Madam Speaker, as the new agriculture critic for the Bloc Quebecois, the Official Opposition, I am happy this morning to speak to Bill C-50 on the Canadian Wheat Board.
According to the information we received at our meeting this week with Agriculture Canada officials, this bill results from a Western grain producers' initiative. What they want is simple: they are willing to cut back on their profits in order to invest in research aimed at improving the genetic quality of wheat and barley. This bill will allow the Canadian Wheat Board to make deductions from wheat and barley producers' final payment cheques for the purpose of increasing private research funding.
As the single marketing agent for Canadian wheat and barley, the Canadian Wheat Board buys almost all grain produced. Deductions of 20 cents per tonne of wheat and 40 cents per tonne of barley will be made from payments on delivery. These figures were calculated by estimating research needs in millions of dollars and dividing the total by the number of tonnes bought.
As a Quebec farmer, I know much more about beef, pork and milk production than about grain production. So I was surprised to learn that although the bill only refers to wheat, the officials who explained Bill C-50 to us assured us that amendments affecting wheat would automatically apply to barley under the regulations. It also appears that two separate funds will be established, one for wheat and the other one for barley.
The deduction rates I mentioned will be set by order-in-council and not by legislation. This provision could exempt some classes of grain or some provinces. Alberta, for instance, will not participate in the barley deductions since the Alberta Barley Commission already makes such deductions.
Again, as a Quebec farmer, I was also surprised by the fact that deductions are optional. Officials said they were very confident that grain producers would participate based on the current rate of participation in the Alberta Barley Commission deductions program. We, in Quebec, have a similar process for marketing and advertising milk, but participation is compulsory.
A method like the one proposed here would not work in Quebec. As you see, we are really distinct in every way. With this 90 per cent participation rate, the commission intends to collect $4.7 million, of which $3.8 million is for wheat and $900,000 for barley, according to the estimates.
This money will then be used to subsidize research on improving the genetic quality of wheat and barley. Also, increasing the yield per acre makes the varieties more resistant to diseases and parasites and helps find new varieties to better meet new market requirements.
The first question that comes to our mind is of course the funding that Agriculture and Agri-Food Canada allocates to research on wheat and barley. We are told that the budget for it now is $18.7 million. If so, why must producers fund parallel or complementary research out of their own pocket? Do not misunderstand me. I think it is quite laudable to encourage farmers to take charge and proceed with the solutions that they know are best for them.
Nevertheless, Agriculture and Agri-Food Canada should not shift its responsibilities to the private sector nor should it be dependent on the private sector. Last week, the Department of Agriculture tabled a bill that, among other things, clarifies its mandate by specifying the department's involvement in research and development. Despite this restructuring, western grain growers conclude that they have to pay twice to benefit from research that meets their needs.
All taxpayers, which of course includes farmers, already pay $18.7 million for research and development on wheat and barley. Nevertheless, farmers will have to invest $4.7 million more to orient the research to their priorities. The department explains that funding for research and development is going down and that the private sector must take over. In the future, will the Liberal government lower its share to increase the contribution from the private sector, namely farmers?
Certainly, research and development is the key to remaining competitive on foreign markets. Initiatives such as this must be encouraged and the participation of the private sector, producers and industrialists, must be increased so that more research and development is carried out. But I think it is fundamental for the government to play its role and to finance agricultural research and development equitably. Earlier, I asked the hon. member for Matapédia-Matane if maple syrup producers in his riding had problems disposing of their production.
In my riding, and more specifically in Plessisville, the world capital of maple syrup, we have a surplus. I urge the federal Department of Agriculture to promote research on maple syrup and sugar in order to find new markets. Surpluses are enormous. Our producers must sell their maple syrup for roughly the same price as they did nine or ten years ago. Production costs are constantly increasing, while the selling price remains the same or is even lower than before.
In any case, what we are looking at this morning is the financing of a private research group, namely the Western Grains Research Foundation, which has already looked at the issue. Private financing of research offers some benefits to that sector. It meets specific needs identified by those who finance that research. On the other hand, the information gathered may remain confidential. Regardless of what we may think, the reality is that those two factors may influence grain producers.
The budget allocated by the department is insufficient. That department is all in favour of finding new markets, but it does not provide the necessary tools to that end. The money spent by the department on research and development for wheat and barley is not in line with priorities in that sector. This second finding shows a certain lack of understanding of the industry's needs.
I will conclude by emphasizing the importance of avoiding-and the minister alluded to that issue earlier-any duplication or overlapping between the department's research projects and those of the private sector. As the member representing the Quebec riding of Frontenac, I know what I am talking about when it comes to duplication and overlapping.
The most recent example is the referendum held in 1992. Quebecers are very familiar with the issue of duplication. We pay double and we keep our mouth shut. Last week, at a briefing on this bill by Agriculture officials, we were told that research initiatives will be discussed with the stakeholders in that sector, precisely to avoid any duplication or overlapping. It seems that the projects to be financed will complement each other but, unfortunately, the legislation is totally silent on that aspect.
Right now, we support Bill C-50, except for a few minor details. When the time comes to review this bill section by section for the benefit of western farmers, we will try to coax the Liberal government, the minister, as well as the new parliamentary secretary, the hon. member for Beauséjour.
Madam Speaker, the hon. member for Champlain will also discuss Bill C-50 in a few moments.