The Government of Canada has in place an Investment Review Panel for every large foreign purchase of a Canadian company. The panel reviews purchases to ensure that they are in the best interest of our economic sovereignty.  The review criteria for these decisions have been in place for years.  In the 13 years the former Liberal government was in power, they did not reject a single foreign corporate takeover of a Canadian Corporation. Since our Harper government was elected, two corporate foreign purchases of a Canadian company were rejected, one being the purchase of MacDonald Dettwiler.  Specific reasons for that rejection were cited and the markets responded favourably.

A number of weeks ago we had another corporate purchase that was under review; the purchase of Potash Corp. of Saskatchewan Inc.  This was a very emotional issue as this corporation produces over fifty percent of the world’s potash and has the largest known potash reserves in the world. The majority shareholders are from the United States, and 50% of the Board of Directors on the Potash Corp. of Saskatchewan Inc. are Americans. 

There is a fallacy that exists that Canada is at risk of being sold to the highest bidder. In fact, Canadians own more foreign investments outside of Canada than foreign investors own inside Canada. We are a global economy and we can compete with anyone anywhere.

The issue of the Potash Corp. of Saskatchewan purchase was one of ensuring that the purchasing corporation provided assurances of investment in expanding and modernizing operations to ensure market share and reasonable commodity pricing.  It is also in our National interest to have the corporate headquarters on Canadian soil, for a net benefit to Canada.

I am comfortable with the Minister’s decision to reject BHP’s bid for three reasons. First, there were questions of net value to Saskatchewan regarding investment and the location of operation headquarters. Second, there was the issue of sovereignty of the resource in question and I ask myself, if a foreign country were to offer to buy the majority of the oil companies and reserves in Saudi Arabia what would the Saudi’s reaction be to such a purchase? (My guess would be “not a chance” as this is a national resource that belongs to the people of Saudi Arabia).  And finally, as a politician I believe we need to listen to the will of the people and it was obvious that a majority of Canadians were not in support of this purchase.

Yes; I believe in open and free markets, but I also believe that as a smaller Nation in the global markets we should not compromise, for short-term gain, the National economic interest and potential of our unique resource wealth.

Colin Mayes, MP
Okanagan-Shuswap