Government obliged to protect public interest in Nortel takeover

WINDSOR - The government must live up to its obligations under the Investment Canada Act to protect the public interest and national security in the fire sale of Nortel wireless assets, say New Democrat Industry Critic Brian Masse and Ottawa-Centre MP Paul Dewar.

“The conservatives are using taxpayer money to help a foreign company steal very valuable assets at a lowball price, while a leader in Canadian innovation who is offering a higher price, is blocked – it is outrageous,” says Masse.

Nortel, a Canadian leader in technological innovation, announced in June an auction for one of its most lucrative wireless operations, which includes hundreds of patents related to wireless technology called Long Term Evolution (LTE). Worldwide telecom companies are in a race to develop LTE technology because it will allow cell phones to handle more profitable services.

The Export Development Corp., a crown corporation, extended a $300 million line of credit to Nokia Siemens Networks to buy Nortel's wireless assets for $650 million. Research in Motion, a Canadian company, has offered $ 1.1 billion for those assets, and alleges it has been blocked form the bidding process.

Industry Minister Tony Clement has refused to intervene, even though the Investment Canada Act, including amendments that were approved this year, mandate the government to review all foreign takeovers above $312 million for “Net Benefit” to the public and “National Security.”

“The Investment Canada Act gives the government the power to intervene and ensure there is a net benefit to Canada, yet the Harper Conservatives are ignoring their responsibility,” says Dewar. “At a time when we are losing so many Canadian industry leaders, this government must step in to ensure our legacy of technological innovation is protected and Canada can remain a trailblazer.”