Evidence of meeting #42 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 wheat.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Greg Arason  President and Chief Executive Officer, Canadian Wheat Board

4:25 p.m.

President and Chief Executive Officer, Canadian Wheat Board

Greg Arason

I believe those numbers came--

4:25 p.m.

Liberal

Paul Steckle Liberal Huron—Bruce, ON

They were as a benefit to the farmers because of the Wheat Board.

4:25 p.m.

President and Chief Executive Officer, Canadian Wheat Board

Greg Arason

As I indicated earlier, there have been a lot of studies that have come up with various benefits related to the maximization or returns through the single desk.

I would say off the top that any organization, whether you'd be in the grain business or whatever, that had control of the supply chain would be in a better position to maximize profits. I think that goes without saying.

The issue is, in many respects, pooled prices versus spot prices; we've talked about that. I think if we'd seen prices falling in this year we'd have different comments being made about pooled prices versus spot. But really, as I said in the beginning, I'm there to run a business. I believe we're selling at good values throughout the year.

You have to pace your sales throughout the year. You cannot be opportunistic, because customers can't take all the grain at once. They need to have a steady supply, a steady flow of product. The reality is that's how the grain industry works, whether it's canola or wheat or whatever.

I really would just say that with the tools we have, with the customer relationships we have, with the sales force we have, we do a good job of getting a fair return and a good return for farmers.

4:30 p.m.

Liberal

Paul Steckle Liberal Huron—Bruce, ON

David, you have, I think, consistently given the impression to this committee that people you represent in your riding and in that part of western Canada do not take the view that the Wheat Board is the only agency, or perhaps the best agency, to market wheat. I have, over the last five months, received numerous letters from people from your particular riding, as well as from other ridings.

Given that your particular representative is a supporter of the Wheat Board, given that in recent elections that particular member had more than doubled the number of votes of his two competitors, who were not supportive of the Wheat Board, how do you rationalize that against your judgment that the people in your area are supportive of your views on the Wheat Board?

4:30 p.m.

Conservative

David Anderson Conservative Cypress Hills—Grasslands, SK

There are a couple of things, I think. First of all, I assume most of the numerous letters that you got came from one fax number. I think most of us experienced that. And I know that they were recruited, that people were going out—

4:30 p.m.

Liberal

Paul Steckle Liberal Huron—Bruce, ON

They were from different people.

4:30 p.m.

Conservative

David Anderson Conservative Cypress Hills—Grasslands, SK

Yes, people were going out recruiting letters. They came with much the same format. That's fine; people can write in.

I respect the fact that Mr. Hill gets elected to the Canadian Wheat Board. That's fine. I have a lot of people who oppose his position, as well. I have lots of people who say they just aren't going to participate, because they believe they should have the freedom to market their own grain. They do not want to be part of that vote.

4:30 p.m.

Liberal

Paul Steckle Liberal Huron—Bruce, ON

Two to one--wouldn't you suggest that's pretty substantial?

4:30 p.m.

Conservative

David Anderson Conservative Cypress Hills—Grasslands, SK

I think he got about 3,300 votes last time in that entire area, so—

4:30 p.m.

Liberal

Paul Steckle Liberal Huron—Bruce, ON

That's more than twice what the other two got all put together.

4:30 p.m.

Conservative

David Anderson Conservative Cypress Hills—Grasslands, SK

That's fine; his people come out and vote.

4:30 p.m.

Liberal

Paul Steckle Liberal Huron—Bruce, ON

That's what democracy's all about. What's wrong with the other people? Do they not feel that it's important?

4:30 p.m.

Conservative

David Anderson Conservative Cypress Hills—Grasslands, SK

I think it's been clear what my position on the Wheat Board has been since 2000, because during my elections at home, that's the issue that has dominated the public forums. We've got about the same six or eight people who come out to most of the public forums to make their points. We have discussed this ad nauseam, and we still seem to do okay in the ridings.

4:30 p.m.

Liberal

Paul Steckle Liberal Huron—Bruce, ON

Mr. Arason, can you tell us whether you believe that single-desk selling, compared to making the Wheat Board an option for farmers--where it would become another grain company, in a competitive marketplace in North America, where we compete with the ADMs and the Cargills of this world--is going to be a situation that probably ends up in failure, similar to a marriage?

I look at the Wheat Board as a partnership between two people, between the farmers and the business itself. If you bring a third party in, and you have a concubine on the side, it isn't long before you have a divorce, and things start going all over the place. I'm just wondering whether you can find some similarity with that analogy. It's perhaps one that we quite understand. I fail to see how we can have both and think that it's going to give us the results we want.

4:30 p.m.

Conservative

Ted Menzies Conservative Macleod, AB

A point of order, Mr. Chairman.

4:30 p.m.

Conservative

The Chair Conservative James Bezan

I'm not sure I can....

4:30 p.m.

Conservative

Ted Menzies Conservative Macleod, AB

Can I just jump in, Mr. Arason, and—

4:30 p.m.

Liberal

Paul Steckle Liberal Huron—Bruce, ON

I have the floor.

4:30 p.m.

Conservative

Ted Menzies Conservative Macleod, AB

—save you having to make the statement, since you have stated off the bat that you're not going to take either side of it? I think that was a leading question and very—

4:30 p.m.

Conservative

The Chair Conservative James Bezan

I am going to rule on this.

Mr. Arason, you said that at the beginning, and if you don't want to answer this question, you don't have to.

4:30 p.m.

Liberal

Wayne Easter Liberal Malpeque, PE

A point of order.

4:30 p.m.

Conservative

The Chair Conservative James Bezan

Mr. Easter.

4:30 p.m.

Liberal

Wayne Easter Liberal Malpeque, PE

Maybe the parliamentary secretary could answer this one: Will Mr. Arason be fired, as was the last CEO, if he answers the question?

4:30 p.m.

Conservative

The Chair Conservative James Bezan

I don't think that's.... That's a matter of debate.

4:30 p.m.

Liberal

Paul Steckle Liberal Huron—Bruce, ON

It was my period of time for asking questions. I didn't interfere in your period of time—