BHP Rejection Proves Value of Public Pressure and Need for Investment Act
Overhaul

SASKATOON, Nov. 3 /CNW/ - The federal government's decision to stop the sale of Potash Corporation of Saskatchewan to BHP Billiton is a victory for public and political pressure, say United Steelworkers. And it shows the need to rework the Investment Canada Act, the union representing most Saskatchewan potash workers says.

"The credit for halting this bad deal goes to the potash workers, the people of Saskatchewan and the Provincial and Federal NDP," says USW Western Canadian director Steve Hunt. "They pushed their reluctant governments to oppose a deal that both were initially inclined to simply rubber stamp."

Hunt noted that without popular and political pressure, Premier Brad Wall's Sask Party government would likely have stuck with its initial "let the markets decide" position.

USW's National Director Ken Neumann noted that Stephen Harper's federal Conservatives were also clearly ready to approve this deal, as they have hundreds of previous bad deals, until they saw the huge groundswell of opposition.

"This is a victory for the people who work in the potash mines, the people of Saskatchewan, who stood to lose some $2 billion a year in revenues and the people of Canada who are not saddled with yet another bad deal with a foreign multinational corporation," said Neumann.

"Clearly we need an open and transparent process for reviewing and approving these foreign takeovers," added Neumann. "Even though the people of Saskatchewan overwhelmingly disapproved of the sale and even though they own the resource, the Investment Canada Act currently provided no avenue for hearing citizens' legitimate concerns."

Neumann called for the passage of the federal NDP's bill to amend the Investment Canada Act. "There should be no more secret deals, and no more takeovers that are clearly not in the 'net best interest' of Canada."

"I'd like to think that we're learning from bitter experience with the previous deals that allowed Vale to purchase Inco or that gave US Steel control over Stelco," concludes Hunt. "Unfortunately, good policy seems to only happen when extreme public and political pressure elevates a decision to a crisis level.

"We deserve better from these governments."

For further information:

Ken Neumann, 416-558-2510
Steve Hunt, 604-816-2554