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

[Niki Ashton, NDP, Churchill, MB]

Mr. Speaker, today Canadians are witnessing the anti-democratic, ideological agenda of the Conservative government.

Western Canadians are today witnessing a government take a position without listening to the very voices of the people they claim to represent. Today many Canadians will realize the way in which the federal government does not represent us and why it is time to talk about the need to have real representation about the real issues that matter to Canadians.

I want to begin by responding to the allegations made in the House these last few days that have involved my name. I am very disappointed by the allegations made by the member of Regina—Lumsden—Lake Centre and the Chief Government Whip.

The government whip approached me last week after a disruption in the gallery and accused me of organizing it. I made it clear that this was not the case. In Parliament we are all hon. members and the acceptance of the word of a member of Parliament is fundamental to the functioning of the House.

Instead of accepting my word as a member of the House, the Chief Government Whip approached me in this very Chamber and indicated to me the phrase “you will get attacked”. He went on to repeat the fictional story that he and his colleagues shared in this House.

I want to make it clear that I provided gallery passes to a group of western farmers who support the Wheat Board. I provide passes, like so many members of Parliament, to people who visit their House of Commons. I had no knowledge there would be a disruption. For the record, that member of the public who protested in this gallery just hours later apologized to me and noted that I had no knowledge of his intentions and certainly had no part in organizing.

The government members, instead, were eager to make unfounded accusations and attempts to intimidate me. This attitude is not fitting for a government that was elected to represent Canadians. The House operates on the basis of honouring members, of honouring the word of members and of honouring the fact that we have been elected to represent Canadians.

I believe the whip should withdraw his statement and apologize to the House. This attitude is a reflection of the government's contempt for anyone who disagrees with them.

I want to make one thing clear. I will not be intimidated by members opposite. I know they have a difficulty with the fact that I represent a rural western Canadian riding. I have news for them. If they continue down this path of arrogance, ideology and contempt for the voices of western Canadians, they will see lot more New Democratic Party members of Parliament representing western Canada.

The lessons of the government's desire to pursue its extreme ideological agenda on Bill C-18 and dismantling the Canadian Wheat Board is a reflection of patterns we have seen in history before. Might I reference the Mulroney Conservatives who after taking western Canada for granted time and time again were rewarded by being re-elected with only two seats in the House of Commons, and none of them were from western Canada.

That process led to the beginning of the social movement and a political movement in western Canada known as the Reform Party. Many of those members of Parliament came out of that movement. Some have since retired, some are still, today, here. Those people came out of a movement that spoke about democracy, that talked about listening to the grassroots, that talked about respecting the democratic voice of people across western Canada. They talked about the west wanting in and people from western Canada wanting to be heard.

These very same people, these same members of Parliament, have today denied western Canadian farmers the right to vote. Along with that, they have denied western Canadians--the people who live across the prairie provinces and whose livelihoods depend on the work of the Canadian Wheat Board--the ability to speak to oppose them.

The Conservatives talked about having campaigned in the election to dismantle the Wheat Board. For many of our constituencies, that statement is completely and utterly false. They buried it in a platform, and we have heard from people across the Prairies that nowhere was it actually talked about in debates, in campaign events or in the pamphlets that they handed out during the election.

I can speak to the fact that in Churchill the Conservative candidate, who was based in the community that stands to lose the most directly from the loss of the Wheat Board, never once made public reference to the government's plan to dismantle an institution on which so many of the people I represent depend.

We even have the minister's quote in Minnedosa, Manitoba, when he talked about respecting farmers' right to vote. However, days later, after winning a majority government, the government became extremely arrogant and became dismissive of its own commitments during the election campaign. It became so dismissive of the very statements government members had made to western Canadians that we now have it pursuing the exact opposite approach. The government has put forward an agenda and a timeline in this debate that is unprecedented in the way in which it has been able to muzzle any kind of opposition across Canada.

For the last while, I have had a chance to talk a lot about the old politics, the politics of this government, the politics that Canadians are sick and tired of, the politics of hidden agendas. They are tired of hearing one thing during the election and then, upon electing a government, hearing something completely different. Once the Conservatives got a majority, they were willing to steamroll the rights of western Canadians and steamroll anyone in their way who might have a different point of view.

The Conservatives have brought in closure time and time again, and in a most shocking way when it comes to Bill C-18. This is a tool that signifies their complete lack of respect for Canadians' voices, Canadians who have something different to bring to the table, Canadians who simply want to be heard.

Instead of listening, they have managed to keep busy in a number of other ways. They have kept busy by making videos that insult aboriginal people in the statements they make and videos that demean western Canadian producers.

They have sought ways to bury debate. They use public relations stunts and government money for ads in order to take away the important role that Parliament has to debate these very issues. Instead of being up front, they obfuscate and hide the facts that we need to know as we move forward.

On the contingency fund, it is clear that the government is taking the money from farmers and putting it toward its own state-run agency, having lifted the ceiling, instead of giving that money back to farmers.

I want to acknowledge the work of people who were elected to represent western Canadian farmers: Stuart Wells, Bill Woods, Allen Oberg, Cam Goff, Kyle Korneychuk, Rod Flaman, John Sandborn and Bill Toews. The voices of young farmers such as Sid Stevenson and Matt Gell and the voices of the people of Churchill, of the Bay line, of Winnipeg, as well as voices across Manitoba, Saskatchewan, Alberta, and even parts of British Columbia need to be heard in this House. These are the people the government is taking for granted.

The Conservatives should mark our words: as we stand here to bring voice to those very people, to western Canadians and to all Canadians, we are going to make sure that they know that the arrogance, the ideological agenda and the undemocratic approach of this government is unacceptable, and that next time around we will build a government that actually represents Canadians.

[Pierre Jacob, NDP, Brome—Missisquoi, QC]

Mr. Speaker, my colleague from Saint-Lambert has aptly described the many negative repercussions of Bill C-18.

In particular, farmers will be subject to greater risks and uncertainty. Small farms will be impoverished. People on family farms will have to work harder in order to survive. In addition, consumers will pay more for food and the quality of wheat will be lower.

I would like my colleague from Saint-Lambert to explain why the cost of food will increase and the quality of wheat will decrease.

[Sadia Groguhé, NDP, Saint-Lambert, QC]

Mr. Speaker, I thank the member for his question.

I would like to mention that a great deal has been said about freedom and democracy in these debates, but I believe that the terms “freedom” and “democracy” have unfortunately been tarnished by this government. In the bill before us, Bill C-18, there has been no real analysis or consultation of farmers. The government just promotes market freedom, which will definitely throw the grain industry into disarray. That is what will happen with this bill.

[Sadia Groguhé, NDP, Saint-Lambert, QC]

Mr. Speaker, I will share my time with the member for Churchill.

Canadian democracy is falling apart. We need only look at the protests happening across Canada and Quebec to see that this is the case. Bill C-10 is another example. Instead of dialogue, the Conservatives issued a gag order to force the passage of a very controversial bill on safe streets and communities. They are doing the same thing with Bill C-18. I will briefly go over what this bill proposes.

It proposes that we dismantle the Canadian Wheat Board; put an end to the single-desk marketing of wheat and barley; replace the board with an interim structure with voluntary membership; and privatize it or dissolve it completely if, in the coming years, it is not profitable for any private firms. Bill C-18 is a reflection of the neo-liberalism that underlies this government's economic policy.

Representatives of prairie farmers and other independent experts have raised concerns about the repercussions that dismantling the Canadian Wheat Board would have on farming families and on the economy, not only in the Prairies, but also in Canada as a whole, during this period of economic uncertainty. But the Conservative government is obsessed with its own ideology and it refuses to listen and take these concerns into consideration.

The Canadian Wheat Board is an economic structure that has proven its effectiveness and its impact on the prairie economy. Since it sells Canadian farmers' grain products in about 70 countries around the world, there is no doubt that the Canadian Wheat Board contributes to our country's international presence and helps improve the living conditions of the farmers for whom it brings in some $4 billion to $7 billion a year. In other words, it pumps billions of dollars into our economy.

The numbers prove that the Canadian Wheat Board is economically viable. There is absolutely no doubt, and the Conservatives' arguments in favour of dismantling it were ripped apart by speakers before me. The Conservatives are using the failure in Ontario, which withdrew from the single-desk system, to justify dismantling the Canadian Wheat Board. That argument is indefensible. It does not apply to the reality facing farmers in western Canada. To compare the two is specious and even irresponsible.

It is not possible to compare apples to oranges on the grounds that apples and oranges are both fruit. In fact, it was through a democratic process—led by farmers themselves—that Ontario farmers decided to abolish their single desk. Prairie farmers, in contrast, voted to keep the Canadian Wheat Board. Furthermore, the wheat grown by Ontario farmers is used only in pastry, cookies and cakes for local consumption. The wheat grown by prairie farmers is used for bread and pasta for which there is no significant local market.

While Ontario's farmers rely more on grain companies to handle their crops, prairie farmers, on the other hand, count on the board for fair market access for everyone, including those who ship in producer cars.

The Conservatives claim that Bill C-18 will improve farmers' ability to market their wheat and barley by giving them a choice of who to sell their grain to and how to do so. But the reality is quite different: this bill is not compatible with their desires. It removes some freedom of choice from the farmers. At present, the board is controlled, managed and financed by farmers, for farmers.

With Bill C-18, the government will begin to intrude rashly into the board's management, which is the responsibility of the farmers. They do not need the government's help.

We have to wonder whether the Conservatives' desire to dismantle the Canadian Wheat Board is not driven by major grain companies, especially American ones, which are rubbing their hands together at the thought of having free access to Canadian grain.

The Canadian Wheat Board owes its impact to a certain number of parameters that we must remember in order to make an informed decision. Before coming back to the repercussions that dismantling the Canadian Wheat Board will likely have, I should mention that the Canadian Wheat Board manages a supply chain from the farm to the table. The international reputation it enjoys, because of the quality of its constant supply and the quality of the services it provides, is envied by other countries.

It has a flexible and democratic organizational structure. Since it is not a grain corporation, the Canadian Wheat Board, which the government is seeking to dismantle today with Bill C-18, does not have any grain handling infrastructure—such as grain elevators or port terminals—to receive the grain production from the farmers and to load it onto ships. It is not overly staffed either. What is more, it does not run on a very big budget. Its only major asset is, and remains, its mandate, defined by a law authorizing it to sell western Canadian wheat, durum and barley through a single desk.

In light of these many advantages, we are appealing to this government to maintain the Canadian Wheat Board, because abolishing it would be disastrous, not only for the prairie economy, but also for the lives of prairie families, for whom farming is their bread and butter.

In closing, I would like to point out a few of the repercussions I alluded to. First of all, abolishing the Canadian Wheat Board will reduce profits for large-scale farmers. Indeed, since it is the sole seller of western Canadian wheat and barley, the board generates significant premiums for prairie farmers. With a single-desk model, not having competition among suppliers means that prices are not driven down for the same grain buyer.

Second, abolishing the Canadian Wheat Board will jeopardize the funding of activities for any future entity. Indeed, under the Canadian Wheat Board Act, the board cannot keep any profits or own any real assets. As a result, it has no financial base. It will have to acquire a significant financial base in order to prosper in a free market.

Third, abolishing the board will require whoever liquidates it to pay all the costs associated with the liquidation, so that a new entity cannot be forced to take them on. Given that the government—and not farmers—wants to liquidate it, farmers should not have to assume the cost of this government's ill-advised decision.

Fourth, abolishing the board will have negative repercussions on producer car shippers and on short line railways.

This bill is dangerous. It will be disastrous for prairie farmers in these difficult economic times. We believe that any decision on the future of the board should be made by farmers for farmers.

These are some of the reasons why we oppose abolishing the Canadian Wheat Board.

[Brian Storseth, Conservative, Westlock—St. Paul, AB]

Mr. Speaker, I will be splitting my time with the member for Etobicoke—Lakeshore, the member who is also from St. Paul originally. We are proud to have him speak on the Canadian Wheat Board.

I would like to take a couple of minutes from my prepared text to respond to a couple of things that my hon. colleague before me talked about. In fact, there was a report done. It was one of about five that was brought up at the Wheat Board committee that said that western Canadian farmers would actually benefit by approximately $450 million to $628 million a year by gaining marketing freedom. That is not even taking the inefficiencies of the Canadian Wheat Board into account. That is not even talking about more jobs through value-added sectors. That is just talking about money that could potentially be in farmers' pockets. So just because the hon. colleagues across the way choose not to read the reports does not mean that they have not been done.

The other aspect I would like to point out is this is a very serious issue for western Canadian farmers. This is something that my producers in the Westlock—St. Paul region are counting on for August 2012. For hon. colleagues across the way to get up and ramble on about talking points that they use about government crime policy has nothing to do with jobs and money in the pockets of western Canadian farmers. I find that absolutely offensive.

In fact, I am not knowledgeable about a marketing fish board in Newfoundland, but if I were to vote on it in the House of Commons, I would definitely take the time to at least talk to some fishermen from Newfoundland.

I ask my hon. colleagues across the way, and there are going to be many western Canadian farmers here this week, to please take time and talk to them. Talk to them about what they see in opening up the Canadian Wheat Board and allowing farmers to have the option for marketing freedom while still keeping the Wheat Board in place for other farmers who want to use it.

I am honoured to speak to the bill. Our government's top priority is the economy in which the agriculture industry plays a vital role. We believe that all Canadians should be able to position their business to capture the marketing opportunities that are open to them. When passed, this legislation would provide western Canadian farmers with the same freedom and opportunities as other farmers in Canada already enjoy. That is the freedom to market their grain, based on what is the best for their business, to the buyer of their choice.

On October 18 the hon. Minister of Agriculture introduced legislation that aims to give farmers the right to choose how to market their wheat, durum and barley independently or through a voluntary Canadian Wheat Board. The marketing freedom for grain farmers act would give every farmer in western Canada the freedom to choose how to market their grain. Whether that is to a buyer who pays the full price on delivery, or through a pooled offer by the Canadian Wheat Board, our intention is to have this open marketing system in place for August 1, 2012.

However, as soon as the bill receives royal assent, it will allow farmers and grain companies to enter into forward contracts for the purchase or sale of wheat, barley, durum for the execution after August 1, 2012.

As we all know, nothing good ever comes easily. Change brings challenge, but it also brings a wealth of opportunity. Our government is working diligently with industry to make the road to an open market as smooth as possible, so farmers can capture as many of these opportunities as possible.

During our extensive consultations, industry has raised a number of valid issues around the transition process.

Over the summer a working group comprised of experts in the field met with a wide range of industry players. It heard a broad range of advice on how the grain marketing and transportation system could transition from the current CWB-run system to an open market that includes voluntary marketing pools and it released its report in September. The report does an excellent job of addressing the major transitional issues faced by the sector.

The group focused on a broad set of issues affecting the grain handling and transportation system including: access to elevators, rail and ports; access to producer cars and short lines; funding market development and research; price transparency; and tools for price discovery.

On the issue of access to port terminals, the working group examined this issue in some detail. It expects that grain companies will be actively competing for grain volume in an open market. Grain companies need volume and they have gone on record saying that they will offer access to get it.

Grain companies already offer handling services at ports to third parties that do not own elevators or port terminals, many of which are direct competitors.

There will be an adjustment, there is no doubt, but some producer groups are already showing they can compete and add value for farmers by forming alliances and synergies through the chain. For instance, some inland terminals are co-owners of the Alliance Grain Terminal in Vancouver, and others have relationships with line companies.

These commercial relationships provide a win-win situation. They benefit farm members. It is already happening and it will continue to happen under marketing freedom.

On the issue of rail access, our government knows that proper rail service remains absolutely vital to doing business.

That is why the working group recommended that the Minister of Transport, Infrastructure and Communities continue the implementation of the rail freight service review initiatives.

We recently announced the appointment of Jim Dinning to lead a facilitation process to enhance rail freight service. Mr. Dinning brings a depth of experience and expertise in building consensus among industry leaders and government.

I would add that the industry also welcomed this announcement. “We are pleased to see the action plan set in motion”, said David Nobbs, chair of Pulse Canada. Rick White, general manager of the Canadian Canola Growers Association said, “We are very pleased that the Government of Canada has taken steps to implement the first of four key recommendations, and we look forward to working with Mr. Dinning during the facilitation process”.

The facilitation process will bring together shippers, railways and other key players to develop a template for service agreements and a streamlined commercial dispute resolution process. This was one of the key aspects that our shippers asked for when the level of service review was first undertaken.

Once the facilitation process is complete, our government has committed to tabling legislative changes that will give shippers the ability to establish agreements with the railways, promoting more predictable and efficient services.

On the issue of producer cars, the right to producer cars is protected in the Canada Grain Act, and the Canadian Grain Commission allocates these cars to producers. This will not change under the marketing freedom act.

The Canadian Wheat Board monopoly has no bearing on access to producer cars and our government will continue to protect producers' interests.

Under the new rules, producers and short lines will be able to make commercial arrangements with grain companies or the voluntary Canadian Wheat Board to market their grain.

Short line railways are expecting some adjustments as they will have more options of marketing partners for the grain volumes they can attract from producers, but already we are seeing some exciting partnerships. In Saskatchewan, for instance, the province's 12th short line railway was announced just recently.

There is no question that producer cars and short line rail will continue to offer an alternative to those producers who wish to use them.

Marketing choice for western Canadian farmers is not just about keeping a promise to our base, a promise that we have been making for over 10 years to western Canadian farmers. It is about modernizing our grains and oilseeds industries as well as our rail sector, and helping farmers continue to drive our economy.

I come from a part of rural Alberta that has been blessed with some of the hardest working, most entrepreneurial people in all of North America, if not the world. The people of Alberta, but in particular Westlock—St. Paul, despise handouts. In fact, most of the time they just want the government to stay out of their way.

My Grandfather Storseth was a perfect example. He left Norway and was willing to work hard and take some risks to get ahead in Canada. He was a farmer who broke his land with his own hands. He also trapped to help provide a living for his friends and neighbours. It is interesting, even back in the 1950s farmers had to work off-farm to earn a living.

When World War II started, he enlisted, and when his time overseas was finished, he came home to his farm in Fort Assiniboine. He never expected the government to give him a handout, but he did expect the government not to regulate him out of existence, not to tell him to whom he could and could not sell his products.

This is not a unique story. It is the story of many rural Albertans. As I said, we are a hard-working people who know that agriculture has always been the backbone of our economy. When the oil and gas booms come, the agriculture sector is the steady hand that continues to feed our province.

The changes that the Minister of Agriculture and Agri-Food and Minister for the Canadian Wheat Board is making in Bill C-18, the marketing freedom act, will help provide for that marketing freedom and will help provide a strong, stable economy.

[Carol Hughes, NDP, Algoma—Manitoulin—Kapuskasing, ON]

Mr. Speaker, I appreciate the input from my colleague, but as she is well aware, the Canadian Wheat Board is not taxpayer funded and the Conservatives have no mandate to go against the wishes of prairie farmers. Again, this is about the protection of small and medium farms. On that note, considering the government's utter disregard for the results of the September plebiscite, the farmers are also free from having a government that listens to them.

My New Democrat colleagues and I believe that the government should withdraw Bill C-18. We believe that the single desk for wheat and barley is a highly successful institution that plays a vital part in prairie society and the economy. The bill is reckless. It will spell economic hardship for our prairie farmers and communities, especially during these tough economic times.

The member cannot guarantee that these farmers will not lose their farms. The Conservatives cannot guarantee that the price of farmers' grain will not go down. They cannot guarantee that big agriculture will not buy out their farms.

[Tom Lukiwski, Conservative, Regina—Lumsden—Lake Centre, SK]

Mr. Speaker, why does the member for Guelph ignore the fact that farmers are already marketing their own products outside of wheat and barley? Can the member for Guelph stand in his place and tell me the difference between marketing canola, pulses or other oilseeds and wheat and barley?

There is no difference. The ability that farmers have to market their own grain now has improved exponentially over the last 20 years. This is an age of almost instantaneous communication. There is absolutely no difference in a producer's ability to market a canola crop, a cash crop, or to market wheat or barley.

The member talks about protecting farmers. Is it protecting farmers when farmers, like my colleague, the Minister of State for Finance, or my constituents lose hundreds of thousands of dollars because of government restrictions and its refusal to allow farmers to market their own product?

If he truly wants to stand up for the rights of farmers, he should join with us and support Bill C-18 tonight.

[Tom Lukiwski, Conservative, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Mr. Speaker, let me start off by saying hallelujah, marketing freedom is merely hours away.

There have been producers in the country, and many of them are going to be with us tonight, who have been waiting for decades upon decades to achieve the fundamental right of freedom that every other Canadian takes for granted in our great country. However, after years of inactivity and opposition from parties on the left, we have finally come to the point that in less than three hours from now Bill C-18 will pass third reading in the House and will be sent to the Senate to achieve the marketing freedom that so many producers in western Canada have fought for all of their lives.

This will be an historic vote. This will be a celebration of unparalleled heights because we have farmers, and my colleague, the hon. Minister of State for Finance has named many of them, who have fought for years to achieve the same basic rights of freedom that other farmers in other parts of the country and in other parts of the world have taken for granted for years and years.

Unfortunately, the debate on Bill C-18, the debate on marketing freedom, has been jaundiced because there have been so many misrepresentations about what Bill C-18 will do. Instead of trying to get into some technical arguments, I will put the Bill C-18 question the easiest way that any Canadian can understand a bill like this. That is the test of common sense.

Without questions, western Canadian producers are among some of the smartest business people in Canada. If the Canadian Wheat Board were providing all the benefits to farmers that the opposition claims it does, there would be no need for this debate. There would be no need for Bill C-18 because there would not be a farmer in Canada who would want to change the Canadian Wheat Board, if the Wheat Board were doing what all of our opponents have say it does, and that is to provide unparalleled benefits to the farmers.

Unfortunately, western Canadian farmers know better. They know the Canadian Wheat Board does not provide them the benefits that my opponents purport it to do. Quite frankly, it costs farmers money. My colleague, the Minister of State for Finance, gave a couple of examples. Let me also give one.

A constituent of mine, who will be here tonight, about three or four years ago wanted to sell his own barley. At that time, members who have been around the House for awhile will remember, we attempted in 2006 to remove barley from the Canadian Wheat Board. It looked for a time that we would be able to achieve that. My constituent had a price locked in to sell his barley on the open market, but the opposition reared its protectionist head, refused that freedom to market his own barley and cost my constituent $250,000.

I have heard the member for Malpeque and the member for Winnipeg Centre say on many occasions that the Wheat Board is the best thing going for western Canadian farmers, that if the Wheat Board were somehow changed or altered to remove the single desk provisions, the sky would fall and farmers would lose out on great opportunities. The constituent who lost $250,000 will be here tonight. I would invite the member for Malpeque and the member for Winnipeg Centre to engage that constituent of mine in conversation and please, I would love to hear that conversation. I would love to hear how the member for Malpeque would say to my constituent that this was a good thing that happened, that losing a quarter of a million dollars was a good thing because we saved the Canadian Wheat Board. It makes no sense whatsoever and farmers know this intuitively.

We also have evidence, not just anecdotal evidence such as the story that I shared with members here, but we have empirical evidence. We have seen what happens when certain grains are removed from the Canadian Wheat Board.

Over 20 years ago, Charlie Mayer was successful in getting oats removed from the Canadian Wheat Board. What happened? Productivity went up and lo and behold, prices went up. Was there any great hue and cry from oat producers to have oats returned to the Canadian Wheat Board? Absolutely none, because the proof was in the pudding. Their productivity, acreage and prices went up. As a result of their oats not being controlled by the board, they were making more money than they did when they were controlled. There are similar stories with respect to canola, pulses and oilseeds. The benefit to farmers by giving them the ability to sell their own product is immense.

Some may argue, and I will accept their argument, that there are producers out there who want to remain selling through the board. They will have that opportunity. We are not getting rid of the single desk or the Wheat Board completely. We are merely making a voluntary marketing agency.

I hear time and time again misinformation coming from my colleagues opposite. They say that we are getting rid of the Wheat Board. We are not. We are simply turning it into a voluntary mechanism to allow producers to make their own choices. Some may want to continue selling their wheat and barley through the Canadian Wheat Board. They will have the ability to do so. We are simply giving producers the option and allowing them the freedom to make their own choices.

Since when is freedom a dirty word? According to the opposition it apparently is. According to the opposition, giving farmers the freedom to market their own product is something we should not even be discussing. It makes no sense. It certainly does not pass the test of common sense because freedom is inalienable. It is a right of all Canadians.

Do we restrict other manufacturers or other businesses in Canada from selling their product to whom they wish? Outside of some legalities and some sort of health concerns, we do not.

My friend the heckler from Malpeque does not want to hear the truth. He merely wants to settle with the same ideological arguments. He comes from Prince Edward Island. I point out to him, as I have many times in the past, that I have yet to see the potato farmers of P.E.I. clamouring for a potato marketing agency. They never will because they now have the fundamental right as other producers in Canada—

[Alain Giguère, NDP, Marc-Aurèle-Fortin, QC]

Mr. Speaker, we want to talk some more about Bill C-18 and about Canadian institutions; the Canadian Wheat Board is an important one. In Bill C-18, we can clearly see the government's desire to destroy another Canadian institution to the advantage of private corporations, which are very often foreign-owned.

Let us speak clearly about the dangers to all the institutions affected by Bill C-18, because, in destroying the Canadian Wheat Board, the Conservatives are also attacking a whole range of Canadian institutions.

The first of those institutions is democracy, this country's most important value. It is the right of farmers themselves to manage the board that markets the fruits of their labour. It is essential. On this issue, the government offers a very special interpretation of the concept of freedom for farmers, which also involves the existence of the right to vote on the choice of who they want as partners to sell their wheat. The right to a referendum is their most sacred right. But, in fact, they are being denied such a referendum. It was promised to them during the election, but once the election was over, it was obvious that the Conservative government wanted so much to destroy a Canadian institution that it forgot to honour its big promise. The Conservatives wanted people to vote for them on the basis that they would protect, respect and consult farmers. But once they were in power, the only people consulted were foreign corporations. That is typical of the Conservative government—a Conservative government, not a Canadian government.

Second, the Canadian Wheat Board is also a world headquarters, located here in Canada. Decisions that matter to the world are made here in Canada. The Wheat Board has developed its staff and expertise in Canada. The Conservatives would replace it with offices that receive faxes, emails and orders from foreign corporations located elsewhere. We are going to lose a national resource. For the world, it has been an institution whose words were listened to, one that could intervene in global markets and affect prices and market trends around the world. It is being replaced by nothing at all. That is a major impact. The Canadian Wheat Board generated 2,000 jobs in the city of Winnipeg. But the Conservative government has so little respect that it has not even considered what would become of this world headquarters.

The Canadian Wheat Board is also a provider of transportation. It owns railcars. It even owns ships. It is being criticized for owning ships and other means of transport by those who have never considered that having railcars and ships has enabled Canada to reduce transportation costs and therefore get a better price for its wheat. No, they have not done that analysis. They do not want to. They simply say that the Canadian Wheat Board has ships and should not have them. Personally, I do not agree, because I think it should own ships. If the board decides that having ships gives Canadian farmers an economic advantage, then why give up that advantage? To please the competition? To please the Conservative government's limited vision? I say no.

And if other Canadian companies were to follow this example, we could finally have a Canadian merchant marine. But that would be something truly Canadian, and we know that this government is attacking all the important symbols of Canada, except the flag and the Queen's portrait. It is important and creates many jobs but, once again, they are not worried about these issues.

The Port of Churchill was developed to provide access to the north, to give direct access to all world markets through a deep sea port, and to be able to take advantage of the opening of the Northwest Passage through the Arctic. But again, Churchill is Canadian and that is less attractive than revitalizing the railroads in the United States, because they will use this economic sleight of hand to increase their share of transportation.

It is profitable for them, but it may not be for Canada, and certainly not for Churchill. We have invested in Churchill, a Canadian city and port inhabited by Canadians who deserve to be listened to and supported by a government that, unfortunately, is anything but Canadian. That is a major problem.

The issue is not just the Port of Churchill, but also the Port of Vancouver, the seaway and the Port of Thunder Bay—all these institutions and all this infrastructure. The Canadian workers who work in these places are not being listened to or considered. There has not even been a study on the impact this will have on them. All we have heard are slogans and unflattering remarks. All we have seen is the government's demonstration that it does not know what it is doing and that it wants to destroy Canada in a fit of hysterics.

In conclusion, the serious problem with this bill is that its very essence is anti-Canadian. It destroys an expertise and will make our country's institutions obsolete. Our country is vast, it is big and it depends on a number of institutions that helped build it. The Canadian Wheat Board plays an essential role, since it uses Canada's railways and railway cars—Canada's means of transportation. The Canadian Wheat Board helped build this country. It is not the only one, but it is important, just like the CBC, which the government is also trying to destroy. It wants to support Mr. Péladeau. The government is going after another Canadian institution. The government wants to destroy it and replace it with something else. Those things are never Canadian and never defend the interests of Canadians. That is a major problem with this government.

The government systematically shows up with nothing but lies, nothing but fabrications. When we ask the Conservatives for an assessment of how their suggested alternative will affect the economy, they never give anything. It would be nice to have economic studies on the impact this would have on the Port of Churchill, the St. Lawrence Seaway or the Port of Vancouver, but the government never has that. All it has are comments, such as the fact that it gave out $500 for stress leave. What does that change?

With regard to wheat trading by American companies, do you know what premiums, commissions, perks or gifts are given? Do you really believe that these people will trade Canadian wheat because they like us and want to help out Canadians? They are there to make money. The more they can make off us, the happier they will be and the less they will hesitate, especially with a government that is encouraging them, a government that is telling them to take everything and give nothing in return.

That is the problem with this government. It does not defend the interests of Canadians and time and again is nowhere in sight when it comes time to defend Canada. There is nothing Canadian about this Conservative government. When referring to the current Conservative government we cannot call it the Canadian government. The Canadian Wheat Board is a fine example of this.

We could also discuss the impact this will have on co-operatives. It is the same problem, not just with co-operatives, but also with supply markets. The Conservatives consider them to be constraints on free and open trade.

I will conclude by saying that this government, with its anti-Canadian practices and its way of destroying all Canadian institutions, has proven that it has no heart.

[Alex Atamanenko, NDP, British Columbia Southern Interior, BC]

Mr. Speaker, I will be splitting my time with the member for Marc-Aurèle-Fortin.

It is with a great deal of sadness that I rise to speak to Bill C-18 today. Ever since I was elected in 2006, we on this side of the House have done all in our power to prevent this reckless dismantling of farmer control by the Conservatives.

This past weekend, I had the privilege of attending the National Farmers Union convention in London, Ontario. There, I saw many farmers, both young and old, who believe that the government is on a disaster course. In his speech to the delegates, the chairman of the CWB, Allen Oberg, raised a number of interesting issues, such as with the firing of elected directors, the government effectively takes control of this farmer controlled institution. This is obviously a blatant example of the further erosion of farmer influence on agriculture in our country. According to Mr. Oberg, the factors driving the Conservative agenda are, in order of their importance: ideology, industry, U.S. and European farmers, and lastly, the interests of Canadian farmers.

Clearly, the interests of the big corporations and farmers are not the same. The main objective of these companies is to increase profits by increasing the margin made from individual farmers. It is, therefore, difficult to see why this small group of farmers against the single desk does not understand it. They believe that somehow they will be able to compete and obtain a premium price from the very companies that wish to maximize profit.

We must not forget that all profits generated today by the CWB, some $530 million to $655 million annually, go back to farmers. The value of the Canadian Wheat Board mechanism for direct farmer influence on the marketing agency cannot be overstated. The small and medium sized wheat and barley farmers have an agency that provides a level of service that neither single nor even a small co-operative of even the largest wheat and barley farmers in western Canada could emulate.

The CWB has both the trust of the buyer and the seller. It ensures that the product is delivered with consistent quality, on time and to the scale required, while it connects with markets to negotiate the best price and to guarantee farmer payment.

With the loss of the single desk, this capacity will be gone. No longer will the CWB be able to put farmers first against the railway monopolies, provide a strategic advantage to ship from Churchill, protect against WTO harassment and maintain producer cars, fight against GM wheat or maintain a quality reputation in the world.

A very disturbing article appeared in the Leader Post on November 26. It mentioned that, under direct orders from the minister, the CWB's contingency fund was raised from $60 million to $200 million. The author of the article, Bruce Johnstone, said that this did not “have anything to do with putting more money in farmers' pockets”. He went on to say:

In fact, farmers are going to help bankroll the Tories' new voluntary wheat board whether they want to or not.

[The]...government wants to use the contingency fund to cover the costs of operating the new wheat pool company and wind up the old farmer-directed board, including severance payments for CWB officials.

These wind-up costs are estimated to be in the hundreds of millions of dollars, including liability costs of breaking or renegotiating contracts, obligations, pensions, severance payments and other asset purchases. Allen Oberg estimates this to be between $200 million and $400 million. In other words, money will be taken from farmers to advance the government's agenda so it can ram this through.

This does not make any sense and, I would submit, it is morally wrong. Shame on the Prime Minister and shame on his corporate stooges.

We need to look at the cost factor of this massive, tragic transformation. Most analysts predict that grain prices will fall after the elimination of the single desk. Another likely outcome is industry consolidation as large producers squeeze out smaller producers. Large grain companies, such Viterra, Cargill and Bunge, will have a huge new supply of sellers competing to unload their products.

In Australia, with the loss of the single desk, the market share of the Australian wheat board collapsed to 23% of Australian exports, as its reputation for quality is being lost.

The CWB grains account for 95% of shipments through the Port of Churchill. This does not cost the government any money at all but the government is now proposing to provide $5 million of taxpayer money per year for five years to support the shipping of grain.

According to PricewaterhouseCoopers, the CWB contributes a gross output of $94.6 million to the city of Winnipeg. The employment spinoff from the CWB is 2,000 jobs, with a total labour income impact on the city of more than $66 million and, at the provincial level, $140 million.

What is tragic is that there has not been an economic analysis by the Conservatives of this legislation. Based on analysis of the situation on the open market, it can be expected that there will be a reduction of between 16% to 23% on return to farmers and losses in the millions related to payment defaults and arbitrary reductions by grain companies.

Today, the CWB earn farmers between $500 million and $655 million every year. No one will be able to influence any of the big five grain companies that will take over. There will be no pooling of premiums. These will go directly to the company, which does not guarantee payment to farmers for all grains delivered.

In the past, the CWB has also assisted farmers in legal challenges, such as the lawsuit against CP Rail. There is no credible evidence that any single farmer on the prairies has the resources to do any of this. Based on historical precedence, there will be losses in the millions of dollars per year to farmers on demurrage charges, as well as freight rate overcharges. There is also credible evidence that the farmer-loaded producer car option will end. This will results in a direct loss to the farmer of between $1,000 and $1,500 per year.

This is a black day in the history of our country. Whether we are dealing with the issue of crime in this country or the collective interests of farmers, we have a Conservative government, elected with only 27% of the vote of eligible voters, that is determined to transform this country based on an ideology and not on sound analysis or research.

Farmers in western Canada have spent many years building an organization that provides them clout in dealing with their trading partners and transnational corporations at no cost to the taxpayers. In their wisdom, through the election of their directors in the recent plebiscite, they have chosen to retain a strong, collective, united front through a single desk.

What we are seeing here is a battle of ideologies. The co-operative position of strength versus this rugged, every person for himself individualism. Some will survive but many will not. The tragedy is that this ideological agenda will further erode the family farm and the quality of our western Canadian rural life. Unfortunately, there will be no turning back once farmers' rights and powers are taken away.

In closing, we could say that history will be the judge as we see the dismantling, and it is a dismantling. The evidence and the research that I have read and we have seen on this side of the House is that a single desk entity will not be able to survive in today's ruthless market when we have the United States, through the WTO, unsuccessfully challenging the Wheat Board 13 times, but this organization has been able to stand up on behalf of farmers.

We will see in a few years what will happen. Those of us on this side believe that this is not a happy day and it is not as exciting as many on the other side think that it will be.

[Candice Bergen, Conservative, Parliamentary Secretary to the Minister of Public Safety]

Mr. Speaker, I will quickly summarize what I began my speech with and that was the great benefits that the farmers and the producers in my riding and throughout the province of Manitoba will receive once Bill C-18 is passed and they have true marketing freedom in order to market their wheat.

I also couple that with the fact that all of us want to see a successful Canadian Wheat Board, a voluntary Wheat Board. We want to see it maintained and be successful. We think that we can have a successful Wheat Board as well as marketing freedom for Canadian western wheat farmers.

I was also giving some quotes from some of the farmers in my riding, who indicated their support for us giving them freedom and choice. I want to quote Lorne Hulme. He is from Hulme Agra Products, which is in MacGregor, Manitoba, a great little community in my riding. This is what Lorne said:

I should have the right to decide what to do with my grain. Not to be dictated to by people who have little or no involvement in western Canadian agriculture…I strongly encourage you to continue on your path to assure that each farmer in western Canada has the right to market his/her grain as they see fit.

Then he thanks us all for our efforts and encourages us to not give up. I am pleased that we have not given up on this and we will be ensuring marketing freedom for western Canadian farmers.

I did receive correspondence, emails and phone calls, and I had discussions with individuals in my riding who wanted to keep the monopoly. They were concerned that the Wheat Board would fail if a monopoly was not intact. Therefore, about three years ago I met with members of the board of directors from the Canadian Wheat Board in my office. At the time I told these individuals that as leaders they needed to see that progress could not be stopped. Progress can never be stopped in a democratic and free nation.

Individual farmers and farmers groups were asking for marketing freedom, so my message to those members of the board of directors was for us to work together to have a win-win scenario where we can have a viable Wheat Board which is voluntary and also marketing freedom for farmers.

Unfortunately, their message to me was that they got up and walked out of the room and said they would not be party to that, that they did not want to see that happen.

I can say that the opposite was true when I would talk to farmers who wanted freedom. None of them were interested in destroying the board. They still wanted to see the board viable. They just wanted their own freedom and options. Therefore, it is very disappointing to see some of the approaches that have been taken by certain supporters of the monopoly and specifically some of the board members.

Can a board survive without a monopoly? Absolutely. We see it each and every day. We see it in the provinces of Manitoba and Saskatchewan where voluntary pools and marketing boards are successful.

I met last week with members of Peak of the Market, which is a very successful voluntary board, who market their potatoes and other vegetables.

That is the example we need to follow in this debate as well as with respect to the issue of marketing freedom. We need to give individual farmers the ability to market their grain. At the same time, we need to see a voluntary Wheat Board with a new attitude, maybe some new blood, maybe new ideas, and maybe a board of directors who do not want the Wheat Board destroyed, but truly want to see it successful for those farmers who choose to use it.

I urge all members to support the bill.

The House resumed consideration of the motion that Bill C-18, An Act to reorganize the Canadian Wheat Board and to make consequential and related amendments to certain Acts be read the third time and passed, and of the amendment.

Canadian Wheat Board

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, this is a very timely petition given the government introduced Bill C-18, which is going to kill the Canadian Wheat Board. This petition is signed by many prairie farmers calling upon the government to respect the wishes of a majority of farmers. We all know that the majority of prairie grain wheat farmers want to retain the Canadian Wheat Board.

It is with pleasure that I submit this particular petition, which is very timely, and would ask all government members to pay attention to what a majority of grain farmers are saying in the Prairies.

[Merv Tweed, Conservative, Brandon—Souris, MB]

Mr. Speaker, today the Minister of Agriculture was joined by the agriculture ministers of Saskatchewan and Alberta on behalf of the minister from British Columbia to explain the importance of the marketing freedom for grain farmers act to western Canada. For far too long, western Canadian grain farmers have been treated like second-class citizens. That is why we introduced Bill C-18 to give western Canadian grain farmers the right to sell their grain to whomever they choose, including to a voluntary Canadian wheat board.

Could the minister please outline the importance of passing Bill C-18 as quickly as possible?

Marketing Freedom for Grain Farmers Act

[David Anderson, Conservative, Cypress Hills—Grasslands, SK]

Mr. Speaker, today is a great day for western Canadian farmers. This afternoon Bill C-18, the marketing freedom for grain farmers act, will be voted on at third reading in the House. For many of the MPs on this side of the chamber, the fight for freedom has gone on for years, but for farmers in western Canada, their quest has gone on for decades.

More than 60 farmers have paid their own way to Ottawa to witness today's vote. They cannot wait for the day when they can finally market their own grain. They are here because they believe in freedom. Mr. Speaker, through you, we say thank you to them.

Mr. Speaker, through you to those farmers that went to jail because they believe in freedom, we say thank you.

Mr. Speaker, through you to the thousands of farmers across Alberta, Saskatchewan, Manitoba and B.C. who have fought season after season because they believe in freedom, we say thank you.

Mr. Speaker, through you to the young farmers who are so enthused about the freedom in their future, we say thank you.

Mr. Speaker, through you to farmers like Art Mainil, Art Walde and Lionel Byrd, who believed in freedom but who never lived to see this day, we say thank you.

It is their commitment to freedom that gives us the determination to bring real choice to western Canadian farmers.