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

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, for over 60 years the Canadian Wheat Board has provided an essential service to farmers throughout the Prairies. Today is indeed a sad day, as we see the government has made the decision to limit debate in an attempt to force the bill to the next level. We need to be very clear in terms of just how beneficial the Canadian Wheat Board has been to the prairie farmer over those years.

It is in essence farmers working with farmers in order to maximize a reasonable return so that they can earn a respectable living on prairie farms. Over the years the Canadian Wheat Board has established itself at the top in the whole area of branding, particularly in wheat, and I will focus strictly on wheat for now.

Throughout the world we are recognized as the best producers of wheat. In good part it is because of the prairie farmer and because of the fine work that the Wheat Board has done over the years. It is because of that history and that branding that we are able to get the maximum return for our farmers. Farmers are able to derive many benefits through the Canadian Wheat Board.

I would suggest that the action we are taking today is to the detriment of the Canadian prairie farmer. I appeal to government members to give a second thought and heed the advice in what people are saying, not only inside this chamber but as prairie farmers in Manitoba, Saskatchewan and Alberta.

I will quote The Economist, which is a world-renowned news organization. It states:

Smaller producers, faced with mounting marketing costs, will inevitably have to sell their farms to bigger rivals or agribusiness companies. Eventually, this should lead to consolidation and fewer, bigger farms—making Canada a more competitive wheat producer, but devastating small prairie towns, whose economies depend on individual farmers with disposable income.

Let there be no doubt that this bill is going to destroy Canadian wheat farmers. There are a number of wheat farmers who will be destroyed by the passage of the bill. Let there be no doubt that the bill would be to the detriment of many rural prairie communities. We need to realize that.

Farmers have spoken on the issue. Even though there was a legal obligation on the government, through the Canadian Wheat Board, to have a plebiscite in accordance with section 47.1, the government failed to meet that obligation. However, the Wheat Board went ahead and had an independent plebiscite on the issue. In the plebiscite 62% of our wheat producers clearly indicated that they wanted to retain the Wheat Board.

We know why the prairie farmers wanted to retain the Wheat Board. It is something they are far more familiar with than 90% of the members inside this chamber. They saw the value of the Canadian Wheat Board and they believe it is extremely important to the long-term survival of prairie farmers and their local rural communities. They saw the value in terms of producing that quality wheat and in having the brand of the Canadian Wheat Board. They understand the issue. They do not need to be lectured by the Prime Minister as to why it has to go.

I posed the question to the Prime Minister: why does he have a personal hatred towards the Canadian Wheat Board?

That is what this is all about. It is because the current Prime Minister cannot stand the Wheat Board, and that is well documented. He is not listening to the facts. He is not looking for any sort of research or documentation that proves that the demise of the Wheat Board is good for the prairie provinces. He has not tabled anything to that effect. The Prime Minister is treating our prairie farmers like trash.

What does the Prime Minister say specifically? On October 7, 2011, The Globe and Mail stated:

Prime Minister Stephen Harper has a message for all the critics of his government’s plan to end the monopoly of the Canadian Wheat Board: Get over it.

“It's time for the wheat board and others who have been standing in the way to realize that this train is barrelling down a prairie track,” the Prime Minister said.

He continued:

“You're much better to get on it than to lie on the tracks because this is going ahead”.

I have fairly thick skin and I can take the hurdles that have been tossed over from the other side, even if it is coming from the Prime Minister, but he needs to know full well that we are talking about tens of thousands of prairie grain farmers who disagree. These are the tens of thousands of prairie farmers he is telling to get on board or lie on the track.

I have never seen such disrespect for westerners as I have seen from this particular Prime Minister. If he really wanted to listen to what people out west are saying, why does he not instruct our committee here in the House of Commons to go out west and listen first-hand to what the prairie farmers are saying, not the members of Parliament here in Ottawa? Let us take the debate to the Prairies.

The Premier of Manitoba has launched a lawsuit, I understand. There is phenomenal opposition to this legislation in the Prairies. Where is the intestinal fortitude? Where is a Prime Minister who wants to show leadership, take it to the Prairies and listen to what the farmers have to say?

Why not allow the Premier of Manitoba, the average farmer and others to go before the Manitoba legislature? I am sure we have some pretty good connections. We could arrange for committee rooms inside the Manitoba legislature to be made available for parliamentarians from Ottawa to listen to presentation after presentation of those individuals who want to send a message to the federal government. The recording, translation and all those facilities are in place there, and I can assure the Prime Minister that space would be made available in the Manitoba legislature. I am confident of that.

I would welcome the opportunity to open that committee by having the Premier of the Province of Manitoba indicate what he believes and why it is he believes the Canadian Wheat Board should remain.

I believe it is equally important that we hear from the prairie farmers, the individuals on whom this legislation would have such a profound impact. I would like to hear some of the rural municipalities come before a committee in the Manitoba legislature to provide their input.

What does the government have to lose if it is so convinced? The only argument the Conservatives put forth is freedom. They have no other argument. They argue that more flour mills will open up. They do not have any record or proof of that. They have no real tangible proof that will take place. In the last decade, how many pasta plants and flour mills did we see open in North Dakota, compared to the west? I suggest there have been more in the west.

I do not buy the argument of the Conservatives. I believe it is because the Prime Minister of Canada has a hatred for the Canadian Wheat Board. Now that he has his majority, he is prepared to do whatever it takes and even break laws that are currently in place. He is prepared to break laws to bring in this legislation. He will do whatever it takes.

I appeal to the Prime Minister to at least have the courage to bring it out and allow prairie farmers and others on the Prairies to contribute to this very critical debate on the future of the Prairies in Canada.

[Dave MacKenzie, Conservative, Oxford, ON]

Mr. Speaker, I listened to my friend across the aisle rail on and on and make many assumptive opinions, purely of his own, that have no basis in fact.

However, there are some real facts. I would like him to list all the ridings held by Liberal members west of the New Brunswick-Quebec border.

There may be some real truth to that message. If he takes it to heart, he will understand which party represents most of Canada, and certainly the west.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, it is a pleasure to respond to that question.

I would ask the member to look back to the late 1980s, to the F-18 crisis. There was an arrogant government, known as the Mulroney government, that made the decision to hurt the province of Manitoba in a very political way. Canadians in Manitoba recall that, and that is one of the reasons why, in 1993, Liberals won 12 of the 14 seats. Seats should never be taken for granted.

I would suggest that doing this to farmers, even though farmers do not support it, will have a residual effect. It is going to stick around. Farmers will not forget.

The Liberals might only have two seats in the Prairies and the NDP may only have three seats in the Prairies, but it just means that we have great potential for growth. That member is feeding that growth.

Personally, I would just as soon say to keep the Wheat Board and go from there.

[LaVar Payne, Conservative, Medicine Hat, AB]

Mr. Speaker, I appreciate the opportunity to get up and ask my colleague from Winnipeg North a question.

First, I would like to make a very short statement. On the weekend I was in a riding in the heartland of rural Canada, in a place called Burdett. There was a fundraiser there.

I talked to numerous farmers, and every one of them said, “Tell me, when are we going to make the change to the Wheat Board, so that we can sell our own grains, our own wheat, and our own barley?” That is not my question.

My question for the member for Winnipeg North is, would the member agree that farmers who seed the grain, harvest the grain, own the grain and sell the grain on the open market should be sent to jail, like one farmer in my riding who sold his own grain?

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, I was in the heart of Canada, in the beautiful city of Winnipeg. We are all very familiar with Winnipeg.

Over the weekend, I, too, met with some farmers.

[Some hon. member]

Name them.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Keith Ryan is one. I met with Keith on Saturday, and I believe he might even be one of the individuals who is looking at some sort of a lawsuit in trying to deal with the Wheat Board.

The reality is that when I was meeting with farmers in Winnipeg, they made it very clear to me that I had to come back here and fight to save the Wheat Board, because it is the farmers who want the Wheat Board.

To the member who just stood up and asked the question, I would suggest he come out to the prairie provinces. Winnipeg is a good place. I will be more than happy to arrange a meeting. That is the reason we need to have the agriculture committee come out west. There are some great people in western Canada. Let us hear what the west has to say about the government's agenda for the Wheat Board.

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

Mr. Speaker, with almost half of the arable land in Canada, an estimated 44,329 farms, agriculture is an essential industry and economic driver in my province. With 14 ridings, all representing a significant rural component, 13 out of 14 re-elected members are on this side of the House. The farmers in my province have spoken.

As a member of Parliament from Saskatchewan, I am honoured to represent western farmers and very pleased to have the opportunity to speak to the subject of ending the Canadian Wheat Board's monopoly and giving prairie wheat and barley growers the freedom to choose how they market their product.

The naysayers and doom and gloomers tell us that change is bad, that our western Canadian farmers are not capable of marketing their own grain. Are they somehow different from the farmers in other parts of Canada who apparently know how to market their own product, including wheat and barley? Farmers take all the risks: what to plant, when to harvest, and how and when to market what they produce. That is, unless they grow barley or wheat in western Canada.

It seems to me that change has been a constant over the years and industries have grown and prospered as a result. Let us look at how change has already transformed the Canadian Wheat Board over its 76-year history.

The CWB was established in 1935 as a voluntary marketing agency for prairie wheat. That was the original vision. In 1943 sales of wheat through the board became compulsory. Six years later, the Canadian Wheat Board powers were extended to include prairie oats and barley. Therefore, from 1949 to 1974, 25 years, the board was the single desk for western oats, barley and wheat, whether for human consumption or animal feed. The changes up to that point resulted in a single desk monopoly.

Then change moved things in a new direction. With changes to the feed grain policy in 1974 and again in 1976, exclusive marketing rights over prairie grain fed to animals in Canada were removed from the board. Did the animal feed producers fall apart and stumble into bankruptcy? They did not. In fact, the use of cereal grains for livestock has grown significantly since then.

Flash forward to 1989 when oats were removed from board jurisdiction. Did oat producers flounder? Absolutely not. Two new plants were announced within weeks of the decision and a thriving oats processing sector has since developed in western Canada. Farmers quickly adapted to the changes and the CWB was not missed.

Historically, what started out as a monopoly has been evolving over the last 35 years until what we are left with is a single desk for barley and wheat for export and human consumption. What was considered necessary during World War II is no longer what the savvy, smart farmers of the 21st century need.

Sylvain Charlebois, associate dean and professor of food distribution and policies at the University of Guelph, said:

At the end of the day, single-desk marketing should cease. Such a reform will make Canada more competitive, as the monopoly is a hindrance to our ability to compete globally.

Barley growers recognize that and so does the government.

The Canadian malting and brewing industry has lost confidence in the ability of the Canadian Wheat Board to reliably supply the malt and barley it needs to be competitive in international markets. Imagine what it is like to be locked into using one supplier and not have the confidence that the malt and barley will be there when the production line needs it.

It is time that western barley growers and wheat producers had some options. They take all the risks, they should be able to decide how and to whom to sell their grains. They know that commodity and food prices are rising to record levels, driven by growing demand for the high quality innovative food produced by Canadian farmers and food processors. This turnabout has boosted the bottom lines of our producers. Stronger farm incomes and higher prices are forecast well into the next decade.

The outlook for Canadian agriculture is bright and there is a new-found optimism in the farming industry in this country. According to a survey by Farm Credit Canada, three-quarters of farmers believe that their farm businesses will be better off in five years.

Knowing that farming has become increasingly modernized and competitive on the world stage, they are looking for new ways of doing business, new technologies and new marketing strategies. Succeeding in the 21st century involves looking at the Wheat Board through a different lens, a single desk is no longer needed.

The Minister of Agriculture asked department officials to meet with industry and stakeholders, including the Canadian Wheat Board, throughout the summer, in order to assist in developing a transitional plan for opening the market.

Our government has always said that it is open to seeing the continuation of the Canadian Wheat Board as a voluntary marketing option for producers. There will be producers who will continue to use the Canadian Wheat Board after the monopoly ends, and that is their choice. There will also be producers who prefer market freedom and they should have that choice.

Spencer Fernando of The Manitoban said:

Nobody is hurt by allowing farmers to freely market the products they worked to produce. Limiting the freedom of western farmers goes against one of the principles we believe in as Canadians.

Western Canadian wheat and barley farmers want the same marketing freedom and opportunities as other farmers in Canada and around the world. That is what our government has pledged to provide. That is what we promised when we were elected with a majority and it is what we stated in the recent throne speech. This promise will be kept.

This legislation, when passed, will give western Canadian wheat and barley farmers the freedom to position their businesses to capture the marketing opportunities that are open to them.

Change has always been a part of the Canadian Wheat Board's history and I expect it will continue to be.

Giving western Canadian farmers marketing freedom has been a long-standing promise of our government. Since I was first elected in 2008, I have been reminded of this promise over and over again. I am committed, along with our government, to work in the best interests of farmers and to give them the marketing freedom they deserve. By passing the bill, we will be keeping our promise.

I would like to thank the Minister of Agriculture and the parliamentary secretary for their dedication and hard work in bringing the bill forward and ensuring its swift passage. I encourage all opposition members to support the bill.

[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?