Ottawa, April 27, 2012—Through the Jobs, Growth and Long-term Prosperity Act, the Harper Government has announced proposed targeted improvements to Canada's foreign investment review process to provide greater information to the public and more flexibility in enforcement.
"Canada has one of the best investment climates in the world. Our businesses depend on investment to expand, innovate and create jobs for Canadians," said the Honourable Christian Paradis, Minister of Industry and Minister of State (Agriculture). "We want our foreign investment review process to continue to promote economic growth, job creation and prosperity in Canada."
Through the Jobs, Growth and Long-term Prosperity Act, the Harper Government has introduced amendments to the Investment Canada Act to provide the Minister of Industry with a greater ability to publicly communicate information on the review process, while preserving commercial confidences. The amendments would also promote investor compliance with undertakings by authorizing the Minister to accept security, when offered by an investor, for payment of any penalties ordered by a court for a contravention of the Investment Canada Act.
The amendments would allow the Minister to disclose publicly the fact that he has sent a preliminary notice to an investor that he is not satisfied that the investment is likely to be of net benefit to Canada. They would also allow the Minister to publicly explain his reasons for sending the notice as long as it would not cause harm to the Canadian business or the investor.
The Harper Government recognizes that strong confidentiality protection is critical to ensure that investors provide the information necessary to conduct reviews as well as to prevent the harm that could come from disclosure.
For further information (media only), please contact:
Margaux Stastny
Director of Communications
Office of the Honourable Christian Paradis
Minister of Industry
613-995-9001
Media Relations
Industry Canada
613-943-2502
The Jobs, Growth and Long-term Prosperity Act, introduced on April 26, 2012, proposes to amend the Investment Canada Act (ICA) to:
- provide the Minister of Industry and the Minister of Canadian Heritage with a greater ability to publicly communicate certain information on the review process, while preserving commercial confidences; and
- promote investor compliance with undertakings by authorizing the Minister of Industry and the Minister of Canadian Heritage to accept security from an investor for any penalties that may be ordered by a court in the event of a contravention of the Act.
Specifically, section 36 of the ICA would be amended to enable the responsible Minister to publicly communicate that an investor has been sent a notice under subsection 23(1) of the Act. Such a notice informs the investor that the Minister is not satisfied that the investment is likely to be of net benefit to Canada and advises the investor of its right to make representations and submit undertakings within 30 days from that notice or any further period agreed on by the investor and the Minister. The amendment would also authorize the Minister to disclose reasons for sending such a notice, provided that the Minister is satisfied that such disclosure would not prejudice the investor or Canadian business.
The Jobs, Growth and Long-term Prosperity Act would also amend section 19 of the ICA to allow the responsible Minister to accept security, when offered by an investor, for payment of any penalties ordered by a court in the event the investor is in contravention of the Act. Section 36 of the Act would be amended to allow the Minister to disclose information relating to the acceptance of such security, provided that the Minister is satisfied that such disclosure would not prejudice the investor or Canadian business.
