Is Canada now becoming a hollowed out shell? 'Quotes from Australia'.

REGINA - Saskatchewan is ramping up its effort to convince Ottawa to block BHP Billiton's US$38.6-billion bid to acquire PotashCorp by urging the federal government to heed a warning from the company's former chairman.

Premier Brad Wall noted Monday that former BHP chairman Don Argus warned of too much foreign control of resources in his home country of Australia.

Wall pointed to a 2008 article by the Hellenic Shipping News, in which Argus was quoted as saying: "If we fail to remain competitive, Australia will incur a substantial opportunity cost and, in the worst-case scenario, our resources will fall into overseas hands and we will become a branch office — just like Canada."

In a May 2009 edition of the Melbourne Herald Sun, Argus was quoted as saying "Canada had forfeited its resources sector, much to detriment of the country."

Wall said Argus's words "should give the federal government plenty of pause" as it considers the deal.

"He's advising his Australian government to not be like Canada because it's his view that Canada has become a branch plant economy when it comes to these takeovers. I'm not sure I share that view, but I do believe that it's important for the federal government to say 'no' to this deal for some of those same reasons," Wall said.

The Saskatchewan government came out firmly against BHP's bid last week, saying it does not provide a net benefit to the province or the country.

The premier said he believes Saskatchewan could lose between $3 billion and $6 billion in revenue from taxes and royalties if BHP's bid is successful. And he said Canada's strategic interests would be put at risk if it sold most of its potash industry — which accounts for about a third of the world's supply of the mineral used in fertilizer — to an international company.

Wall said it's a takeover attempt like no one has ever seen in Canada and would continue a trend that has already seen much of the country's steel and mining sectors swallowed up by powerful multinationals.

He brushed aside criticism that has flowed from many sources since he announced the province's decision.

"Countries have to make strategic decisions in the interest of certain sectors and resources. I think most companies respect that," said Wall.

BHP said it remains confident it can win over the province and get the deal approved by Ottawa.

BHP spokeswoman Bronwyn Wilkinson said in a phone interview from Vancouver that it would not be considered a "branch office."

"We would structure our business so that there wouldn't be any tax deferral, which generally an investor would be entitled to. So there wouldn't be a reduction in revenues for the province on our purchase of PotashCorp. We would locate the global potash headquarters in Saskatoon. Our potash management team would live there, would pay taxes there, would raise their families there," Wilkinson said.

"From our view, PotashCorp has actually drifted away from its Canadian roots and BHP Billiton will return control of the business to Saskatchewan from Chicago."

Saskatoon-based Potash Corp, of Saskatchewan Inc. (TSX:POT) is a corporate stalwart in the province. It was created by the provincial government in 1975 and privatized in 1989.

Last week, Prime Minister Stephen Harper pointed out that only 49 per cent is owned by Canadian shareholders. Several of its senior executives, including CEO Bill Doyle, spend most of their time at its offices in Chicago.

PotashCorp is promising to relocate some of its top executives to Saskatchewan, a guarantee BHP dismissed as a copy-cat move to curry favour during an increasingly bitter takeover battle.

Saskatchewan does not have the power to kill the BHP deal. It can only put forward its position to Ottawa.

Industry Minister Tony Clement wouldn't say if he plans to extend a Nov. 3 deadline as the federal government continues its review to determine if the takeover would be of net benefit to Canada.

"This week is obviously a critical week in terms of our review of the situation," Clement told reporters in Montreal.

But the minister is/was vague when asked if the deadline could be extended.

His words of wisdom are implanted in my mind.
"Nov. 3 is a date. It continues to be the date unless it isn't the date, but right now it's the date," he said.

Saskatchewan Energy Minister Bill Boyd is expected to meet with Clement on Tuesday. However, Wall said he expects the federal government to follow the province's recommendation.

"I'm confident that we've made a very compelling case," said Wall. "We will continue to make our case that this is very important for our province and for our country for the federal government to say 'no.'

PotashCorp shares closed up $1.82 at $146.90 on the Toronto Stock Exchange on Monday. BHP has bid $130 a share.