Debates of Oct. 25th, 2011

The Deputy Speaker Denise Savoie

Order, please. I must give the hon. member for Guelph 30 seconds to respond.

Frank Valeriote Guelph, ON

Madam Speaker, interestingly, the Conservatives only received 24% of all eligible voters support in the last election. I can tell my friend from Edmonton, having been out west four times now this year talking about this issue, that a lot of Conservative farmers approached me and said that they may have voted Conservative but that they did not vote Conservative for the purpose of dismantling the Wheat Board.

I would remind the member that the word “wheat” did not show up in the Conservatives' platform during the election either.

Mike Lake Edmonton—Mill Woods—Beaumont, AB

Madam Speaker, I rise on a point of order. I would just point out that on page 59 of the Conservative platform we reference the Canadian Wheat Board.

The Deputy Speaker Denise Savoie

Those are questions of debate. I think the hon. members realize that these are not points of order.

Resuming debate. The hon. member for Burnaby—Douglas.

Kennedy Stewart Burnaby—Douglas, BC

Madam Speaker, I rise today to speak in support of our party's opposition motion on the Canadian Wheat Board. I am pleased to split my time with my colleague, the member for Gaspésie—Îles-de-la-Madeleine.

I am very happy to hear there may be some movement on the other side in that members are asking for a plebiscite, which is at the heart of the opposition day motion.

Our motion, as so eloquently introduced by the member for Churchill, calls on the government to set aside its legislation abolishing the Canadian Wheat Board and to conduct a full and free vote by all current members of the Canadian Wheat Board to determine their wishes. My speech today will speak directly to this motion, which is a direct reaction to Bill C-18, An Act to reorganize the Canadian Wheat Board and to make consequential and related amendments to certain Acts. I support our motion not only because I believe that maintaining the Canadian Wheat Board is important for Canadians, but I also feel Bill C-18 undermines Canadian democracy and is another example of how the Conservatives are using their majority power in an irresponsible manner.

There are two critical aspects of Canadian democracy. One of them is with regard to outcomes and the other is with regard to process. With respect to outcomes, those who often judge the health of a democracy examine the extent to which the preferences of minority groups are respected when elected governments make decisions. In terms of process, the extent to which a democracy can be considered healthy rests on the extent to which governments include citizens in both electoral and non-electoral decision making. Our motion speaks to how Bill C-18 undermines Canadian democracy with regard to both outcomes and process, and I hope all members of the House will support it.

Before discussing how Bill C-18 undermines both the outcome and process of democracy, it is worth stepping back to look at the institution which we support with our motion.

The Canadian Wheat Board is the prairie farmers' marketing organization for wheat, durum and barley. It is the largest and most successful grain marketing company in the world. It is a very impressive institution, proud to be called Canadian and recognized around the world.

The Canadian Wheat Board's roots date back to the 1920s when western farmers began pooling their grain in order to obtain better prices. It was a collective effort supported right across the country. In 1943 the single desk was created, mandating all prairie farmers to market their wheat through the Canadian Wheat Board. The single desk structure provided financial stability, prudent risk management and certainty of grain supply, all important during the war years but also after the war ended.

The Canadian Wheat Board is controlled, directed and funded by farmers. It is not a government organization; it is a farmers organization. The Canadian Wheat Board sells all around the world and arranges for transportation from thousands of farms to customers in 70 countries. About 21 million tonnes of wheat and barley are marketed by the Canadian Wheat Board every year.

Eighty per cent of the wheat grown in western Canada each year is exported overseas. It is not only an important Canadian institution but it is an important organization worldwide. Overseas exports are the Canadian Wheat Board's core business, but it also supplies Canadian millers and maltsters. The Canadian Wheat Board does not set grain prices, which again is an important component of the Canadian Wheat Board, but prices are established by global supply and demand factors. However, its size and market power are used to help maximize grain prices.

The benefit to farmers is clear in the mandate of the Canadian Wheat Board and its practice. It helps farmers worldwide. It helps Canadian farmers, but it still operates within the confines of the market. The prices are established by global supply and demand. However, it provides farmers certainty.

The Canadian Wheat Board does not buy wheat and barley from farmers. Instead, it acts as their marketing agent. There is such a big fuss for an institution that is really a marketing agent. We hear the other side talk about monopolies and trampling on minority rights. It is a marketing board that is doing good work for farmers and, in fact, allowing them to survive.

The Canadian Wheat Board negotiates international sales and passes the return back to farmers. The Canadian Wheat Board retains no earnings aside from what is needed to cover the costs and financial risk management.

The Canadian Wheat Board supports its marketing program through a variety of other activities, including market development, strategy, research and analysis, and policy advocacy. Again, this is an organization that is built by farmers, helping farmers to get the best prices possible but still operating within the market. There is nothing insidious here. It only helps. In fact, it is the only way in which a number of small farms survive.

The Canadian Wheat Board also administers assistance for grain delivery and farmer payments, including innovative pricing programs that help producers manage cash flow and risk.

I did not grow up on the Prairies; I grew up in rural Nova Scotia where I was surrounded by farms. Lots of farms cannot make it, especially small farms. They collapse because the risk is so great. The Canadian Wheat Board helps these small farms survive. If we abolish it, these small farms will undoubtedly collapse.

The Canadian Wheat Board mitigates risk for farmers, including when and if they will get paid on time, whether they are willing to sell their grain to the right buyer on the right day and how to get the grain to the buyer.

It is not a government agency or crown corporation. It is not funded by taxpayers. Farmers pay for its operation from their grain revenue. Again, it is not a government agency nor a crown corporation. Here again is an example of an arrogant majority government interfering in an organization that is operated outside the confines of government.

I will return to my two main points about outcomes and process being ways that we can evaluate the health of our Canadian democracy.

In terms of outcomes, Bill C-18 proposes to dismantle the farmer-controlled and funded Canadian Wheat Board by eliminating the single desk marketing of wheat and barley.

It establishes a voluntary Canadian wheat board, but no one here believes that this effort is genuine. It is just because the government is afraid to say it is going to abolish the whole thing. It wants to make it seem like it is in steps. The voluntary aspect of the Canadian Wheat Board is merely a way for the government to say it is not completely abolishing the Canadian Wheat Board in one fell swoop.

The Canadian Wheat Board is good for Canada and it is also good for small farmers. This is what we would evaluate in terms of outcomes. If the government manages to pass Bill C-18, how many small farmers will be left in five years? I think that is the important thing to measure.

We need to look at whether the majority government is running roughshod over the will of local farmers. In five years when we look at this and we see all these family farms that have collapsed, we will have to ask if this was the right thing to do.

Our opposition day motion states that we should let farmers have a voice as is mandated in the act. That is what I will speak to here in terms of process.

Probably the most egregious part of Bill C-18 is the process by which the government is attempting to abolish the Canadian Wheat Board. It is worth looking at the Canadian Wheat Board Act to see what the process is supposed to be and then contrast it with what the government is actually doing.

Section 47.1 of the Canadian Wheat Board Act states:

The Minister shall not cause to be introduced in Parliament a bill that would exclude any kind, type, class or grade of wheat or barley, or wheat or barley produced in any area in Canada, from the provisions of Part IV, either in whole or in part, or generally, or for any period, or that would extend the application--

There are lots of subsections and lots of things the minister has to pay attention to. The government cannot introduce any changes without consulting with the Wheat Board.

Second and most important:

(b) the producers of the grain have voted in favour of the exclusion or extension, the voting process having been determined by the Minister.

What this section outlines is there has to be a plebiscite. This is enshrined in law. In fact the Conservatives themselves used this under a former government.

This is an act by which the government will be judged. It is going to destroy local farms. In five years we are going to see a lot fewer family farms on the Prairies.

The government is showing Canadians how it approaches democracy in this country. Even though it is mandated to have a plebiscite, the government ignores this requirement. This goes against the traditions of the Conservative Party itself.

The Reform Party and the Alliance Party that make up the Conservative Party fought in this House to increase Canadian democracy. I applaud them for that. In fact, Randy White brought in private members' bills to bring in a recall initiative. This goes against that tradition. I am very upset about that and I think Canadians will be, too.

Mike Lake Parliamentary Secretary to the Minister of Industry

Madam Speaker, in regard to the member's point on the clear question, I point to the platform promises. The NDP was clear in the election campaign that it would support the Canadian Wheat Board as a single desk marketer for Canadian wheat and barley. The Conservative Party platform in the entire paragraph under the Canadian Wheat Board said that we will continue to work with western Canadian grain farmers to ensure that the results of the barley plebiscite are respected and that they are given the freedom to choose whether to sell grain on the open market or through the Canadian Wheat Board.

That was the complete promise in the election platform of the Conservative Party. That is exactly what we are doing now. Based on that promise and the clarity of that promise, and based on the overwhelming support in western Canada for the Conservative Party which won 51 of the 56 seats in the prairie provinces, why does the member not support democracy? While he is on his feet maybe he could tell us how many farmers in Burnaby—Douglas are affected by the Canadian Wheat Board.

Kennedy Stewart Burnaby—Douglas, BC

Madam Speaker, 32,000 farmers participated in an ad hoc plebiscite which the Canadian Wheat Board hosted. Almost 23,000 voted to keep the Canadian Wheat Board. This shows at the very least that the government should respect the Canadian Wheat Board Act and hold a plebiscite. Today one of the member's colleagues supported that notion and I would hope he would too.

Carol Hughes Algoma—Manitoulin—Kapuskasing, ON

Madam Speaker, we have trends in farming that worry many of the producers in my constituency. Since 1988, Canada's farm debt has tripled. We lost 80,000 farms and saw a dramatic drop in the number of young farmers. My colleague spoke about that a few minutes ago.

Farmers tell me these phenomena are the product of an agricultural policy that only values the big corporate interests and lacks appropriate incentives to help young people see the family farm as a viable way of life. They ask me, why is the government siding with big agriculture to the detriment of the family farm? Could my colleague speak again to that element of this debate which he spoke to eloquently a while ago?

I want to commend him for filling the shoes of the previous NDP member for Burnaby—Douglas. He is doing a great job.

Kennedy Stewart Burnaby—Douglas, BC

Madam Speaker, I thank my colleague for her kind words.

We have heard there are 70,000 western farmers currently, but I wonder how many there will be in five years. I wonder if in five years the Conservatives will say that this was a mistake. When the number of farms goes from 70,000 to 60,000 to 50,000 down to 20,000 or 10,000 and they are giant agribusiness companies which are owned outside Canada, I wonder if the Conservatives will say that this was a mistake.

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

Madam Speaker, I would like to thank the hon. member for Burnaby—Douglas for his speech.

Bill C-18, as proposed by the government, should be scrapped, simply because it jeopardizes the financial stability of western wheat farmers and of all families associated with the sector.

Can the member tell us what the loss of the Canadian Wheat Board will mean for farmers?

Kennedy Stewart Burnaby—Douglas, BC

Madam Speaker, it is similar to losing any business. I think that many families on the Prairies are going to be devastated by the bill and the rather rash action by the government. All the time we hear the Conservatives talk about a strong and stable majority government. I do not understand why the Conservatives are afraid of abiding by the act and having a plebiscite.

Farmers should have a say in this. We will see fewer and fewer farmers if the bill is passed.

Philip Toone Gaspésie—Îles-de-la-Madeleine, QC

Madam Speaker, I rise in the House today to speak in favour of our motion today.

This is an opportunity for the Conservative government to restore faith with the Canadian public and save an institution that has served farmers so well. Although it is seen as a success story around the world, the Canadian Wheat Board is being attacked by Conservatives with an ideologically driven agenda that favours wealthy middlemen at the expense of Canadian farmers.

The Canadian Wheat Board helps to ensure that farmers can sell their grain to the right buyer and that it can be transported effectively to that buyer. We live in a big country and a co-operative approach to accessing markets is a hallmark of our Canadian experience. Now is the time for us to once again commit ourselves to that co-operative approach and uphold our values in the face of corporate greed. In Canada, co-operation has allowed this country to survive and our co-operative approach is not only demonstrated by the wish of our farmers, it is also, frankly, sound economics.

Allen Oberg, a farmer and Canadian Wheat Board chair of the board of directors, stated recently that dismantling the Wheat Board single desk will “jeopardize a $5 billion export sector. It will shift money from the pockets of Canadian farmers into the hands of American corporations”.

Enriching foreign corporations at the expense of our farmers does not seem like good, sound economic management to me. It sounds like the Conservative government is deliberately risking the impoverishment of our farmers in order to benefit foreign corporations that do not need our help.

Results of a recent Canadian Wheat Board ad hoc plebiscite indicated that 62% of farmers voted in favour of retaining the single desk for wheat. The majority voted to retain it for barley also. With over 38,000 farmers participating, this plebiscite is clearly indicative of the popular vote.

As a gesture of good faith, before any changes are made to the Canadian Wheat Board, the government should study the impact that dismantling the single desk would have on our farmers and economy. The Conservative government should stop its single-minded approach and hear the objections of our farmers and their families. Farm families deserve the government's support far more than a bunch of wealthy agri-business middlemen.

However, the Conservative government seems to lack the will to reflect on its actions. Single-mindedness has led to a complete lack of openness to hearing the other points of view. It certainly has no intention of allowing debate to slow the Conservative express train's transfer of our grain to big city corporate interests.

For example, we had only been debating the bill on eliminating the Canadian Wheat Board single desk for a single day when the government decided to invoke closure and stifle debate. This has to be some sort of a record. The Conservatives are prepared to stifle debate and silence opposition, but to what end? These Conservative Party members used to tell us that they would do things differently and would encourage healthy debate. They seem to have changed their tune.

I will repeat what I said in this House only a few days ago. On March 31, 2004, the leader of the Conservative Party, then in opposition, stated, “The government invoked closure in the House after only six days”.

The leader of the Conservative Party was clearly incensed that a government would be so callous as to invoke closure after only six days of debate that he was willing to call the governing party on it. I completely agree, but the Prime Minister should heed his own advice and reopen the debate on this undemocratic move.

What is the point in forcing an end to debate when the fundamental issue of farmers' rights to decide for themselves has clearly not been heard? The Conservative government seems to have a tin ear when it comes to regional needs. What was its slogan in the last election?

“Our region in power.” It seems to me that the real region in power, at least in the eyes of the Conservative government, is the one between the minister and the boards of multinationals.

The Conservatives seem focused on attacking our regions and everything that affects the families of small and medium-sized producers. In my riding, fishers are the biggest producers of food products. Yet, the government has eliminated the Fisheries Resource Conservation Council, which was created in partnership with our fishers. This council was created in 1993, after the cod moratorium was announced, in order to determine exactly what the situation was with fish stocks. Each year, the council took a stock inventory, and fishing quotas were based on that data. It was a wonderful example of co-operation between the government and fishers. It was an independent body that generated reliable data. It was because of this partnership with fishers that the council was so successful at helping us manage a crucial resource for eastern Canada's fishers. The council has a proven track record, yet the government shut it down without any warning.

If we do not support the single desk system that is the Canadian Wheat Board, small producers, fishers and fish plant workers, as well as western farmers and their families, will be the ones who suffer the consequences.

The effect that this will have on grain farmers is not our only concern. We must also think about the spinoffs generated by the Canadian Wheat Board. One example of many is access to railway services. The construction of the railway to Churchill, Manitoba, was completed in 1929. Today, the Canadian Wheat Board is by far the largest user of the Port of Churchill, with its shipments accounting for 95% of the port's cargo. Grain is transported by railway in producer cars at an affordable price.

Without a single desk system, it is doubtful that the Wheat Board's competitors will want to use the Port of Churchill as much as the board does since they have their own port facilities on the west coast and in Thunder Bay. The Port of Churchill does not interest them. We believe that they will even want to favour their own facilities elsewhere. The Port of Churchill and the railway will be at risk if we do not protect the single desk system.

The railway in my riding is also at risk. Most of the forestry companies have shut down, and we find ourselves with a railway whose only reliable customers are passengers. Given the privatization of our railway by CN, like the privatization of the railway leading to Churchill in favour of Omnitrax, the railway must be profitable to be attractive to private companies.

We are not questioning the fact that the main routes must be profitable. They are subsidized without too many questions being asked but, to date, it does not seem as though this government is terribly concerned about the railways.

The people in my riding have been reflecting on our railway. Similarly, the people of northern Manitoba should consider how viable their railway will be if the Canadian Wheat Board single desk system is not supported.

The Wheat Board has a much greater role than simply managing the transportation and sale of grain. The Wheat Board supports the economy and infrastructure of a number of communities.

Canada's northern infrastructure is at risk. Our northern railways and the Port of Churchill have taken years to develop and communities have been built around them. Yet, the Conservative government is telling people who depend upon them and their largest client to just go and let the port shove off.

Removing the single desk will risk lower grain prices for producers, which means that farmers will suffer. Farmers may leave the industry. The lower prices will certainly not be passed on to consumers. No. Experience tells us that middlemen, the large corporate agri-business interests, will profit from lower prices and they will not pass on their savings.

The Conservative members are so fixated on their ideologically-driven agenda, they have become deaf to the voices of the farmers, the very people they claim to be helping. Clearly, it is not the needs of the farmers that are being addressed here. It is the desire of large foreign-owned corporations to have cheap access to our grain. It does not need to be this way.

In taking away farmers' rights without real debate, the Conservative government has proven that it has become too self-righteous for its own good. Against such opposition, how can the Conservatives remain deaf to the needs of farmers? We need a plebiscite, the law requires it, and it is only right.

Philip Toone Gaspésie—Îles-de-la-Madeleine, QC

Mr. Speaker, we certainly do want to respect the results of the last election. It is clear that the government has the right to introduce bills. However, the government should also respect the rights of democracy in Canada and allow those bills to be debated in a timely fashion.

Over 38,000 farmers participated in an ad hoc plebiscite. Well over a majority spoke and made their intentions clear. They want to save the single desk. The Conservative government's proposal in Bill C-18 is right off the mark and the government needs to listen to the farmers who it claims to so well represent. The government needs to bring those farmers' ideas forward and it needs to protect farmers' rights to continue to farm on their family farms.

Bill C-18 would not help farmers whatsoever. It would challenge farmers' families in the future. We expect that people will have to leave their family farms if we allow Bill C-18 to pass. It is not a democratic move. It is--