Federal Politics: TSX Deal Not In Canada’s Best Interests Says Peter Julian

By on July 11, 2011

Submitted: New Democrat Industry Critic Peter Julian called on the Conservative government to hold full, public and transparent consultations on the proposed takeover by the London Stock Exchange (LSE) of the TMX group, the owner of the Toronto Stock Exchange (TSX).

Peter Julian NDP MP

“This deal as it stands now is not in the national interest,” said Julian. “If TMX shareholders approve this merger tomorrow, the federal government must step in and hold full public hearings. We need proper oversight of this deal so Canadians can have confidence that this will truly benefit Canada.”

Julian pointed out that the deal affects many provinces, including Ontario and Quebec, which have launched their own public hearings. They had heard warnings from stakeholders about diminished Canadian control over Canada’s largest stock exchange because the new board would have a minority of Canadian directors.

“Canada’s banking system weathered the global recession because of strong national regulations that kept it from falling prey to the risky practices of major US and UK banks,” said Julian. “Canada’s stock exchange needs to be seen as a strong national pillar of our financial system with systems in place to ensure continued Canadian control over the exchange.”

“While this particular deal is not in Canada’s best interests, New Democrats will always be willing to examine other proposals,” concluded Julian. “We must ensure that any proposal strikes a strategic balance between inviting foreign investment, protecting jobs and maintaining control over our economy.”

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