Canadian volte-face on foreign investment

Press, 3 July 1985, Page 34

Canadian volte-face on foreign investment

Canada, long worried about foreign investment, particularly from the United States, is now encouraging overseas firms to invest in the country. On June 30, the Investment Canada Act came into effect, encouraging overseas capital and technology into the country. Gone is the Foreign Investment Review Agency, and in its place is a new agency, Investment Canada, which will promote Canada as a safe and profitable place in which to in-

vest. Investment Canada will help investors by helping to identify investment opportunities and partners, and other information potential investors need. Some safeguards on foreign capital are retained. Purchases of Canadian businesses with investments of more than $Can5M are subject to review, and the Investment Canada Act provides for special consideration for investments by non-; Canadians in cultural industries such as film production, and book and

newspaper publishing. Mr James Ganderton, Acting High Commissioner for Canada in Wellington, said that under the new act all that was required was a simple notification for most investments by non-Cana-dians. Help available to wouldbe investors from the analysts of Investment Canada is supported by information available from the Canadian High Commis : sion in Wellington, and the Canadian Consulate in Auckland, Mr Ganderton said.