Level of foreign ownership unclear in energy sector . . .
Posted: Sun Jan 24, 2016 3:02 pmLevel of foreign ownership unclear in energy sector as PM seeks more cash: memo
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By: Andy Blatchford, The Canadian Press Posted: 01/22/2016 3:29 PM | Last Modified: 01/22/2016 4:40 PM
OTTAWA - Prime Minister Justin Trudeau's sales pitch Friday to attract more foreign investment to Canada comes as the government struggles to get a handle on exactly what foreigners own in the country's crucial oil and gas sector.
Documents obtained by The Canadian Press show the Finance Department only had a "rough estimate" last year on foreign ownership in the energy sector — a key destination for investment from abroad.
The February 2015 briefing note, addressed to deputy finance minister Paul Rochon, estimated 40 to 50 per cent of the sector is owned by foreign investors.
"A significant amount of foreign capital was brought into Canada to expand oil and gas production," said the document, obtained by The Canadian Press under the Access to Information Act.
"Unfortunately, there are no precise data on the foreign-owned share of the oil and gas sector."
Statistics Canada says foreign holdings in the country have increased in recent years in general, including a gain of 5.8 per cent from 2013 to 2014. The total foreign holdings hit $361 billion last year, which the agency said accounts for almost half of all direct investment in Canada.
When asked about the lack of precise information for the oil patch, a spokesman for the Finance Department referred to data collected by Statistics Canada under the Corporations Returns Act. The latest available data is for 2012, showing foreign control over 36.7 per cent of the oil and gas sector.
Foreign investment has at times been a contentious issue in Canada and the former Conservative government wrestled for years to find a policy mix that would make everyone happy.
The Tories, however, ended up sending mixed signals by blocking the takeover of Potash Corp., and changing the rules for state-owned enterprises after allowing a Chinese-owned company to buy Nexen Energy.
On Friday, Trudeau used the global stage at the World Economic Forum in Davos, Switzerland to try and reel in more foreign money to help Canada's limping economy, which has suffered a big punch from falling commodity and oil prices.
"Our government understands that global trade and foreign investment are key drivers of economic growth and important sources of new jobs," Trudeau said Friday.
"This will be a key priority for us."
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[ http://www.winnipegfreepress.com/canada ... 40571.html ]
By: Andy Blatchford, The Canadian Press Posted: 01/22/2016 3:29 PM | Last Modified: 01/22/2016 4:40 PM
OTTAWA - Prime Minister Justin Trudeau's sales pitch Friday to attract more foreign investment to Canada comes as the government struggles to get a handle on exactly what foreigners own in the country's crucial oil and gas sector.
Documents obtained by The Canadian Press show the Finance Department only had a "rough estimate" last year on foreign ownership in the energy sector — a key destination for investment from abroad.
The February 2015 briefing note, addressed to deputy finance minister Paul Rochon, estimated 40 to 50 per cent of the sector is owned by foreign investors.
"A significant amount of foreign capital was brought into Canada to expand oil and gas production," said the document, obtained by The Canadian Press under the Access to Information Act.
"Unfortunately, there are no precise data on the foreign-owned share of the oil and gas sector."
Statistics Canada says foreign holdings in the country have increased in recent years in general, including a gain of 5.8 per cent from 2013 to 2014. The total foreign holdings hit $361 billion last year, which the agency said accounts for almost half of all direct investment in Canada.
When asked about the lack of precise information for the oil patch, a spokesman for the Finance Department referred to data collected by Statistics Canada under the Corporations Returns Act. The latest available data is for 2012, showing foreign control over 36.7 per cent of the oil and gas sector.
Foreign investment has at times been a contentious issue in Canada and the former Conservative government wrestled for years to find a policy mix that would make everyone happy.
The Tories, however, ended up sending mixed signals by blocking the takeover of Potash Corp., and changing the rules for state-owned enterprises after allowing a Chinese-owned company to buy Nexen Energy.
On Friday, Trudeau used the global stage at the World Economic Forum in Davos, Switzerland to try and reel in more foreign money to help Canada's limping economy, which has suffered a big punch from falling commodity and oil prices.
"Our government understands that global trade and foreign investment are key drivers of economic growth and important sources of new jobs," Trudeau said Friday.
"This will be a key priority for us."
MORE:
[ http://www.winnipegfreepress.com/canada ... 40571.html ]