Canada says open to foreign resource investment

Reuters

TORONTO, Oct 16 (Reuters) - Canada's Conservativegovernment, which has raised investor concerns in recent yearsby blocking a handful of foreign-based acquisitions, used amajor policy speech on Wednesday to stress it will be open tooffshore investment in its resource sector.

It its Speech from the Throne, which formally starts a newsession of parliament, the government noted Canada's historicdependence on its resource industry and said the window forCanada to gain access to new markets will not remain openindefinitely.

"Our government will continue to ensure that our naturalresource sectors remain open to foreign investment when it ismarket-oriented and in the long-term interests of Canadians," inthe speech presented by Governor General David Johnston.

"Now more than ever, our future prosperity depends onresponsible development of these resources. At the same time,our Government has taken action to ensure that Canada'sresources do not fall under foreign government control."

Investors have become increasingly wary about Canada'sforeign investment rules after Ottawa blocked deals such as the2010 attempt by BHP Billiton to acquire fertilizergiant Potash Corp.

Last year, Ottawa allowed China's CNOCC Ltd to buydomestic energy company Nexen, but made it clearstate-controlled companies would not be allowed to buy majoritystakes in oil sands projects.

The government also said it will take steps to increase thesafety of transportation of dangerous goods and will requireshippers and railways to carry addition insurance, following thederailment and explosion of a train hauling fuel in a smallQuebec town this summer that killed 47 people.

Rates

View Comments (0)