Evidence of meeting #139 for Agriculture and Agri-Food in the 42nd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was know.

A video is available from Parliament.

On the agenda

MPs speaking

Also speaking

France Pégeot  Executive Vice-President, Canadian Food Inspection Agency
Annette Gibbons  Associate Deputy Minister, Department of Agriculture and Agri-Food

12:20 p.m.

Liberal

Marie-Claude Bibeau Liberal Compton—Stanstead, QC

Okay. I wish I could answer more clearly, but....

12:20 p.m.

NDP

Alistair MacGregor NDP Cowichan—Malahat—Langford, BC

On behalf of all farmers, I just hope the Government of Canada's paying attention to the things they do.

The next issue I want to talk about is tariff rate quotas. It's safe to say that our supply-managed sectors have not been feeling a lot of love lately with the undermining of our import controls and the loss of market share. However, when I speak with our processors, specifically with relation—

12:25 p.m.

Liberal

Marie-Claude Bibeau Liberal Compton—Stanstead, QC

May I ask for a clarification?

12:25 p.m.

NDP

Alistair MacGregor NDP Cowichan—Malahat—Langford, BC

Its our tariff rate quotas.

12:25 p.m.

Liberal

Marie-Claude Bibeau Liberal Compton—Stanstead, QC

Yes, I'm always listening to the floor, but are you talking about supply management like eggs and poultry?

12:25 p.m.

NDP

Alistair MacGregor NDP Cowichan—Malahat—Langford, BC

I'm talking about supply management initially, but I'm going on to what our processors are concerned about.

12:25 p.m.

Liberal

Marie-Claude Bibeau Liberal Compton—Stanstead, QC

Okay.

12:25 p.m.

NDP

Alistair MacGregor NDP Cowichan—Malahat—Langford, BC

With our tariff rate quotas, you're allowing, with the European Union, 55% to go to retailers and only 45% to dairy processors. Our dairy processors have good-paying jobs in rural communities, like yours, across Canada. I just want to know why you are not allocating more tariff rate quotas to our processors. Why are you giving it to retailers, who have other secure sources of income, when our processors are able to understand the market, understand what types of cheeses are in demand and understand how we can import those in a controlled way that will not put our domestic industries at risk?

Can you give this committee an assurance that you will give our domestic processors more of a share of the pie of our tariff rate quotas?

12:25 p.m.

Liberal

Marie-Claude Bibeau Liberal Compton—Stanstead, QC

As you know, really it's Minister Carr who is in charge of that. What I know—

12:25 p.m.

NDP

Alistair MacGregor NDP Cowichan—Malahat—Langford, BC

But you do sit around the table with him and this is also under your file.

12:25 p.m.

Liberal

Marie-Claude Bibeau Liberal Compton—Stanstead, QC

Yes. What I know, and I'll start with the partnership agreement—

12:25 p.m.

NDP

Alistair MacGregor NDP Cowichan—Malahat—Langford, BC

Yes, I know that's 80:20, but I'm talking about the European one, in which you're giving retailers more than our processors are getting.

12:25 p.m.

Liberal

Marie-Claude Bibeau Liberal Compton—Stanstead, QC

I know about it, but I can't give you an answer on whether we are going to change the TRQs.

12:25 p.m.

NDP

Alistair MacGregor NDP Cowichan—Malahat—Langford, BC

If our retailers are importing cheeses that are already readily available in Canada, then you're going to be importing hard cheeses that are putting our domestic industries at risk. Does it not make sense to give more of an allocation to our domestic processors, who have an intimate understanding of the local market? I just want some assurance that you're aware of this problem and you're going to deal with it.

Our domestic suppliers, our processors, they have already suffered enough under these trade deals. Surely you can throw them a bit of a bone with this particular part, with the tariff rate quotas.

12:25 p.m.

Liberal

Marie-Claude Bibeau Liberal Compton—Stanstead, QC

I can assure you that I am aware, I understand, and that my priority with our supply-managed industries right now is to roll out what we have promised in the budget.

12:25 p.m.

NDP

Alistair MacGregor NDP Cowichan—Malahat—Langford, BC

Thank you.

Quickly, I have a final question with regard to the animal transport regulations. Our shippers have indicated they have quite a concern with the new regulations that have come into effect. They've told us that they have a 99.6% safe transportation rate. What kind of science did your department use as a reference for putting the new regulations in place?

Our transporters are concerned these will actually lead to decreased animal safety by unloading them more often.

12:25 p.m.

Liberal

Marie-Claude Bibeau Liberal Compton—Stanstead, QC

I have heard that, but I'll let my colleague from the CFIA answer since you're asking for evidence.

12:25 p.m.

Liberal

The Chair Liberal Pat Finnigan

Give a short answer, please.

12:25 p.m.

France Pégeot Executive Vice-President, Canadian Food Inspection Agency

Thank you very much.

Essentially, we have had a lot of consultations with various industry members. We have looked at all the science available in that area. We have looked at international standards and the regulations that we have put out are actually the best options possible in light of all the evidence that was in front of us.

12:25 p.m.

NDP

Alistair MacGregor NDP Cowichan—Malahat—Langford, BC

Can you supply that to the committee, the reasoning behind the regulations?

12:25 p.m.

Executive Vice-President, Canadian Food Inspection Agency

12:25 p.m.

NDP

Alistair MacGregor NDP Cowichan—Malahat—Langford, BC

Thank you.

12:25 p.m.

Liberal

The Chair Liberal Pat Finnigan

We'll now go to Mrs. Nassif for six minutes.

12:25 p.m.

Liberal

Eva Nassif Liberal Vimy, QC

Thank you, Mr. Chair.

Welcome, Minister. Thank you for joining us.

You have recently announced compensation for our supply-managed farmers. Can you elaborate on those announcements and investments intended to help our farmers?

12:25 p.m.

Liberal

Marie-Claude Bibeau Liberal Compton—Stanstead, QC

Absolutely.

As you know, I was following this issue closely with the Parliamentary Secretary before I took office.

The $3.9 billion announced in the budget includes $1.5 million for an insurance program should the value of quotas go down. In addition, there is $2.4 billion in compensation for supply-managed producers, dairy farmers, but also poultry and egg producers. Of that amount, $250 million has already gone to support investment projects for dairy farmers. Now I really need to analyze and move ahead with the allocation of the remaining $2.15 billion in compensation to all dairy, poultry and egg producers. If all goes well, that should be done within the next two months; that's truly my goal.

Our commitment to processors remains strong, but we were not in a position to include an amount in the budget when it was announced because discussions still needed to be held with processors.

I heard the message of dairy farmers loud and clear: they are asking for direct and fair compensation, meaning in proportion to their quotas. Their message is really crystal clear to me.

Since then, I have had some discussions with Pierre Lampron, the president of the Dairy Farmers of Canada, and also with Mathieu Frigon, the president of the Dairy Processors Association of Canada. It is important for me to really understand the advantages and disadvantages of the various options available.

The next steps will be to meet with cabinet to agree on the best option and then appear before the Treasury Board to implement the financial mechanisms that will enable me to distribute the compensation.