Thursday, October 21, 2010

Point-counterpoint

Robert Silver displays his depth of understanding of the foreign investment review process associated with BHP Billiton's potash takeover bid:
This is just the latest example of the one-way street that is now Canadian federalism. If a Canadian prime minister has anything to say about what any province is doing in provincial jurisdiction, he is a centralizer who doesn’t understand the Constitution and is jeopardizing national unity – all really bad things. A Canadian premier interferes in federal jurisdiction – and I have never heard an argument that approving foreign investment is anything other than federal responsibility – and said premier is just standing up for his province.
The Investment Canada Act, in sections not revised since 1995, begs to differ with the assertion that provinces shouldn't have any say in a foreign investment review:
19. The Director shall refer to the Minister, for the purposes of section 21, any of the following material received by the Director in the course of the review of an investment under this Part:
...
(d) any representations submitted to the Director by a province that is likely to be significantly affected by the investment.
...
20. For the purposes of section 21, the factors to be taken into account, where relevant, are
...
(e) the compatibility of the investment with national industrial, economic and cultural policies, taking into consideration industrial, economic and cultural policy objectives enunciated by the government or legislature of any province likely to be significantly affected by the investment;

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