Nevvs Release
IMEDIATELY
For release: Imasco Limited
Contact: Victor M. Drury - (514) 937-9111 4 Westmount Square
Louise Rousseau - (514) 937-9111 Montreal, Canada
HU 2S8
P.O. Box 6800
Montreal, Canada
H3C 31.4
1514) 937 9111
Cable: eTelimascD
Telex: 05-24178
montr6al, August 5, 1982 - Imasco Limited announced that it is
more likely to invest its future earnings outside of Canada as a
result of not having received a favourable ruling on its
Application for Exemption from the provisions of the Foreign
Investment Review Act. The Ron. Herb Gray, Minister
of Industry, Trade and Commerce advised the company of his
decision on Tuesday, August 3.
In commenting on Mr. Gray's decision, Paul Par6, Chairman and
Chief Executive Officer of Tmasco, said: 'It makes no sense to
me to force Imasco to invest millions outside of Canada to meet
its growth objectives. Imascols funds for new investments are
in Canada through the efforts of some 11,000
primarily earned
Canadians. For many years, the Company has and continues to be
controlled in Canada by its board of directors and management
team. Their consensus is that the future growth of the Company
be primarily in Canada.*
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imasco Limited applied to the Minister for an exemption from the
Foreign Investment Review Act in December 1980. This followed a
letter of December 8, 1980 from the Minister to Mr. L. E. Ricard,
president of the Company, which stated in part:
... the determination of non-eligibility or eligibility of
any corporation depends upon the eligibility or
non-eligibility of the person or persons who in fact
control the corporation. If, as you state, Imasco Is In
fact controlled by Canadians then the corporation Is not a
non-eligible person for purposes of the Act. But of
course it is up -to Imasco to show, if called upon to do
so, that this is indeed the case."
The Foreign Investment Review Act allows the Minister to exempt
from review any corporation which is In fact controlled by
Canadians. As of March 31, 1981, 72 exemptions had been granted.-
Imasco and the financial community which monitors its performance
have repeatedly described the ruling on the exemption as one of
the most Important strategic factors affecting the future growth
of the company In Canada.
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Commenting further on the Minister's decision, Mr. Parg said:
*It has now been over a year and a half since we applied for our
exemption. Since then, no one In the Agency or in the Department
has challenged us on any of the facts we presented which we feel
demonstrated beyond any doubt that Imasco was controlled by
Canadians . Furthermore, as a result of our experience and Mr.
Gray's recent decision we are convinced that the manner in which
the Act is currently being interpreted is contrary to Its
original purpose and in many instances is detrimental to the
economic interest of Canada. For example, since applying for our
exemption, the number of imasco employees in the United States
has risen from 250 to over 28,000. Over the same period the
moneys-that we have invested in the U.S. have exceeded.
$150,000,000 while those invested here totalled only
$12,000,000. We cannot see how this is providing economic
benefit to Canada. Surely Mr. Gray has missed an opportunity to
liberate and focus the creative economic energies of corporations
like ours on further Investment In Canada. This Is particularly
disappointing when the country is experiencing such difficult
economic times-*
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Commenting on Imascols course of action following Mr. Gray's
decision, Mr. Pari said 'Despite this setback Imasco I resolve to
invest in Canada is undiminished and we will now direct our
efforts towards ensuring that changes are made to the Act go that
it may more effectively provide economic benefits to all
Canadians. We are determined to make our case experience known
to Canada's legislators and ask that a more realistic definition
of control in fact, which would include a.concept of "Canadian
Corporate Citizenship*, be incorporated in the next revision of
the Foreign Investment Review Act.'
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BAT Industries document for Province of British Columbia 13 April 1999