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

[Jim Hillyer, Conservative, Lethbridge, AB]

Mr. Speaker, should we have a referendum on same sex marriage or a referendum on whether postal workers should be allowed to form a union?

Should we have a referendum on the privatization of the CBC and on what kind of programming should be allowed on TV, or should individuals choose for themselves what not to watch on TV, who to marry and how to market their grain?

[François Pilon, NDP, Laval—Les Îles, QC]

Mr. Speaker, that is a very odd question because I do not believe that in all those things the hon. member listed, there is a law saying that before the Wheat Board is dismantled or before we do anything with regard to same sex marriage, there should be a referendum. However, in the rules that governed the creation of the Canadian Wheat Board, it clearly states that a referendum has to be held before it can be dismantled.

[Blake Richards, Conservative, Wild Rose, AB]

Mr. Speaker, our government's top priority is the economy, in which the agriculture industry plays a vital role. Canadian farmers feed the world and they deserve the freedom to make their own business decisions. We believe that all Canadian farmers should be able to position their businesses to capture the marketing opportunities that are open to them.

Nine years ago, almost to this very day, Noel Hyslip was hauled off to jail wearing leg irons and handcuffs in front of his wife, three kids and parents. He and 12 other Alberta farmers were sentenced to 45 days in the Lethbridge jail. Their crime was driving trucks full of their own wheat over the border into the United States. These farmers were detained, fined and jailed for selling their own wheat outside the Canadian Wheat Board. Yes, this is Canada. I know it is hard to imagine that kind of thing could happen here. However, these pioneers have no regrets about the actions they took and the sacrifices they made.

Mr. Hyslip was recently quoted as saying:

I'm proud of that day and the sacrifice we all made.

Going to jail to free western farmers was definitely worth it. It frustrates me that almost one decade has passed since then. It's hard to believe such a law still exists in Canada.

These farmers are all looking forward to the day when all farmers in western Canada have the legal right to market their wheat and barley wherever and however they wish. This bill would enshrine that right by allowing western farmers to market their own wheat and barley on their own or through a voluntary pool.

The 68-year-old Canadian Wheat Board monopoly is yesterday's solution to yesterday's problem. Farmers like Noel Hyslip and thousands of others across the Prairies are focused on tomorrow, not yesterday. They are ambitious, entrepreneurial, successfully market their other crops and they need new solutions, not the status quo. More than that, our economy needs it. As we recently saw with the launching of the pasta plant in Regina, marketing freedom will unlock new value-added investment, new jobs and new growth for Canada's economy.

Business people, the economic drivers of our economy, agree on the need for an end to the single desk marketing system. At its annual meeting last year, the membership of the Canadian Chamber of Commerce, a network representing some 192,000 businesses of all sizes, in all sectors of the economy and in all regions of the country, approved a resolution that reiterated its support for a voluntary Canadian wheat board. It was not the first time it had done so. This most recent resolution was an update of the group's position from 2007.

These are businessmen and women from across Canada, job creators, who have the interest of a strong national economy at heart. What are they calling for? They are calling for the same thing wanted by western farmers, who are small and medium-sized businesses in their own right. They want a release from under the thumb of a monopoly and the freedom to shop their product to the highest bidder for the best price. This is what the Chamber of Commerce resolution had to say about the Wheat Board:

—[it] restricts (value-added) investment in wheat and barley, significantly diminishing the ability of farmers and industry to respond to market demands and earn a premium return in recognition of the innovation provided, including innovation in value-added processing.

It is pretty clear that top business people, the job creators that all members' constituents rely on for employment, think that the CWB is anti-business. It went on to say:

Removal of the single desk in other countries...“has led to new investment and growth in value-added activities, benefiting all members of wheat and barley value chains from consumers to processors to farmers.”

Western Canadian grain farmers want the same marketing freedom and opportunities as other farmers in Canada and around the world. They want the freedom to make their own business decisions, whether it is to market individually or through a voluntary pooling entity. Disappointingly, opponents to change are taking an all-or-nothing approach: single desk or death.

If opposition members will not listen to western grain farmers, will they at least listen to the businesspeople from their own communities who, through the Canadian Chamber of Commerce, are saying that their insistence on robbing farmers of marketing choice is an anti-business, anti-prosperity attitude?

The year of the entrepreneur is 2011. I hope the opposition members will get with the times and support marketing choice and freedom and opportunity for all Canadian entrepreneurs, including western grain farmers.

Farmers have told the CWB and us that there is a better way to give entrepreneurial farmers like Noel Hyslip the boost their business needs to compete and a better way for those farmers who prefer to market their wheat through a voluntary pool. Our government is offering an inclusive and progressive way forward that would offer western Canadian wheat and barley farmers both opportunity and security.

There is no doubt that co-operatives helped to build agriculture across Canada and that they continue to play a role today in a very tough and competitive global marketplace. However, these organizations are where farmers commit their production investment because they choose to, not because they are forced to. Co-operative and compulsion cannot go together. Competition and choice will breathe new life into Canada's grain industry.

Canada's grain industry has already achieved outstanding results, but we know it can do every better.

Over the past 25 years, the share of area seeded by CWB grains in western Canada decreased from about three-quarters to one-half and the Canadian market share in the world barley export markets has declined by more than 65%. Meanwhile the share of area seeded to canola almost tripled, oats acreage in Manitoba grew by over one-third and the pulse industry grew to $2 billion in export sales.

We know that there is room for growth in our wheat and barley industry. The time is right for action. Canada's farmers grow world-class food in a global marketplace that is ripe with opportunity. We need to unfetter our farmers so they can continue to drive our economy and feed the world.

Everyday Canadians also see the injustice of making western farmers beholden to a Wheat Board monopoly.

In a recent letter, Henry and Erna Goerzen, constituents of mine from Didsbury, wrote, “We heartily support you and our Conservative Government in the legislation that will give choice for Western grain farmers to market their grain themselves or to sell through the Wheat Board. It is a choice that has been denied to our farmers for far too long. We wish the legislation may be approved very soon”.

However, the last word goes to farmers themselves.

Dan Jorsvick, a farmer near Olds, sent me a letter that said, “I would like to clearly express my support for the initiative to remove the CWB. Like many farmers, we had registered our vote regarding the CWB years ago, with our decision to not apply for their “permit book” and to not “market” our grain through their organization. We have developed the skills to market our grain to domestic feed users and I hope we have the opportunity to apply these skills to explore markets beyond our borders”.

David and Ann Smith made a similar point, when they wrote, “We urge you and your colleagues and our Majority Conservative Government, to make every effort to bring about the much needed changes in order to provide a more equitable grain marketing system for Western Canada. It must be realized that the younger generation of farmers are very proficient businessmen and women, with many options available to them, plus all the modern technology at hand to carry out their own marketing choices”.

I will end with an inspiring letter from Amy Hewson, a young farmer who farms with her husband southeast of Saskatchewan, “My husband and I are expecting a baby in January and we're both very excited to know that this child will grow up in a country where it’s not a crime for his parents to sell their own wheat and barley”.

We need to ensure that the freedom fighters did not go to prison in vain and we owe it to the next generation of farmers who will put food on our tables to get this job done.

Our government is committed to giving every western Canadian grain farmer the marketing freedom they want and deserve. When passed, this legislation will do just that.

[Françoise Boivin, NDP, Gatineau, QC]

Mr. Speaker, that is all very interesting. I would like to ask the following question: what about the 38,261 farmers who participated in the vote organized by the Canadian Wheat Board? I guess their votes do not count.

[Blake Richards, Conservative, Wild Rose, AB]

Mr. Speaker, I would like to ask the hon. member a question in return. The voices of all the farmers throughout western Canada who voted for our Conservative majority government to be in place to do just this, to give them the freedom of choice to market their own wheat and their own barley, do those voices not count? Because they certainly should.

This is a democratic country and people have a right to make their own choices about how they market their products and the fruits of their labour. All the bill asks us to do is to give farmers the choice that all other businesses in our country have, the choice to take the products that they have created with their hands and from their innovation and to sell it however and to whomever they choose. That is all the legislation seeks to do. What we are asking for our western grain farmers is a very basic right that all businesses should have.

[Wayne Easter, Liberal, Malpeque, PE]

Mr. Speaker, if the member for Wild Rose believes what he said in his comment then let us put it to the test. Is there anyone in the country who actually believes that the only reason anybody voted for the Conservative Party in western Canada was because of the Canadian Wheat Board? Is that what he is trying to imply in the House?

I ask the member to put it to the test. Section 47.1 under the legislation says we ought to that. The Wheat Board says that it has 62% support on its plebiscite. Why will the Conservatives not put it to the test? Why are they taking the voice of western farmers, which was granted to them by law, away from them and not allowing them the choice to tell us their view? If they voted for doing away with the Wheat Board single desk, we would support it.

Second, does the member really believe that if thousands of trucks roll across the U.S. border, the 49th parallel, that the U.S. is not going to respond? People broke the law, they went across the international—

[The Acting Speaker, Bruce Stanton]

Order, please. We need some time for the hon. member to respond.

The hon. member for Wild Rose.

[Blake Richards, Conservative, Wild Rose, AB]

Mr. Speaker, the member wanted to know if I felt that the only reason western Canadians voted for our party was to eliminate the Wheat Board monopoly and have marketing choice. Certainly not. They voted for us for many reasons because of a lot of the positions that we hold they hold dear. They chose to reject his party because its ideas were not what western Canadians wanted to see.

Western farmers, particularly, want the choice to make their own decisions about the marketing of their wheat and barley. That is what we are trying to do with the legislation. They have made that very clear many times in the past, and they continue to make it very clear now. I have a number of constituents who have written me, emailed me and phoned me, about this very issue. They are very eager to see the Wheat Board monopoly ended and to see marketing choice brought in. I can certainly assure the hon. member that western farmers do in fact want to see this choice to market their own products.

[Randy Hoback, Conservative, Prince Albert, SK]

Mr. Speaker, it is kind of entertaining. I guess the Liberal Party holds its nominations just like the CWB does its directors elections as it sees fit.

I know the member is a forward looking person. Based on the things that I see happening in the future, they say that this co-operative cannot exist in this new environment, yet I look at Federated Co-op, which is a good example in Saskatchewan. There is a Wal-Mart in Prince Albert and where does Co-op build its store? Right across from Wal-Mart. They compete head-on.

Could the member tell us how he feels the CWB in this new entity will survive in this new marketplace?

[Blake Richards, Conservative, Wild Rose, AB]

Mr. Speaker, that is a great question. It certainly is nice to hear a question about someone looking forward and trying to figure out how we can make the best for farmers, so we can give them the choices they need to make the decision whether they want to market through a co-operative or whether they want to be able to sell it on their own through other means that they have at their disposal. Certainly there are many opportunities available to our farmers now.

It is nice to hear those kinds of questions, rather than what we hear from the Liberals and the NDP on the other side, which are simply trying to look at yesterday's solutions instead of looking at tomorrow and coming up with ways we can go forward.

I do see the opportunity for a voluntary wheat board to thrive in that kind of market. I think some farmers will choose that route and some will choose to market on their own. Farmers deserve and need that choice to be able to make those decisions for themselves.

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

Mr. Speaker, I am pleased to participate in this debate today, even though I am sure that my Conservative colleagues will not be as pleased. Every time that a Quebecker rises—as I often have—to speak about the Canadian Wheat Board, they tell us that we have no business talking about this issue because it has nothing to do with us. But it is perfectly fine for them to interfere in Quebec's business. One thing is for sure: no one can deny that I have experience from my six years as vice-chair of the Standing Committee on Agriculture and Agri-food. It is no secret that the topic of dismantling the Canadian Wheat Board was often on this committee's agenda.

What the majority Conservative government wants to do with the Canadian Wheat Board comes as no surprise. In 2002, when he was a member of Parliament for the Canadian Alliance, the current Prime Minister moved a motion to dismantle the Canadian Wheat Board. The day that the current Prime Minister became leader of the Conservative Party, when there was a merger of the Canadian Alliance and the Reform Party, or that party and the Conservatives, the dismantling of the board became part of the new party's platform. The party tried all kinds of things, but fortunately it was a minority government at the time.

I remember that the Minister of Agriculture and Agri-Food, before being appointed minister, introduced Bill C-300 to dismantle the Canadian Wheat Board, the collective marketing tool. A section of the act specifies that a plebiscite must be held. The Conservatives did that, but they excluded some voters. Not all farmers had the right to vote. They fiddled with democracy to obtain the desired result. People, mainly wheat producers, were excluded from the plebiscite in order to obtain the desired result. But the Canadian Wheat Board, not to be out-manoeuvred, recently conducted its own plebiscite: 62% of western producers want to keep this collective marketing tool—the Canadian Wheat Board. All of a sudden the Conservative government refused to acknowledge these results because it was not the one that organized the referendum to its liking.

I also remember what happened with the bulk mailings, the ten percenters, that members can send to their ridings. Members of the Conservative Party flooded their ridings and others—we were allowed to do so at the time—with ten percenters on the referendum. The use of these ten percenters to campaign against the Canadian What Board was rather questionable. Today, it is not surprising that the majority government is finally attaining its goal, that is deciding the fate of the Canadian Wheat Board as we know it today. That is what tonight's vote will prove unfortunately. The Conservatives have the right to do it. They are fixated on it; it is their ideology. They believe that there will be a mixed market, including the voluntary use of a new board.

I am pleased to be able to speak and give examples. Voluntary collective marketing was tested in Quebec in the 1990s. It did not work. Today, not all producers agree that collective marketing agencies are the best option for various sectors, particularly wheat and maple syrup in Quebec. However, they have decided to make use of collective marketing agencies. The majority of them are satisfied and feel that it is the best way for them to make a living from agriculture.

It is important that the House is aware of an important section of the Canadian Wheat Board Act. Section 47.1 clearly states that farmers, the western producers of wheat and barley, must decide their own future. And I believe they did so during the referendum organized by the Canadian Wheat Board. Sixty-two per cent said they want to keep the single desk. But the government is not listening to them. It is even saying that since the majority of people in western Canada voted for Conservative members, it shows their desire to see the Canadian Wheat Board dismantled. We all know that democracy goes further than that.

The member who spoke before me mentioned it: people did not vote on just that one issue. A real plebiscite must be held in order to ensure that it is the people who decide whether or not to dismantle the Canadian Wheat Board.

I rise as well today because members of the Union des producteurs agricoles du Québec came to see us this week. They have been very clear about this from the outset. They continue to support western producers who want to keep the Canadian Wheat Board.

According to the UPA, the Canadian Wheat Board ensures that producers have a better and more equitable market return and that the supply of wheat to the agri-food industry is more predictable and stable. The UPA is also of the view that we cannot allow the Conservative government to destroy such an influential tool, one that creates more than 14,700 direct and indirect jobs, with spinoffs worth almost $1 billion.

I, the member for Richmond—Arthabaska, am not the one saying so, but rather the Union des producteurs agricoles du Québec, which is in constant contact with producers in other provinces, especially wheat and barley producers in western Canada.

I have been told that this issue does not affect us. However, I must say that the Fédération des producteurs de cultures commerciales du Québec also supports the board. These people really do the same work. These grain producers support producers who want to keep the Canadian Wheat Board's single desk system.

In the past, perhaps this issue did not really affect Quebec producers. However, the planned dismantling of the Canadian Wheat Board has become problematic for us with the implementation, by the Fédération des producteurs de cultures commerciales du Québec, of its own marketing agency for wheat for human consumption in Quebec. With this agency, the Fédération des producteurs de cultures commerciales du Québec is the only agent authorized to market all wheat for human consumption in Quebec. Its role is similar to that of the Canadian Wheat Board. This type of agency can exist because of the authority granted to producers' groups by the Quebec Act respecting the marketing of agricultural, food and fish products.

The Fédération des producteurs de cultures commerciales du Québec and the UPA are of course worried about what the Conservative government has in store for the Canadian Wheat Board, especially when other countries are constantly attacking our collective marketing tools such as the Canadian Wheat Board and supply management. I know the Conservative government does not like it when we draw a parallel between supply management and the Canadian Wheat Board, but they are both collective marketing tools that are constantly being attacked by other countries at the World Trade Organization. This is because those people want to negotiate their way into our market in order to sell their own products without any obstacles.

In light of what the Conservative government wants to do to the Canadian Wheat Board, there are also concerns in Quebec about the fate of supply management, which, I repeat, represents 40% of Quebec's farming economy. It is not insignificant.

Advisors to the current Prime Minister always said that if the Conservatives had a majority, they would attack the Canadian Wheat Board and supply management and implement a free market system.

In closing, we have to respect the true will of the farmers, wherever they are. I rise today on behalf of the farmers in Quebec who have told me they want western Canadian farmers to be respected and to be allowed to keep the Canadian Wheat Board.

[Françoise Boivin, NDP, Gatineau, QC]

Mr. Speaker, given that the hon. member has been the vice-chair of the Standing Committee on Agriculture and Agri-Food for six years, can he explain to the House the advantages of a supply management system and collective marketing? That will help us understand the issues related to this bill a little bit better.

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

Mr. Speaker, I would like to thank the hon. member for her question.

I was saying that there is some concern, because losing the supply management system in Quebec is a big deal. Producers themselves decided that they wanted to set the prices and prevent certain imports, although a percentage of products can still cross our border, whether it be dairy products, poultry products or eggs.

However, the supply management system makes it possible to guarantee that producers will get a decent price and that there will be no unjustified fluctuations in price for consumers. This is a clear advantage over other countries that have abandoned the supply management system. I am thinking in particular of New Zealand, where there are huge fluctuations in prices and where everyone loses.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, the government is going out of its way to claim that this bill is all about freedom.

My colleague made reference to how critical the supply management system is, much in the same way as the Canadian Wheat Board is. It protects industries in many different ways. It ensures a fair market price. It protects tens of thousands of jobs across the country.

This bill is not about freedom. This is about the impact the bill will have on the prairie farmer. Ultimately it is going to destroy family farms on the Prairies. It is going to hurt communities that rely on those small farms.

Does the member believe that this bill has anything to do with freedom as Conservative member after Conservative member claims?

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

Mr. Speaker, I would like to thank the hon. member for his question. He is well positioned to know the ins and outs of this issue concerning the Canadian Wheat Board because, if I am not mistaken, he is a member from the Winnipeg area, and the Canadian Wheat Board has its head office in Winnipeg.

One thing must be said about freedom: the one true freedom that western farmers should have in this is the freedom to choose what they want.

Section 47.1 of the Canadian Wheat Board Act is very clear: producers must have the last word, not the government, not the Prime Minister, not the Minister of Agriculture and Agri-Food. The farmers must be the ones to choose. If they decide they no longer want the Canadian Wheat Board, we, the Parliamentarians—including government members—must acquiesce.

But that is not the case. The only time the government wanted to organize a referendum, it did not allow farmers to vote. When the Canadian Wheat Board organized a referendum, the numbers were quite telling—and I someday hope to see these numbers in favour of Quebec sovereignty. Sixty-two per cent of western farmers decided that they want to keep the Canadian Wheat Board. That is their freedom of choice, their freedom of speech. That is what they want, and we must respect that.