Agriculture Committee on June 6th, 2019

[Marie-Claude Bibeau, Liberal, Compton—Stanstead, QC]

In the budget, we announced a total of $3.9 billion in funding, with $2.4 billion in compensation for farmers in a number of supply-managed sectors. Support in the amount of $250 million had already been provided through investment programs. I became minister three months ago, just a few days before the budget was announced. As you are aware, I was already very familiar with the issues affecting supply-managed sectors, particularly the dairy industry, since my riding is home to many dairy farmers. I was therefore able to take over the file fairly quickly.

As for the approach, it comes down to examining what the working groups have come up with. In the reports they submitted to us, they measured the impact of the various trade agreements and specified which funding mechanisms they think would work best, as well as how long the mechanisms or compensation should be in place. It depends on the sector. The needs of the dairy sector aren't the same as those of the poultry or egg sector, for example. We've taken the time to thoroughly examine the work that's been done and the report findings.

On my end, I wanted to speak directly with industry representatives, so I organized a number of round tables and visited a number of farms. I needed to gauge the situation so I could make the best possible recommendations to cabinet and the Minister of Finance. Billions of dollars are being allocated, so it goes without saying that Treasury Board has a pivotal role to play. A well-designed and robust review mechanism is essential to make sure everything is done properly.

[Francis Drouin, Liberal, Glengarry—Prescott—Russell, ON]

Thank you very much.

Mr. Chair, how much time do I have left?

[The Chair, Liberal, Pat Finnigan]

You have 35 seconds left.

[Francis Drouin, Liberal, Glengarry—Prescott—Russell, ON]

I met with some canola farmers a few months back, and the advance payments program was one of the things they were asking about.

Could you give the committee an update on that?

[Marie-Claude Bibeau, Liberal, Compton—Stanstead, QC]

We increased the loan limit from $400,000 to $1 million for all producers on a permanent basis. The first $100,000 remains interest-free for all producers. For canola farmers, specifically, the interest-free portion has gone from $100,000 to $500,000.

[Francis Drouin, Liberal, Glengarry—Prescott—Russell, ON]

Thank you very much.

[The Chair, Liberal, Pat Finnigan]

Thank you, Minister.

Thank you, Mr. Drouin.

I would also like to welcome Ms. Kim Rudd, MP for Northumberland-Scarborough.

[Kim Rudd, Liberal, Northumberland—Peterborough South, ON]

No, it's Northumberland—Peterborough South.

[Kim Rudd, Liberal, Northumberland—Peterborough South, ON]

But there we go, close enough.

[The Chair, Liberal, Pat Finnigan]

It rhymed but it wasn't the same thing. Thank you for being here with us today.

Mr. MacGregor, you have six minutes.

[Alistair MacGregor, NDP, Cowichan—Malahat—Langford, BC]

Thank you very much, Chair.

Minister, welcome back to our committee. It's good to see you here again. I think my line of questioning will be similar to Mr. Drouin's.

Yesterday, during question period, I asked you specifically about the compensation for dairy processors. We know about the $3.9 billion announced in budget 2019 for our supply-managed farmers, but given that we've known what the probable impact of the three trade deals is, or has been, on our sector for quite some time now, I'm a little mystified why you are still taking time to figure out what our processors need to have as compensation. Can you please explain why we don't have a figure yet for our dairy processors?

[Marie-Claude Bibeau, Liberal, Compton—Stanstead, QC]

When the budget was released, the working group had not not yet completed its work. There was a gap or a difference between the understanding of the department and that of the industry, and we really needed to do much more work. I also wanted to understand it better. Since then, for the last three months, we have had the opportunity to deepen our analysis, to share data, and to better understand the situation. I'm confident that I will be able to release the information and the compensation, not only for the producers but also for the processors, by the end of the month.

[Alistair MacGregor, NDP, Cowichan—Malahat—Langford, BC]

That will be by the end of the month?

[Marie-Claude Bibeau, Liberal, Compton—Stanstead, QC]

I hope so, yes. I'm working very hard on it.

[Alistair MacGregor, NDP, Cowichan—Malahat—Langford, BC]

We'll be looking forward to that.

Also related to our processors, you may recall that at your last committee appearance we had an exchange on the tariff-rate quotas for our processors, specifically with regard to the European Union. I was just looking at the transcript of our exchange and you said that you couldn't really give me an answer as to why retailers were getting 55% of the TRQs and our processors, 45%. When I speak with the processors—and I'm sure you have spoken with them as well—it makes sense to me that given that our processors have a very intimate understanding of our local dairy market, whereas retailers are huge, multinational conglomerates.... Why is it that are you not giving them more of the TRQ allocation? Why are they getting only 45%? I think they would really like to know that.

[Marie-Claude Bibeau, Liberal, Compton—Stanstead, QC]

You know there is a difference in the share of the TRQs for CETA and the trans-Pacific agreement. It's under the responsibility of Minister Carr, the Minister of International Trade Diversification. He is going through a review. I can tell you that we have had quite a few conversations on the subject. I can assure you that he understands the issue and the requests and the expectations.

[Alistair MacGregor, NDP, Cowichan—Malahat—Langford, BC]

This must matter to you, not only as a minister but also as a member of Parliament.

[Marie-Claude Bibeau, Liberal, Compton—Stanstead, QC]

Of course, absolutely, you are right, but I also have to respect the responsibilities of my colleagues. I can tell you that we talk about it on a regular basis. Right now he is going through a full review of the TRQs for all the agreements we have, including CETA, the trans-Pacific agreement, even the WTO agreements, and he is obviously looking at the new NAFTA as well.

[Alistair MacGregor, NDP, Cowichan—Malahat—Langford, BC]

What is the reason for the inertia? Are you feeling pressure from the retailers not to change the current structure? Is that what's going on? Why is there a delay and how much time will it perhaps take for our processors to get an answer on this question?

[Marie-Claude Bibeau, Liberal, Compton—Stanstead, QC]

There was some agreement on the share to start with when the first two agreements were signed.

It's not such a delay. We had to see how it would be rolled out; what the impacts would be; and how the small, medium and large ones would benefit from that. This is why we have to go through this review—and we're talking about months, not years. We really want to hear from the processors and to understand their reality. I do it. Minister Carr does it as well. We want to find the best solution for the longer term. Now I would say that we are in the transition period and we want to do the best for our industry.

[Alistair MacGregor, NDP, Cowichan—Malahat—Langford, BC]

Okay, thank you for that. I think in my remaining time I also want to revisit the issue of China and our canola. I was at the international trade committee in April when you appeared. I was here on May 2 when you were before our committee, and here you are back on June 6. Have we had any movement on a high-level delegation getting access to China?

[Marie-Claude Bibeau, Liberal, Compton—Stanstead, QC]

The latest movement we had was last night. We had a new conversation between scientists and specialists from the CFIA, the Canadian Food Inspection Agency, and Customs China.

[Alistair MacGregor, NDP, Cowichan—Malahat—Langford, BC]

I recall your saying that the president of the CFIA wanted to go.

The crux of my question is, at what point are we going to regard this as an insult? What other measures are we going to start employing to get some movement on this issue? It just seems to be stuck really quite badly.

[Marie-Claude Bibeau, Liberal, Compton—Stanstead, QC]

On the discussions, there was a little time between the last discussion and this one. Yesterday, last night, we agreed and they agreed to have more sustained discussions, a telephone conference on the subject. They did not close the door to the delegation, because we asked for it again, as I did when I met with Minister Han in Japan.

We are still asking for that, but the conversation has been reactivated, and yesterday we could feel that we were at a different level of getting into what we want to talk about—the evidence and everything. This is encouraging. I will go back to Minister Han and ask again for this delegation. We still believe that it would be easier for our scientists to have a face-to-face discussion to understand the issues on both sides and to find a lasting solution.

[The Chair, Liberal, Pat Finnigan]

Thank you, Minister.

Thank you, Mr. MacGregor.

Mr. Longfield.