Thank you very much, Mr. Chair.
Let me begin by saying that I agree with everything Mr. Chorney and Mr. Phillips have just said with regard to biofuels, and I certainly will try not to be repetitive.
Suffice it to say that we applaud in principle almost any regulation and/or legislation that helps, first of all, environmental sustainability and at the same time creates a revenue stream for farmers or helps farmers reduce their costs. When we talk about that, we can include almost any form of bio-energy; we can talk about wind power or solar power.
I was talking recently to a fruit grower in B.C. who is going to be powering his entire fruit operation, his irrigation system, his cooling shed, his house, everything, with solar power. We think that's an excellent form of bio-energy as well. Whether it's biodigesters, whether it's creating a revenue stream from carbon credits, or whether it's using waste material to generate biofuels—I know Quebec has done some research on using SRM, and I was recently talking to a cattle producer from Saskatchewan who was concerned about the high cost of disposing of SRM—or whether we use switchgrass that has been grown on buffer zones, which of course, as you know, is another very important environmental initiative, we can create a real integrated policy in the whole approach to environmental sustainability.
Specifically to Bill C-33, for us to support this bill is a no-brainer. We think it's an important step toward facilitating the whole biofuel initiative that we think has a lot of potential for the farm gate and for additional industry in Canada. In fact, if you look at how close we are to the U.S., and if you look at the list of countries where the U.S. is currently importing ethanol from, Canada isn't even on that list. So we have the potential, first of all, to fill our own market requirements and then to possibly export it as well.
People have said this bill is merely administrative. Whether it's administrative or whether it's more, again, we think it embodies the whole initiative of creating a revenue stream for farmers and at the same time doing something important for the environment. That contribution to the environment, while it creates a revenue stream for farmers, also creates a very important crosswalk between the Canadian public and the farm gate in that the public sees that farmers are making an important contribution, and it's a win-win-win for everybody.
I've already talked about the revenue stream, and I also mentioned the fact that we can use waste products in many cases. Has the science gone far enough? No. We believe we can continue to pursue science and make the industry even better and even more efficient. We also believe it contributes to rural development, especially if we make sure we create a lot of sites across Canada that produce either biofuel or ethanol. We think it contributes greatly to rural development.
On the revenue stream, it's very important that we develop very competitive policy with the U.S. As everybody around this table knows, Brazil is way ahead of us on this, the U.S. is far ahead of us on this, and we need to make sure we develop competitive policy within Bill C-33. It's an administrative bill to facilitate this initiative, but make sure we develop further competitive policy around it. If we're going to create a demand in Canada, let's make sure we produce the biofuel, let's make sure we produce the feedstock, and let's also make sure we create opportunities for farmers to be involved at the manufacturing level.
The reason why this is very important is because we all know the U.S. biofuel industry was built on the backs of some very high subsidies, and we know their industry currently is very strong as a result of it. We know, in talking to farmers who were involved at the manufacturing level as well, that they were able to pay for the bricks and mortar of a manufacturing plant in a year's time, so their industry is very strong. We're going to have to make sure we create a strong industry alongside that as well.
I already talked about the potential for rural development, and of course having many sites across Canada doesn't only create rural development, it also reduces transportation in transporting the biofuels to end-use locations.
It also goes very well with the co-op investment plan that CFA has proposed, where creating investment capital for co-ops could allow farmers to be even more involved at the manufacturing level. Of course, and I think I may have mentioned this around this table before, looking at Quebec as a model, where $6 million resulted in $36 million of direct investment in co-ops and a further $100 million of investment in rural development, we again think this fits very well, in an integrated way, with our whole plan to move towards the potential that we have in biofuels. It has a potential, as I mentioned earlier, to give us a value-added component to waste material, whether it's wheat straw, SRM, or anything else. Again, it's a revenue stream for farmers where otherwise they would have no revenue stream.
Are there some concerns? Yes. We would like to make sure that any repeal of excise tax does not apply to farmers as they're making this important contribution to the environment. We would want to make sure that any incentives that have been talked about stay around long enough for the industry to get a very solid footing. We would not want to see any repeal of incentives. Let's make sure we get this industry on a totally solid footing before we repeal incentives.
Is the increase in feed prices a challenge to the livestock industry? Of course, but we would argue that the increase in feed prices, first of all, is not solely as a result of the biofuel industry. We've had problems around the world, but we also have to figure out a way for grain producers to get what they deserve to get for their production and for livestock producers to make money at the same time. So if you look at, say, the hog industry, record slaughter numbers in the U.S. and our strong dollar contribute more to the crisis in the livestock industry than an increase in feed.
The concern for food prices has been raised. I can assure you that any stress at the retail level on food is not as a result of farmers getting paid more for their production. In fact, if you look at the market share a farmer has at the retail level, even doubling the corn price doesn't have to result in any perceptible change of price at the retail level. If you look at 2007 figures over 2006 figures, our increase in the grocery basket was a mere 0.6%. So we don't believe that food prices are an argument against this very important initiative.
As I mentioned earlier, can the science get better? Yes. I mentioned this last time: let's make sure we do as Wayne Gretzky used to say he did. Let's go where we think the puck is going to be. Let's not go where the puck already has been or is; let's go where the puck is going to be.
Can we become more efficient? Of course we can become more efficient, but let's do it together as we pursue this very important initiative.
Thank you.