Marketing Freedom for Grain Farmers Act

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

This bill was last introduced in the 41st Parliament, 1st Session, which ended in September 2013.

Sponsor

Gerry Ritz  Conservative

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill. The Library of Parliament often publishes better independent summaries.

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.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Votes

Nov. 28, 2011 Passed That the Bill be now read a third time and do pass.
Nov. 28, 2011 Failed That the motion be amended by deleting all the words after the word "That" and substituting the following: “this House decline to give third reading to Bill C-18, An Act to reorganize the Canadian Wheat Board and to make consequential and related amendments to certain Acts, because members of the Committee were unable to hear testimony from the primary producers affected by and concerned with the future commercialization of the Canadian Wheat Board”.
Nov. 23, 2011 Passed That Bill C-18, An Act to reorganize the Canadian Wheat Board and to make consequential and related amendments to certain Acts, as amended, be concurred in at report stage.
Nov. 23, 2011 Failed That Bill C-18 be amended by deleting Clause 55.
Nov. 23, 2011 Failed That Bill C-18 be amended by deleting Clause 46.
Nov. 23, 2011 Failed That Bill C-18 be amended by deleting Clause 45.
Nov. 23, 2011 Failed That Bill C-18, in Clause 14, be amended by replacing lines 38 to 42 on page 7 with the following: “(2) All the directors are elected by the producers in accordance with the regulations. The directors must designate, also in accordance with those regulations, a president from among themselves.”
Nov. 23, 2011 Failed That Bill C-18, in Clause 14, be amended by replacing line 36 on page 7 with the following: “9. (1) The board consists of fifteen directors,”
Nov. 23, 2011 Failed That Bill C-18 be amended by deleting Clause 12.
Nov. 23, 2011 Failed That Bill C-18 be amended by deleting Clause 9.
Nov. 23, 2011 Failed That Bill C-18 be amended by deleting Clause 7.
Nov. 23, 2011 Failed That Bill C-18 be amended by deleting Clause 6.
Nov. 23, 2011 Failed That Bill C-18 be amended by deleting Clause 3.
Nov. 23, 2011 Failed That Bill C-18 be amended by deleting Clause 2.
Nov. 23, 2011 Passed That, in relation to Bill C-18, An Act to reorganize the Canadian Wheat Board and to make consequential and related amendments to certain Acts, not more than one further sitting day shall be allotted to the consideration at report stage of the Bill and one sitting day shall be allotted to the consideration at third reading stage of the said Bill; and That, 15 minutes before the expiry of the time provided for Government Orders on the day allotted to the consideration at report stage and on the day allotted to the consideration at third reading stage of the said Bill, any proceedings before the House shall be interrupted, if required for the purpose of this Order, and in turn every question necessary for the disposal of the stage of the Bill then under consideration shall be put forthwith and successively without further debate or amendment.
Oct. 24, 2011 Passed That the Bill be now read a second time and referred to a legislative committee.
Oct. 24, 2011 Failed That the motion be amended by deleting all the words after the word “That” and substituting the following: “this House decline to give second reading to Bill C-18, An Act to reorganize the Canadian Wheat Board and to make consequential and related amendments to certain Acts, because it: ( a) fails to respect the will of the majority of prairie farmers who have expressed a desire to maintain the current composition and structure of the Canadian Wheat Board; (b) ignores the fact that the Canadian Wheat Board is funded, controlled, and directed by Canadian farmers and removes their autonomy to maximize prices and minimize risks in the western wheat and barley market; and (c) makes sweeping decisions on behalf of prairie farmers by eliminating the single-desk system that has provided prairie farmers strength and stability for nearly 70 years”.
Oct. 24, 2011 Failed That the amendment be amended by adding after the words “70 years” the following: “, including specifically the elimination of the Canadian Wheat Board’s role in managing transportation logistics and thereby leaving farmers without an effective voice with respect to rail service levels and freight rates; and ( d) breaches section 47.1 of the Canadian Wheat Board Act”.
Oct. 20, 2011 Passed That, in relation to Bill C-18, An Act to reorganize the Canadian Wheat Board and to make consequential and related amendments to certain Acts, not more than two further sitting days shall be allotted to the consideration at second reading stage of the Bill; and That, 15 minutes before the expiry of the time provided for Government Orders on the second day allotted to the consideration at second reading stage of the said Bill, any proceedings before the House shall be interrupted, if required for the purpose of this Order, and, in turn, every question necessary for the disposal of the said stage of the Bill shall be put forthwith and successively, without further debate or amendment.

Bill C-18--Time Allocation MotionMarketing Freedom for Grain FarmersGovernment Orders

November 23rd, 2011 / 3:50 p.m.
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NDP

Matthew Kellway NDP Beaches—East York, ON

Madam Speaker, were this just about Bill C-18 and this one time, that would be harmful enough to democracy and offensive enough to the democratic tradition of this institution and this country, but when the Liberal government previously had an addiction to closure, the members across the way were most offended by that practice. The Minister of Public Safety said most expressively at the time:

Mr. Speaker, yesterday the Prime Minister of Canada swung an axe across the throat of parliament. While committee members had an opportunity to speak to Bill C-36, members of all parties in parliament lost the ability to express the concerns of Canadians.

If the bill was the right thing to do, why did the Prime Minister do the wrong thing by invoking closure?

I return that question to the government. If it is doing the right thing, why does it keep invoking closure?

Bill C-18--Time Allocation MotionMarketing Freedom for Grain FarmersGovernment Orders

November 23rd, 2011 / 3:45 p.m.
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Liberal

Wayne Easter Liberal Malpeque, PE

Madam Speaker, the whole issue around Bill C-18 is almost unbelievable, the invoking of closure and shutting down debate.

First of all, farmers thought they had the right to a plebiscite under section 47(1). The government denied them that right by bringing in new legislation that basically destroyed the right to a vote. Then it prevented farmers from having a voice by putting closure on the hearings and limiting debate at the legislative committee to five minutes per clause.

That goes against everything we believe in a democracy. People should be able to speak. There should be hearings on the bill in western Canada so farmers can have a voice. In fact, we have a minister that I maintain has violated his oath of office in terms of how he has approached this particular bill.

There are lots of issues here. There are producer cars and short-line rails that the minister has not offered any answers on. How is the grain car allocation going to work to get grain into the ships on time without the Wheat Board?

None of those questions have been answered. This closure motion denies the right to have those issues debated in the House, where they should be debated.

Bill C-18--Time Allocation MotionMarketing Freedom for Grain FarmersGovernment Orders

November 23rd, 2011 / 3:40 p.m.
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NDP

Niki Ashton NDP Churchill, MB

Madam Speaker, I think many Canadians would be shocked to see what the government is doing. Throughout the debate on Bill C-18, in fact there has been a lack of debate and a lack of interest from the government to actually listen to farmers by allowing them to vote.

However, what is most shocking about the Conservatives' motion for closure today is that in the past they themselves, including the Prime Minister, have spoken against the very tactics they are using today to stop debate, muzzle Canadians and prevent hearing the real questions that they have to hear.

If I may, I will quote the Prime Minister. In 2002, he stated:

We have closure today precisely because there is no deadline and there are no plans. Instead of having deadlines, plans and goals, we must insist on moving forward because the government is simply increasingly embarrassed by the state of the debate and it needs to move on.

How applicable is it today?

I represent the people of Churchill. They know that there is no plan for the money that has been committed to their community. We would like to know the details on the jobs that people are afraid of losing. What about farmers who are worried about what is going to happen over the next six months and, when it comes to young farmers, over their lifetimes? Where are the plans? There are none. The government, to boot, is willing to stop Canadians from being heard.

Bill C-18--Time Allocation MotionMarketing Freedom for Grain FarmersGovernment Orders

November 23rd, 2011 / 3:35 p.m.
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York—Simcoe Ontario

Conservative

Peter Van Loan ConservativeLeader of the Government in the House of Commons

moved:

That in relation to Bill C-18, An Act to reorganize the Canadian Wheat Board and to make consequential and related amendments to certain Acts, not more than one further sitting day shall be allotted to the consideration of the report stage and one sitting day shall be allotted to the third reading stage of the said bill and, fifteen minutes before the expiry of the time provided for government business on the day allotted to the consideration of the report stage and on the day allotted to the third reading stage of the said bill, any proceedings before the House shall be interrupted, if required for the purpose of the order, and in turn every question necessary for the disposal of the stage of the bill then under consideration shall be put forthwith and successively without further debate or amendment.

Bill C-18—Notice of Time AllocationMarketing Freedom for Grain Farmers ActGovernment Orders

November 22nd, 2011 / 4:55 p.m.
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York—Simcoe Ontario

Conservative

Peter Van Loan ConservativeLeader of the Government in the House of Commons

Mr. Speaker, we know that Canadian grain farmers have what it takes to succeed in an open market, as demonstrated by the staggering growth in recent years of farmers' production of canola and pulses. In order for farmers to realize the potential they have, we need to provide them with certainty for the upcoming growing season and pass Bill C-18 before we rise for Christmas.

I must advise that an agreement has not been reached under the provisions of Standing Orders 78(1) or 78(2) concerning the proceedings at report stage and third reading of Bill C-18, An Act to reorganize the Canadian Wheat Board and to make consequential and related amendments to certain Acts. Under the provisions of Standing Order 78(3), I give notice that a minister of the Crown will propose at the next sitting a motion to allot a specific number of days or hours for the consideration and disposal of proceedings at those stages.

Marketing Freedom for Grain Farmers ActGovernment Orders

November 18th, 2011 / 1:15 p.m.
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NDP

Claude Gravelle NDP Nickel Belt, ON

Mr. Speaker, I rise today to stand proudly with our farmers and my party in opposition to this very bad bill that would dismantle the Canadian Wheat Board.

In recent weeks, we have seen the powerful symbol of farmers with tape on their mouths to symbolize that the Conservative government is not listening to them. However, we, in this party, along with others, have heard our farmers. Here in Ottawa and across the prairies, farmers are rising to say no to this. It is time to stop this Conservative steamroller that is bent on doing the bidding of the agribusiness giant corporations.

Western farmers are being taken for granted. As my hon. colleagues from Churchill and Winnipeg have said, the recent CWB plebiscite indicated that a majority of farmers are opposed to the Conservative plan. The Conservative arrogance of not supporting those farmers is an indication of the way in which the government is failing to listen to western voices.

Sadly, we see the Conservative arrogance on too many files here in Ottawa and across the country.

I saw the Conservative arrogance when I was in Washington this week. Incredibly, the Conservatives were expressing their outrage that elected members of Parliament in a democratic country were there to tell Americans that there were better alternatives for our economy and the environment than the Keystone project.

I would like to add that, since I was in Washington, I have received numerous emails from Americans thanking us for bringing the Canadian voice, the real Canadian voice, to Washington.

We see the Conservatives' arrogance and hypocrisy in defending provincial rights until provinces tell them that they are wrong about their law and order bills or wrong in destroying the data of the long gun registry.

I would like to use my time here today to speak to what this bill would do to farmers and what would be a fair position to take for our farmers. As an Ontario MP, I will also talk about how illogical it is to use what happened with the wheat farmers in Ontario and what might happen now to the prairie farmers without the CWB.

Bill C-18 proposes to dismantle the farmer controlled and funded Canadian Wheat Board by eliminating the single desk marketing of wheat and barley in Canada. Just like the provinces, when the farmers disagree with the government, they are given no choice whatsoever with respect to their decision on the CWB.

The Conservatives claim that this would benefit farmers by opening the market for them and giving them choice. This flies in the face of all the evidence we have now, with the depressed economy and market debt left behind. Left alone, it would wreak havoc on our farmers. The bill is reckless. It would spell economic hardship for prairie farmers during these tough economic times.

It is beyond me why any government representing Canadians would side with the interests of large American grain companies and assist in eroding prices and eroding market security for our own farmers.

The farmers in western Canada are much like the farmers in my own riding of Nickel Belt. They do not expect or want a free ride. They work very hard. They want to be in their fields farming, with a market that is fair to all and not to only a few. They have a right to expect fairness from the Canadian government.

Canadian farmers want to be heard. They have the right to be listened to.

In a time of economic instability, the federal government is jeopardizing $5 billion in exports and forcing grain farmers into an open market without the Wheat Board's protection.

Bill Gehl, a Saskatchewan farmer and chairperson of the non-partisan farm group, the Canadian Wheat Board Alliance, has said, “local food advocates should be concerned about the end of the Canadian Wheat Board”.

Gehl went on to explain:

Today Canadians can be confident that the grain in all the bread, pasta, and most of the beer they consume is still grown by Canadian farmers. However, if [the Prime Minister] succeeds in killing our Wheat Board, private corporations will then control our basic food stocks and will simply buy the cheapest grain they can from any source.

As an Ontario MP, I want to comment on the argument made by some Conservatives that the Ontario experience with removing the single desk can be applied to western farmers. This is truly illogical. It is comparing apples to oranges. We need to be clear: Ontario wheat farmers ended their single desk through a farmer-led democratic process.

Ontario wheat farmers produce wheat that is used for pastries, cookies and cakes and has a ready market available locally. They produce less than one-tenth of the volume of wheat that prairie farmers produce. Ontario wheat farmers sell about 90% of their product within Canada or to northern U.S.A. They have low transportation distances and costs. Worst of all, Ontario wheat farmers now pay grain companies more to handle their crops.

On the other hand, prairie wheat farmers voted in favour of keeping the CWB and face having it taken away against their will. Prairie wheat farmers produce hard red spring wheat used for bread and durum used for pasta, which does not have an extensive local market.

A crucial difference in terms of understanding the impact of this bad bill is that the prairie wheat farmers produce 80% of Canada's wheat. They also must pay freight costs to transport grain long distances to inland terminals and to ports. Prairie wheat farmers rely on the CWB to ensure fair market access for all, including users of producer cars.

Our position is clear: the NDP believes that any decision on the future of the board should be made by farmers for farmers. Grain farmers have expressed their opinion: a majority of them want to keep this single desk system. The bill should be withdrawn. Before any changes are made to the board, the government must study the impact of dismantling it and examine the effect this will have on Canadian grain farmers. Otherwise, it is gambling with the prairie economy and the income of western farmers.

Allen Orberg, a farmer and chair of the Canadian Wheat Board's board of directors, said that this government does not have a plan, has done no analysis and did not even consult farmers. He also said that the government's approach is based solely on its blind commitment to free markets. Yet here it is, about to dismantle, in just a few months, a marketing system that has been working very well for 75 years.

The facts are clear: the CWB mitigates a risk for farmers. It helps determine when and if they will get paid on time, whether they are selling their grain to the right buyer on the right day and how to get their grain to the buyer, which is a significant issue given the vastness of the prairies.

Farmers pay for the operations of the CWB from their revenue. The CWB is not a government agency or a crown corporation. It is not funded by taxpayers.

There is the example of Australia to know what is in store for our farmers when the single desk is eradicated. This is alarming to say the least. When the Australian wheat board had its single desk power, Australian wheat commanded premiums of over $99 a tonne over American wheat. However, by December 2008, it had dropped to a discount of $27 per tonne below U.S. wheat. In three short years, 40,000 wheat farmers in Australia, which had 12% of the world's wheat production worth about $5 billion, went from running their own grain marketing system and selling virtually all of their wheat on their own behalf to being mere customers of Cargill.

I recognize this bill for what it is: Conservative ideology and politics trumping what is best for our farmers and best for Canada. The CWB is currently controlled, operated and funded by farmers for farmers and the government is meddling where it is not wanted. This bill must be defeated.

Marketing Freedom for Grain Farmers ActGovernment Orders

November 18th, 2011 / 12:45 p.m.
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NDP

Anne-Marie Day NDP Charlesbourg—Haute-Saint-Charles, QC

Mr. Speaker, I thank my colleagues for their excellent speeches, and I want to join them in defending the interests of farmers in western Canada.

After all the discussion we have heard so far on Bill C-18, I am sad to see that the government is undermining the principle of democracy by not honouring its commitments. The government was clear: it would not attempt to dismantle the Canadian Wheat Board without first consulting its members.

To respect the democratic process, we must ensure that members of the Canadian Wheat Board have the right to decide their own destiny through a referendum. Excessive political interference has no place in a democratic country like Canada. Unfortunately, I am no longer surprised to see that every day, the Conservative government uses misinformation to get what it wants. In fact, in its own press release on the bill to dismantle the Canadian Wheat Board, the government said that it had consulted with stakeholders from across the value chain before making a decision. Does this mean that farmers, including all those who want to keep the board, are not part of the value chain for their own products, since they were not consulted?

If western farmers are part of this value chain, why did the government not listen to the majority that spoke out during the plebiscite? Why is it turning a deaf ear? I am sure that western farmers will be shocked to hear that this government has excluded them altogether from the value chain for the products they have produced by the sweat of their brow and that it does not want to hear their opinion.

Also in the news release, the government explains that, and I quote:

[it] has listened to individual farmers who just want the chance to succeed by being able to sell their wheat, durum and barley at the time and to the buyer of their choice.

But what about those who want to sell their wheat, durum and barley through the Wheat Board desk? Were they also heard, or were they deliberately kept out of the discussions because their wishes were at odds with the government's intentions? The government is ignoring these people and, meanwhile, is outrageously continuing to impose its ideology, erode democracy and misinform the public.

I would also like to use my time to discuss the idea of majority, which has already been widely discussed in relation to this bill. I want to make sure that the hon. members across the way understand the concept.

Indeed, they appear to have a good grasp of the concept here in the House, ever since May 2, but the meaning of respecting the principle of a majority seems to become a little fuzzy when it comes time to talk about the issues they want to tackle. To set the record straight, I think we need to take a closer look at the numbers together: 22,764 wheat farmers voted to maintain the board as is, compared to 14,059 farmers who voted to end the monopoly. That works out to a majority of 62% against 38%.

People who respect a majority decision respect the principles of democracy, an example that this government could learn from. In an open letter, the Conservative government, in the person of the Minister of Agriculture, explained that the vote in last May's federal election gave the necessary legitimacy to advocates of change. Can someone explain to me how a federal election can legitimately interfere politically in an organization that is managed, controlled and funded entirely by western farmers, one that is not a crown corporation? Since when do election results legitimize and govern any unilateral actions the government wants to take without any consultation or impact studies and without listening to the people, even though we live in a democracy?

Is it because they have a majority? Oh, yes; they respect that majority scrupulously. It is the same old story: another double standard.

In addition to this so-called legitimacy, the other point that should be mentioned here is the lawfulness of the act itself.

The laws currently in effect require Ottawa to consult the directors of the Canadian Wheat Board before amending the act that created the board. The potential dismantling of the board without prior consultation is a direct violation of this act.

I am very sorry to see that we have before us a government that legitimizes its actions, which are not based on any valid foundation or democratic principle.

In the speech he gave several weeks ago now, the Parliamentary Secretary to the Minister of Natural Resources and for the Canadian Wheat Board even went so far as to say that it was time to put an end to the tyranny of the Canadian Wheat Board.

On this side of the House—the NDP side—we maintain that, instead, it is time to put an end to the tyranny of the government, which went so far as to outrageously cut off the necessary debate on this bill, as it has been constantly doing since the beginning of this session of Parliament.

I am the member for the riding of Charlesbourg—Haute-Saint-Charles. The members opposite may be wondering why a member from Quebec would stand up for the interests of people who are so far from her riding. To that, I say that one would have to be pretty gullible not to understand that the mechanisms of the world economy are felt from one end of the country to the other and throughout the world.

Any bad economic decisions that are made for western Canadian agriculture will affect the entire country. The negotiating power lost with the dismantling of the Canadian Wheat Board will weaken the position of western farmers on the world market.

This weak negotiating power to sell our Canadian wheat at the best possible price on the market will eliminate the smallest producers to the benefit of the large multinational grain companies. Less negotiating power for the sale of Canadian wheat means our wheat will be sold at a lower price. Selling at a lower price means less income for our families and farmers. This vulnerability will be felt throughout Canada, not just in the west.

Canada's economic health is an issue we must deal with together so that all Canadian households get what they deserve—a prosperous future.

In conclusion, the NDP is demanding no less of the government than respect for the democratic process so that western farmers can have an independent say when it comes to their own future and their own destiny.

The NDP will proudly stand up for farming families in western Canada and will listen to what they have to say, demanding nothing short of abandoning Bill C-18, which does not address the needs of the public and which is completely out of touch with Canada's current economic reality.

And closer to home, the Quebec families I represent today will unanimously support the families in western Canada in their fight to protect their income, their retirement and, ultimately, Canada's economy.

Marketing Freedom for Grain Farmers ActGovernment Orders

November 18th, 2011 / 12:15 p.m.
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Liberal

Wayne Easter Liberal Malpeque, PE

Madam Speaker, I am pleased to speak to these amendments.

Thus far, in this discussion at report stage, the government has, in its way, tried to smear the board in the eyes of the public. I would think Canadians would expect that the minister and his parliamentary secretary, who both took an oath of office to uphold their responsibilities, would think ill of that.

One could Imagine what would happen if we had the Minister of Health trying to destroy the health system in this country, or if we had the Minister of State for Science and Technology trying to do away with science and technology.

What we have, in this case, are two ministers who are doing the direct opposite and doing everything within their power to smear the Canadian Wheat Board. It is for that reason that I want to put a couple of things on the record so that the public understands just what we are talking about here.

What is the Canadian Wheat Board? The Canadian Wheat Board has been working for wheat and barley farmers for over 75 years. It ensures that all wheat and barley farmers get the best possible price for their crops. The Canadian Wheat Board is paid for and run by the farmers it benefits. The Canadian Wheat Board sells grain all around the world. It arranges for its transportation from thousands of farms to customers in some 70 countries. The critical component for the Canadian Wheat Board to be able to do its job is single desk selling. That is the essence of the board.

How does the Board help farmers? The Canadian Wheat Board's annual revenues are $5 billion to $8 billion, all of which are returned to farmers, less operating costs, as profit. The cost of that operation is 7¢ per bushel. It is unbelievably efficient. Those returns going back to farmers are not taken off as shares for some private grain company. The benefits actually go back to the primary producers.

Studies by leading agriculture economists, using the Canadian Wheat Board data, concluded that the Wheat Board earned prairie farmers hundreds of millions of dollars a year more than they would have achieved on the open market. In fact, it was around $500 million.

The Canadian Wheat Board manages a supply chain that extends from the farm gate to the end-use customer. It has an envied international reputation for consistent quality and supply, superior service and technical support. However, without the authority of single desk, it will be almost impossible for the Wheat Board to do its job.

The parliamentary secretary went on at length talking about the fact that farmers would still have a board. However, they would have a board without teeth and without the authority to do its job. He said that the farmers would have a choice, that they could go to the board or to the open market. However, when I asked him about whether the farmers would have the choice between single desk and the open market, the parliamentary secretary failed to answer. He claimed that they would have their board. However, this new board would not be like the old board. It would be a board in name only. It would not have single desk selling.

In fact, this would be a government takeover with, as somebody said earlier, five stooges appointed by the minister. It would really be the minister's wheat board. The government is expropriating the Wheat Board, which is run, controlled and was built by farmers in Canada, taking it over and running it as its own agency. I will go through a little bit of that because that becomes clear with Bill C-18.

Bill C-18 begins by eliminating the 10 elected board members and replacing them with 5 ministerial appointed directors. Just who will those hand-picked directors be? According to the Minister of Agriculture and Agri-Food's own officials, they will answer to the minister, not to the farmers.

I will quote what the assistant deputy minister said to the committee. He said, ”It”, meaning the legislation, “enables the minister to provide direction to the board in the manner in which it operates”. It could not be more clear. There is nothing vague there. The Minister of Agriculture and Agri-Food, sitting in Ottawa, will now tell the board of directors what to do, how to do it and when.

We need to keep in mind that that is the minister who has never visited the Wheat Board, other than for 15 minutes, and has never walked into its war room to see how it operates. He has never walked into its transportation room to see how it collects all that grain, 900 miles from tidewater position, thousands of farmers spread over the Prairies, all different types and qualities of wheat and barley, and get that into a transportation system, delivered to a country elevator on a shortline maybe, down the main line and unloaded into the hole of a ship on time so there is no demurrage paid.

The minister has never visited the Wheat Board to understand that. All he is going on is an ideology. He has attacked the board. He has not allowed farmers, under this legislation, to even have a voice at hearings where they could have say.

There is not a single word in this legislation about farmer direction, farmer control or farmers having the right to choose the board of directors they want to run and manage this so-called voluntary Canadian wheat board. In fact, as I said, it is the minister's board.

What is interesting, as well, is that, while the minister picks his own directors, the minister has made sure there is nothing in the legislation concerning conflict of interest. What is to prevent those Conservative appointees from using their time as the minister's hand-picked directors to feather their own nests? Absolutely nothing. That comes from the legal counsel to the agriculture committee when he testified at the committee.

The elimination of an elected board of directors and replacing it with hand-picked appointees is based on what kind of model? I asked that question to Agriculture Canada officials. I asked, “Is there any marketing institution or marketing agency in this country based on this model?”. The answer from officials was, “We will get back to you.” The answer, quite simply, is that there is not a model like this.

Given that the effect of the government's illegitimate action to destroy a $5.8 billion institution, one would assume that there is evidence the government can produce to justify itself. The government has stated that the destruction of the Wheat Board will ensure predictability for western grain farmers. Really? What a fallacy.

I will look at just one issue, access for farmers in moving their grain. On page 6 of the working group report, it states:

...there are questions about whether all of the current market participants, particularly the smaller players...will have effective, competitive access to the entire grain logistics chain from farm to vessel. Similar issues were raised with...respect to short lines and access to producer cars....

Given that fact, the minister announced on November 8 that he would be setting up a logistics working group to examine these issues. Just where is the predictability? Clearly, right now there is not any.

The Government of Canada is putting at risk the farmers who deliver that grain to the tune of $5 billion to $8 billion a year. I can tell members who gains. Who is the Minister of Agriculture and Agri-Food working for? I think he is working for U.S. farmers. The U.S. has challenged the system 14 times stating that it was an unfair trader and we won every time. In fact, Senator Kent Conrad had a report prepared for him that stated that if the Canadian Wheat Board single desk authority were eliminated, the United States may become more competitive in offshore markets as the advantages enjoyed by the Wheat Board disappear.

So, who is the minister working for? However, the worst is that now the minister has, by executive order, put his hands in farmers' pockets to pickpocket them. He is taking the contingency fund of up to $200 million, which is farmers' money, the money they earned from the sale of their grain, to provide a cushion for this proposed new board of his hand-picked directors.

It is unbelievable that this could happen without farmers even having a vote or a say through hearings on how this could or should not be done.

The House resumed consideration of Bill C-18, An Act to reorganize the Canadian Wheat Board and to make consequential and related amendments to certain Acts, as reported (with amendment) from the committee, and of the motions in Group No. 1.

Motions in AmendmentMarketing Freedom for Grain Farmers ActGovernment Orders

November 18th, 2011 / 10:40 a.m.
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Green

Elizabeth May Green Saanich—Gulf Islands, BC

Madam Speaker, I hear from farmers on this issue because we have spoken out on it. I hear from farmers who want to keep the Wheat Board and I hear from farmers who do not. I hear from farmers who voted Conservative and believed they would have a vote in a plebiscite before the Wheat Board would be dismantled as a single desk system.

We also know that farmers desperately need better rail transit and better transportation routes. We need to think holistically about what farmers need. I do not believe they need Bill C-18.

Motions in AmendmentMarketing Freedom for Grain Farmers ActGovernment Orders

November 18th, 2011 / 10:25 a.m.
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Green

Elizabeth May Green Saanich—Gulf Islands, BC

I am sorry, I am unable to answer the hon. minister across the way as I explain our amendments.

We have put forward amendments to Bill C-18 that deal very specifically with changes to the sections of the bill that relate to the election of the board of directors.

It has been part of the Wheat Board ever since it was created in 1935 that the members of the Wheat Board's board of directors were primarily elected by farmers. It has been a 15 member board of directors, 10 board members elected by farmers, who themselves then are represented in a single desk marketing system, which is of course to the benefit of farmers, and that is why they were electing their board of directors.

The amendments we are putting forward at report stage of Bill C-18 are to revert control over the board of directors to the Canadian Wheat Board in whatever new position it is able to exert itself after passage of this legislation in order to ensure that it has representation elected by farmers.

The bill, as currently drafted, would eliminate board members elected by farmers and move to a five person board, all appointed through the governor in council, and of course the governor in council is essentially the cabinet, so it would remove the democratically elected portion of the board of directors, and that is a very serious matter.

I would love to take the temperature down on this matter this morning in the House. It is not an issue which is often debated in the House where it is somehow freedom versus oppression, or that there is this dreadful oppression from the Wheat Board and that all farmers wish to be freed from these shackles, from this terrible yoke.

The wheat and barley farmers in this country are clearly divided on the pros and cons of the Wheat Board in 2011. Clearly, we need to think about modernizing. Initially, the Wheat Board was created before 1935, which is the date we usually choose because that is when it came out in statute federally. Going back to the 1920s, farmers first formed co-operatives. They had every reason to be concerned. When my hon. friend from Winnipeg Centre referred to the robber barons, he was referring to those of the early part of the 20th century. Farmers had every reason to be concerned about whether they could they get a fair price.

When farmers were put in a circumstance of being at the mercy of large corporate buyers, what would that mean? Farmers were competing against other. Each one would lower their price to get the sale with the big conglomerate, and in that situation it was a buyer's market. It could pick off the farmers. Farmers could go bankrupt if they kept reducing their prices to get the deal. That is why co-operatives were formed. That is why the Wheat Board was formed in 1935 to ensure that, with single desk marketing, the Wheat Board would buy and guarantee the farmers a liveable price for the wheat and barley they grew.

It is not easy being a farmer in this country. Goodness only knows that the average farmer in this country is unable to make a living on the farm. Most of the income, increasingly, has to be made off the farm, and that applies not just to grain farmers, of course, but to farmers of fruit, vegetables and livestock.

Being a farmer in this country is difficult. We need a food strategy. We need to support our farmers. We need to support locally grown food. In this context, eliminating the Wheat Board is highly controversial.

We have large conglomerates today, and my hon. friend referred to one of them, Viterra, and there is Cargill. They are in a good position if farmers do go back to what happened in the early 1900s, competing against each other to get a price from a big buyer. That is why there is so much concern from farmers who want to keep the Wheat Board, that they will be exposed to the vagaries of a marketplace in which competition means undercutting each other.

The heart of the co-operative movement was to support each other so that through collaborative efforts, whether in the fisheries, grain farming or in milk and dairy products, farmers could get a fair and livable wage out of a very competitive marketplace. Therefore, it is not without its controversy.

The one vote that the Wheat Board undertook showed 62% of farmers wanted to keep it. That means a not insubstantial number of farmers want to do away with it. In fact, if the percentages are right, there are more farmers who want to do away with the Wheat Board than citizens who voted for the governing party in the last election. That is not a small group of people, so the farmers are divided on this.

This bill would have been better contemplated with respect to how to modernize the Wheat Board rather than how to destroy the single desk and expose the farmers who are so very concerned, as well as those who think the change would do them well.

No one really knows how this will go.

I did want to express concern because in the category of what we do not know are the costs. In terms of costs, we know that the Canadian Wheat Board has determined that an auditor will be brought in. The auditor winning the contract has been reported to be receiving between half a million and a million dollars to figure out employee severance costs, pension costs and the potential legal costs for breaking long-term contracts.

The analysis was carried out by the reputable accounting firm, KPMG. It concluded that the costs of eliminating the Wheat Board will be in the hundreds of millions of dollars. This cost of course will be paid by the taxpayers, but in whose interest is this really? Some critics have pointed out that essentially paying hundreds of millions of dollars should be seen as a disguised subsidy to the Cargills and the Viterras because they will be the beneficiaries of this change.

It is clearly not an easy issue. I have talked to many members on the government benches who have told me that some of their farmers are terrified of getting rid of the Wheat Board. It is generally reported that the younger farmers are more prepared to innovate and figure out how to do without it.

There is no question that the Wheat Board could do a much better job helping farmers who are growing organic grain, but doing a better job should have been the goal. Getting rid of single desk marketing is a radical and dramatic change from what farmers in barley and wheat have known for years. The division, and the fact that the majority of the wheat farmers who have expressed themselves on this issue want to keep the Wheat Board, should have injected some caution into how this legislation will move forward. It is the absence of caution that is so deeply concerning to the members on the opposition side of the House. We need to protect the interests of Canadian wheat and barley farmers.

I know that members on the government benches honestly believe that they are acting in the interests of their constituents who farm wheat and barley. We on the opposition benches honestly believe that there are huge risks in moving so dramatically.

It is interesting that the Conservative members use the word “conservative” to describe themselves. They are really very radical. They are making radical changes to our criminal justice system, to prairie farming, and across the board, particularly in immigration. I do not think they like the term that they are the radical party, but that is much more the essence and substance of the changes we are seeing.

Therefore, in putting forward these amendments we are asking for one dose of caution: please allow these amendments to go through. Allow the farmers in the country to continue to elect members of the Canadian Wheat Board to represent their interests. With board members elected democratically by farmers, we could continue to allow all voices in the agriculture community to be heard. We could try to find the mechanisms that protect the farmers, after Bill C-18 passes, from the worst aspects of a competitive cutthroat market dominated by a handful of multinational corporations.

We must find a way to ensure that prairie farmers make a living wage and that they are not exposed to the kinds of practices that gave rise to the need for the Canadian Wheat Board in the first place.

I urge members opposite to consider these few amendments and to allow them to go through.

Speaker's RulingMarketing Freedom for Grain Farmers ActGovernment Orders

November 18th, 2011 / 10:05 a.m.
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NDP

The Deputy Speaker NDP Denise Savoie

There are 11 motions in amendment standing on the notice paper for the report stage of Bill C-18. The motions will be grouped for debate as follows: Group No. 1 will include Motions Nos. 1 to 6; Group No. 2 will include Motions Nos. 7 to 11.

The voting patterns for the motions within each group are available at the table. The Chair will remind the House of each pattern at the time of voting.

The House proceeded to the consideration of Bill C-18, An Act to reorganize the Canadian Wheat Board and to make consequential and related amendments to certain Acts, as reported (with amendment) from the committee.

Business of the HouseOral Questions

November 17th, 2011 / 3:10 p.m.
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York—Simcoe Ontario

Conservative

Peter Van Loan ConservativeLeader of the Government in the House of Commons

Mr. Speaker, as we have said before, our government's top priority is the economy. Despite global economic challenges, nearly 600,000 new jobs have been created in Canada, 90% of them full-time. Through Canada's economic action plan our government has put forward focused and effective policies that have promoted job creation and economic growth in all sectors of the economy. That has been reflected in this week's successful jobs and economic growth week.

Our government will continue to focus on delivering important measures for Canada's economy. Thus, next week we will be delivering results on jobs week, and anticipate passing the next phase of our low tax plan for jobs and growth next week.

Beginning tomorrow, we will move forward on report stage for Bill C-18, Marketing Freedom for Grain Farmers Act. This important bill provides economic choice to western Canadian farmers. I understand that the hon. member for Winnipeg Centre has a number of amendments on the notice paper, but keep in mind that getting this bill passed would give farmers predictability for next year's growing season, which is an objective. I am looking forward to a productive, efficient and civil debate on the legislation, which will finally deliver freedom to western Canadian grain farmers after seven decades.

We will continue debate on Bill C-18 next Wednesday. I am hoping that we will be debating the bill's third reading on Wednesday, if the debate tomorrow turns out to be productive and efficient. In the last election, we committed to moving forward with Canada's economic action plan, a low tax plan for jobs and growth. Canadians gave our Conservative government a majority mandate to implement our plan.

On Monday, we will have the final day of debate on Bill C-13, the Keeping Canada's Economy and Jobs Growing Act, our primary bill in job creation and economic prosperity week. Bill C-13 implements important measures from our budget such as the small business tax credit and the extension of the accelerated capital cost allowance to make our manufacturers more competitive.

On Tuesday morning, we will continue debate on Bill C-7, the Senate Reform Act. The bill has already been debated on three days, so I hope that following Tuesday's debate the opposition will allow members to vote on this bill that will allow the Senate to reach its full potential as an accountable and democratic institution.

On Tuesday afternoon, we will continue debate on the opposition's motion to block Bill C-11, the copyright modernization act. The bill is another of our priority economic bills that the opposition is trying to prevent coming to a vote through what it calls a reasoned amendment.

Bill C-11 would create modern copyright laws to protect and create jobs, promote innovation, and attract new investment to Canada. This will be the fourth day that the bill has been debated. The time has come for members to have the chance to vote on this important economic bill. However, if the opposition continues in its efforts to delay and block the bill, we will again debate it on Thursday.

As is always the case, we will give priority to other important bills that may be reported back by committees. I refer especially to Bill C-10, as I understand that the justice and human rights committee is working hard, even as we speak, to complete its clause-by-clause consideration of the bill later today, I hope.

Finally, the next allotted day will be on Friday, November 25.

Canadian Wheat BoardStatements by Members

November 14th, 2011 / 2:10 p.m.
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Conservative

James Bezan Conservative Selkirk—Interlake, MB

Mr. Speaker, the Canadian Wheat Board chairman, Allen Oberg, and his seven directors continue to push their irresponsible, scorched earth policy.

Early reports suggest that their most recent ad campaign is already costing western Canadian grain farmers a whopping $1.4 million. This is in addition to the $100,000 they are spending on a reckless and baseless lawsuit in an attempt to keep their draconian monopoly.

Mr. Oberg is doing a great disservice to the farmers and staff he claims to represent by refusing to work with us to give the Canadian Wheat Board the best chance to succeed in an open market.

Not only does Parliament have the right to change legislation, our government has a responsibility to deliver on the promises we made to Canadians. By playing fast and loose with farmers' hard-earned dollars, Mr. Oberg is highlighting the need for Bill C-18 to be passed by this House as soon as possible.

While Mr. Oberg and other directors choose to punish farmers based upon their province of residence, our government will ensure western Canadian grain farmers receive the marketing freedom they want and justly deserve.