Canadians can’t trust Harper to protect strategic industries

OTTAWA – With the flagship of Canada’s potash industry inching towards foreign sale, New Democrat Leader Jack Layton today called on the prime minister to stop rubber-stamping foreign takeovers and start protecting family-supporting jobs and communities.

“When it comes to ensuring that takeovers deliver a net benefit to this country, Canadians can’t trust Stephen Harper. Too many past takeovers have meant boarded-up mills, shredded collective agreements, and lost jobs and pensions,” said Layton.

“Inco, Alcan, Nortel, Falconbridge, Dofasco—the list goes on. Canada has already ceded control over aluminum, steel and nickel. We can’t afford to let another strategic resource slip through our fingers without a comprehensive public review of the sale.”

The Investment Canada Act outlaws foreign takeovers that do not deliver a “net benefit” to Canada. Since the Act came into force in 1985, however, only one takeover has been rejected, while 13,500 have gone ahead. The federal government is not required to disclose the commitments it secures from investors to meet the net-benefit requirement.

New Democrats have proposed legislation overhauling the Act to ensure protection for Canadian jobs, communities and strategic assets. Its proposals include:

• setting explicit criteria for the “net benefit” test
• incorporating public hearings into the review process
• requiring full public disclosure of the government

With jobs in Saskatchewan and strategic control over potash at stake, Layton called on Harper to respect this processs if a Potash Corporation bid goes ahead.

“This strategic resource needs to produce the maximum revenue for its owners – the people of Saskatchewan. Canadians need a reason to trust they’ll be protected this time. Mr. Harper should commit now to public hearings and to full public disclosure of his reasons for accepting or rejecting this takeover bid," said Layton.