Bill C-18 (Historical)

Marketing Freedom for Grain Farmers Act

An Act to reorganize the Canadian Wheat Board and to make consequential and related amendments to certain Acts

Part 1 of this enactment amends the Canadian Wheat Board Act to change the governance structure of the Canadian Wheat Board and to make other changes in preparation for the implementation of Parts 2 and 3. Part 2 replaces the Canadian Wheat Board Act with a new Act that continues the Canadian Wheat Board and charges it with the marketing of grain through voluntary pooling. Part 3 provides for the possible continuation of the Board under other federal legislation, while Part 4 provides for its winding up if no such continuation occurs. Finally, Part 5 provides for the repeal of the new Act enacted by Part 2.

Marketing Freedom for Grain Farmers Act

[Ted Menzies, Conservative, Macleod, AB]

Mr. Speaker, I realize that a number of members have not been in the House very long, but we have had many discussions about plebiscites. We have had a barley plebiscite. We have had all sorts of plebiscites, and every time a credible question has been asked, the outcome has been that farmers in western Canada want the same freedom as farmers in the rest of Canada. It is that simple.

We also had a plebiscite on May 2. I believe it was a resounding success. We campaigned on freedom. What better thing to campaign on than freedom? We won a majority based on allowing farmers the same freedoms as their friends and relatives in the rest of this country.

[David Wilks, Conservative, Kootenay—Columbia, BC]

Mr. Speaker, my father-in-law switched from grain to beef in the 1990s because he could not make a living on grain.

Once wheat is able to be marketed on the open system, does the member believe there will be an opportunity for families to hand the farms down? I have seen that some people just cannot afford to keep their farm, so they sell it because they are not able to hand it down. Is there an opportunity here for someone like the member to hand that farm down if he or she should choose to do so?

[Ted Menzies, Conservative, Macleod, AB]

Mr. Speaker, I thank my colleague to the west, who is, by the way, still within the Wheat Board's jurisdiction. Just in case he might be thinking about growing wheat and selling it somewhere else before August 1 of next year, I would caution him about that.

In response, this would absolutely be a benefit to what we hear spoken about in this chamber many times, which is the small family farm. Many organic producers decided that was the way for their niche operations to survive. It is not growing broad acre crops on broad acre farms, but niche organic crops.

The Canadian Wheat Board soon stepped in and said it would have none of that. It started marketing the crops for the organic producers who had already set up their own markets. It charged them a premium to sell to the same buyers they were selling to before. The middleman won; the small farmer lost, because of the monopoly powers of the board.

[François Pilon, NDP, Laval—Les Îles, QC]

Mr. Speaker, I rise in the House today to speak against Bill C-18, which would dismantle the Canadian Wheat Board. This bill is a direct attack on family farmers and is a direct affront to the very principle of democracy. On September 12, nearly 60% of Canadian farmers voted in favour of maintaining the Canadian Wheat Board. However, the Conservatives refuse to hold a plebiscite on dismantling the board. The government plans to destroy the single desk against the wishes of Canadian farmers. This would not be the first time that the Conservatives claimed to have received a strong mandate from Canadians with only 40% support.

The Canadian Wheat Board is not funded by Canadian taxpayers. So why are the Conservatives rushing to destroy this organization? The answer is simple. If the Canadian Wheat Board no longer holds the balance of power when negotiating with its economic partners, Canadian farmers will be left on their own, will no longer have any bargaining power and will be forced to sell their wheat and barley at lower prices. That will have disastrous effects.

First of all, Canadian producers will be forced to sell their products at lower prices. Lower selling prices also means lower profit margins. And God knows that during a recession and tough economic times, farmers who are already working in a sector that requires very large financial investments did not need another blow like this.

Furthermore, the Canadian Wheat Board's bargaining power has enabled Canada to maintain some independence for Canadian farmers and the Canadian agri-food industry with respect to the major world players. With the dismantling of the board, this independence will disappear and big American grain companies will be free to move their operations to Canada, which will gradually kill the economic independence of Canada's agri-food industry.

I have heard the Conservatives say that we are trying to scare farmers and that the expected effects are false. Well, I have a little surprise, my friends. By way of comparison, let us look at what happened in Australia after a board similar to the Canadian Wheat Board was dismantled.

Before the Australian Wheat Board was dismantled, Australian wheat could command $99 per tonne over American wheat. After the Australian Wheat Board was dismantled, things went awry. In fact, in December 2008, the price of Australian wheat dropped to $27 per tonne below U.S. wheat. In just three years, the 40,000 farmers who were members of the Australian Wheat Board all became customers of Cargill, one of the world's largest agribusiness corporations, which is privately owned and based in the United States. Once again, it seems as though this government is clearing the way for large American corporations to the economic disadvantage of its own people and voters. Once again, the Conservatives are putting the interests of the private sector ahead of the public interest of Canadians.

Now, here is what we are proposing for Canadian farmers.

We believe in respecting democracy. As a result, we believe that any decision about the Wheat Board must be made by the farmers, since they are the ones who manage this organization. Since 62% of farmers voted against dismantling the Canadian Wheat Board, we believe that the government should respect that decision or, at the very least, hold an official government plebiscite on the issue and, as a result, withdraw its bill.

What do members of the Canadian Wheat Board think of the possible dismantling of their organization? While the Conservatives claim that farmers are overjoyed at this prospect, Allen Orberg, a farmer and chair of the Canadian Wheat Board's board of directors, thinks that this government does not have a plan. In his opinion, the government has done no analysis and its approach is based solely on its blind commitment to marketing freedom. He added that the government's reckless approach will throw Canada's grain industry into disarray, jeopardize a $5 billion a year export sector and shift money from the pockets of Canadian farmers into the hands of American corporations.

What economic impact will this dismantling have on the overall Canadian population? First, Canada risks losing the money brought in through board premiums, which can represent between $200 million and $500 million per year. Second, as I said earlier, being a farmer today means considerable investment, be it in machinery or basic farm upkeep. Dismantling the Canadian Wheat Board will have a domino effect. By selling their product at a lower price, the farmers' profit margin will decrease. Less profit also means less money to pack back loans. That means that, at the end of the day, it is the Canadian taxpayers who will pay because the government will have to increase subsidies for farmers so that they can survive and make a living.

Dismantling the Canadian Wheat Board means that farmers will see their revenues drop considerably. The government will then have to pick the pockets of Canadian taxpayers to fix the disaster it will have created.

To conclude, I implore the government to rethink its decision, to realize that it is going down the wrong path and to understand that it is putting farmers and the Canadian economy at risk. Therefore, it should withdraw Bill C-18.

[Lynne Yelich, Conservative, Minister of State (Western Economic Diversification)]

Mr. Speaker, the member spoke about what corporations the United States will move into Canada but he missed the point about the new pasta plant that was just announced in Regina, Saskatchewan. It will be the first one in western Canada. The plant is owned by a very successful person from Saskatchewan who wants to create jobs in Saskatchewan. This business will be able to buy its grains directly from the farmer. The farmers are very excited about this new freedom to sell directly to the pasta plant.

How does that square up with why we in western Canada cannot have the same privilege as those in eastern Canada, not having to ship our grain down here to be processed, as before with pasta and many of the other grains that come down here and then we needed to have it shipped back to buy it as consumers? Why are we not afforded the same luxuries as eastern Canada?

[François Pilon, NDP, Laval—Les Îles, QC]

Mr. Speaker, I want to thank the hon. member for her question.

We are not saying they are not entitled to the same rights as others. Since the beginning we have been asking the government to put it to a vote. It is very simple. The government is saying that the Wheat Board was created without anyone asking for opinions and that it will be dismantled without anyone asking for opinions. The government should not repeat past mistakes.

[Wayne Easter, Liberal, Malpeque, PE]

Mr. Speaker, spinning off the question from the minister, it is not as bad as the government member tries to make us believe. As I mentioned earlier, there is far greater processing capacity for malting barley per capita, which came into place in the last number of years, three times as many in Canada as in the United States, whose producers have the freedom to market wherever they want. Wheat milling capacity in western Canada has grown by 11.8% in the last decade, compared to 9% in the northern tiers in the United States. Therefore, is not as bad as the member makes us believe.

However, there is an important question here. The government is basically saying that producers should have the freedom to market when, where and how they want, which is what, I believe, the minister said it earlier.

Does the member not believe that if that is the policy that is approached, it would completely undermine the supply management system in this country?

[François Pilon, NDP, Laval—Les Îles, QC]

Mr. Speaker, I want to thank the hon. member for his question. We all know full well that with that type of market the Americans, who have the purchasing power, will come buy our grain and it is truly the Americans who will benefit, not our farmers here in Canada.

[Jim Hillyer, Conservative, Lethbridge, AB]

Mr. Speaker, should we have a referendum on same sex marriage or a referendum on whether postal workers should be allowed to form a union?

Should we have a referendum on the privatization of the CBC and on what kind of programming should be allowed on TV, or should individuals choose for themselves what not to watch on TV, who to marry and how to market their grain?

[François Pilon, NDP, Laval—Les Îles, QC]

Mr. Speaker, that is a very odd question because I do not believe that in all those things the hon. member listed, there is a law saying that before the Wheat Board is dismantled or before we do anything with regard to same sex marriage, there should be a referendum. However, in the rules that governed the creation of the Canadian Wheat Board, it clearly states that a referendum has to be held before it can be dismantled.

[Blake Richards, Conservative, Wild Rose, AB]

Mr. Speaker, our government's top priority is the economy, in which the agriculture industry plays a vital role. Canadian farmers feed the world and they deserve the freedom to make their own business decisions. We believe that all Canadian farmers should be able to position their businesses to capture the marketing opportunities that are open to them.

Nine years ago, almost to this very day, Noel Hyslip was hauled off to jail wearing leg irons and handcuffs in front of his wife, three kids and parents. He and 12 other Alberta farmers were sentenced to 45 days in the Lethbridge jail. Their crime was driving trucks full of their own wheat over the border into the United States. These farmers were detained, fined and jailed for selling their own wheat outside the Canadian Wheat Board. Yes, this is Canada. I know it is hard to imagine that kind of thing could happen here. However, these pioneers have no regrets about the actions they took and the sacrifices they made.

Mr. Hyslip was recently quoted as saying:

I'm proud of that day and the sacrifice we all made.

Going to jail to free western farmers was definitely worth it. It frustrates me that almost one decade has passed since then. It's hard to believe such a law still exists in Canada.

These farmers are all looking forward to the day when all farmers in western Canada have the legal right to market their wheat and barley wherever and however they wish. This bill would enshrine that right by allowing western farmers to market their own wheat and barley on their own or through a voluntary pool.

The 68-year-old Canadian Wheat Board monopoly is yesterday's solution to yesterday's problem. Farmers like Noel Hyslip and thousands of others across the Prairies are focused on tomorrow, not yesterday. They are ambitious, entrepreneurial, successfully market their other crops and they need new solutions, not the status quo. More than that, our economy needs it. As we recently saw with the launching of the pasta plant in Regina, marketing freedom will unlock new value-added investment, new jobs and new growth for Canada's economy.

Business people, the economic drivers of our economy, agree on the need for an end to the single desk marketing system. At its annual meeting last year, the membership of the Canadian Chamber of Commerce, a network representing some 192,000 businesses of all sizes, in all sectors of the economy and in all regions of the country, approved a resolution that reiterated its support for a voluntary Canadian wheat board. It was not the first time it had done so. This most recent resolution was an update of the group's position from 2007.

These are businessmen and women from across Canada, job creators, who have the interest of a strong national economy at heart. What are they calling for? They are calling for the same thing wanted by western farmers, who are small and medium-sized businesses in their own right. They want a release from under the thumb of a monopoly and the freedom to shop their product to the highest bidder for the best price. This is what the Chamber of Commerce resolution had to say about the Wheat Board:

—[it] restricts (value-added) investment in wheat and barley, significantly diminishing the ability of farmers and industry to respond to market demands and earn a premium return in recognition of the innovation provided, including innovation in value-added processing.

It is pretty clear that top business people, the job creators that all members' constituents rely on for employment, think that the CWB is anti-business. It went on to say:

Removal of the single desk in other countries...“has led to new investment and growth in value-added activities, benefiting all members of wheat and barley value chains from consumers to processors to farmers.”

Western Canadian grain farmers want the same marketing freedom and opportunities as other farmers in Canada and around the world. They want the freedom to make their own business decisions, whether it is to market individually or through a voluntary pooling entity. Disappointingly, opponents to change are taking an all-or-nothing approach: single desk or death.

If opposition members will not listen to western grain farmers, will they at least listen to the businesspeople from their own communities who, through the Canadian Chamber of Commerce, are saying that their insistence on robbing farmers of marketing choice is an anti-business, anti-prosperity attitude?

The year of the entrepreneur is 2011. I hope the opposition members will get with the times and support marketing choice and freedom and opportunity for all Canadian entrepreneurs, including western grain farmers.

Farmers have told the CWB and us that there is a better way to give entrepreneurial farmers like Noel Hyslip the boost their business needs to compete and a better way for those farmers who prefer to market their wheat through a voluntary pool. Our government is offering an inclusive and progressive way forward that would offer western Canadian wheat and barley farmers both opportunity and security.

There is no doubt that co-operatives helped to build agriculture across Canada and that they continue to play a role today in a very tough and competitive global marketplace. However, these organizations are where farmers commit their production investment because they choose to, not because they are forced to. Co-operative and compulsion cannot go together. Competition and choice will breathe new life into Canada's grain industry.

Canada's grain industry has already achieved outstanding results, but we know it can do every better.

Over the past 25 years, the share of area seeded by CWB grains in western Canada decreased from about three-quarters to one-half and the Canadian market share in the world barley export markets has declined by more than 65%. Meanwhile the share of area seeded to canola almost tripled, oats acreage in Manitoba grew by over one-third and the pulse industry grew to $2 billion in export sales.

We know that there is room for growth in our wheat and barley industry. The time is right for action. Canada's farmers grow world-class food in a global marketplace that is ripe with opportunity. We need to unfetter our farmers so they can continue to drive our economy and feed the world.

Everyday Canadians also see the injustice of making western farmers beholden to a Wheat Board monopoly.

In a recent letter, Henry and Erna Goerzen, constituents of mine from Didsbury, wrote, “We heartily support you and our Conservative Government in the legislation that will give choice for Western grain farmers to market their grain themselves or to sell through the Wheat Board. It is a choice that has been denied to our farmers for far too long. We wish the legislation may be approved very soon”.

However, the last word goes to farmers themselves.

Dan Jorsvick, a farmer near Olds, sent me a letter that said, “I would like to clearly express my support for the initiative to remove the CWB. Like many farmers, we had registered our vote regarding the CWB years ago, with our decision to not apply for their “permit book” and to not “market” our grain through their organization. We have developed the skills to market our grain to domestic feed users and I hope we have the opportunity to apply these skills to explore markets beyond our borders”.

David and Ann Smith made a similar point, when they wrote, “We urge you and your colleagues and our Majority Conservative Government, to make every effort to bring about the much needed changes in order to provide a more equitable grain marketing system for Western Canada. It must be realized that the younger generation of farmers are very proficient businessmen and women, with many options available to them, plus all the modern technology at hand to carry out their own marketing choices”.

I will end with an inspiring letter from Amy Hewson, a young farmer who farms with her husband southeast of Saskatchewan, “My husband and I are expecting a baby in January and we're both very excited to know that this child will grow up in a country where it’s not a crime for his parents to sell their own wheat and barley”.

We need to ensure that the freedom fighters did not go to prison in vain and we owe it to the next generation of farmers who will put food on our tables to get this job done.

Our government is committed to giving every western Canadian grain farmer the marketing freedom they want and deserve. When passed, this legislation will do just that.

[Françoise Boivin, NDP, Gatineau, QC]

Mr. Speaker, that is all very interesting. I would like to ask the following question: what about the 38,261 farmers who participated in the vote organized by the Canadian Wheat Board? I guess their votes do not count.

[Blake Richards, Conservative, Wild Rose, AB]

Mr. Speaker, I would like to ask the hon. member a question in return. The voices of all the farmers throughout western Canada who voted for our Conservative majority government to be in place to do just this, to give them the freedom of choice to market their own wheat and their own barley, do those voices not count? Because they certainly should.

This is a democratic country and people have a right to make their own choices about how they market their products and the fruits of their labour. All the bill asks us to do is to give farmers the choice that all other businesses in our country have, the choice to take the products that they have created with their hands and from their innovation and to sell it however and to whomever they choose. That is all the legislation seeks to do. What we are asking for our western grain farmers is a very basic right that all businesses should have.

[Wayne Easter, Liberal, Malpeque, PE]

Mr. Speaker, if the member for Wild Rose believes what he said in his comment then let us put it to the test. Is there anyone in the country who actually believes that the only reason anybody voted for the Conservative Party in western Canada was because of the Canadian Wheat Board? Is that what he is trying to imply in the House?

I ask the member to put it to the test. Section 47.1 under the legislation says we ought to that. The Wheat Board says that it has 62% support on its plebiscite. Why will the Conservatives not put it to the test? Why are they taking the voice of western farmers, which was granted to them by law, away from them and not allowing them the choice to tell us their view? If they voted for doing away with the Wheat Board single desk, we would support it.

Second, does the member really believe that if thousands of trucks roll across the U.S. border, the 49th parallel, that the U.S. is not going to respond? People broke the law, they went across the international—

[The Acting Speaker, Conservative, Bruce Stanton]

Order, please. We need some time for the hon. member to respond.

The hon. member for Wild Rose.