The debate about Canada’s natural resources is an important one, but far too political for this blog. The debate will appropriately centre around control and strategy in a global age, but also freedom and choice.

Unlike many Arab nations, who from the get-go, always prohibited foreign ownership of their coveted resources, Canada has bought into the mindset served up by the global juggernaughts and their PR machines, and has willingly handed over control of our resources to the highest bidders.

Debating whether or not foreign ownership will enhance our productivity as we rise towards 50% foreign control of our entire economy, simply demonstrates to many (perhaps not you Neil) how far we have fallen from any common sense ability to think for oursleves and take control our own destiny as a nation.

Oh Canada, we have NOT stood on guard for thee!

Andrew Coyne:

Between 1999 and 2005, the number of head offices in Canada grew by 4.2%; the number of head office jobs climbed by 10.7%, to nearly 175,000. And where did most of that growth come from? Foreign-owned firms. … ”Foreign firms add staff because they do as much, if not more, research and development than domestic firms.”

Another StatsCan study cites a large body of research confirming that “foreign owned plants operating in Canada exhibited higher labour productivity, and tended to adopt new advanced technologies, earlier and faster than their domestically owned counterparts.”

Clearly there is some disagreement on the interpretation of statistics from the same source and time period.

- — - >

Income Trust Buyouts Gaining Pace
Globe and Mail
“The private equity takeover binge that’s fuelling stock price jumps accelerated in Canada in the first quarter of the year, when buyout firms snapped up companies worth $5.1-billion.“
– — - -
Foreign ownership in Canada is somewhere around 40%. Foreign ownership in the U.S. is around 6%. Of THAT 6%, about 6% is owned by Canadian firms.

Stats Can has statistics up to 2004 available online and the foreign ownership numbers (about 32% foreign ownership in 2004) have increased dramatically since then.
– — - -
As the Trust tax changes have now accelerated the foreign takeovers, here are a few links that may provide some insight for you:
– — -
Manulife’s CEO calls for action on foreign takeovers — he said, Canada is in a more vulnerable position.“The world is awash with capital,” he said. “We are a small country with a relatively small population. Canadian companies typically aren’t of a size to be global players. “:
http://www.cbc.ca/money/story/2007/05/03/dalessandro.html
– — -
“Corporate concern over this wave of takeovers has been expressed by such respected figures as Onex Corp. chief executive officer Gerry Schwartz, Peter Munk of Barrick Gold Corp., Manulife Financial Corp.‘s Dominic D’Alessandro, Royal Bank of Canada CEO Gordon Nixon and Alberta oil and gas mogul Dick Haskayne.“
http://www.thestar.com/article/215607
– — -
“No other developed country has, or will, allow foreign ownership to happen to the extent that it has happened in Canada.“
http://www.vivelecanada.ca/article.php/20050110090043807

We’re a long way off from being “dominated and controlled” by foreign owners. As well, domestic owners want the same profit as foreign ones from their investments. I think you’re romanticizing Canadian ownership.

I’m wondering what you mean by “policy”. If it is government policy, then I’m not sure how foreign takeovers will have any effect. If it is corporate policy, this will continue to be based on maximizing profit for shareholders — what is this bit about “people’s needs”? More romanticizing?

The point of the post was that the trusts being taken over were not being run as efficiently — because of their tax-free status they didn’t need to be. Whether US-based management or Zimbabwean-based management can turn these inefficient organizations around is of no one’s concern. You’re still just as free to buy the units.

Canada has given control of our vast natural gas, our oil and each year an unprecedented and increasing number of businesses over to foreign control.

The facade of sovereignty is wearing thin as we dumb down to the lowest common denominator and move to a NA currency (the Amero) under US fed control.

IMO, Canada is sovereign in name only and has politicians who seem hell bent on completely selling us out!

Maybe the rates will change, but if the vaunted efficiency thing works out, it could lead to even more business and, by extension, tax revenue.

As long as “efficiency” isn’t just a code-word for massive layoffs.