Evidence of meeting #66 for Agriculture and Agri-Food in the 39th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was research.
A recording is available from Parliament.
4:45 p.m.
Chair, Canadian Egg Marketing Agency
Our preference would be to have it in the Health of Animals Act. It would be an easier way for us to deal with it.
Right now, what we have on the table is $20 a person for the compensation that we feel would be adequate.
4:45 p.m.
Conservative
The Chair Conservative James Bezan
Thank you.
You only used two and a half minutes.
Monsieur Gaudet.
4:45 p.m.
Bloc
Roger Gaudet Bloc Montcalm, QC
Thank you, Mr. Chairman.
The last paragraph on page 3 of your brief reads as follows:We have specific comments regarding the current review of these programs. First, dealing with the new disaster framework, it is our understanding that there will be a federal-provincial negotiation whenever a payment from the disaster program is contemplated. Therefore, when disaster occurs, it is not at all certain that there will be adequate compensation forthcoming and it certainly won't be in place quickly. In addition, we are uncertain as to what constitutes a "disaster" under the framework.
I'd like to hear your comments on this and any suggestions you may have to deal with this issue.
4:45 p.m.
Chair, Canadian Egg Marketing Agency
This paragraph states that we will receive compensation for the shortfall under the new APF, as part of the risk management component. In such a situation, the federal government and the provincial governments will probably consult each other. If that is the case, producers may have to wait a long time before receiving compensation for loss of income caused by Avian influenza, for example.
In addition, there is talk of including that in a program on disasters, but we are wondering if producers would receive adequate compensation. You asked what we would prefer, and I would say we would prefer to receive compensation under the Health of Animals Act since only one level of government would be involved. In the case of an Avian influenza outbreak, if a producer had to get rid of his chickens, this would be a much quicker and easier solution.
4:45 p.m.
Bloc
Roger Gaudet Bloc Montcalm, QC
Which level of government is currently responsible for the new Agriculture Policy Framework?
4:45 p.m.
Bloc
Roger Gaudet Bloc Montcalm, QC
Could you suggest any ways of making the process faster and ensuring that producers are compensated? So far, there have been many problems, but it seems very difficult to find solutions.
4:45 p.m.
Chair, Canadian Egg Marketing Agency
If compensation cannot be provided under the health of animals program, a program that would allow producers to be compensated properly would have to implemented as quickly as possible.
4:45 p.m.
Bloc
Roger Gaudet Bloc Montcalm, QC
What length of time would you like to see? I'm not talking about a week, but what would be a reasonable length of time.
4:45 p.m.
Chair, Canadian Egg Marketing Agency
I am thinking about the situation that occurred in British Columbia, and I would say that two or three months would be the maximum length of time acceptable.
4:45 p.m.
Bloc
Roger Gaudet Bloc Montcalm, QC
In closing, I would like to say that we consider supply management very important and we are going to continue defending it.
Thank you very much.
4:50 p.m.
Conservative
David Anderson Conservative Cypress Hills—Grasslands, SK
Thank you, Mr. Chair.
I want to talk to you about production insurance and your idea of how that might work. When we were travelling—I think it was in Manitoba—we heard that the beef producers did not think this was a very viable way of doing things. You're obviously sold on the idea. Can you give me an idea of how you would like it to be set up, so it would work for you?
4:50 p.m.
Peter Clarke Vice-Chair, Canadian Egg Marketing Agency
Thank you, Mr. Chairman.
Thank you for the question.
There are a number of different ways that production insurance can possibly work. One of the ways is if you really covered production insurance as it should be, then any decline that one might have, in terms of production, in regard to the production of eggs, would be potentially in a program that could be on a sliding scale in regard to premiums and also compensation. So it could be dealt with similarly to how some crop insurance and so on and so forth are done today, as a sliding scale, again in regard to what areas you might want to cover and what premiums would be in that respect as well. But in addition to that, we're also after specific diseases or general disasters that might have an opportunity to be covered too.
4:50 p.m.
Conservative
David Anderson Conservative Cypress Hills—Grasslands, SK
Tell us a little bit, then, what you think needs to be in the disaster component in order for it to work for you. You've talked about a couple of things that you think aren't quite there yet. What are the components that need to be there for it to work for your industry?
4:50 p.m.
Vice-Chair, Canadian Egg Marketing Agency
We'd need to be comfortable that our industry will be covered off on significant disaster and named perils. If we need to get very specific, we probably can, but we would like to be able to have a myriad of opportunities to work through a program that would serve our producers. In order to do that, we'd have to look at what the opportunities would be to cover off on different areas of concern in our industry for insurance, but we also want to be able to say that these programs would be able to evolve over time and reflect what our needs are in our industry.
4:50 p.m.
Conservative
David Anderson Conservative Cypress Hills—Grasslands, SK
Do you have any specific criteria, then, for the declaration of what you would call a disaster? I know that's probably a difficult question to answer, but you've had a couple of them, I think, in your industry, or potential ones.
4:50 p.m.
Vice-Chair, Canadian Egg Marketing Agency
Well, sure, avian influenza is one that comes to mind, obviously, because it was such a disaster for our industry and had such severe implications to our industry because producers had to go completely out of production in all different aspects of their poultry. That would be one, but at the same time we need to be able to look at things other than the named perils, as in the production side too.
It is difficult to get explicit without looking at the opportunities that would be there in an insurance-type of program. We can, I think, over time, but just to come up and suggest to you today that this is what it would have to be, without consultation, is a little bit risky for me to do.
4:50 p.m.
Conservative
David Anderson Conservative Cypress Hills—Grasslands, SK
Your fourth point in your summary talked about the fact that you want to leave the door open to permit government-sponsored production insurance to serve as a re-insurer to industry. When you're thinking of industry insurance there, are you thinking just specifically producer insurance? Would you have private industry involved? What's your framework for that?
4:50 p.m.
Vice-Chair, Canadian Egg Marketing Agency
Well, for example, to name one specifically now, our industry has an insurance in-house. Our poultry layer industry covers off a salmonella enteritidis. We have our own program for doing that, so that's specific. But beyond that, we would like to potentially name other risks that are in our industry that then we could potentially have co-insurance through. That would allow us to broaden out significantly beyond SE and what our producers would like to have covered. If we could do it, potentially, with private industry and/or government-supported programs, that is what we're interested in.
4:50 p.m.
Conservative
David Anderson Conservative Cypress Hills—Grasslands, SK
Is your insurance program fully self-funded now, or do you have private partners?
4:50 p.m.
Vice-Chair, Canadian Egg Marketing Agency
This aspect, for SE specifically, we fund ourselves. But again, it is very narrow in regard to specifics. Our testing happens in a certain aspect of the life cycle of our birds and certain criteria have to take place in order for us to give coverage. It is very narrow in that respect, but it is one that we cover ourselves.
4:55 p.m.
Conservative
David Anderson Conservative Cypress Hills—Grasslands, SK
Maybe we can come back, if there's time at the end.