Evidence of meeting #32 for Agriculture and Agri-Food in the 39th Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was seeds.
A recording is available from Parliament.
Conservative
The Chair Conservative Gerry Ritz
Is there anyone else?
(Motion agreed to [See Minutes of Proceedings])
We'll get those in as quickly as we can.
All right, good. Those are done. Thank you.
Now, moving back to the business at hand, joining us for this hour we have Mr. Ken Motiuk and Mr. Bruce Johnson, appointed directors of the Canadian Wheat Board.
Gentlemen, you have 10 minutes to make a presentation, if you so desire, and then we'll move to the questions and answers.
Bruce Johnson Director, Canadian Wheat Board
We'll be brief. We're basically responding to an invitation. We're here to answer questions as best we can.
After watching yesterday's question period, I expect a lively session. I'm not sure that this is exactly the perfect place for me to be today. I think we should just move forward.
Conservative
Ken Motiuk Director, Board of Directors of The Canadian Wheat Board, Canadian Wheat Board
Thank you, Mr. Chair and committee members.
I'll just add, by way of introduction, that I am a farmer in western Canada. We operate a family farm just outside of Edmonton with approximately 5,000 acres of crops. We are also involved in the hog industry through a partnership venture. We developed a supply chain for pork. We market hogs. We raise hogs and put them right through a value chain to fresh pork on the shelves of Thrifty Foods on Vancouver Island. This is the type of opportunity that was never possible under the hog marketing boards. It is now possible for us to do things like this. So we participate in the value-added in that manner.
We're also part of a cattle feedlot operation, so we're involved in all elements of agriculture. We market several thousand tonnes of wheat annually, so we have a vested interest in the way wheat is marketed in western Canada.
I have corporate governance experience. I was on the board of directors of United Grain Growers, and then Agricore United for over 12 years. I currently serve on the board of the Credit Union Deposit Guarantee Corporation, which is a regulatory body that administers the Credit Union Act in Alberta. The operation of all the credit unions in Alberta comes under us. It is our duty to ensure that all credit unions in Alberta are operated properly, with good corporate governance, good risk management. This is on behalf of the minister. So we have the power to oversee the way the entire credit union system operates in Alberta.
That's an idea of some of my background, because I understand that my CV was not circulated.
Thank you.
Liberal
Wayne Easter Liberal Malpeque, PE
Thank you, Mr. Chair. My questions will be mainly to Mr. Johnson.
The minister, in his media statement on November 1 announcing your appointment, stated, “Mr. Johnson's considerable experience in the grain business will be a tremendous asset to the Board of Directors of the CWB.” In the note along with the minister's statement there is reference that you spent 20 years with Saskatchewan Wheat Pool.
According to The Western Producer on December 23, 1999, in the article saying that “Johnson was fired” from Sask Wheat Pool, I understand that the board of Sask Wheat Pool “took the action because of the pool's poor performance”, an area you were responsible for.
Were you fired by the Sask Wheat Pool for poor performance? If not, have you taken legal action against Sask Wheat Pool and The Western Producer for stating that you were? In your interview--I expect you were given an interview with the minister--did you inform the minister that you were in fact fired from Sask Wheat Pool for actions that resulted in the loss to Sask Wheat Pool of some $28.7 million in six months?
Director, Canadian Wheat Board
I was fired, but it was without cause; it was not for poor performance. I reached a settlement with Sask Wheat Pool that certainly involved the legal community. I am sure, since it was in the press, that the minister was fully aware of my background.
Just for the record, Sask Pool maintained the processes and programs I put in place long after my departure. Some of them are still maintained to this day. While I was there, my divisions didn't lose money.
Liberal
Wayne Easter Liberal Malpeque, PE
I really find it strange, Mr. Johnson, you would say that, since it was in the press that the minister was fully aware. I would think that if the minister didn't ask whether or not you ever were involved and let go from a major grain corporation, it is one question that certainly should have been asked, because you were going to be a director of a company that sells $4 billion to $6 billion on behalf of Canadian farmers to some 70 countries. That would certainly be a negative point on your ability to do the job.
The second question relates to the note the minister attached to his statement on November 1. It seems to have failed to include your attachment to FarmGro Organic Foods, which according to The Western Producer of January 9, 2003, went into receivership. A former board member of the company said, referring to you, “I don't think he was the man for the job.”
Did you inform the minister of your attachment to this failed company, of which you were a top executive, in his discussion with you on your ability to do this job?
Director, Canadian Wheat Board
FarmGro was an insolvent organization that I was asked to try to turn around. We did get it up to full capacity. One of the very secure shareholders took that as an opportunity to sell it at value and get out.
The individual you were commenting on was one of the shareholders and was unhappy with everybody, not just with me. Once again, it's something that is very much on the public record, and the minister would be fully aware of it.
Liberal
Wayne Easter Liberal Malpeque, PE
I will certainly take your word that there was a director who was quite upset and who may have made those kinds of comments, but you no doubt were involved with the company, and I would really like to know--it may be something we would ask the minister--if he was aware of both of these instances.
You're well known, and I don't disrespect your position--I'll state this on the record--in terms of opposition to the board. I think everybody's entitled to their position. I feel strongly the other way, and you're entitled to criticize me.
However, you are moving into a position, or you may be, on the board of directors for which there is an act of Parliament, and under the duty of care of that organization.... There's no question that the minister is filling those positions with people who are very much opposed to the single desk selling of the Wheat Board, as Ken Ritter himself was at one point in time, and now he's one of its strongest proponents.
Anyway, under duty of care, it says that—
Conservative
The Chair Conservative Gerry Ritz
Excuse me, Mr. Easter. Do you want to make sure the media got that down right, and back up just a second here?
Liberal
Wayne Easter Liberal Malpeque, PE
I've got full trust in this media. There are some in whom I don't, Mr. Chair.
Liberal
Wayne Easter Liberal Malpeque, PE
It says this:
The directors and officers of the Corporation in exercising their powers and performing their duties shall (a) act honestly and in good faith with a view to the best interests of the corporation...
Do you really feel, given your strong opposition to single desk selling--which everyone knows is the key to the future of the Canadian Wheat Board, the key to its being able to maximize returns back to primary producers--that you can provide that duty of care as required under the act?
Director, Canadian Wheat Board
I feel very strongly that I can do that. I think that as we move forward into a period of potential change, someone from my background could certainly contribute as the board goes forward in whatever form.
Liberal
Wayne Easter Liberal Malpeque, PE
Has the minister, in his discussions with you...and I'm even beginning to wonder if he had discussions, when we can't be sure that your time with Saskatchewan Wheat Pool and FarmGro Organic comes to the fore. But has anyone in the federal government--either the minister, the parliamentary secretary, or the parliamentary secretary's staff--given you any indication that you would become the new CEO of the Wheat Board on an interim or permanent basis?
Director, Canadian Wheat Board
No, they have not, and I should say that I have had conversations with the minister's office with respect to my CV. Let's be clear about that.
Conservative
Bloc
Roger Gaudet Bloc Montcalm, QC
Thank you, Mr. Chairman.
I do not know either one of you. I just have two short questions to ask.
Are you members of a political party? Do not tell me which one, I know you are not members of the Bloc québécois. I would like to know if either one of you is a member of a political party.
Director, Board of Directors of The Canadian Wheat Board, Canadian Wheat Board
Do you mean federal or provincial?