The federal government will spend $218 million over the next five years to create a new one stop agency to attract foreign investment. This announcement comes at a time when foreign governments are souring on international trade agreements.  For good measure, Ottawa should also consider improving its failed immigration policies to attract high net worth investors.  In doing so, it can reclaim its role as a dominant player in the residence through investment industry.

Until 2014, the federal government gave entry-level millionaires a pathway to residency and ultimately, citizenship in Canada through its Canada Immigrant Investor Program (CIIP). The scheme operated largely on the interest income earned from investors' funds. The program benefits to Canada peaked during the 1990s, when interest rates were high.  The program was terminated under much controversy in 2014 by the previous government which despite compelling favourable studies, claimed it provided no benefit to Canada. It was replaced in February 2015 with an unpopular  Immigrant Investors Venture Capital Pilot Program (IIVCP) which the current federal immigration minister has publicly stated is practically non-existent due to the lack of interest from international investors.

As a consequence of this failed policy, Canada is losing out on attracting the world`s most successful business people and their families who otherwise would choose to settle here.  British Columbia and to a lesser extent, Ontario is losing out on transfer payments being paid to Quebec for immigrant investors applying under its program which statistics show only 16% ultimately reside in the province.

The way out of this morass is clear. The Trudeau government should immediately get on with the task of re-designing the IIVCP.  It just needs to create the right policies and a re-structured program that will succeed in attracting carefully chosen high net worth business people who will bring billions of dollars to Canadian businesses and create new businesses that will in turn create more jobs.

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The content of this article reflects the personal insight of Attorney Colin Singer and needs no disclaimer