The bill's implementation would provide priority access to an insolvent client's cash, inventories and accounts to help offset the losses associated with a product that was delivered but not yet paid for. As my colleague Mr. Woods said just now, the introduction of a mechanism that would give Canada some financial protection would open the door to restoring preferential treatment under the U.S. Perishable Agricultural Commodities Act, the PACA, for Canadian companies that sell products to the United States. This preferential treatment was in place prior to 2014, when it was revoked by the United States because there was no reciprocity.
It's essential to protect the supply chain. If one of the links has not received payment, it affects the entire system, right down to the family farm. In such a context, even if the seller is an intermediary, there has to be protection, and growers who sell through a third party depend on a domino arrangement to receive payment.
It's worth mentioning that once the act is enacted, the government would no longer have a direct role to play in the insolvency process and would have no financial responsibility once there is royal assent. So the act wouldn't require the government, and hence taxpayers, to compensate or cover losses incurred by a farmer if a buyer was unable to meet its obligations. Basically, the proposed model in Bill C‑280 reflects the parameters of a tried and true model used in the United States. It's a financially achievable solution that would not place any additional burden on the government.
The adoption of Bill C‑280 would promote a predictable and more stable market for companies through the safety net that would be established.
To conclude, I would like to underscore the fact that the Quebec Produce Growers Association firmly supports Bill C‑280.
Thank you.