This bill has received Royal Assent and is now law.
Summary
This is from the published bill.
This enactment amends the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act to provide that the perishable fruits and vegetables sold by a supplier to a purchaser, as well as the proceeds of sale of those fruits and vegetables, are to be held in trust by the purchaser for the supplier in the event that the purchaser has not fully paid for the fruits or vegetables and becomes bankrupt or the subject to a receivership or applies to the court to sanction a compromise or an arrangement.
Elsewhere
All sorts of information on this bill is available at LEGISinfo, an excellent resource from Parliament. You can also read the full text of the bill.
Bill numbers are reused for different bills each new session. Perhaps you were looking for one of these other C-280s:
C-280 (2016)
An Act to amend the Income Tax Act (golfing expenses)
C-280 (2011)
National Strategy for Chronic Cerebrospinal Venous Insufficiency (CCSVI) Act
C-280 (2010)
An Act to amend the Employment Insurance Act (qualification for and entitlement to benefits)
Votes
Oct. 25, 2023Passed 3rd reading and adoption of Bill C-280, An Act to amend the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act (deemed trust – perishable fruits and vegetables)
May 17, 2023Passed 2nd reading of Bill C-280, An Act to amend the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act (deemed trust – perishable fruits and vegetables)
This is a computer-generated summary of the speeches below.
Usually it’s accurate, but every now and then it’ll contain inaccuracies or total fabrications.
Bill C-280 aims to amend the Bankruptcy and Insolvency Act and the Companies' Creditors Arrangement Act to establish a "deemed trust" that prioritizes fresh fruit and vegetable vendors in cases of buyer insolvency, ensuring they are paid for their produce. This would give suppliers priority access to proceeds from the sale of produce, including inventory, accounts receivable, and cash on hand. The goal is to provide financial protection, align Canadian regulations with those in the United States, and strengthen the Canadian produce sector.
Conservative
Supporting financial protection: The Conservative Party supports Bill C-280, which aims to provide financial protection for fresh fruit and vegetable farmers in Canada. They believe this bill is crucial to address high food prices, rising inflation, and strained supply chains. The bill would establish a limited deemed trust to give suppliers priority access to proceeds during bankruptcy proceedings, helping offset losses from sold produce.
Addressing competitiveness issues: The Conservatives argue that the lack of financial protection impacts Canada's competitiveness with the United States, as Canadian suppliers cannot easily access dispute resolution mechanisms available in the U.S. A financial protection tool in Canada would pave the way for the United States Department of Agriculture to restore Canadian produce sellers’ preferential access to the U.S. dispute resolution mechanism.
Protecting farmers' livelihoods: The Conservative Party believes that bankruptcies within the fresh fruit and vegetable industry jeopardize farms and livelihoods. The constant fear of non-payment limits farmers’ ability to invest in their businesses and plan for the future. The bill aims to save family farms by creating a reciprocal agreement with the U.S. to protect them from losses in the event of a dispute.
Enhancing food security: The Conservatives state that Bill C-280 recognizes the need to support Canada's produce sector and protect food security. They aim to ensure that Canada's bankruptcy laws recognize the particular challenges and demands of growing and selling fresh fruits and vegetables. They argue that by passing Bill C-280, food security would be protected and the produce sector would be strengthened, potentially lowering costs for Canadian consumers.
NDP
Strong support for Bill C-280: The NDP strongly supports Bill C-280, highlighting that it will provide huge benefits at no cost. They view it as a non-partisan measure that has been a long time coming and aligns with their promise to Canadians since 2015.
Protecting farmers' livelihoods: The NDP emphasizes the risks faced by fruit and vegetable farmers due to the perishable nature of their products, high input costs, and the increasing challenges posed by climate change and unreliable supply chains. They believe Bill C-280 will help prevent farms from going bankrupt due to lack of protection in the supply chain.
Urgency for action: The NDP is calling for the bill to pass quickly through third reading and the Senate, emphasizing that the Fruit and Vegetable Growers of Canada and the Canadian Produce Marketing Association are waiting for action. They want to see the bill reach the Governor General's desk and receive royal assent without delay.
Bloc
Strong support for Bill C-280: The Bloc Québécois strongly supports Bill C-280, which seeks to amend the Bankruptcy and Insolvency Act and the Companies' Creditors Arrangement Act to protect vendors of perishable products like fruits and vegetables by treating the value of those goods as held in trust, placing them at the top of the list of creditors.
Frustration with delays: The Bloc expresses frustration that the bill has taken so long to get to this point. They reference Liberal promises dating back to 2014 and the fact that unanimous consent to send the bill directly to the Senate was not granted, which would have expedited the process.
Protecting vulnerable producers: Members emphasized the vulnerability of produce growers due to unbalanced negotiations with purchasers and the risk of losses from unsold perishable goods. They are seeking a system that prioritizes the payment of fruit and vegetable producers over bank creditors.
Canada lagging behind U.S.: Bloc members highlight that the U.S. revoked preferential access for Canadian perishable agricultural products in 2014 due to Canada's lack of similar protections. The bill's passage is seen as a means to restore that access and align Canada with the U.S. Perishable Agricultural Commodities Act, which was adopted in the 1930s.
Liberal
Strong support for C-280: The Liberal speakers expressed strong support for Bill C-280, emphasizing its importance for farmers, particularly fruit and vegetable growers, by creating a priority under the Bankruptcy and Insolvency Act to allow farmers to claim when buyers become insolvent.
No cost to government: Members highlighted that the legislation would not incur any cost to the Government of Canada, representing a legislative change that empowers farmers financially through prioritization without requiring additional government spending.
Monitoring credit access: They acknowledge potential risks concerning access to affordable credit for growers and sellers, and the potential for the bill to restore Canada's preferential access to the formal dispute resolution process under the United States' Perishable Agricultural Commodities Act (PACA). They urge the government to monitor the situation and implement corrective measures if needed to prevent lenders from reducing credit availability or increasing costs for fresh produce sellers.
Streamline regulatory approvals: Liberals advocated for further legislative and regulatory adjustments to support the agricultural community, citing the streamlining of regulatory approvals for agricultural products as an example of changes that could positively impact farmers without increasing budgetary demands.
The House will now proceed to the taking of the deferred recorded division on the motion at third reading stage of Bill C‑280, under Private Members' Business.
Links & Sharing
(The House divided on the motion, which was agreed to on the following division:)
