Bill C-13 (Historical)

An Act to amend the Canada Grain Act, chapter 22 of the Statutes of Canada, 1998 and chapter 25 of the Statutes of Canada, 2004

This enactment amends the Canada Grain Act by
(a) clarifying the Canadian Grain Commission’s objects;
(b) combining terminal elevators and transfer elevators into a single class of elevators called “terminal elevators”;
(c) eliminating mandatory inward inspection and weighing as well as some requirements for weigh-overs at elevators;
(d) extending the right to require the Commission to determine the grade and dockage of grain at process elevators and grain dealers’ premises;
(e) eliminating the Grain Appeal Tribunals;
(f) eliminating the Commission’s ability to require security as a condition for obtaining or maintaining a licence;
(g) creating additional regulatory powers for the Commission;
(h) modifying enforcement provisions and creating certain new offences; and
(i) ensuring that some of the requirements and procedures set out are clarified and modernized and that certain language is updated.
The enactment also amends An Act to amend the Canada Grain Act and the Agriculture and Agri-Food Administrative Monetary Penalties Act and to repeal the Grain Futures Act as well as another Act, and includes transitional provisions and coordinating amendments.

Canada Grain Act

[Wayne Easter, Liberal, Malpeque, PE]

Mr. Speaker, I listened to my hon. colleague and his fairly severe criticism of Bill C-13. He gave bit of history on the Canadian Grain Commission as well.

He spoke to one of the key areas, and I am not sure if I am quoting him quite correctly, because he did not elaborate a lot on this. He talked about the risk to Canada's international reputation. As we see it on our side, the way the government has proposed the bill, there is a real concern for producers. The government is clearly favouring the corporate sector over primarily producers by the way it is moving forward with the amendments to the bill.

We see problems with the loss of inward inspections in the quality of grains potentially moving into the domestic market and possibly into the United States. There is a real concern for producers over the loss of bonding. However, as to the risk to Canada's international reputation, could the member expand on that issue, because is a serious matter?

Canada is seen as the most reliable supplier of high quality grains around the world. Whereas the United States is seen as a residual supplier and does not match our quality in any shape or form. It seems the government may be moving to Americanize our system, which I think would be a sad thing. Does the member have any comments on that?

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

Mr. Speaker, it is once again a pleasure to be here in front of a full House. I am sure I will get a standing ovation from all of my colleagues after my speech.

I am happy to speak to Bill C-13, An Act to amend the Canada Grain Act. As has been said earlier on, the all-party Standing Committee on Agriculture and Agri-Food had made a number of recommendations. For example, it recommended that any eventual bill clearly protect the interests of grain producers. We are seeing that this bill does not address that explicitly. Another recommendation was to conduct a cost benefit analysis of contracting out services prior to any further movement on this issue. Of course, this has not yet been done.

Another recommendation was to support pilot projects in contracting out services for grain inspection. In other words, to try and see on a small scale if this would work. To my knowledge, this has not yet been done. Another recommendation was for the Canada Grain Commission to receive adequate funding to improve its services, particularly regarding the flexibility of authorizing overtime. We have not seen any substantial increase in funding for the Canada Grain Commission.

All members of all parties recommended that the federal government report back to the standing committee prior to the tabling of new grain legislation on the various models that could be implemented for protecting grain farmers. As we see, to date, this had not been done.

As we debate this bill, the question we have to ask ourselves here is: Are we moving ahead without the proper groundwork? Are we moving ahead without having conducted the necessary study and evaluation of what this could mean for the history of the grain industry in Canada?

After studying the report, the Standing Committee on Agriculture and Agri-Food tabled a report in the House, and many of the recommendations in that report are reflected in the bill. The committee recommended first and foremost that any eventual bill clearly protect the interests of grain producers. Bill C-13 makes major changes to the structure of the CGC that have producers afraid that the commission will not be required to act for the benefit of the grain industry as a whole. There is a difference here: by putting the interests of grain companies and farmers on the same footing, the government is not taking into account the power imbalance between them.

Bill C-13 does not provide for creating an independent office of grain farmer advocacy, as the committee recommended in order to protect producers' interests. If the commission does not have the authority to act decisively for the benefit of producers, the grain companies will try, slowly but surely, to have it eliminated completely.

Once again, we see this bill as a step toward the deregulation of the agri-food industry here in Canada. We must be very careful before making such a decision.

Instead of helping Canada's grain producers in these troubled economic times, the amendments to the Grain Act could and would shift the purpose of the Grain Act away from protecting producers' interests and expose them to financial harm by eliminating the requirement for grain buyers to post security bonds.

It would also dismantle the Grain Appeal Tribunal, which protects producers from unscrupulous behaviour on the part of grain companies, and eliminates the commission's services that independently determines the quality and quantity of grain delivered, returning producers to the position of not knowing if they are receiving fair payment.

Agriculture union president Bob Kingston says:

These changes will hurt grain producers just like the Conservative’s effort to strip farmer control of the Canadian Wheat Board. They also threaten the quality advantage Canadian producers enjoy over competitors.

The Canadian Grain Commission has served as an independent arbitrator working to settle disputes when they arise about the quality and quantity of grain that producers bring to the market. Typically this function protects producers and makes sure that they are fairly paid by the powerful companies which buy and export.

Canada's reputation for top quality grain is protected by the grain inspection services supplied by the Grain Commission. We understand that if this bill is accepted, there will be around 200 jobs lost, in other words, inspectors who are there to ensure quality and to protect Canadian citizens and our customers.

The commission also provides independent, objective and comprehensive information about the quality and quantity of Canadian grain that is crucial to the international marketing efforts of the Canadian Wheat Board.

The proposal that we have before us would diminish the Canadian Grain Commission by killing the commission's inward inspection and weighing service, leaving producers disadvantaged in their dealings with grain companies when it comes to determining grain weight and grade.

With a loss of the commission's weighing and grading service, producers may not be paid for the quantity and quality of grain delivered. Currently, the Canadian Grain Commission routinely revises upward grain grades and corrects quantity measurements, resulting in fair payment to producers. While producers have the option to hire a private company to grade and weigh their grain under the Conservative proposal, no companies capable of this task exist today, so once again we are moving forward without crossing the t's and dotting the i's.

We do not have a plan. We have not done the research to ensure there will be no problems if we move ahead with this bill.

Another point of this bill will eliminate the requirement for grain buyers to post security bonds and expose grain producers to financial harm in the event of grain buyer bankruptcy or refusal to pay. It also dismantles the Grain Appeal Tribunal, which protects producers and the Canadian Wheat Board from unscrupulous behaviour on the part of grain companies.

In Vancouver alone it is normal for more than 100 appeals to be launched in a day. These changes may result in increased costs to producers with a shift to a for profit service delivery model.

I would just like to emphasize that the Canadian Grain Commission and the Canadian Wheat Board's collective marketing strategies that we have developed exist to protect producers, often from the profit-making motivations of the large multinationals. We have seen that before and we see that today.

What is also disturbing is that Bill C-13 poses a risk to Canada's international reputation. Our grain is in demand because no other country offers a quality guarantee backed by a system of government inspections as stringent and as comprehensive as is done in Canada.

It is also there to protect our quality brand. Canada even has programs and procedures to prevent Canadian grain from being mixed with imported U.S. product to ensure the integrity of Canada's quality guarantee. According to the report “Threatened Harvest: Protecting Canada’s world-class grain system”, put out by the Canadian Centre for Policy Alternatives, there could be a problem with the quality and safety of the grain because of a lack of inward inspection.

Along with Canada's international reputation as a producer of the highest quality at risk is the quality premium paid to Canadian producers. Once this quality incentive to ship Canadian grain separate from American grain is lost, we expect Canadian grain will be shipped over land, mixed with the lower quality American product and shipped through U.S. ports.

We do not have to be experts in agriculture or have a PhD. to understand that, by doing this, the quality of our product goes down. As the quality goes down, then our reputation as an exporter of grain goes down.

I would also like to quote from a press release from the Canadian Centre for Policy Alternatives, which says:

The bill would also end an established security program for farmers that guarantees they are paid for the grain they deliver, thereby increasing farmers’ risk of catastrophic financial losses if a buyer cannot, or will not, pay for delivered grain.

“In this global economic downturn, and with no workable alternative in place, the government is kicking away a key pillar of financial stability for Canadian grain producers,” says CCPA Research Associate Dr. Jim Grieshaber-Otto.

I have met Mr. Grieshaber-Otto, who wrote the report. We need to pay attention to what he said. The press release goes on:

If these and other controversial government proposals are implemented, they would:

reduce the reputation and competitiveness of Canadian wheat in international markets;

decrease the price premium Canadian producers now receive for a distinctive product;

increase the risk of food-safety problems; and

augment the power of huge U.S.-based multinational grain companies at the expense of Canadian producers.

I would also like to quote from a press release put out by the National Farmers Union, another group that is very upset with the bill. It represents many farmers across western Canada. It states:

The bill will add tens of millions of dollars of extra cost to farmers. The CWB and farmers will have to spend their own money to replace the destruction of independent testing by the Grain Commission. Regardless of the extra money spent by farmers, the tests will still not be seen to be independent and unbiased. Regardless of whether it is the Canadian Wheat Board that does the test or a contracted private testing company, the testing results will not have the credibility or standing that the current Canadian Grain Commission test has.

According to the National Farmers Union press release:

Bill C-13 is aimed at deregulating the grain industry, and would fundamentally change the mandate of the Canadian Grain Commission...“It removes the requirement that the CGC operate as a public interest watchdog that regulates the overall grain industry in the 'interest of producers'. Instead, it changes the CGC's role to become a passive service provider that provides grading, weighing and inspection services to grain companies on a fee-for-service basis. Farmers' protections will be reduced to a minimum, with plenty of loopholes for companies to circumvent those limited protections.

Bill C-13 would eliminate inward inspection and weighing of grain, thereby undercutting the CGC's ability to maintain high-quality standards, and putting grain farmers and consumers at risk.

It is for this reason that today I move:

to delete all the words in the motion following “That”, and replace them with the following:

“Bill C-13, An Act to amend the Canada Grain Act, Chapter 22 of the Statutes of Canada, 1998 and Chapter 25 of the Statutes of Canada, 2004 be not now read a second time, but that it be read a second time this day six months hence”.

[Wayne Easter, Liberal, Malpeque, PE]

Mr. Speaker, I, too, listened to the member's remarks and appreciated them. As well, I appreciate the tremendous work that this member does on the Standing Committee on Agriculture and Agri-Food.

I know that he was there during the original hearings that we had on the Canadian Grain Commission. In the last Parliament the government introduced Bill C-39. There was a lot of opposition to Bill C-39 and it died on the order paper. I would have thought that the government, by introducing Bill C-13, would have changed the bill to accommodate those concerns, and there are many. I outlined them in my remarks earlier.

I think the key concern is that the bottom line principle in Bill C-39, previously, and Bill C-13, now, changes the mandate of the Canadian Grain Commission from being in the interests of producers to being in the interest of industry.

This Canadian Grain Commission has been around for a long time. In fact, it has put Canada as the number one reliable supplier of quality grains in the world. This undermines our being a quality grain supplier, but more so undermines the protection for producers.

Is the government just not listening? Does it not care about producers? How is this government bill going over in Quebec relative to that issue? I wonder if the member could comment.

[André Bellavance, Bloc, Richmond—Arthabaska, QC]

Mr. Speaker, I thank my colleague very much for his question.

At the end of my speech, I spoke of the report that was presented. Bill C-13 does take food safety into account. We are aware of the possibility of certain risks. According to the report, Bill C-13 is forgetting the lessons learned about the danger of reducing public inspections. The bill would, in fact, eliminate the independent governmental inspection of grain delivered to the main silos in Canada, and would leave the grain companies free to organize their own inspections.

Not wishing to rub salt into any wounds, I would point out that this was exactly what we learned in committee. We were told that a permanent employee of the Canadian Food Inspection Agency was let go because he provided his union with a document indicating that the government was preparing to deregulate, and in fact had already begun, as far as the number of inspectors was concerned. We are all aware of what happened in the listeriosis crisis. There is reason for the general public, and the consumers of food items, be they meat or grain, to be very worried about the direction the government is taking with respect to food safety.

“Keeping pesticide-treated grain, glass, rodent excreta and other dangerous contaminants out of Canada’s food grain system is too important a responsibility to hand to grain companies,” said Scott Sinclair, senior researcher for the Canadian Centre for Policy Alternatives study I mentioned earlier. We certainly have reason to be concerned about this government's policy.

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

Mr. Speaker, I thank my colleague for his very interesting and informative speech on the Canadian Grain Commission. He referred to food safety. I would like to know his thoughts on that subject. Is there a connection between Bill C-13and food safety in Quebec and Canada?

The House resumed consideration of the motion that Bill C-13, An Act to amend the Canada Grain Act, chapter 22 of the Statutes of Canada, 1998 and chapter 25 of the Statutes of Canada, 2004, be read the second time and referred to a committee.

[André Bellavance, Bloc, Richmond—Arthabaska, QC]

Mr. Speaker, I am pleased to speak today to Bill C-13, An Act to amend the Canada Grain Act, chapter 22 of the Statutes of Canada, 1998 and chapter 25 of the Statutes of Canada, 2004.

This bill is exactly the same as former Bill C-39. The number C-13 may be unlucky, because the government does not seem to have learned from its mistakes. The previous bill had serious shortcomings. My speech today will focus on many aspects of the bill that should be improved so that it better serves grain producers and the industry.

Canada is in the midst of an economic crisis. Since the government introduced Bill C-39, we have learned that there will be job losses related to the proposed changes to the Canadian Grain Commission. It is expected that jobs will be lost because of the elimination of the Grain Appeal Tribunal, the end of registration and the cancellation of receipts, and the end of inspections and mandatory weigh-overs. In all these areas where the government wants to make changes, jobs will clearly be lost. This does not come as good news at a time when thousands of jobs are being lost. Passing this bill will unfortunately cause collateral damage, to use more military language, and people will find themselves on employment insurance.

The job losses will be concentrated in the ports of Vancouver and Thunder Bay. Jobs will also be lost in Winnipeg, mainly in inspection. In the longer term, other jobs could be cut in other regions, including Quebec. Grain is weighed and assessed in the ports of Montreal and Quebec City.

The most telling proof that this bill is a product of the Conservative ideology is that the government has not followed a single one of the recommendations made by the Standing Committee on Agriculture and Agri-Food, a committee on which you, Mr. Speaker, have had the pleasure of sitting for some time and where we have had the opportunity to work together. That committee examined Bill C-39 and made recommendations. It also studied a report from Group Compass Canada. The government has changed not one word in Bill C-39, now Bill C-13.

There are, therefore, a number of elements of uncertainty in this bill. We must remain vigilant. The reform of the Canadian Grain Commission is taking place in a specific context. We know the Conservatives are trying their best to dismantle the collective marketing mechanisms that protect the interests of producers. I am thinking of course of such things as the Canadian Wheat Board, but also of everything surrounding the current Doha round of negotiations in Geneva. Moreover, once again last July there was a text on the table that placed the supply management system in jeopardy. That text was studied by seven countries, but Canada was not one of them. We did, however, have two ministers there, the present Minister of Agriculture and Agri-Food and the former Minister of International Trade, Michael Fortier, who was not re-elected.

The two of them were in Geneva to follow the discussions. The text that was on the table placed the supply management system in jeopardy. At the end of the negotiations, which fortunately did not result in an agreement between the countries, the two ministers expressed disappointment that it had not. Understandably, the sword of Damocles is still hanging over the heads of supply-managed farmers, and I need hardly tell hon. members there are very many such farmers in Quebec. The supply management system accounts for over 40% of Quebec's agricultural economy.

That being the case, great vigilance is required when we are examining any government bills relating to agriculture. What is more, the Conservative government has appointed a friend of the minister to head the Canadian Grain Commission. One might well wonder whether the new commissioner will defend the producers' interests or the minister's, particularly since the mandate of the Canadian Grain Commission has been modified. It is no longer required to act in favour of producers.

It was clearly written into the commission's mandate, yet it has disappeared from the bill. Any time bills deal with issues that directly affect producers, our focus should continue to be the economic health of agricultural producers.

I was talking about the chief commissioner, Elwin Hermanson, a former Reform Party member from 1993 to 1997. The Minister of Agriculture was Mr. Hermanson's campaign manager in 1993 when he first ran for election, and from 1993 to 1997, the minister was the constituency office coordinator for Mr. Hermanson, who appeared before the committee. In any case, while I do not mean to impute any motives, we can nevertheless ask ourselves if the head of the commission will have our producers' interests, first and foremost, in mind.

The government is implementing some recommendations of the Standing Committee on Agriculture and Agri-Food, such as modernizing the mandate of the Canadian Grain Commission. One might now wonder if it did so correctly. I want to make it clear that, based on the speeches I have heard from my various colleagues and what we have also talked about in committee, everyone agrees that the Canadian Grain Commission's mandate must be modernized. The question we must now ask, and what we need to gauge here today is this: does Bill C-13 address the worries and concerns that have been raised, any more than Bill C-39 did in the past?

The Bloc Québécois is skeptical about some of these measures. That is important to note. We are skeptical about the elimination of the Grain Appeal Tribunal and the payment security program, because we do not know what will replace it. The Bloc Québécois also condemns the fact that the government has not introduced an office of grain farmer advocacy, as the Standing Committee on Agriculture and Agri-Food recommended. I will have more time later to talk about some of the committee recommendations that have not been included in this bill.

What does the bill do? The government is changing the mandate of the Canadian Grain Commission in such a way that, in addition to the interests of grain producers, the commission would also consider the interests of the industry as a whole, including grain processors.

In order to clarify the Canadian Grain Commission's mandate, it will be split into two parts by Bill C-13. Part one will set out the CGC's core mandate to establish and maintain standards of quality for Canadian grain and regulate grain handling in Canada to ensure a dependable commodity for domestic and export markets. Part two will establish that the CGC shall specifically protect producer interests with respect to deliveries to elevators and grain dealers, access to binding CGC determination of the grade and dockage of grain deliveries, and the allocation of producer cars.

At present, the mandate of the Canadian Grain Commission is to, in the interests of producers, establish and maintain standards of quality for Canadian grain and regulate grain handling in Canada, to ensure a dependable commodity for domestic and export markets.

I would like to point out that clause 3 of Bill C-13 amends section 13 of the Canada Grain Act by removing the words “in the interests of producers” from the object to establish and maintain “standards of quality for Canadian grain and regulate grain handling in Canada to ensure a dependable commodity for domestic and export markets”.

As we stated earlier, like the Standing Committee on Agriculture and Agri-food, the Bloc Québécois supports modernization of the Canadian Grain Commission's mandate. Our party recognizes that the commission must be able to consider broader interests, such as public health, preserving the enviable reputation of Canadian grain producers, and other interests.

The Bloc Québécois is also sensitive to the concerns of grain producers who believe that Bill C-13 is drafted in such a way as to reduce the protection it affords grain producers. It should be understood that since Bill C-39 was first introduced before the election was called, therefore dying on the order paper, much water has flowed under the bridge. We have had all kinds of meetings, correspondence, telephone calls, visits from different people affected by the changes to the mandate of the Canadian Grain Commission.

That gave us a chance to weigh the pros and the cons of this bill. The cons are definitely adding up.

The National Farmers Union has told us that it is essential to preserve the language of the existing Act, which includes the expression “in the interests of producers”, to describe the purpose of the Canadian Grain Commission and the standards of quality in the regulations respecting grain handling operations in Canada. In fact, the first recommendation in the COMPAS report was as follows:

The Standing Committee supports a redefined mandate of the Canadian Grain Commission as more in line with the practical reality of the Canadian grain industry and it recommends that any eventual bill clearly protect the interests of grain producers.

We know that the Conservative government is allergic to collective marketing mechanisms and instruments that enable producers to earn a fair market return. Deregulation and reducing constraints on the free market are key elements of their ideology, elements that, unfortunately, come through in this bill, as I will demonstrate.

The Canadian Grain Commission must not become another Canadian Food Inspection Agency. That organization has lost a lot of credibility over the past few years because it has been forced to choose between the two components of its dual mandate. Agricultural producers in Quebec and Canada are quite right to distrust this government, which has set its sights on the Canadian Grain Commission. It is clear that deregulating everything under the sun has not produced the desired results with respect to protecting producers.

The Bloc Québécois is ready to look at what can be done with the Canadian Grain Commission's mission. We are ready to do that. Can a bill like this really be amended? A lot of people have their doubts.

One of the problems with this bill is that it suggests that an office of grain farmer advocacy is no longer necessary. I strongly disagree. As for the protection of the interests of agricultural producers, we deplore the fact that the government rejected the third recommendation of the parliamentary committee, proposing the establishment of an office of grain farmer advocacy that would have reported directly to the Minister of Agriculture and Agri-Food.

One might wonder if this is not another sign that the government wants to divest itself of any responsibility and thus deregulate the services of the Canadian Grain Commission. The mandate of the office of grain farmer advocacy, whose role would be similar to that of an ombudsman, would be to ensure that producers understand their rights under the act, and to defend their interests in disputes with other stakeholders.

We had a short briefing, an information session, with officials on this, and I asked a question on this very subject. I can report that I was not at all satisfied with the answer.

Like the parliamentary committee, we think that such an office would have ensured that the interests of producers are defended in disputes with the other stakeholders involved, including the Canadian Grain Commission. We believe that the communication, consultation, liaison and complaint investigation responsibilities assumed by such an office would have strengthened Canada's grain quality assurance system.

Another problem is the elimination of grain appeal tribunals. What does this bill do? The grain appeal tribunal hears the complaints of grain producers and companies that are not satisfied with the grades given by the commission's inspectors. The chair of the tribunal is an authorized grain inspector, but acting at arm's length. The other members of the tribunal come from the grain industry.

The tribunal's position within the Canadian Grain Commission limits its legitimacy and perceived effectiveness. Moreover, clause 14 of the bill proposes to abolish grain appeal tribunals, which are currently established under sections 35 to 38 of the Canada Grain Act. From a reading of clause 31, on page 12, the proposed subsection 70(5), we understand that, in case of a disagreement over a ruling made by the chief inspector—who is the first level of appeal—grain producers will no longer be able to turn to the grain appeal tribunal. They will have to turn to the regular courts. Hon. members will understand that the message being sent to producers is quite simply that that have to fend for themselves, using their own money, as if they had any to spare, and defend themselves before the courts. That not only can be very costly, it can also take a very long time before a ruling comes down. We know all the things that can slow down the regular courts.

We note that the parliamentary committee did not address this issue. The COMPAS report commented that the Canadian Grain Commission's “grain appeal tribunal has earned some plaudits for effectiveness”.

COMPAS continued, “Our impression is that the Tribunal is respected for its role in grading disputes, although at times some stakeholders sensed excessive influence on the part of the Office of the Chief Inspector.” We heard that in committee as well. It was also stated that there is always room for modernization and improvement, but in my opinion that does not mean abolishing the tribunal. The Bloc Québécois awaits the government's explanations for this amendment.

Then there is the elimination of inspection and mandatory inward weighing, which is what the bill would do. Weighing and inspection of grain is carried out by the Canadian Grain Commission and is mandatory on bulk shipments overseas but optional for container movement or for exports to the United States.

Inward inspections are the weighing and grading that take place when railcars or trucks arrive at transfer elevators or terminal elevators. The Canadian Grain Commission then provides third-party weighing so as to forestall errors and to provide assurance to producers.

With its Bill C-13, the government is proposing that inward inspections take place only at the request of the shipper, but that outward weighing and shipping remain mandatory. Terminal and transfer elevator operators will be required to allow access to service providers who will do the weighing and inspection.

While the Canadian Grain Commission will no longer be involved in the delivery of this optional service, both shippers and elevator operators will have access to binding Canadian Grain Commission arbitration in the event of dispute over a grain grade.

Like the Standing Committee on Agriculture and Agri-Food, the Bloc Québécois supports optional inward inspection, as proposed by the government. We have been told that inward inspection is no longer universally required. According to COMPAS, “About half of railcars unloading at terminal elevators originate at primary elevators of the same company.”

Rather than proceeding with complete deregulation, we should find a compromise for such cases, perhaps continuing to pay the costs for those who opt for this inspection. However, we also have questions about food safety inspections. I will come back to that if there is time.

We also agree with the arguments presented in the committee report to the effect that the Canadian Grain Commission could abandon kernel visual distinguishability when this method is replaced by one that is more efficient, according to recommendations 5 to 7 of the Standing Committee on Agriculture and Agri-Food. Contracting out of inspection services must be evaluated in a pilot project and the government, after three years, must evaluate the real impact.

We must be careful, however. Since inward inspection is optional, this could increase unit costs and prices by decreasing economies of scale. Making it optional would likely put smaller grain companies that do not have a terminal elevator at a disadvantage in terms of competitiveness. Inspection and weighing fees are collected from the farmer at the primary elevator. Optional inward inspection would benefit larger companies that have a terminal elevator by allowing them to avoid payment of the fees and offer a better price to farmers. Grain companies that have a better geographic location will be in a better position to take advantage of mixed shipments.

It is therefore important to promote competition in the grain handling system by helping the smaller companies. That is why we believe that the Canadian Grain Commission must have sufficient funding so that the commission can maintain efficient and timely services for both producers and smaller handlers who need such services for transactional purposes.

There are many other elements I could talk about, but I will just mention certain irritants in this bill. As I said, we received a huge amount of correspondence indicating that there were serious flaws in this bill. For example, the Agriculture Union said that if Bill C-13 were passed, some 200 commission employees, most of them front-line service providers, would lose their jobs.

The Agriculture Union, a component of the Public Service Alliance of Canada, represents most of the employees of the Canadian Grain Commission. Obviously, these people met with us and shared their concerns.

I also want to mention that I have here a report from the Canadian Centre for Policy Alternatives that talks about the problems with this bill. The report is entitled Threatened Harvest.

It is important that the members of this House be aware of this report and the other elements that show that Bill C-13 has huge flaws.

The House resumed from March 3, 2009 consideration of the motion that Bill C-13, An Act to amend the Canada Grain Act, chapter 22 of the Statutes of Canada, 1998 and chapter 25 of the Statutes of Canada, 2004, be read the second time and referred to a committee.

Business of the House

[Jay Hill, Conservative, Leader of the Government in the House of Commons]

Mr. Speaker, I thank my hon. colleague, the House leader for the official opposition, for his multitude of questions.

First of all, as he indicated, today we will continue debate on Bill C-14, the organized crime bill. I would point out that it is thanks to the Minister of Justice, whose leadership this morning overcame an opposition tactic aimed at delaying Bill C-14 that we do have an agreement to move that bill forward. As a result of the minister's intervention, Bill C-14 will in fact be sent to committee at the end of today, pursuant to a special order of the House.

Tonight the House will consider a take note debate on the international conference on Afghanistan hosted by The Hague.

As I mentioned earlier, we adopted a special order for Bill C-14. Unfortunately that special order did not cover the second justice bill that is slated for debate today. In fact it is conceivable we would have already been into that debate had it not been for the delaying tactics of the opposition earlier this morning.

This is the bill that the hon. member referred to, Bill C-15, the drug offences bill. It is another key piece of our government legislation that will help curb gang violence, yet we do not see it moving quickly through the House. That said, I am hopeful we can complete the bill today or have it completed at the latest tomorrow, provided the NDP does not invoke another delaying tactic as it did this morning.

Following the drug offences bill, we have scheduled for debate Bill C-7, marine liability; Bill S-3, energy efficiency; and Bill C-13, the Canada Grain Act. All of these bills are at second reading.

On Monday, pursuant to a special order adopted yesterday, we will complete the third reading stage of Bill C-2, the Canada-EFTA free trade agreement bill. After considerable delay in this chamber, it will be nice to move that bill over to our colleagues down the hall in the Senate.

We will continue next week with any uncompleted business from this week, with the addition of Bill C-5 regarding the Indian Oil and Gas Act, which is at report stage and third reading stage, and Bill C-18 regarding RCMP pensions, which is at second reading. We will add to the list any bills that are reported back from the various committees.

Tuesday, March 31 shall be an allotted day.

In reference to the upcoming justice bills that the member might be referring to when he referred to the remand legislation, he is going to have to stay tuned. We will be bringing that forward very soon. I am sure he will be very pleased with the result and will want to move very quickly once it hits the floor of the chamber.

As he knows, the government is very transparent when it comes to government expenditures, including the upcoming expenditures of the accelerated economic stimulus contained in the $3 billion under vote 35. All of that of course will be revealed to the Canadian public and to Parliament in good time as we make those investments on behalf of Canadians from coast to coast.

[Jay Hill, Conservative, Leader of the Government in the House of Commons]

Mr. Speaker, the hon. House leader for the official opposition has many questions for the Thursday question and I will try to get to all of them.

Today we will continue debate on Bill C-14 on organized crime, which he mentioned. Following Bill C-14, we will consider Bill C-15, drug offences, and Bill C-16, the environmental enforcement act in that order.

Tonight we will complete the debate on the first report of the Standing Committee on the Status of Women.

Tomorrow we will begin debate at third reading of Bill C-2, the Canada-European free trade agreement and continue with any unfinished business that carried over from today.

When the House returns from the constituency week, we will continue with the business from this week, with the addition of Bill C-9, transportation of dangerous goods, which was reported back from committee.

You can add to the list for the week we return, Mr. Speaker, Bill C-7, marine liability, Bill S-3, energy efficiency, and Bill C-13, Canada grains, which are all at second reading and any bills that have been reported back from committee by then.

As to one of the questions that the member specifically mentioned, the last day in this supply period shall be on Tuesday, March 24, when the House will vote on supplementary estimates C, interim supply and the interim supply bill. As he noted, it is a very important day as these are the resources necessary to provide the stimulus to which we have all been looking forward and which Canadians are greatly anticipating.

Hopefully, the Senate will have passed the budget bill, Bill C-10 by then. In fact, as my colleague mentioned, my understanding is the opposition has suddenly discovered the parts of the budget bill that pertain specifically to the extension of employment insurance benefits, which will come into effect immediately upon royal assent of Bill C-10, the budget implementation act. Therefore, rather belatedly, the Liberal senators have decided to work with the Conservative senators in the other place and get the bill passed expeditiously. I hope that takes place this afternoon. It would be therefore my hope as well that royal assent could take place as early as this evening and we would see that bill enacted as quickly as possible.

As to the reiteration of my colleague's support for Bill C-14 and Bill C-15, our two latest justice bills, I welcome his support and I appreciate that. We are open to moving these bills through all stages as quickly as possible. Failing that, we would look to put up a minimum number of speakers, as we have done on many pieces of legislation already in this session, to move legislation through as quickly as possible. The problem, as my hon. colleague well knows, is not with the official opposition on or of the Conservative Party, the Conservative government, but with the other two parties, which are unwilling to do so.

[Jay Hill, Conservative, Leader of the Government in the House of Commons]

Mr. Speaker, I thank my hon. colleague for those questions. It just seems like every Thursday, the Thursday question becomes the Thursday questions and becomes a longer and longer list.

Yesterday, the House adopted the budget implementation bill, which is now before the Senate. I would take this opportunity to urge all senators to deal with the bill quickly so that the funds that are provided by it will begin to flow and to help our country and Canadian families weather this economic storm as quickly as possible.

Today, we are continuing debate on the opposition motion.

Tomorrow, we will begin debate on report stage of Bill C-2, the Canada-European free trade agreement, followed by Bill C-13, the Canada grains, and Bill C-7, marine liability.

Monday, March 9 and Tuesday, March 10 shall be allotted days. As to the last day in this cycle, I am pleased to announce that it will be sometime during that week after our constituency week when members return to their ridings.

On Wednesday, we will continue with the Canada-European free trade bill. It will either be at report stage or third reading, depending on the progress that we make tomorrow.

When the debate on Bill C-2 is complete, we will call for second reading debate on Bill C-14, the organized crime bill, and Bill C-15, the drug offensive bill.

As my hon. colleague knows, the official opposition House leader, there have been discussions with all parties and, at this point in time, despite the acceptance and, indeed, the willingness of the government to move forward with these two crime bills as expeditiously as possible, unfortunately that is not the case with all parties and therefore we will not be able to proceed as quickly as possible.

However, on behalf of all Canadians who are worried about their safety and who want to move forward with this type of legislation, I do thank the hon. member and his party, the Liberal Party, for their support to try to move these bills very quickly through the process.

Following the justice bills, we will continue with the uncompleted business schedule for tomorrow, plus the new bill that was tabled this morning, Bill C-17, An Act to recognize Beechwood Cemetery as the national cemetery of Canada. I understand there may be interest in expediting this bill. I would hope, unlike the justice bills, that perhaps we can get agreement from all four parties to move very quickly with this bill at all stages and move it through.

As to private member's Bill C-285, I am always interested in discussing ways in which we can move quickly with legislation. This government certainly is interested in getting action on behalf of Canadians as fast as possible on all legislation that will positively impact on their lives. I am always open to those types of discussions.

Canada Grain Act

[Wayne Easter, Liberal, Malpeque, PE]

Mr. Speaker, as I indicated a moment ago, I am somewhat discouraged to speak at second reading of this bill. I say discouraged because Bill C-13, in the second session of the 40th Parliament, is exactly the same bill with exactly the same extensive flaws and shortcomings that were contained in the old Bill C-39 introduced in the 39th Parliament, originally on December 13, 2007.

I would refer government members, and especially the minister and his bureaucrats at Agriculture and Agri-Food Canada, to the Hansards of February 1, 2008 and February 15, 2008 where extensive concerns about this bill were outlined in this House at that time.

Where have the minister, the bureaucrats at Agriculture and Agri-Food Canada and those at the Canadian Grain Commission been for the last year? This bill could have come in this House substantially improved. We could have started at a higher level. However, this bill is coming in with the same old flaws that were in it previously. Very prominent in those concerns was the fact that the Standing Committee on Agriculture and Agri-Food's report on the Canadian Grain Commission was all but ignored.

The chair of the committee at that time, who signed off on that report, was the very minister who now puts forward this flawed bill. One would think the Minister of Agriculture would have more respect for his own signature than to sign a report making certain recommendations and then ignoring those recommendations when he has the authority as a minister to put forward the bill.

However, we all know that the Minister of Agriculture, when it comes to listening to farmers, is about as stone deaf as one can get. Even so, one would think that at least the department or the Canadian Grain Commission would have addressed some of those concerns.

We also know that the person who happens to be chief commissioner at the Canadian Grain Commission is a friend of the minister. In fact, I would wonder if that friend is more interested in protecting the minister's desires and programs than he is of protecting the very producers who he is supposed to represent.

In my question to the parliamentary secretary a moment ago, I outlined that there was absolutely no cost benefit analysis done in terms of this proposal on changes to the Canadian Grain Commission by the government. Now that is not unusual for the government. We know it did not do a cost benefit analysis when it exercised its attack on the Canadian Wheat Board.

Finally, the Parliament of Canada shut the Prime Minister and the minister down in terms of what they wanted to do in undermining the Wheat Board. Even the court system had to come in a couple of times and shut the Prime Minister down in terms of his undermining of the Canadian Wheat Board.

The government has a history of trying to undermine the very institutions that protect farmers in western Canadian, the Canadian Wheat Board and the Canadian Grain Commission. The Canadian Grain Commission does have protective measures for grain producers right across the country.

I would like to take the opportunity to put one thing that I probably should put on the record in terms of the way the minister has used his position to attack institutions that in fact protect farmers in this country.

I will quote an article from the Melfort Journal on February 24. The minister stood in this House and attacked the contingency fund losses of the Canadian Wheat Board, which was the wrong thing to do. In fact, that hurt grain producers commercially.

The quote from the Melfort Journal says:

Last year, the CWB registered $7.2 billion in returns for western producers, a year which saw nearly a 50% increase in wheat revenues and nearly a 100% increase in barley and durum revenues from the previous year.

Simply put, the board outperformed its international competitors, an outstanding performance that should be recognized even by the board's most strident critics...and you sure shouldn't expect any government minister to misuse their offices and authority by telling a small portion of the story to advance their political agenda. This is an issue that goes well beyond whether you support the board or not.

I make that point because it is extremely important for Canadians to understand that the minister and the government know no low when it comes to attacking the various institutions that are there to protect the farmer community, because they clearly favour ensuring that greater benefits, greater authority or greater power accrues to the industry side of the equation, mainly the grain companies and the railways.

I was in Alberta on the weekend, at a great event in Edmonton that our party was doing. I could not help but think, when I was talking to producers there and looking back over the years, that when I first went west as a farm leader in the late 1970s, western Canadian farmers had a branch line and railway infrastructure that went into nearly every community. The cooperative movement was strong at that time. Shapiro, from the United States, had come up and talked about a pool system, and farmers in the west set up a pool system. They had Manitoba Pool Elevators, the Alberta Wheat Pool, the Saskatchewan Wheat Pool, and organizations and cooperatives working for the farm community, so farmers had protection on that front as well.

All that is gone. Now we have grain corporations that are interested in their shareholders and the profits of their shareholders elsewhere in the world, and not in those primary producers in those rural communities.

The elevator system within that branch line infrastructure was fully paid for by primary producers. Yes, they were wooden elevators, but they were in every small town and they were fully paid for. There was no debt, and they were paid for by farmers. Now we have a system in which big grain and big railways are trying, almost on a daily basis, to close down branch lines and abolish service to those small communities. As a result, grain has to be trucked on the road, which taxpayers pay for at the provincial level. The steel that Canadian taxpayers paid for on those railways has been sold to the likes of Brazil and elsewhere, and at the end of the day farmers have poorer service and less service. Their branch lines have been torn up and they do not have the protection of the cooperative movement they once had.

The only protections farmers have any more in western Canada are, one, the Canadian Wheat Board, which the Prime Minister has tried everything to undermine and undercut, and two, the Canadian Grain Commission, which this bill is all about. Through this bill the government is trying to weaken many of the protections within the bill itself.

Looking at the bill itself tells much about the attitude of the government. In the 2008-09 report on plans and priorities, the Canadian Grain Commission outlines its mandate. The Canadian Grain Commission administers the provision to the Canada Grain Act. The Canadian Grain Commission's mandate, as set out in the act, is to:

...in the interests of the grain producers, establish and maintain standards of quality for Canadian grain and regulate grain handling in Canada, to ensure a dependable commodity for domestic and export markets.

The reference to the interests of primary producers is what is done away with in this particular bill. In fact, the mandate changes to say that it is more in the interests of industry than it is in those of primary producers. Again, I think that goes to my original point and my earlier question to the parliamentary secretary, which was that the government has a record of failure when it comes to the farm community. It is even extending it into this bill by making the point that it is taking away primary producers as the main interest of the mandate.

The president of the National Farmers Union, Stewart Wells, made a few key points that I want to put on the record in terms of what this bill would do to the farm community. He says in his correspondence, “The amendments will remove the requirement that the CGC operate as a public interest watchdog that regulates the overall grain industry 'in the interests of producers'. If this bill passes, the grain industry would become virtually self-regulating, and the CGC's role will be reduced to being a passive 'service provider' that provides grading, weighing and inspection services to grain companies on a fee-for-service basis. Farmers' protections will be reduced to a minimal level, while the legislation leaves the door open for companies to be able to circumvent those limited protections”.

He goes on to say:

Canadian farmers have not advocated any weakening of the CGC regulatory role. At a time when grain companies like Viterra, ADM and Cargill are consolidating their hold over the market, it is obvious there needs to be a mechanism in place to provide farmers with protection.

I would make the point that the Government of Canada is undermining that protection in this instance.

Mr. Wells goes on to say:

The current system allows grain inspectors to catch contaminated, off-condition or incorrectly represented carloads while they are being emptied, weighed, and elevated, and before they are mixed with large quantities of other grain. Eliminating this provision will have a negative effect on farmers’ bottom line.

The amendments also call for eliminating the provision that grain dealers post a security bond before they can be licensed by the CGC. This provision was put in place to protect farmers who would be left holding the bag if the grain company goes bankrupt. The last point Mr. Wells makes is this:

Eliminating this requirement will not save farmers any money. It will, however, greatly increase their risk.

This is the end of Mr. Wells' comments, but they are all valid. They show a weakening of farmers' protection.

The amendments weakening farmers' relative position have been part of the minister's overall record of failure. In his December 13, 2007, introduction to the Canadian Grain Commission's performance report, the minister said that he introduced Bill C-39, an Act to amend the Canadian Grain Act to Parliament. He went on to talk about how his proposed reforms were consistent with the goals expressed in the so-called Growing Forward framework.

I am worried about Growing Forward. I mentioned earlier, in my questions to the parliamentary secretary, that if Growing Forward is the example the minister is using for the government's position, then farmers are in trouble in this country. We have seen 3,600 farmers go out of business each year. We have seen the debt load of farmers go up to $54 billion, four times what it is per farm in the United States. We have seen the government cancel the cost of production program, a commitment by the Prime Minister in the 2006 election. He broke his word, violated his word, and cancelled cost of production in the estimates this time. That is part of Growing Forward.

We know that in times of declining income, AgriInvest and AgriStability in fact pay out less money than the old CAIS program that the Prime Minister hated so much.

If Growing Forward is the way and this is another example of Growing Forward, I say to the farm community, “Wake up and smell the roses”, because it is a decline. It is an undermining and a deteriorating of farmers' protective measures in this country.

As I said, farmers should be worried. Let me point out some of the flaws in this particular bill. Clearly Bill C-13 does not reflect the unanimous recommendations of the Standing Committee on Agriculture and Agri-Food. For the minister to imply otherwise is misleading.

Why is there this contempt for the committee, and why is there this contempt by the minister for his own Conservative colleagues on that committee? His own signature was on it. Therefore, does he even undermine his own integrity?

The fifth recommendation in the committee report called for a cost-benefit analysis. No cost-benefit analysis has been done on the impact of Bill C-13 with respect to the contracting out of grain inspections called for in that report. In fact, the government response tabled to the original standing committee report said this:

The government considers that inspection and weighing services performed by CGC employees played a considerable role in enhancing the marketability and reputation of Canadian grain. With this in mind, we need to be cautious to ensure the benefits of any changes in the weighing and inspection services are greater than the costs this may impose on the system. The Government agrees that a cost-benefit analysis should be conducted to assess the advantages and costs that would be associated with contracting out these services.

In its response to the committee, the government admitted itself that a cost-benefit analysis should be done, yet no such cost-benefit analysis is provided. Why?

A good friend of the minister is now the chief commissioner of the CGC. He made a couple of points on this issue, and they worry me as well. He said that even without the legislation, the chief commissioner and the Canadian Grain Commission were moving ahead with changes. They have decided to end inspection services at prairie primary elevators this summer, close three prairie service centres and reduce staff.

The chief commissioner said, “The transition away from on-site inspection services means that the CGC will no longer provide official grading and weighing on grain shipments from the Prairies' terminal facilities, nor for export shipments to the United States or domestic mills”.

That is worrisome, because the chief commissioner, prior to the legislation coming in, is already making changes that will undermine our ability to ship the high-quality grain we have become noted for as a country.

I would close by saying this: we believe improvements can be made to the Canadian Grain Commission; however, major amendments will be required of the bill before us. We look forward to that discussion, and I plead with the government to listen to producers this time.

[Rick Casson, Conservative, Lethbridge, AB]

Mr. Speaker, maybe the member and I could get into a little one on one debate if nobody else gets up on questions and comments.

The effect of the arbitration aspect is something that interests me in a personal way that I cannot get into here. However, when a producer finds himself in conflict with the grade of the grain that he has put up for sale, in the past there was a method for a producer to have an arbitrary decision made.

What changes in Bill C-13 would address or enhance that. Do these changes have anything to do with the bigger grain terminals on the prairies, and were they delivered to a local elevator or one of these terminals? I am just not clear on that and maybe the member could help me with that.

[Rick Casson, Conservative, Lethbridge, AB]

Mr. Speaker, I have a couple of issues that I would like my colleague to respond to.

Since the ending of the Crow rate on the prairies, it has changed some of the secondary processing that is going on, on the prairies. The livestock feeding industry is huge in my area and that has come about because of that change. Maybe he could comment on the aspects of the changes we are proposing in Bill C-13 that would help to address the developments that have taken place since the Crow rate ended.

I am also interested in his comments on the security issue. I know I have dealt with an issue in my area where some producers were harmed by the failure of a grain company. He talks about alternative methods. I am not sure if there were alternative methods of ensuring the farmers against loss. I was not at the ag committee when these discussions took place, so maybe he could expand for me and for the House on some of the proposals that were brought forward to replace that security aspect of the Canadian Grain Commission.

[Wayne Easter, Liberal, Malpeque, PE]

Mr. Speaker, I actually wondered if the parliamentary secretary would get to Bill C-13 when he started, but I can understand why he would avoid it. The bill completely ignores the work and the recommendations of the Standing Committee on Agriculture and Agri-Food. The parliamentary secretary and the current minister were part of that committee.

I have a couple of questions for the parliamentary secretary on what he said at the beginning. He went to some length to state that the government was putting farmers first when the direct opposite is true. I believe the government's performance in agriculture is a record of failure. Would the parliamentary secretary agree with me on these points which prove it is a record of failure?

He talked about stable, bankable programs. We now know that AgriStability and AgriInvest, the two new bankable programs from Growing Forward, in times of declining prices, when there is a decline of 15% in terms of income, they actually return $7,500 less than the old CAIS program, which the government opposite railed against.

In terms of AgriFlex and the promised $500 million during the campaign over four years, that is really $190 million of new money over five years. Another broken commitment. It cancelled the cost of production program, the $100 million annually that went to producers. Would he not call that a failure?

Finally, on AgriRecovery, it just does not do the job in terms--