Finance Committee on April 17th, 2020

[Martin Caron]

I think you're making an observation. It's something that has our attention. Of course, there's always a problem when it comes to dairy processing and processing plants. We have to figure out quickly how to even things out. We are going to need the federal government's help to support the entire chain, from producers to processors.

[Bernard Généreux, Conservative, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

Mr. Caron, the Quebec government announced its support, $100 per week for work in the fields, in addition to the $250 per week now available to workers receiving the Canada emergency response benefit, or CERB.

Do you think that's good news for farmers? If so, do you think it will be possible to have that in place by Monday? It's seeding time, and vegetable growers need the help desperately.

[Martin Caron]

It seems to be good news, but it's important to make sure the criteria are tailored to the problems farmers are dealing with on the ground.

[Bernard Généreux, Conservative, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

Since you brought up criteria, Mr. Caron, I'd like to talk about the rules and potential pitfalls the farming community has to deal with—the red tape in Ottawa and the assortment of regulations. People tell me that it would be good to relax certain rules, not to diminish product quality, of course, but rather to speed up the process of getting products to market. The idea is to be as self-sufficient as possible when it comes to food, especially in Quebec, which promotes buy local efforts.

Where do you stand on that?

[Martin Caron]

I'd say that a relaxing of the rules is clearly needed. For example, the government announced that employers of temporary foreign workers would receive $1,500 to cover isolation-related expenses, and people are wondering whether that assistance is retroactive. We are being told that it is, but we've seen people whose applications have been denied. That needs to be fixed immediately.

[Bernard Généreux, Conservative, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

Do you think it should be retroactive to when the crisis began, in other words, March 15, as opposed to January 1?

[Martin Caron]

Yes. People had to incur costs to apply certain measures, so I would say any initiative that puts cash in the hands of farmers is welcome. That's on top of the business risk management programs. We've long been calling on the government to enhance the AgriStability program.

[The Chair, Liberal, Wayne Easter]

Sorry, but we'll have to end it there, Bernard. You got in a lot of questions in a short time, and that's the way we like to see them.

If anybody else wants in on some of these questions, raise your hand, and I may see you.

We'll turn now Mr. McLeod.

[Michael McLeod, Liberal, Northwest Territories, NT]

Thank you, and thank you to all the presenters today. I really appreciate the discussion.

I want to pay a special welcome to somebody from the Northwest Territories, Mayor Napier from the Northwest Territories Association of Communities. I really enjoyed your presentation. I thought it was very informative and very well presented.

I wanted to ask, Mayor Napier, for your point of view about the different aspects of the federal emergency response plan being presented. We've had quite a few. We've had programs that were announced for the unemployed and programs for companies that saw lost revenue. We saw loan programs for small businesses and non-profits. We saw an indigenous business fund set up for indigenous governments and indigenous community corporations. We announced On the Land programs in the Northwest Territories, and I see people out there at their cabins and setting up tents all over the place. Then this week we announced a northern COVID-19 package, and we announced an indigenous community support.

Can you tell us how that's being received in the communities? Maybe you could tell us where the federal response could be improved.

That's my first question, and I have one more.

[Lynn Napier]

Thank you. It's great to hear from you as well.

The funding measures that have come out already have been very well received. All of the supports that are going towards the territorial government and to the On the Land program—which is an amazing measure that's been put out to allow people not only to self-isolate but also to go back to traditional practices for food security—are very well received across the territory.

What we're looking at now is that while money has gone out to airlines, we know that it's not enough, and airlines are critical to our entire territory. The impact of COVID-19 on airlines has been devastating, and there are communities across the north that we can get to only by air. We rely on airlines for medical travel, for food security, really for everything, and right now that's the only way we can even get testing for COVID into the smaller communities. We know that's a really urgent issue facing the north and probably rural communities all across Canada, especially for territories like Nunavut, where there are no roads that lead there at all.

We know that is a major impact. As well, we are coming now into breakup season, so we're losing the ice road access to many communities, and that's already affecting our supply chains. The impact we have seen on the supply chain in the past two months is only going to become worse.

We know that any money that's going to come into the area for construction or for supplies, for this season especially, will need to come soon, so that we can use those funds across the territory. There is a very limited window for getting to the different communities, so if there are any programs to help with economic stimulus, such as construction or housing, which is one of our federal platforms in the territory, we're going to need the money quickly so that we can get those projects going.

[Michael McLeod, Liberal, Northwest Territories, NT]

I have one more question for you. I want to talk about the economic recovery that you talked about. What kind of measures will the NWT communities want to see from the federal government when it comes to that recovery phase, when the worst of this is behind us?

I heard you say housing construction is an economic stimulus. I totally agree. Are there other things? What do you think needs to be in place?

[Lynn Napier]

I think housing, absolutely, is number one. As well, small businesses across the territory do not have the same resiliency that you would see with the larger box stores you have in the south. For municipalities, an increase to the gas tax or even a doubling of the gas tax certainly would be beneficial.

In my own community of 2,500 people, the financial impact in the past two months has meant increased spending and loss of revenue, which has cost our municipality about $180,000. That's very significant for our community, and for smaller communities across the north the impact is going to be just as great.

Across the territory, all of our schools have shut down. They're going to online education. We don't have broadband in all of the communities, and even in my community, where we do have broadband, it's not throughout the whole community.

We need broadband across Canada. We need housing. We need infrastructure. We need money for the municipalities.

[The Chair, Liberal, Wayne Easter]

Okay, we'll have to end that round there. Thank you both very much.

We turn now to Mr. Ste-Marie, who will be followed by Mr. Julian and Mr. Lloyd.

Go ahead, Gabriel.

[Gabriel Ste-Marie, Bloc, Joliette, QC]

Thank you, Mr. Chair.

I'd like to welcome all the witnesses and thank them for their presentations.

In particular, I'd like to thank Mr. Matte, who highlighted a number of critical issues. We've taken careful note of them, so rest assured that we will push for measures to be implemented.

My first questions are for Mr. Caron.

Mr. Caron, thank you for being here. During your presentation, you talked about the problems facing the agricultural sector. Can you describe them in greater detail and tell us how the current support program falls short? You said it wasn't designed to deal with a situation like the COVID‑19 crisis.

Why is it so urgent to take action?

[Martin Caron]

First of all, those programs were put in place to deal with weather-related issues and market declines. When they occur, it's usually over a long period of time. In this case, however, the drops in the market have been very swift.

The programs can't respond quickly, and that's why we called for a special fund that would provide support quickly. The problem we are dealing with is a liquidity problem. Farm businesses need money.

The programs don't necessarily cover the costs associated with the pandemic and market declines.

[Gabriel Ste-Marie, Bloc, Joliette, QC]

Thank you.

In your presentation, you mentioned the AgriStability program and the need to make it better.

Could you briefly explain what needs to be done?

[The Chair, Liberal, Wayne Easter]

Martin, could you speak a little more slowly and into the mike? The translators are having a little difficulty.

[Martin Caron]

As far as the “Agri” suite of programs is concerned, we asked for a 15% increase, a return to what it was. We also asked for a 5% deposit with respect to AgriInvest. The program shouldn't require farmers to make a deposit in terms of matching. Naturally, an emergency fund needs to be created, as Ms. Robinson, of the CFA, mentioned earlier. That's a crucial piece.

Right now, the entire chain is in trouble. Farmers have to hold on to their livestock—be it hogs or cattle—keeping the animals on their farms because the slaughterhouses aren't operating. There's a serious break in the supply chain.

It's important to understand something. When consumers go out to eat, they order sirloin and steak, but when they eat at home, they want ground beef.

There's an imbalance, and dairy and pork production are just two examples of where it's being felt.

[Gabriel Ste-Marie, Bloc, Joliette, QC]

Thank you.

Mr. Généreux brought up milk production. Some groups are recommending that the credit capacity of the Canadian Dairy Commission be increased.

Where do you stand on that?

[Martin Caron]

I think all the options should be on the table. It could be something that allows for a longer view to some degree. I think a plan is what's needed, and the federal government will have to be a part of those agreements.

[Gabriel Ste-Marie, Bloc, Joliette, QC]

I see.

You want to see an increase in the advance payments program. What are you looking for exactly?

[Martin Caron]

When you apply for the program, a report is necessary in order to receive an increase. I will tell you all that does is draw things out. It doesn't get money to farm businesses quickly or directly.

Programs that provide liquidity support are what's needed. The $40,000 program that was proposed is promising. It may be worthwhile to recommend increasing the amounts.

Farmers need support, especially vegetable and horticultural growers. These businesses need labour support, above all.

[Gabriel Ste-Marie, Bloc, Joliette, QC]

Your message is loud and clear. Thank you.

[Martin Caron]

Thank you.

[Bernard Généreux, Conservative, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

Mr. Chair, can I ask a question? I can take his time, if he doesn't want it.