Evidence of meeting #21 for Agriculture and Agri-Food in the 40th Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was farmers.
A recording is available from Parliament.
12:25 p.m.
Conservative
Brian Storseth Conservative Westlock—St. Paul, AB
Failing that, would you or Mr. Hill be in favour of having the Auditor General do her own investigation?
12:25 p.m.
Chair, Board of Directors, Canadian Wheat Board
We would welcome the Auditor General to review the report and our risk management. We said that right from the start. I'd like to make one thing clear about sharing this with producers: 10 of the people on the board of directors are producers, so all of our board of directors have reviewed this report.
12:25 p.m.
Conservative
12:25 p.m.
Chair, Board of Directors, Canadian Wheat Board
We have the support of our board of directors on this report. What we want to do is meet with the minister and make sure there are issues that need to be delved into by the Auditor General. This will be an expensive process and we need to recognize that.
12:25 p.m.
Conservative
Brian Storseth Conservative Westlock—St. Paul, AB
Thanks for that, Mr. Hill.
On the 2007-08 crop year, I didn't hear you deny the amount that Mr. Anderson claimed for losses. Was he accurate with the amount of losses that were—
12:25 p.m.
Conservative
12:25 p.m.
President and Chief Executive Officer, Canadian Wheat Board
It is true that $89 million was lost, associated with the producer payment options and the hedging of them, and that went to the contingency fund. That's a fund that is plus and minus and absorbs those losses.
12:25 p.m.
Conservative
Brian Storseth Conservative Westlock—St. Paul, AB
Mr. White, while we're talking about the previous year's contingency fund, how much were the losses?
12:25 p.m.
President and Chief Executive Officer, Canadian Wheat Board
They were $39 million.
12:25 p.m.
Conservative
Brian Storseth Conservative Westlock—St. Paul, AB
I apologize for being short. I'm not trying to be, but I only have five minutes.
I see that you say the risk management activity should be net zero over the long term.
12:25 p.m.
Conservative
Brian Storseth Conservative Westlock—St. Paul, AB
You also say that this takes you into a deficit position in the contingency fund since 2000. That's eight and going on nine years.
12:25 p.m.
President and Chief Executive Officer, Canadian Wheat Board
No, I didn't say that.
12:25 p.m.
Conservative
Brian Storseth Conservative Westlock—St. Paul, AB
Well, it says right here, “thus taking CWB into a deficit position”.
12:25 p.m.
President and Chief Executive Officer, Canadian Wheat Board
Okay. I understand what you're saying. Yes.
12:25 p.m.
Conservative
Brian Storseth Conservative Westlock—St. Paul, AB
So over the last eight years you're in a deficit position. When can the farmers expect to be in a surplus position?
12:25 p.m.
President and Chief Executive Officer, Canadian Wheat Board
I would suggest that the farmers could probably be in a surplus position over the course of the next couple of years.
12:25 p.m.
Conservative
Brian Storseth Conservative Westlock—St. Paul, AB
Are you willing to state to the committee that they will be in a surplus position by 2011?
12:25 p.m.
President and Chief Executive Officer, Canadian Wheat Board
No, because there are risks associated with operating all of these programs, and it is always difficult to determine. It's one of those things that I believe will be the case, but I can't state categorically that it is, because it's a future event.
12:25 p.m.
Conservative
Brian Storseth Conservative Westlock—St. Paul, AB
There are some farmers who are saying that they're being penalized and that you're using other ways to replenish the fund itself. Is this true?
12:25 p.m.
President and Chief Executive Officer, Canadian Wheat Board
It is true that in this year the board of the CWB took the step of taking some revenues that were not directly related to sales and putting those in part to replenishing the contingency fund.
12:25 p.m.
Conservative
Brian Storseth Conservative Westlock—St. Paul, AB
I guess my question then would be, without penalizing farmers and using their revenues, when are you net sum zero? That's not net sum zero; that's taking extra in off the side. When are you going to be net sum zero without penalizing the farmers?