The House resumed from October 7 consideration of Motion No. 2.
:
Mr. Chair, the reality now is that we do not have an export market for live cattle. We need to start looking at the possibility of the domestic market being the only one we have for our live cattle. We should be encouraging the marketing and processing of box beef. It is a value added product, and we should be focussing on the development and assistance for this industry because we can export box beef. There is no quota on box beef.
It seems that since the beginning of the BSE crisis the government has targeted all its assistance programs with the beef producers in mind. It is important to help beef producers, for sure. In fact we must ensure to help all ruminant producers: live cattle, dairy, sheep, elk and bison. These people cannot be forgotten because they are in a real quandary. However, all we have had so far are band-aid solutions to a complex problem and it requires much more. So many are affected from so many areas that we need a much more broadly based strategy.
Regarding the CAIS program, my constituents are telling me there is a chronic problem with the program. They say that those who qualify for assistance often receive much less in compensation than they expect. It is a serious problem because it means people cannot pay the bills. People should be paid what they are told.
The CAIS program must be carefully looked at and strengthened.
Since the sale of Petro-Canada, billions have been promised to improve our position on the environment, but why not take some of the money and use it to develop the biodiesel industry? A tax credit for the use of biodiesel could be applied. Raw resources are plentiful: cull cattle and dead livestock, where no markets currently exist, minimal cuts and waste from our packing plants are a constant supply of product to produce biodiesel. This might just help lower greenhouse gas emissions and put the country on a more direct route to reaching the objectives of the Kyoto protocol.
As the price of oil tops $50 U.S. a barrel, why not spend some money to develop an alternative energy? Ethanol could also be one of these alternatives. Increased development of the ethanol industry would mean grain producers would have a market for the grain left over by decreasing numbers of cattle.
These suggestions would help make farming more viable and also help the environment.
The government has had since May 20, 2003, to bring forward meaningful changes to agriculture and agriculture policy. If we procrastinate for another year, we could be here at the same time next year saying the same lines.
Let us hope the border will be open soon. At the same time we need to ask what the government is prepared to do that is a new initiative. Should we have new innovative ideas in our agriculture policy?
:
Mr. Speaker, I rise this evening to speak to an issue of grave concern and even business survival for many Canadians, but also one that affects all of us in every part of this country. I include my own riding of Newmarket--Aurora where there are few beef producers but many beef consumers.
The use of the term BSE in referring to one very specific disease does not capture the full impact and range of this crisis. This is a collapse in the trading system with our largest trading partner. It has caused great hardship for cattlemen and farmers in the first place, but also many others who make a living serving this proud and important industry. The meat processors, the truckers who move cattle, and the customs brokers are examples.
We cannot forget that the ranchers and the farmers are traders and exporters too. The impact on their livelihoods has been devastating. In one year alone since the Canada-U.S. border was slammed shut to Canadian cattle, beef and ruminants in May 2003, the industry has lost over $2 billion and the losses mount.
In the heartland of the cattle industry, Alberta, the figures are stark. Here the United States is the market for every single head of non-purebred cattle. Revenues fell immediately by 36% with the border closure. On average, 1,000 head of Alberta non-purebred cattle crossed the border each and every day before May 20, 2003, but that stopped overnight.
We know what is at stake, but what is the problem behind the closure of the border? There are various aspects.
In Canada we speak often and loosely of American protectionism. There are clearly protectionist pressures in the United States, most evident in parts of the Congress. Trade is a very politicized issue south of the border especially in an election year, but the United States as a country is not protectionist. There are other strong voices in support of free trade and the administration itself is not protectionist by policy.
To make progress on the border, we need to understand the complex politics of trade in the United States and be more careful about how we define the problem.
Ironically, one judge in one state, Montana, set in train the fiasco we have before us today. The threat is always there of renewed litigation by a small industry lobby group which is protectionist to the extreme. The strategy for reopening the border over the longer term must take into account this reality and include a legal dimension.
The cattle and beef industry is one of the most integrated sectors across the border. A head of cattle can move back and forth across the border several times in its lifetime in different phases of the supply chain. This is why the Canadian cattlemen and farmers have so many allies among their associates and friends south of the border, which makes the border closure so galling for them.
Business in general has been moving steadily toward greater cross-border integration regardless of what government does. The BSE crisis is defining the need for governments to catch up to business in terms of policy and regulation. I believe that this is one of the emerging challenges of the trade relationship.
The U.S. dimension of this crisis is even more important than the huge volume of lost trade might suggest. The country can spend money on developing new world markets and should in a smart, targeted way, but we must know that many of these markets will not open to our production while the United States remains closed, so there is a multiplier effect in the damage.
We need to convince the U.S. government to inoculate the cattle and beef industry from the ravages of rogue use of the ports to circumvent trade policy. Where is the government's strategy on doing this? We probably need a new and open-eyed look at the dispute settlement laws and mechanisms. Canada has suppressed this process. The Americans are preoccupied elsewhere and unlikely to show leadership in any aspect of the bilateral trading relationship, but history has shown that they will listen when presented with plans that also serve to advance their interests.
The border is held hostage to political will. The U.S. administration needs to know that it will have the political cover to confront legal challenges to free trade.
Our government must contribute by helping to build political constituencies in the United States in support of our cattlemen and farmers. It needs to take the lead in coordinating with the provinces to use local and regional cross-border groupings to consolidate support. It needs to assure Canadians that no stone is left unturned in building support throughout the U.S. economy and society.
The Minister for International Trade and his colleagues should be in the United States, in the states where most support exists for free cattle trade, building alliances to allow Washington to better confront the political pressures of protectionism.
In the interest of openness, the government should publish a record of its interventions with American authorities at all levels to show ranchers and farmers, truck drivers and all Canadians just how active they are in pressing for a solution.
I appreciated the opportunity to speak to this important national trade issue this evening.
:
Mr. Chair, as you are well aware, this is a continuation of the take note debate last Thursday night which went for five hours.
Upon reviewing last Thursday's Hansard I believe all of us really did not explain to the rest of the world, beyond farmers themselves, what this industry is all about and how the U.S. border being closed has completely devastated our industry even though science dictates that the border should be open. I want to try to put a bit of a face on that dilemma.
The reason I want to take this approach is that in the House the opposition tends to attack the government. That is its right. Even the odd time we do need to be tuned up. However on this issue, I do believe that sometimes the rhetoric can get in the way of the industry understanding what the government has tried to do for producers and the industry.
I want to start off by talking about how important this industry is in terms of cash receipts. The sale of cattle and calves in 2002 generated $7.7 billion, which accounted for 21% of total cash receipts. As a result of the discovery of BSE in May 2003, sales of cattle and calves dropped to about $5.2 billion in 2003. That is basically the beef industry, but beyond that there are other industries that are affected. The dairy industry has had a loss of sales of cull cows and lower prices for cull cattle. In fact, they cannot even get rid of them. An animal dropped in price from somewhere around $900 to $200. There is the sheep industry, the deer industry and there are others.
I want to expand on that. In Thursday's discussion the member for Cumberland—Colchester—Musquodoboit Valley on the opposition side said that part of the frustration of being an Atlantic Canadian and going through the BSE crisis was that most people think it is an Alberta issue or a western Canadian issue. He went on to talk about farmers in his riding. I agree that it is a Canada-wide problem. Yes, in terms of total economy and the size of the industry, Alberta is much more affected.
What we often forget about or what often is not stated is that at the end of every beef operation, whether it is large or small, or all the other industries affected by BSE, there is a farmer and a farm family. They are affected by this. In terms of their situation, the impact is much the same, and that is total devastation. I want to give a couple examples.
Last fall in my office I met with an individual from just over the other side of the Ottawa River. He is a part time beef producer who actually works on the Hill. He was going back to the bank and was wondering what to do in the situation. He was going back for the third mortgage increase, at $20,000 a shot. The bank was putting on the pressure. It did not see the value on the books. That individual was facing marriage problems and financial stress problems as a result of BSE. The picture I want to paint is that the individual was suffering substantially because of the border being closed.
There is another example of a beef producer in Prince Edward Island who last year lost $360,000. The bank came to him this spring and wanted more equity in terms of his operation. The asked him to put on an additional mortgage of a quarter of a million dollars. That was in order to protect itself in terms of its asset base as a lending institution.
What would we do in that situation? This individual is about 56 years old, has been working in the farming industry all his life and he has had to make a decision whether to take on an additional $250,000 worth of debt or throw his life's work away by selling out and losing his life's work. He did acquire the extra debt but he is now feeling the pressure of finance.
My point is to try and explain the impact on the individuals and their families. We need all Canadians on side on this issue and to understand why it is so important that the Government of Canada continues to support the industry.
It goes beyond that. I think Canadian consumers were with us last year. When the beef industry encouraged them to go out and buy more product they did. In fact, consumption went up and we do have some of the safest beef products in the world.
I want to give an example at that level as well. An individual producer came to me on the weekend and said that he had sold eight cattle on September 24. Seven of those were triple A cattle, some of the best cattle that could be shipped. One was a double A. The prices he received for those cattle ranged from $1.29 to $1.33.
What I want to say to consumers is that when they go into their grocery store they should ask their grocer why producers are not getting a greater share of the price of the steak they are buying. Those questions need to be asked. We need to know why there is not a greater share of the returns to the beef industry going back to the primary producer.
I do not want to spend all my time talking to that end. The opposition has failed to make this point so I will have to ask the question. What has the Government of Canada been doing to support this industry?
If we go back and look at the record we will find that the minister explained that fairly well on Thursday night. I want to review a couple of points. Immediately the Canadian Food Inspection Agency went out there and it did its job in a regulatory way.
The minister, the previous minister, other ministers of the crown and in fact the Canada-U.S. parliamentary association made every effort to get the border open with the Americans. As I indicated, parliamentary delegations have been down there.
A number of programs have been introduced and I think we should review those: the BSE recovery program which targeted $520 million and $465 million has gone out; the cull animal program of $120 million and $110 million has gone out; the transition industry support, $930 million and $568 million has gone out, and the rest will be out I am told by October.
On September 10 the minister talked about repositioning the industry with a program of $488 million and, as he mentioned the other night, it is to go to four areas: first, to continue to pressure the United States in terms of them opening the border; second, to expand our slaughter capacity with assistance to the processing industry and to the small and medium slaughter industry to try to expand that slaughter capacity within Canada.; third, to bring normalcy back to the market through the fed cattle set aside and the feeder set aside programs; and fourth, to look at new markets as a country.
Right now the minister and a member from the opposite side are overseas trying to establish and inform others on our beef industry, its safety, the quality of our product, the kind of genetics that we have in those cattle and that they should be buying those products in their country. The minister is looking at Japan, Korea, China and Hong Kong.
Yesterday the first feeder set aside program was opened up by the reverse auction approach. That program should now be up and running.
The bottom line is that the government is standing by this industry and doing everything in its power to support the industry. We are willing to listen to constructive criticism and to look at novel ideas to improve our programming and assist this industry in its time of need.
:
Mr. Chairman, in one of the lines that the parliamentary secretary just gave he said that the government needs to respond in haste with a program. We have had 18 months, since May 23, of this carrot being dangled in front of those who would start these kinds of programs or projects and also in front of the producers who are waiting for some help.
I would suggest that the government has had ample opportunity to design a program, to stand in front of the camera and say that the program is here and $66 million is here but we do not have the application forms here. It will take at least 12 months to get some of these packing plants up and running.
The four points of the program that has come out are contingent on the fact that there be more capacity.
If we do not see enough increase in capacity by October 2005 or January 2006, we will have a glut again. The holdback calves that will have been held back and should have been slaughtered in May or June will be held till October or some even later into January. Instead of 700,000 over fat cattle coming on the market, we will have 1.2 million or 1.3 million over fat cattle coming on to the market.
I would encourage the parliamentary secretary, with that sense of urgency that he talks about, to urge the government to do everything it can to clear the way so that these new start-up projects can get quick access. The banks have the security, because right now when these individuals go to the banks, the banks are backing away because of the government's failure.
In my comment I would simply urge the parliamentary secretary to push for more than what we have. There is nothing in here about tax incentives and nothing in here about those who are taking the big risks. All it is, is a low loss reserve to the banks.
:
Mr. Chair, it is my pleasure to participate, albeit very succinctly, in the debate tonight. I will be splitting my time with my colleague from Crowfoot.
I want to pick up on some of the points that my hon. colleague from Malpeque just made. In his remarks he said that he would certainly like to see some cash in the hip pockets of our producers. That is something that we on this side of the House have been hollering about for 18 months. The program that was designed by bureaucrats for bureaucrats is not delivering the needed assistance to the farm gate. We have been saying this repeatedly for a year and a half.
It is more than a touch ironic to hear the hon. parliamentary secretary stand in his place and suggest that the Liberals too want to see some much needed cash reserves in the hip pockets of producers. I would argue that if that were true, the government would have found a mechanism or program designed by the producers to get that assistance to them a lot more readily than we have seen to date.
Earlier in his comments he said the government wanted to ensure that the design of this program was right. Speaking on behalf of the producers in Prince George—Peace River, we have heard over and over again, not only from members of the Conservative Party on this side of the House but from members of all parties, including his own party, the frustration from our producers on a daily basis.
It is hard not to be struck by a bit of déjà vu. In preparation for tonight I took a look at remarks that I had made back on February 3, 4 and 5, and a take note debate on February 13. I could read the same remarks word for word eight months later. The Liberals come up with these programs but the money does not get to where it is needed. The members representing the cabinet stand and say that they sure want to get that money out to producers because they know how bad they are hurting. Pardon me for being just a tad cynical.
In rising tonight the message I want to deliver, as I did in February, eight months ago, is the frustration that is at the farm gate. These are families that in some cases are second or third generation producers. They are on the verge of losing their farms, losing their ranches, and losing their feedlots through no fault of their own. This was not an issue of bad management. This was not an issue of them having spent their money unwisely. This is totally beyond their control.
The hon. member stands in this place and says that the government has done everything it can. People contact me in Prince George—Peace River who owe their livelihoods to this industry and point out to me that it is pretty strange that the government would not spend money on advertising, for example, in the United States, reaching out to consumer groups to suggest they are paying a bit too much for their beef and are getting an inferior product because we know that the best beef in the world is produced in Canada. The government would rather spend sponsorship money advertising Canada and Quebec instead of beef, lumber or whatever in the United States to put an end to this border closure.
The Liberals stand in their place and profess great sympathy for the industry and producers. When I talk about producers, I do not talk about Joe farmer. I talk about Joe farmer's family.
These are families that are hurting. It is children who are hurting. They are arriving home on the school bus and have to listen to their parents debating about how they are going to meet their monthly bills. There is real hurt, but to listen to the government we would never know it.
All I wanted to express tonight on behalf of my constituents is the frustration because they are not buying it any more that the government really cares. If the government really cared, it would have designed a program that worked, not try to funnel money through CAISP, and force provinces and producers into a program that it knows does not work.
As a past farmer of 20 years myself, I am fed up with governments that force-feed programs to producers and tell them that it knows what is best for them.
:
Mr. Chair, I knew the member when he used to be the president of the NFU, if we want to talk about rhetoric. His rhetoric goes back a long way. He forgets some of the things he used to stand for, but since he became a Liberal somehow he does not stand for that any more. At least I stand for the same things no matter what my party is called. I stand for the same things today for which I used to stand. What about the member?
The member said nobody put anything forward. The new Conservative Party, even though it was only in existence for a few months, in February put forward a comprehensive plan of how to address the issue. We ran on it in the campaign. The Liberal Party did not have any plan. It did not have anything until it cobbled together something in September, foisted it on the industry, said it had consulted for the last seven months, and that was it. Problem solved. What a bunch of nonsense.
I would like to take this moment to pay tribute to the producers who are banding together at a time of great peril to their industry and making the best of a tough situation. I would be remiss if I did not mention a new organization called the Peace Country Tender Beef Co-op in my riding of Prince George--Peace River.
I know it is not unique. It is a group of producers who banded together in a spirit of co-operativeness that we saw really take off in the so-called dirty thirties, in the Great Depression. It is sad that the industry is being forced to do something similar. It is almost like we are reverting in time but good on the producers. I want to pay tribute to them in Dawson Creek and the South Peace River in my riding. They are springing up all across the land as people try to come together in a time of need and of great peril to their industry and livelihoods.
The $4.2 million slaughterhouse facility will obviously help to alleviate the severe lack of slaughter capacity. Many of my colleagues have talked about that. Our critic has talked about the fact that the $66 million program is simply not enough to address that, that we need far more from the government and yet when we bring up issues like this, we are criticized and told we only stand for rhetoric.
As I said, we had a plan in February. I would challenge the member to tell me where his plan was in February or in March, April and May. Where was it during the election campaign when all of us were asked about it at all candidate forums? We had our plan. We ran on it. We are still waiting for something substantive from the government. The best it can offer is a half-baked plan that it came up with in September.
:
Mr. Chair, again I rise tonight to debate probably the most important issue we have had to debate in some time. As my colleague has suggested, we have been debating this since last February, and since the summer of 2003.
I want to thank my colleague from Haldimand--Norfolk for sponsoring this take note debate tonight. The debate is a direct result of a government that has failed to recognize and provide a timely response to the crisis which has severely impacted the cattle industry and all agriculture as a whole. It is the government's failure to implement a program that adequately assists farmers and ranchers devastated by this BSE, a failure that has resulted in losses now estimated to be $2 billion to the primary producers and maybe up to $6 billion or even higher when we consider the agricultural sector, the trucking industries, the auction markets and others. It is a failure that has stakeholders disheartened and discouraged.
As we all know, the two isolated incidents of BSE caused the United States border to close on Canadian beef. To date that door remains closed to all live animals, again because of the government's failure. This closure is due not only but in great part to the soured relations between our two countries, years of neglect and blatant derogatory statements made about our southern neighbours. Now protectionist forces that have picked up the battle cry in the United States have continued to keep the border closed.
The Liberal government's overall approach to this very serious issue has been, realistically speaking, timid and tentative. It is time for the government to act. It must do everything in its power to amend those relations with the United States, and then to assure it and the world that more resources will be focused on the study of BSE and other related diseases. As many have suggested, we must assure the Americans that we will meet our testing targets by January 1 and that we will increase our tests on animals 30 months and older in time to come.
We have an integrated market with the United States, one that this country depends upon very heavily. We must therefore work toward immediately reopening the border to livestock under 30 months and not just for beef and cattle, but to others such as buffalo, camelids, goats and other animals that have never shown signs of BSE or like diseases.
We must develop protocols on acceptable rendering materials with an overview to cross-contaminations. We must develop protocols on the removal and handling of specific risk materials, and I will say that the provincial government has done this. We must develop continental risk assessment rules for minimal disease outbreaks. Right now we are tied to regulations for a country that is going through a BSE outbreak. We need to ensure that the protocols are different for countries with minimal risk. Although there have been some steps, we need to continue on in that direction. Right now we are being treated as if we have had a major BSE outbreak. There are many other countries with many more cases. We have talked about it tonight and we spoke about it last Thursday evening. I think it is a given that we recognize that we must increase slaughter capacity.
I remain very skeptical that the government's proposed $66 million loan loss reserve plan will really significantly help accomplish this. I base this scepticism on a number of people, even today, who have called me. Our member from Edmonton--Spruce Grove spoke about a group. Representatives contacted me as well today. They said that nobody really fully understood the process. When they tried to talk to the government, it seemed that even the bureaucrats did not understand exactly the process. Others have said that they could not get application forms for other parts of the program.
This program, although it has been announced, is not up and running, and it is not running to the degree it should be. Is the government on the right track? I am not sure. Maybe it is. I know one thing. There is such little action here that if people are sitting on any track, they are about to be run over. We have major difficulties when we move into a fall run and producers do not understand programs.
:
Madam Chair, again that member hits the nail on the head. There is a high level of frustration among the producers, the cow-calf operators, the ranchers and farmers. Whether it is all the government's fault or not, let us just back up. We used to have a program called NISA, net income stabilization account, and the government shut it down and began the CAIS program. Farmers, even in the last few months, have until next January to decide whether they will go into the CAIS program.
Now the government has come forward and has said that it will deliver a lot of the program through CAIS. The government should recognize that producers are questioning whether they will enter the CAIS program. I read in the House Thursday night a letter from a cow-calf producer in Endiang, Alberta in my constituency. The family went to the accountant who suggested they join the CAIS program. The family has lost huge equity in their farm and in their cattle herd. Now they are being told to take, I believe, $15,000 and put it into the CAIS program. Others have been told to take $20,000 or $25,000 and put it into the program. In the letter she said that the government simply did not get it. They have gone from earning $40,000 in the sale of bulls to $6,000. They have had to pay their insurance and their bills. They do not have $15,000 to put into an account and if they did, 10 other businesses are asking for payment.
Again, I am not sure the government fully recognizes the severity of what is happening in my province and across the country. It is coming up with programs that simply do not meet the needs of the producers. Certainly we have gone through and recognize the increase of capacity that is needed. Now we are moving into the fall run. We would expect that if we ask our ranchers and farmers to manage their farm as a business, that these programs would not come forward in the middle of our fall run of cattle.
Every auction mart is or should be busy at this time of the year. Farmers still do not understand this program. Are they going to hold 40% of their calves back and put it into the set-aside program? They do not know. What is the ear tag identification system all about? They do not know. They did not have the ability to be at our GEM 4-H Club the other night to hear the answers to those questions. They do not know and yet we are asking them to manage.
The government is known for knee-jerk reactions in a crisis. My producers are caught up in this, and the way the member expressed this is absolutely right. People are devastated. The industry is in crisis, and the government members are out looking for a camera to stand in front of so they can announce some big dollar program that nobody can access.
:
Madam Chair, I am happy to have the opportunity to discuss the ongoing crisis facing the livestock industry in Canada. It is important to have an open, frank and factual debate on the current situation and to continue to discuss ways to help the industry.
Canadian farmers in all sectors are feeling the negative impact of BSE at this time. As the government and as the member of Parliament representing the riding of Lambton—Kent—Middlesex, in which agriculture is a primary industry, it is our duty to take any and all possible steps to make sure this sector regains its position as a world leader in beef production. This government is here for our farmers and we will continue to act in the best interests of the industry.
The beef and livestock industries have changed drastically as a result of the BSE crisis, in both Canada and the United States. The once highly integrated single market with an invisible border has become a stone wall. Since beef products from both countries have been shut out of international markets, we need to work together to convince the international community that North American beef is safe.
North America is a highly integrated beef industry and has functioned as a single market with an invisible border. In the last five years, two-way trade totalled $13.6 billion for 7.3 million animals. Canada exports about half our total production to the United States and 97% of all live cattle imported to the United States come from Canada and Mexico.
Slowly, U.S. cattle producers and government officials are starting to realize that if they want countries such as Japan to open their borders to U.S. beef they first have to allow Canadian beef into their country. They cannot expect another country to open its borders when they themselves are keeping borders closed to Canadian livestock for the same reason.
We are still awaiting the United States department of agriculture's decision to clear the way for the U.S. border to reopen. In August, the National Cattlemen's Beef Association in the U.S. passed a resolution urging American officials to work toward the normalization of beef trade in recognition that it is unlikely that a major importing nation will reopen borders to the United States until trade issues between Canada and the United States are resolved and their election is held.
The number one priority for all levels of government, industry and producers in Canada continues to be that of convincing the international community to completely reopen borders to Canadian beef and livestock. It has been extremely disappointing that the international community, including our neighbour to the south, is basing its continued border closure on politics and trade protectionism rather than proven science.
As members know, on July 18, 2003, new measures were introduced by Canada which required that specific risk materials be removed from cattle at slaughter. The effective date for these regulations was August 23, 2004. However, in federally registered establishments, a CFIA directive required SRM removal as of July 24, 2003. Since the infected cow found in Washington State, the United States has now taken similar action.
In order to help convince the international community that our beef is safe we are implementing additional measures to ensure that another BSE case is not discovered in Canada. On July 9, 2004, the Government of Canada announced the introduction of new animal feed restrictions to further strengthen Canada's safeguard against BSE. This measure will add an additional level of security to Canada's current feed ban, which has prohibited feeding cattle with ruminant materials, including SRMs, since 1997.
The government has been consulting extensively on a series of regulatory and policy enhancement options with the provinces, stakeholders and key trading partners since the case of BSE was reported in May 2003.
On September 28, 2004, the Canadian Food Inspection Agency released a detailed information paper outlining an array of potential regulatory enhancements the agency is considering. Interested groups have been invited to comment as quickly as possible. At the same time, the CFIA has been drafting a set of regulatory amendments to Canada's existing feed restrictions. It is anticipated that a proposed set of regulations will be published by the government in the fall of 2004 and implemented by the spring of 2005.
One of the possibilities being considered would see the elimination of SRMs from all feed. This would ensure that there is no cross-contamination between ruminant and non-ruminant feed. The removal of SRMs from all feed could be an expensive endeavour, but if it leads to reopening of international borders it would be worthwhile.
We do need to ensure that the potential economic impact of imposing this new regulation is not placed solely on the shoulders of livestock producers, who are already confronted with economic hardships. Far too often it is the primary producers who are most negatively impacted. For instance, the government program was designed to assist livestock producers but instead appeared to result in meat packers taking advantage of the situation and benefiting from the same.
To this day, I still do not know why my hon. colleagues from the official opposition refused to support the report of Standing Committee on Agriculture and Agri-Food to allow two meat packers that refused to provide the committee with their financial information to a forensic auditor to be fined $250,000 per day. I should note that the committee took the necessary steps to assure that all meat packers would have their privacy protected, and I certainly agree with that.
Without the financial information from the meat packers, we will never know how much they benefited from the federal government program. As a member of the agriculture committee under the 38th Parliament's first session, I will work to ensure that this issue is reviewed once again as well as ensure that federal programs are addressing the financial problems our primary producers are facing.
It is unknown when the international borders will completely reopen to Canadian livestock. Therefore, we need to find out why prices at the retail levels have not lowered despite the fact that cattle prices have been reduced drastically. We need to ensure that a fair share of the money that consumers are paying for the beef is getting back to the primary producers.
I would like to point out that without the continued support of the beef industry by Canadian consumers, the situation facing our primary producers would be considerably worse. Not too many countries could find a case of BSE and still have their beef consumption increase as much as 60% to 70%.
Far too often, primary producers do not receive their fair share of money for their finished product. This has to stop. Producers cannot afford to farm much longer if this continues. We need to ensure that any assistance provided by the government is getting into the hands of the primary producers, because they are the individuals most affected by this crisis.
If there is anything to be learned from the BSE crisis, it is that we need to expand our processing facilities in Canada and become less reliant on the United States. This is not to say that we completely shut our borders to the United States. Rather, we need to work to balance the amount of livestock we produce with the amount of processing facilities we have in Canada.
The U.S. livestock producers have suffered since the international borders have closed to their product, but certainly not to the extent our Canadian producers have. We produce approximately 60% to 70% more beef than we can consume, while the U.S. consumes all it produces. BSE is therefore not hurting them as much as it is us. If we had more processing facilities we would be able to continue to export the boxed beef products instead of having a backlog of close to a million excess cull cattle.
That is why the federal government recently announced a strategy to help the livestock industry reposition itself to ensure its long term viability. The plan is geared toward enabling sustainability of the industry through the following measures: by creating a loan loss reserve to facilitate the increase in domestic slaughter capacity for ruminants; by providing cash advances on CAIS for certain breeding animals and other ruminants until domestic capacity targets are reached; by introducing set-aside programs for feed and feeder animals to manage Canada's current oversupply of cattle; and by establishing additional technical experts to focus on strengthening relationships with regulatory agencies in export markets.
As export markets expand, the increased ruminant slaughter capacity in Canada will provide greater value added opportunities for the industry and will reduce its reliance on live animal exports.
CFIA is committed to streamlining the process for establishment reviews and the approvals of new plants under the Meat Inspection Act. As well, governments will examine existing regulatory processes to identify opportunities for streamlining in order to allow expansion or construction of facilities to begin sooner.
Despite the international standards set by the OIE, Canada was able to regain access to the United States, Mexico and Russia in just over 100 days as opposed to the recommended seven years. No other country--and I emphasize that--hit by mad cow disease has been able to reopen its borders so quickly.
This proves that the international community has confidence in the surveillance and testing we have in place and that the efforts by the federal and provincial governments, along with those of industry, have been more successful than those of most countries. We need to also revisit our international standards to ensure rules meet today's technical information.
To date, the federal government has committed $1.9 billion in assistance to the industry. We will continue to work with the industry and producers to find solutions to address their situation and ensure the viability of the beef and livestock industries.
I would like to say to the farmers and to all Canadians listening to this debate tonight that we will continue to do everything in our power to convince the United States and other countries to open their borders to our proven safe Canadian beef and livestock.
:
Madam Chair, the hon. parliamentary secretary is right. I am very pleased and proud to sit on the agriculture committee because agriculture is the largest industry in my riding of Lambton—Kent—Middlesex. Our committee for the most part leaves politics at the door and works very much in harmony on various issues.
On the BSE issue and regarding the meat packers, it appeared that we were coming to the House to obtain unanimous consent on that matter. When it came to the House, the official opposition would not go along with the motion put forward by the chair of the committee. Thus, it died on the floor.
I can quote from newspaper articles which say that meat packers are making 231% or 345% more money. That is highway robbery when our primary producers are getting nothing.
Mr. Myron Thompson: Where are they getting the money?
Mrs. Rose-Marie Ur: They are getting it from the programs that our primary producers are supposed to get. There is vertical integration. The meat packers have feedlots and all the rest and they are buying into these programs.
It is time that the opposition sat with us in committee and allowed this to go forward so we could see where the money is going. This is an important factor and we need to get to the bottom of it. We can only get to the bottom of it if the opposition agrees to look at these dollars.
One article indicated that Alberta auditor general Fred Dunn said that the meat packers' net earnings soared 281% since the market was disrupted. It went on to say that a packers' earnings jumped 345%, a 43% increase in earnings from the year before.
There is something wrong when an industry takes advantage of the primary producer which it thinks it is wholly working on behalf of. It is important that provincial and federal stakeholders get together and work in the best interests of the Canadian producer.
:
Madam Chair, it is a pleasure for me to rise tonight to address this issue on behalf of the literally thousands of ranchers and farmers in my riding. They are at their wits end as to what will transpire in the near future and what should happen from this government and other levels of government and exactly where we should go.
First of all, I want to face some realities. I want the other people in this place to face some realities. I certainly agree that we should have more packing plants. Let us do more processing. Let us build the market. Let us do the things that need to be done. Those are all things that we need to look at for the future.
This fall, within a month, there will be scores and scores, hundreds, if not thousands, of people who will be foreclosed on by the banks and other lending institutions. They depend on the fall calf crop or other crops to carry them through, to make their land payments and because they will not be able to make their land payments, the banks will foreclose. I have been told by personal bankers in my riding over and over again that they have just about reached their limit in extending their support and that foreclosure is just around the corner.
Are we a government of representatives here of the largest industry in the country in terms of the number of people it affects and the spinoff occupations that rely on it and the number of jobs that are created by a good agriculture program? Are we going to allow this to happen? Are we going to say to these people that it is too late and it is too bad that it has come to a foreclosure, that they will lose their land? If they lose their land, they have lost everything. If they do not have their land, they cannot do anything.
I have talked to many of these people, as have some of my colleagues, and probably some on the other side of the House. They are not sticking their hands out and asking us to give them money to make their land payments. They are saying, “Help us through this crisis. Find a way to help us meet our obligations and land payments, even if it is through a very small interest loan”.
Leave the operation of the industry to them. They know what they need to do with their herds. They know what needs to be done better than any politician.
We are in a position in this House to help. We could look at the immediate needs of these people who I say again will lose their land. Losing their land would be the end. If they have no land, they have no business.
Madam Chair, I will be sharing my time with the member for Yorkton—Melville.
What will the government do today for the crisis that exists? It is great to talk about the future and what we are going to do. However, the programs that have been produced since the May 2003 closure--and these are the facts; anyone can check them out if they want to--of all the thousands of producers that are in my riding, at the farm gate the average money that was received from the government's programs is $924 for the entire period of time. Pray tell me, what is $924 going to accomplish over that period of time?
Do we seriously think about these people losing their land and bank foreclosures, or is it just forgotten as one of those things that happens?
Dairy farmers have been told by the minister that there will be some quick adjustments because he realized in the last program that they were improperly treated. They are looking for this to happen. Guess what? We are getting another promise. Weeks have gone by. I do not know how long it has been, but nothing is happening. This is immediate. Things have to occur.
One thing that shocked the daylights out of me was when members of the government went to visit people in the United States on this issue.I was told they were surprised that a large number of congressmen, senators and state government individuals did not even know that the border is closed. I find that hard to believe. They did not even know that the border is closed.
What in the devil have we been doing here? We are sending our Prime Minister to the oval office, and it is nice to hear those words, but there ought to be some action from those visits. Several others have been visiting. The minister has been visiting with the Americans' agricultural leader over and over again. Where is the action?
When the border was closed, it would appear to me that the government's first move would have been to say that we have to come together collectively, that we have to bring all interested parties together to look at what has taken place, that we should get together to plan some strategy, that we will go to the United States to discuss the situation until we get the border open and that we will stand there for months if we have to until the job is done. That has never been accomplished or even tried. Why has that not happened?
We should go down there to discuss it, sit with the Americans and make them understand what the border closure means. Help them understand what their consumers are realizing, that the beef shortage there is so terrific that their beef prices are going sky high and out of this world. Why are we not down there trying to get some help for them?
This goes for sheep, white tailed deer, elk, buffalo, rheas and alpacas. All of them are impacted; all of those producers are suffering greatly. All we are doing is coming up with convoluted, complicated programs that will not address their immediate need. Let us stop it and get serious.
The critic for agriculture in my party has called for an ad hoc committee. So far I understand the Bloc has responded. The other parties have not even responded. We should come together as a government willing to help a drastic situation and solve the problem. Let us work at it and do it now.
:
Madam Chair, of course it is true. There is a protectionist group down there. Why would they want the border open when they are in control of a few head of cattle and making thousands of dollars? It is all about money for a lot of people. To me it is not about money. It is about a general livelihood across the nation, both nations as a matter of fact.
The member and other people in the government would be quite surprised how much support we would get for getting the border open if we approach it by saying that there is a drastic problem going on. Marketing magazines down in the United States are already reporting 35% to 40% lower surpluses in the history of the cattle business, and here we are sitting with a huge surplus. Instead, we come up with programs like CAISP and all kinds of little things that are so convoluted and complicated that farmers cannot even figure it out. They have to get a lawyer or an accountant to help.
Where is our committee? Where is our group of people? Let us not make this a partisan thing. Let us get some Liberals, members from the Conservative Party, the Bloc and the NDP, and let us form a committee. Let us involve some industry people and then get some of our friends across the border, because they are our friends, who also agree the border should be open, and go down there and fight until we get the job done. What is wrong with that?
We should take on these protectionists. They are not the majority, they are a minority. Most people do not even know what is going on down there because we have not got the fight in us here to go down and explain how drastic it is. I spent almost two hours with the ambassador from the United States. He assured me that that was an excellent idea. He was even willing to supply me with the names of senators and representatives who needed to be seen regarding the issue.
Instead, we dream up programs, complicate them and make them so difficult that nobody can understand them. Farmers do not even know how to get copies of the applications, and in most cases they are not even available. Over and over those kinds of problems exist when we address them in the manner that we have.
I do not understand what is wrong with a group of people from this House, led by a few from each party, including the industry, including people from the U.S. who want the border open, going down there and saying “Look big brother, things are not right. People are hurting. People are suffering, not just in our country, but in yours as well”. They are begging and pleading for livestock in many areas down south, but instead, we keep coming up with convoluted announcements. The government announced something like $1.4 billion in Lethbridge, or some ridiculous figure, once upon a time.
Where are the tax breaks? Where are the incentives? Where are the deferrals? What can we do for these people today, immediately? They are going to lose their land and we are the problem. We have suddenly become the problem. We need more than a take note debate to solve it. We need some sincere, committed hearts to say that this issue is going to be fought and brought under control, and I hope that I will be included.
I know what it is like to lose a farm. I stood on a farm with my father and brother when we had to shut down because there was no other hope after about the fourth hail storm. In those days we had no hail insurance. There was nothing we could do, no one to turn to. I see no reason for that to happen in a great country like Canada. I see no reason at all for us to allow such a thing to happen.
If the government needs to find the money, let me help it. We can go through the public accounts and find all the waste. We will help the government find the money, but let us get the job done. It is still not too late. This fall is going to tell the tale. Let us get with the program.
:
Madam Chair, thank you for the opportunity to address the House and by extension, all Canadians.
I want to take a little bit of a different tact in this debate. I want to speak to our cousins in the big cities, those who enjoy good quality food produced by our farmers. We talk a lot about health care and the need for good health care, but those people who sit down to the table every day to enjoy food produced by our farmers must realize how important this debate is this evening.
I would like to ask those who are in the big cities to give a little bit of an ear to what our country cousins are experiencing at this time. We need the support of those people who enjoy good quality beef and food we are discussing tonight.
Before I go much further, I want to ensure those who are in the cities that our farmers and ranchers are doing everything they can at this point to survive. In my area of eastern Saskatchewan, Yorkton—Melville, they are trying to get slaughter plants built so that they can butcher their beef and export it to those who want it. They are trying their best to do it but the border is closed. That is what precipitated this entire problem. The leader of the Conservative Party clearly explained why the border closed and how the Liberals failed to address it as they should have immediately. But going beyond that, we need to do more for our farmers.
We heard members opposite defend the farm programs that they put in place saying in the throne speech that they would do more. They barely mentioned it but they said that they were going to quickly address the BSE crisis. We have had a year and a half for them to quickly address the crisis. Farmers are doing their best to survive, but they cannot hang on any longer and the programs that are being put in place are not effective.
The average compensation reaching farmers is less than $1,000 and it costs them $500 to fill out the highly bureaucratic forms. They have to hire people to decipher what these forms are all about and they are being caught with virtually no compensation for the past year and a half. That is why we have asked for this take note debate on this whole issue.
We can talk a lot about this. I was surprised as I talked to people in the big cities, that they do not realize that compounding this BSE crisis is another crisis that has hit the prairies, and that is the August 20th frost that absolutely devastated crops across Saskatchewan. Over three-quarters of the province has had the quality of its crops and yields reduced.
I was in fields in Saskatchewan this last Thanksgiving weekend. I went into a field of wheat. It looked beautiful. The farmer had cut it down and it was lying in swaths. It was wheat that would normally be used for making bread. I examined it, rubbed it out, and there was absolutely nothing in that crop. There might have been a little bran, but the frost completely devastated the crop. What should have been a good quality crop was virtually non-existent.
We have the frost compounding the BSE crisis because when the grain crops were not doing well 10 or 15 years ago farmers began to go into cattle, to diversify and do their best. That is why I come back to it. Farmers are doing their best to survive, but they do not have any more options left. The government has created the problem, but it is not helping them solve it.
I want to explain more about the situation in my particular area. Business people in the City of Yorkton told me they are absolutely devastated. The farm crisis is not just affecting those people who are producing the grain and the beef. It is by extension affecting all of our cities.
Families that normally would send their children to hockey school, piano lessons or all of the things that farmers do, are not able to do it any more. They are being severely impacted. The businesses in my home town are at the end of their rope as well.
This affects people in the cities, but they do not realize it. We have taken for granted a good quality food supply. Therefore, I ask for their support because the government has made this into politics. It says, “Only 2% of the people are in agriculture so we don't have to worry too much about it because 98% of our vote comes from the cities, so we can ignore these people”.
I am appealing tonight to our city cousins to listen to the pleas of rural Canada for some kind of help and help us put pressure on the government to act. If we do not act soon we will not have that good food supply there. We are going to lose our middle class farmers and corporations will grab hold of that food supply. Let me warn people that at that point it will not be as it is today, where they can count on this.
:
Madam Chair, I agree with some of the points the member raised in terms of the situation on the farm. It is serious and we have said that. We have been trying to work at that.
In fact, I had the pleasure of being on the Prime Minister's task force on the future of farming out of which came roughly $6 billion for the agricultural industry and a safety net program. Is it as good as it could be? Improvements can always be made.
The member opposite tried to leave this impression, and this is one of the troubles that I have with the party opposite. He said that the government said that it did not matter because only 2% of the people were in agriculture. I say to the member opposite, that kind of rhetoric I do not appreciate.
We care about farmers on this side too. I would ask the member opposite to tell me directly what government member on this side of the House ever said that they are only 2% of the people and they do not matter. We are supposed to be having a take note debate to improve the situation, not get into the falsified rhetoric that the member opposite is doing and leaving the impression that we do not care. We do.
We put in place the business risk management program. On the CAISP that the member talked about, close to 70% of cattle producers are in fact triggering a CAISP payment. The federal government announced the CAISP special per head interim payment for 2004 for producers of eligible cattle and specific ruminants based on inventories as of December 23, 2003, in order to address the cash flow and liquidity issues. That was one of the programs that really worked. It got the money out to producers in a hurry.
The program that was announced in May worked well because it was a simple application. Yes, I agree with the member opposite that the CAISP application is terribly complicated and we have to improve it. However, the application in April was a simple program and the returns went out in a matter of 30 days. It was based on inventory numbers. It is not that the government is not doing anything. We have the CAISP. We have production insurance that will hopefully deal with some of those crop problems the member talked about.
The key point I want to make is that the kind of rhetoric that the member is insinuating, that someone on this side said that farmers did not matter, is wrong and he should apologize to every member in the House.
:
Madam Chair, I want to begin this evening by congratulating you on your appointment as one of our Speakers. I trust that you, like all the others who have either been elected or appointed, will govern this House in the way that you oversee the procedures on a day to day basis in a fashion which we all find acceptable. I congratulate you once again.
On the same note, I would also like to extend my profound thanks to the people of Huron--Bruce, my riding. Their support in the recent election is truly gratifying and I pledge to do my best to ensure that their trust is rewarded with effective representation.
Lastly, I would also like to thank my family, most particular my children, Cam and Brian, and particularly my wife Kathy. Without them and their unending support and confidence, I could not do my job as an MP effectively.
Now to the matter at hand. I find it fitting that one of the first issues tackled by this Parliament is BSE. This matter is one that has already sparked a crisis in the agriculture sector across the nation and, if left unchecked, promises to continue to decimate the future of our primary producers.
That being said, as the recently re-elected chair of the commons agriculture committee, and on behalf of all members of the committee, we need to turn words into actions. Time is of the essence and our farmers are looking to us for help and leadership. We must not let them down as the price of failure is much too high.
Prior to May 20, 2003, most Canadians did not know what BSE stood for. In fact most did not know what bovine spongiform encephalopathy was or how it could potentially devastate our domestic cattle industry and adversely impact upon our national economy as a whole. We may have been vaguely familiar with the term “mad cow” from Hollywood movies and doomsday television plots, but we had no idea how dangerous BSE really was. In short, we had no concept of what was to come.
Canada had a brief bout with BSE a few years back. However, that animal was found to have been a British import. Consequently, we were able to escape from the full effects of a BSE discovery, but this time the animal was unmistakably Canadian in its origin.
Unfortunately, as this House and our Canadian beef farmers know all too well, on May 20, 2003, our naivety was forever ended. Canadian farmers, and for that matter all of rural Canada, have spent the past 17 months coming to terms with the sad reality of BSE. More important, we have been trying to move past it.
I will not rehash yesterday's news. Nor will I attempt to explain to the House what the root problem is. We already know. We have debated this issue at length and to pretend there are new consequences is disingenuous at best. Members know that we cannot fix the past or turn back the clock. The problem is imminent, it is here and it requires our immediate attention and action. Debate is fine, but Hansard cannot be deposited into a bank account.
Today the Canada-U.S. border remains closed to live Canadian cattle. All of our other international trading partners refuse to buy our cull cows, and live beef and domestic cattle prices remain severely depressed as a result. During the recent election, the Conservative candidate in Huron—Bruce put up signs demanding that the Canadian government open the border immediately. I agree that this would be a fantastic idea. However, if we could open the border, we would have done it months ago. How can one open a locked door when the key is on the other side?
We need to deal in realities and not in wishful thinking. Our farmers deserve at least that much.
As an aside, I would like to extend my personal congratulations and appreciation to the Department of Agriculture and to the CFIA. Both have done tremendous work with respect to this matter. It is worth mentioning that, prior to Canada, there has never been a reopening of an international boundary so quickly following the discovery of a BSE incident. I am of course referring to the fact that the U.S. is again accepting our boxed beef. Agriculture Canada and the CFIA deserve a pat on the back for this.
Furthermore, I would be remiss if I failed to again remind consumers that the affected beef did not make it into our food supply. To put it plainly, our system did exactly what it was set up to do; to protect Canadians and our international customers. Again, Canadian beef is completely safe.
Despite all these achievements, this is all in the past and while we should be pleased with all of these successes, we must do more. Money is a vital first step. In my opinion governments must continue to work to stabilize our industry. To date, more than $1 billion has been invested in the sector. However, to an industry that generates ten times that amount in direct annual economic activity, that is a drop in the bucket. We need to continue to work with industry leaders like the Canadian Cattlemen's Association, the Ontario Cattlemen's Association, the CFA and the OFA, to ensure that the help reaches those who are most in need.
That brings me to my next point. How do we make certain that money gets to our primary producers and is not diverted into the hands of corporate giants? Prior to the last election, the standing committee had launched an investigation designed to explore this issue. In fact the House even went so far as to unanimously hold certain packing houses in contempt for failing to cooperate with the committee's investigation. That was a concrete example of turning words into action, where there was cooperation in the House on all sides.
Regretfully, the clock ran out on the process when Parliament was dissolved for the election. However, I am pleased to report that the committee planned for that and provided provisions to permit this study to be continued when the House resumed and the committees were reconstituted. It is every bit my intention to continue in that direction. I do not say this because I have a vendetta against the packing houses in question. No, I say it because in the past couple of months alone evidence has surfaced indicating that packing houses are making record profits at a time when our primary producers are facing the greatest economic challenge ever. This seems suspect to me.
As evidence of this, I cite the June 15, 2004 CBC story reporting that 10% of the BSE aid package intended for Alberta farmers was distributed to two specific meat packing companies. The Alberta government stated that while the two packers in question received a combined total of $42 million, 22,000 Alberta farmers were forced to share $158 million left after corporations received their portion. Now I am not an economist, but this does not seem fair to me and I would suggest that Canadian farmers would agree.
What I am saying is our farmers need for us, all members of the House, to help them to help us. Rural Canada is the foundation upon which Canada rests. BSE represents a serious threat, not just to our beef industry but to all rural Canada. Aside from the fact that BSE negatively impacts on sheep and lamb markets, the dairy sector, pet food manufacturers and farm equipment dealers, to name just a few, it also undermines all of rural Canada.
When I urge members to turn words into actions, I am sincere. In the past I have supported motions in the House regardless of the partisan origin. I completely accept that good ideas may not have an exclusive political affiliation. One example is the motion that was brought forward by the member for Perth--Wellington. I supported it because it was worth supporting, something that I would urge all colleagues to do in the future.
In the months prior to the last election, the Standing Committee on Agriculture and Agri-Food presented two specific and unanimous reports on this matter. These reports contained recommendations that were agreed upon by all parties because they did not represent any specific partisan agenda but rather, they were designed to help farmers.
Today I would again lend my support to those reports and the recommendations contained therein. I would like to thank committee members and staff for their work on the recommendations. Again, I call upon this House to adopt the suggested measures.
Increasing domestic slaughter capacity, instructing the commissioner of competition to conduct an inquiry into the pricing of slaughter cattle and beef at the wholesale level, intensifying diplomatic efforts with the U.S. aimed at implementing the world organization for animal health code and repealing both countries' import embargoes, while continuing to negotiate other modalities of an implementation plan that would improve the free flow of livestock and meat are all attainable measures that could actually help our farmers at the farm gate.
We know what the problems are. Now is the time to concentrate on securing and implementing real solutions. We need to take immediate actions aimed at increasing our domestic slaughter capacity and put in place a safety net that will truly stabilize the industry until such time as trade is normalized. Moreover, we must ensure that diplomatic efforts are strengthened, not just south of the border but around the globe.
Canadians know our beef is the best in the world. We must work to remind our trading partners of this reality. In the meantime, Canadian farmers have every right to expect that this Parliament will offer support in a time of need. I for one intend to work toward this goal and I call upon each and every member of the House to do the same.
:
Madam Chair, if I ever said that government by itself made all the decisions in terms of program then I was wrong, but I did not say that.
What I said had to do with the way that we delivered the program, but let me tell him that it was done with the concurrence of the primary sector, the beef producers themselves and our farm organization. We did not walk alone.
The first program, as he will recall, was a program where we talked about loan guarantees. That never even came to the table before it was taken off. We ended up with cash to the farmers, which ended up being a bad plan. Nevertheless, that is what we put forward.
I think it is also fair to say that no one in their wildest dreams ever thought that 17 or 18 months later this problem would still not be resolved. We should have known. The protocol, if taken to its ultimate limit, would be seven years. We are just nicely into the seven year period. That does not make it any easier to swallow.
Having said that, there is now money for the packing houses. Some people have said that we should have gone to chapter 11 and had a challenge on that. If we had told the people then that it would take two or three years they would have said that was not acceptable.
We have to understand that there was a farming community that thought there was an imminent end to this issue but they needed money quickly. The government, therefore, had to respond quickly or we would have heard from the member's side, from other opposition members and perhaps even from our own side that we were not delivering quickly enough.
It was a case of delivery and then we found out that it was not working quite the way we figured it would work, but is that not often the way it goes, even the way we do our own business sometimes? I think we responded rather quickly and I think we responded favourably to those who were helping us design programs. I think in fairness to all, there is enough blame to go around for all.
:
Madam Chair, I would like to begin by congratulating you on your appointment. I have no doubt whatsoever that you will fulfill your duties with dignity and objectivity.
I would also like to take this opportunity to thank the voters of Jonquière—Alma, a new riding created as a result of the redistribution, for the support and confidence in me that they expressed on June 28. It is a privilege to be able to represent them here in this House. I can assure every one of them that I shall work very hard to demonstrate that I am worthy of the trust they have placed in me, but also and above all to debate issues of concern to them, agricultural ones in particular. What is important is to work hard at delivering the message here in the House of Commons.
The overall situation needs to be understood. In 2003, one case of mad cow disease was discovered in Alberta, which triggered a total ban on Canadian exports to the United States. This plunged Quebec into economic disaster, as well as being a source of great frustration for our Quebec producers. They had been subject to very strict health standards for a long time, yet one cow in Alberta, 5,000 kms away, was enough to send their incomes plummeting. The agricultural industry of Saguenay—Lac-Saint-Jean was already struggling, but now I can tell you it is in dire straits.
In order to mitigate this situation, Ottawa should have entered and should now enter into discussions with Quebec in order to decentralize the food inspection system and divide Canada into a number of public health regions. A similar kind of regionalization—it must be recognized—would have made it possible for Quebec's producers to be spared. They could have been peacefully exporting to the American market today, and showcasing both their constant efforts and their public health leadership. Instead, for farmers in Quebec, especially in the regions, life is not rosy.
I would like to remind the House about the importance of agriculture to Quebec, so that members will understand what an important place this industry occupies. For example, the agricultural sector in Quebec has sales of some $5 billion. There are 44,000 men and women working in agriculture every day to produce the cereal and milk for our breakfast in the morning.
In Quebec, agriculture has also been shrinking in recent years. Between 1996 and 2004, the number of producers dropped from 53,000 to 44,000. We know this is a problem already. We know that a solution to this problem needs to be found quickly.
As for agricultural renewal, that is tragic as well. There are only 6,500 farmers under 35 years old. This figure dropped by 52% between 1996 and 2001. That is the state of renewal in agriculture, and renewal is important. We see the number of agricultural students in CEGEPs and universities declining. There is a lack of interest in agriculture, which is seen as an industry plagued by crises.
Two weeks ago, along with my Bloc Quebecois colleagues, I had an opportunity to meet agricultural producers. My colleague from Chicoutimi—Le Fjord was with us as well when we met these farmers from the Saguenay—Lac-Saint-Jean area. We even met with the Union des producteurs agricoles, not just to hear their message but to understand it as well. They had a great deal to say about the way the Liberal government is handling this crisis. One had to be there to feel the depth of their frustration.
Last year farmers sent a devastating message. I do not necessarily approve of it, but it showed their distress. In front of the cameras, they went so far as to slaughter a cull. This caused an outcry in the local media. The message behind this action is important. These farmers were trying to show that they no longer had any money for their cull. A cow that could once sell for between $800 and $900, today is worth between $0 and $200. In some cases, farmers have to pay to get rid of the cow. This is a significant loss in farm income.
What did the government do after the crisis? It came up with a fifth program which, at this time, is failing Quebeckers and the farmers in Saguenay—Lac-Saint-Jean.
This program was created for Western Canada. It may be good for some, but it does nothing for dairy farmers who have cull.
Representatives from the Union des producteurs agricoles, among others, have taken steps to make the government understand this. Farmers have held demonstrations. There have been political representations. Hon. members expressed their opinion to the former minister and questions were asked during the last Parliament. I can assure you, the government has done nothing.
This is a $488 million aid package, but Quebec is receiving a measly 4%, or roughly $15 million. The government has to understand that what the producers really need is roughly $150 million.
After talking to the Union des producteurs agricoles, we did a small calculation. Our region gets $105,000, which is somewhere between $100 and $120 for each farmer, but we know that one cow used to be worth between $800 and $1,000. This is totally ridiculous and is a slap in the face to the producers.
Another important issue was raised earlier in this House. I am thinking about the whole issue of competition. The producers also pointed out that, while they are being paid next to nothing for the cull shipped to the slaughterhouse, the retail price for streak is still $3.89 a pound. The price has not gone down. One has to wonder where the profits are going, Once again, the government must look into that and take appropriate action.
Our producers are so exasperated that, in another press conference last week, they announced that more pressure tactics would be used. I am very sensitive to their plight. I hope the situation will not escalate, that it will not go as far as last time. But at the same time, I realize that, if something happens, the Martin government will be partly to blame. It must take its responsibilities and help those producers who need help.
This government must get this message, in this House, today. Our farm producers are expecting help. After all, they are in no way responsible for the mad cow crisis, given that the infected cow came from western Canada.
I challenge this minister, this government, to come to my riding and meet with the producers, so that they take in this message clearly, if they are not getting it today.
:
Thank you, Madam Chair. My apologies to my hon. colleague, it was my mistake.
[English]
Madam Chair, I am glad to speak today. All of my colleagues on this side who have spoken are farmers. They are people with current and past farm experience. I greatly appreciate their wisdom and the advice that they give me in rural caucus.
I am also an associate member of the Standing Committee on Agriculture and Agri-food. I sat in on some of the hearings last summer that had to do with the packers. I was shocked by the way we were prevented by members of the opposition from subpoenaing packers and packers' records.
I am not a farmer. I do not have a farming background. I am a member of Parliament who has the enormous privilege of representing farmers. I have worked very hard to do that. I have come to appreciate not only the agricultural community but the entire rural community in my riding, and its enormous strengths, its enormous patience and its enormous wisdom. The farmers in my riding have gone to a great deal of trouble to try to train me so that I know the difference between a cow and a horse now and very important things like that.
I appreciated what one of my colleagues opposite said: that one of the purposes of debates such as this, a take note debate on this critical issue, is to raise interest in the general public, particularly in the urban public, not just in the big cities but in many of the small cities where people either have forgotten there is a crisis underway or have misconceptions about it.
What I would like to do in the short time available to me is speak to that and try to again explain what is going on to people who are not as involved with it as my colleagues in the farming community are.
First of all, there is the point that has been made again and again. Over a year ago now, one cow was discovered with BSE and was very quickly traced and did not get into the food chain, but that triggered this crisis we face. Most of us, and this includes the farmers, I think, although we knew some of the things that happened elsewhere in the world with BSE, thought it was going to be a short crisis.
By the way, the medical and science experts, not only here but in the United States, the international science panel, which the Americans actually paid for themselves, said that it was going to be a short term problem and that the border, which was closed because of this risk of transfer of disease, would be open.
They were proved partly right, because in fact, very quickly, as some of my colleagues have said, we succeeded against all the odds in having the border opened to meat of younger animals. That meat has been flowing over the border ever since. I think that is one of the reasons why people think the crisis is over.
Now we know that we are faced with this longer term problem. The problem has nothing to do with health and nothing to do with science. It has to do with politics. The Americans will not open the border. Our colleagues have given some suggestions, the Prime Minister has tried and our ministers of agriculture have tried. We have tried to operate through customers of the United States, such as Japan, to encourage them to encourage the Americans to open the border. Those things have not worked.
Now we are trying to deal with the longer term problem. That is why I am glad we are having the debate. We are going to build new slaughter capacity in Canada because we do not have enough capacity to slaughter the animals we are producing, the animals we previously were selling into the United States.
We have the set-aside program, which has just come in and which is to fill in the gap between the building of the new slaughter facilities and to get some animals on one side and help the farmers a little while that capacity is being built. There is also a cash advance program, which is on now.
Our minister, as we speak, is in the east trying to open up other markets and diversify, which by the way is something we should have done long ago. The Prime Minister is in Russia and is pressing agricultural exports with Russia. By coincidence, about a year ago I had the opportunity to speak to President Putin of Russia for 45 minutes, and half the time I spent talking to him about restocking the genetic pool of the Russian agricultural industry from Canada.
He himself said at the time that we are such a good fit with Russia, with our climate and so on, that the Russians want our genetic stock and that they are looking forward to trading with us. That is a part of the program. There is no health problem. We are trying to deal with what is now a long term political problem.
There is another misconception out there. In addition to the fact that many city people think the problem is over, many people think it is a western problem. Goodness knows it is something that has hit the west very badly. We know from Alberta and Saskatchewan exactly what the impact has been out there, but this is a nationwide problem. It is part of this extraordinary food producing system that we have in Canada.
In the east and in my riding, the problem is not meat as such. People imagine that sides of beef are going over the border. In my riding there are over 1,000 livestock farms. Almost all the traffic is in livestock. The animals used to go over the border live. It is quite a complex industry, as some members here have said. We are talking about all ruminants. In my riding alone, in addition to cattle, there are llamas, buffalo, goat and sheep farms.
For the benefit of members and the people watching this debate, of the sheep farms in my riding, one of them produces milk and cheese, others are more focused on meat, and others are more focused on genetic stock. Before the border was closed, the Canadian sheep industry was in the process of replacing the genetic stock in the United States.
I have hardly spoken about beef, which I will do very briefly to explain because it is a complicated industry. As my colleague from the Bloc said, I have 125 or so dairy farmers. They are faced with particular problems from this crisis. I have people who are cow-calf operators, people who are essentially feedlot operators. Their problems are all different and they are all suffering.
I hope people watching this debate who are not farmers will feel for the farm families in this amazing, complex food industry that we are so proud of. In my riding over 1,000 families are directly suffering and many others are being affected in the rural areas and in the city by that suffering.
:
Madam Chair, I want to congratulate you on your election as Assistant Deputy Chair of Committees of the Whole. It is very interesting to see you fulfill these duties. I know that you will do a good job and that the members of this House will like you. I welcome you.
[English]
It is with great pleasure that I have the opportunity tonight to speak on the topic of BSE. Normally I speak in French but tonight I will try my best to speak English, the language spoken by the farmer to whom I spoke the other day.
Yesterday, during Thanksgiving, I took the time to sit down with a farmer. He was cutting his corn. He stopped his machines because he wanted a message to be brought to the House of Commons. I know the farmer, David Whelton, is listening tonight. He lives in Pokeshaw, New Brunswick. He said that he hoped the members of the House of Commons would stop picking at each other and try to find a solution because he was losing his shirt.
He gave me a message to bring to the House of Commons, and it gives me great pleasure to do that. We throw around blame but the end result is what we will do for the farmers.
In August last year I had a press conference in Bathurst, New Brunswick. David and other dairy farmers were with me. Also, my colleague, Dick Proctor, from Moose Jaw, was with me. I remember what David said at the press conference. He asked what was happening between the farmer and consumer. He said that he used to get $1,400 for his beef but was getting between $300 and $500. He said that he went to the super store and it was still the same price for steaks. He asked at the store what was happening to the price between himself and the store. He was told that the store was paying the full price, so David asked to be shown the bills to see how much the store was paying. The person at the store said that he could not do that.
David told me about his financial picture before May 20, 2003. He had a debt of $260,000. He had cattle worth $360,000. He is maybe not a big farmer but he is one of the farmers we love in our area. He had feed valued at $100,000. He said he had no mortgage, no debts and no bills, but he had $200,000 net if he was to sell all his cattle. That was before May 20, 2003.
Now he has $30,000 worth of cattle. He has feed worth about $50,000 to $80,000. He has minus $35,000 in accounts payable and a debt load of $550,000. If we put the $515,000 and the $200,000 that he would have had, it makes a difference of $715,000. Now he must sign a mortgage with the Farm Credit Corporation of Canada to convert $260,000 of debt to a long-term 20-year mortgage at prime plus 3.25%.
He had to borrow from the Royal Bank $350,000 as an operating loan to refill his feedlot to handle 300 head of cattle to start over. The operating loan is guaranteed by the New Brunswick government at 80% in order for the bank to lend the funds. An annual cost guarantee to the provincial government is as follows: an annual payment to the province of New Brunswick of a guaranteed loan will cost him $4,200; an annual interest payment to the farm credit for $260,000 at the prime rate of 3.25%; and an annual payment to the Royal Bank for the $300,000 at prime plus 3.25%. Today to keep his farm, he must take a very large increase in his debt load.
After paying the New Brunswick government, farm credit and the Royal Bank, the chance of making a living with a farm is very slim. Not only will meat packers make money from the mad cow disaster, but the bank and the government will make money from people who are losing their shirts.
Between the farmer and the consumer what is happening? I remember we had to twist the arms of the meat packers to get them to come to the parliamentary committee. Where are we going as a country, when our farmers are going down the drain. What are we doing?
David is very sad today. He had a nice little farm and he had money in the bank. Now he is going broke like many other farmers. I would like to thank David for giving us this story, a real one, one about what people are living today.
He applied for a grant and he got $9,000. It cost him $3,000 for the accounting firm just to fill out the forms. He made $5,000 out of $8,000. It cost him $3,000. He gave me all the forms that he had been filling out for over a year, but he is getting nowhere. Know what the department told him? He was turned down because, by their calculations, he did not lose enough money to trigger the payment. What a shame it is to have a program that is not enough. We believe the meat packers and big super stores are making money. They even are getting the money from the government.
The little farmer is not getting the money. He applied last year and he is still waiting for an answer. He was told he would have to wait another 60 days before something would happen. That will be November 25, 2004, 13 months after his first paperwork was sent to the CAIS program. We have a problem.
My colleague said not too long ago that Parliament had no power over the bureaucrats. If we do not have any power, we have a problem. When we talk about what is happening in the United States, we are being nice. We should punish the United States with our free trade. We have free trade one way, and the Americans find a way to stop us.
We had a problem with chickens from two states. All Canada said was that it would not take chickens from these two states. We did not say that we would stop taking chickens from all states. The BSE incident happened in Alberta and the whole country was stopped from sending its beef to the U.S. It was one case. We have eaten more beef in the last few years than we have ever eaten and no one has died.
I was in Taiwan a couple of weeks ago, and I asked a question. Members from the Conservative Party and the Bloc Quebecois were there also and they asked why they did not buy our beef. The answer was that they had not been convinced technically that it was okay.
Are we doing our job? Did we try to convince them? Did we show them the proof? We told the Taiwan people and the foreign deputy minister that we believed the only reason we were having the problem with the United States was because they did not want our beef, the same way they did not want our softwood lumber. They have been treating us the same way for the last few years, and it is not right.
A member from the Conservative Party has said that we should go to the States and sit there until the Americans understand. They do understand. However, this is not right. We have to look more at how to treat our people.
Maybe I can suggest a solution to the government. Why do we not set up a royal commission? We could find out what is happening in Canada alone. Why is it today our farmers get $500 or $600 for a beef, yet when we go to the store, we still pay the same price? Why is the steak still $11.50 per pound, but the farmer is losing his shirt, a guy like David who was working late yesterday. It is the same thing with the one in Alberta, the one in Winnipeg, the one in Edmundston, New Brunswick, the one in Sussex, New Brunswick , the one Nanaimo and the one in St. George, B.C. I think it is important. I think the people and farmers are sick and tired too that we are having these discussions. While we are having these discussions, for over a year they have been losing their shirts. That is not right.
I hope we do more than just talk among ourselves. I hope we find a solution for the farmers. There is a solution, but we have to do the right thing. We are together here to find the solution for our farmers.
:
Madam Chair, there were examples that came up earlier, similar to the producer the hon. member mentioned. We have said and we know that producers are in very tough financial shape. In fact the example I gave earlier, which we have to try to address, is the food price spread within Canada. I have a grading certificate here from a producer that is a neighbour of mine, similar to the case the hon. member mentioned, in which eight cattle were shipped. Seven of them were triple A, the best cattle that we can ship, and one was a double A. The individual was paid from $1.29 to $1.33 per pound. How does that compare to the price of steak when we buy it in the store?
The point I made earlier, which I want to make again in response to the member's remarks, is that I would hope when Canadian consumers go into the stores, they ask if beef they are buying is Canadian. There are instances in the country where it is not. The Government of Canada has not issued supplementals. We have issued, I believe, a half tonne of supplemental imports this year. I believe Canadians should be asking if they are buying Canadian beef and supporting the Canadian producers. They should be asking why is a greater share of that dollar not going to Canadian producers from the packing, the processing and the grocery chains in this industry? I agree with the hon. member on the point. Yes, farmers are in serious shape in every province across the country and they are indeed suffering.
Also for the member's benefit, I do want to mention what the government has been doing. All too often we fail to mention that. We recognize that we need the border to be open. On September 10, the minister took a somewhat different tack and said first, that we would keep the pressure on the Americans to open the border, and everybody in the House wants the border open. Second, he said that we would move to increase our slaughter capacity within Canada and we would assist the industry to do that. Third, he said that we would bring in the two set aside programs to try to at least bring some normalcy to the market so that prices should rebound, should come up and producers would be paid out of the marketplace in the interim while we were getting the slaughter capacity up to speed. Fourth, the minister today has gone to Japan, Korea, China and Hong Kong and the Prime Minister is in Russia to try to increase our exports elsewhere around the world to lessen our dependency on the United States markets.
The point I want to make is, yes, the hon. member's case is similar to many in the country, but let us not deny that the government is not also trying its best to improve the financial situation on the farm and trying to move us down the road with a Canadian position for the future.
:
Madam Chair, I appreciate the comments from my colleague from P.E.I. We are seeing the same problem in both provinces and we are in agreement. However, what is the government doing? We must also agree that it has been happening since May of last year. Why does a farmer have to wait 13 months to get an answer? Why are farmers losing their shirts and the government is saying that they did not lose enough? There is something wrong with the program. It is as simple as that.
What are we going to do for the guy from Pokeshaw? What are we going to do for the guy from P.E.I.? What are we going to do for the guy from Gaspé, or the guy along Highway 20 coming up to Ottawa? What are we going to do for the guy in Timmins, Ontario? What are we going to do for all those farmers in southern Ontario?
When a farmer who has other things to pay has to pay an accounting firm to work on his papers to try to save his farm, what are we going to do? That is the question that David Whelton is asking and I am supporting what he is asking. What are we going to do to help those people? It does not make sense that a farmer has to wait 13 months.
We need to expedite this faster than that. We must be able to do something other than ask farmers to fill out a 10-page form, to go back five years and spend more time. They do not have time for that, they have to look after their beef. They have to look after their farms. That is the matter that is important today.
At the same time, what about the meat packers? What is happening with them, or the big SuperValu, or the Sobeys and Loblaws? Why are we not asking them why we are paying the same price in the store for Canadian beef and the farmer is not getting paid?
Why not raise this question as a government? The government has that power. The government has the power to do something, to carry out a study, or we have no business being here. If we have no power then we have no business being in the House of Commons. We are here to protect the people and we are here to protect our farmers. It may be nice to have a car, but maybe we do not need it. It may be nice to have a motorcycle, but maybe we do not need it. However, we need food and we must support our farmers.
I am sure that the United States is supporting its farmers. I am sure that any other country in the world is supporting its farmers, but our farmers have been let go. The government will say no, it has done all kinds of great things, but the answer is still that the farmers are not happy because they feel they have been left behind. They are the ones who get up at 5 o'clock in the morning and are in the barn. They are the ones who have to go and get all the feed. They are the ones who have to work seven days a week. They are the ones who do the hard work, and they are the ones who are treated the worst right now. It is not right.
That is why I call upon the government to do something different and do it faster. We need to help farmers, have better answers for them, and have programs that will help our small farmers too. That is what we need.
I do not want to take anything away from what the government has done, but it does not work when a farmer has to wait 13 months for an answer. It does not work when the department says a farmer did not lose enough when he is $550,000 in the hole. That is not an answer. It is not right.
It is not the first time that I have spoken to farmers. They are going through hell. Our dairy farmers are going through hell. It is not acceptable. We have to look after the ones who provide us with food. We are losing them and we will have big business looking after it.
If we are going to help farmers, maybe we should help them create co-ops to do their own processing. Maybe that is the competition we need. Those farmers were telling me they had a group and wanted to create one in P.E.I. Maybe we should support that. We should take a stronger look at it and how we could advance a solution faster. Maybe that will be the answer.
:
Madam Chair, we are having a very good debate tonight. It is certainly frustrating to so many people who are probably watching this, as farmers back home are looking at a very desperate situation.
It is difficult to believe that until May 2003 our farm community in the beef and dairy sector were doing quite well. Then lo and behold, one lowly animal was brought to slaughter. Of the probably 15 million cattle we have in this country, one cow went to market and it was found that that cow had BSE. With that, it entirely changed the outlook of our beef production in this country.
We know that in terms of changing the Crow business back in the early 1990s, the west especially developed a large feedlot industry. We know that until the period of May 2003 that most beef farmers producing quality A beef would probably get between $1.70 and $1.80 per pound.
I would like to point out that in our agricultural community, we have done very well in trying to identify an animal that would be brought to market, in terms of where that animal was, what it was fed, and how it arrived there, because back in the 1990s we brought in an identification system by which cattle were tagged. When a cow went to market, it was very easy for the packing plant to determine the history of that animal.
So in terms of the work that our Department of Agriculture and our producers have done over the last 10 years, we have done an excellent job in identifying beef production. But lo and behold, we found that the Americans decided to close their market. We have trouble trying to reason why the Americans would do that when in fact about 80% of our cattle that was leaving this country was going to the American market.
We also have to realize that in terms of BSE, along with another disease that was prevalent in parts of Europe called Johne's, it had reached proportions, especially in the United Kingdom, where a serious look had to be taken at the livestock industry. The British at that time, back in the 1990s, decided they had to have a major cull to destroy a lot of animals that had been fed certain foodstuffs.
The Americans, looking at their markets in terms of Asia, were afraid that they would have trouble selling American beef to the Japanese, Korean and other Asian markets. That may justify to them why they did that to us. Our own cattle industry, which was producing excellent beef, and our dairy industry, which was selling good genetics not only to the United States but to Mexico and to other countries, were all affected by the American ban that began back in May and June of 2003.
We had a previous debate on this subject in the House and we brought out some excellent points. With those points, our government has made certain changes in terms of our livestock industry. It has worked hard with producers and with provincial governments. In fact, our federal government has put nearly $2 billion into this problem already.
However, tonight as we address the issue we know full well that even though we have put a lot of money into it, there are still farmers like David Whelton out in Pokeshaw, New Brunswick, whom I know very well, who has trouble at his farm in trying to meet the demands that the banks and others are putting on his own livelihood. As we address this issue, we realize that across this country there are many people, like the constituent in Acadie--Bathurst, who are in grave circumstances as a result of the BSE problems.
I would suggest that the matter, in terms of opening the markets, especially the American market, has been a serious problem, one that our minister has spent a lot of time with. Both our previous minister and the present Minister of Agriculture and Agri-Food have worked with the Americans. They have talked to the American secretary of agriculture. They have also worked with Asia in trying to get markets in Korea and Japan and other places.
Today we know, as we look at this livestock industry, that more things have to be done. We know that there has to be increased slaughter capacity. In fact, if we do not increase our capacity and find markets for our beef, then we will find that a growing number of livestock back at the farm level will get older and older and will eventually have to be dealt with.
One of the members tonight talked about the price of beef and the fact that consumers are paying what he called an exorbitant price for beef while at the same time farmers generally do very well today to get $1.30 for hot rail grade A quality beef. We are told in terms of economics that two things are happening. First of all we are dealing with a situation where we do not have enough slaughter capacity but Canadian consumers are demanding more beef. As a result, in terms of the two forces pushing together, the Canadian consumer is paying too much for the meat he is buying for his daily table.
I would suggest that unless we develop a major culling program in this country to cut back on our inventory of animals over 30 months of age, many of them getting older, in fact older yesterday than they are today, we in fact will be facing disaster in terms of the livestock industry.
I know it is a very difficult thing to talk in terms of a cull. The British have done that very extensively. It would improve the genetics in our livestock herds and would offer our farmers an opportunity to develop our market, which would meet the supply that they are offering to the Canadian consumer.
We have had a good debate. I certainly hope I will get some questions on what I have said. We have had a number of programs and all of them have worked a little, but the situation has to be addressed in terms of the producer, the provincial governments and our own department, which has worked quite extensively to try to find a solution to this problem.
:
Madam Chair, I will be splitting my time with my colleague from Haliburton—Kawartha Lakes—Brock.
I rise tonight in this 38th Parliament to speak once again on behalf of both my rural and my urban constituents on the issue of BSE. I would like to take this opportunity to thank the people of Kamloops—Thompson—Cariboo publicly for their vote of confidence in sending me back to be their voice in Ottawa.
Since May 20, 2003 I have spoken often about a specific need not being met by government: a solution to the BSE crisis. The situation is becoming more and more serious with each passing day.
In 2003 there were 28 cattle ranchers that declared bankruptcy. For the first six months of 2004 there have been 32 and one can only imagine what the last six months of the year will bring. These are not just statistics. These are real people who work very hard to make a living. They deserve a government that works equally as hard to ensure their future success.
A live weight steer that would have fetched $1.60 a pound two years ago at auction may get up to 65¢ per pound. That is a huge discrepancy between what was happening before and what is happening now.
Farmers are having to take outside jobs to keep their farms going and that leaves the farms to deteriorate. The feed farmers are not selling their feed because the ranchers simply cannot afford to buy it.
In my own riding we have had a double whammy. We had forest fires last year. There was no production of feed. Everything was burned and we relied on the good graces of the people from Wild Rose county in Alberta to get us through a very tough summer. We are very grateful for that, but we have to look toward the future.
I have told the House before what the impact has been. Independent self-sufficient ranches that have survived for 100 years have suddenly been brought to their knees by a government that is incompetent. What has the government done? The answer is next to nothing, unless we count the excuses, the press releases and the head patting that has gone on which the Liberals think passes for progress.
We are talking about people, livelihoods, lifestyles and the Liberals are talking about covering their backsides. How callous can they possibly get. This is yet another industry in Canada where we can hear the flushing as we speak. We have to do more than we have done to date.
The Liberals talk about a consultation process, but it did not take place. The proof of that lies in the results. The Conservative Party has consulted and it has done so with those who produce. If we want answers and we want to know what the problems are and we want to know what the solutions are, it is imperative that we speak directly to the people who are affected. The government has not done that. It says it has, but it has not.
Those who have been completely overlooked in this disastrous situation, aside from the cattle ranchers, are ranchers who produce other ruminants. It has been 16 months with no recognition from the government side for those people who raise goats, sheep and a variety of other ruminants. Those people have had absolutely no say in their future and have had absolutely no input into what the government is planning to do.
We are not talking about a few dozen head here. We are talking about two million head. To not even discuss this situation with them is very serious.
We have to ask ourselves a question in Canada: Are we going to be independent producers of our own food or are we not? One of my constituents who is a sheep rancher told me that his own son is having second thoughts about carrying on the family tradition. The reason for this is not that he has lost his love for the family ranch; it is that he has lost even the most minuscule amount of faith in a government that has let this happen to his family and to hundreds of thousands of other families.
It is time to wake up. We have to do something fast and we have to do something serious or we are in jeopardy of losing yet another industry in this country. A government that would allow that to happen is not fit to govern.
:
Mr. Chair, I listened with attentive ears to what the hon. member had to say.
It is fair to say that we have a right to pass judgment but judgment should be passed on fact. I heard the member say that there was next to no help from the government. If $1 billion is next to no help, then we should be prepared to ask our farmers to give it back and we will give it to the small industries, the small companies and businesses that are going bankrupt every day. There is no government help whatsoever for the farm machinery dealer who goes down as a result of this industry. People in my area are going bankrupt.
The Huron portion of my riding probably represents the largest in terms of dollar revenue return in agriculture than any riding in Canada east of Winnipeg. When the Bruce portion is taken in, it becomes considerably larger. I know what I am talking about. People in my riding are hurting. Their loans are being called in by the banks.
On no consultation, I can assure the member that there has been a lot of consultation. I can assure her that every member in the House has done some consultation. It is not only fair to pass judgment on this side of the House but perhaps on hon. members of the other opposition parties as well. I am sure they would agree with me.
The member said that we do not know what farmers want. I think we know what they want. If the results of going to the United States would be as positive as what we are being led to believe by some of the members tonight, then what are the results of the visits of the premier of Alberta to the United States? He has been there at least twice that I know of. It has been well publicized and is well known throughout this country that he has gone to make those kinds of requests to the United States and the politicians south of the border that would open the doors, but the doors have not yet been opened. There has been a lot of effort made by a lot of people, all sincere I am sure, but the result is exactly the same.
As my hon. colleague mentioned a few moments ago, there are those in elected office in the United States who want to see the borders remain closed. In the United States the organization R-CALF wants the borders kept closed. These are farmers. Convince our farmers that we have not done anything. The member had better talk to some of the farmers in the Huron--Bruce riding.
:
Mr. Chair, it is nice to see such passion at this time of the evening. I wish that passion had been there when we needed it, at the very beginning of this crisis when we could have perhaps done something about it.
My colleague and I represent 70% of the ranchers in British Columbia. They are independent people. They are hardworking people who never ask for help. No matter what the weather is like, no matter what the conditions are, no matter what is happening in their families, they have a job to do and they do it without complaint.
The fault lies with the government. The government did not do enough at the very beginning. In my opinion, it has not done enough since the crisis hit to save these people's livelihoods. The government brought them to their knees. Some ranches have been in my riding for over 100 years. Ranchers have now been brought to their knees, not through their own incompetence, not through something they did, but through something over which they had absolutely no control. It was in the hands of government. This problem has been mishandled from the beginning.
I am not standing here tonight to bash the government. I am standing here tonight to tell the House that I want a cooperative effort made to open the borders and to save an industry that is in dire jeopardy.
Mr. Paul Steckle: Give credit where credit is due.
Ms. Betty Hinton: This is serious. The member can heckle me all he wants.
I stand here because I represent 100,000-plus people in my riding who are seriously hurting. I am sorry for the things that are going on in other people's ridings. If they are suffering, they have my sympathy. If you want my support to make it better for your riding, you have it. I am standing here tonight asking for your support for an industry that is in jeopardy because the government has failed miserably. The cost of that is not going to be on the shoulders of the government. It is going to be on the shoulders of families who have worked for years in an industry that you are helping to destroy.
My riding has been faced with all kinds of things. The government dropped the ball on softwood lumber. That killed a whole bunch of industries in my community. It killed a whole bunch of families' incomes. Now you are killing the cattle ranching industry but it is not just cattle ranches. I told you what has happened to sheep producers, goat producers and many other producers. Stop being adversarial in the House--
:
Mr. Chair, I will begin by thanking the voters of Haliburton—Kawartha Lakes—Brock. For those who do not know, my riding is in central Ontario. It is south of Algonquin Park tucked between Lake Simcoe and Peterborough. Lindsay is my riding's largest community but it is made up of many small villages and towns.
The northern part of my riding where I am from is known certainly to everyone in the Toronto area as part of cottage country. The southern part of my riding has a history of successful mixed farming that goes back almost 150 years. It is obviously those farmers that I am concerned about this evening and about whom I would like to speak.
Agriculture is and always has been a major industry in my riding. That is why I feel it so appropriate that my first speech in this place will focus on preserving a future for agriculture. The BSE crisis has had a devastating impact on many families in my riding and I fear the worst is yet to come.
BSE has hurt beef producers, but it has also hurt many others, such as sheep, goat, elk, deer and dairy producers. It has also hurt many businesses that rely on the primary engine of agriculture to drive a rural economy, things like implement dealers, truck drivers, auction barn employees, hay producers and seed dealers, to name just a few.
One week ago today as I listened to the Governor General deliver the Speech from the Throne, I waited patiently to hear what the Liberal government would have to say about the future of agriculture in Canada. I waited and waited and waited. Before I knew it, the speech was over and I realized that the subject of agriculture had not been raised at all. In fact, the word “agriculture” had never even crossed the lips of Her Excellency the Governor General.
Over the past week as I have listened to the debate on the Speech from the Throne, my mind has drifted beyond what I did not hear from the Liberals to what I really wanted to hear.
Prior to entering elected office, I worked for several years as a professional political speech writer. Just as music fans can dream about the greatest concert that was never given and sports fans can dream about the greatest match that was never played, speech writers can also dream about the greatest Speech from the Throne that was never delivered.
In that vein, here is what I would have liked to have seen written in last week's Speech from the Throne. It goes something like this:
“The Government of Canada acknowledges and appreciates the enormous contribution that farmers make, and have made, to Canadian society. The Government of Canada recognizes that farmers are important, and that the work they do to provide food for our families is crucial to the health, wealth and security of Canada”.
“In response to the crisis that now exists in agriculture across Canada through no fault of the farmers, but rather as a direct result of a trade conflict, the Government of Canada has declared a state of national crisis in agriculture. In so doing, the government will make the immediate management and ultimate resolution of this national crisis its number one priority”.
“The Prime Minister of Canada, together with the Minister of Agriculture, will assume co-management of this file until sufficient progress has been made so that this state of national crisis can be lifted”.
“The Government of Canada is committed to seeing farmers and the entire agricultural community through this difficult time, and to ensuring that our farmers keep on farming today, tomorrow, 10 years from now, and 50 years from now”.
“The Government of Canada wants farmers to know that they are valued members of Canadian society, and that they are valuable contributors to the Canadian economy”.
But alas, these words remain but a dream for they were not heard in Canada's Parliament last week. It is my expectation that such words will never be heard in this place until we have a Conservative government fully committed to creating a future for young farmers and a future for everyone in rural Canada.
In the meantime, I want farmers in my riding and across Canada to know that I and the Conservative Party will continue to make every effort to force this national crisis in agriculture onto the agenda of a reluctant and urban oriented Liberal government. I hope that one day I get to make the speech that I just referred to.
My final comment today has to do with something that was in the Montreal Gazette on Saturday, a story about Bombardier. I will quote two short sentences:
Federal Transport Minister Jean Lapierre says his government must move quickly to put together a package to persuade Bombardier Inc. to build its proposed new, larger airliner in Canada. Otherwise, Ottawa risks seeing Montreal lose hundreds more aerospace jobs, Lapierre said yesterday in an interview.
It is interesting to me that we are talking about tens of thousands of affected Canadians from coast to coast and there is no action but when an issue comes up in one of our large urban centres that may potentially affect hundreds of jobs, the government is willing to step forward. This article is suggesting $700 million.
:
Mr. Chair, this is the first time that I have the opportunity and the privilege to rise in the House of Commons. It is with great enthusiasm and pride that I am taking this opportunity to salute and thank warmly the people of the riding of Compton—Stanstead. I do not want to hurt anyone's feelings, but it is, in my opinion, the most beautiful riding in Quebec. I invite you to come and see for yourself. I will be honoured to be your guide.
Having said this, I want to bring you back to the riding of Compton—Stanstead, because a number of the concerns that our constituents have result, in part if not in full, from decisions made in this House. While the riding has a large urban population, much of it is covered by forests and farms, particularly dairy farms.
As regards the softwood lumber and the mad cow disease issues, which have been dragging for so long that the situation has become dreadful and unbearable for a large number of producers. They feel totally abandoned and left to fend for themselves by Ottawa, by the federal government, by those who make decisions in this august chamber. These decisions have a direct impact on their daily lives, but they are made by people who do not know anything about what is actually going on.
Speaking of cows, I point out that I will now deal more specifically with the impact of the mad cow issue in my riding, across Quebec especially, and mainly on the cull cow and the feeder cow farms.
You know as we all do that, in May 2003, the discovery of a case of mad cow disease in Alberta led rapidly to an embargo by the United States, which was followed by other countries, causing extremely serious problems within Quebec's beef industry.
We can well ask how a cow that falls sick in Alberta, 5,000 kilometres from Quebec, can have such devastating effects there. We are told that mad cow disease is contracted through the use of contaminated food, such as animal feed containing ruminant by-products. However, this practice has not been used in Quebec for quite a long time. Why then must Quebec producers be penalized for something that is not their concern? In this matter so incredibly badly managed by the federal government, not only the cow is mad, and I will try to respectfully illustrate this.
If we go beyond political partisanship, we see that science indicates that Quebec producers have the best record in Canada in terms of management and disease monitoring for their herds. It is probably important to point out that Quebec cattle farmers have been prohibited from feeding animal meal to their cattle since 1993, well before the federal ban in 1997. Quebec producers find the current situation particularly frustrating since they have been abiding for a very long time by a whole series of restrictions to ensure that their cattle are disease free and that their products are of the best quality possible.
Although this is grossly unfair to our producers, it is nothing new. This kind of unfairness is well known and has to do with Quebec's specificity. Of course, it bothers some people when we say that Quebec is “different”. The rest of Canada would rather think it is only a catch phrase, something said in jest or so much bravado. Why is it so hard for them to believe that Quebec is different not only in terms of our culture, our values and our language, but also our agriculture? Farming in Quebec bears little resemblance to farming in western Canada. When you insist on national legislation and approaches, you can expect some major bumps along the way.
I will quote anyway the fine words written by the Prime Minister of Canada during the recent leadership race in the Liberal Party of Canada:
Every time I speak with farm producers, I realize how extensive the farm sector is in Canada. Different regions focus on different products; the risk factors are not the same everywhere; the level of diversification, added value and intensification varies considerably from one province to another; the age and attitudes of producers must be taken into account, understood and incorporated into the policy development and program implementation process.
This is from a letter addressed to the Canadian Federation of Agriculture.
At first glance, one might think that these were the words of someone with a clear view of the farming reality in this country. I am sorry to disappoint you, but that is not the case. Going back at least 25 years, federal policies have consistently ignored this diversity, and the single principle that overrides all others is that, since a Canadian is a Canadian no matter where they live, any agricultural program must therefore be the same for everyone.
I will keep to myself the qualifiers that come to mind in connection with this kind of social and economic aberration. Still, one must recognize that there have been countless interventions in Ottawa based on a model so broadly used that it really applies to nobody.
The new agricultural policy framework that was just cooked up for us in Ottawa fits perfectly into that category. Here is an agreement that is being forced upon the provinces and that they did not have the choice to approve to get their share, even though it misrepresented the initial agreement, which was much less centralizing. I am drawing inspiration from remarks made by Laurent Pellerin, the president of Quebec's Union des producteurs agricoles, who, to my knowledge, is neither a Bloquiste nor a sovereignist, but who may well become one at the rate at which our producers are being attacked, and given the kind of financial strangling of Quebec that has been going on for years in a number of areas.
Here I would like to say something to limit an impression being allowed to spread, no doubt because it serves the interests of those behind the rumours. I have heard frequent criticism of the senior officials drafting agricultural policies from the comfort of their offices, without ever setting their feet on site. In my humble opinion, this criticism is unjustified in most cases. In fact, it seems obvious to me that policies generally originate with the political world, and thus with politicians.
This fact, no doubt straightforward, struck me when I heard the throne speech. This is a speech that is supposed to reflect the intentions and orientations the government has in mind for the coming months. Yet, as we have heard numerous times this past week, the Government of Canada is the Prime Minister and his team of Liberal MPs, elected by a scant 33% of those who exercised their right to vote on June 28 across Canada. Those are the rules of the game, and I accept that.
If I detour via the throne speech, it it is because I have discovered the following two main thrusts in it: the incredible number of federal intrusions into areas of provincial jurisdiction, and the steamroller effect of all-powerful centralizing machinery driving this government and leading to the present impasse in which agriculture in Canada and in Quebec now finds itself.
Ottawa has come up with five different aid programs so far in an attempt to remedy the effects of the crisis. The needs of Quebec producers are not being taken properly into consideration for the simple reason that the intervention model is based on a reality that is foreign to Quebec and unacceptable, particularly in its latest version, to the cull cattle and feeder calf sectors. Yet, with a bit of effort, and a modicum of good faith, it would be so easy to make the corrections required at this particular point in time.
I would have a number of suggestions, recommendations, even supplications, to pass on to the Department of Agriculture and Agri-food and to the minister and his team, in the hope that they can find a few minutes to examine them between celebrations.
In my opinion, the first question to ask is this: is there real political will to settle the mad cow issue? I speak of political will because it is clear to me that this is a political issue, a political embargo, where it is evident American protectionism is being used to punish Canada for having dared to refuse to go to war alongside the Americans in Iraq under the false pretext of weapons of mass destruction. It is obvious that their real objective was to get their hands on the planet's main oil supply, right under the noses of the international community, which barely dares speak above a whisper. Can we force our neighbours to listen to reason or are we doomed to domination by the imperialist wishes of our American friends?
I cannot believe that Canada, if it pulled up its socks, could not find reasonable solutions for everyone. Our Prime Minister recently went to Washington to discuss the mad cow situation with President Bush and to try to find solutions. Our Prime Minister came home with a bill for US$5.5 billion for helicopters, but absolutely nothing new on the mad cow issue.
This is not exactly what we call having a backbone. If Canada has so little negotiating power with this almighty neighbour, we can understand that our defence minister seems so anxious to get involved in the star war with the American president.
I received a distress call from a red deer producer. These people proudly showed their farm to us, but their message was one of despair. This despair was very troubling because these people, like many others, really feel on the verge of losing everything they have built up by the sweat of their brow for years.
It is the same for the neighbour on the left or on the right. It is the same everywhere. These people raise red deer. They are professionals, just as dairy producers with 20, 30 or 50 years of experience are professionals that our country should be proud of.
These red deer producers make a living by slaughtering animals sometimes. To slaughter a red deer, they must use a federal slaughterhouse. However, the federal slaughterhouse in the area refuses to slaughter the red deer because—
:
Mr. Chair, I am actually shocked by a couple of comments that the member made.
It is absolutely terrible that a Canadian member of Parliament would stand in this House and basically imply that someone else's problem, which is happening in this country, is of no concern to her. It is absolutely terrible for a member of Parliament to take that position.
The member opposite asked why we penalize Quebec producers. Quebec producers are not being penalized. We operate under a control system, under programs that are to a great extent national in scope, and I will come to that in a moment.
The member asked why we would penalize Quebec producers for something that was of no concern to them. I think it is of concern to every Quebec producer if any animal in this country has BSE because the beef industry is integrated. Cattle move from Quebec west. Cattle in the west move from the west to Quebec. Some cattle from elsewhere in the country are slaughtered in Quebec.
The fact is that in terms of her point, why not just make Quebec a region and leave them out of this problem, it is pretty near impossible to do that on BSE but it is something we have done in other cases where we could. We have used the principle of regionalization with significant success in the past for the benefit of producers in Quebec and elsewhere in the case of tuberculosis, avian influenza in B.C. which was a real disaster for producers but we were able to isolate it there so that Quebec producers and the rest of the producers in Canada could continue to ship and export.
However, on BSE, and I want to make this point specifically, no country has successfully zoned for BSE. To assure our trading partners of BSE freedom, Canada would need detailed records documenting the movement of animals, their point of origin and point of slaughter, feed and animal products into and out of that area and, because of the long incubation period for BSE, records would need to date back many years.
In this instance it is impossible to go to that regionalization. We have done it in other instances. Is the member really suggesting that either she, her party or Quebec producers just do not give a darn about the rest of country? Is that what she is really suggesting in her remarks? I hope not.
:
Mr. Chair, it is a pleasure to address this important issue this evening. I will be sharing my time with the member for Souris—Moose Mountain. I have to say as an aside that I appreciate the new member but I warn him that he steps into a pair of big shoes.
I want to acknowledge the former member of Parliament, Roy Bailey, a great member of Parliament. We look forward to seeing Roy down the road. Hopefully we will have a chance to run into him down the way. He was certainly someone who appreciated the issue of agriculture and certainly the problems caused by the BSE crisis.
The issue I want to address off the top has to do with the parliamentary secretary getting up, almost with every speech that is given, and sort of reciting the number of programs that the government has launched to deal with the BSE crisis, running through the amount of money that the government is apparently spending to deal with the BSE crisis.
I appreciate what the member is saying. I think there is truly some goodwill there in wanting to deal with this situation. However I have to remind him that there is a big difference between programs, the amount of money that is thrown at the problem through a big bureaucracy and the results that are obtained. I think that is where the parliamentary secretary and the members on the government side just do not get it.
Earlier this evening I pointed out that they have a program for backstopping any kind of initiative to start a new slaughterhouse. They have all these programs in place, but the problem is they do not even have the forms yet for that initiative. In fact, one entrepreneur who contacted the Department of Agriculture was informed that there would not be forms for two to three months while we are 18 months into the problem.
Two to three months is just too long. It is unacceptable. What is the problem? We have been through three agriculture ministers in the last eight or nine months. It is like a revolving chair over there. There is always a new minister but there are never any new ideas. There is nothing that moves this problem forward.
There are so many aspects to this where the government has failed. I want to touch on some of them. I mentioned a minute ago that the programs and the money that the government is throwing at this is not working. I want to back that up by pointing out some of the interventions I have had from people in my riding.
I love the people of my riding. They are such good people and they work so hard. They are in a terrible situation today. I think hon. members on all sides of the House know that in the cattle industry people are not accustomed to having to come to the government to ask for some support. It is antithetical to what they believe in.
Unfortunately, we are in that situation today. They come and, in sort of a very demure way, ask for some support and help. I think they almost feel badly about it. When I read these interventions from people in my riding they talk about how every time the government gets into these things it fouls them up, but that they are in a situation where they have to accept it. I have a number of these interventions in my binder.
In fact, that is true. That has actually been borne out in what we have seen in the last little while. While my friend, the parliamentary secretary, spouts statistics about how the government has brought forward this program and that program, all I know is that I have interventions from people here saying that their incomes have dropped by two-thirds because the border is closed. They say that they used to sell bulls into the U.S. but since their incomes have dropped by two-thirds they no longer have the ability to purchase cattle, to expand their herd or do the things they used to do. They are worried about their livelihood.
I have other interventions here from people who say that because the programs are not working they are in a situation where they are no longer able to get credit from the banks. They cannot expand their herd and do some of the things that they wanted to do.
I have had interventions from people who are absolutely desperate. They do not know what to do or where to turn. I want to argue that the government has not done the job that it should have done and should do because it thinks its job is finished when it announces a program.
I want to argue that the government's job is finished when we get some results. Those results have not been forthcoming, and until they are, the government had better be nose down, rear end up and get to work. It simply has not done the job that it needs to do.
:
Mr. Chair, I agree that the phenomenon we are facing is unusual and perhaps unprecedented, but it requires action on the part of the government. For 18 months we have not seen the border open. For the best part of the first year, it was hope against hope that it would be open without taking any positive steps to make sure it happened.
Despite all the programs that have been mentioned and all the dollars that have gone in, why are farmers frustrated? Why are they in a desperate situation? Why are they are not getting responses when they ask where the money is, where their entitlement is? Why is it so complicated for the farmers? Many are unable to hire lawyers or accountants to get the forms completed. They must do it themselves. They find they have made errors and they do not get the assistance. When they phone, there are delays. When there are timelines, they are not met.
While the minister is postulating about what needs to happen, farmers and communities are going down. It is real. There is frustration for farmers, real people, in elevators and offices, grown men with tears in their eyes, who are saying that they do not think they can make it through the fall, and we are talking about what we should do.
The big issue is, do we want to preserve our farm industry or do we not? Do we want to save our cattle industry or do we not? If we do, we must take immediate and bold steps and invest some funds. I am not talking $600 million or the $1.6 million. Most of the programs are designed to meet the dollars that the government has set aside as opposed to asking farmers what they need and designing a program to meet those needs. That is lacking. It is not that difficult and it is not that complicated. The programs should be simple and easy for the farmers to understand.
Many of the issues facing the farmers are beyond their control. There is BSE today. Tomorrow it is something else, low commodity prices or world market conditions. We are expecting our farmers to preserve and save our food supply, to preserve an industry by using their equity, by borrowing more money, by mortgaging their farms, carrying the load that our country and their government should be carrying on their behalf.
When something happens that is beyond the control of farmers, our governments must step in immediately and help them out. There needs to be a program designed that is not ad hoc and that is not a knee-jerk reaction, as we have seen.
For instance, the first program put moneys into the pockets of the farmers only to have the cattle dumped on the market. The cattle crisis goes on and the funds are passed over to the packing and slaughter houses. Somehow the government tries to blame the opposition and says that we should have known better. The moneys are going some place else. The government designed the program and ought to know how it works. The minister should take those things into account before the program goes on.
Now we have a stand aside program. It has some value but it will go into feed which will be lost again, and we have no assurances that the market will survive.
We have to look at the big picture. We have to be sure that our farmers and ranchers are backstopped from those kinds of circumstances that are far beyond their control. We need to have a simple process. We do not want to have farmers investing money to join a program, like the CAIS program.
I heard the minister say that it was an income stabilization program. In fact it has requirements of five year averages. Five poor years are still five poor years. The rules are arbitrary. Announcements are made before programs are ready to receive applications. To me, it seems disjointed. It seems to be not well thought out. I realize it is not an easy situation and that it is complicated, but I would ask the government to decide the big issue. Are we going to preserve our farming industry? Are we going to preserve our cattle industry? If we are going to, then we have to meet the need that will meet that result rather than the government saying that it will give a little and try to design a program to meet that bit while it hopes farmers will survive, that they can use their equity and come out the other side.
The industry is being told that it may take a year or two but that it is on its own except for what it gets from the government, which is not very much. It is time to be more specific and bold. It is time to design a program that will preserve our food industry.
:
Mr. Chair, it was very important to me to participate in this take note debate on the mad cow crisis. The major issue for us in Quebec is for the federal government to provide an aid package that addresses Quebec's problem with cull, and also to move forward with the regionalization of the food inspection system.
I wanted to take part in this debate because the region I represent is largely rural. Agriculture is vital to the riding of Richmond—Arthabaska. The Arthabaska RCM is the largest milk and beef producer in Quebec. The region offers many exceptional cheeses, including one called Sir Laurier d'Arthabaska, for your information. There are also hog and poultry farms, and speciality crops such as cranberry, honey and maple syrup.
Centre-du-Québec is a major dairy region with more than 150,000 farms representing 16.3% of dairy production in Quebec. In the Eastern Townships, the other region that overlaps my riding, there are roughly 1,000 dairy farms.
The mad cow crisis affects all these dairy and beef farmers. Last week, I attended Expo-Boeuf in Victoriaville, the main city in my riding. It was a great success again this year, but I must admit that the morale of the producers is quite low these days. No wonder, prices have dropped by 30% to 70%.
The mad cow crisis has affected dairy farmers who sell their cull, in particular. My colleague, the Bloc Quebecois critic for agriculture and agri-food and member for Châteauguay—Saint-Constant, said it well at the beginning of this take note debate: the federal government did not consider Quebec's particular problem when it announced its recent aid package. Dairy farmers cull 25% of their cows a year, but the federal government is compensating them for only 16% of their herd.
I know that the Minister of Agriculture and Agri-Food was present at that time. I trust that he paid careful attention to what the hon. member said, since she herself is a farmer and was, moreover, once named Quebec's woman farmer of the year. It is praiseworthy, appreciated even, that the government is pressuring the United States to reopen the border to Canadian cattle and beef. We all realize, however, that the situation is likely to remain unchanged until the U.S. election is over.
So far, all efforts have been unsuccessful, and there are no indications that the situation will change in the near future. The steps taken to increase slaughter capacity and to develop new export markets are also welcome, but the basic issue has not been settled. Recently the Fédération des producteurs de bovins du Québec, the Union des producteurs agricoles and the Fédération des producteurs de lait du Québec issued a press release—on September 10 to be precise—in which they stated that the announced assistance was inadequate and did not in any way meet the requirements of the beef and dairy producers.
The two federations and the UPA estimate the need in Quebec at over $141 million, while the transition support measures will total only $15 to $20 million. As I said, the minister was there for the first part of the debate, and I would also have liked him to have been with me in Chesterville a few weeks ago when I had supper with a beef producer. He would have understood that producers are on the verge of financial ruin because of this continuing crisis. He would have been asked by someone from the agricultural community whether his program was really tailored to the particularities of Quebec and the actual needs of producers. I made a promise to the farmer that I would pass on his message, which is why I am here before you this evening for this take-note debate.
A number of my Bloc Quebecois colleagues have, moreover, raised another glaring problem with the federal industry assistance plan, and rightly so: it totally ignores any regionalization of hygiene practices. The mad cow crisis ought never to have affected Quebec producers, who have been subject to more stringent rules than the Canadian ones for a long time. Not only the Bloc Quebecois but the entire industry is calling upon the federal government to recognize this other particularity of Quebec and to enter into discussions with Quebec in order to regionalize the food inspection system, dividing Canada into several regions.
That would make it possible for Quebec producers to be spared in a similar crisis in the future. Why should Quebec's producers be penalized because of one case of mad cow discovered 5,000 km from them, when Quebec has established a system that makes it possible to trace the animal from birth to death? We also banned animal meal four years before Ottawa did.
The former Minister of Agriculture and Agri-Food maintained that it was impossible to impose territorial measures within a single country. I hope his successor will be more sensitive to the Quebec context, but unfortunately I have my doubts, based on this government's record.
Canada has , in fact, applied regionalization, less than a year ago in the case of the American chickens with Newcastle disease. Various American states were affected by this contagious viral disease that primarily attacks poultry. The Canadian Food Inspection Agency imposed restrictions only on the four states affected, California, Nevada, Arizona and Texas.
If such regionalization of public health measures had been in place, Quebec's producers would not have been suffering for over a year and a half. They would have been spared. The idea is not to have provinces confronting each other. The same thing would have happened if the case had been found somewhere other than Alberta.
It is obvious to me that if Quebec had been sovereign and in control of its borders and public health policies, it would not be subject to the American embargo today. In the meantime, we must continue to put pressure on the federal government to grant sufficient assistance to compensate for the drop in cattle prices.
Contrary to what the Parliamentary Secretary to the Minister of Agriculture and Agri-Food said earlier this evening, we are not asking for a privilege. Quebec's producers are not asking for any privileges. They are asking for an assistance program that takes into account Quebec's cull cow problem, which is not found elsewhere. It is not complicated; there is no privilege involved; there is only justice.
:
Mr. Chair, the topic that we are dealing with tonight is an extremely emotional subject and for that reason from time to time partisan comments are made. I know from our side the reason is because we know our cattle industry is facing an extremely serious problem.
The government talks about what it has done, the programs it has announced, and the promises it has made. What we are interested in are the results of what the government has done. What has the government done to date that has actually made things better for our cow calf farmers right across the country, the dairy industry, the elk industry, the bison industry, and all the industries that have been hurt by what has happened here?
Before 2003 the beef industry was as close to a free market industry as could be found. The cattlemen did not depend on government for much. They developed the markets, produced their livestock and marketed it pretty much on their own. Things were good in the industry for the last 20 years. Most of the time it was a good industry.
Before I get too far along here, I want to say that I will be splitting my time with the member for Wetaskiwin.
Then we had one case of BSE found in our herds. What happened? The result was the closing of the border. Was that right? That was wrong. The Americans were absolutely wrong in what they did to our industry. There is no doubt about that. American protectionism hurts us and it hurts us unfairly. It hurts our cattle industry unfairly. What the Americans did was wrong and let there be no doubt about that.
The problem of course was exacerbated by comments made by members of the government when it came to dealing with our closest trading partner, the United States. Comments they made hurt the relationship and tarnished the relationship so badly that when it came time for us to be negotiating with the Americans on this issue, they simply were not ready to listen.
I do blame the government for that. That has made this a very difficult issue to deal with. That has to change because those comments continue. As long as they do, we are not going to get results.
The parliamentary secretary today said that the Liberal government has worked hard on opening the U.S. border. What have the results been? In the past several months nothing has happened. Working hard does not solve the problem. It simply does not. There have to be results.
The parliamentary secretary talked about all the money the government has promised to the cattle industry through various programs. The fact is that money has not found its way to cattlemen, the primary producers. Much of it, in the first ill thought out program, went to the packers instead of going to cattlemen. That simply did not solve the problem.
We have heard a lot of promises for a lot of money since then. How much of it has actually gone to help our cattlemen? I would suggest that it is very little to date. The results are quite different from what the government says it is doing and that is very unfortunate.
The set aside program in the early stages is the one thing that really seems to have some good potential. We will see how long it works. We will see if the government is ready to adjust that program should adjustment be necessary along the way because that is going to be very important if this program starts to fail a little bit as we move along.
There are two issues which were dealt with, one quite a bit and one very little. The first is interprovincial trade in livestock. I have heard very little about this. In fact, the government has done almost nothing on interprovincial trade since it passed the agreement on internal trade back in 1996. As a result, we can have meat inspected in each province by capable inspectors and that meat cannot be moved across the border. That is killing our small plants that have a great opportunity to expand. They would expand if the government could find a way to move that meat across the border.
The second of course is more important than any other issue and it deals with increasing the capacity in packers and in processors. The government has simply not dealt effectively with this issue. The government's promise of $68 million is roughly $38 million.
Let us look at results again. How many packing plants are going to go on stream as a result of this program? There have been none to date and I would suggest that there will be none in the near future. That program must be modified.
I would welcome comments from members opposite and members of the government in their questions and comments. I would like to hear what they are going to do to make that program work, the program that will assist our producers in establishing new packing plants and new processing plants in our country.
:
Mr. Chair, let me first congratulate you on your position as Deputy Speaker.
I am sure there is nothing I can say here tonight that has not already been said, but I will not make any apologies for that because a lot of what has been said needs to be said over and over again.
One of the things I noticed in the debate in the last few minutes is the talk about the need for increased slaughter capacity and I heartily agree with that. We have a large herd of cattle in Canada and of course that does not just mean beef cattle. We have a lot of dairy cattle that have to go to slaughter once the dairy cow's productive life is finished. The only possible solution is to slaughter that animal and turn it into beef. We have the beef industry, the dairy industry, all of the cervids, the bison, the goats, and the sheep industry in Canada all affected by the border closure.
Just a mile up the road from where I live I have neighbours whose great-great grandparents immigrated to Canada. They are fifth generation farmers. The farmer, his son and their families are all employed off the farm in order to make ends meet. That is a ridiculous situation, particularly for people who have been in the industry for five generations.
When we talk about farmers going broke, it is not like a shoe store or a grocery store going broke. Oftentimes the grocer or the shoe clerk does not even own the building. They might own the business, but they do not own the building necessarily. They have a rented building. When they go broke, they lose their business and they have an opportunity to recoup, refinance and start up another business.
When farmers go broke, and we all know this, they not only lose all of the equity that they have built up in their land, the machinery and their livestock, but they lose their home and their business. It is a package deal. Agriculture is unique in that way. People say we should never take our work home with us at night. In agriculture we have no choice. When we get up in the morning, put our boots on and step out, we are at work, so we take our work home with us at night.
These people are desperate. These people are at the end of their rope, so to speak. We believe the programs, although I am sure they were well-meaning, were inadequate. As has been pointed out, a lot of the money wound up in the packer's pockets and now the people across the way are saying that they have to investigate these excessive profits that the plants make. I can tell the House where the excessive profits came from. They came from the government chequebook.
We need to search out more markets. The member for Huron--Bruce, in questioning one of my colleagues, wondered why the government should hunt up markets for these agricultural producers. The agricultural producers should be more innovative. They should be more aggressive. They should go out and hunt up more markets. They have hunted up the markets. They have been shipping cattle all over the world. Now that the borders are closed they cannot. They would be smuggling if they shipped these cattle anywhere else in the world.
I would like to remind members on the opposite side that it was not very long ago that an ex-Prime Minister of Canada led a trade delegation to China. He led a delegation, I believe, to Russia. He led trade delegations all over the world under the guise of securing new markets for Canadian products. Let me tell the members opposite, agricultural products, beef, bison, elk and all those products are Canadian products.
These producers are not saying to the government that they are hopeless, helpless people who need the government's help. That is not what they are saying. They are saying the government has hunted up markets for other sectors of Canadian society, manufacturing and so forth, so it should hunt up some markets for them. While the government is at it, why does it not tackle this, like it is a North American problem, with our best trading partner, as has already been pointed out, the group of people we would look to, to defend us, should we be set upon by some rogue nation. Those are the people that we would look to, to help defend us, and we would in turn, I am sure, help them.
This has to be approached as a North American problem with a North American solution. Let us get down to Washington with an all party delegation and make sure that those people are aware of what the problem is.
Canadian cattle producers are asking for a resumption in the U.S.-Canada cross-border trading, they are asking for new international markets to be found, and they are asking for more slaughter capacity. More slaughter capacity is being proposed in my riding, but the hoops that the Canadian Food Inspection Agency is making people jump through are going to put the production of this plant about two years away from right now. In that length of time, the problem could resolve itself.
I look forward to questions from the opposition.
:
Mr. Chair, I am pleased to have the opportunity to speak in the House on such an important issue. Without a doubt, BSE has affected every Canadian in one way or another.
Certainly once Canadians found out about a cow testing positive for BSE the public sought assurances that their food supply was still safe. It was, and the government has taken steps to make sure it stays that way. The Canadian Food Inspection Agency, the agency responsible for food safety in Canada, has been implementing BSE safeguards since 1989, well before the disease emerged in this part of the world. These proactive measures detected BSE and kept it out of our food supply.
Members may recall that after the infected animal was found the agency took immediate steps to quarantine locations and conduct detailed feed trace-backs and trace-forward investigations. No additional animals were found to be infected. This was very encouraging news. It told us that the investment we made in BSE safeguards over the years had worked as designed to protect Canadian food safety and animal health.
Last December, the CFIA worked very closely with its American counterpart to identify the origin of the cow in Washington State that was found to be infected. Again, the agency was quick and was able to trace the cow back to a farm in Alberta.
This discovery of the second case did not mean that the disease was spreading. It served to confirm our suspicions that there was probably a previously undetected low presence of BSE in North America.
After detecting this first case, the government's first priority was to protect public health. Within weeks, the Canadian Food Inspection Agency and Health Canada had developed a nationwide program to require that specified risk material, SRM, be removed from all animals slaughtered in Canada. SRMs are tissues that in infected cattle have the potential to harbour BSE agent. This action keeps BSE from entering our food supply and is internationally recognized as the most effective measure that can be taken to protect public health from BSE.
Once food safety was protected, the government focused its attention on animal health safeguards. We increased our surveillance activities, because if there are indeed animals in Canada with BSE, we want to find them. We expanded our capacity for doing more BSE tests. We are also enhancing measures for the national database that identifies cattle through ear tags.
In terms of eradicating BSE, the most important step Canada can take is to enhance animal feed controls. Feed controls are internationally recognized as critical measures to eliminate BSE from the animal population. That is why on July 9, 2004, the government announced that it intends to require the removal of bovine SRM from the animal feed chain.
Doing so will add an additional level of security to Canada's current feed ban, which has prohibited feeding cattle with ruminant materials such as SRM since 1997. All the evidence indicates that existing feed controls continue to limit BSE spread, but we recognize that measures are necessary to prevent human error, which could result in inadvertent exposure of cattle to prohibited materials. Doing so will diminish the effect of potential cross-contamination of ruminant animal feeds that could occur as feed is produced and distributed, as well as any inappropriate on-farm use.
Based on risk analyses, taking this action will more quickly eliminate the incidence of BSE in North America by preventing future disease development. Enhancing our feed ban aligns with the recommendation of an international panel of experts that reviewed our BSE situation last July. The agency, together with Agriculture and Agri-Food Canada and Health Canada, has consulted with the feed industry, provincial and territorial representatives and counterparts from the Food and Drug Administration.
The Canadian Food Inspection Agency is moving ahead as quickly as possible with these changes, but this is not a minor adjustment that can be implemented overnight. The regulatory proposal must be practical and verifiable. Removal of SRMs from feed will impact numerous stakeholders and jurisdictions. A certain amount of time is needed to properly develop this complex measure.
When BSE emerged in Canada, it brought potential new threats to human and animal health. Today the food supply remains safe and measures are in place to keep Canadian cattle healthy. Nonetheless, we recognize that even the best systems can be strengthened and, based on our commitment to continuous improvement and enhancement, these are on the way. Canadians can be confident that the elimination of BSE remains key to government priorities.
:
Mr. Chair, I will be splitting my time with the member for Brandon—Souris.
We have spent the last couple of days talking about BSE and all we have heard is one excuse after another, and we still have no answers. The fact remains that after all this talk our farmers are still hurting and something needs to be done about it.
On behalf of the cattle farmers with whom I have spoken, I need to express the lack of public confidence in the ability of the government to handle this BSE crisis. The tremendous cynicism out there is completely understandable and the facts, unfortunately, justify the loss of faith in the government's competence.
Billions of dollars and thousands of jobs have been lost since May 20, 2003, when BSE was found in one Alberta cow and the U.S. closed its border to all beef products and live cattle as a result. Thirty other countries followed suit.
Two facts bear repeating because they show how mishandled and neglected this issue has been by the Liberal government. Fact number one: there was only one cow. Fact number two: this happened back in May 2003. Here we are 17 months later and, while some cuts of beef are now being allowed to flow south, live cattle is still being banned.
Can anyone sitting on the government benches tell me with a straight face that they think the government's efforts to get our border reopened for exports of Canadian beef have been that effective?
A few weeks ago when I was at the Lincoln county fair in my hometown of Beamsville, a cattle farmer told me bluntly that too much time without any progress has passed for him and many others. He is getting out of the cattle business because the government has done absolutely nothing to deal with the terrible crisis.
From the outset the government had no real plan and, in its arrogance, it ignored the plan that the Conservative Party presented. This side of the House proposed strategies to increase domestic slaughter capacity, to diversify our export markets and to better manage the market capacity through methods such as using more funding to keep surplus cattle fed through the fall. Major industry groups echoed the plans put forward by our party.
What action did our beef and cattle industry get from the government? Seasons changed but nothing else did. The crisis has grown and, as the government trumpeted hollow words about reopening the borders, the fact remains that just because one wants it to happen does not mean it will happen. We need a realistic plan, and please, all partisanship aside, our party welcomes the Liberals to talk to our MPs on the BSE advisory panel so that we can implement this plan to lead to concrete results.
For the members on the opposite side, the so-called plan announced by the Minister of Agriculture on September 10 is too little, too late. This $488 million plan is less than half of what the Conservative Party determined was needed last February. The need has grown since that time because again the government did nothing to help with this industry. The dairy farmers of Canada say that there is nothing for them in the proposal. The money allocated to increase slaughter capacity is barely enough to support one plant, let alone stimulate the entire industry.
Where is the funding for those with practical plans to increase slaughter capacity? Time is running out to get the new plan initiatives started for this fall.
Perhaps the one component of the Liberals' BSE plan that has contributed the most to their lack of credibility was pretending that there was actually new money available under the transitional industrial support program to sustain the industry. The Minister of Agriculture knew the deadline for applications for payments was July 31, 2004, and applications are no longer being accepted. Reannouncing existing programs does nothing to help the struggling cattle industry. What was done was temporarily giving people false hope.
The final insult to producers who wanted to apply for some of the limited cash made available was that a month after the program announcement was made, there were no application forms available. It is fairly obvious that this was not so much a plan to help cattle producers as it was a communication strategy to give the appearance of government action.
If the Minister of Agriculture wants to focus on a communications plan, we would welcome some practical efforts on his part to effectively communicate to the U.S. government that science shows our beef is safe. This is a political problem that has been mismanaged for 17 months.
Our cattle industry cannot afford any further delays. Again I ask the members on the government side to listen and to cooperate with our party in resolving the BSE crisis.
If the government continues on the path it has been on for the last year and a half, we will be having the same debate again next spring and the livelihood of thousands of additional cattle producers will have disappeared forever. Do not let arrogance get in the way of doing what is right.
:
Mr. Chair, I certainly want to begin by thanking the people of Brandon—Souris for the encouragement, support and trust that they have put in me in representing them in Parliament.
I have had the opportunity to sit through several debates on the BSE crisis. It is something that has taken place in provincial legislatures for the past 17 years. In fact, many of the provincial legislatures have passed unanimous agreements supported by all members in support of the BSE crisis, in support of finding a resolution and in support of the producers.
As we have heard over the last few hours and on a previous evening, the issues are similar across the country. It does not matter what part of the country, the issues and concerns are the same and, in a lot of cases, the solutions are the same.
We have all heard people talk about the increased packing plant, the increased slaughter capabilities. We have heard about getting money into the hands of the producers at this point in time when they so desperately need it. We have heard the stories of how our producers are suffering, and it does not, as we know, just impact the cattle industry. It impacts several industries in the livestock industry.
We have to address this but the challenge for the government and where it has failed is its failure to act. I have been told that of the people who get their income tax done in Canada less than 60% of them require accountants, and yet I am told that of all the agriculture producers applying for any of the current government programs, about 98% of them need accountants to do it for them. That should send a clear message to this government right away that the programs are too cumbersome, too awkward, quite often the paperwork does not follow the announcements and people are left out in the cold wondering how to apply and how to access the programs.
We have heard it from all of the members on this side. I suspect the member opposite hears it from his colleagues when they are in private conversations. However when they stand in the House with the bravado and arrogance that they display, it only indicates to the producers in the rest of Canada that the government does not care about the issue.
I have a couple of solutions to put forward and I would hope that the member opposite would pay attention and perhaps present them. Throughout the entire campaign my issue with the current government was its failure to acknowledge that agriculture is an industry in Canada that needs the support of the government. The Liberals have neglected it and have ignored it. They ran on the fact that after 17 months the border still might open and, after listening to the comments and the rhetoric tonight, I still believe their only standing position is that the border may open some time in the future and all our problems will disappear. That is a complete neglect of its responsibility as a government.
In my mind, a government should identify the problem. We all have. We understand the BSE crisis and the impact that it has had on people. It is imperative that the government present options to the public to deal with the issue. That would be a plan and one which we could debate and improve. It would also give us the opportunity to present something that would work for all.
Finally, it is imperative that the government move forward and implement the plan, not just keep making announcements over and over, creating a frustration level with our producers that is far beyond what this member understands and would even be prepared to acknowledge. We have a government that after 17 months is still saying to the public that it is working on a solution and that it is working together with people to present a plan.
We cannot run an industry, a business or a government that way and it cannot be run on the hope that the border will open in the future.
I opened my comments by suggesting that the people of Brandon—Souris had put a lot of trust in me to be their representative, to speak on their behalf. What they are telling me right now and what they want to tell the government is to cut the crap, move forward, implement a plan and help resolve this issue. They do not want the government to go out and constantly promise the people of Canada that the border may open tomorrow.
Let us acknowledge that the border has not opened in the past 18 months. Let us have a plan that will resolve the issue. It will be a made in Canada solution. There is the option for a minority government to work with all parties to bring forward a resolution. I would encourage the government to do that.
:
Mr. Chair, on my first opportunity to speak in the House of Commons, I would like to sincerely thank the voters of Carleton—Mississippi Mills for electing me as their member of Parliament.
My riding faces two large crises, unemployed technology workers and BSE. I find it appropriate that I have the chance to speak tonight on one of these crises.
BSE is a national issue. I point out that Ontario is home to 8.3% of the national herd and makes up 21.2% of all fed cattle production in the country. The beef industry is significant to the Ontario economy. Prior to BSE, beef was Ontario's second largest commodity in terms of annual farm gate receipts, with an annual value of $1.2 billion.
Beef exports from Ontario to the U.S.A. in 2002 were valued at $354 million in live cattle and an additional $292 million in beef product. As of June 2004, losses to Ontario's 21,000 beef farmers has reached more than $200 million. Ontario's 4,200 sheep producers have lost about $4.3 million in export sales, while Ontario's 5,400 dairy farmers estimate their loss at a minimum of $50 million.
I mentioned earlier that Ontario beef makes up 8.3% of the national herd, which translates to roughly 415,000 head of cattle. In a normal year of trade, my riding of Carleton—Mississippi Mills contributes approximately 35,000.
Rough calculations estimate that the BSE crisis has cost agribusiness in my riding somewhere in the neighbourhood of $10 million since the crisis began. If this were not bad enough, farmers in Ontario, particularly beef farmers, will soon face a double whammy. Adding to their troubles is the cost of complying with the Ontario nutrient management act, effective July 1, 2005.
The rural communities in Carleton—Mississippi Mills have grown tired of phantom money, bad policy and waiting for the U.S. border to be opened. They have started taking matters into their own hands with what they call the rural revolution.
The Lanark Landowners Association is a grassroots group that sees government policy, both federal and provincial, as intrusive, corrupt and discriminating against the multigenerational family farm.
To raise awareness of the high cost of beef in the supermarket, and subsequent profit is not making its way to producers, the LLA is staging “Here's our Beef” food strikes, where it sells beef directly to the consumers for a price reflective of the true cost of beef, $1.99 a pound.
I applaud the efforts of the LLA for raising awareness about the inflated price of beef, but the elected officials in the House, namely the Liberal government, need to do more if they do not want to see the ruination of the beef industry in this country.
Based on conversations with producers in my riding over the past several months, I have a few recommendations on what could be done to help the industry right now.
I understand the new Liberal program calls for increased slaughter capacity. I encourage the government to include in its plan a strategy for dealing with the need for increased slaughter capacity in Ontario beyond the current limited monopoly.
While the government deals with the problem of increasing slaughter capacity by building new facilities, it should be concerned about the ownership of current facilities. For example, American owned Cargill recently purchased Caravelle Foods, the provider of beef for the McDonald's chain in Canada. There are also suspicions that Levinoff Meat Products will also be on the block to an American buyer.
As it stands, the overall Canadian beef industry is threatened by the possibility of large monopolies dominating our market.
To quote the Dairy Farmers of Canada, "Tthousands of farm families saw the price that they normally received for older animals destined for the meat market plummet by 70%". While the government's efforts to assist producers are encouraged, the latest package does not address the economic situation confronting dairy producers.
Not only are cull cows fetching a mere fraction of their worth, they are now depressing the beef market in general. To compound the problem, rather than accepting pennies for these animals, farmers are holding back cull cows that would normally sell, creating a glut in the market. These animals must be removed from the system.
Why does the government not offer a plan to purchase excess animals for use at federal institutions such as penitentiaries, government cafeterias and the Canadian Forces instead of allowing them to import beef from Uruguay, the United States and Brazil?
Many in the beef industry believe that the U.S. border will not open to Canadian beef until the Japanese lift their ban on U.S. beef. As one might suspect, President Bush is working hard to get the Japanese border opened before November.
What is Canada doing to facilitate a market for Canadian beef with Japan? We know that Japan and South Korea have already indicated that they will accept Canadian beef exports, provided all animals are screened for BSE. Why then is the government not considering this option seriously? There are a number of financially feasible options for private BSE testing and as science advances, these costs should be expected to lessen. In fact, with funding from the B.C. cancer agency and Genome Canada, the U.S. department of agriculture is mapping bovine DNA and is bringing us that much closer to understanding mad cow disease as well as accurate and inexpensive screening.
By testing all animals we would be proving to the world what we already know, that Canadian beef is the safest in the world, and at the same time building ourselves an alternative market for our beef. Then should the U.S. border finally open, we would be able to sell our beef at a premium.
Should this beef crisis continue in the same vein, we are at a risk of losing family run beef operations across the country. I encourage the government to take note of the importance of this industry to the Canadian economy and take all the necessary actions that will assist producers to overcome this crisis.
:
Mr. Chair, I have listened to a fair amount of the debate this evening. A couple of comments have stood out among all the comments that have been made.
The Parliamentary Secretary to the Minister of Agriculture and Agri-Food stated that the objective of the government was to keep far farmers in business. I certainly applaud the parliamentary secretary's comments and I think he actually believes them. However, I live in rural Nova Scotia. I can drive by farm after farm that is no longer in production. They have given up. They have moved on to another means of making a livelihood. They have abandoned their farms.
Over the weekend I was at home putting the finishing touches on a new barn. One might ask why I would build a new barn today, and I ask myself that question. A friend of mine came by because he pastures his heifers there. I know the parliamentary secretary is no stranger to the barnyard. He said that he was fifth generation farmer and he saw no way that he could stay in the industry. He is an engineer and he has always supported his farm by off farm income. He will no longer stay in the beef industry.
Our farms in Nova Scotia are much smaller and more modest in scale than they are in western Canada. It does not matter if a farmer has 50 head of cattle, of 100 head of cattle or 200 head of cattle, they are just as important as the farm that has 1,000 or 10,000. The same element of scale is involved.
We have a situation that has arisen in the country that is hitting agriculture like no other situation with which we have ever had to deal. I do not see any answers coming from the government. I have heard a lot of discussion, a lot of rhetoric and a lot of debate tonight that somehow miraculously the border will open. Quite frankly, I would like to see how and why.
We have done nothing in our association with our American allies and colleagues to open the border. The government has been adversarial, in most degrees, when dealing with the Americans. There is nothing that would tell us, looking at the Canadian Food Inspection Agency, the Health Canada regulations and the USDA regulations, that the border will open. If the Americans want to keep it closed, they will keep it closed and they will keep it closed for the mandatory seven years. There are 30 other countries of the world that have also closed their borders to Canadian beef.
This is not a situation. This is a crisis.There are 16.8 million cattle in Canada. We have nearly one million head of sheep. We have elk, goats and deer. All these animals need to be marketed. We have cull cows coming from the dairy industry. We have dairy heifers that we cannot ship across the border. This is just compounding exponentially every day as this situation goes on.
We cannot sit here and talk about what might happen when the border opens. I want to know what we have done. I have heard the discussion about what we have done about Japan. Between Japan and Korea, a million tonnes of beef is consumed in those two countries alone.
What has the government done to look at a mandatory testing regime for overseas exports, which the government would pay, not the farmers? What about the $8 billion in surplus that the government suddenly miraculously found on its books? How much of that will get to the farm gate? I suspect very little, if any. The idea that somehow we might find $400 million on September 10 to put into a program that might be delved out over the next six months, to a year, to eighteen months is great. That is wonderful for the person who is grasping at straws. A lot of farmers have already given up and have drowned.
What are we going to do to ensure that at least the rudiments of the industry, the basis of our industry, is still there two years down the road when we are still having this discussion about the American border not being open and when we still have done nothing about accessing the huge Asian market and other markets around the world?
:
Mr. Chair, in the months leading up to the opening of this Parliament, I spent quite a bit of time discussing this problem with the people who were dealing with it day by day. I spoke to feedlot operators. I spoke to cow calf operators. I spoke to grain farmers who had just a few head of cattle as a means of diversifying. They are all looking for leadership and they are all desperately looking for assistance. Most important, they are running out of time.
I am not sure that the government and its agriculture minister really understand what is going on in this industry. I have met with producers in my riding, as I am sure many of my colleagues have, whose families have been on the land for several generations. Many farms in Saskatchewan are celebrating their centenary year awards, and that is 100 years of operating a family farm.
Through some of the hardest times in Canadian history, droughts, grasshoppers, crashes in prices, the farmers in my riding have toughed it out. Now they are facing a slow death as a product that they rely on selling to pay their bills and feed their families is not moving. Their credit is maxed out. They have nowhere else to turn.
This agriculture minister came to Regina just a few weeks ago. He and the finance minister trumpeted a new program which they claimed would help those afflicted by this disaster. To date not a single dollar has been paid out to producers. Not a single investment has been made in building a slaughter plant. The forms still are not even printed.
Had the minister actually consulted with individual producers, with family farmers or the stakeholders in the different facets of this industry, he would have heard with near unanimity that aid packages should never be administered through the CAIS program. The CAIS program is top heavy, with millions of dollars eaten up in administration costs.
My hon. colleagues have all spent considerable time in this debate outlining the disparities in the program, with opening and closing inventories, allowable expenses, and the problems in even accessing the funds.
In my short time as the member for Regina—Qu'Appelle, my office has received dozens of calls from constituents seeking help with their CAIS applications. Most producers need to seek paid help from accountants to fill out their forms. Many producers do not qualify for CAIS, or they are not able to participate because the onerous burden of cash on deposits.
In the minister's aid package he announced some money for new slaughtering capacity. Where is it? Has a single dime been handed out? They called part of it new money. An advance on existing funds is not new money. When the government knows that money will not be accessible because of deadlines, it cannot be counted as new money.
There is a huge disparity between the dollar figures from the announcements and the from the dollar amounts actually received from producers.
The minister and the department should have actually developed the method to deliver before the announcement was made. Producers need outlets for their cattle and they needed it last year. They needed them even more this spring and now it is at the breaking point.
For all the money that went out last year, how much more beneficial would it have been if the government had shown some leadership and arranged for new slaughterhouses to have been built? That would have given a huge return on its investment, as cattle ranchers would have more options in where they sold their cows and with more cows being processed, the prices would have reacted accordingly.
We have heard about the rancher's choice efforts. Where is the government's leadership in getting innovation like that off the ground? The minister needs to develop a system where aid packages actually get to the farm gate. It is a phrase heard over and over, yet we find ourselves repeating it because no action has been taken. We have already seen government programs disburse money and none of it actually ends up in the hands of the producers. It is this government's responsibility to take ownership for that.
There is also much agreement on the fact that BSE is no longer a scientific or food safety issue. This is a political issue from protectionist movements in the United States. Where is the government's long-term plan for dealing with this? We need an agreement with the U.S. We need to be able to sit down with the Americans and we need to have the sort of relations between our two countries that facilitates dialogue, not Liberal MPs hurling personal insults.
We need to work within existing trade deals with the U.S. to ensure that when trade conflicts arise, there is an independent and mutually recognized way to work through it. We cannot have protectionist politicians being allowed to shut down sectors of our economy every time something pops up to disrupt it.
We have arrived at this dismal point because the government has placed this issue on the back burner. Having this debate where the minister defends his position, where government members keep repeating the myth that the government has taken action, that the farmers have received assistance is becoming futile.
We need the government to at least recognize the weakness of its many programs, stop throwing good money after bad and get the money where it needs to go.
:
Mr. Chair, I am splitting my time with the member for Okanagan—Coquihalla.
I relish the opportunity to speak on such an occasion although in a certain sense I wish I did not have to, but because we are in this crisis in the country, I appreciate the opportunity to speak on behalf of my constituents in the Saskatoon—Wanuskewin riding of Saskatchewan. I particularly appreciate speaking on behalf of those many rural Canadians in my riding who have been directly affected by the very difficult circumstances surrounding BSE or, as we also know it, the mad cow controversy.
I especially appreciate the fact that our Conservative Party requested this special take note debate on BSE, the very first debate in the new Parliament. That reflects the importance to the Conservative Party of agriculture and the whole crisis we are in, for which we have solutions. We have offered them before, in fact in February of this year, in terms of how to address this whole issue.
As we know, the last estimate of the cost of the BSE crisis to the Canadian beef industry and rural economies has been put at more than $6 billion. More than 4,200 jobs related to the beef industry have been lost, according to the government's very own figures. These are large numbers, but each dollar and each job loss represents a real person, a family and the livelihood of a good many people in my riding of Saskatoon—Wanuskewin and throughout the country. Lives have been turned upside down by this crisis we face.
Just last week, one of our big city papers, far removed from some of the rural areas where the crisis is, picked up on it and reported how one farmer lamented that the banks were foreclosing or coming at him, “closing in on him”, as he said. The very day before BSE hit, his cattle were worth nearly $1,500 apiece, he said. Since then, he has had to sell some for as little as $350 a head, not even covering the cost of his feed. His equity loss, he estimates, is in the range of $200,000 to $250,000. Farmers across the country are losing their farms, their homes and their livelihoods.
Instead of quickly developing a coherent, thorough and responsible solution for helping farmers through this difficult time, the Liberals used empty rhetoric. One example of that was given by the leader of the Conservative Party last week when he talked about how the Liberals, in full election mode, promised farmers that the U.S. borders would open up by the end of this past summer. Really, they had no justification for making that kind of claim. There was no movement on the ground. There was nothing being done. It was nothing more than cynical electioneering on the backs of Canadian farmers.
Back in February of this year, our Conservative Party proposed a comprehensive agricultural strategy that would have enabled a flexible and rapid response to the BSE crisis, which was upon us even then.
Our plan included topping up the 2002 Canadian farm income program from 60% to 70% payouts to full 100% coverage. It also included a mature livestock rationalization program. Our Conservative program included replenishment of Canadian agriculture income support programs for BSE-affected operations. The Conservative program of February of this year also included the establishment of testing regimes for all non-North American markets as well as working toward integrated North American rules and processes.
The latest measures announced by the government on September 10 are long overdue, but they are woefully inadequate and administratively bungled. The Liberal plan is only half of what our party proposed.
The essential component for a long term solution, as other members have pointed out, is for Canada to increase its own slaughter capacity. The investors and the developers are ready to go. Now they need to find out what federal funds are available to them and how these funds can be accessed so construction can start.
As well, a lot of that long term solution obviously involves the re-opening of international borders and the advocates and ambassadors for our beef industry out there in the borders beyond, of the Americas and elsewhere as well. The federal government needs to be aggressive in respect to this.
Canada also probably needs to do a chapter 20 challenge. We have had individual producers doing a NAFTA chapter 11 challenge. The government needs to step up to the plate now as well.
I could go on at length to tell the House about some of the flaws that are popping up now. We are seeing it in the CAIS program, another badly managed program, where constituents are now calling in and indicating what the problems are. We need to change that. We need to fix it for the good of our producers and the farm folk all across our country, and in my riding in particular, where I am beginning to become aware of the flaws and the problems of that program.
The Conservative Party will not accept the status quo but will demand that the Liberal government set up agricultural policies that work, policies that are responsive to the real needs of farmers without violating the independence and the dignity of these valuable, hard-working producers across our country.
:
Mr. Chair, a lot of people have dates in their minds that are important to them. It might be a birthday, an anniversary or the remembrance of some momentous occasion. I would suggest that for years to come the date of May 20, 2003, is going to be indelibly planted in the minds of farm families and families who have had to go out of agriculture because of what happened on that date: one cow being diagnosed with BSE.
One cow on May 20 and the market doors slammed shut and have not been fully reopened. That will be a date that agriculture people are going to remember for years and years to come. Every region of the country has been hit. In virtually every province there are people who have been affected. In my constituency of Okanagan--Coquihalla are some of the largest ranches in North America. As a matter of fact, the largest ranch in North America is in my constituency in the Douglas Lake area.
I sympathize when we read reports, as we have over the years, about when certain regions are hit with a calamity of some kind and 200 or 400 jobs are lost. Oftentimes there is an immediate response from the government. It falls over itself rushing to fix the problem.
This particular problem, estimated now at $6 billion in losses to the rural communities, with over 4,000 jobs lost, this, in any other estimation in any other industry, would be a national disaster. One would think the government would be galvanized on this, but it has not been.
There was a false promise made during the election that the government would have this thing wrapped up by the end of the summer. It simply has not happened and the government is literally getting away with it.
The irony for those involved, especially in the cattle industry, is that for decades they have been resilient. They have not needed well intended and appropriate farm programs. They have gone through the highs and the lows and the cycle of the commodity markets and the feed markets and other things that constantly assail this particular industry. They have gone through those times and they have toughed it out largely on their own without government programs. Now when they get hit with disaster, where is the government? It is not there for them.
My colleagues have very clearly articulated in specific forms some of the things that could and should be done to relieve these people who are being hit by this disaster. It basically comes down to getting the help to the farm gate, but what do we hear about? We hear about forms that are so complex that farmers cannot fill them out, about farmers having to hire accountants to try to catalogue the disaster they are going through, and about a government that makes idle promises and programs that are falling far short of what needs to be done to literally save the agriculture industry in our country.
One aspect that needs to be addressed, which my colleagues have mentioned, is this whole aspect of international and foreign relations. Relationships between countries are simply that; they are simply relationships between people. This government and this Prime Minister have allowed some of the worst poisoning of the well of international relations that we have seen in modern history. Literally, MPs have been allowed to hurl the most grotesque insults across the border to a country whose men and women are battling on foreign fields.
That affects the negotiations.
Yes, this must be science based, and yes, it must be agriculturally based, but these types of problems can be resolved if there is goodwill between the two people. The goodwill has been diminished because of this cavalier attitude that the Prime Minister has allowed to exist. He has MPs who are probably suffering from political Tourette's syndrome with the type of language that they fire across the border in a haphazard way.
One has to think about what happens, then, in the discussion rooms in the administration south of the border when those people who are involved in the industry south of the border are sitting down and looking at this problem. They simply remind their president and their secretary of trade, “These are the people who insult us all the time. These are the people who hammer us when our boys and girls, our sons and daughters, are on foreign fields”. They are able to use the delinquency of this government as a lever to apply pressures that they should not be able to apply. These borders should be open.
The questions I have are these. Number one, why is the Prime Minister in Russia, France and Hungary? I appreciate very much the fact, as we all do, that he took time out to pay his respects to a sailor. But he needs to pay respect to the farm families that are going down in the country. I appreciate the people of Hungary and the government there, but I am not sure what is more important in Hungary than his being here and putting all his efforts into solving this crisis.
I would also like to ask, as my colleagues have asked, why not have the programs in place now? What is in place right now should this disaster strike again? We hope it never does, but is there something in place in terms of emergency preparedness so that we would not have to see this whole ugly movie unfold again?
When are we going to see the right programs? Why is the Prime Minister touring the world when he should be having his focus on this problem? And should this ever happen again--we hope and pray it never will--what has the government learned and what does it have in place to deal with the problem in the future? Help the farmers now and what do we have to protect us in the future?
:
Mr. Chair, with the last three speakers on the other side, there certainly has been a conscious effort to fail to tell the whole story.
The member mentioned the CAIS program. While it was designed to level out the boom and bust years in a normal market situation, this is abnormal. This is disaster. There is no question about that and we admit it.
However, as a result of it being a disaster and going beyond to a certain extent the capabilities of the CAIS program, there have been close to $2 billion put in through various programs and some of that money is yet to be rolled out. I am not going to get into the announcement of September 10. We could go back to the records of tonight's proceedings and see how the government has somewhat changed its approach, to look at other alternatives, recognizing that it may be some time before the border is opened.
What has to be mentioned with regard to Canada's position on BSE is that no country has regained market share in such a short time after a BSE crisis as we have. We have regained 90% of our pre-BSE beef export levels. That is because of the work we have done through our regulatory authorities and the work we have done by going to Washington to open up those markets.
We are now moving 90% of pre-BSE beef export levels based on the recognition of the integrity of the measures and the inspection programs we have in place. That has never happened previously to countries which have had BSE. They have been shut out of the market for much longer times and some have never got back in. That is beef, not live cattle. That is strictly beef and beef products. We do not have the movement of live cattle into the U.S. or dairy heifers and we certainly do need that. We are not satisfied that the market has opened up far enough yet. We are going to continue to work at it.
In terms of the question as to why the Prime Minister is in Russia, France and Hungary, he is doing his job as Prime Minister of Canada. While he is there he has not forgotten about the beef industry. He is there trying to open up markets for our agricultural products in Russia and those other countries as well.
As I said earlier, the Minister of Agriculture and Agri-Food is in Japan, Korea, Hong Kong, and China doing the same thing. He is trying to open up markets for our agricultural industry so that we have less dependence on the market south of the border. They are doing their job.
The Prime Minister has met a number of times with Mr. Bush. President Bush has stated that he would like to see the border opened as soon as possible. I would agree, for whatever that means, because it has not opened up as soon as I would have liked to see it opened.
In terms of a game plan, if there are other instances that happen, that game plan is in place. It is in place through our regulatory authorities. We are now doing quite a number of animal testings. I believe it is 8,000 that we are trying to test this year in terms of BSE, ramping up to 30,000 next year. I will have to double check those numbers, but we have a plan in place to ensure that our livestock products, that our beef products of cattle, sheep and other ruminants are the safest food quality in the world. That is what we intend to maintain. We have the regulatory regime to back it up.
We have announced a number of programs to try to get money into the farmers' pockets, to tide them over. We know that is a difficult situation. As well, I talked earlier about trying to make the market return to normal circumstances.
:
Mr. Chair, it is a great honour for me to stand before you this morning, as it is after midnight here in Ottawa. I would like to take this opportunity to thank the people of Leeds--Grenville for the confidence that they have shown in me.
In my first address to Parliament, it is fitting that I am standing here on the BSE crisis. It is something that has had a major effect on my riding.
Earlier this evening I was in my riding helping some folks because the bank is closing in one of our small communities. It is just another one of the things that is causing the deterioration of the rural way of life in ridings like mine.
We are here this morning to talk about the BSE crisis. It is not some abstract problem for bureaucrats, diplomats or industry commentators. It affects men and women and families, not just in my riding of Leeds--Grenville where it is a large part of the economy, but across Canada.
All of us who represent rural ridings know exactly what I am talking about. Our beef farmers are in real trouble through no fault of their own. What started as a legitimate medical concern has been permitted to evolve into a full-blown industry meltdown by an unprepared, irresponsible Liberal government that thought calling Americans morons was a solution. Planet earth to you, Mr. Prime Minister, it was not the answer.
Beef farmers in my riding, like others, are among the most stoic of all Canadians. They work hard and pay their taxes. They do not complain and they do not look to government to solve all their problems. They are strong, resourceful and resilient people. Now in these dark times, they need our help. Beef farmers in my riding are stretched to the breaking point. They have used most of their resources and this winter may be the end for many.
BSE is a political crisis that requires political action on several fronts. It requires this action if we are to find a solution.
Like myself, others here tonight will raise concerns that are on the minds of beef farmers and the agricultural industry all across the nation. These issues are a part of the problem and their resolution must be part of the solution.
Relief should focus on farmers, not packers. Let me remind the government that we cannot pack what we do not grow. The fact is that the CAIS program is not right for small family farms because the cost of entry is too high and the rewards are too low after a year of depressed prices. CAIS must be restructured to help small family farms.
It is time now for blunt talk with the Americans and the Japanese to remind them that the unjustifiably closed borders for Canadian beef can result in reciprocal actions.
We need to restructure and rebuild the entire industry in light of this crisis so that we have new markets, new domestic slaughter and packing capacity and are never again prey to political protectionism.
These are issues that concern the producers in Leeds--Grenville.
I note and commend the seven solutions offered by the member for Lethbridge during last Thursday's start to this debate. I am attending a regional meeting of cattlemen later this month and I guarantee that the ideas he presented will be discussed.
In order to illustrate the breadth of this problem, I would like to bring to the House the facts of the terrible price that is being paid in my riding as a result of this crisis. Over the past number of weeks I have been talking with farmers involved in and affected by the BSE crisis and other affected businesses. The picture that has been painted has not been pretty.
To put this in a perspective that all Canadians will understand, it is like going to work every day of one's life and several years before retiring, one is told that one must return all the money made and everything that has been put away for retirement just to keep working.
In my riding and in the area that is serviced by the farm industries, this is what has happened since the beginning of the BSE crisis. This is how we have to deal with those who are affected.
A sale barn is closed down. Farmers in Leeds--Grenville and neighbouring Frontenac County now have additional costs in getting their cattle to market, or they have to make additional costly arrangements to have their cattle shipped elsewhere to do so.
Dairy farms that used to sell their steers into the meat market are no longer doing so which is another hit on their income. That ripples through to other businesses.
Older farmers who have been saving for retirement or who should be enjoying their retirement are cashing in their RRSPs to help the younger members of their families keep their farms operating. This is money that they will never recover. Somehow I doubt this is what we intended when the RRSP program was started.
Those farmers who are being forced out of business are selling out at fire sale prices because there is no other option. Equipment dealers are in trouble. Fertilizer and feed dealers are in trouble. Veterinarians have had to cut back on staff and hours. Commodity prices have dropped and the wet weather that we had through most of the summer in our area has led to poor crops. All of these factors lead to a truly frightening trend.
The ability to sustain the family farm is reaching a critical point. Farmers are leaving the business. There are no young farmers to take their place and there are no financial institutions willing to finance them even if there were. Being able to feed ourselves is a matter of national security. If we cannot feed ourselves, we cannot control our future. However, we can do something.
I ask the government to take time out from advising the Russians on democracy or tap dancing on ethics to pay real attention to these real problems and to work with members of the House. We heard the member for Brandon—Souris say that we have to recognize there is a minority government and it is time that all sides of the House worked together to help solve this problem.
Let me offer just a few suggestions that I think could go a long way toward solving this problem. We need to empower our international negotiators to make clear that it is time that science trumped politics. Open the borders or face the consequences. Do not think for a moment that Canada is powerless in all of this. All we require is a government with the political will and the courage to stand up for Canadian beef producers.
We need to aggressively seek new markets for the best beef in the world, Canadian beef. We need to commit resources to redesign the entire beef industry in Canada in light of this experience so we are not caught at the bottom of the production chain again.
In fairness, the original BSE outbreak was not the exclusive responsibility of the government. The half-hearted, ineffective, unimaginative, defeatist response to it by the preceding Liberal government, however, is directly responsible for the continuing crisis in my riding and others from coast to coast.
Let us now with this debate and this Parliament resolve that together we craft a solution. Let us get the applications out there. Let us get the money out through the CAIS program. Let us help expand the slaughter capacity. Let us get it done now. Let us work together to solve this crisis.
:
Mr. Chair, what was just mentioned in the last exchange was the obvious need for a long term solution to get the U.S. borders reopened because of the percentage of live cattle that went there.
As my colleague rightly pointed out, for that to happen we need a government committed to some serious professional relationships with these other countries, and no less the Americans just south of the 49th parallel.
We do not need those rash juvenile outbursts that have been made against the United States by members of the governing party. We need a proactive strategy to promote Canadian beef. I think my colleague would be aware that on that front we are probably short of where we should be.
Last Thursday one of my colleagues made the point that on a trip down to the United States she found the American Congress to be woefully uninformed about the issue. They were not aware. In fact, some Americans who they met thought the border was already open to live cattle.
I would like to know if my colleague feels that at this time it would be well worth the effort of the minority government to be fully engaged in a fairly aggressive lobbying initiative in the U.S. that targets both elected officials and consumer groups, informing U.S. consumers that the high prices they are paying at present for beef and dairy products, and also the loss of jobs in their country, is due to the closing of some of those slaughter facilities which is a direct results of politics and has nothing do with food safety at all.
Does my colleague feel that a campaign is needed to make the Americans aware of what is happening as many of them are not at present? It is not a matter of just bringing out the heavy guns and saying that if they do not do it we will pull back on this or that resource. We have a fair bit of support down there but it is absolutely crucial that we leverage and broaden that support for the Canadian beef industry. They need to be aware and kept up to speed and abreast of the developments and the fact that we do not have any opening yet, which is why they are paying the high prices for beef, dairy products and on it goes.
Does my hon. colleague agree with that?
:
Mr. Chair, I will be sharing my time with the member for Fundy Royal.
The agriculture industry is on a downward spiral economically. In recent years all farmers, western and eastern, have been plagued by a number of obstacles, including drought, grasshoppers, frost, subsidy wars, trade disputes and the ongoing BSE border closure debacle. Farmers are losing their livelihood. The border closure has not only affected the beef producers in this country but it has affected many other sectors in agriculture.
I had the occasion to speak with Mr. Gordon Schroeder, member of the Saskatchewan Sheep Development Board, regarding the effects of the BSE border closure and its effect on the sheep industry, including a 60% drop in slaughter lamb prices and a 61% drop in ewe shop sales and a loss of major feedlot capacity.
He wants me to bring to the attention of the House that the inability to move animals across the border is a real concern for Canadian sheep producers. This problem is compounded by the fact that the industry does not have access to adequate federal slaughter capacity dedicated to killing lambs.
Under the current border restrictions boneless lamb could be exported, however this is not happening because of the problems with the lack of federal slaughter and processing capacity.
He would also like to bring to the attention of the House that the negotiations to open the border to sheep are complicated by the lack of a comprehensive national scrapie strategy and has requested that our producers be eligible for any additional enhancements to programs such as CAIS.
With the commitment of funding we are confident that the industry would emerge from the crisis on a competitive footing with the opportunity to again expand and prosper.
The obstacle to CAIS is the cash on deposit. The up front funding requirement prevents farmers from taking out full coverage on their operations. This was best described by the member for Battlefords—Lloydminster when he said that this was like a person wanting to insure a house for $100,000 and having to put $20,000 in a bank account before the insurance company would sell the person a premium.
The CAIS program is a five year average of nothing that equals nothing. The program does little but stabilize farm poverty. Farmers are continuing to go bankrupt. They lose their farms and they must seek work off the farm just to survive.
In Saskatchewan this year we will be celebrating our 100th birthday. As one of our members said earlier, we celebrate the intergenerational farms that have had their farms in their family name for 100 years.
I spoke with someone who was a recipient of this award this summer. This award was given to their family farm. The recipient had a choice between a sign posted at the driveway or a plaque in commemoration of this historical milestone. He took the plaque because that is how uncertain the future is on his farm, so that he could take the plaque with him when he does lose the farm.
The parliamentary secretary spoke of the formula that levels out the boom or bust. It does perhaps in his view level out the boom or bust but I believe we are in the bust.
Saskatchewan's 40% share of the CAIS program could range between $170 million and $300 million. However, the NDP provincial government has put a $99 million cap on the program, which, unfortunately, is an economic reality in Saskatchewan.
The farmer, with the help of an accountant, has completed and submitted an application for CAIS. This farmer in particular, due to the province's spending limit on CAIS, only one-quarter of the province's 40% program share is being paid right now. He writes:
On our farm we had built up a reasonably good reference margin from previous years. However, 2003 was next to an economic disaster for us because of the reduced grain prices and the effects of the BSE crisis.
He wanted to know if the difference between the province paying its full share of 40% versus the 10% at present would amount to a reduction of $28,000 from CAIS in 2003. If the producer was from Alberta or Manitoba and had the same income and expense numbers his support from CAIS would be $28,000 larger. That is a big difference.
The response from our province has always been the same on issues of dollars in agriculture. It cannot afford to fully fund CAIS. It cannot afford to reduce the education tax on farmland. It cannot afford to add money to the BSE assistance initiatives announced by the federal government. An article written by a local agriculture consultant says that farmers are frustrated with our government.
Agriculture was mentioned in the throne speech by one word but it was mentioned alongside other sectors. It was only mentioned in passing as the throne speech mentioned automotive, aerospace, other manufacturing as well as agriculture and other resource based industries, hardly a priority for our government.
:
Mr. Chair, I would like to ask my colleague a question because we live in the same part of the country over in the Saskatoon area of central Saskatchewan.
Some of the announcements made by the government on September 10 were long overdue but they were also, as we know since we have had this debate before, pretty inadequate, administratively bungled and so on. These were only half of what our party proposed in February 2004 when the industry was not nearly in the dire straits that it is at present. We need much stronger measures to deal with the devastating crisis so farmers can weather this problem. Our agriculture critic for the Conservative Party has said that producers need reasonable, responsive, reliable relief in real time.
I have begun to receive reports on the CAIS program and I would like to ask her what she is discovering about this program. The government needs to rethink its entire approach to agriculture. Its mechanisms for supporting Canadian agriculture have been riddled with problems for years.
The Canadian agriculture income supplement program is badly flawed as well. The program is called an income supplement but the Liberals, true to form, have treated it as a welfare program. I am now beginning to hear from constituents who have suffered as a result of the Liberal government's mismanaged CAIS program. Instead of having an income insurance program with predictable contributions by farmers and predictable rules for payouts, the program is in constant flux, apparently at the whim of whoever happens to be the ag minister at the time.
There is no certainty with CAISP. Announcements for changes are often made before the programs are ready and without application forms. Rules are often arbitrary and changed arbitrarily, and payouts are unpredictable. The scenario in my province of Saskatchewan is that farmers will receive less because the Saskatchewan government has decided that it will not put as much money in. It is either unable or unwilling to pay into this program.
I wonder what the member has been finding out in terms of the unpredictability, the flaws and the problems that seem ripe in the CAIS program these days.
:
Mr. Chair, it is a privilege for me to rise this morning in the House to speak to an issue of great importance to the constituents of Fundy Royal as well as other Atlantic Canadians.
The BSE crisis is affecting farmers from coast to coast. There is, however, a misconception out there that this is a western issue. It is more than that. It is a Canada wide crisis. For example, there are approximately 1,000 beef farmers in New Brunswick. They contributed $27 million to the provincial economy prior to this crisis. This has dropped to $19 million since the finding of BSE in 2003.
I had the privilege of working with our party's agricultural critic on this issue, and I commend her on her leadership. I have also met with producers in and around my riding to hear how this issue is affecting them in Atlantic Canada. What I have heard is that Atlantic farmers are in crisis. Many of my constituents are faced with the real prospect of bankruptcy and the loss of their farms. Federal aid programs are not helping because they are not reaching the people most in need, and that is our farmers.
Our farmers are some of the hardest working people in Canada and when a crisis like this hits they deserve our help. However, the farmers I have met with tell me that the Liberal program has been of little assistance to them in their time of need. I have heard, for example, from a young farming couple who run a dairy and beef farm with 80 to 100 head of beef. They used to sell their cull cows for $600. Now they are only receiving $66 for a cull cow.
I spoke to another farmer who last year only received in aid an amount equal to what he would normally have gotten by selling two heifers. Another farmer in my riding is now driving a school bus to make ends meet on what was once a successful farming business.
I heard from beef farmers who are confused about how to apply for funding or whether they are even eligible for funding. Forms are so confusing that even departmental officials cannot give straight answers to Canadian farmers.
Clearly, farmers require assistance. What they do not need is more delays, red tape and hoops to jump through. They need help, but they need it at the farm gate. Any assistance that is provided must reach those that require it. Our farmers cannot afford for the Liberals to get it wrong once again.
Another misconception is that the BSE crisis is one that affects only beef farmers. Again, nothing could be further from the truth. For example, dairy farming is a vital part of the economy in my riding of Fundy Royal. As a matter of fact, approximately 70% of New Brunswick's dairy production comes from my riding. The proposed solution by the Liberals to this crisis does not help dairy farmers. Often the CAISP does not benefit dairy since many dairy farmers do not meet the program's requirements. Besides, farmers need a deposit to participate in the CAISP and many of the farmers in my riding are unable to borrow enough money for a deposit.
In Atlantic Canada our farmers are in a particularly tough spot since there is little infrastructure in place for other farming endeavours. I am encouraged that we are working to increase processing capacity in Atlantic Canada. I am also encouraged by the hard work of stakeholders in my region to come up with solutions to this problem. What is discouraging though is the failure of the Liberals to deliver aid to the farm gate. If we are going to have aid programs, an overriding priority must be ensuring that the help arrives in time for those in need.
This crisis will only be resolved when we have an open border with our neighbours to the south, the United States. Again, the previous Liberal government had a dismal relationship with the United States and our farmers have suffered for it. It is time for politicians to put aside pettiness and act in the best interests of farmers and in the best interests of our country.
I encourage my colleagues on all sides of the House, no matter what part of Canada they are from, to work together on solutions that will save our farms.
:
Mr. Chair, this is my first opportunity to address the House of Commons as the member for the new constituency of Lanark—Frontenac—Lennox and Addington. On some other occasion, I will take the opportunity to acquaint the House with the many charms of this beautiful and historic district, which stretches from the western edge of the city of Ottawa all the way down to Lake Ontario west of Kingston and fills all the shield country and the farmland in between.
However, tonight let me simply say that Lanark—Frontenac—Lennox and Addington is cattle country.
In an inventory taken in January 2003 it was reported that there were 24,950 head of cattle in Lennox and Addington County, 26,550 head in Frontenac County and 31,650 in Lanark County. All told, that is over 83,000 head of cattle, which is to say there are more cattle than voters where I come from. That is leaving aside the sheep industry which is also strong in the counties that I represent.
As we can imagine, people were paying close attention on that day, 18 months ago, May 20, 2003 to be exact, when a single case of BSE was reported 1,500 miles away in Alberta and the U.S. border slammed shut to the export of ruminants. Six days later Parliament held its first emergency debate on BSE. However, in the 18 months between that emergency debate and the one we are having tonight, the government's lack of action has ensured that the situation has grown much worse for thousands of rural men, women and children across Canada.
The BSE crisis has been a direct blow not only to our beef farmers but to our rural economy as a whole. Border closings have cost the beef industry in rural communities more than $6 billion and close to 5,000 jobs. In Ontario alone the crisis is costing the beef industry $11 million a week when we factor in losses to support industries such as sale barns, livestock transporters and so on.
Beef used to be a $1.2 billion a year industry in my province. In 2002, which is the last full calendar year for which we have statistics before the border shut, Ontario beef exports to the United States were valued at $292 million in beef product and $354 million in live cattle.
That last number is significant because not one penny of that $354 million has been restored through the partial reopening of the U.S. border to boxed and processed Canadian beef. Because we lack the capacity to slaughter and process that beef here in Ontario, we cannot even fully supply Canadian tables with Canadian beef.
My remarks in this debate will focus primarily upon the absence of domestic processing capacity and what we can do to correct this problem. However, first I will focus for a moment on the cavalier overall approach that the Liberal government has taken to the macro problem of getting the U.S. border to reopen.
Throughout the crisis it has been obvious that the only complete solution to Canada's oversupply problem would be to reopen the Canada-U.S. border. That requires the cooperation of the executive branch of the United States government; in other words the cooperation of the Bush administration. Only direct intervention at the level of the Prime Minister himself could have caused the President over the course of the past year to take the measures necessary to stop his administration from engaging in what has long since ceased to be an exercise in protecting the American food supply and has become a textbook example of protectionism.
Instead, any capital that Canada might have had to encourage the President to use up some of his own domestic political capital by taking on the supporters of protectionism within Congress and within his own administration was squandered by the anti-American grandstanding that has been engaged in by persons in the Canadian government, as prominent as former prime ministerial press secretary Francie Ducros who called President Bush a moron, by the hon. member for Mississauga—Erindale who referred to all Americans as bastards, and indeed, by the former Prime Minister Jean Chrétien himself who held a press conference to explain just how badly President Bush was managing the domestic American economy.
Therefore, by attacking and belittling the Americans gratuitously, the Liberals have frittered away our capacity to get tough in trade negotiations. If the current Prime Minister were really serious when he promised to improve Canadian-American relations, he would not continue to tolerate these kinds of outbursts in his caucus in the House.
I might add that he promised, and this was during the election coincidentally, that he would have the border reopened by the end of summer. Summer has come and gone. A further four months have passed and here we are having another emergency debate with the entirely realistic possibility before us that the border will remain shut to live exports well into 2005.
By now more than half of the period that the border has been closed to live beef exports has been under the watch of the current Prime Minister. So much for his self-proclaimed capacity to establish closer links between Canada and the United States after the exit of Jean Chrétien from the political scene.
I will turn now to the need for increased domestic slaughter capacity with a focus on my home province of Ontario.
Over a year ago, during the first summer of the border closing, I started a program to distribute bumper stickers and signs with the message “Ask if it's Canadian beef”. With the help of many enthusiastic volunteers, we distributed quite literally thousands of these across the rural areas that I represented and far beyond. I set up a website, www.buycanadianbeef.com, and we ran a newspaper advertising campaign that continues to this date.
What good is it for Canadian consumers to increase the consumption if they cannot purchase Canadian product? If we do not expand our domestic slaughter capacity so that we can service both domestic and foreign product, no amount of demand for beef will reduce this country's oversupply.
Over the past 30 years there has been a 50% decline in Ontario's federally inspected processing capacity from 1,089,000 head in 1978 to 544,000 head in 2002. Between 1992 and 2002 alone, those would be the years when the Liberals governed Canada, the number of federally inspected slaughter plants in Canada dropped from 73 to 31 and in Ontario from 11 to 6. The most obvious result of this decline in slaughter and processing capacity has been an increase in exports of live cattle to the United States over the last 15 years. From 1987 to 2002, total Canadian exports of live cattle rose from 197,000 head to 1,539,000 head.
In 2003, according to the president of the Grenville Cattlemen's Association, which represents producers in a county just southeast of the one that I represent, 90% of the cow calves from our region of Ontario were going to Pennsylvania for processing before the border was shut.
This increase in processing capacity is necessary not only for Ontario beef producers, including cull cows, but for other ruminant producers as well. Ontario sheep producers in particular have been calling for an increase in processing capacity in our province.
If processing capacity in Ontario were to expand, it would also allow farmers to sell not just a primary commodity but a value added product. This particularly would be the case if we were to provide a regulatory environment that is friendly to small scale processing plants and suitable to the needs of small scale and specialized producers of high value beef and lamb. Organic producers come to mind as an ideal example of value added producers who could benefit from an increase in small scale processing.
Perhaps the most important benefit of an increase in domestic slaughter capacity would be the assurance that it would provide for the future of our industry. One frightening scenario is that the border might reopen to live exports in January 2005 and then on the basis of a single new case of BSE snap shut again in June or July, starting the whole cycle of loss and despair all over again. As long as this is a realistic possibility, the inherent value of the Canadian herd will be greatly reduced, as will be the capacity of Canadian producers to find financing for their beef production activities.
An industry that is hamstrung in its ability to access capital is an industry that will find it difficult to modernize and expand, which it must do if Canadian beef producers are to remain the most efficient in the world.
:
Mr. Chair, this being my first opportunity to rise on behalf of the constituents of Fleetwood--Port Kells, I would like to thank my constituents for their confidence and trust in me. Indeed, it is an honour and privilege to represent them here in this Parliament.
The issue before us tonight, the BSE crisis and the ongoing closure of the U.S. border to live Canadian beef, is of vital importance to the Canadian economy.
Eighteen months ago the discovery of a single case of BSE on an Alberta farm launched beef farmers on a long but steady road toward bankruptcy. The fallout from that BSE case threatens rural communities from British Columbia to Nova Scotia.
Estimated losses now total more than $6 billion. Cattle that were worth nearly $1,500 before BSE hit fetch only $350 today, not even covering the cost of feed. About a million head of cattle are raised throughout British Columbia. Before the current crisis, the beef industry contributed $1.4 billion to the B.C. economy and the sales of cattle are nearly on par with those for dairy products and vegetables and surpass poultry sales by $100 million.
Agriculture has been the economic base of Surrey for over 100 years. Even today as the fastest growing city in Canada, almost one-third of Surrey's total land area is agricultural.
The BSE issue is an economic crisis that is severely punishing our beef producers and many related sectors. The BSE crisis is not about unsafe meat. Within six weeks of the border's closure, a team of international experts concluded that the herd in Canada is safe. However, the U.S. department of agriculture, despite acknowledging that beef from Canada poses no health risks, keeps the reopening mired in procedural studies.
The Liberal government assured Canadians that the border would be opened by the end of the summer. It turns out that the only strategy the Liberals had was to hope that it might just come true. Now it is October and the border remains closed and there are no signs of it opening again.
Last month the agriculture minister admitted that there is no specific end date to the American review process. That means there is no relief in sight for the beef industry. About 60% of the cattle in Canada are raised for export to the United States. Before that single case of BSE, we exported 2.5 million cattle annually.
What we have now is strictly a political problem that has nothing to do with the quality of safe Canadian beef or scientific fact. My constituents know where the blame lies. It lies with the weak and arrogant Liberal government that has failed to maintain good relations with the United States.
The Liberal members appear to consider it good fun to call our neighbours childish names. An ongoing string of anti-American outbursts from the Liberal caucus members has been detrimental to Canada-U.S. relations. These outbursts have compounded the situation, just as they have with the critical problem we face in the softwood lumber dispute.
A NAFTA panel ruled that Canadian lumber was not a threat to American producers and that the 27% levied since May 2002 could not be justified and further pursuit would be futile. But the U.S. is still not accepting this ruling and is likely to file yet another extraordinary challenge.
The Liberal government does not have a clear strategy to deal with these ongoing trade disputes with the U.S. The Liberals, rather than defending and expanding Canadian trade, have rather seriously jeopardized our commercial relations with our most important trading partners.
For the sake of Canada's farmers, lumber producers and countless other industries, I hope the Prime Minister will develop some backbone and exhibit better control over his members. The Liberals should put an end to the strategy of crossing their fingers and hoping the U.S. border will suddenly reopen to live cattle. What our farmers need now are open markets, not a gutless and indecisive do nothing Liberal government.
:
Mr. Chair, it is indeed an honour to rise today on this special occasion to address this important issue. I would like to begin by thanking my constituents in Nepean--Carleton for entrusting me with the sacred honour of representing them and their interests here on the floor of Canada's House of Commons.
When I think of my constituency, my thoughts often turn to the rural agrarian portion of the area that I represent. I think of the cornfields of North Gower or the pumpkin fields in the old township of Osgoode. I think of how hard my constituents have worked to develop strong agricultural industries.
That is why it was a heartbreaking experience for me to watch as $6 billion in wealth was destroyed by this crisis, by this impending problem that we face with the mad cow crisis. There have been 4,200 jobs lost in the beef industry alone. So far, I regret to say that the government's response has been half-hearted at best and disastrous at worst.
To begin with, in my constituency a large number in the cattle industry focus on the dairy side. The CAIS program which the Liberals have offered does not help farmers in the dairy industry. It is so riddled with bureaucratic regulations and forms which take forever to fill out and are never available that it does not often help those in the beef industry either. That is why I will focus my attention on three specific issues that I believe can happen domestically, and then one overriding issue that needs to happen internationally in order to resolve this problem.
The Canadian Cattlemen's Association proposed a tax strategy which was totally ignored by the government. First of all, it proposed tax incentives for new slaughterhouse capacity, that is, to encourage new capital investment in slaughterhouse capacity across Canada. As hon. members have already pointed out, we cannot even service our domestic demand because we do not have the domestic slaughterhouse capacity to bring our beef to market. It is not just a matter of selling beef; it is a matter of getting that beef to our own market.
The association also proposed tax deferrals. Tax deferrals would help ease and mitigate the immediate burden associated with this sharp distortion to our economy. It would help those farmers who are in desperate need today deal with their cash flow problems by allowing them to have a temporary break from the enormous burden they are forced to carry as Canadian taxpayers. Tax averaging would also help those farmers who unfortunately have been forced by circumstances to exit the market. Many of them have done so in my own constituency. When it happens, tragically it is unfortunate to see that they have to pay enormous tax burdens on a one time basis because they are liquidating their assets all at once. We believe there should be tax averaging.
Those are all proposals that came from the Canadian Cattlemen's Association and were ignored by the government.
I will now turn my attention to the international focus. The hon. member across the way is right to focus on developing new markets internationally, but as I pointed out earlier, we cannot even service domestic retail demand because we do not have the slaughterhouse capacity to do it. As a result, we are not able to project our industry any further at this point in time into the international markets.
We need to focus on getting the American border open. To start with, we need to acknowledge that yes, the Americans are wrong. Their trade policy has been protectionist and it is bad policy for Canada, but it is also bad policy for the United States of America. The reason the Americans were importing live cattle before this crisis is that they could get it for a better price at a higher quality. As a result, the government should have built strong relationships with consumer groups who have a vested interest in bringing Canadian live cattle into their market. It should have built those relationships to ensure that we would have greater domestic pressure on the American government to get the borders open.
Instead, the peanut lobby in the United States, in Washington, is more powerful than the Canadian presence in the U.S. capital. We need to build our presence there. We need to link arms with those senators who are in states that import Canadian live cattle. We need to link arms with other groups that have an interest in our exporting to the United States of America and build a strong domestic pressure movement to get the border open.
We need a renewed focus on this issue to resolve this problem in an orderly fashion so that constituents in my riding and across the country will be relieved in their suffering and our foreign markets will once again rightfully be open to Canadian cattle.
:
Mr. Chair, as this is my first opportunity to rise in the 38th Parliament on behalf of the constituents in the new riding of Newton--North Delta, I would like to thank them for putting their trust in me as their member of Parliament. I would also like to thank my former constituents of Surrey Central for their cooperation and support.
Mr. Chair, I would also like to congratulate you on your appointment to this important position. I wish you well.
Tonight we are considering the issue of BSE, which demands government action. For exactly 500 days today the government has dithered and shown no leadership while Canada's beef farmers and all those dependent upon the beef industry for their livelihood have suffered devastating financial losses.
It appears that the food producers are not important to the government. For evidence, we need look no further than last week's throne speech. Agriculture and the BSE issue were each mentioned only once and that too was in the most general terms.
In February, the official opposition proposed a set of solutions to the BSE crisis. Unfortunately, due to the Liberal government's politicking, our solutions were not implemented and the situation is critically worse today than it was in February. This government waited until September to announce a flawed aid program after more damage was done to the industry.
The government should not have included BSE assistance for producers as part of the Canadian agricultural income stabilization program, CAIS. The CAIS program for disaster relief is a disaster by itself. Many farmers have applied for the CAIS program and have been waiting in excess of eight months without cash payment for the year 2003. If that is this government's definition of an advance payment, how long will it take to get a delayed payment for the year 2004?
Today there are still no application forms available for producers wishing to apply for this desperately needed cash. How can farmers apply for a program that has no application forms and that for all intents and purposes does not exist a month after its existence was announced? As of October 6, the allocated funding for portions of the aid program was still not approved by Treasury Board.
The deadlines and delivery methods for the BSE aid program are administratively inconsistent in every province. As it stands, there will be no allocation by province. This means the Liberals are pitting farmer against farmer and it ensures regional inequity. It is an insult added to injury for farmers. The Liberals are again reinforcing the message that food producers and farmers are not important to the government.
There may not be a quick fix solution to the challenges facing the beef industry. We do, however, need to get more slaughter capacity in Canada to deal with the growing backlog of cattle.
Without the U.S. border opening we still do not really have functional markets. We therefore need a new marketing strategy to find export markets other than the United States to reduce our dependency on that one market.
The government must also address optional long term debt restructuring and proper compensation for cull animals. It must ensure that compensation is adequate to manage and maintain the breeder cow herd. Finally, the federal government should implement tax incentives such as tax deferrals and provide loan guarantees for producers and tax breaks for producers needing to depopulate their herds.
The crisis is worsening across the country. Members know that cattle farmers are not the only ones affected. I met with Maurizio Zinetti of Zinetti Food Products, a Surrey businessman who produces beef products for export to the United States and Japan. Last year Mr. Zinetti's companies lost millions of dollars in sales due to the BSE crisis.
Flawed relief programs and blanket assurances that the border is going to open in the future are simply no longer good enough. Unfortunately for Canadians, the government is not capable of governing. It is only interested in positioning itself for the next election.
We need a Prime Minister who will make informed and timely decisions. The current Prime Minister has baffled, dithered and delayed on softwood lumber, the national missile defence system, same sex marriage, Kyoto, internal party bickering and of course BSE. These are just a few examples.
Let us also not forget the government's mismanagement of the hepatitis C file. Victims are still waiting for compensation, with some shut out of the process entirely. Money set aside for compensation is sitting untouched, collecting $50 million in interest while victims are dying penniless. The government should hang its collective head in shame.
The Prime Minister's indecisiveness means that important issues are being ignored to the detriment of Canadians. Canada needs strong leadership. We need a leader who will make the tough decisions, even if they are initially unpopular. A real leader has to take an informed position and then build consensus around it. We certainly do not need a leader who attempts to govern by poll.
If the Prime Minister had taken the decision when it was supposed to be taken, our farmers and food producers across the country would not have been in the situation in which the weak and arrogant Liberal government has put them in. It is time for the government to take some appropriate action and make sure that our industries, one after the other, survive and Canada becomes more prosperous day by day.
:
Mr. Chair, I understand. I was just going to say that I had said on the record that I recognized live cattle were not getting into the industry.
The member opposite tried to make the point in a broad sense that the government is not living up to its responsibilities. The member is wrong.
We have a lot to be proud of as a government. We made the hard decisions in 1995, as a party and as a government under the previous prime minister. The current Prime Minister was minister of finance at the time. It is because we made those hard decisions that we are at the top of the G-8. We have had seven surplus budgets so we have the money to deal with child care, the health accord, which was just announced, and quite a number of programs. I do not need to get into them at this late hour.
The government has a lot of which to be proud. Yes, we have trouble in the agricultural industry. We have admitted that. Yes, the BSE is causing us lots of problems, but the leader of the official opposition said the other night that the bottom line was that the border was closed and that was causing the problem. Yes, it is what caused the problem
If we go back to the record, and I will not get into the points, it will show the number of programs we have implemented. It will show the September 10 announcement by the minister. It will show that the Prime Minister and the minister are overseas constantly trying to find new markets.
We are doing our bit, but that is not to lessen the impact on the finances of the farmers. I recognize there is a problem there. They are my neighbours. I have been there myself. I know what it is like to be in financial difficulty and to worry about losing one's farm. We do not want to see them in that situation. We are acting on it, we are acting responsibly and we are doing all we can. If suggestions come out of this take note debate, then we are certainly willing to consider them.
:
Mr. Chair, first, I congratulate the lonely Liberal member who has been participated in this debate for the last two years. He has taken the brunt for the Liberal Party single-handedly. I congratulate him for that. On the other hand, he talks about his government being proud of its record. Let us look at the record.
The Prime Minister when he was finance minister cut $25 billion from health and education. As a result, our health care system is in the current situation of status quo. There is a shortage of doctors, nurses and beds. He created this problem and now he is trying his best to clean it up. He is desperately moving forward in a way to clear a legacy for himself to cover up the mistakes he has made.
Let us look at the softwood lumber crisis. It was the Liberal government that was responsible for the last three years. It sat on its hands and did not take action. This is another example of indecisiveness, which has created a problem for our softwood lumber industry.
Look at the record on fisheries. The government created another mess in the fisheries on the west coast as well as on the east coast.
Let us talk about other things. The member talked about being proud. We have western alienation. The government created that mess. It has abandoned the port police. It has taken the heart out of the coast guard. It has left my province, which is prone to earthquakes, without emergency preparedness. How can the member be feeling proud of the record?
Let us look at other things: the corruption of the government, mismanagement and unaccountability in the government. All these things are compounding, and that member should hang his head in shame rather than feel proud about his government's record.
On the other hand, I feel very proud of the Leader of the Opposition to which the member referred. He is the one who proposed a solution to the problem. If the Liberal government had adopted the solution he proposed, we would not be in the mess we are in today.
The Liberal government's record is in front of us. How can the lonely Liberal member in this chamber be proud of that record? I cannot comprehend that.
:
Mr. Chair, I rise for the first time in this great House. I am very honoured to be here and pleased to have the opportunity to speak on behalf of my constituents in the fine riding of Simcoe—Grey.
As we heard last Thursday evening and many times during tonight's take note debate, Canada's beef farmers are in a desperate state, yet the government continues to fumble around for answers and solutions. In fact the government had a decade to prepare Canada for an eventual case of BSE. It had a decade to prepare a plan to deal with a single case of mad cow yet it did nothing and we have all had to suffer the consequences of this inaction.
The government continues to fail our cattle producers to this day and it is certainly not limited to its inability to get our borders fully open to export. Of course in my riding of Simcoe—Grey we have many cattle farmers.
Today I spoke with a friend of mine by the name of Kandy. Kandy is--sorry, Kandy was a seed stock farmer and 75% of her herd were American sales. She has sold off a registered herd that she spent all her life developing. With the border closed, she had no choice.
I also heard from Mr. Doug Patton of Adjala-Tosorontio. Doug farms with his son Jim, who is the fourth generation Patton to be farming in Adjala-Tosorontio. They used to keep around 120 head of cattle. They are trying to sell off the remaining 10. They want to get out of beef completely, but guess what? Nobody wants to buy them. In fact they lost $1,000 a head on the last cattle they sold. Doug has not received any compensation because he did not qualify under the rules of the Liberal plan.
The cattle were grazed on rough land that is no good for crops. Now it is not used at all. Perhaps this will be another family farm sold to a developer. Maybe if this land is developed into a city, the government will pay attention to it.
Doug is not the only farmer that I have heard from. Many have called to tell me that the banks are not lending operating lines of credit to farmers or anyone whose business deals are primarily with farmers. The only way for a farmer to get operating funds is to mortgage his or her land. This is another direct attack on the Canadian farmer.
Mr. Patton has questions, as do many farmers. They want to know why the government directed a majority of compensation money to the processors. The price of beef is up in the stores but processors are still buying from the farmers at 50¢ on the dollar. Farmers want to know what is being done to ensure this does not happen again. What is being done to ensure that the money will be put in the hands of the farmers?
Another farmer I have spoken with is Mr. Doug McCormack of Beeton which is a small town in the southeast part of my riding. It is a great little town, home to a wonderful councillor by the name of Richard Norcross. Doug is a fifth generation farmer. His family has been farming cattle since 1845. He is a farmer who specialized in purebred registered beef cattle and at one time he had a commercial feedlot with 800 steers. That is all gone now. Doug has just sold more than 100 cows at a tremendous loss.
It is time that the government took the time to speak directly with these small farmers. We will hear time and again that it is completely impossible to operate a business in this environment.
In closing, I would like to comment that there is widespread frustration with the new CAIS program. Why did the government close down the NISA program before the CAIS program was fully operational? I attended not one but two information systems on the CAIS program. This was provided to local farmers in my riding. I found the sessions severely lacking in information and severely lacking in advice for the farmers. Many walked away more confused than when they had entered the session, myself included.
Why in such a desperate time did the government reduce the support for farmers? Why at such a desperate time did it decrease the access to support for farmers?
:
Mr. Chair, I want to congratulate the member on her first speech in the House.
I would suggest that probably for a maiden speech the member set a record for either being the latest maiden speech in the evening or the earliest in the morning, if someone wants to look into that, but I do congratulate the member on her speech.
I want to deal with one point. The member raised the question of why did the government direct the money to the processors? The fact of the matter is, we did not. I agree that the money did not get to where it was intended to go. I was involved in the design of the program and every effort was made to try and ensure that the prices would not drop and the farmer would end up maybe getting the money out of the government program, but taking a loss on the decline in prices. Every effort was made to ensure that would not happen, but in fact it did and we admit that.
The problem showed up later when we wanted to find out as an agricultural committee, did the packing industry really gouge the farmer in that instance? The only way we could do that was to get hold of the books of the packing industry and examine those books. In fact, this House charged the packers with contempt.
When we went to fine them $250,000 a day until they produced their books, a member from the previous Canadian Alliance Party opposed in this House the ability for us to do that. We were not able to challenge the packers in terms of what they did and whether they gained excess profit or not because a member of that party prevented us from doing that. That point should be made.
Let me close and say that we have had many hours of debate last Thursday night and tonight into the early morning. On Thursday night the minister tried to outline some of the facts on what the government is doing. I hope people will take the time and look at those facts. There have been some suggestions coming from the other side in the take note debate that I think are worthy of consideration. I assure members that we will look at those points.
The bottom line for me at the end of the day is that we must have a situation where our producers can survive and prosper in this country. It is a difficult situation, but we need to try and get there. What we must keep uppermost in our mind is the financial health of our primary producers and their families.