Thank you, Mr. Chair.
We're now at this motion for discussion, and quite honestly I'm not sure why we're here. The motion that had come forward actually...
We had a great discussion last week when the Outstanding Young Farmers were here, and it wasn't political. They were young farmers, and we had a number of them, including the acting chair at that time, who was a past nominee of that program. Randy Hoback was here also, and we had a great respect for them. Quite honestly, it was pretty refreshing to listen to these innovative young people who are going through some pretty tough struggles within their industry.
Some of them, particularly the ones in potatoes right now, are doing well. Some of the others in supply management are doing well. Over the last two or three years, some of our grains and oilseeds have done all right, but we have factors within our industry that are hurting, and I never heard any of them say that one solution was going to fix it for us. In fact, what I heard was quite the opposite. Just handing out dollars--and it would be interesting to go back and look at the blues on that--isn't the solution to what we have to do to be successful beginning farmers. Not all of them are really young, but many of them are beginning farmers.
In fact, the couple who led the delegation in terms of the presentation were in the pork industry. They talked about the ability to compete in the pork industry and the ability to level the playing field. One of the issues they talked about concerned competitiveness in the pork industry, for example.
I have a motion coming forward in terms of being competitive. In the pork industry there is a product that is used by our competitors in the United States that our producers in Canada can't use. What's the issue? It's a regulatory licensing issue, and one of the things the farmers continually ask is what we can do to level the playing field.
It is not the one issue of $31.70 per head. This is about making it so they can be competitive. They know they're good. They told us that. They know they are good farmers. They know they are efficient farmers. They know their productivity is as good as anyone else's around the world, particularly in comparison to the productivity of our major competitors, but we have some regulatory issues that are a hindrance to them.
SRMs are, quite honestly, one of those issues. COOL is one of those issues. The Canadian dollar, which fluctuates, is one of those. Some of those irritants we can actually try to do something about; some of them, such as the issue of the Canadian dollar, are bigger issues, but when we get to the SRMs--and I've talked to beef producers--there are some issues we've stepped into in terms of the industry and in terms of government that have been a disadvantage to us in terms of competition and competitiveness with our neighbours. Those are basically regulatory issues.
We have to see what we are doing with our money when we put $50 million towards the improvement of slaughter facilities and put out money to the industries mentioned by my colleague, including the $10 million that went to Keystone and the $10 million that went to Levinoff-Colbex. In terms of this motion, we're talking of putting most of our money into two or three major packers. If they're going to be using money that we have put forward, what is it being used for? Is it being used to advance the technology and advance the ability to remove SRMs in a more competitive and more environmentally sound way?
One of the things we have in our regulations is that we can't even process SRMs for use as fertilizer. That becomes a disadvantage to us in terms of some of our competitors.
Why is that? It's a regulatory issue, but it's a big issue.
My illustration will always be that we need to look at solutions that represent the motion that was passed. I believe everybody did that in good faith, because that's what we have to look at. But this motion basically doesn't talk about that. It talks about the immediate implementation of an assistance program for the cattle industry to help it cover the $31.70 cost per head, which represents the competitive gap between the U.S. and Canada with SRMs. That sounds really good. Maybe that is the number, but it isn't the cause or remedy to that issue. It can't be dealt with.
In a complex issue like SRMs, where we have standards, and competition from exporters that come into Canada and for those of us who are exporting into other countries, that is not the solution without having a full breadth of discussions about what we can do to actually... This is a one-shot $31.70. So a month from now, when it hasn't solved the financial issue, they'll come back and we'll have gone through that $31.70, which I think is $23 million.
We made an allocation of $50 million earlier on slaughter capacity and innovation to help the slaughter companies, the packers, be more effective in dealing with some of these issues. Then they'll come back and say it's actually another $23.50 or something. I don't know. But that's what happens when you just try to hand dollars off--except you'll likely be into a countervail and all the money that actually goes out will be wasted.
I really appreciate what André is trying to do in his motion. I don't discredit him at all for what he is trying to do in listening to some of his producers or an organization. But what we have in front of us is one single solution--a “one-shot give me the cheque” that won't actually go to the producers; it will go to the packers. There is absolutely no guarantee that this money will ever get down to the producers. We should learn from experience where that did not work in the last term around BSE.
André, I understand and appreciate very much your integrity in wanting to move ahead and do for the beef producers what all of us want to do. I just can't support the approach of getting one figure out to them--$31.70--without having a complex issue dealt with, just having a one-figure cost per head, which will put us in a countervail.
In fairness to all the producers that we would actually--