Canada's PM promises to untie foreign investment rules

OTTAWA: Prime Minister Stephen Harper on Friday pledged to ease foreign investment rules in Canada's airline and uranium mining sectors, if re-elected.

Harper said at a campaign stop in easternmost Halifax that he would also hike the current threshold for government reviews of foreign takeovers to one billion dollars (Canadian, US) from 295 million dollars.

Restrictions on foreign ownership of Canadian banks and telecommunications firms however would not be lifted because "we believe the market is not ready" for that, said Harper.

The slacker foreign investment rules are aimed at "fostering open markets that ensure the best prices for consumers," Harper said.

"We are a party of free enterprise, free markets and free trade," he said. "But we also believe a government needs to know when to be able to draw the line when any foreign takeover would jeopardize our national security."

Under the Conservative plan an investment limit for outsiders in the airlines sector would rise to 49 percent from 25 percent.

In Canada's uranium sector, dominated by local firm Cameco and France's Areva, a cap of 49 percent would be lifted to allow majority ownership.