(By The CP) -- A major government program unveiled Monday to encourage Canadian ownership of domestic industry would concentrate on future business rather than trying to buy back control of existing industries.
Finance Minister E. J. Benson emphasized Canadian control of future industrial growth after presenting Parliament with long-awaited legislation to establish a Canadian Development Corporation.
It would channel $2 billion in government and private funds into development of Canadian industry.
Mr. Benson told a news conference it was never his idea that the CDC--a political idea for a decade and Liberal party policy since 1963--should be an instrument to buy Canada back.
Rather, he said, the CDC would be a major new source of investment funds to finance developments where large amounts of money are needed.
He mentioned new gas and oil pipelines, satellite communications, industry dependent on new technology, resources, northern development and "industries where Canada has a special competitive advantage."
CALLED FUND SOURCE
A statement from his office described the CDC as a large- scale source of funds to help establish new enterprise, encourage growth and efficiency in existing companies and generally "help shape and secure future Canadian enterprise."
In the same vein, Mr. Benson stressed that the CDC would be a private corporation rather than a state agency and "its activity will involve close relationships with the business and financial community." It would be independent of Parliament, he said.
The CDC would be financed initially by federal funds and its first holdings would be existing Crown ownerships in petroleum, transport, uranium and chemicals.
Eventually, however, control of the giant holding corporation would be spread widely through a public offering of shares to Canadians, reducing the direct government interest to a minimum of 10 per cent.
It would be several years before individual Canadians could buy shares, probably at $5 a piece.
The CDC's investment in private companies would be substantial, but probably short of full-control--"a major share- holder in private corporations, but not necessarily a majority shareholder," said Mr. Benson.
BRINGS PROTESTS
The emphasis on future investment in tandem with private business and the stress on the CDC as a privately-owned holding company immediately provoked protests from those who had expected a major instrument for extending Canadian control of Canada's economy.
New Democratic Party Leader T. C. Douglas described the bill as a "disastrous retreat" from the original idea proposed in 1963 by Walter Gordon, a Liberal economic nationalist who was then finance minister.
"It sounds like a complete sellout to private enterprise," he added.
Mr. Benson turned aside questions about how CDC investment policies might be affected by future government policy-now in preparation-on limits to foreign ownership of specific industries, such as uranium.
But he said the CDC should not be a tool of government policy.
CDC's first consideration in deciding how to invest money, he said, should be the ordinary private consideration of whether it would be a good business investment.
Secondly, he added, the decision should be based on whether it would be an investment that would be of benefit to all Canadians.
Therefore, such decisions would depend on the persons running the corporation--18 to 21 directors, all Canadians and most Canadian residents who are "able and experienced entrepreneurs."
He refused to discuss who the cabinet is considering to head the CDC. The corporation initially would be financed by $250 million in government funds--$100 million in return for ownership shares in the first year and $75 million each in the next two years. There would also be authority for government loans of up to $100 million.
Ultimately, authorized capital of the corporation would be $2 billion, half in preferred ownership shares and half in common voting shares. No individual or group would be permitted to hold more than three per cent of the shares.
The government would own all the shares at first. It would gain further share holdings by transferring its ownership in four or five corporations to the CDC-estimated unofficially as worth a further $300 million at least.
These corporations are Polymer Corp. Ltd., Sarnia-based chemical company; Eldorado Nuclear Ltd., producer, refiner and marketer of uranium; Northern Transportation Co. Ltd., which operates in the Western Arctic; and the 45-per- Cent federal holding in Panaretic Oils Ltd., northern exploration and development company in which about 20 petroleum companies also have an interest.
Northern Canada Power Commission, which operates electric power stations, water and sewage systems in the north, might also be added to the CDC portfolio.