Mr. Speaker, it is a pleasure this evening for me to rise and pay tribute to my hon. friend from Annapolis Valley-Hants for his very informative discussion on agriculture.
Being a member of the standing committee on agriculture I take pride in being able to talk about the concerns of agriculture, specifically in Souris-Moose Mountain which is a very large rural riding in southeast Saskatchewan.
One of the concerns we have is the movement of grain and the situation it poses for all of us. With this question in mind, it is necessary for us to take a look at the problems that have been created. We may have tarnished Canada's reputation as a reliable shipper and supplier of grains and oilseeds because of our inability to ship on time.
There are some factors which severely challenge Canada's ability. We must meet the demands though. Our western agricultural community was built on exporting grains and oilseeds to overseas markets. Canada has built and maintained for over half a century an excellent reputation as a dependable supplier. We have high quality grains and oilseeds and because we have that reputation, we must work diligently to protect and maintain it. That is why the current situation concerning grain transportation needs to be addressed.
Canada's inability is causing some concern in our Asian markets, namely Japan and China. The government is not content to let this situation continue. Over the past few weeks we have seen at least 40 vessels tied up at the port of Vancouver. There are demurrage charges in the amount of $10 million.
Where do those demurrage charges go back to? They go right back to the farmer, who is the person who is suffering most and yet must pay those costs. How about the cost of sales that are lost? The Canadian Wheat Board estimates that we have lost $280 million in sales because we do not deliver on time.
Our customers look elsewhere to satisfy their needs. I know that Japanese canola customers have already looked to Australia and Europe for new suppliers. When a market is lost in Canada the farmers cannot afford it nor do they want to see it happen.
The government is very concerned that the grain movement situation be placed as a high priority and that we work toward solutions. The issue is not simple. A number of factors have led to the shortfall in a number of rail cars. One is the movement of grain to southern markets and a turnaround time of possibly 40 days. In most cases, it is at least two times the normal length of shipping time in Canadian markets.
That rail car shortfall is due to several factors. The Mississippi flood caused the normal use of U.S. cars to be limited to us and we have had to turn to other means. The late harvest last year caused problems for us in moving our grains to the port of Thunder Bay and to the west coast.
Unexpected increases in the movement of canola also created problems at Thunder Bay. The operation at country terminals because of the extreme cold weather in January and February caused additional problems. The work stoppage at the port of Vancouver did not help at all. A 13-day shutdown because of labour unrest caused the terminals back up.
We are looking to solving these problems. How do we get weekend loading? How do we ensure that we can have seven days a week of service at those ports? However the key players in the grain and marketing industry realize there is a problem. I am confident that they are going to take a look at the turnaround time of the cars.
Both railways have increased their budgets for maintenance. Railways have also modified their train service and have increased the switching budgets. CN has just added 765 boxcars from Hudson Bay into the Thunder Bay shipping area.
Shippers have been allowed to bring in private cars. We have introduced an emergency trucking program, a subsidy through the Western Grains Transportation Act which will allow movement to Thunder Bay and to Vancouver. Therefore we are now looking to weekend loading and unloading, an efficiency in the system that we have not had for some time.
Senior executive officers of railway grain transportation and of government are going to look at the problem. They are going to review the shortfalls for 1994-95. We have set up a human resources Canada commission to study the labour issues in western grain transportation. The report should be due in July.
Clearly much has been done but much remains to be done. This problem cannot be solved by looking at one issue alone. More than rail cars are the problem for us.
The Canadian grain marketing system must continue to run efficiently in the face of the changing marketplace. Western Canada is now producing a different mix of grains and oilseeds and specialty crops. It is time we examined Canada's grain marketing system to look where the grain is going and determine whether the system is in place to make sure we get it there.
Canada is now competing in a world market that has changed since last year. The General Agreement on Tariffs and Trade is certainly going to change our way of marketing. The agreement means new marketing opportunities for Canada's grains and oilseeds throughout the world. A strong, efficient grain marketing system will continue to be the backbone of our industry. It is vital to ensure that kind of system takes us into the year 2000.
Concerning grain marketing, handling and transportation, different groups and representatives from grain companies, railways, and labour unions involved in grain handling will be meeting in Winnipeg on May 16 to review the problem and hopefully come to some resolution. We look forward to an industry in which government along with the others in the system bring us a proper grain handling system for our oilseeds and our grains.
I want to turn for a moment in the final part of my speech to review some matters in my riding.
In Weyburn an ethanol plant is proposed to come on stream. Moosomin would like to see one come on stream. In Kipling, pork producers are looking to introduce a new breed. In Broadview we have a maple syrup program, a wood products future and ethanol. Inland Terminal is certainly a major impact on the Weyburn area. The PMU farms in southeast Saskatchewan are growing, but they need protection. They need some assurance that we will support them. PMU stands for pregnant mare urine.
Our specialty crops continue to be enhanced. However, we are facing a rural decline in southeast Saskatchewan. Added to that is the fact that Saskatchewan along with Atlantic Canada has the largest amount of debt in the agricultural sector which is a deep, deep concern.
We want to ensure that we have a whole farm safety net program to deal with the debts, to help the people who are working the farms of southeast Saskatchewan move forward.
Saskatoon has one of the most outstanding research centres in the biotechnical field in Canada and certainly in the world. It has just introduced sunola which is a new sunflower oil. There are 100,000 acres under production. That particular crop is certainly going to enhance the viability of farming in Saskatchewan.
In closing I deem it a privilege to speak on behalf of the agricultural program that our government has put forward. It is very forward looking. It is going to take us into the future.
On behalf of the rural community of southeast Saskatchewan it has been a pleasure for me to rise in this House and speak in this debate.