Harper saying he'd give more information
about the act.
"The government will be in a position not only to give reasons for the decision, but to give
broader guidance to the investment community on the kind of foreign investment it is and is not
seeking," Harper said after the government refused to let Australian company BHP mount a $40
billion takeover of Potash Corp, according to Bloomberg.
Net benefit test 'fundamental issue'
The changes will be done through regulation rather than presented in front of Parliament and
studied in committee. There's a 30-day public consultation period before they're final.
A news release from Industry Minister Christian Paradis' office says the changes were first
proposed in 2009 and adjusted based on consultations.
The regulations also propose a change to look at the enterprise value of a company's assets
rather than the book value, according to the business' financial statements. The news release
says the enterprise value "better reflects the value of a business as a going concern and the
increasing importance of service and knowledge-based industries." That change will take effect
as soon as the limit rises to $600 million.
NDP industry critic Hélène LeBlanc said the changes will negatively impact communities. The NDP
wants the threshold lowered to $100 million, she said.
"We have seen a lot of foreign takeovers followed by lay-offs and broken promises," she said,
pointing to Caterpillar closing its Electro-Motive Diesel plant in London, Ont.
"We see that small- and medium-sized enterprises, quite often when they become attractive, will
be bought by global companies that don't have deep roots in the community and don't have the
same objectives as building communities, offering long-term jobs," LeBlanc said.
The NDP also want to see the definition of net benefits clarified, she added.
Liberal Industry critic Geoff Regan says the change doesn't deal with the major problem in the
act.
"The government's decision to raise the threshold for reviewing foreign takeovers to $1 billion
fails to address a fundamental issue, which is clarification of the net benefit test," Regan
said in an email to CBC News.
"It is very disappointing that the Conservatives have again refused to clarify the net benefit
test and continue to block all attempts to have the [House] industry committee study the
Investment Canada Act. What Canadians and investors really want is to know what constitutes a
net benefit to Canada."
********************************************************************************
We hang the petty thieves and elect the greatest ones to public office.
Alberta and BC and the east coast.
This government is out to deregulate, privatize and sell out everything that gives Canada any
value. It's like watching the Nazis' takeover of a continent . . . .
____________________________________________
May 25, 2012
Ottawa moves to limit foreign investment reviews
Federal government to start limiting its reviews of foreign investment over next four years
The federal government is raising to $1 billion the amount of foreign money that can go into a
Canadian company before the investment is reviewed.
Right now, an investment or takeover of a Canadian business worth $330 million or more triggers
a federal review under the Investment Canada Act. The industry minister looks at whether the
investment is of "net benefit" to Canada, though current laws don't explain what that means.
If the change goes ahead, the limit will immediately rise to $600 million, then to $800 million
two years after that. The threshold will sit at $800 million for another two years before
rising to $1 billion. The final amount will be indexed to Canada's gross domestic product.
The Conservative government used the Investment Canada Act to block a proposed 2008 takeover of
MacDonald, Dettwiler and Associates Ltd., the company behind the Canadarm, and a proposed 2010
takeover of Potash Corp.
In 2010, a media report quoted Prime Minister Stephen Harper saying he'd give more information
about the act.
"The government will be in a position not only to give reasons for the decision, but to give
broader guidance to the investment community on the kind of foreign investment it is and is not
seeking," Harper said after the government refused to let Australian company BHP mount a $40
billion takeover of Potash Corp, according to Bloomberg.
Net benefit test 'fundamental issue'
The changes will be done through regulation rather than presented in front of Parliament and
studied in committee. There's a 30-day public consultation period before they're final.
A news release from Industry Minister Christian Paradis' office says the changes were first
proposed in 2009 and adjusted based on consultations.
The regulations also propose a change to look at the enterprise value of a company's assets
rather than the book value, according to the business' financial statements. The news release
says the enterprise value "better reflects the value of a business as a going concern and the
increasing importance of service and knowledge-based industries." That change will take effect
as soon as the limit rises to $600 million.
NDP industry critic Hélène LeBlanc said the changes will negatively impact communities. The NDP
wants the threshold lowered to $100 million, she said.
"We have seen a lot of foreign takeovers followed by lay-offs and broken promises," she said,
pointing to Caterpillar closing its Electro-Motive Diesel plant in London, Ont.
"We see that small- and medium-sized enterprises, quite often when they become attractive, will
be bought by global companies that don't have deep roots in the community and don't have the
same objectives as building communities, offering long-term jobs," LeBlanc said.
The NDP also want to see the definition of net benefits clarified, she added.
Liberal Industry critic Geoff Regan says the change doesn't deal with the major problem in the
act.
"The government's decision to raise the threshold for reviewing foreign takeovers to $1 billion
fails to address a fundamental issue, which is clarification of the net benefit test," Regan
said in an email to CBC News.
"It is very disappointing that the Conservatives have again refused to clarify the net benefit
test and continue to block all attempts to have the [House] industry committee study the
Investment Canada Act. What Canadians and investors really want is to know what constitutes a
net benefit to Canada."
********************************************************************************
We hang the petty thieves and elect the greatest ones to public office.
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