Thursday, October 26, 2006
We have seen a number of prominent Canadian companies go into foreign ownership : INCO, Hudson Bay Company, Falconbridge, Sleeman Brewery, Intrawest, Fairmont Hotels, Dofasco, Domtar, CP Ships and Vincor. I believe this trend is undermining our ability as country to control our economic destiny. There is the argument that companies need to be large enough to survive and grow in to days global competitive market. There is also the rationalization that the jobs will remain in Canada with a level of management and that we will keep the spin off jobs that boost other sectors of our economy. However, I believe that as the final ownership leaves the country so does the final decision making power and the profits that will effect future generations for our country. Investment decision about where those profits will be used to move the company forward will not have the same Canadian flavour to them. In the long run this is a major loss to Canada.
Is it not time for us to revisit and review our regulator process dealing with take-overs if Canada is to maintain control over decision making that effects its long term economic viability?