Bill C-18 (Historical)

Marketing Freedom for Grain Farmers Act

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

Part 1 of this enactment amends the Canadian Wheat Board Act to change the governance structure of the Canadian Wheat Board and to make other changes in preparation for the implementation of Parts 2 and 3. Part 2 replaces the Canadian Wheat Board Act with a new Act that continues the Canadian Wheat Board and charges it with the marketing of grain through voluntary pooling. Part 3 provides for the possible continuation of the Board under other federal legislation, while Part 4 provides for its winding up if no such continuation occurs. Finally, Part 5 provides for the repeal of the new Act enacted by Part 2.

Marketing Freedom for Grain Farmers Act

[Yvon Godin, NDP, Acadie—Bathurst, NB]

Mr. Speaker, the member talked about the government keeping its promise. It has made many promises. I recall that before the election the Conservatives promised that they would put this issue to farmers for a vote.

The Conservatives keep talking about the vast majority of Canadians having voted for them, but if I recall the number the Conservatives took office by was just 39%. That means that 61% of Canadians did not want the Conservatives in office but our system put them there.

Now the member is talking about the many promises that her government made. In order for the Conservatives to keep their promise the right thing to do would be to bring the issue to farmers and let them make the decision by voting on it instead of the Conservative Party shoving it down their throats.

Would it not be better to bring the issue to farmers and let them decide on their future? The Conservative Party made that promise before the election. The Conservatives said the issue would be brought to farmers and they would vote on it. The government should stick to what the majority of farmers decide.

[Kelly Block, Conservative, Saskatoon—Rosetown—Biggar, SK]

Mr. Speaker, to be clear, 13 out of 14 re-elected members on this side of the House are from Saskatchewan. Of the 14 ridings, 13 are held by members on this side of the House. We represent farmers in Saskatchewan. Every riding has a rural component to it. We have listened to farmers. We promised that we would remove the Canadian Wheat Board monopoly and we are holding true to that promise.

[Marc Garneau, Liberal, Westmount—Ville-Marie, QC]

Mr. Speaker, I heard the hon. member talk about western farmers wanting to make the changes. At the same time, we know that earlier this summer there was a survey. I do not know how valid the numbers are but they seem to be pretty solid. I think they were based on a participation rate of about 56%. In the case of wheat, as I understand it, 62% of those who responded said that they would like to keep the single desk Canadian Wheat Board as is.

For those 62%, on the assumption that is correct, what would my colleague say to those 62%, assuming that they gave their heartfelt opinion about wanting to keep the single desk?

[Kelly Block, Conservative, Saskatoon—Rosetown—Biggar, SK]

Mr. Speaker, no expensive survey can trump the individual right of farmers to market their own grain.

Our government has been very clear that the economy is our top priority. An open grain market would attract investment. It would encourage innovation and create value-added jobs, like the recently announced pasta plant in Saskatchewan. An open grain market would also build a strong economy for all Canadians.

Western Canadian wheat and barley producers deserve the same opportunities that farmers in the rest of Canada have access to. Our government is committed to giving them the opportunities that they want, that they have asked for and that they deserve.

I urge the member to support the bill.

[Yvon Godin, NDP, Acadie—Bathurst, NB]

Mr. Speaker, I am pleased to speak to Bill C-18, on the Canadian Wheat Board. This bill proposes to dismantle the Canadian Wheat Board and to eliminate the single desk marketing system for barley and wheat in Canada. The bill creates an interim board with voluntary pooling to be fully privatized or dissolved if it is not privatized within five years of the legislation coming into force. No elected directors may sit on the governing board of the interim board.

The government claims that this bill benefits farmers by giving them the market and giving them a choice, but they have no choice when it comes to dismantling the board. On September 12, a majority of farmers voted in favour of maintaining the Wheat Board. The government should drop Bill C-18. The single desk marketing system for wheat, durum and barley is an institution that has been very successful and is an essential component of the Prairie economy.

The bill is dangerous. It will ruin prairie farmers in these difficult economic times. Although the government's decision to dismantle the Canadian Wheat Board has serious implications for farmers, it was made without any analysis of its repercussions and it goes against the wishes of farmers.

Taxpayers do not fund the What Board and the Conservatives do not have a mandate to go against the wishes of prairie farmers.

The Conservatives are acting in the interests of the big American grain companies by interfering in this matter, in order to lower prices and undermine market security for our own farmers.

Let us look at this from a different angle. The Conservatives say that they represent the majority in the West, on the Prairies. That is why they have made this decision. We must not forget that before the election—I would like to see the Conservatives rise and say this is not true—they promised that, if they were elected, there would be a vote on dismantling the Wheat Board. What has happened to that promise? Do they think that they do not have to keep that promise and not go back to face the farmers just because they were elected?

This is how I see things: there are some farmers who want to dismantle the board and who say they do not need it, and there are some farmers who want the board dismantled. However, taking a broader view, we can ask what the Canadian Wheat Board has done over the past 75 years. It has set prices and stabilized production. Looking at my region, we can compare farmers to our fishers.

I hope what happened to the fishermen on the east coast does not happen to the farmers in the west. Fishermen work hard to keep their boats. It costs a lot of money. They have to pay their fishermen and deckhands, but they have no control over prices. The market dictates the price.

As my colleague from Saint John knows, people who were fishing codfish were getting 50¢ a pound. Even last year, they were getting 50¢ a pound and people were paying $4.50 a pound in the stores. As individuals, they have no control on the price. It will be big business that will run it.

I want to use the fishermen as an example for the people of the Prairies so the Conservatives do not fall asleep on this and shove it down their throats because they do not want have a vote. They do not want to give them the democracy that any group should have and be able to vote on it. Lobster fishermen were getting $2 a pound for lobster. People go to restaurants and pay $10.50 for the lobster on their plates. The fishermen are losing their shirts. They do not even have money to fix the engine on their boat when it breaks down.

What will happen to the farmers who are on their own and need to do the marketing themselves. They are lucky right now to have an organization to do it for them, to give it to them on a silver platter. If the government wants to do something for the farmers, it should do what is right. When it says that it received a big majority to make the decision, this is beautiful.

Only 39% of Conservatives got elected. That is not a big majority. However, when a survey was done, 62% of the farmers did not want it. It was 62% who wanted to keep the board and did not want the government to make the change. The government talks about being close to its people. If it is close to its people, why does it not keep its promise to the people? It had promised, just before the election, that there would be a vote on it. Why not allow the farmers to make that decision? What is wrong with that? What is the government afraid of? Why is it afraid of democracy if it believes in democracy? If it really believes in democracy, what is wrong with allowing all the farmers on the Prairies to vote on it and make a decision?

This has been working for the last 75 years.

[LaVar Payne, Conservative, Medicine Hat, AB]

Not now.

[Yvon Godin, NDP, Acadie—Bathurst, NB]

Yes, some are not happy. Some think they will do better and some will do better, but, collectively, it is a big mistake for our country because we are bending on our knees to the Americans. That is what is happening. We are on our knees to the Americans because they want to get rid of it. How many times have the Americans asked us to get rid of the Wheat Board?

[Pat Martin, NDP, Winnipeg Centre, MB]

Thirteen.

[Yvon Godin, NDP, Acadie—Bathurst, NB]

Thirteen times. Does that make sense? For that reason alone, we should say that we want sovereignty in our country. The member for Winnipeg Centre just said that the Americans asked us 13 times to abandon the Wheat Board. Is that not reason enough for keeping it?

Why are the Conservatives worried about a vote. Are they worried about losing?

Are they afraid of losing the vote? All they have been doing since May is trying to destroy our Canadian institutions, whether it be the unions, the Canadian Wheat Board or others. They want to destroy our country. They are handing us over to the Americans—free—by adopting the American system. It is shameful to see how the Conservative government is acting. No democracy. No democracy! The Conservatives should be ashamed of themselves. If they are not ashamed and, above all, if they are not afraid, then they should hold a referendum. They should consult the farmers.

I spoke earlier about the lobster fishermen and groundfish fishermen who earn 50¢ a pound while others earn $10 a pound. They will regret it when that happens. They will have destroyed a system that worked. Collectively, people in western Canada have been successful. The Conservatives are saying that they could have done better. Perhaps there are some who might have, but others would lose their businesses. Rather than having a board that sets prices for them, individual producers will have to set their own prices. Producers will have to hire more staff to market their products for them.

I have no regrets about voting against this bill. I do not believe that the Conservative government has the right to hold a vote here in the House without consulting producers and farmers and giving them the choice of whether or not to abolish the Wheat Board. The two sides agree on this issue. The Conservatives must give the farmers the chance to vote. That is what people from the Prairies are asking. If the Conservatives have any respect at all for farmers, they must let farmers make the decision by secret ballot. That is what the Conservatives should do.

[Merv Tweed, Conservative, Brandon—Souris, MB]

Mr. Speaker, my colleague's comments raise a couple of questions. First, does he know what percentage of farmers voted to impose the Wheat Board on western Canadian farmers back in the early days? If he does not know, I will tell him. It was 0% because there was no vote by farmers then. It was imposed upon them by the government.

If the member, who is from part of the country that is not affected by the impositions of the Canadian Wheat Board, feels so strongly about it, would he be prepared to take that message across the rest of Canada and impose the Canadian Wheat Board regulations on his farmers, or is it just for western Canadian farmers, of whom he has no representation nor the ability to speak on their behalf, yet he wants to impose that upon us?

[Yvon Godin, NDP, Acadie—Bathurst, NB]

Mr. Speaker, first, when I was elected I was elected as a member of Parliament at the federal level and I can go anywhere in the country because I am a Canadian. Do the Conservatives want to take that away from me?

Second, when it was imposed, it was under a Conservative government, the same way it is going to be imposed under a Conservative government to take it away.

Why not give farmers the choice to vote on it? Before the 2011 election, the Conservatives promised them that they could vote on this. Why do the Conservatives not give them the right to vote on it? It is not for me as a member of Parliament to go there and shove it down their throats. They must be given the right to vote on it. That is what the Conservatives should do if they are not ashamed of themselves.

[Pat Martin, NDP, Winnipeg Centre, MB]

Mr. Speaker, I thank my colleague from Acadie—Bathurst for his spirited defence of the right of producers to vote on how they choose to market their products.

I know that my colleague from Newfoundland has been telling us recently how, at the very moment in time, when the Conservatives are dismantling the most successful grain marketing company in the world, wholly owned and operated by prairie farmers on a non-profit basis, the fishermen of Newfoundland and Labrador and the Atlantic region are contemplating creating a marketing board along the same lines as our freshwater fish marketing board, our dairy marketing boards, our egg marketing board and our turkey and chicken marketing boards. They know that supply management is an advantage and a benefit to producers. The fishermen of Atlantic Canada are coming to that realization.

How is it that Atlantic Canadian fisher people know when their best interests are served, when the Conservatives are blindly abolishing the very same system in the prairie region?

[Yvon Godin, NDP, Acadie—Bathurst, NB]

Mr. Speaker, even the people in Australia are regretting that they got rid of their board. They know they made a mistake now and regret what they have done.

When we look at the fishermen, it is very simple to explain. When lobster fishermen have a hard time getting $2 a pound and restaurants charge $10.50 a pound, between the consumer and the fishermen there are a lot of people in between taking their money. That does not happen with a board. Farmers would need to get their own price. The Atlantic fishermen are saying the same thing. Between the customer and the fishermen, there are a lot of people taking the money, and that is why they are getting 50¢ a pound and the stores are getting $4.50 a pound. That is what would happen if they were to market individually.

Farmers should think twice about what they are getting into. There are some who will make money but the majority will not be making the money. The reason for this board 75 years ago was to look after farmers' interests.

This is a big mistake. The mistake is not by the farmers, but by the Conservative government not letting them vote on it democratically. If the Conservatives believe in democracy they should give farmers the chance to make that decision because it is important for the farmers on the Prairies.

[Kellie Leitch, Conservative, Parliamentary Secretary to the Minister of Human Resources and Skills Development and to the Minister of Labour]

Mr. Speaker, I am pleased to speak to this proposed legislation, which would be a major step forward for Canadian grain producers.

Our Conservative government knows that a prosperous farm means a prosperous economy. As others have said, this bill would give farmers in western Canada the same rights that farmers have in my home riding of Simcoe—Grey here in Ontario. They would share the same right to market their grain to a buyer of their choice and to do what is best for their businesses.

There is always a fear of the unknown, but in this case we do know that others who have gone down a very similar path of marketing freedom have had very positive results. I would like to speak to the wheat industry in Ontario as an example of the kinds of opportunities farmers can capture through a voluntary pool.

Ontario wheat producers moved to a voluntary marketing system eight years ago. Some Ontario wheat producers chose to market their crops through the voluntary pool run by Grain Farmers of Ontario. Others chose from a variety of other marketing methods that are right for their businesses. Since moving to marketing freedom, the Ontario wheat industry has been growing steadily over the past decade, topping a million acres last year and bringing more than $300 million to the farm gate. It has become one of the province's largest crop exporters. Last year half of the two million tonne crop was exported, driving over $280 million in sales.

Marketing freedom did not cause the sky to fall in Ontario, as the monopoly supporters would lead us to believe. Contrary to these baseless arguments, Ontario has a dynamic and growing grain industry, the largest this side of the Prairies. In fact, Dr. Terry Daynard, one of the founders of Ontario Corn Producers' Association, said:

...I am glad the Ontario Wheat Board ended single-desk selling years ago, allowing growers like me to market wheat independently.

The Ontario wheat industry shows what can be done when the entire value chain works together to grow market potential. Today, a strong and innovative value-added sector purchases about half the Ontario wheat crop to manufacture high-quality food products for Canadian grocery stores all over the country. Since moving to an open market, Ontario wheat growers have developed a number of exciting value-added opportunities over the past several years.

Several years ago, the former Ontario Wheat Producers Marketing Board, today Grain Farmers of Ontario, launched a wheat initiative fund to directly address opportunities to collaborate with all sector partners around value-added uses of Ontario wheat. This program has been so successful that Grain Farmers of Ontario is now looking for similar opportunities in corn and soy.

As an example, Grain Farmers of Ontario is supplying Ontario's wheat to an Ontario-based company that has become Canada's largest pita bread manufacturer. In my riding of Simcoe—Grey, where agriculture and farming are of incredible importance to many families, it is the hard work of local farmers like Ken Ferguson, who is my local mayor, Fred and Brian Dunlop, and Roger and Bill MacLeod who demonstrate that hard-working commitment is representative of all Canadian wheat farmers.

Under marketing freedom, GFO is still the recognized leader in export market development and there is no reason that a voluntary Canadian Wheat Board could not remain a recognized leader as well.

Of course, a major change like this would have a transition period. Farmers in western Canada recognize this. According to Jody Klassen of Mayerthorpe, Alberta, “There's always opportunity. There's a transition period, but the opportunities are there”.

Everyone agrees that the Ontario industry is seeing increasing levels of collaboration between the GFO and its private trade partners when it comes to issues like export logistics, contracting, trade missions and promotion. With growing world demand and a high-quality product, Ontario farmers are well positioned to capture new opportunities for the years ahead. Our Conservative government thinks wheat and barley farmers in western Canada have a right to these types of opportunities as well.

Wheat and barley growers in western Canada are like any other business people. They want to make the right decisions for their farms. They already decide what to plant and when to harvest. They make marketing decisions on their canola and pulse crops, their peas, lentils, beans, oats and other crops. They want the same marketing freedom for their wheat and barley.

This bill is fundamentally about innovation, freeing our farmers to innovate and grow their businesses. Our government understands that innovation is key to competitiveness. That is why we have invested up to $4 million to help develop new grain and oilseed varieties that are tailored to meet the needs of the marketplace and increase profitability of Canadian farmers.

This research has already resulted in 10 new varieties of soya beans targeted at high-value food markets all across the country. There are others in the pipeline, including new varieties of winter wheat, corn, spring wheat, oat and barley that are higher yielding and more resistant to drought and disease.

The shift in market freedom in Ontario has been good for Ontario grain farmers. In fact, according to Harry Buurma, a farmer from Watford:

In the last 10 years the wheat acreage in Ontario has increased by nearly 50 percent, as further support that the change has been a good thing.

Likewise, we believe that the advent of market freedom will breathe new life into the western Canadian wheat industry as well and open up exciting new opportunities for western grain growers. The removal of the monopoly will allow western Canadian farmers to sell their wheat and barley directly to a processor, including new pasta manufacturers, flour mills and other types of processing plants.

There has been tremendous growth in value-added opportunities in Ontario wheat over the past decade. We have every reason to believe that our western wheat and barley growers have what it takes to succeed in exactly the same way.

The Government of Canada trusts farmers to make their marketing choices based on what is best for their own business. We want to put farmers back in the driver's seat so they can continue to drive the economy. We believe that an open and competitive grain market can include a viable voluntary pooling entity.

We are ready to work with the Canadian Wheat Board to chart the way forward. Marketing freedom has been a cornerstone of our platform since day one. It was part of the throne speech last spring.

I am proud that we delivered on our long-standing promise to western Canadian wheat and barley farmers. Our Conservative government makes commitments and we stick to them.

As the Minister of Agriculture and Agri-Food recently said, “Today we are turning a new page in our nation's history, and Canada and our sector will be better for it.” Exciting new opportunities lie ahead for farmers in western Canada. This important step forward will help ensure that all farmers can position their businesses to capture these opportunities.

The opportunities that exist in this great country are enormous. In the 1800s my family came to this great country. They took the rail to Portage la Prairie, walked another 150 kilometres, set down their roots in Alexander, Manitoba, bought 1,500 acres of farm land and started farming wheat and barley. It was composed of three Leitch farms. My family's farming history is rich there.

That is why I am so passionate about this legislation. It finally provides the market opportunity that my late grandfather and his colleagues all desired.

Canadian farmers feed Canadian families around the world. They deserve the freedom to make their own business decisions. Western Canadian grain farmers, like my late grandfather, deserve the same opportunities and freedoms that the farmers in my riding of Simcoe--Grey in Ontario enjoy. They should be able to choose to whom they sell their grain and when they do it.

I encourage members to support this bill and give it timely passage in the House so that farmers will have the certainty they need to plan their businesses in the coming year. Our government is committed to delivering on our long-standing promise to give western Canadian farmers the marketing freedom they deserve, and we intend to make that happen.

[Pat Martin, NDP, Winnipeg Centre, MB]

Mr. Speaker, I would like to ask my colleague about two points she made in her speech.

First is the idea of certainty. In times of such economic uncertainty around the world, and Canada is not spared from the economic malaise that is going on, we have to wonder why the Conservative government would choose now to turn the prairie rural economy upside down and on its head with no guarantee that it will be stable or secure, or any better for prairie farmers come next spring should it succeed in abolishing the Wheat Board.

There is a more pointed question I would like to ask the member. She said that the whole point here is to give prairie farmers more choice in how they market their grain. Why then would the government not let prairie farmers choose by having a democratic vote which is guaranteed to them by legislation?

When the Ontario grain farmers did away with their single desk, it was by virtue of a democratic vote. The majority chose to have a dual marketing system. Why would the government not allow the prairie farmers the same choice on how to market their grain by a democratic vote?