The New Democrats are criticizing the Conservative government’s surprise announcement Friday to extend the review of a Chinese company’s bid to take over Canadian oil producer Nexen.
Industry Minister Christian Paradis issued a news release Friday night saying the government was extending its review. until Dec. 10.
Under the Investment Canada Act, the federal government has to review the bid to determine whether the takeover would bring a "net benefit" to Canada. The initial 45-day review period has been set to end Nov. 10.
"Extensions to the review period are not unusual. In general terms, the Act provides an initial 45 days for the review, which can be extended for an additional 30 days,” Paradis said in his release.
New Democrat MP Peter Julian laughed at the timing of the release. He tells The Canadian Press when politicians make announcements on a Friday night it's because they're scared of the public’s reaction.
Julian says it appears the government wants to approve the controversial $15.1-billion deal, but is trying to buy time because of growing public opposition.
The New Democrats say the federal review process has already been too secretive. Julian suggested that with the review now slated to run until mid-December, the plan may be to quietly announce approval for the deal sometime during the Christmas holidays.
"I think the way this government works and its lack of respect for the public means that they're going to be looking to rubber stamp it sometime during the Christmas season, hoping that public reaction will blow over,” he told CP in an interview.
State-owned China National Offshore Oil Co. (CNOOC) announced in July that it wanted to buy Calgary-based Nexen, which owns oil sands and shale gas. But immediately, concerns were raised about the idea of turning over Canada’s precious natural resources to a Chinese state-owned company.
The NDP has said the proposed deal raises many questions, including whether CNOOC will protect jobs and keep Nexen’s head office in Canada. As well, they say it’s unclear how Canada’s environmental standards will be enforced.
The NDP is also concerned about what the deal might mean for national security. Canada's spy agency CSIS warned in its annual report this year that foreign investment by state-owned firms can pose security concerns, though it didn't mention China specifically.
Prime Minister Stephen Harper has acknowledged the Nexen bid "raises a range of difficult policy questions."
CNOOC has already publicly pledged to keep Nexen’s head office in Calgary, seek a listing on the Toronto Stock Exchange and place $8 billion of its assets under the control of Nexen's management in Canada.
It has also promised to carry on Nexen's social responsibility programs in Canada and around the world.