Cut takeover control, competition review says - Toronto Star

[sorrywrongemail]

http://www.thestar.com/Business/article/449648

Cut takeover control, panel says
TOM HANSON/THE CANADIAN PRESS
Industry Minister Jim Prentice accepts a copy of Competition Policy Review Panel report
Jun 26, 2008 11:13 AM
Les Whittington
Ottawa Bureau

OTTAWA-Despite concerns about the recent wave of foreign takeovers of Canadian corporate mainstays, a blue-ribbon panel is recommending the federal government water down its foreign investment controls, with the exception of cultural industries.
...

– Amending the Investment Canada Act to reduce barriers to foreign buyouts by significantly raising the threshold for reviewing a transaction to $1 billion in gross assets from the current level of $295 million. Requiring the government--not the acquiring company--to prove whether or not a corporate takeover of a Canadian firm would be contrary to the national interest. However, the panel says the cultural sector should be exempted from the application of less-stringent takeover rules. The panel also recommends "a broad review" of the country's cultural policies.

– Watering down foreign investments restrictions on key sectors such as air transport, uranium mining and the telecommunications and broadcasting sector.

– The federal government should reverse a 1998 decision that effectively bans mergers between large financial institutions. That stance is no longer suitable at a time when banks are merging around the world and the Internet is opening up fresh choices for consumers, the panel said. Such consolidations in Canada should be considered if they are judged by regulatory agencies to be in the public interest, the report indicates.

[sorrywrongemail]

1. Tom D'aquina's words of wisdom:

http://canadianpress.google.com/article/ALeqM5iL9CscD4NlkZX-7Q3Snp6e8G3jMw

The Canadian Press

Allow more foreign investment, bank mergers in Canada: panel of experts says

If enact, the measures could be as significant to the economy of Canada as the free trade agreement signed with the United Sates in the late 1980s, predicted Thomas D'Aquino, president of the Canadian Council of Chief Executives.

"This is sweet music to our ears," he said. "It's comprehensive, it's deep, its far reaching. It really is a phenomenal blueprint for taking Canada into the 21st century."

[Caradoc]

2. Oh sure, just what we need...

...an Italian multinational just bought our local brass fixtures plant and what's the first thing they did? Told one-third of the workforce that in order to keep working they had to sign on to a 'placement agency' where they would be placed on 3-month short term contracts. Anyone who has any experience with this knows that this is code for 'you could go at any time.'

Until governments force takeovers and mergers to be 'employment neutral' ie. no layoffs for the first 12-24 months (or at least pay for unemployment insurance for those laid-off for an agreed upon period of time) these mergers will remain what they are...a greedy, anti-social maneuver to maximize profit for a very, very few.

North America needs to reinvest and promote locally owned domestic businesses...multi-nationals don't need any more help, incentives, tax breaks or especially encouragement.