International Trade Committee on April 23rd, 2009

[Peter Julian, NDP, Burnaby—New Westminster, BC]

Thank you very much.

I have three further questions.

You have already responded, Mr. Read, in saying essentially that you'd like to see a system like this across Canada, which is important given how small the costs are compared to the actual level of sales and exports that we have.

I have three quick questions.

First, we have talked a lot about the actual strength we have in our export sector and the type of product promotion support that we provide. There has been, I think it is fair to say, a criticism of government that we're not providing enough support in product promotion in our beef and pork sectors, so I'd like you to give us the figures on what you get in product promotion support.

Second, you've talked about cost, but is the meat inspection timely, or is that an issue as well for the meat council?

The third and final question is, if we go down to Washington, are we on defence or offence? In other words, are you happy with the final rules or would you like us to push back on the final rules? From your presentation it seems that you're concerned that essentially the agriculture secretary will want to push further than the final rule on this. Are you satisfied or at least willing to tolerate the final rule, or would you like us to push this further back?

Those are my questions. Thanks.

[Brian Read]

Let me start off with the last one first, if you don't mind, sir. I think I wrote them down, but if I missed one, catch me.

First let's talk about the final rule. The final rule is liveable. My only concern is what's next. That's the issue, and I think that is where we have to push back. We have an integrated system, whether it's pork or beef--I'm not close enough to poultry, so I can't go there for you--but we have an integrated system between the two countries that works well for both industry as well as consumable goods and the consumers themselves.

We believe what we have is an equivalent inspection system. We communicate well, but I'm not sure how well we communicate, so I don't want to be one up on them. There is no value in poking them in the eye, none whatsoever. We respect them. When I go to the United States to eat, I feel I'm eating as safely as I am in my own country. It's one of the few countries I feel comfortable in.

That's what we're asking: why are we implicated in it? That's the issue. The live pig guys will tell you a different story. They're feeling it today, and I don't want to speak for them because it's a serious problem. The live beef guys today are not feeling it because they're getting $5 a head more this week, but where is it tomorrow? That's the issue. What's next?

That's the way I would approach this one.

Meat inspection: We travelled the world extensively by ourselves and we asked a question of the Minister of Agriculture yesterday. Our meat inspection in this country is second to none, and we shouldn't lose sight of that. We have more intervention, more food safety in my plant than I've ever seen before. I started in this industry quite a few years ago, when you smoked a cigar on the kill floor, and you possibly got drunk by supper. That's not allowed to happen. We fire people for that today. We put full face masks on people with beards and moustaches, and we have hair protection.

[Scott Brison, Liberal, Kings—Hants, NS]

It's hard to drink with a face mask.

[Some hon. members]

Oh, oh!

[Brian Read]

Yes. I'm just saying that's where the industry came from, and we should take pride.

[The Chair, Conservative, Lee Richardson]

It used to be like that in the House of Commons.

[Some hon. members]

Oh, oh!

[Brian Read]

You're right. It did.

[Some hon. members]

Oh, oh!

[The Chair, Conservative, Lee Richardson]

Now we don't have night sittings.

[Brian Read]

You're right.

I'm just saying that when it comes to promotions, I don't believe we do a good job on promoting the food safety aspect of this country, and how we embrace it, and how we cherish our consumer. I say that as a meathead, and I'm not a sales point or anything like that. It's a fact. With BSE, or mad cow, our system has been audited by the world--Japan, Korea, you name it, they've been here. Before they resume trade, they have to do plant inspection first. New Zealand has been here. I think Indonesia will be here May 1 or May 2, or something like that, and then right behind them another country comes in. Nobody condemns us on the way out. So I think when it comes to promotion, we have to start promoting and informing our Canadian people about what we do, and not sit there. Once the horse is out of the barn, you can't tell anybody anything. They all put plugs in their ears, and I'm no different. If you say, “Get a thousand”, I'm listening. If it's “Do you want a thousand?”, I've probably forgotten.

What was the next one?

[Peter Julian, NDP, Burnaby—New Westminster, BC]

It was product promotion.

[Brian Read]

Can I finish?

[The Chair, Conservative, Lee Richardson]

Okay, but we'll have to wrap it up with that one. Go ahead.

[Brian Read]

It was product promotion.

I believe we make a lot of good efforts. I think we're looking at synergies now. We're trying to say, how do we get better value out of it? When we get into product promotion, really what we're looking at is volume promotion. To give value to the product, you have to spread it out. The more customer base you have, the better. In this case it's the world, so we need the world at our hands.

[Peter Julian, NDP, Burnaby—New Westminster, BC]

How much do you get in support for product?

[Brian Read]

Our company is a member of the Canada Beef Export Federation, so we take advantage of that. In terms of actual promotional dollars to the plant, we don't take any directly. We work with the national associations.

[The Chair, Conservative, Lee Richardson]

Thank you.

I think we'll probably do only one round, so Mr. Keddy, I'll let you lead off, and you can share your time as you like.

[Gerald Keddy, Conservative, South Shore—St. Margaret's, NS]

Thank you, Mr. Chairman. I think Mr. Holder will take the second part of this question.

I think the whole COOL regulatory regime we've struggled with as government. We certainly recognize that Canadian industry has done a pretty good job of abiding by the regulatory regime. I think you're being kind to your American counterparts. I think you're being very kind to them, quite frankly.

I want to comment on what you said at the end of the discussion, because this is really my point. I think it really does promote our system. I had a small flock of sheep before politics, and I also had some background in the forest industry, where we watch our product management very closely and have been watching since the eighties with country-of-origin regulations. I'd just like to explain something on that.

You talked about zoning systems. Nova Scotia, New Brunswick, P.E.I., and Newfoundland have a zoning system for forestry that is separate from that for the rest of the country. We have a 72% private land base, and we work on the same basis as the Americans do. We proved that during “shakes and shingles” in the eighties and brought in a regulatory regime then to show that all of our lumber comes from Atlantic woodlands. In the last softwood lumber discussion, we were exempt from that. We couldn't get exempt from anti-dumping, but we certainly were exempt from countervail.

[Brian Read]

This is just a quick comment. Seven potatoes punted you out of the United States. That I don't understand. Sorry.

[Gerald Keddy, Conservative, South Shore—St. Margaret's, NS]

Absolutely.

Anyway, the regulatory regime gave us a competitive advantage, and I think the ATQ in Quebec gave you a competitive advantage with BSE. You still exported your veal into Japan, which was a closed market for all of us. So I really think there's something here that we shouldn't ignore, and we're certainly looking at new markets around the world, and ongoing discussions, especially with the European Union. If there's any ability at all for us to move product there, we're going to have to have a traceability system.

I've always wondered--most farms have traceability on the basis of animal health--

[Brian Read]

And production.

[Gerald Keddy, Conservative, South Shore—St. Margaret's, NS]

And production. And they have to; there's no way around it. If you just multiply that by a very small factor you can....

I think your comment is very good that we can guarantee the safety of our system and very few other countries can, quite frankly. I think it is to our competitive advantage. We do get some pushback from the beef and hog industries versus your opinion from the slaughter side.

It's just a comment, that's all. I know Ed has some direct questions.

I guess my question would be about keeping that market open. I don't think there's anything else to keep that market open. The Americans are going to be protectionist; they always are.

[Brian Read]

Yes, and I agree with that. But we need something from them in writing that they will accept our process. It's nice to say we're going to spend $10 million on West Hawk Lake, but then when you sit down to try to quantify it--I apologize, Peter--to put value to something, you can't justify it. Industry can't sustain it because we have to compete with them.

Is that too simple?

[Gerald Keddy, Conservative, South Shore—St. Margaret's, NS]

No, not at all.