Marketing Freedom for Grain Farmers Act

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

This bill was last introduced in the 41st Parliament, 1st Session, which ended in September 2013.

Sponsor

Gerry Ritz  Conservative

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill.

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.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Votes

Nov. 28, 2011 Passed That the Bill be now read a third time and do pass.
Nov. 28, 2011 Failed That the motion be amended by deleting all the words after the word "That" and substituting the following: “this House decline to give third reading to Bill C-18, An Act to reorganize the Canadian Wheat Board and to make consequential and related amendments to certain Acts, because members of the Committee were unable to hear testimony from the primary producers affected by and concerned with the future commercialization of the Canadian Wheat Board”.
Nov. 23, 2011 Passed That Bill C-18, An Act to reorganize the Canadian Wheat Board and to make consequential and related amendments to certain Acts, as amended, be concurred in at report stage.
Nov. 23, 2011 Failed That Bill C-18 be amended by deleting Clause 55.
Nov. 23, 2011 Failed That Bill C-18 be amended by deleting Clause 46.
Nov. 23, 2011 Failed That Bill C-18 be amended by deleting Clause 45.
Nov. 23, 2011 Failed That Bill C-18, in Clause 14, be amended by replacing lines 38 to 42 on page 7 with the following: “(2) All the directors are elected by the producers in accordance with the regulations. The directors must designate, also in accordance with those regulations, a president from among themselves.”
Nov. 23, 2011 Failed That Bill C-18, in Clause 14, be amended by replacing line 36 on page 7 with the following: “9. (1) The board consists of fifteen directors,”
Nov. 23, 2011 Failed That Bill C-18 be amended by deleting Clause 12.
Nov. 23, 2011 Failed That Bill C-18 be amended by deleting Clause 9.
Nov. 23, 2011 Failed That Bill C-18 be amended by deleting Clause 7.
Nov. 23, 2011 Failed That Bill C-18 be amended by deleting Clause 6.
Nov. 23, 2011 Failed That Bill C-18 be amended by deleting Clause 3.
Nov. 23, 2011 Failed That Bill C-18 be amended by deleting Clause 2.
Nov. 23, 2011 Passed That, in relation to Bill C-18, An Act to reorganize the Canadian Wheat Board and to make consequential and related amendments to certain Acts, not more than one further sitting day shall be allotted to the consideration at report stage of the Bill and one sitting day shall be allotted to the consideration at third reading stage of the said Bill; and That, 15 minutes before the expiry of the time provided for Government Orders on the day allotted to the consideration at report stage and on the day allotted to the consideration at third reading stage of the said Bill, any proceedings before the House shall be interrupted, if required for the purpose of this Order, and in turn every question necessary for the disposal of the stage of the Bill then under consideration shall be put forthwith and successively without further debate or amendment.
Oct. 24, 2011 Passed That the Bill be now read a second time and referred to a legislative committee.
Oct. 24, 2011 Failed That the motion be amended by deleting all the words after the word “That” and substituting the following: “this House decline to give second reading to Bill C-18, An Act to reorganize the Canadian Wheat Board and to make consequential and related amendments to certain Acts, because it: ( a) fails to respect the will of the majority of prairie farmers who have expressed a desire to maintain the current composition and structure of the Canadian Wheat Board; (b) ignores the fact that the Canadian Wheat Board is funded, controlled, and directed by Canadian farmers and removes their autonomy to maximize prices and minimize risks in the western wheat and barley market; and (c) makes sweeping decisions on behalf of prairie farmers by eliminating the single-desk system that has provided prairie farmers strength and stability for nearly 70 years”.
Oct. 24, 2011 Failed That the amendment be amended by adding after the words “70 years” the following: “, including specifically the elimination of the Canadian Wheat Board’s role in managing transportation logistics and thereby leaving farmers without an effective voice with respect to rail service levels and freight rates; and ( d) breaches section 47.1 of the Canadian Wheat Board Act”.
Oct. 20, 2011 Passed That, in relation to Bill C-18, An Act to reorganize the Canadian Wheat Board and to make consequential and related amendments to certain Acts, not more than two further sitting days shall be allotted to the consideration at second reading stage of the Bill; and That, 15 minutes before the expiry of the time provided for Government Orders on the second day allotted to the consideration at second reading stage of the said Bill, any proceedings before the House shall be interrupted, if required for the purpose of this Order, and, in turn, every question necessary for the disposal of the said stage of the Bill shall be put forthwith and successively, without further debate or amendment.

Marketing Freedom for Grain Farmers ActGovernment Orders

October 20th, 2011 / 5 p.m.


See context

Green

Elizabeth May Green Saanich—Gulf Islands, BC

Mr. Speaker, my question is for the hon. member for Peace River. I have spoken privately to the hon. member about this very heated debate. Clearly, farmers are on both sides of the issue.

I am quite taken with the fact that a very conservative economic expert publication, The Economist magazine, has put forward that removing the Wheat Board, as the government proposes to do, would have a devastating impact “devastating small prairie towns, whose economies depend on individual farmers with disposable income”.

I know that there are sincere differences of opinion in the House, but I would appreciate the hon. member's view of this particular expert opinion.

Marketing Freedom for Grain Farmers ActGovernment Orders

October 20th, 2011 / 5 p.m.


See context

Conservative

Chris Warkentin Conservative Peace River, AB

Mr. Speaker, this is an important point. Small farmers in my constituency, especially small farmers who are young, innovative and want to create a unique product, in many cases an organic product, cannot do it under the Canadian Wheat Board. Currently, the Wheat Board takes that quality, unique niche product, that someone has spent a significant portion of time getting their land to organic quality producing an organic wheat, and takes that crop and pools it in with all the other farmers' crops so that farmer has no opportunity to market a quality, unique niche crop.

I would urge the Green Party to consider changing its policy because the Green candidate in my constituency opposed the Canadian Wheat Board monopoly simply for this reason. There were candidates for the Green Party who were opposing the stated position of the Green Party and one was in my constituency because this is an assault on young farmers, including the young farmer who ran against me for the Green Party. If the member wants to support the Green candidate in my constituency, I urge the hon. member to stand in her place and support this legislation.

Marketing Freedom for Grain Farmers ActGovernment Orders

October 20th, 2011 / 5:05 p.m.


See context

Conservative

Ray Boughen Conservative Palliser, SK

Mr. Speaker, I am pleased to speak to this bill on the Canadian Wheat Board. Our government is committed to the continued success of Canadian agriculture and because this government believes that western Canadian grain farmers deserve the same marketing freedom and opportunities as other farmers in Canada and around the world.

We want to ensure that Canadian farmers succeed and build a strong future for the sector as a whole. Our government's top priority is the economy in which the agricultural industry plays a key role.

We believe that farmers should be able to position their businesses to capture the market opportunities that are open to them. We put farmers first in every decision we make on agriculture.

We recognize that this is a major change for agriculture in western Canada. That is why we have been consulting extensively with stakeholders from across the supply chain, from the farm to the seaport.

Over the summer a working group comprised of experts in the field consulted with industries and heard a broad range of advice on how the grain marketing and transportation system could transition from the current CWB-run system to an open market that would include voluntary marketing pools.

The working group submitted its report to the hon. Minister of Agriculture. It covers a wide range of issues from transportation to research to elevators, basically the how of moving to an open market. The working group is one of the ways our government sought advice on how to move forward.

Our formula is simple and it works: we listen to farmers, we work with farmers, and then we deliver the practical results farmers need.

Let us take a minute and look at opening world markets that are on the doorstep for Canadian agriculture.

Canadian farmers have proven time and time again that they can compete and succeed in the global marketplace if they have a level playing field. That is why the government has been working very hard to build new opportunities in global markets for our farmers.

We have been on the road a lot and our efforts to build trade relationships are paying off. The hon. Minister of Agriculture has led trade missions to key markets in Europe, Asia, South America, Africa and the Middle East.

Working closely with the industry, we have completed over 30 international trade missions and returned home with some real tangible results for our farmers, producers and processors. Everywhere we go, we are finding new customers who want to buy Canadian good quality foodstuffs.

Together we have been moving a lot of product, and we have delivered some real results to our farmers and processors. The government knows farmers want to make their living in the marketplace and not from the mailbox. That is why we have gotten out on the world stage, whether it is serving up Canadian steak in Brussels or canola oil in Mexico, to ensure our farmers can connect with new customers.

We have reopened and expanded access for Canadian cattle, beef, beef products and bovine genetics in China, Hong Kong, Colombia, Jordan, Saudi Arabia, Russia, Panama, Singapore, Costa Rica, Vietnam and Korea.

We have also reopened and expanded access for Canadian pork and swine in China, Malaysia, Mongolia, Russia, the Philippines, Ukraine, Armenia, Albania, Croatia, Indonesia, Jordan and Thailand.

We have negotiated new duty free access for Canadian hormone-free beef to the European Union, a promising market, estimated to be worth more than $10 million annually. As of July 2011, industry has shipped approximately 626 tonnes of beef, worth almost $5 million.

We have developed new opportunities in China for up to $500 million in sales for pulses and achieved transitional measures that allow access to the Chinese market for Canadian world-class canola, safeguarding a market worth $1.8 billion.

We have succeeded in agreements and set up relationships with India to find a long-term solution on pulse fumigation while ensuring uninterrupted supply of pulses, safeguarding a market worth $533 million in 2009. Of course, there is more work to do.

Let us take a minute and look at trade negotiations with the WTO and FTA. Agriculture trade is critical to Canada's economy and prosperity. In 2010 our agriculture and agri-food exports were over $35 billion. Importantly, Canada's trade in agriculture and agri-food products contributed $11.1 billion to our trade surplus.

Those dollars mean jobs and livelihoods for Canadians here at home. That is why when we, as a government, take measures to support agricultural trade, we are not just helping farmers, we are helping all Canadians.

Canada hosted the Cairns Group ministerial meeting in Saskatoon in early September to press ahead with a stronger rule-based approach to global agricultural trade. At the WTO, we stand ready to work with our trading partners to define a realistic path forward on the Doha round, which would provide for more open and predictable multilateral trading systems.

Our government is also pursuing an aggressive regional and bilateral trade negotiation agenda. In that regard, we are working toward a comprehensive economic and trade agreement with the European Union.

The EU is Canada's second most important partner for trade and investment with two-way agriculture and seafood trade totalling over $6 billion in 2010. We want to make that relationship even stronger and more profitable for the benefit of our farmers.

We will also begin free trade negotiations with Morocco in the very near future. Morocco is an important and growing market for our wheat and pulse exports.

We are making important progress in other markets. We have recently implemented a free trade agreement with the European Free Trade Association, Peru and Colombia. The free trade agreement with the EFTA will eliminate or reduce tariffs on certain agricultural products from Canada, including durum wheat, frozen french fries, crude oil, beer and frozen blueberries.

Canadian producers will also benefit from the elimination of tariffs on exports to Peru and Colombia. Many agricultural exports such as beef, pork, wheat, barley and pulses will receive immediate duty free access. Notably, the FTA with Colombia marks a significant opportunity for Canadian exporters to now benefit from the preferential treatment and access as their American competitors.

We have also signed free trade agreements with Jordan, Panama and Honduras. This government is working toward implementation of these free trade agreements as early as possible.

We are hopeful that our ongoing free trade agreements negotiated with South Korea, El Salvador, Guatemala, India, Ukraine and the Caribbean community will also soon create export opportunities for our agricultural producers in these markets. As well, we are looking ahead to export new possibilities with trading partners like Japan and Turkey.

Let us look at the marketing we are currently headed toward.

We want Canadian farmers and processors to get the credit they deserve for the high quality products they are bringing to market. Our agriculture exporters are innovative and competitive, and we are working with them to expand their markets.

Canada is working on all fronts to boost our agricultural business with the world. We know that buyers and consumers already think highly of Canadians and Canadian products. We want to raise awareness and boost the appetite for our great Canadian agricultural economy. That is why our government is investing $32 million in the Canada brand initiative to boost the Canada brand in key markets. The goal is to get more consumers putting our great Canadian food products in their grocery carts and on their menus. We have already announced branding strategies in Japan, Mexico and Korea.

These dollars are supporting market research, advertising, store features, culinary tourism, and other promotional activities that bolster of the work being done by the Canadian industry to sell the products. Consumers are looking for variety, quality and safety in their food, and our farmers and processors can deliver. When they think of good food, we want them to think Canadian and then buy Canadian.

The goal of these initiatives is to get more international customers bidding on our great Canadian food and help our farmers make the most of international markets. Opening up the markets for durum wheat and barley farmers will attract investment not only from Canadian companies, but from the international community as well. In fact, the head of Bunge North American division said, “Bunge is absolutely planning to be a part of it” and Bill Jamieson, chairman of the National Cattle Feeders' Association, said, “More access to more markets will create more opportunities and profit for grain producers”.

In closing, we believe all Canadian farmers should be able to position their businesses to capture the market opportunities that are open to them. Once passed, this legislation would provide western Canadian grain farmers with endless opportunities for their business. I urge my hon. colleagues to stand up for western Canadian farmers and support the bill.

Marketing Freedom for Grain Farmers ActGovernment Orders

October 20th, 2011 / 5:15 p.m.


See context

NDP

Djaouida Sellah NDP Saint-Bruno—Saint-Hubert, QC

Mr. Speaker, I listened to all the numbers and all the opportunities referred to by my colleague across the floor. I thank him for his efforts.

However, I have a question about the Canadian Wheat Board. I am not talking about a so-called analysis conducted by a group of non-government workers. I would like to know why the government refuses to take responsibility when it comes to managing taxpayers' money. This is a recurring theme with this government, whether we are talking about the cost of new prisons, F-35 fighter jets or the minister's pet projects in his riding.

Has the government done a cost analysis of the elimination of the Canadian Wheat Board? Yes or no? And if so, what were the results?

Marketing Freedom for Grain Farmers ActGovernment Orders

October 20th, 2011 / 5:15 p.m.


See context

Conservative

Ray Boughen Conservative Palliser, SK

Mr. Speaker, I am not sure exactly what the question was, except there was some indication that maybe there was spending of dollars by government around the Wheat Board question which should not have been spent. Let me respond to that by saying we agree. We do not want to spend dollars on a foolish kind of referendum for which we already know the results. People have told us the results.

Our position has been and continues to be one of choice. Farmers do not need to vote one way or the other. We are saying they have a choice. They can go with the private sector. They can go with the other private sector. They can go with the Canadian Wheat Board. They can go with some other grain buyers. That is what is being said. That is what the bill is promoting.

People have not read the bill, obviously, because the bill is in phases over five years for the Canadian Wheat Board to develop its own marketing system. It is not one of hindrance; it is one of acceptance. I cannot understand why people have not picked up on that theme.

Marketing Freedom for Grain Farmers ActGovernment Orders

October 20th, 2011 / 5:15 p.m.


See context

Conservative

Chris Warkentin Conservative Peace River, AB

Mr. Speaker, I appreciate the hon. member's contribution to this discussion. I think it is an important discussion. I appreciate the fact that I have been recognized as many of the other folks have on the other side of this chamber who have talked about this being a major issue. I do appreciate the opportunity to interject at this point.

I have heard from countless young members of my farming community who are desperate to see this change. They want to see an innovative market. They want to see a market for their barley and their wheat that drives up their returns. We are looking at the organic farmers. We are looking at the guys who want to create niche markets, who want to be able to containerize their product and send it abroad through producer cars or a whole host of other things.

Would the hon. member talk about the changes in this legislation that would allow more of these guys who are looking for unique ways to market their product? Does he believe there would be support in his community for these changes for the ability to create unique and niche crops and marketing wheat and barley that is grown organically or some other way for specific markets?

Marketing Freedom for Grain Farmers ActGovernment Orders

October 20th, 2011 / 5:20 p.m.


See context

Conservative

Ray Boughen Conservative Palliser, SK

Mr. Speaker, in response to the hon. member's question, as the hon. member mentioned earlier, the Canadian Wheat Board is not a facilitating operation in terms of expansion, new ideas and innovative technologies. It is very cut and dried: “Bring your wheat. Here you go. Good-bye. See you.”

The new marketing ideas that young people have, the new formulas they have for growing crops, their interest in expanding and their creativity is not facilitated by the Canadian Wheat Board. It never has been and it probably never will be. That is why it is important that we put in place, as a government, an opportunity for young people to expand their expertise, to expand their growing seasons, to do different things with their crop rotation. We want them to be fully-fledged business people marketing their own goods, as they do now in grains such as canola, flax and oats. They market those grains themselves. This is not a new thing for people in the agricultural sector. It is just an expansion of what they are currently doing.

Marketing Freedom for Grain Farmers ActGovernment Orders

October 20th, 2011 / 5:20 p.m.


See context

NDP

Peggy Nash NDP Parkdale—High Park, ON

Mr. Speaker, I am pleased to rise today to speak to Bill C-18 and in support of the Canadian Wheat Board. The board is the largest and most prosperous grain marketing board in the world. It sells grain around the globe. It makes arrangements for shipping grain from thousands of farmers to consumers in over 70 countries. In an average year, the board puts some 21 million tonnes of wheat and barley on the market.

In addition, all profits from these sales, between $4 million and $7 million a year, are paid back entirely to farmers. The board does not hold on to any income, apart from what it needs to cover costs and manage the financial risks.

The board mitigates the risks run by farmers, particularly concerning late payments, selling grain to buyers at inappropriate times and shipping the grain to buyers. This is a key problem, considering the large geographic area of the Prairies.

Batch selling has also allowed farmers to have a significant influence on the handling and shipping of grain, and on international trade policies. The board works in partnership with the industry and the government to promote policies concerning trade, transport and other areas that benefit wheat and barley farmers in western Canada. The board has defended farmers remarkably well in cases of unfounded trade disputes and has won important victories that resulted in better fees and rail service.

The board's single desk structure has ensured financial stability, sound risk management and secure supply chains, an indisputable advantage for farmers.

Furthermore, the Canadian Wheat Board is not a government-funded agency or a crown corporation. The Canadian Wheat Board is not funded by Canadian taxpayers. Farmers pay for its operations from their grain revenue.

Ten of the 15 members of the board of directors of the Canadian Wheat Board are elected by farmers. Farmers consistently elect a majority of directors who support the single desk structure.

The Conservatives have no mandate to go against the wishes of prairie farmers. The Canadian Wheat Board is controlled, directed and funded by farmers. Farmers should be the ones to decide the future of the marketing organization that they run and they pay for.

They have made their decision clear. The results of the Canadian Wheat Board plebiscite released on September 12 show that a strong majority of farmers want to maintain their ability to market wheat and barley through a single desk system. Sixty-two per cent of respondents voted in favour of retaining the single desk for wheat, and 51% voted to retain it for barley. A total of 38,261 farmers submitted mail-in ballots in the plebiscite, a participation rate of 56%, on par with the last three federal elections and higher than many municipal and provincial elections.

Canada runs the risk of losing $200 million to $500 million a year in board price premiums.

The board manages a supply chain from gate to plate. It has an enviable international reputation for its quality and uninterrupted supply, its service and superior technical support.

Grain sales made under the exclusive jurisdiction of the board guarantee a secure supply of grain, thus guaranteeing strategic and orderly sales. This gives farmers a competitive advantage in the international grain market. On their own, farmers would have to sell by auction. They would have to decide whether or not to sell depending on the circumstances, a gamble that could cost them their farm.

In fact, many studies carried out by well-known agricultural economists, based on data compiled by the board, concluded that the single desk model allows Prairie farmers to bring in millions of dollars more per year than on the open market.

The dismantling of the single desk system will have a serious impact on communities across the Prairies. A 2005 economic impact analysis by PricewaterhouseCoopers found that the Canadian Wheat Board contributes a gross output of $94.6 million to the city of Winnipeg. In addition to its more than 400 employees at its head office, PricewaterhouseCoopers calculated spinoff employment from the Canadian Wheat Board to be more than 2,000 jobs, with a total labour force income impact on the city of more than $66 million. At the provincial level, PricewaterhouseCoopers put the Canadian Wheat Board's gross output contribution at $323 million with more than 3,000 jobs and a total labour income impact of more than $140 million.

The Conservatives have argued that the Ontario experience with removing the single desk can be applied to western farmers, but one cannot compare apples to oranges. The examples are completely different. Ontario wheat farmers produce wheat for pastries, cookies and cakes. They have a ready market available locally. In contrast, prairie wheat farmers produce hard red spring wheat which does not have an extensive local market. Ontario wheat farmers sell about 90% of their product within Canada and the northern U.S., but 80% of the wheat grown in western Canada each year is exported overseas. That means while Ontario farmers have low transportation distances and costs, prairie wheat farmers must pay freight costs to transport grain long distances to inland terminals and to port.

Of course, the other crucial difference between the Ontario experience and the measure being discussed here is Ontario wheat farmers ended their single desk system through a farmer-led democratic process. Prairie farmers have voted in favour of keeping the Canadian Wheat Board and face having it taken away against their will.

A better comparison can be found in Australia. Western grain farmers can look to Australia to know what is in store for them when the single desk is eradicated, and it is not pretty. When the Australian wheat board had its single desk power, wheat could command a premium of over $99 a tonne over the American wheat, but by December 2008, it had dropped to a discount of $27 a tonne below U.S. wheat. In three short years Australia's 40,000 wheat farmers went from running their own grain marketing system, virtually all of Australia's wheat, which was 12% of the world's wheat production worth $5 billion, selling it on their own behalf, to being mere customers of Cargill, one of the world's largest agribusiness corporations, which is privately owned and based in the United States.

Before making any changes to the board, the government must study the impact of its dismantling and analyze the effects this would have on Canadian grain farmers. Otherwise, it is playing Russian roulette with the Prairie economy and with the revenue sources of western farmers.

Allen Orberg, a farmer and chair of the Canadian Wheat Board's board of directors, has said that this government's imprudent approach will derail the Canadian grain industry. It threatens the future of a sector with $5 billion in exports every year. It will take money out of the pockets of Canadian farmers and give it to American corporations.

In closing, the important thing is to give farmers a say. They have voted. They want to keep the Wheat Board. It is incomprehensible that the government would override the democratic will of farmers and dismantle the Canadian Wheat Board.

Marketing Freedom for Grain Farmers ActGovernment Orders

October 20th, 2011 / 5:30 p.m.


See context

Conservative

Kyle Seeback Conservative Brampton West, ON

Madam Speaker, I do not come from a riding that has a great deal of farms. I come from an Ontario riding, so I do not necessarily understand the nuances or intricacies of the Wheat Board. What I do understand is basic economics. We continually hear from the members on the other side of the chamber that the Wheat Board is the greatest thing since sliced bread. If it is so great, then when it becomes optional for western farmers, there is going to be a stampede to stay with the Canadian Wheat Board.

I do not understand the logic that by making the best thing in the world optional is somehow going to lead to its demise. Perhaps the member opposite could correct me on how that logic is not correct.

Marketing Freedom for Grain Farmers ActGovernment Orders

October 20th, 2011 / 5:30 p.m.


See context

NDP

Peggy Nash NDP Parkdale—High Park, ON

Madam Speaker, it is simple. Democracy is the greatest thing since sliced bread and the democratic will of prairie farmers has not been respected, as it must be by law. The government is riding roughshod over a decision taken by prairie farmers who want to keep their Wheat Board. The government is saying that they are not going to have that option. The dismantling of the Wheat Board will have huge ramifications in terms of prices and the impact on our overall economy, but especially on prairie farmers. It is incomprehensible why the government would not abide by the law, respect the will of farmers and allow them to keep the Wheat Board.

Marketing Freedom for Grain Farmers ActGovernment Orders

October 20th, 2011 / 5:30 p.m.


See context

NDP

Alain Giguère NDP Marc-Aurèle-Fortin, QC

Madam Speaker, could my colleague tell us what impact the loss of an institution as important as the Canadian Wheat Board would have on our national sovereignty?

Marketing Freedom for Grain Farmers ActGovernment Orders

October 20th, 2011 / 5:30 p.m.


See context

NDP

Peggy Nash NDP Parkdale—High Park, ON

Madam Speaker, I thank my colleague for his question.

When Australia lost its equivalent of the Canadian Wheat Board, farmers lost control over their wheat. They became clients of a large American company. They lost control and became very dependent on that company, which led to loss of revenue and the destruction of that sector.

Marketing Freedom for Grain Farmers ActGovernment Orders

October 20th, 2011 / 5:35 p.m.


See context

Cypress Hills—Grasslands Saskatchewan

Conservative

David Anderson ConservativeParliamentary Secretary to the Minister of Natural Resources and for the Canadian Wheat Board

Madam Speaker, I welcome the perspective of the member opposite, who is from downtown Toronto. Perhaps because she is from there, she is not familiar with a couple of the issues.

She referred to the survey that was taken by the Wheat Board. She probably does not know that there has been great discussion about the voters list, which has been polluted for over a decade and has not been cleared up. I would like to give a couple of examples and then ask if she can somehow justify them because she supports the results.

The father of someone close to me died last year and the ballots were sent out a couple of months ago from the Wheat Board. My friend's mother got a ballot in her husband's name and the estate got a ballot as well. One of my colleague's had a little old lady poke him and say that she wanted to talk to him about the Wheat Board. He asked what it was about and she told him that her brother and sister both got ballots and they were both dead. I have two colleagues here who are farmers and landowners who did not get ballots.

How can she and her party justify supporting this charade?

Marketing Freedom for Grain Farmers ActGovernment Orders

October 20th, 2011 / 5:35 p.m.


See context

NDP

Peggy Nash NDP Parkdale—High Park, ON

Madam Speaker, I want to inform the member opposite that food security and the well-being of farmers concerns everyone in our country. Farmers feed cities. We rely on farmers.

I have not reviewed the voters list for this plebiscite, but, surely to goodness, if the government is concerned with that list, then it should obey the law, conduct its own vote and let farmers decide the future of the Wheat Board. It is as simple as that. Why does it not allow the farmers the democratic right to decide whether they will be able to keep the Wheat Board? That is the government's responsibility under the law.

Marketing Freedom for Grain Farmers ActGovernment Orders

October 20th, 2011 / 5:35 p.m.


See context

Conservative

Leon Benoit Conservative Vegreville—Wainwright, AB

Madam Speaker, I truly am delighted to take part in this debate. For me personally, this is the beginning of the end of a 40 year struggle. I started 40 years ago to work to try to end the Wheat Board monopoly, but I will talk a bit about that later.

It is the end of a 70 year period during which time the Wheat Board has had a monopoly and farmers have had no choice. Marketing wheat and certain classes of barley had to be done through the board. Other grains were included during part of that time as well.

It is the beginning of the end of an era, and I am proud to be a member of a government that is doing the right thing after all of this time.

I cannot measure exactly what the benefits or the hurt caused by the Wheat Board having its monopoly. What I do know is some of the hurt caused to my father who farmed most of his life. When I was a young boy during the sixties and early seventies, I remember the harvest finally finished when fall arrived. For many of those years, my father had good crops but he could not market them. We were a large family and we did not have a lot of cash flow. I remember my father desperately trying to get money to buy boots for us for the winter. He did not have the money. I remember my father desperately trying to get enough money to pay some of the bills for fertilizer and pesticides and other farm inputs, and he could not do it. He had the grain, but he could not find a market for it. Therefore, he went out to find a market on his own and he found one for his wheat and barley across the border. It was a poor price, but at least it would provide the cash flow to help get the winter clothing for the family and to pay enough of the bills that the suppliers would send again next year.

As a result of the Wheat Board rules, my father could not cross the border to sell the grain when he found one so he could do those things for his family. I am not talking about the border with the United States. Our farm was two miles from the Saskatchewan border on the Alberta side. Because of the laws in place under the Wheat Board legislation, he was not allowed to take his grain across the border, 50 miles away, where he found a market with feeders, people feeding cattle and hogs, because the Wheat Board had to be protected.

That is what I grew up with. My father's opinion of the Wheat Board before that I do not know, but I do know he was frustrated by these restrictions put on him by the board at that time.

I am proud to say that with this legislation one of the many changes that will take place is that farmers will now be allowed to take grain across provincial borders without fear of penalty. That is a step in the right direction.

It has been a 40 year struggle for me. It started when I took agriculture at university. In 1970 I took my first marketing course. I was fortunate enough to have as my instructor Professor Joe Richter. He came into that marketing course the very first day and said that monopolies were always a bad thing, whether they were private or government. He said, furthermore, that this applied to the Canadian Wheat Board.

I admit that a lot of my classmates were not very sure about that. They had been taught by their parents and grandparents that the Wheat Board was something almost sacred. By the end of that course, every one of my colleagues understood why the monopoly simply was not a good thing.

That was the start of my struggle, but I moved on. I went on the advisory committees of the Alberta Wheat Pool, things like that, and then 18 years ago I became involved in politics.

Half of my first speech as a politician was on the Wheat Board and how we had to end the monopoly. I talked about how we had to give farmers the freedom to market their grain in the fashion that they saw fit. It has been 18 years as a member of Parliament. Now, finally, it is the beginning of the end. The monopoly will be removed and we will be on to bigger and better things.

This is a rights issue. I hear all the arguments about plebiscites and other things, whether the board has offered an advantage or not. Personally, I simply do not believe those things are the issues.

The issue is rights and equality. On the equality issue, why should farmers in western Canada be treated differently and given fewer rights and options than farmers in central Canada? There is no good answer for that. No one can come up with a good answer because there is not one.

When it comes to rights, it is property rights issue. Farmers put all of the money into producing their grain. Farmers put all of the work, the sweat, the toil into producing their grain. When it comes time to sell their grain, they simply do not have a basic right that anybody else in any other industry in our country has and, in fact, that anybody else in any democratic country has. That is wrong.

This legislation is about restoring the rights to western Canadian wheat and barley growers and restoring equality so that western farmers are treated equal to eastern farmers.

People ask how we ever got into this mess in the first place. The mess started back in the early 1920s. There was a form of the Wheat Board that was put in place at that time. It was put in place absolutely respecting the rules of co-operatives. One of the basic principles, the key principal of all the co-operatives that helped build the west, was freedom, freedom to either use the co-operative or not, freedom to be a member or not. That is the way the Wheat Board was established. It was voluntary.

Then in 1935, once again, it was established as a voluntary organization. It is exactly what we are asking for right now. Farmers had a right to either market through the Wheat Board, if they chose, or to market through any grain company they wanted, if they chose to do that. That is the way the Wheat Board was established.

It was only in 1943, under the War Measures Act, when the government wanted to get cheap grain for the war effort in Europe, that the monopoly was put in place. It was put in place under the War Measures Act, why to give farmers a better price for their grain? Absolutely not. It was to get cheap grain for the war effort, and that was acceptable. In war we have to do some things we do not like to do. I am not criticizing the government of the day in any fashion.

What I am criticizing governments for is that after the war the monopoly was not removed, and it has not been to this day. That is a basic and unacceptable infringement on basic human rights and, in this case, property rights. It is time this was changed.

It is about that. All of the talk about a vote and plebiscite is not valid, because I would argue that democracy should not be used to remove basic human rights.

To use maybe a poor analogy, and I do not have much time to do it, we were all elected in the House knowing what our salaries would be. What if the Speaker decided that there would be votes in each of our constituencies, but only in the constituencies in central Canada. A vote would be held to have the people determine whether an MP should get paid or the amount an MP should be paid.

There is a vote and democracy takes place. The people decide that maybe MPs should not get paid at all or should get paid much less. It is a vote. It is democracy. That is what the members are arguing for over there. However, is it right? Of course it is not right.

Maybe it is not the best analogy, but whether there is a vote and all of the other arguments made whether the monopoly is good or bad is not the key issue. The key issue is we have to restore the basic right of farmers to sell their property and to do it in any way that they see fit.