Bill C-648: An Act to amend the Investment Canada Act (enhanced ministerial oversight)

C-648 Third Session, Fortieth Parliament, 59-60 Elizabeth II, 2010-2011 HOUSE OF COMMONS OF CANADA BILL C-648 An Act to amend the Investment Canada Act (enhanced ministerial oversight) first reading, March 25, 2011 Mr. Gravelle 403267 SUMMARY This enactment amends the Investment Canada Act to (a) require the responsible Minister to consult with, and organize conferences of, representatives of industry and labour, provincial and local authorities and other interested persons in exercising his or her powers and performing his or her duties under this Act; (b) set the threshold for mandatory ministerial review of investments by non-Canadians at 100 million dollars; (c) require the Director of Investments to refer to the responsible Minister for the purposes of an investment review any representations submitted to the Director by communities, trade unions, employees and other persons likely to be affected by the investment; (d) require the non-Canadian investor to provide the Director of Investments with a surety that may be forfeited if the non-Canadian investor fails to satisfactorily complete all of the undertakings he or she has made to the Government of Canada in connection with the investment; (e) require the Minister, in performing an investment review, to take into account the contribution of the investment to community advancement, and its effect on contractual terms applicable to employees and retirees and to undertakings in connection with capital investment by other parties; (f) eliminate the prohibition against the communication of information related to an investment that is under review; (g) provide for the review, by the Investment Review Branch of the Department of Industry, of all investments that have been implemented in accordance with this Act; and (h) extend the timeline for the Minister to perform an investment review from 45 to 90 days. Also available on the Parliament of Canada Web Site at the following address:http://www.parl.gc.ca .vis1 {position: absolute;display:block;} .vis2 {position: static;} 3rd Session, 40th Parliament, 59-60 Elizabeth II, 2010-2011 house of commons of canada BILL C-648 An Act to amend the Investment Canada Act (enhanced ministerial oversight) Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows: R.S., c. 28 (1st Supp.) INVESTMENT CANADA ACT 1. Paragraph 5(2)(c) of the Investment Canada Act is replaced by the following: (c) shall consult with, and organize conferences of, representatives of industry and labour, provincial and local authorities and other interested persons. 2. (1) The portion of subsection 14.1(1) of the Act after paragraph (b) is replaced by the following: is reviewable pursuant to section 14 only where the value, calculated in the manner prescribed, of the assets described in paragraph 14(3)(a) or (b), as the case may be, is equal to or greater than one hundred million dollars. (2) Subsections 14.1(2) and (3) of the Act are repealed. 3. Section 17 of the Act is amended by adding the following after subsection (3): Surety (4) The non-Canadian making the investment shall, within the time specified by the Director, provide the Director with a surety in an amount equal to ten per cent of the total value of the proposed investment. Surety returned (5) If the Minister notifies the non-Canadian under section 23 that he or she is not satisfied that the investment is likely to be of net benefit to Canada, the surety referred to in subsection (4) shall be returned to the non-Canadian at that time. Surety returned (6) If the Minister notifies the non-Canadian under section 21 that he or she is satisfied that the investment is likely to be of net benefit to Canada, the surety referred to in subsection (4) shall be returned to the non-Canadian upon the satisfactory completion by the non-Canadian of all undertakings made to the Government of Canada in connection with the investment. Surety forfeited (7) If the non-Canadian fails to satisfactorily complete the undertakings referred to in subsection (6), the surety referred to in subsection (4) shall be forfeited to Her Majesty in right of Canada, and any proceeds realized from the surety shall be applied towards economic measures to benefit the communities affected by the non-Canadian’s failure to satisfactorily complete these undertakings. 4. Paragraph 19(d) of the Act is replaced by the following: (d) any representations submitted to the Director by a province, community, trade union, employee or other person or organization that is likely to be affected by the investment. 5. Section 20 of the Act is amended by striking out “and” at the end of paragraph (e) and by adding the following after paragraph (f): (g) the contribution of the investment to the advancement of the community or communities in which the Canadian business operates; (h) the effect of the investment on all contractual terms and conditions applicable to employees and retirees of the Canadian business, including current and future benefits and pensions; and (i) the effect of the investment on commitments to capital investment in the Canadian business by other parties. 6. Section 36 of the Act and the heading before it are repealed. 7. The Act is amended by adding the following after section 37: Review Review 37.1 Within one year after the implementation of an investment that was reviewed under this Act, the Investment Review Branch of the Department of Industry shall undertake a review to assess the performance of the non-Canadian investor in respect of each of the factors set out in section 20 and to determine if all undertakings made by the investor have been satisfied. 8. Section 42 of the Act is repealed. 9. Subsection 45(4) of the Act is replaced by the following: Privileged information (4) All information that is privileged under section 14 of the Foreign Investment Review Act, chapter 46 of the Statutes of Canada, 1973-74, remains privileged under this Act. 10. The Act is amended by replacing “45” with “90” in the following provisions: (a) subsections 21(1) to (9); (b) subsections 22(1) and (3). COORDINATING AMENDMENT 2009, c. 2 11. (1) In this section, “other Act” means An Act to implement certain provisions of the budget tabled in Parliament on January 27, 2009 and related fiscal measures, chapter 2 of the Statutes of Canada, 2009. (2) If section 2 of this Act comes into force before subsection 448(1) of the other Act, then that subsection 448(1) is repealed. (3) If subsection 448(1) of the other Act comes into force before section 2 of this Act, then, on the day on which that section 2 comes into force, subsection 14.1(1) of the Investment Canada Act is replaced by the following: 14.1 (1) Notwithstanding the limits set out in subsection 14(3), an investment described in paragraph 14(1)(a), (b) or (c) by (a) a WTO investor, or (b) a non-Canadian, other than a WTO investor, where the Canadian business that is the subject of the investment is, immediately prior to the implementation of the investment, controlled by a WTO investor, is reviewable pursuant to section 14 only where the value, calculated in the manner prescribed, of the assets described in paragraph 14(3)(a) or (b), as the case may be, is equal to or greater than one hundred million dollars. (4) If section 2 of this Act comes into force on the same day as subsection 448(1) of the other Act, then that section 2 is deemed to have come into force before that subsection 448(1) and subsection (2) applies as a consequence. Published under authority of the Speaker of the House of CommonsAvailable from:Publishing and Depository ServicesPublic Works and Government Services Canada