Madam Speaker, I wish to speak in support of Bill C-51, an act to amend the Canada Grain Act.
Bill C-51 contains a variety of necessary changes to the Canada Grain Act. I believe that producers, the grain industry and Canadians in general will find measures to address their specific concerns.
The aspects of Bill C-51 that I wish to comment on are those which enhance the international competitiveness of Canada's grain industry. Canada is a trading nation and competitiveness is essential.
In the world of free trade that we see before us, our ability to compete will directly affect our capacity to sustain and improve the living standards of Canadians. Few Canadian industries depend on international trade more than our grain industry. Every year we export 25 million to 30 million tonnes of grain, more than half our annual production. In wheat and barley we rank second among the world's top exporters. In other grains, canola and flaxseed for example, we are world leaders. There is no question that we depend on our trade for continued help to our grain industry. Our grain industry's success is central to the health and well-being of rural communities throughout western Canada especially.
Part of the role of government in this regard is to create a regulatory environment that adds value to the efforts of Canadians to create, to produce and to compete. This includes developing new laws that support our shared interest and also includes removing laws which no longer are useful or purposeful.
An important initiative contained in Bill C-51 concerns the deregulation of maximum elevator tariffs. Elevator tariffs are the fees that grain elevator companies charge for their services. They cover the cost of handling, storage, cleaning and the drying of grain. Under the current Canada Grain Act, the Canadian Grain Commission is required to regulate elevator tariffs by establishing maximum allowable levels. As well, companies are required to provide 14 days notice of any change they wish to make to these tariffs.
Bill C-51 will remove the requirement that the CGC place a ceiling on tariffs. Companies will be allowed to adjust their tariffs without giving prior notice to the CGC.
Critics of this legislation may charge that the government is abandoning producers, exposing them to excessive charges by elevator companies. However, a close examination will demonstrate that regulation of tariff maximums is no longer needed and that ample safeguards exist to protect producers from
excessive charges. Government regulation of tariffs dates back in time to when producers were less able to protect themselves from the setting of unfair prices. However, because producer owned or controlled companies now control the majority of elevator capacity in Canada, we believe that there is less need for government to regulate tariffs on behalf of producers.
On the west coast, producer owned or controlled companies own 54 per cent of terminal capacity. At Thunder Bay the figure is 75 per cent. It stands to reason that these companies will act in the interests of producer owners by offering competitive prices. With no competition there will be no need for government to set prices.
Even though we are confident that elevator companies will behave responsibly, Bill C-51 contains numerous safeguards for producers. Deregulation of maximum tariffs will proceed in stages. Initially, the commission will retain the authority to set tariff ceilings by order of a two-year transition period. After this transition period, the commission will continue to have authority to set maximum tariffs by regulation if needed. During and after the transition period the CGC will perform a mediation role responding to complaints and seeking remedies.
Based on the responsible behaviour of the companies involved, we have reason to be optimistic in the current crop year as terminal elevator operators receive power by commission order to set their own elevator tariffs. For the most part their increases were minor and on the whole, very fair. This augurs well for the future. I am confident that allowing the market to function more freely will provide more benefits for all. These benefits will include more capital investment by elevator companies and a more flexible, competitive elevator industry.
I should note that regulation has not prevented a high tariff system. For example, for a variety of reasons, U.S. rates which are less regulated are lower than Canada's.
This amendment arises from our commitment to removing regulations which restrict the competitiveness of Canadian industry. Bill C-51 contains other similar initiatives. For example, process elevators will no longer be required to undergo weighovers. A weighover is an audit conducted to verify that the weight and grade of grain stored by an elevator corresponds with what is recorded. Weighovers help maintain the integrity of grain transactions when conducted at a terminal and transfer elevators because in those instances the elevators are often handling grain they do not own. However, process elevators own the grain they have in stock. Therefore weighovers saddle them with an unnecessary cost and thus hamper their competitiveness.
Earlier I spoke of the need for laws which add value to the efforts of Canadians. I said that this involves removing unnecessary obstacles such as maximum tariffs and weighovers at process elevators. It also means that new laws are required from time to time.
In the context of Bill C-51, there are provisions which strengthen the role equality plays in Canada's grain industry. As well, Bill C-51 sets out the responsibility of elevator operators for the safe handling of hazardous compounds and the safe disposal of contaminated grain. It confirms the CGC's authority to set standards for the drying of grain. All of these measures add value to Canadian grain and serve to enhance our competitiveness in the world.
In conclusion, Bill C-51 is the product of lengthy, detailed discussion with stakeholders throughout the grain industry. Producer organizations played a major role in these consultations as did elevator companies, processors and marketers. Because Bill C-51 reflects a broad industry consensus I believe it deserves the support of all members of this House.