Investment of capital to create wealth in a country is critical for nation building. Not all capital needed to build the economy and create jobs is derived from within. Foreign investment is also critical to the economy.
Canada’s Foreign Investment Review process is triggered when a significant investment is made by a country or foreign corporation that might compromise the sovereignty of Canada’s economy. Such was the case with the Saskatchewan Potash purchase that was rejected last year.
Currently, Caterpillar Ltd is closing the Electro-Motive company operations in London, Ont. and moving their operations to the USA.
Unfortunately, 450 workers in London were laid off and the opposition parties are using this example as an attack on our government for not protecting Canadian workers. You need to know the rest of the story.
Myth: Electro-Motive was a Canadian company that was sold to the American company, Caterpillar.
Truth: Electro-Motive has been owned by several American companies since 1930. In fact, Electro-Motive has been a Canadian subsidiary of different American companies for over eight decades.
Myth: The federal Government gave money to Electro-Motive.
Truth: No federal Government money (Conservative or Liberal) has been given to Electro-Motive.
Myth: The Prime Minister visited the EMD plant a few years ago to announce a tax break for Electro-Motive.
Truth: The PM visited the Electro-Motive plant and announced a tax change that would make it more affordable for Canadian rail companies to purchase the newer, better and more environmentally-friendly locomotives. This was a tax write-down for the customers of companies like EMD, not for EMD.
The government of Canada cannot arbitrarily force a foreign company to keep their operations in Canada but we can keep corporate tax rates competitive to retain and attract foreign investment.
Your government will continue to implement the Economic Action Plan to grow our economy and create jobs. Yes, 450 jobs were lost in London but, since the economic downturn, our plan has created 580,000 jobs – of which 90 per cent were full-time – and we will continue to do more.
