Canada is in no danger of being “hollowed out” by foreign takeovers, so Ottawa should reduce barriers and encourage a greater inflow of outside capital, one of the country’s top tax experts says.
University of Calgary economist Jack Mintz published an analysis Tuesday that suggests Canadian companies are investing far more money in other countries than foreign firms are spending to buy Canadian firms. Essentially, Canada is hollowing out other countries rather than being hollowed out itself, he said.
The report comes in the midst of a widespread debate about the merits of a proposed takeover of Canada’s biggest fertilizer firm, Potash Corp. (POT-T145.40-2.30-1.56%) by Australian mining giant BHP Billiton (BHP-N78.201.822.38%)
Prof. Mintz’s analysis shows that Canada ranked 46th among 92 countries when it comes to the amount of foreign direct investment coming into the country (measured by a proportion of gross domestic product, on average from 2004 to 2008). That suggests there is lots more room for foreign investment here.
http://www.theglobeandmail.com/report-on-business/economy/growth/canada-at-no-risk-of-being-hollowed-out/article1744365/One big bunch of ....
There is no investment. It is a purchase. These guys will say and rationalise anything. Harper is the result.
Broken promises mark foreign mining deals
Both Mr. D’Allesandro and Mr. Manley believe that BHP’s attempted acquisition of a Canadian global champion such as Potash Corp. may finally invoke a different response from the federal government rather than its usual takeover rubber stamping and willingness to allow vague and difficult to enforce commitments.
“If I were in BHP Billiton’s position, I would not presume that this is a done deal. I would presume that there is a lot of work to be done to convince everybody. Any day is a potential election day and in that environment this could be easily politicized,” Mr. Manley said.
When reviewing BHP’s application, Ottawa might also want to consider comments made in 2008 by BHP’s chairman at the time, Don Argus. Calling on his fellow Australians to continue investing in domestic mining assets, he cautioned that Australia’s resource sector was at risk of becoming globally irrelevant – just like the mining sector of another former British colony.
“If we fail to remain competitive,” the BHP chairman warned, “Australia will incur a substantial opportunity cost and in the worst-case scenario, our resources will fall into overseas hands and we will also become a branch office – just like Canada.”
http://www.theglobeandmail.com/globe-investor/potash/broken-promises-mark-foreign-mining-deals/article1742457/page3/Where is the opposition on this? Certainly Ralph Goodale shouldn't be there. Where is Iggy on this. Is he leaving it all to Ralph?