Thank you, Mr. Chair.
Mr. Whyte, first, I would like to make it clear that supply management is not a system of subsidies. The United States subsidizes its dairy producers and Europe does too. Canada does not.
The goal of the system is to help to stabilize prices for producers. That is not the same thing. I am in a good position to know this because the economy of my riding depends on agriculture, mainly dairy production, to the tune of 12%.
I believe that a lot of the myths surrounding supply management can be attributed to commentators who come largely from cities. They do not think about the rural producers who depend on supply management for the survival of their family farms. We are not talking about production levels that are going to cause prices to rise, but levels that are going to even out the supply, making local production more efficient.
I know your position on the matter. You have already made it clear to the committee. Last year, representatives from your group and from the Canadian Association of Agri-Retailers appeared before the Standing Committee on Finance. They wanted to open up the debate on the issue. It is clear, after your campaigns and your involvement last year, that you are not in favour of supply management and, if it were abolished, you would not lift a finger in opposition.
But there is no evidence to suggest that, if supply management were abolished, it would have any impact at all on the price of dairy products. Zero.
We saw what happened in New Zealand after supply management was abolished: the price of milk increased. Notice how most merchants, restaurateurs and people living close to the border systematically refer to American prices. The unsubsidized price of a pound of butter or a litre of milk—a pint, in the United States—is similar to ours. So do not come here and tell me that supply management means that consumers pay way too much. They actually do pay a lot more than in the United States, but that would not be the case if we were able to play with the United States on a level playing field.
If we abolished supply management and allowed many more players to enter the field, it is abundantly clear that the dairy products coming into the country would not automatically be from Europe. And according to the details in the agreement, we might have to deal with unsubsidized products. Clearly, the opening would come from the United States, meaning that the game would no longer be fair, even on our own field.
Could you tell me honestly what you think of supply management? How can we make sure that producers are not harmed, that the system is improved and that, at the end of the day, both producers and their customers come out ahead?