:
Mr. Speaker, I move that the second report of the Standing Committee on Agriculture and Agri-Food, presented on Thursday, June 22, be concurred in.
I will be splitting my time with the member for .
I am pleased to stand in support of the second report of the Standing Committee on Agriculture and Agri-Food which has the following in its report:
That the government prior to any legislative or regulatory action affecting the mandate of the Canadian Wheat Board as it is currently constituted under the Canada Wheat Board Act, submit through plebiscite to all those eligible to vote in Canadian Wheat Board elections, a clear and direct question asking whether those eligible to vote support or oppose the single desk selling provisions of the Canadian Wheat Board.
We put the motion today because of the tactics being used by the Conservative government. These tactics that have been taking place in a Canadian democracy are shameful.
The questions concerning the Canadian Wheat Board and the Conservative government really are: What will the Conservatives not do to destroy single desk selling under the Canadian Wheat Board? What will it not do to take power away from primary producers and give that power to the international grain trade? What will it not do to tear down a marketing institution that has become renown around the world for how it maximizes returns back to primary producers? What will the Conservative government not do in terms of catering to its American friends in the grain trade who have challenged the Canadian Wheat Board 11 times and have lost every time under international trade law?
From its actions to date, it would appear that the government is prepared to use any device up to the very line of legality in an effort to undermine the Canadian Wheat Board.
Under the act, producers should determine their marketing future. I was shocked and surprised by what I heard from the today during question period. What we heard in the House just 30 minutes ago was absolute arrogance from the Prime Minister. He basically told farmers that he would decide what was best for them.
It does not matter whether it is the law of the land or not, he was going to decide what was best for primary producers even though under the Canadian Wheat Board Act they have a right to determine the Wheat Board's future. The government opposite is not only by its words showing its true colours but its actions are even worse.
Earlier on in this exercise we heard about a secret meeting in Saskatchewan, that became public, and the only people on the invitation list were those who were opposed to the Wheat Board. In the final analysis, after Saskatchewan and Manitoba kicked up a stink, they were allowed to go as observers. Imagine this happening in Canada.
Four provincial governments are duly elected to represent their citizens on the Wheat Board and two of those provinces were denied the right to participate. They were denied the right to take part in discussions concerning a marketing institution that affects their constituents. In other words, duly elected governments were denied the right to speak on behalf of their citizens at that one-sided meeting.
The set up a task force which is stacked with only those who oppose the Canadian Wheat Board. We cannot find its schedule. We cannot find out who this task force is meeting with, although we have had a few little brown envelopes slipped to us. This task force is holding secret meetings for invitees only and participants are not talking to those who believe strongly in single desk selling under the Wheat Board.
We know as well that there is word of a fake letter writing campaign, encouraged via the email from a communications firm in Saskatchewan, which said “encouraged by government, MPs and others”. We know they are catering to a propaganda campaign from the other side as well. However, the worst of all was an order in council from the minister himself directed toward the Canadian Wheat Board, which is absolutely nothing short of a gag order.
What we are seeing now is not only has it stacked task forces, not only has it denied democratically elected governments the right to participate in a meeting, but it is also taking away freedom of expression for those Wheat Board directors who have the most knowledge and experience in this industry. They can tell their primary producers, who elected them to their positions, what the pros and cons of various proposals relative to the Canadian Wheat Board really mean to those producers on the ground.
It is unbelievable that this could happen in a democracy like Canada. Those with experience are being intimidated.
The minister will say that it is not really a gag order, but this is what the Library of Parliament has said on these orders in council:
It appears that several activities could fall within the purview of this Order in Council. For instance, electronic and print publications, information on the CWB website and information sessions/meetings held by the CWB, may be prohibited under the order, if it advocates the retention of monopoly powers and involves the expenditure of funds. Further, the term “advocating the retention of its monopoly powers” may itself be subject to very strict interpretation. It is possible that publications prepared following the Directive (and therefore involve the expenditure of funds), which do not necessarily advocate the retention of the CWB's monopoly, but discuss the single desk selling capacity, from a positive point of view, may also potentially violate the Order in Council.
It goes on to say:
Similarily, advertisements sponsored by the CWB, containing information about the advantages of the CWB monopoly may also be considered to violate the Directive.
That is pretty serious stuff. I never thought that a Government of Canada would deny freedom of expression in our country to primary producers, to elected producers to the Canadian Wheat Board who have the information and the knowledge to talk to their fellow farmers.
There are many other factors as well.
Let us look at the economic losses that would occur if we lose that marketing power through the Canadian Wheat Board. I will give summary, and this comes from the Wheat Board itself in terms of independent studies.
The Summary of the annual Canadian Wheat Board, benefits and services for single desk marketing approach for wheat are: the net benefit to producers, $146 million to $255 million per year; the value of single desk marketing approach for barley, $59 million per year; the value of single desk marketing approach for durum, $92 million to $103 million; tendering and railway and terminal handling agreements, $38.1 million per year; net interest earnings, $66.2 million; approach to managing the delivery system, giving farmers power within the delivery system, a benefit of $115 million per year; terminal blending, $7 million to $10 million per year; and farmer access to producer cars, $6 million per year.
The net total loss to primary producers, if they lose single desk selling, which the is doing everything in his power to take away from them, right up to almost illegal means, is $530 million to $655 million per year. Why would the Prime Minister want to take marketing power away from western grain producers? I just cannot understand it.
He will go on. He tried this today in the House by the way that the tries deception, tries to confuse people about the real issues. The Conservatives are using the words “dual marketing”. There is no such thing. We either have single desk selling or we have an open market. Let us not be fooled. If we lose single desk selling under the Wheat Board, then we have an open market in which the multinational grain trade controls. It will take control and gain those profits and those benefits now accruing to primary producers.
Under the law, the Government of Canada, under the Canadian Wheat Board, is supposed to give primary producers a vote on single desk selling in our country. That is what the government should do, even though, at the head depots, it is trying influence producers in many ways with fake letters, manipulation of the press, gag orders in the Wheat Board itself and so on. Producers deserve the right to decide their own destiny on single desk selling.
:
Mr. Speaker, it is a privilege for me to rise today to speak to this critical issue facing the Canadian Wheat Board as we face monumental opposition by the minority Conservative government to the single desk marketing system for Canadian wheat farmers, a hugely successful single desk marketing system I might add. We are seeing the dynamics which point to leadership in this country seeking to undermine the populace and seeking to undermine democracy.
The blatant disregard of the voices of farmers and the gagging of the Canadian Wheat Board by an order in council is absolutely shocking, although it is a pattern that emerged early in the minority government's term as we saw the government fold the Kelowna accord. There too it completely disregarded the voices of aboriginal people in Canada. It made a decision which could have only been done by an order of the or by the to pull the $5 billion commitment. The Kelowna accord was not a partisan effort and the Conservative government refused to uphold the honour of the Crown.
The same Conservative government has plans which it knows very well will gut the Canadian Wheat Board by making membership voluntary and will result in the destruction of the world's largest single seller of wheat and barley. The government's task force does not include individuals except those who support its mission. The Canadian Wheat Board Act explicitly states that the member farmers have the right to a plebiscite on any changes to the mandate of the Canadian Wheat Board.
The Conservative government's tactics on this issue have shaken not only me, but my entire riding. This is an issue of ethics. The principles of transparency, respect and accountability are not found in the dynamics at play which have a sole purpose, which of course is the one point on which the Conservatives have been transparent, to eliminate a world-renowned successful single desk marketing system.
The implications of the dismantling of the single desk marketing system will not only have a negative effect on farmers, but will have far-reaching implications in the employment of hundreds of people at the Canadian Wheat Board and in the private sector of Winnipeg, Manitoba, and thus significantly impacting the entire province of Manitoba.
In fact, the services related to the Canadian Wheat Board reach to the far north and my riding, and the loss will be a crushing blow for the Port of Churchill which sees approximately 80% of its annual shipments from the Canadian Wheat Board. More directly, the sustainability of the port is dependent on the Canadian Wheat Board.
The northern towns of Churchill and Gillam, among others, along the Hudson's Bay railroad line are dependent upon the movement of grain to the Port of Churchill. The Mayor of Churchill, Mr. Mike Spence, says that this is the most pressing issue that his community has had in many years in terms of how it could be affected as a port community.
In Churchill alone, and a community of 1,000 people, the loss will mean the loss of 100 jobs. Communities along the rail line will be adversely affected as they rely upon the local transportation economy. As Manitoba's Minister of Culture, Heritage and Tourism, Eric Robinson, said so succinctly in his communication to the minister:
Most urgently, however, I'm appealing to you not to let your government's CWB policy become another nail in the coffin of several northern communities. Many of these places could just as easily prosper with minimal Federal support and common-sense policy considerations.
The Canadian Wheat Board is all that stands between Canadian wheat growers and the giant conglomerates in the global wheat market. An absence of the collective strength of the Canadian Wheat Board in the international economy would leave farmers to fend for themselves.
A motion was passed by a majority of the members of the Standing Committee on Agriculture and Agri-Food which called upon the federal to commit to respecting the provisions of the Canadian Wheat Board Act and called for a plebiscite of western Canadian grain farmers on the future of the Canadian Wheat Board.
I urge the and all members of this House to look at the entire picture and at the economic consequences that will for sure occur to farmers, workers, and entire communities that are involved in this process.
The solution is clear. The decision on the future of the Canadian Wheat Board should not be decided by the or the Conservative government but by the members of the Canadian Wheat Board. The very least the government can do is empower farmers rather than hinder their capacity to succeed.
:
Mr. Speaker, we heard a bit of an attack earlier on the character of the and I want to respond to that because I do not think the member for should be talking to anybody about character.
I will tell the House a bit about the circumstances of how we come to be here today. He is one of the people in the opposition who insisted that the agriculture committee have extra hearings and meetings. This afternoon the agriculture committee had an extra hearing. All committee members were there while he was here introducing his concurrence motion. I would suggest that he does not have that much of an interest in farmers. He is way more interested in playing with this issue politically than he is in actually dealing with the issue honestly. I know a number of people at the agriculture committee were very upset. They expected that he would be treating it seriously, particularly since he is the official opposition critic. However, he does not seem to be treating his position seriously and I suspect he will not be treating this issue seriously at all.
I want to point out a few different things. We have heard a bit about the hysteria and hyperbole that accompanies this issue. The NDP member just spoke about the fact that she thought the Alberta Conservative government should not have been spending money on promoting its side of this issue and that the federal NDP government seems to be against it.
I would like to ask her a question and perhaps I will get the opportunity later. However, will the NDP speak out against the money that the Saskatchewan and Manitoba NDP governments are spending on this issue? The NDP government has clearly taken one side of this issue. It is supporting and actually helping to establish organizations that will then be speaking to this issue. I would be interested in hearing a little later what she has to say about that issue.
There is another thing that we need to deal with today. She mentioned that there seems to be too much secrecy and not enough oversight. I am not sure what she was talking about, but we can certainly say that about the Canadian Wheat Board over the last few years. Western Canadian producers have not had access to information about the Wheat Board. For example, they can no longer find out through the Wheat Board's annual reports how much money is being spent on communications, advertising and those kinds of things.
As a consequence of that and with the help of the NDP, we proposed an amendment to the accountability act that would help people to access that kind of information with regard to the Canadian Wheat Board. We look forward to dealing with secrecy and providing a bit more oversight into the organization in the future.
There has been an issue over the last few days about the voters list. I need to speak to that and address the issue. Yesterday, the leader of the NDP rose and started to make wild accusations about the voters list for the director elections this fall. He clearly did not understand what he was talking about, which is unfortunate, but hopefully we can provide him and the public a bit of information so they can more clearly understand what is going on in terms of the director elections and the voters list for those elections.
Over the past few years there have been director elections regularly. The voters list has always been a huge concern because everyone who indicates an interest in grain gets a permit book. There are many permit books that are not even used. People do not deliver on them. Someone may own a quarter of land who lives in the city and has nothing to do with the operation of the farm but still has a permit book.
Up until now the ballots have been mailed out to everyone and have actually gone to people who are deceased. There has been no way to know whether people are farming or not farming, or if they have retired or are living in another country. The minister decided to send ballots to farmers who had actually delivered on permit books over the last two years. In that way the government would know that these people had made deliveries and were actively farming. Anyone else who has an interest in grain has not been kept from voting. They simply need to make a statutory declaration saying that they have an interest in the grain and that they would like a ballot and a ballot will be sent out. We definitely wanted to clear that up because there was misleading information coming from particularly the NDP but the Liberals seemed to be mouthing some of that as well.
I would also like to make a point for the member for who admitted that he was not familiar with agriculture. She said that the Canadian Wheat Board stands between farmers and conglomerates. We would suggest that the CWB is actually standing between farmers and opportunity. We looked into this.
The agriculture committee heard last week that the present grading system, which is based on having to visually distinguish the kinds of grains, costs farmers in the neighbourhood of $200 million per year. That grading system is maintained primarily because of the Wheat Board. It has made statements that it cannot possibly get rid of it for another 10 years. Everybody else in the world has a declaration system where farmers can declare the kind of grain they have and then it is checked to ensure it is accurate. That is costing about $200 million a year.
We also know there are freight costs because rail cars are not being fully tendered. George Morris Centre has done work that says that western Canadians are missing between 8,000 and 15,000 jobs that would be available if there were the value added opportunities that we could get if we were able to market our own grain. Western Canadian farmers will have a huge opportunity when we move ahead on this issue and when we move to choice.
I noticed that the member opposite did not really want to talk that much about his concurrence motion and I would suspect the reason he does not want to talk about it is that it is a mess. Tomorrow we will request that people vote against it. We tried to explain to the agriculture committee what the implications of it were. The opposition members were not that interested in serving farmers. They are more interested in their own political stunts so they went ahead and passed this.
I just want to point out some of the consequences that would come out of passing the motion if the member for has his way. The Standing Committee on Agriculture and Agri-Food recommended:
That the government prior to any legislative or regulatory action affecting the mandate of the Canadian Wheat Board as it is currently constituted under the Canada Wheat Board Act, submit through plebiscite to all those eligible to vote in Canadian Wheat Board elections, a clear and direct question asking whether those eligible to vote support or oppose the single desk selling provisions of the Canadian Wheat Board.
That is a mouthful which I am sure hardly anybody could understand. I think the reason the member for Malpeque chose to word it that way was to try to confuse people and to confuse the issue. He probably does not even know this but the board itself does not have a legislative mandate. We can look right through the act and it does not have a legislative mandate. People have tried to take different sections of the board and say that it does but the only possible place that one could actually imply that there is a mandate for the board is in section five where it talks about the object of the board. It says that the object is marketing in an orderly manner in interprovincial and export trade grain grown in Canada. It does not say anything about a single desk and there is no mention of a mandate anywhere in the Canadian Wheat Board Act.
Right off the bat the member's motion does not make any sense, which may not surprise some of us here. The consequence of this is that the recommendation either applies to nothing in terms of the board or it applies to everything. We assume that he does not want it to apply to nothing so he is probably saying that it applies to all the activities in which the board is involved.
Let me explain the consequences of that. This would mean the end of the government or the board's freedom to do a number of things, such as setting initial grain prices. Farmers would not be allowed to set initial grain prices. They certainly would not be allowed to adjust grain prices.
We are sitting in a situation right now where grain prices are the highest they have been in 10 years and our farmers are telling us that, more than ever, they want the opportunity to market their own grain so that they can take advantage of the market. The market is surging and they have opportunities now that they have not had for a decade. What happens? The Liberals, the NDP and the Bloc working with them are preventing western Canadian farmers from having an opportunity to access the market when it is at its peak.
As usual, they are working against the interests of farmers. They want to keep them poor. They want to keep them down on the farm and unable to stand on their own two feet so they have to depend on them. My farmers are telling me that they do not want that. They want opportunities. They want to move ahead and they want to market their own grain.
The motion would also stop us from making a final payment to farmers. I guess everyone here understands that the board sets the initial payment in agreement with the government and then, throughout the year, hopefully, if the price goes up, adjustment payments are paid out and at the end of the year the farmers get whatever extra money is in the pool account. The member for Malpeque wants to shut that down. We do not think that makes good sense at all.
Another thing the motion would do is affect the board's borrowing capabilities. It would stop loan financing and the board's ability to guarantee payments.
An hon. member: Cash advances.
Mr. David Anderson: Absolutely, cash advances. The member is absolutely right. It would stop the board's ability to offer or to administer cash advances. I do not think the member for Malpeque probably understood that when he wrote the motion but that certainly is the impact that it would have. Actually, my colleague makes a very good point. One of the reasons he probably does not understand the impact is because he does not live anywhere near the region where the board applies.
Western Canadian farmers have told me time and again that they are capable of making their own decisions. They do not need people coming from outside and telling them what is good for them. The member for has been doing that to western Canadian farmers for many years and they are getting mighty tired of it.
One of the things that the motion would affect is the ability to administer cash advances. If our farmers do not have that ability, they have nothing. We just extended and improved the cash advance program. We are working through the final regulations to give farmers the opportunity to borrow up to $100,000 cash free and then they can turn around and borrow up to $400,000 against their inventory. We do not want to interfere with that and we are wondering why the member for would be.
The motion would also interfere with the ability to manage the contingency fund that is so important to the board's operations. It interferes with its ability to establish and to manage any of the separate funds that it sets up. I am sure that the board itself does not want restrictions put on that. It restricts any opportunity to provide for enhanced employee benefits. I do not think the member for probably understood that either when he brought this forward.
It actually interferes as well with the ability to change the election process and improve the election process even as the board requests. The board actually agreed with us on the idea that these permit books that were not active be removed from the active mailing list. The board was with us on that in spite of what the NDP and the Liberals have said. If they were to come to use with a suggested change for an election process, this motion that the member for has brought forward would stop us from being able to do that.
It also would stop the government from being able to appoint directors or a president. I am sure the member did not mean to interfere in that way either. It would interfere with the board's ability to invest in outside projects and, of course, it is involved in a number of things at universities, at research centres and there are partnerships around the world. It would also interfere with the ability to do the board's final audit for the year.
It actually goes further than that. It would interfere with any ability to change regulations that have anything to do with the board's operations. That would render the board's operation impossible because there have been 525 orders in council over the last 14 years and they deal with most of the issues that I have just mentioned. Orders in council concerning the board regularly go out. The member for apparently wants all of that stopped until we have a plebiscite.
I do not think he understood what he was doing when he wrote this. However, I am sure that will not change his mind in terms of insisting that his party would support it. The motion would actually cripple the board and bring total chaos. He has brought 100 unintended consequences that he did not realize because of the poor wording of his motion. Hopefully he will take a bit more time the next time and maybe talk to some of us who understand the board and how it operates. A number of people, including some of my colleagues, have spent many years dealing with this issue. They certainly have the capability and the capacity to direct the member for and to give him some clear understanding of what the board is all about.
I want to take a minute to talk about one of the other options or opportunities that we have offered western Canadian farmers. The member for said that he has been a farmer advocate for many years and that he wrote a report last year that supposedly said that farmers needed more access to opportunities and to capital, and that they needed more ability and power in the marketplace.
My colleague, the member for, brought forward Bill . It is not a big bill but it is a good bill. It basically says that under Bill C-300 prairie producers could market their own wheat and barley directly to processing facilities owned by prairie producers. It seems pretty straightforward does it not? Prairie producers can market their own grain to a processing facility that is owned by their friends and neighbours.
Finally, we have a small thing here that would give farmers an opportunity. In the past of course this has not been allowed. Swift Current is in the centre of my riding where a few years ago people wanted to set up a pasta plant. They had support from the area and they had a great project going. It was going to be very successful and we thought we could compete with anyone in the world. We decided that there was no sense in sending our grain to another country so someone else could make it into pasta and get the benefit from that. We decided we should keep it at home and make pasta in Swift Current, Saskatchewan, and ship it out to the world. Since we grow the best durum in the world we wanted to see what we could do with pasta.
The project never got off the ground. The main reason the project did not get off the ground is that the Canadian Wheat Board said, “We are not going to let producers deliver their own grain to this facility and then process it. They have to go through the buy back”. They have to take their grain which is in their bins and they have to sell it to the board and then they have to buy it back at a higher price. Then they can try to sell it to the pasta plant.
An hon. member: Plus freight and elevation.
Mr. David Anderson: Plus freight and elevation, exactly. It just did not make sense. It did not make it profitable. That project has sat for years waiting for an opportunity. I talked to people at home and they still wish that they had the opportunity to participate in that. Bill deals a little bit with that opportunity that we think we need to have for western Canadian producers.
The surprise to me was that members of the opposition decided that they would oppose this. The opposition is led by an agriculture critic who says that farmers need some strength in the marketplace, but when we came forward with a bill that would actually give them some, that would not have changed the marketing system, he opposed it. His colleagues opposed it because they do not know any better and they get their direction from him.
We would think the NDP would be on side with a proposal such as this, small community projects and people could get together and work with their neighbours and set up a processing facility to process their own grain. One would think the NDP would take that up in a minute, but the NDP decided that ideology was more important than farmers. For some of us this is not much of a surprise any more.
We see it in the debate that is going on right now. We simply want to offer western Canadian farmers the choice to do their own business. Let me as a western Canadian producer when I get up in the morning decide that I am going to sell some grain. I am going to take a look at what the price of grain is. I am going to make what I think is good deal and I am going to move my grain.
The opposition members do not want that to happen. They want me to have to go to the Canadian Wheat Board and I have to sell it to the Canadian Wheat Board. I have to buy it back and then I have to try to find someone to buy it from me.
Someone called me last night and said that right now he has a barley sale, organic barley into the United States. He made the sale. He went to the board for the buy back and the board told him that he could have the buy back if he wanted to pay $122 a tonne for a buy back, which is unbelievable. That is almost $3 a bushel extra just to buy his own grain back. His grain is sitting in the bin. He has made a sale into the United States for his organic grain which the board does not market. Then the board tells him, “You have to give us over $3 a bushel just to get your own grain back”. That is a true story.
It is interesting that the member for will not believe me when I say that. He does not understand how the system works. That is very unfortunate. He is the one on the other side who is in charge of telling the opposition members what their agriculture decisions and policies are. He does not understand what farmers have to go through.
The member for wonders why people become angry. The reason is that he does not have a clue what is going on in western Canada. He does not seem to care. He has an ideological position that he thinks he is going to stay with no matter what. Meanwhile our farmers are going broke.
The Liberals have a history of doing this to our farmers. I do not think they should stand up in the House and try to pretend that they are protecting farmers on the Canadian Wheat Board issue. A few years ago when we had grain farmers who wanted a choice, who wanted to do something different with their wheat, what happened? Did the Liberals offer to have a plebiscite? Absolutely not. The Liberals locked the farmers in jail.
People went to jail and people were being strip searched for weeks at a time. That was as a consequence of that member, the member for and the Liberal caucus at the time making a decision that that was the way farmers in western Canada should be treated.
Western farmers are tired of it. They want the opportunities that farmers in the rest of Canada have. They want an opportunity to get out there and market their grain. Western farmers are not afraid of the opportunities that face them.
When I say that the George Morris Centre says that there are between 8,000 and 15,000 jobs that would be available in western Canada if we had these value added opportunities, farmers say, “Let me at it. Let me have the chance to do that kind of a thing”.
The government will continue to move ahead. We want to bring choice to western Canadian farmers, the same choices that farmers across this country have. We want to give them the same opportunities that other farmers have. The farmers are very supportive of what we are doing here. It is unfortunate that some of the special interest groups funded by NDP governments and by Liberal caucuses are standing in the way of the opportunities for western Canadian farmers.
:
Mr. Speaker, I am pleased to participate in this important debate this evening. The member for has done excellent work in committee presenting the ins and outs of this issue. That is why we supported the second report of the Standing Committee on Agriculture and Agri-food. I would like to read it to you.
It seems to me that any talk of a referendum, of free choice, is a very important democratic issue. It is important to allow western producers to make that free choice, and the best way to do so is through a referendum. That way, we will know exactly what they want with respect to the future of the Canadian Wheat Board.
Here is the recommendation of the Standing Committee on Agriculture and Agri-food:
That the government prior to any legislative or regulatory action affecting the mandate of the Canadian Wheat Board as it is currently constituted under the Canada Wheat Board Act, submit through plebiscite to all those eligible to vote in Canadian Wheat Board elections, a clear and direct question asking whether those eligible to vote support or oppose the single desk selling provisions of the Canadian Wheat Board.
That is the subject of today's debate. I think it is very important for us to give that choice to the producers who want it. As you know, the Canadian Wheat Board is one of two very important collective marketing tools in Canada, the other being supply management, which I could obviously discuss in more detail.
Currently, we are under attack from WTO member states—especially the United States and the European Union—because of the Canadian Wheat Board and supply management. Now we are also under attack from our own government, the Canadian government. It has been in constant attack mode since it made its famous promise in the last election campaign and even before then, in 2002, when the Prime Minister himself introduced a motion in this House to dismantle the Canadian Wheat Board.
The Conservatives' free market ideology is not news here. However, for some time now, they have been implementing a process to undermine and even destroy the Canadian Wheat Board.
As I was saying, the attacks are not only coming from other countries, but also from within our own country. If this tendency persists, we, in Quebec, are very much afraid that, after the Canadian Wheat Board, the next attack will be on our supply management system.
And I know what I am talking about since I, along with the leader of the Bloc Québécois and people from the Union des producteurs agricoles in Quebec, took part in a meeting, here in Ottawa, with ambassadors from around the world. Representatives from the European Union were present and, for them, it was clear that there was a serious problem at the WTO with regard to marketing, and the culprits were the Canadian Wheat Board and our supply management system.
Pressures targeted at these two marketing tools still exist and we want to eliminate them. We have been doing a lot of explaining and have been able to convince more and more countries, particularly African countries, that were also present at that meeting, and some European countries, that these are not subsidies to our farmers but tools that allow them to get the best possible price at no cost to the government. I am mostly talking about supply management because in the case of the Canadian Wheat Board, there were irritants that were eliminated to comply with other countries' requirements at the WTO.
This election promise about free choice and a dual market was made by the Conservatives. In my view, free choice means letting producers decide for themselves what is good for them. That is the attitude one must always have in politics. Forcing one's ideology or anything else on others is not the way to go, but it is necessary to go out there to get a better understanding of what people want and what they need. As legislators, we will then be able to propose bills or amendments or plans that will really meet their needs.
In the past few hours we have seen another example of that on the part of this government. The Bloc Québécois introduced a motion concerning an adjustment program for older workers. It consisted of measures to help older workers who have lost their jobs because of mass layoffs. The response of the government was something of their own ideology, something that, in their opinion, was the best solution, a kind of program that pleases neither the workers nor the Government of Quebec because it does not take account of the real needs and demands of those workers.
They are proceeding in somewhat the same way in the case of the Canadian Wheat Board. In the committee, I have even heard government members say something along the lines of “We are not going to let the majority decide for the minority”.
It seems to me that in a real democracy it should be the exact opposite. In fact that is the way we conduct our elections. When a majority wants to retain an organization such as the Canadian Wheat Board, we should make certain that it is not dismantled or knocked down.
Earlier, the parliamentary secretary referred to a survey by the Canadian Wheat Board. He provided some numbers that suited his argument. There are other numbers. This is a quite recent survey from March and April 2006. The figures in the survey are quite significant.
For example, 90% of producers believe that any decision concerning the future of the Canadian Wheat Board should be made by the producers themselves. That is exactly what the member for Malpeque proposed during the committee meetings we are discussing today as part of this motion, to let the producers themselves decide the future of the Canadian Wheat Board. Nothing could be more democratic than that. It is the best way to find out exactly what the producers want.
Moreover, 66% of producers are against any weakening of the Canadian Wheat Board; 63% want the marketing of their produce to be under the exclusive responsibility of the Canadian Wheat Board, and 75%—this is important because this is what we are talking about today—75% want a referendum or plebiscite on the future of the Canadian Wheat Board. In my opinion, those figures speak for themselves.
I have other surveys, if that would please the Conservatives, who do not seem to give much credibility to the surveys done by the Canadian Wheat Board. There is the survey of the National Farmers Union, which says that 76% of farm producers in the west, who are subject to the Canadian Wheat Board, support that organization. We are looking here at rather significant evidence.
So this begs the question: Who is calling for the dismantling of the Canadian Wheat Board at all costs? In fact, some of our own producers are calling for such a measure. I, myself, am a producer. I respect their views but I am certain that other producers have other ideas. Just look at the survey; it is not 100% everywhere.
I have received hundreds and hundreds of letters at my office from wheat and barley producers in western Canada, but mainly wheat producers, despite the fact that I am a Bloc Québécois member of Parliament from Quebec. They are asking me to stand up for the Canadian Wheat Board. In fact I am sure that all of my colleagues have received letters written by those producers. These are not form letters, many of them are written by hand, and I have read them all, regardless of where they came from. None of those letters was written by someone from an organization or a communications firm. They are genuine letters written by producers to tell me that in their opinion, the Canadian Wheat Board is very important and that it must not be dismantled.
The unfortunate thing about what is happening now is that since this election promise was made in the last campaign, every effort has been made to dismantle the Canadian Wheat Board. Bill was introduced in this House. We in the Bloc Québécois opposed it because, in our opinion, it was the beginning of the end.
Things got even worse for the Canadian Wheat Board with the gag order imposed on it by the ministerial order made on October 5. If you will forgive the expression, I swear that this knocked me on my backside. I did not even think that a minister could make that kind of ministerial order, a gag order that appalling, and imposing censure on the Canadian Wheat Board. But I can read an excerpt from it:
—directs the Canadian Wheat Board to conduct its operations under that Act in the following manner:
It shall not expend funds, directly or indirectly, on advocating the retention of its monopoly powers, including the expenditure of funds for advertising, publishing or market research.
It shall not provide funds to any other person or entity to enable them to advocate the retention of the monopoly powers of the CWB.
The Canadian Wheat Board has quite simply been gagged, and this is a completely undemocratic procedure. The board cannot even defend itself anymore, while the government continues to attack it. In my view, this way of doing things amounts to unfairness and inequality, and it is not even subtle, because the intention is to prohibit it from speaking and defending itself, to gag it. I have never seen anything like this. In fact, we looked a little into what has gone on in the past. We wondered whether ministers had ever done this. We had to go back to 1979 when Russia invaded Afghanistan.
At the time, all Canadian government organizations, including the Canadian Wheat Board, had been ordered not to have any dealings with Russia because of its cowardly attack on Afghanistan.
This was a highly unusual if totally understandable reason, which required that there not be any trade with a country that had just committed such an act.
It was the government’s decision, and that was to be expected. It simply forbade them to have any dealings with this country for a certain amount of time. Obviously, things have changed now. It was understandable at the time that the government would take the action it did.
I would like a Conservative member, a minister or the to tell me that there was a real emergency and it was essential to prevent the Canadian Wheat Board from speaking, that it was necessary to censure it, to gag it and tie its hands. I am not aware of any such reason. There is no precedent proving that this was essential and that this kind of ministerial order absolutely had to be instituted.
There have been partisan appointments to the board of directors of the Canadian Wheat Board. The steering panel was led by opponents of the wheat board. I spoke earlier about the letters we have received from farmers.
We also received an e-mail from a communications firm. It was obviously not intended for us. The firm was offering its services to the government to send out chain letters directed against the Canadian Wheat Board. At the same time, farmers were sending out letters in support of the wheat board. This communications firm, on the other hand, said that it could send a certain number of letters a week. Lovely form letters would have been sent out saying that the Canadian Wheat Board was not effective and was not any good. Fortunately, this was exposed and a stop was put to it.
The fact that I have not received a single letter goes to prove that there is no real farmers’ revolt against the Canadian Wheat Board. I am sure that I would have received a great many if this communications firm had secretly been able to do what it wanted and if the government had gone along. I have not received a single letter saying that the writer agreed with Bill or agreed with what the Conservative government wanted to do with the Canadian Wheat Board. When we found out what this communications firm wanted to do, we hoped to hear the person responsible for this e-mail in committee. We have not succeeded yet in getting this person to appear, but I hope we will soon do so because we have some interesting questions for him or her.
The Conservatives’ determination has not let up and what comes next is worrying, as I said in the introduction to my speech. I said that for us in Quebec the other extremely important collective marketing tool in Canada is supply management. That is not just me talking. I have met with the main stakeholders, including the people from the UPA. We talked about this with the president of the UPA. We talked to him about the Canadian Wheat Board. They too are worried. This government has a free-trade ideology and nothing will stop it.
For example, I could quote the discussions that took place in parliamentary committee with the before the latest negotiations of the World Trade Organization in Geneva. Whenever we asked him whether he planned to protect supply management, he always said yes. We were very happy with this answer. However, we found ourselves alone, against 148 in Geneva, during the negotiations on supply management. The Minister did not feel very comfortable in that situation.
But he represents a population. Some voted for him while others did not. Regardless, once he is in government, he represents the entire population. He should pull up his pants and defend a system as effective as supply management, even if he is alone. There is nothing to feel uncomfortable about here. What worried me more was the minister’s speech. He said that if there was an agreement in the WTO, Canada would not remain outside that agreement. Canada would not remain alone in its corner and would sign the agreement. To my mind that meant that, if there had been an agreement to begin removing areas of supply management or dismantling it, Canada would have signed.
We have good reason to be concerned considering the Conservative government's attitude.
To give you an idea of how important supply management is in Quebec, I remind members that it represents 40% of the Quebec farm economy. It is the apple of our eye and we are going to defend it tooth and nail. That is what we have been doing since we came to the House of Commons. That is what I, personally, have been doing for over a year, since my leader named me as agriculture critic for the Bloc.
The latest WTO negotiations in Geneva did not produce an agreement. That is almost fortunate. The Doha round was supposed to deal with developing nations. However nothing is being done for them. We hope to succeed in obtaining an agreement that will give those countries a greater access to markets. That is what everyone wants. However, in the case of supply management, every time negotiations reach an impasse we have to heave a sigh of relief. The fact is that successive governments have always said—in promises—that they support us and they are going to defend supply management. When that support is rather lukewarm we have reason to be concerned.
The important thing for the Conservatives is to follow up on their commitment to allow western producers a free choice concerning the marketing of their grain in the export market. What we are seeing, in fact, is the dismantling of single desk selling and, at the end of the day, the extinction of the Canadian Wheat Board.
Yet section 47(1) of the Canadian Wheat Board Act is clear. Any decision seeking to change single desk selling must be made by the producers. I do not understand why the government is opposed to the motion presented by the member for since a very clear section of the Canadian Wheat Board Act provides for consultation of farm producers. It is up to them to decide; it is not up to the government.
I mentioned the UPA, the Union des producteurs agricoles du Québec, earlier. We met with them, with our leader, to discuss the Canadian Wheat board, even though it does not apply to Quebec. Those people explained to us very clearly that in Quebec there were quite a few voluntary marketing agencies that failed not long after they were created, whether they were set up to market grain, potatoes, apples or greenhouse vegetables. All of those experiments, which date from the 1990s, could not be sustained. The marketing branch of the UPA did a thorough study of this subject. They examined cases where these models had failed, and what they found was that they lacked a critical mass of the product to be marketed, and the corollary to that, participation by producers—
Some hon. members: Oh, oh!
Mr. André Bellavance: I understand what goes on in Quebec is not of much interest to the Conservative Party, but I think that it is very important to talk about these things.
Another major factor in the failures was the negative reaction by competitors, who used every possible means to bring those systems down. Based on experience in Quebec, we have very good reason to assume that freedom of choice when it comes to marketing grain in the Prairies will eventually lead to the elimination of the Canadian Wheat Board and will have negative consequences for producers, including lower prices.
This information comes from the Union des producteurs agricoles. I did not make it up. We did experiments and experienced failures ourselves in the 1990s relating to the same thing as what the Conservative government now wants to put in place for the Canadian Wheat Board. We should look to the example of what happened in Quebec and not repeat this kind of mistake. It is reasonable to experiment, but it is also reasonable to learn from our mistakes.
So in the UPA’s view, the Canadian Wheat Board provides producers with market income that is higher and fairer. It guarantees stable and predictable supply in the agri-food industry. The UPA is also of the view that we cannot allow the Conservative government to destroy such an influential institution, one that creates 14,700 direct and indirect jobs, with spinoffs amounting to $852 million a year.
I urge everyone in this House to vote for the motion presented by the member for .
:
Mr. Speaker, I will be sharing my time with the hon. member for
First, I want to say that I think this gag order is an insult to farmers. The last time this happened was to stop selling wheat to the former Soviet Union during the war in Afghanistan. By the way, we know that the mighty Soviet machine was not able to conquer Afghanistan. There may be a lesson for us.
My point and the point of my party is simple. Let the farmers decide the fate of the Canadian Wheat Board. Currently, there are democratic elections in place in the Canadian Wheat Board. Instead of letting them play out as they should, there seems to be interference by the minister.
Once the director elections are finished, there should be a plebiscite. Let us end this debate once and for all. Everybody says the government represents the farmers and thinks it knows what it is doing. Let us have a plebiscite. In a cooperative spirit, the minister could work with the Canadian Wheat Board in formulating a question and this would be the democratic process. It is as simple as that.
A small minority of those who want to go it alone should not be able to destroy the future of the majority of farmers. That is the question today. That is the question we are facing.
The is about to deliver what an American based WTO challenge and countervail action could not accomplish. In April 2002, following a meeting with top U.S. trade officials, North Dakota wheat commissioner chair Maynard Satrom assured growers that the common objective of both the U.S. government and the U.S. wheat producers is the ultimate reform of the monopolistic Canadian Wheat Board.
The U.S. department of agriculture stated that American growers should be able to freely compete with Canadian grain for Canadian rail shipments. The USDA has called for a fundamental reform of organizations such as the Canadian Wheat Board to permanently assure that U.S. producers are treated fairly in the world market.
Our Canadian government is following along with the demands of the American government and American multinational corporations. Dual marketing is a whistle stop. Multinational competitors with deep pockets will bid away grain into the short term and the Canadian Wheat Board will eventually cease to exist.
Once again, farm economists say that grower premiums that are $30 to $45 per tonne will disappear forever. There will be a domino effect. The producer cars will probably diminish or disappear. We have the whole problem of the Port of Churchill in Manitoba.
[Translation]
Mr. Speaker, the government is doing its best to take marketing powers away from western producers. It wants to set up a dual marketing system under which the Canadian Wheat Board would be but one exporter of western Canada's wheat and barley. As we know, Canada's competition on the world market, including the United States, has long been fighting to reduce our producers' marketing powers.
There is a connection between two Canadian programs, namely the Canadian Wheat Board and supply management. Both are threatened under the WTO. If we give up our Canadian Wheat Board single desk seller, then supply management will also disappear. Multinationals, through the Conservative government, are very close to achieving their goal.
The government is under the impression that it was given a mandate to fully pursue free market initiatives on January 23. It does not feel that consulting producers unquestionably means holding a referendum. We are faced with the dismantling of the Canadian Wheat Board.
It is interesting to note that, a few years ago, the Prime Minister publicly supported producers who had circumvented the law by exporting wheat without going through the Canadian Wheat Board. The government wants to take powers away from producers and give them to multinationals.
[English]
The attack on the Canadian Wheat Board is another example of the heavy handed approach by the so-called new government to ram its agenda through, just as we have seen in the softwood lumber agreement, for example. Yet, we know that 75% of those people who use the Canadian Wheat Board would like to have a plebiscite, so the question is, is this ideologically driven?
I am receiving letters from farmers, as are all MPs, stating that they want the Wheat Board to continue. My hope then is that the Conservative MPs who represent the farmers will listen to them. My message to the farmers is: if they are not happy, they should talk to their MPs, put them on the spot, and ensure that they do exactly what the farmers want because I have a feeling the government is not doing that at the present time.
:
Mr. Speaker, I rise today to take part in the debate. I represent the downtown area of Winnipeg, which is home to the headquarters of the Canadian Wheat Board. Also coming from a prairie province that depends so much on agriculture and farm income, I felt it was necessary for me to enter the debate.
Let me start by simply saying there is no business case for abolishing the Canadian Wheat Board. It is pure ideological madness. It is an ideological crusade that the Conservative Party has undertaken, really to do the Americans' dirty work for them.
The Wheat Board has been the subject of 11 separate U.S. trade attacks. The board has won every one, something the Americans could not do. Even before the ink was dry in the 1989 free trade agreement, they were gunning for the Canadian Wheat Board. They made no bones about it whatsoever. In fact, the Americans wanted the Wheat Board out of the way. It is a trade irritant just as the softwood lumber deal is a trade irritant. The new Conservative government is dutifully falling in line to do the dirty work of the Americans.
Many people, if they are not in the industry, do not understand how the Wheat Board works. The reason a dual market will not work and the reason it will be the death rattle of the Canadian Wheat Board is very simple. If the open market is higher than the initial payment, the board will not get any deliveries. However, if the initial payment is higher than the market, then it gets all these deliveries, but it has to sell them at a loss. That is why this dual marketing will not work.
I respectfully ask members to think back to the voluntary central selling agency run by the pools in the 1920s and to the voluntary Canadian Wheat Board, which was run in 1935. Both of them had spectacular bankruptcies. They were the greatest business bankruptcies in Canadian history for that simple reason. A voluntary Canadian Wheat Board do not work nor will it survive.
We have had letters from farmers and I want to read one. I know people have questioned the veracity of these letters. These are letters written by individual farmers and signed by them. This one is from a farmer in Richmond, Saskatchewan. He challenges the statements from our current Minister of Agriculture and from the Parliamentary Secretary. He says, “The statement that the majority of farmers support the concept of dual marketing is false”.
I believe it is false as well. I believe if it was put to a plebiscite, if it was put to a fair vote, we would be able to verify that.
He goes on to say, “The statement that the present government has a mandate to end the monopoly of the Canadian Wheat Board is false and the statement that it's not about economics, it's about freedom, which I have heard the minister and others say, is just plain stupid”. That is according to him. I would not say that. “In this case, freedom is just another word for nothing left to lose. Leave the Canadian Wheat Board alone. It's the only support left for western Canadian farmers”.
That brings me to the point of this gag order. The minister says that I called him a Fascist for denying them the right to vote and then imposing this gag order. I did not call the minister a Fascist. I said it was like Fascism to deny them democracy. I said that Mussolini would be proud the way the government introduced this gag order over Canadian farmers because it is an unfair fight. It is an issue of natural justice.
We have misinformation abounding or information with which we disagree. The Canadian Wheat Board claims to have other evidence to the contrary, but it is not allowed to bring it into this public debate about the future of the Wheat Board. How can that be seen to be fair?
Let mention a couple of the facts that we would enter, and I am sure the Wheat Board would make public if it were allowed to. One study found that in 2001 farmers got about $10 per tonne more under single desk selling than they would have otherwise received. That is a study by a Dr. Richard Gray. I would be happy to table that.
Another study, the Kraft-Furtan study in 1997, showed the benefit from single desk selling at $265 million per year. Again, we would like to promote those figures as opposed to the figures we heard from the parliamentary secretary, who said that farmers lost up to $400 million a year by single desk selling, I believe.
Another earlier study by a Dr. Andrew Schmitz showed that marketing through the Wheat Board increased the returns of barley producers by $72 million a year.
The Conservative government would have to admit that there is a body of evidence on the contrary of the position it is tabling. How is it anybody's best interest to deny the Wheat Board what I would see the legitimate right to make its case and to have its argument known. It is a bit like a boxing match where we have one guy with his hands tied behind his back. In nobody's mind could that be viewed as even remotely fair.
There are things that we could challenge about the parliamentary secretary's comments. I have a quote from Hansard where he said, “In fact 60% to 80% of the farmers do support change, I am not sure why 20% to 30% of the farmers should hold the other 70% captive”.
One cannot get away with that kind of thing without being challenged. If the Canadian Wheat Board is being denied a voice, we will be the voice for it. I serve notice right here that we will be dedicating our time, between now and whenever the government plans for the axe to fall, to make the case for the Canadian Wheat Board and to fight the government if it intends to tear down this great prairie institution.
Nobody should want to go back to the bad old days, least of all a party that says that it represents the grassroots farmers. I used to deliver papers in the rich part of Winnipeg when I was a kid. Virtually every one of those mansions was built by the robber barons, the grain barons, who used to systematically rip off the prairie farmer. Those mansions were built on the backs of prairie farmers who could not get a fair price for grain, so they started to act collectively and cooperatively.
Maybe that is what the Conservative Party has in opposition, that it is ideologically opposed to acting collectively. It is against public auto insurance, unions and that kind of action.
Farmers banded together to protect their own interests, and that is a good thing. It was a survival thing and an issue of basic fairness. Since 1943, when the Wheat Board was founded and given it its single desk monopoly, they could get a fair price, compete on the world market and get the prices because its was a superior product.
Also, because I come from the province of Manitoba, the future of the Port of Churchill is in serious jeopardy because the grain will be sold south. It will be mixed with the inferior American product. We will lose the commercial identity of our superior Canadian wheat product, and that will be to our lasting detriment as well.
I am happy the minister stayed to listen to the speeches. I beg the government to reconsider this idea. There are consequences that go far beyond living up to the campaign promise that Conservatives made to their base. Clearly, there is a legitimate pocket of farmers who do want the Wheat Board dismantled, or at least a dual marketing system. However, it is a more complex issue than that.
We remember the bad old days on the Prairies, when an individual farmer had virtually no bargaining strength in terms of trying to sell product to the Paterson's and the Cargill's and whomever would be dominating and controlling these things. Maybe Cargill is a bad example.
In our experience, the Canadian Wheat Board is the best opportunity to get a fair price for the product. I cannot argue enough that we need to defend this great prairie institution for all those compelling reasons.
Let me go back to the directive that the minister put forward, what we are calling a gag order.