Brian Mulroney says Canada needs foreign investment for future growth

CALGARY – Former Prime Minister Brian Mulroney says Canada cannot function without foreign investment.

He made his remarks just days after Ottawa’s surprise rejection of Malaysian state-owned firm Petronas’ $6-billion takeover of Progress Energy Resources (TSX:PRQ).

Mulroney says the oil and gas industry needs huge amounts of foreign capital to develop, and those international relationships also allow Canadians to spend their money abroad.

While in office, Mulroney scrapped the Foreign Investment Review Agency in 1985 and brought in the Investment Canada Act — the legislation under which Petronas was rebuffed and China National Offshore Oil Co’s controversial $15.1-billion takeover of Nexen Inc. (TSX:NXY) is currently being weighed.

He says the current government is giving itself some running room to adapt to changes that have taken place regarding foreign investment over the past 25 years.

Meanwhile, Mulroney didn’t say which candidate he favours to win the U.S. election next month, but says Republican contender Mitt Romney will likely approve the contentious Keystone XL pipeline from the Alberta oilsands to U.S. markets right away.