As a result of their deliberations committees may make recommendations which they include in their reports for the consideration of the House of Commons or the Government. Recommendations related to this study are listed below.

Recommendation 1

That the Government of Canada introduce legislation amending the Investment Canada Act to reduce the current valuation threshold for prospective acquisition of control by either state-owned or state-controlled enterprises to zero, so that every transaction triggers a review, including a net benefit test and a national security test.

Recommendation 2

That the Government of Canada introduce legislation to amend the Investment Canada Act so that thresholds are reviewed on an annual basis.

Recommendation 3

That the Government of Canada review the provisions and administration of the Investment Canada Act to determine how to improve the treatment of intangible assets under the net benefit review process in the context of the knowledge economy, and report on its findings to the House of Commons Standing Committee on Industry, Science and Technology within one year.

Recommendation 4

That the Government of Canada protect strategic sectors, including, but not limited to: health, the pharmaceutical industry, agri-food, manufacturing, natural resources, and intangibles related to innovation, intellectual property, data and expertise.

Recommendation 5

That the Minister of Innovation, Science and Industry justify their decision whether or not a transaction is to Canada’s net advantage, that the Minister then explain the factors leading to this decision, and that the Minister make public the conditions imposed on a buyer in the case of a transaction involving a foreign investor.

Recommendation 6

That the Government of Canada encourage Canadian entities to keep ownership of intangible assets developed with federal funds, including intellectual property, by requiring, when appropriate, that they return moneys received from federal programs or subsidies in full or in part.

Recommendation 7

That the Government of Canada review its legislation framework and implement legal measures necessary to:

• Block any transaction that would undermine Canada’s national security by transferring a sensitive asset to a non-Canadian entity; and
• Require a Canadian business or entity holding a sensitive asset to notify the federal government thirty days before implementing the transfer of that asset to a non-Canadian entity.

Recommendation 8

That the Government of Canada immediately introduce legislation amending the Investment Canada Act to allow for the review of and the ability to prevent the subsequent takeover by a state-owned enterprise of a previously ICA approved acquisition of a Canadian firm or assets by a foreign privately owned corporation.

Recommendation 9

That the Government of Canada immediately introduce legislation amending the Investment Canada Act to compel the Minister to consult with the Canadian Security Intelligence Service, the Royal Canadian Mounted Police, and the Canadian Security Establishment in the national security process.