Agriculture Committee on May 16th, 2017

[Paul Mayers, Vice-President, Policy and Programs Branch, Canadian Food Inspection Agency]

The decline that you see with respect to the agency relates to time-limited funding. There are two particular areas in terms of time-limited funding. There is the time-limited sunsetting program funding. As the committee will be aware, budget 2017 made significant investment in the Canadian Food Inspection Agency. As well, there is a decline in relation to the conclusion of federal infrastructure initiative funding, two-year funding that the agency had received. The decline that you see was intentional, as it related to time-limited initiatives.

Budget 2017 made a further investment in the agency, which in essence allows us to continue programming, of $149.3 million over five years.

[Lloyd Longfield, Liberal, Guelph, ON]

That's great. Thank you.

We have a wonderful target of growing export growth, and we can't do that without the support of CFIA.

Going through the estimates, I also noticed there's a lot of funding in other departments that really applies to agriculture, in terms of strategic investment funding, and, as you've mentioned already, transportation, green infrastructure funding.

Is there any way of coalescing the ag funding research that is in other departments, or is that something we just know is there?

[Lawrence MacAulay, Liberal, Cardigan, PE]

If you're speaking about the budget and the dollars that were allotted, like the superclusters, the $200 million to support clean technology, and $1.26 billion, these dollars are available to agriculture and other sectors. It's a combined.... You apply for these dollars, and the criteria will be announced by Navdeep Bains and others responsible for these funds. However, it's so important that agriculture realizes that they are targeted by the government as being the economic growth in this country.

You talk about opportunities. When you go to the Asian community, that's where you see opportunities. We can produce these products, but we have to make these investments. Also, farmers and groups have to apply for these dollars to make sure that we have the technology. Basically, we have to produce more on the same amount of land. That's what we want to do, and have been doing over the years, and want to continue to do.

[The Chair, Liberal, Pat Finnigan]

Thank you, Mr. Minister.

Thank you, Mr. Longfield.

Ms. Brosseau, you have six minutes.

[Ruth Ellen Brosseau, NDP, Berthier—Maskinongé, QC]

Thank you, Minister, for being before the committee.

We talked about the Perishable Agricultural Commodities Act, PACA, in the last Parliament, and last year we did a study for a few days here at the agriculture committee. We wrote to you on June 9 asking you to act on PACA. Where are we at on PACA?

[Lawrence MacAulay, Liberal, Cardigan, PE]

Ms. Brosseau, thank you very much. We have talked about this before, and as I have said before, our government is fully committed to the financial success of Canada's fruit and vegetable industry. We're looking to make sure that we continue the benefits that support the industry. Discussions are continuing.

[Ruth Ellen Brosseau, NDP, Berthier—Maskinongé, QC]

So it's ongoing.

[Lawrence MacAulay, Liberal, Cardigan, PE]

It's ongoing. Absolutely.

[Ruth Ellen Brosseau, NDP, Berthier—Maskinongé, QC]

Okay. Perfect.

In your presentation you talked about supply management. I represent a riding in Quebec that has hundreds of dairy farms and chicken farms. The Liberal government, your government, announced compensation, with an aid package for the industry of $250 million to update technology and equipment and $100 million for dairy processors.

As you know, Minister, the Dairy Farmers of Canada have projected losses of $116 million in perpetual lost revenue. With regard to CETA, the Dairy Processors Association predicts the annual loss to be $230 million for cheese processors, contributing to $719 million in losses for the overall economy, with potentially almost 3,000 in job losses.

In your presentation you said that the “first portion” of this funding is reflected in the supplementary estimates (A), which were tabled last week. How much of the funding is that?

[Lawrence MacAulay, Liberal, Cardigan, PE]

Thank you very much. Of the $350 million that will be spent, $250 million is for the farmers and $100 million for innovation in the processing sector. When it's announced, there will be a portion of the year left, but $44.2 million is what the funding will be. For the dairy farmers it's $250 million that will be allocated over four years, and with the processors it's $100 million over four years. It will be allocated appropriately, but the dollars will be spent. It's a great announcement.

It's very important to know that this is only a portion of the dollars that are available to the dairy industry and the agricultural sector.

[Ruth Ellen Brosseau, NDP, Berthier—Maskinongé, QC]

But you realize—

[Lawrence MacAulay, Liberal, Cardigan, PE]

It's important that we all work together to make sure that the farmers in every riding understand that there are dollars for innovation, green technology, clean technology—all of this stuff. I think we can all work together on that. I'm sure you will, because I understand that you're very committed to dairy farmers.

[Ruth Ellen Brosseau, NDP, Berthier—Maskinongé, QC]

I understand, Minister—

[Lawrence MacAulay, Liberal, Cardigan, PE]

So am I. I happen to be one.

[Ruth Ellen Brosseau, NDP, Berthier—Maskinongé, QC]

—but the projected losses are far greater than the compensation, the aid package, that you've put forward. It's just not up to the mark in terms of what farmers expect for the protection of supply management.

I will switch to French for my questions.

This morning, the Auditor General made public a report on customs duties. In it, he concludes that the Canada Border Services Agency failed to collect $168 million in customs duties on quota-controlled agricultural products. You surely have a role to play in that, because it affects producers all over Canada.

Here is a passage from the Auditor General's report:

This finding matters because the integrity of the tariff rate quota system depends on the government's ability to ensure that all importers follow all applicable rules and regulations.

If the imports represent unfair competition for our producers, there will perhaps be losses for the agricultural industry.

What are you going to do to resolve this situation, which is extremely problematic for our agricultural producers?

[Lawrence MacAulay, Liberal, Cardigan, PE]

First of all, I appreciate the first part of your question. This is without a doubt a major investment that we made for the dairy farmers and the processing sector—after consultation, after talking to the processors and the farmers.

What you're talking about in the second part of your question is a very important question. It's something that has evolved over the years. It's something that I became aware of when I was appointed Minister of Agriculture and Agri-Food. It's a major problem. There are supply-managed products coming into the country—

[Ruth Ellen Brosseau, NDP, Berthier—Maskinongé, QC]

Big losses.

[Lawrence MacAulay, Liberal, Cardigan, PE]

—that are not stopped. There is spent fowl. There is also....

What's the word I'm looking for? It's when they take the product in and process it.

[A voice]

The MPCs.

[Ruth Ellen Brosseau, NDP, Berthier—Maskinongé, QC]

But it's perishable agriculture.

[Lawrence MacAulay, Liberal, Cardigan, PE]

I announced consultations on January 6, 2016. There have been a number of consultations.

[Ruth Ellen Brosseau, NDP, Berthier—Maskinongé, QC]

So you're going to make this a priority.

[Lawrence MacAulay, Liberal, Cardigan, PE]

I'm trying to tell you.

[Ruth Ellen Brosseau, NDP, Berthier—Maskinongé, QC]

I want to make sure.

I have one more question I want to ask.

[Lawrence MacAulay, Liberal, Cardigan, PE]

No, but six people lost their import privileges because they imported supply-managed products and did not export it in the 90 days. That's a start.

Have we solved all the problems? No, we haven't, but we're certainly working on them to make sure the supply-managed sector is treated fairly, and what you're stating is right and not fair.