Can you say Sponsored Branch Plant?

An organization that 99.9% of Canadian have never heard about is proposing to sell off the remainders of Canadian business to anyone who wants it.

The Competition Policy Review Panel, that the Harper government appointed, is mandated to identify the changes Canada needs to make to prepare for full-scale North American economic integration. Of course that is not its official mandate but that is what they are planning to do.

On June 26, 2008 the Panel, headed by Red Wilson, former CEO of BCE - a company looking for a buyer - released its report to Harper entitled Compete to Win. The report puts forward a series of policy recommendations aimed at making Canada a more attractive destination for talent, investment and innovation, as well as a sweeping national Competitiveness Agenda based on the proposition that Canada’s standard of living and economic performance will be raised through more competition in Canada and from abroad. Greater competitive intensity in Canada will yield better products at lower prices, more jobs and higher earnings, stronger companies, and a stronger economy.

How will they accomplish these goals?

The report listed policy recommendations to the federal government which include:

• Amending the Investment Canada Act to reduce barriers to foreign investment by increasing review thresholds; reversing the onus to require the government to demonstrate that an investment would be contrary to the national interest before disallowing a transaction; increasing transparency and predictability; and preserving a distinct approach for the cultural sector while also initiating a broad review of Canada’s cultural policies;

Which means that any merger or acquisition by an foreign company of a Canadian company no longer has to benefit Canada or Canadians.  We fund and build the companies, provide generous tax breaks and write-offs and anyone can just come in a sweep it away.

• Liberalizing investment restrictions in the Canadian air transport, uranium mining, and telecommunications and broadcasting sectors, and removing the defacto ban on mergers in the financial services sector;

Which means that our much-touted fiscally conservative, well run, adequately liquid, banks and other institutions can just be bought up by the likes of Bear Stearns, CitiGroup and Leahman, those stalwarts of fiscal responsibility.  No doubt that they could use part of their $1 trillion US government bailouts to finance the purchase. And it still doesn't have to be a net benefit to Canada.

• Updating and modernizing the Competition Act in line with best practices internationally;

Given the current state of the world economy you may have to look to India or Burundi to find some best practices!

• Creating a Canadian Competitiveness Council to give voice to and advocate for competition in Canada, and ensure sustained attention by governments on national competitiveness.

As long as the Council is made up of the CEOs of Bell, Ford, Scotiabank and TekCominco?

The report includes the following statement: “One of our key findings is that Canada needs to get its act together as a nation.”

 I agree.  And the first thing we should agree on is that the Harper initiative to sell off Canada should cease to exist.