Agriculture Committee on Nov. 30th, 2017

[Ziad Aboultaif, Conservative, Edmonton Manning, AB]

Thank you very much.

Thanks, Mr. Forbes and Mr. Corriveau.

I'm on the international development side of the world. I have a quick question. The estimates show a transfer of $255,021 from the Department of Foreign Affairs to the Department of Agriculture and Agri-Food for staff located abroad. At the same time, I've noticed that the international development funding for agriculture was $345 million last year, while in the previous government under the Conservatives it was about $645 million. My question is, has the number of the agriculture department's employees abroad decreased to match the decrease in the total budget or not?

[Pierre Corriveau]

Maybe I can explain the estimates.

[Ziad Aboultaif, Conservative, Edmonton Manning, AB]

Yes, please.

[Pierre Corriveau]

The $250,000 that's coming back from Global Affairs Canada is an adjustment. At the beginning of the year, we sent about $4.9 million to Global Affairs Canada for staff located at missions abroad. We currently have about 35 employees at 20 different embassies or consulates around the world who support the Canadian market. I wouldn't be able to go back to previous years, but I think this is a growing era. We've been adding people.

In reference to the transfer back from Global Affairs, we had some delays in staffing two positions in Europe. When funds are unused, they are returned to the department.

[Ziad Aboultaif, Conservative, Edmonton Manning, AB]

Could we receive something in writing on that just to make sure we keep the records straight?

[Chris Forbes]

Absolutely.

[Ziad Aboultaif, Conservative, Edmonton Manning, AB]

I have another question. There is a disturbing report from the Auditor General. I want to make sure you are aware of it. Then you can confirm it. This spring, an estimated $168 million in duties were not collected on $131-million worth of chicken, turkey, beef, eggs, and dairy products imported into Canada. This number is very significant. Can you confirm this information? Are you aware of this report and what the ministry is planning to do in order to bring those monies back to our department in terms of justice?

[Chris Forbes]

Yes, we are definitely aware of the report. It's probably worth pointing out that border management is not our department; it's CBSA that's at the border. As the minister laid out, CBSA has taken a number of actions at the border—such as increased verification—that have resulted in a big drop-off. The minister referred specifically to spent fowl imports, and this was one of the issues that was raised by the sector. It was one of the largest issues raised. So far this year, we've seen a significant reduction in items coming in that are claiming to be spent fowl, which would suggest that the extra activities at the border are working.

We are looking—and I think Ms. Brosseauraised this—in terms of other suggestions that have been put forward by the industry, be it DNA testing or working with the Americans on a joint confirmation of the nature of the product. These are issues that we look at on an ongoing basis to see if they are feasible to implement.

[Ziad Aboultaif, Conservative, Edmonton Manning, AB]

Help me a little bit on this. We have people bringing a product here and cheating to avoid paying the duties they are supposed to pay. In one sense, we are losing money, and second, we are putting our industry at a disadvantage with products coming from overseas. Do you think there are flaws in the process? Is there a loophole these people were able to use to make this happen? What extra measures is the ministry planning to take in order to avoid that in the future?

[Chris Forbes]

Again, my department is not in charge of that, and it's hard for me to comment on what someone else will do, per se. I will say, however, that there have been extra activities from the CBSA. It's not my area of expertise or my department, but for people who are caught breaking the rules, whether it's an importing violation or a speeding ticket, there are fines and penalties and sanctions. This is not my area of expertise, but I would just say that when you're caught with a fraudulent description of an import, there are costs and ramifications for you.

[The Chair, Liberal, Pat Finnigan]

Thank you, Mr. Forbes and Mr. Aboultaif.

Mrs. Nassif, you have five minutes.

[Eva Nassif, Liberal, Vimy, QC]

Thank you, Mr. Chair.

The minister just told us that some projects in the agriculture sector receive funding or grants from Innovation, Science and Economic Development Canada.

Could you give us some examples? What kinds of agricultural projects receive this type of funding?

[Chris Forbes]

I apologize. I will speak English because I know the program names better in English.

In the last budget, the Minister of Innovation, Science and Economic Development, under the inclusive innovation agenda, announced a program called the “strategic innovation fund”, which provides support for investments in business, largely in the manufacturing sector. This combined a number of programs that were not available to the agriculture or the agrifood sector previously. The agrifood sector is now eligible under this new program, so that will provide support, as the minister said, subject to applications being assessed, obviously, but the expectation is that there will be some food processors who would be eligible.

The superclusters program, as part of the innovation agenda, is also of interest to the sector, of course. This is a program that will provide support to large clusters of combined proponents looking at building a value chain around innovation in a subsector. In this case, I think a number of proposals are being considered. They're in the agriculture and food sector. These are a couple of examples of other programs that are supportive of this sector.

[Eva Nassif, Liberal, Vimy, QC]

I was wondering if we could better develop this kind of project.

Could you tell us more about it?

[Chris Forbes]

Can we better develop this type of program?

[Eva Nassif, Liberal, Vimy, QC]

Yes.

[Chris Forbes]

There are opportunities to look at our programs to see if the way we look at proposed projects could be compatible with Innovation, Science and Economic Development Canada programs. I think the industry sees an interest in it.

As I said, fixed amounts are allocated to our programs, but there is always a way to be more effective and more in tune with programs in other departments or the provinces to ensure that our programs are compatible and can work together in the most efficient way possible for the sector.

[Eva Nassif, Liberal, Vimy, QC]

How much time do I have left?

[The Chair, Liberal, Pat Finnigan]

You still have about two minutes.

[Eva Nassif, Liberal, Vimy, QC]

Okay.

Most of the money requested in the supplementary estimates (B) is intended to fund cost-shared programs under Growing Forward 2, in the area of innovation and development competitiveness of markets. A request has been made for $18.87 million for this program.

Could you give us the list of programs that will be funded?

[Pierre Corriveau]

These are cost-shared programs.

Most of these programs are delivered by the provinces. The responsibility is in addition to the amount you voted in the main estimates, which was $225 million at the beginning of the year. Each province establishes program flexibility itself.

Having said that, I can give you a few examples in general, but that can vary from one province to another. On the innovation side, it can be technology transfer, demonstration, marketing or the development of new agri-food products. On the market development side, this could include making it easier to differentiate Canadian products, providing producers access to local markets, or providing market information and development capabilities.

It varies a lot from one province to another, and that's the benefit of Growing Forward 2. Each of the provinces can develop the programs that correspond to these generic themes.

[Eva Nassif, Liberal, Vimy, QC]

Which provinces receive this $18.87 million? All of them?

[Pierre Corriveau]

Yes, it's transferred to all the provinces. This amount must be added—

[Eva Nassif, Liberal, Vimy, QC]

Is it shared equitably?

[Pierre Corriveau]

There's a formula known as the Quebec formula. It was established several years ago, and it distributes the funding for these various programs among all the provinces. The same formula is used for the Canadian partnership program.