Thank you very much, Mr. Chair.
I was at the end of my introduction.
As I was saying, the federal government must act right away. We cannot wait one or two weeks. The Liberal government must take immediate action. It has the means and the capacity to take action to ensure that this is working.
As I was saying, one of the two railway companies in question, CN, fired its president and chief executive officer owing to his inaction and the lack of services, according to the CN press release. There is a true crisis happening. People from the offices of the Minister of Agriculture and Agri-Food and the Minister of Transport should take note of what just happened at CN and understand the seriousness of the crisis and the urgent need for action.
I have also taken note of the apologies issued this morning by CN. That is an action I want to commend. CN recognized that it had failed to fulfill its duties in the case. Allow me to quote a few excerpts from the CN press release:
“We apologize for not meeting the expectations of our grain customers, nor our own high standards,” [Interim President and Chief Executive Officer] Mr. Ruest said. “The entire CN team has a sense of urgency and is fully focused on getting it right for farmers and our grain customers, regaining the confidence of Canadians businesses, and protecting Canada's reputation as a stable trade partner in world markets.”
CN decided to take action. All this is probably a consequence of the Canadian Federation of Agriculture's arrival in Ottawa last week, of the press conference held by western grain farmers and of the convening, thanks to our initiative, of this emergency committee meeting. When we invest all our energy in something and work together, we can achieve results. However, the committee has few means at its disposal. It has to rely on the decision of the government and the cabinet to expedite the process. That is what we want.
Time is of the essence; we called for this emergency meeting to recognize and resolve the worst backlog in a number of years in grain shipping.
Everyone here is aware that this is happening at a time when an ambitious export objective has been set—$75 billion by 2025. That figure comes from the Barton report. A study has even been undertaken to figure out how technological innovation can be used to achieve that export objective. Logically speaking, without an adequate transportation infrastructure and with companies being unable to send Canadian grain to markets, we will never reach that ambitious objective.
That is why it is important for us to talk about it. The committee should take note of this and hear what producers and railway companies have to say about the current situation in order to find a medium and long-term solution.
I repeat that, in the short term, the solution is in the hands of the Minister of Agriculture and Agri-Food.
The crop yield was very good this year. Farmers should not be punished for successfully increasing their production. However, they are literally paying the price of increased productivity because they cannot ship their product.
Right now, when we are trying to increase our access to markets, not being able to perform on contracts in a reliable and timely manner goes in the opposite direction of the one we want to take. There is a lot of volatility around access to markets, specifically given the renegotiation of NAFTA, but also the unexpected tariff increase on Canadian products in markets where Canada would like to expand, especially India.
Those situations are beyond our control; we cannot do anything about them. We have no decision-making power in what is happening abroad. However, we have a way to do something about our grain transportation system, as we are the ones who control it. We do not depend on other countries for that. It is up to us to implement appropriate measures to ensure that our grain is shipped to foreign markets. We have to implement everything to ensure that Canadian farmers have access to a logistical system that delivers their products to markets in a predictable and timely manner.
Todd Lewis, President of the Agricultural Producers Association of Saskatchewan, said that his year's shipments are disastrous and that we cannot allow ourselves another similar year.
Daryl Fransoo, Director of the Western Canadian Wheat Growers Association, said that a crisis is happening right now. The levels are astronomically bad. Farmers are getting together and trying to do something.
Wade Sobkowich, Executive Director of the Western Grain Elevator Association, said that the situation was not improving, but rather getting worse.
Art Enns, Vice-President of Grain Growers of Canada said that this situation is unacceptable and must change.
Finally, the Premier of Saskatchewan, Scott Moe, said the following:
“We need the grain moving.”
I quote: “We need it moving sooner rather than later,” Moe said, warning there “is a cash crunch that is coming.”
We will certainly have the opportunity to talk about that. Transportation and shipments are being discussed a lot, but let's not forget the producers who cannot be paid because they cannot ship their grain to market. This is a disaster for many farmers in the west.
The grain crisis of 2013-14 cost the Canadian economy $8 billion. This loss affects not only the farmers, although they do bear the brunt. It is also a direct loss to our economy.
There are reports indicating that losses will be higher this year. This is unacceptable. We cannot constantly undermine our own growth. As everyone knows, people want more Canadian products because they are the best in the world. Technology is being considered as a way to meet export targets, but what good does it do if the higher yields of perishable crops are lost?
We have to find a long-term solution. The solution must not only provide quick relief, although we do want an immediate solution. The committee must definitely hear the solutions that grain producers have to suggest and recommend. We must hear what explanation CN and CP have for the disaster this year, what they have done, what they will do to remedy it, and what they will do to help. We must also ask the government what it is going to do for grain producers in the west, who will unfortunately suffer major economic losses if nothing is done to help them.
We can't keep talking about these problems year after year. We need a viable solution specifically for Canada in order to resolve the systemic issues in grain shipment.
Clearly, we will always be at the mercy of the weather. We live in Canada and have winter every year. Unfortunately for those who do not like winter, it is part of life in Canada. Why? Because we are in Canada. It is unacceptable for the rail companies to use this as an excuse.
In conclusion, this study is intended to identify the systemic problems. We want to hear from stakeholders who want a plan and action immediately, but who also want us to find a way to prevent this crisis from happening year after year. We want to make specific recommendations to the government to find solutions to the grain shipment crisis in Canada. We are asking for the support of all MPs around the table, that is, of all members of the committee. We cannot say it is not our problem, because it is Canada's problem. When Canada is unable to export its grain or sell its products abroad, it is our responsibility to address the problem. It is a problem for agriculture, because we are talking about agricultural products.
There is more for us to do than consider Bill C-49. We must also do an exhaustive review of the problems that undermine grain shipment and provide viable and feasible solutions immediately.