Agriculture Committee on Nov. 26th, 2020

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

Thank you.

Mr. Forbes, you may recall from the first hour in committee that the minister said she might turn it over to you for a few more technical details on PACA. Is there anything you can inform the committee on? I sent a letter to the Deputy Prime Minister, the Honourable Chrystia Freeland, about this issue. Of course, it was a recommendation in a previous Parliament.

In your conversations with other deputy ministers and other departments, is this something the federal government might be working on or interested in? Has there been any analysis to lay the groundwork for a possible decision by the ministers themselves?

[Chris Forbes]

We've discussed this. I've been in the department for the better part of six years and we've been discussing this on and off in that time. There's been a lot of work with the horticulture sector and our partners in what is now Innovation, Science and Economic Development, who are responsible for the Bankruptcy and Insolvency Act.

We've looked at options. We've talked to the sector, I would say, regularly. Thus far—and there's been communication to this effect—I think the government's view has been that the evidence is not there that this is a widespread problem. It's an issue we think can be dealt with under the Safe Food for Canadians Act.

That said, we're certainly constantly and regularly engaged with the sector, and we're always open to discussing solutions to problems in this issue and others if there's further evidence the sector has to bring to bear. We're always open.

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

This may be my final question.

I've had some communication from the Canadian Craft Brewers Association. They're such an important part of many small communities. Many small communities take such pride in the local craft beers that we produce. Of course, they're an important destination for many of our grain producers.

They have reported that because of the COVID-19 pandemic, a lot of the beer that was shipped to restaurants spoiled because restaurants had to close down. They have asked for some relief on the excise tax.

Deputy Minister, I know this is not your department, but can you report on any communication you've received from them and anything your department might be doing in conjunction with Finance Canada?

[The Chair, Liberal, Pat Finnigan]

Unfortunately, Mr. MacGregor, you're past your time. I was hoping you could squeeze it in, but—

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

So be it.

[The Chair, Liberal, Pat Finnigan]

We'll have to move on. Perhaps he'll have a chance to answer.

Mr. Lehoux, you have the floor for five minutes.

[Richard Lehoux, Conservative, Beauce, QC]

Thank you, Mr. Chair.

Good afternoon, Mr. Forbes. Thank you for being with us this afternoon.

I have a question about the Canadian Dairy Commission. Its borrowing limit has been raised from $300 million to $500 million.

If you can't give me an answer today, you can send the information to the committee later on.

How far has that $500 million limit been drawn down? Do you think the new limit will be enough between now and the end of the fiscal year, March 31?

[Chris Forbes]

Mr. Lehoux, the commission hasn't indicated to us whether it anticipates any problems regarding the borrowing limit, but we have granted it. The situation was quite difficult at the time, in the spring and early summer, but the system has stabilized. I'm sure the commission will notify us promptly if a problem arises.

[Richard Lehoux, Conservative, Beauce, QC]

I see. Thank you.

Earlier we discussed the other types of production under supply management, that is to say, the GO-4, as you mentioned. The agreements reached between those producers and the department focus more on investment tax credits. I know no one's sending cheques to producers. Since they address investments, I imagine the Treasury Board and the Department of Finance are concerned. Are those two departments already involved in talks? I imagine they have a role to play when it comes to investment tax credits.

[Chris Forbes]

That depends on the format of program. Is it an investment program designed to share costs with the companies? In that case, the assistance might come from us. If the assistance is in the form of a tax credit, the Department of Finance is responsible.

We have definitely been talking to sectoral stakeholders for several months now about potential programs from which they might benefit.

[Richard Lehoux, Conservative, Beauce, QC]

From what I understand, Mr. Forbes, you're ready for action right now if the minister's prepared to announce something. Your calculations are done, and relations are already established with the Department of Finance.

[Chris Forbes]

Yes, I often speak with the minister.

[Richard Lehoux, Conservative, Beauce, QC]

I hope you do, Mr. Forbes.

My other question is in connection with the operating budget, more specifically capital expenditures. I see a significant 24% cut has been made relative to the 2019-2020 fiscal year.

In what department sectors has capital investment been cut?

[Chris Forbes]

I'll start answering that, and I'll ask Ms. Walker to correct me if I make a mistake.

First, we had additional funds in our 2019-2020 budget that we had used to increase our capital budget. We had added approximately $10 million, in part to meet requests from our research centres.

This year, if we have additional funds, we'll use them to provide subsidies in response to the COVID-19 crisis.

We directed surpluses to that budget item last year, but that's not the case this year because we'll be allocating them to other priorities.

[Richard Lehoux, Conservative, Beauce, QC]

Is there any connection with the money earmarked for the Canadian Food Inspection Agency for border post audits? If we want to meet our producer commitments under the newly signed agreements, there has to be reciprocity on standards, and we have to monitor carefully what goes on at the border to achieve that.

[Chris Forbes]

Ms. Barnes can tell you more about that, but the CFIA budget is separate from ours. Our capital expenditures are, to a large extent, allocated to our research centres.

[Richard Lehoux, Conservative, Beauce, QC]

So this budget cut doesn't mean there's been a cut to investment in the research centres. I say that because several witnesses we've seen in recent months have told us it's important to conduct more agricultural research.

[Chris Forbes]

We entirely agree. That incidentally is one of our priorities. We have to retain our research capacity, by which I mean our scientists, real property and research centres.

[Richard Lehoux, Conservative, Beauce, QC]

Thank you, Mr. Forbes.

Does the Canadian Food Inspection Agency need more money to ensure that work is properly done at the border, especially between Canada and the United States?

[Colleen Barnes]

We have to work with all stakeholders to target our activities at the border and thus reinforce the system.

[Richard Lehoux, Conservative, Beauce, QC]

Thank you.

[The Chair, Liberal, Pat Finnigan]

Thank you, Ms. Barnes.

Thank you, Mr. Lehoux.

Now we have Kody Blois for five minutes.

[Kody Blois, Liberal, Kings—Hants, NS]

Thank you, Mr. Chair.

I'd like to start by talking about the health of animals regulations. Of course, this was legislation that we as a government introduced in 2020.

As it relates to the Maritimes and specifically to my community in Nova Scotia, one challenge that has arisen is the fact that in our dairy industry we have a number of bob calves, male calves that really don't have any benefit on a dairy farm, and we don't have a whole lot of processing capability. That's one thing that of course we'll hear about during the study we're taking on.

A lot of these bob calves are transported to Saint-Hyacinthe, Quebec. They have to go a long distance. The new provisions that came under the regulations are starting to involve and basically create challenges for some of our producers.

I'm just wondering, Ms. Barnes or Mr. Forbes, if this particular issue in the Maritimes is on your radar and if it has been discussed before.

[Colleen Barnes]

Thank you, Mr. Chair. I can take that one.

Yes, it is very much on our radar screen. When the new humane transportation regulations came into force, it was clear that there were some issues, depending on the sector and on the place in the country.

What we've done is that, for the first two years, we're focusing on compliance promotion in relation to those feed, water and rest intervals that have to be respected. We've also set up a series of working groups with the targeted sectors. The issue you've brought up I know well. We are trying to find a solution. Yes, it's definitely something we're working on.

[Kody Blois, Liberal, Kings—Hants, NS]

I'm certainly glad to hear that, because it's something that has been coming up over and over, of course, in Nova Scotia, and it has cascading impacts in New Brunswick and Prince Edward Island as well.

I'll take you back to the 2018 fall economic statement. My predecessor at the time, Scott Brison, was the president of the Treasury Board. At that time, we announced a series of regulatory reviews and a series of different iterations. Of course, agriculture was featured prominently in that, and I know that it had some involvement between CFIA and the Department of Agriculture.

Can you speak to how some of those processes are unfolding? When I look at the deficit we have right now, and when we look at ways to drive the economy and to be able to help make producers' lives easier in terms of growing employment and opportunities, those seem like key measures. Can someone speak to those and where we're at broadly?