Exercising Sovereign Options

How's this? Opposition parties in Canada's House of Commons applauding a (Conservative) government move? What a totally unexpected, utterly refreshing remove from the norm, of raucous chidings, juvenile debates and injudicious accusations against each other. This gives Canadians a sneak preview of how Parliament could - if our legislators were sufficiently unpartisan and intellectually honest - work to the best advantage of our country.

Of course is also takes a government body astute enough to make decisions that could be lauded by all.

But making everyone happy isn't exactly what governing is all about. It is about making considered decisions that reflect well for the future of the country. Unfortunately, no government is omniscient, and sufficiently self-abnegating to consider first and foremost what steps it might take to benefit the entire country, and still maintain friendly relations with the international community.

Canada is hard put at times to assert her legal and ethical and sovereign options against overtures by the administrations of other countries.

But when it comes to a situation where, as has happened with a huge American corporation which produces armaments expressing a concrete interest in buying out Canada's premier aerospace firm, what should be considered first and foremost is the exercise leading to securing Canada's future in space technology.

So, good news that Industry Minister Jim Prentice has concluded his fact-finding deliberations and reached the decision to inform Alliant Techsystems Inc. that he is "not satisfied that the sale of MacDonald, Dettwiler & Associates would be "likely to be of net benefit to Canada".

That unsurprising, but gratifying advisement comes hard on the heels of criticism in the wake of a feared done-deal where Alliant Techsystems Inc. was preparing to offer $1.325-billion for MDA, to the great satisfaction of its shareholders. Former federal scientists, current employees of MDA, academics, parliamentarians of every stripe, and the public at large raised a furore over the pending sale which would see the pride of Canada's space-based technology leave the country.

Offensive also in the sense that millions of taxpayer-funded money has gone into the enterprise. Critical in that our state-of-the-art Arctic observation satellite, Radarsat 2, along with such advance robotic technologies as the Canadarm (space arm) and the Special Purpose Dexterous Manipulator, would all fall into the decision-making hands of a large American firm that contracts out to the Pentagon.

The U.S. military would make very good use of Radarsat 2, but in so doing, any further use by Canada would be off limits.

Which in turn would compromise this country's national security, at a time when the government understands the critical nature of guardianship over the Canadian Arctic and the Northwest Passage. Mr. Prentice made it abundantly clear that his government views Canada's national security interest might be set aside, in favouring this buy-out.

In any event, there's another apprehension at play here as well; that Canada's traditional corporate interests have been gradually hollowed out by foreign takeovers.

This is an entirely legal move by Canada, exercising its authority under the Investment Canada Act which bids government to carefully review sales of Canadian companies to foreign interests to ensure that Canada's interests have not been overturned. On the other hand, it represents a careful balancing act, where government acting in such a manner might be seen to be protectionist and anti-foreign investment.

This is not yet a done deal by any measure. Corporate interests mitigate that deal-making continue, and there will no doubt be further overtures. And if any segment of the Canadian population is particularly displeased by this government initiative to ensure Canada's interests are not displaced in favour of a foreign corporate entity and government, it is the shareholders of MDA who see a huge lollipop of generous return on their investment evaporate.

We can only hope the government will not retreat from its position, claiming its fears were unfounded, and that, should the sale be concluded, Canada will still reap benefits in use of Radarsat-2, continued employment within Canada, and investor confidence retained. But it doesn't seem likely that will occur. A commitment has been made by this government to retain this vital Canadian space research arm and its outstanding technologies.

There seems to be little doubt too, that the government will be obliged to make further commitments in the face of retaining MDA within Canada to ensure Canada's ongoing interests are served. This government will also have to commit to further funding to ensure that Canada's space technology interests can be advanced. It is in our best interests on many fronts, the most critical being assertion of Arctic sovereignty.

And should Canada in due time wish to expand its interests in space, we will have the basic infrastructure in place. We have the growing expertise, we have the human capital, we have a strong economy in place, and we do have aspirations. the country has proven, through its many excellent space satellite technology companies that we have a product that other countries recognize the value and use of.

It's reassuring that this government is capable of reaching conclusions to the greater benefit of the country. Particularly an administration that its adversaries - and there are many - claim is devoted to the free market concept above all, one which will go out of its way to give this country's assets away, simply for the asking. Depending, needless to say, who is doing the asking.