Agriculture Committee on Nov. 18th, 2010

[The Chair, Conservative, Larry Miller]

I call the meeting to order.

We have a great crowd here today; you'd think the minister was here or something....

Welcome, Mr. Minister. Before we get into it, we'll allow you to take the time you wish for opening remarks. We thank you and all your staff for being here today.

Without further ado, we'll turn it over to you.

[Gerry Ritz, Conservative, Minister of Agriculture and Agri-Food]

Thank you, Larry, Mr. Chairman. It's a pleasure to be here. I'm told you're going to keep your eye on the proceedings today.

I'll tell you, I really feel comfortable in this group when I look around and see all these cookie dusters that everybody's sporting.

[Voices]

Oh, oh!

[Gerry Ritz, Conservative, Battlefords—Lloydminster, SK]

It's great to be back. I'm here today with a lot of agricultural staff from CFIA and from the agricultural department as well, as you well know. Not unknown to you are John Knubley, deputy minister, and Rita Moritz, program director. From CFIA we have the president, Carole Swan, and Paul Mayers, from the programming side.

Paul just got back in from Belgium late last night, so if he nods off, don't hold it against him.

I have a few opening remarks that I'd be happy to share with you.

We know that agriculture is the backbone of Canada's economy. That's why we put farmers first in all of our policies and programs.

As you know, Mr. Chair, in January of 2006, Canada's farmers gave this government a mandate to give them the tools they need to succeed. Since we've taken office, this government has delivered $12.8 billion to help build a profitable, competitive, innovative, and sustainable agricultural industry.

We continue to strengthen the agricultural industry even further. The estimates you have before you--and I know that's what we'll concentrate on here today--show an additional $290 million, bringing the department's total budget to $3.3 billion. This represents an increase of $696 million, a 27% increase over last year's spending. These new investments deliver on the government's promises to help farmers affected by flooding this year and to support a competitive livestock industry into the future.

Our Growing Forward programs, which are cost-shared and provincially delivered, strengthen food safety, marketing, innovation, environmental services, and farm support. They provide regional flexibility in programming that helps farmers make their money from the marketplace. This allows the consumer, both domestically and internationally, to have access to the top-quality products that our farmers and processors are rightly proud of.

This government is taking concrete steps to open new markets for our exporters, while always protecting our supply-managed sector. Unlike the previous government, this government has focused on actually talking to farmers, finding out what's working and what's not, and making the adjustments.

We've teamed up with Canadian industry associations to make sure we're all rowing in the same direction, hitting the right targets, and fixing what farmers want fixed. Industry and I have hit the road and knocked down doors in more than 20 different markets, some more than once. We're reopening markets, some that have been closed to Canadian producers for almost a decade, and creating new market opportunities that will help farmers boost their bottom line. We've been to India and Turkey to secure our pulse exports and to Colombia to get our beef into South America.

Asia has been a real focus, and in particular, China, Japan, and Hong Kong. Almost a year ago, the Prime Minister announced full pork access for China and full access to Hong Kong for our great Canadian beef. In June, China also agreed to a staged approach for beef access. We will begin those commercial shipments shortly.

Despite continued restrictions from China for canola seed, we were able to negotiate transitional measures for the current crop year, a market that is still worth in excess of $1 billion. Of course challenges still remain, but we won't rest until we have unfettered access, based on sound science, in all these markets.

I'm proud to report that Canada's agricultural exports have risen by 8% in this year alone. This is tremendous news for our front-line farmers. Once consumers around the world taste our high-quality Canadian products, I know they'll continue to choose Canadian when they go to their grocery stores.

We're also working bilaterally through free trade agreements. Step by step, market by market, this government is opening up new markets for our farmers and exporters. We've received a lot of support from the industry for our work on trade; this not only strengthens our efforts, but also proves to me that we're on the right track. I also appreciate that this committee was very supportive of the market access secretariat in the report you did on competitiveness.

Farmers can only benefit from new sales on the world stage if their business is solid here at home. Since we took office, $7.5 billion has been directly invested to farmers through the business risk management programming. Most recently, when prairie farmers were hit with severe flooding, four governments came together and responded with an unprecedented relief package of $450 million that was made available to hard-hit farmers. This was the fastest and largest assistance package in history. The industry, including the Canadian Federation of Agriculture, the Saskatchewan Canola Growers Association, and the Keystone Agricultural Producers, was very appreciative of the speed with which these dollars got to the farm gate.

We also gave our hog, cattle, and durum producers more breathing room on their advance payment loans. This was also very much appreciated. Ron Bonnett, the president of the Canadian Federation of Agriculture, said, “This Stay of Default provides the critical extra time necessary for many producers to get products to market before having to make their APP repayments”.

These programs have been there when times are tough for Canadian farmers while our economic action plan is helping to build a vibrant farm gate. Through that plan, we are investing in long overdue upgrades to our laboratories and slaughter facilities so our farmers can have the tools and products they need to continue to succeed.

This government also knows that innovation is a key to competitiveness. Innovation allows our farmers to tap new value-added markets, ensuring they remain prosperous while also backstopping our environment.

Our new science and innovation programming under Growing Forward puts a strong emphasis on industry leadership and investment as the way to build a more innovative and competitive agricultural sector. Our investment of $115 million in research clusters and industry-led projects has leveraged an additional $42 million from our industry partners. That's also why we oppose Bill C-474, which would stifle that innovation. As I said, innovation drives prosperity. It's critical that trade remain firmly based on sound scientific principles.

Safe food is also the foundation for growing market access and overall economic success. Of course, we are fully committed to ensuring that Canada's food safety system remains one of the best in the world. We've delivered the resources needed for the Canadian Food Inspection Agency to improve food safety and protect the health of Canadians.

Our ongoing actions to improve food safety will ensure that consumers at home and around the world can continue to have confidence in Canadian foodstuffs. We've increased CFIA's inspection staff by 538, or 13%, since March 2006. Furthermore, we've increased the agency's budget by 13% this past year alone.

Mr. Chairman, these investments, regulatory changes, and program improvements have paid dividends already. Among the 17 OECD countries, Canada is ranked number one for its superior recall regulations. Recent public opinion research shows that Canadians trust Canadian-produced food. In fact, more than a third of consumers are more confident in food safety now than they were five years ago. That is a trust we are committed to maintaining by making sure that Canada continues to have a robust food safety system.

We renewed this commitment again last September when our government announced that we would act on all 57 recommendations made by the Weatherill report. We delivered on that promise with an investment of $75 million to backstop Canada's food safety system. This investment is improving CFIA's ability to prevent, detect, and respond to food-borne illness outbreaks.

On the inspection side, CFIA has worked with independent experts to assess the compliance verification system, which is proving to be a strong and effective inspection tool. Furthermore, the government is providing 24-7 service to provide health risk assessments for food safety investigations. This supports a national initiative to improve collection, reporting, and analysis of a wide range of health information.

We are also informing the public through various means so they can get minute-by-minute updates on any food safety risk. We have a new food safety portal, which is a one-stop shop for excellent food safety information. We're also engaging with Canadians through national public information campaigns, Twitter, and Facebook.

More proof of our actions can be found in the government's recently released food safety progress report. That report clearly shows that this government is making significant progress on all 57 recommendations.

Today I'm pleased to announced that the government has taken yet another step to strengthen Canada's food safety system. Our government has appointed seven highly qualified advisers to the minister's advisory board, which fulfills another recommendation of the Weatherill report.

Today's announcement is just one more way in which we're improving an already world-recognized food safety system. This highly qualified and diverse advisory board builds upon our government's increased investments, hiring of more inspectors, and enhanced listeria testing.

The advisory board includes a diverse group of experts who will deliver advice on food safety and other issues related to the CFIA's mandate. This outstanding group of Canadians will be a vital external source that will advise on how to further strengthen our food safety systems. I look forward to receiving the advice of the board and, together, making Canada's food safety system even better.

In closing, I think everyone around this table shares my optimism about the future of this great sector; otherwise, we wouldn't be here. With innovation, Canadian farmers can look forward to a future with stronger trade partnerships, a more sustainable environment, and more profitable farmers, while making sure that families here and around the world continue to have access to our top-quality foodstuffs. Our government knows that when Canadian farmers succeed, they stimulate the economy, create jobs, and increase prosperity for all Canadians.

Thank you, Mr. Chair.

[The Chair, Conservative, Larry Miller]

Thanks, Mr. Minister.

I should also thank Ms. Moritz, Mr. Knubley, Ms. Swan, and Mr. Mayers for being here.

This is just something that I usually point out when the minister and department staff are here:

The obligation of a witness to answer all questions put by the committee must be balanced against the role that public servants play in providing confidential advice to their Ministers. The role of the public servant has traditionally been viewed in relation to the implementation and administration of government policy, rather than the determination of what that policy should be. Consequently, public servants have been excused from commenting on the policy decisions made by the government.

I'll ask all of you to keep that in mind, and I know you will. We'll go with five-minute rounds.

[Wayne Easter, Liberal, Malpeque, PE]

No, we want seven minutes, Chair.

[The Chair, Conservative, Larry Miller]

Seven? Okay.

I needed unanimous consent and I don't have it.

Mr. Easter.

[Wayne Easter, Liberal, Malpeque, PE]

Just before we start, Mr. Chair, before the clock starts to tick, can you tell us who will be here after the minister's shorter-than-two-hour appearance?

[Pierre Lemieux, Conservative, Glengarry—Prescott—Russell, ON]

Is that a loaded question, Mr. Easter?

[Wayne Easter, Liberal, Malpeque, PE]

No.

[The Chair, Conservative, Larry Miller]

We have Mr. Greg Meredith, assistant deputy minister, strategic policy branch; Ms. Moritz; Mr. Pierre Corriveau, assistant deputy minister, corporate management; Mr. Mayers from CFIA; Mr. Baker--

[Wayne Easter, Liberal, Malpeque, PE]

Will the president of CFIA be here?

[The Chair, Conservative, Larry Miller]

No: Mr. Mayers, Mr. Baker, Mr. Prince, and Ms. Dubuc.

[Wayne Easter, Liberal, Malpeque, PE]

Okay. Because we may have questions that only the president can answer, but in any event, we'll get to that later.

[A voice]

[Inaudible--Editor]

[Wayne Easter, Liberal, Malpeque, PE]

Yes, but I have questions I'd rather ask you, dear Minister.

[Voices]

Oh, oh!

[Wayne Easter, Liberal, Malpeque, PE]

You went through a lot of things on the budget, Minister, but the key is how much of that budget is getting down to primary producers, so I guess I'd start where we left off yesterday in the House, where you and I seemed to be on two completely different wavelengths.

In my discussions with hog and beef producers,in all sincerity, I'm told horror stories. There were three foreclosures in the last two weeks that I had to deal with, all three from Farm Credit. There was another one this week. Basically, I'm hearing stories of despair and loss of hope from beef and hog producers, yet you seem to think that everything is great, and you seem to be backed up in that assessment by organizations.

Minister, here's my question to you: do you really, really believe that there are not any problems out there in the hog and beef sector at the moment?

[Gerry Ritz, Conservative, Battlefords—Lloydminster, SK]

I guess it would depend on your definition of “problem,” Mr. Easter. Of course, there are always situations in certain sectors of this country, it being as diverse and as far-flung as it is, and here are always people who are under duress, whether it's weather related or related to market access. We continue to work on those with the affected region, with the affected province.

You mentioned some foreclosures. As far as I understand, those are still before the Farm Debt Mediation Service. No one is being foreclosed on at this particular juncture.

[Wayne Easter, Liberal, Malpeque, PE]

These actually were through some time ago, so these are different from the ones we talked about previously.

[Gerry Ritz, Conservative, Battlefords—Lloydminster, SK]

Okay.

[Wayne Easter, Liberal, Malpeque, PE]

But the difficulty comes.... You mentioned your August 6 announcement about the stay of default under the emergency advance payment program. The problem with that is that also included in that announcement was a fixed pay schedule and that is impossible for many producers to meet.

Your comment at the time was that when prices improve.... Well, prices haven't improved, and I'll quote a letter that you have on your desk. I don't want to use the person's name; I'll talk to you confidentially on that. But this is her letter to you:

Only two years have past since the government made this generous offer and now the same government is “pulling the plug” by insisting that the APP funds be repaid. The request for repayment is compounded by enforcing rigorous/tight repayment terms. About 80% of hog producers have already gone out of business in P.E.I. in the last couple of years, and only a hand full of farmers benefited from the hog transition program.

She goes on to say, “It is inconceivable how government officials think that producers have come out of this disaster and have the financial means to repay this disaster money today or even over the next 5 years”.

What you're going to do is drive the hog and beef farmers into default, especially those in eastern Canada, if you stick to the repayment terms made in your announcement of August 6. Are you considering any other options?

[Gerry Ritz, Conservative, Battlefords—Lloydminster, SK]

Well, Mr. Easter, as you well know, with government processes nothing can be left open-ended. Treasury Board guidelines, different situations that we all face, will never allow that to happen.

I also have a quote here, from John Jamieson. I'm sure you know John, the executive director of the Prince Edward Island Federation of Agriculture, who said just a couple of days ago about the hog industry on Prince Edward Island that we're still marketing approximately 100,000 animals a year, so our industries are still quite good.

I'm getting mixed signals. John, who is on the ground every day in Prince Edward Island, and you, with your political spin, are in two different situations.

[Wayne Easter, Liberal, Malpeque, PE]

Well, let me, Minister--

[Gerry Ritz, Conservative, Battlefords—Lloydminster, SK]

Having said that, as I said, none of these programs can be open-ended. We must have stipulations and collection situations in the programs as they go out. Certainly, we'll assess at the end of the day exactly what's needed for the sector.