Mr. Speaker, as a grain farmer representing the rural constituency of Dauphin-Swan River in western Canada I firmly believe that we need a long term vision for the grain industry.
The current difficulty in moving grain is just one of a number of issues affecting Canada's grain and oilseed industry. The short term immediate problem must be addressed to ensure that it is not repeated next year.
However, it is also time to take a look at the grain marketing system as a whole. We must be prepared to ask ourselves if our industry is positioned properly to build on the opportunities that are out there.
The new trade deals offer new market opportunities and the Canadian grain industry must examine how it can best take advantage of these opportunities. New trade agreements, notably the North American free trade agreement and the GATT deal, mean obligations that the Canadian government must meet.
For example, the GATT requires that we make changes to the WGTA for shipments to the west coast and to Churchill. The Minister of Agriculture and Agri-Food has asked representatives of the grain marketing system to a meeting in Winnipeg on May 16.
Why should the industry and government work together to develop a vision for the future? First, the marketplace is changing, trade patterns are shifting, traditional markets for Canadian grain are disappearing, Asian countries and the Americas are now the focus of Canada's grain marketing efforts. These changes in trade patterns mean different demands on Canada's grain handling and transportation system.
There are also production driven demands as farmers turn to higher income, alternative special crops. We are selling to fewer larger institutional buyers and more to individual buyers such as millers who require just in time delivery. This changes, for example, the time and resources required to ship our grain.
As we look toward a vision for a grain policy framework, clearly decisions we make today on a number of grain issues need to be based on a long term vision for the grain industry. Today I would like to outline the policy framework we intend to
use as a basis for working with industry to shape a vision for where we want the grain marketing system to be in five to ten years.
The first area is transportation. My hon. colleague will or has already outlined the steps we are taking within the industry to resolve the serious short term system capacity problems plaguing the industry.
Other transportation issues include the St. Lawrence seaway, the WGTA issues, rail system efficiencies and the NTA rate setting. On the St. Lawrence seaway, the Standing Committee on Transport has established a subcommittee to review the seaway system. This government is grateful to have this report.
On WGTA, by June the minister will have reports from the producer payment panel on methods of paying the benefit and from the Grain Transportation Agency on efficiencies. A study was also undertaken of the NTA rate scale.
The hon. Minister of Agriculture and Agri-Food plans to announce a process for reviewing the recommendations on all of these issues so that the government is in a position to make decisions by the 1995 crop year.
The industry is very concerned about a number of grain marketing issues, but the issue is very divisive. The Canadian Wheat Board for its part already has made important studies toward positioning itself to meet new global marketplace demands. For example, it has made changes to improve its price information for producers and the industry. It has made changes to the quota system so there is better information on the amount and quality of grain in the country elevators.
In the trade area we are faced with a combination of tremendous trade opportunities in the U.S. mixed with increased protectionist pressures. Canada continues to work toward a negotiated settlement. That is good for Canadian agriculture.
Our objective is to achieve a settlement before the 90-day consultation period which is up in July. If agreement is not possible and the U.S. acts to restrict imports of our wheat we have the right to retaliate, and we will. Canada will not roll over and play dead.
In the regulatory area, the Canadian Wheat Board and grain commission have made numerous changes in their operations which are contributing to greater industry competitiveness. For example, the Canadian Grain Commission has examined ways of handling grain that are not visually distinguishable.
Visual distinguishability remains an integral part of our grading system. Our commitment to a grading system which ensures quality and consistency remains unquestioned. We are also considering options as to how the grain commission regulates terminal elevator tariffs. The goal is more flexibility for grain companies and, in turn, a more flexible grain handling system overall.
There is an industry based committee in place now to continue monitoring the implementation of regulatory review recommendations over the course of this year.
Another factor in the whole grain policy area is the safety net programming. In order for the industry to change in the face of a changing global marketplace it must be supported by a strong safety net program. Currently a committee representing farm groups and federal and provincial governments is reviewing the Canadian farm safety nets.
Its consensus is to make a whole farm safety net program available to all commodities. They also agree that some type of additional support or supplementary programs may be needed to deal with specific regional or commodity problems as they arise.
Federal and provincial ministers of agriculture expect to receive the committee's report in July. The goal of this government is a safety net program that is GATT consistent, market neutral, financially sound, affordable, effective and understandable. Our policy framework involves decisions on WGTA before the 1995 crop year, continued implementation of the regulatory review over the next year, overseen by the industry based advisory committee, a negotiated settlement in our trade dispute with the U.S. before the section 28 deadline in July but only if the settlement is a good deal for Canada, and finally whole farm safety nets for the 1995-96 year with companion programs if necessary. The committee of producer representatives and federal and provincial governments will work together toward this goal.
These are the means we have established to achieve our goals and the timeframes we have set. On this basis the minister has asked representatives of the grain companies, railways, grain handling labour unions and government agencies to a meeting in Winnipeg on May 16.
We must move immediately to re-establish Canada's reputation as a reliable supplier of export grains and oilseeds. It is critical that the people who own and run the system come together now to set their collective sights on the next five or ten years.
Before we make decisions today we must ask ourselves what kind of a grain marketing system is needed for a competitive tomorrow.