The CEO Poll: Keep resources Canadian owned
CEOs say foreign–ownership rules for natural resource firms should be tightened.
Author:
Angelina Chapin
Date: December 6th, 2010
Publication: Canadian Business Online
The federal government's recent decision to block the takeover of
Potash Corp. by Australian mining company BHP Billiton has sparked much
debate about which types of Canadian industries should be protected from
foreign buyers. Canadian CEOs agree that natural resource companies
should stay in Canadian hands, although they don't feel the same way
about companies in other industries.
In a recent COMPAS Inc. poll of Canadian CEOs, the most popular
viewpoint was that companies involved in mining, oil and gas, and other
natural resource extraction should have restrictions on foreign
ownership tightened. One CEO put it simply: "Let's keep what's left of
our natural resource base intact for the benefit of Canada."
When asked about farmland and steel, the most popular response was
to leave current foreign–ownership regulations unchanged. However, a
sizable minority disagreed, saying that foreign–ownership regulations
for those sectors should be tightened.
In terms of the banking and financial sector, CEOs felt that the
current foreign–ownership restrictions should be maintained. This was a
notable change from the panel's views in 2006 — before the financial
crisis and recession — when more execs were in favour of loosening
restrictions in the sector.
When it comes to airline and telecommunications companies, the
majority want to loosen up foreign–ownership rules. "Some of the
restrictions have been placed to protect inefficient operations," says
one exec. "Phone services are better and cheaper in the U.S., and
airline prices are also lower. Protectionism in this area did not stop
Air Canada filing for CCAA." In terms of the radio and television
industries, the number of execs who thought there should be fewer
restrictions edged out those in favour of the status quo.
Regardless of their viewpoints, many felt that the government should
clarify its position on foreign buyouts for the good of corporations
and shareholders. "Canada needs to decide what's strategic to the
national interest and security of supply," says one exec.
To view complete results and additional polls, please click here.
The BDO Library holds news bulletins, newsletters, budget reports both provincial and federal, articles and tip guides on an extensive range of topics in accounting services. Our publications also touch upon financial recovery, risk management, family business, and litigation/forensic accounting.
