Canada at no risk of being ‘hollowed out’

Canada is in no danger of being “hollowed out” by foreign takeovers, so Ottawa should reduce barriers and encourage a greater inflow of outside capital, one of the country’s top tax experts says.

University of Calgary economist Jack Mintz published an analysis Tuesday that suggests Canadian companies are investing far more money in other countries than foreign firms are spending to buy Canadian firms. Essentially, Canada is hollowing out other countries rather than being hollowed out itself, he said.

The report comes in the midst of a widespread debate about the merits of a proposed takeover of Canada’s biggest fertilizer firm, Potash Corp. (POT-T145.40-2.30-1.56%) by Australian mining giant BHP Billiton (BHP-N78.201.822.38%)

Prof. Mintz’s analysis shows that Canada ranked 46th among 92 countries when it comes to the amount of foreign direct investment coming into the country (measured by a proportion of gross domestic product, on average from 2004 to 2008). That suggests there is lots more room for foreign investment here.
http://www.theglobeandmail.com/report-on-business/economy/growth/canada-at-no-risk-of-being-hollowed-out/article1744365/

One big bunch of ....
There is no investment. It is a purchase. These guys will say and rationalise anything. Harper is the result.

Broken promises mark foreign mining deals
Both Mr. D’Allesandro and Mr. Manley believe that BHP’s attempted acquisition of a Canadian global champion such as Potash Corp. may finally invoke a different response from the federal government rather than its usual takeover rubber stamping and willingness to allow vague and difficult to enforce commitments.

“If I were in BHP Billiton’s position, I would not presume that this is a done deal. I would presume that there is a lot of work to be done to convince everybody. Any day is a potential election day and in that environment this could be easily politicized,” Mr. Manley said.

When reviewing BHP’s application, Ottawa might also want to consider comments made in 2008 by BHP’s chairman at the time, Don Argus. Calling on his fellow Australians to continue investing in domestic mining assets, he cautioned that Australia’s resource sector was at risk of becoming globally irrelevant – just like the mining sector of another former British colony.

“If we fail to remain competitive,” the BHP chairman warned, “Australia will incur a substantial opportunity cost and in the worst-case scenario, our resources will fall into overseas hands and we will also become a branch office – just like Canada.”
http://www.theglobeandmail.com/globe-investor/potash/broken-promises-mark-foreign-mining-deals/article1742457/page3/

Where is the opposition on this? Certainly Ralph Goodale shouldn't be there. Where is Iggy on this. Is he leaving it all to Ralph?

What else would he say?

Saskatchewan should re-nationalize the Potash Corp. It was the Sask NDP who built the company when private corporations wouldn't touch it. It was Grant Devine, Brad Wall's Conservative forebear, who privatized it. Now Wall will watch while it is gobbled up, and Sask loses billions in taxes and royalties.

The NDP will regain power over this.

Iggy doesn't have to say anything. But in the end when BHP takes over, there should be something to say. The Bloc won't make a stink.

The NDP will only smear the Cons and Libs.

And Ralph will maintain his kingdom in the prairies. So Iggy will not do a thing.

Mintz was on Power & Politics this week espousing Harper's U of C ideas.

Lingenfelter says in 1989, then Conservative premier Grant Devine's government sold Potash Corp. for $630 million.

At that time, current Premier Brad Wall worked for the minister responsible for Crown corporations.

"In the same deal, Wall and Devine cancelled debt of $663 million, so we, the owners of the resource, under Brad Wall and Grant Devine, got rid of this company for nothing and sent a cheque for $32 million to the new owners of the corporation," Lingenfelter said.

http://ca.news.finance.yahoo.com/s/08092010/2/biz-finance-sask-ndp-leader-raises-sale-former-tory-government.html