Federal agriculture minister Gerry Ritz says allowing an Australian company to buy Potash Corporation of Saskatchewan would have undermined Canada’s position as a global food industry player.
On Nov. 3, industry minister Tony Clement announced Ottawa would not allow a $38.6 billion offer from BHP Billiton to buy out the world’s largest potash company, arguing it did not meet the net benefit test for Canada.
The minister said he could not disclose why that judgment was made until a legislated 30-day period for a new offer has passed.
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However, the next day Ritz used an all-day House of Commons debate on the foreign investment review process to argue agriculture was part of the consideration.
He said Canada is in an ideal position as an exporter of both food and a strategic important fertilizer.
“It gives us a power and a strategic position in the global food supply to be a major supplier of both the inputs and our crop and livestock production,” he said.
“From a strategic point of view, we have that in spades in Canada.”
Ritz said letting control of the potash industry pass into Australian hands would have hurt Canada’s export interests.
“Under the net benefit (test), having someone different mine it certainly does make a difference in that Australia is a major marketer of a lot of the same foodstuffs that Canada has,” Ritz said.
“We are a volume producer and so is Australia. For it to be able to go to the Indias or Chinas of the world and say that it now controls their fertilizer too, I think that would have had a very detrimental affect.”
Ritz used his speech to criticize opposition MPs who had been relentless in attacking Saskatchewan’s 13 Conservative MPs for remaining silent on the issue during the past several weeks.
He said opposition MPs were playing politics because they knew it would have been inappropriate for government MPs to speak publicly while the issue was before government.
He said the Saskatchewan caucus had 17 private meetings on the issue with various players.
