Mr. Speaker, if I might, this is a preamble very much fitting in and leading up to the bulk of my statement. Further, with respect to other speeches I have heard today I would submit this line of discussion is perhaps far more relevant than others that have existed. I wish to continue this line.
The minister also found a solution to the troubling durum wheat dispute with the United States, retaining for Canada an upper limit of shipments of wheat well above historic levels, thereby allowing Canadians farmers to continue shipping our high quality product to the United States.
Our minister of agriculture has developed a very predictable pattern to resolve problems in agriculture. He identifies the issue, he consults broadly with all stakeholders and in consultation with these stakeholders he puts forward concrete solutions to help our farmers.
Bill C-66, an act to amend the Western Grain Transportation Act, follows that successful approach. The purpose of these amendments is to eliminate the WGTA subsidy on movements to Thunder Bay of grain subsequently moved westward by rail to destinations in the United States.
Second, these amendments will provide the railways with the authority to implement demurrage and storage charges and dispatch rail cars carrying grains, crops and products under the WGTA.
Third, these amendments will eliminate the WGTA subsidy on wheat shipments to Mexico. In respect of the Thunder Bay backtracking, the way the present WGTA subsidy operates is to encourage the rail companies to ship grain to Thunder Bay from the prairies. When they wish to ship it to the United States, they ship it all the way back to either Fort Frances or Winnipeg before it is shipped to the United States.
The problems with this approach are many. It increases the time grain cars are in use, therefore reducing the speed at which grain can be shipped to market. It costs the government money to send the grain the extra miles. I do not think the grain really appreciates the extra scenery the taxpayers are paying for.
This amendment will reduce the cost to the Canadian taxpayer and will enhance the reliability of Canada as a shipper and seller of high quality grains. An improved reputation as a supplier will increase the demand for our product. No doubt because of its very high quality, when we have this very stable and enhanced reputation as a dependable supplier the buyers are going to come. All of this will be good for the Canadians farmer. Certainly that is very good news.
Presently under the WGTA storage and demurrage costs cannot be charged against cars hauling grain qualifying for the subsidy rates. This has resulted in grain cars being used for storage of grain, sitting there holding the grain, but not moving it.
Grain cars were built to move grain. With this type of amendment that is what they are going to be doing. Allowing for storage to merge and dispatch will ensure quick transfer of grain to market and will further enhance Canada's reputation as a prompt supplier of high quality grains.
This bill will alleviate the countervail duty investigation currently lodged against Canadian wheat exports by Mexico. The removal of the subsidy will be beneficial in meeting the volume limits of the export subsidy provisions of the GATT for wheat and wheat flour categories. Canada, therefore, will maintain access to the growing Mexican market.
I wish to once again thank our minister for acting, after consultation, in a very prompt fashion to get the grain moving in western Canada. He is doing a great job. One problem at a time, our system is improving.