Nexen takeover must have thorough public review

NDP will ask the Industry and Natural Resources Committees to look at proposed deal

OTTAWA — New Democrats are raising concerns about the cash agreement to purchase the Canadian resource company Nexen by the China National Offshore Oil Corporation Ltd., a company wholly owned by the Chinese government.

“Foreign state-owned companies are buying up Canadian natural resources to pursue their own interests, while the Conservative government just sits on their hands. This deal must be subject to a thorough, transparent and public review – something Conservatives have refused to do in the past,” said New Democrat Industry Critic Hélène LeBlanc (LaSalle‒Émard).

New Democrats have long called for foreign investment reviews to be more transparent and accountable, including a clearer net benefit test.

“In the face of increasing foreign takeovers, Conservatives have a poor track record,” said LeBlanc. “They failed to live up to their promise to review the Investment Canada Act and have refused to review proposed deals in an open and transparent way.”

New Democrats also raised concerns about any firm commitments the China National Offshore Oil Corporation is making around protecting jobs, contributing to the community or consulting First Nations affected.

“The deal contains no hard commitments on the environment, and too often we have seen previous job guarantees from foreign companies collapse – with no consequences from the Conservatives,” said New Democrat Energy and Natural Resources Critic Peter Julian (Burnaby-New Westminster). “We have to ensure that foreign investment enriches our communities and Canada’s resources are developed sustainably.”