Mr. Speaker, I appreciate the opportunity to speak for a few minutes on this bill that is before the House, Bill C-263.
I want to assure the member who just concluded his remarks that my remarks are not made in an adversarial way but just to simply point out how this bill would address the Canadian Wheat Board. I know it is a crown corporation that is of some interest to the Reform Party and it is of some interest to all of us in this House, particularly those who are involved in the agri-food industry.
I want to point out in the next few minutes why this bill is absolutely unnecessary and actually would be doing much of what the Reform Party has faulted governments in Canada for in the past, repeating something that is already done and doing things twice and spending money that is not necessarily spent.
The Canadian Wheat Board was established in 1935 as a marketing agency for western grain farmers. At the time farmers in western Canada wanted a system that would control price fluctuations, distribute delivery opportunity equitably and move the largest volumes of grain at the best possible prices.
That mandate is still the same. The Canadian Wheat Board remains the same now as it was years ago in the mandate that it has, to earn farmers the best possible returns for their wheat and barley. That is exactly what the board has been doing for that 60 years. It has done an excellent job of selling Canadian grain at the best possible prices and then returning as much money as possible to the users of that board, those users being western Canadian farmers.
Although the Canadian board is a crown corporation, its operations are financed by 130,000 grain farmers in Manitoba, Saskatchewan, Alberta and the grain growing areas of British Columbia.
This in itself makes this crown corporation unlike many of the others. Some crown corporations including the Canadian Wheat Board are exempt from the application of the Financial Administration Act. It is one of the member for Okanagan-Similkameen-Merritt listed this afternoon as being exempt.
With this bill this exemption would be removed and the crown corporations affected by the bill would become subject to a different reporting system with different requirements.
For example, under this bill the Canadian Wheat Board would be required to submit a corporate plan to the Minister of Agriculture and Agri-Food for approval by the governor in council. The board would also have to submit an operating and capital budget annually for approval by Treasury Board. This report would then be included in a review by the parliamentary committee.
Finally, the wheat board would be subject to an audit by an outside auditor and possibly the Auditor General of Canada.
There is no doubt in my mind that the objectives of the bill are well intended. I can assure everyone that the Minister of Agriculture and Agri-Food and the government are in favour of ensuring that the accountability is there. That accountability at the present time is to farmers, the government and to taxpayers.
It is essential to remember that the board's operations are funded by farmers, not by government. Nor does the board operate with a capital base funded by the government. Although some accountability to the government is appropriate the board's first responsibility is to western Canadian wheat and barley producers.
I should also emphasize that the board is already accountable to the government through a variety of provisions in the Canadian Wheat Board Act, a separate act. The safeguards established under that act are virtually the same as those under the Financial Administration Act. Again, why repeat it?
Even though they are there they are slightly modified to take into account the unique nature of the wheat board's business. For example, the board is required to file an annual report with the minister by March 31. This annual report is tabled in Parliament.
The wheat board act requires the board to have an external auditing firm conduct an audit each year and to keep proper books. The Canadian Wheat Board Act also grants borrowing powers subject to the approval of the Minister of Finance. In all of these examples the provisions of the Financial Administration Act are virtually identical.
I could go on but the point is Bill C-263 which has been put before us today is not the way to enhance the accountability of the Canadian Wheat Board. The government's main concern for accountability and the reporting process that ensures it should stem from a need to be aware of possible government expenditures.
There will only be government expenditures if there is a deficit in the pool accounts. A deficit in the pool accounts will only occur if the Canadian Wheat Board's initial payments to farmers are set at or raised to levels that exceed the ultimate levels from the sales of wheat and barley. Since the government must approve the level of the initial payments it already has an effective method of accountability in this area as well.
Another serious concern with the bill is that the nature of the marketing activities of the Canadian Wheat Board requires extreme confidentiality. The reporting relationship between the Canadian Wheat Board and the Minister of Agriculture and Agri-Food is created under the Canadian Wheat Board Act and it is appropriate, given the need to ensure that confidentiality.
We are also concerned about timing. The minister has already announced his intention to begin a process that will rigorously examine all of the facts and issues relating to western grain marketing and the Canadian Wheat Board. It is no secret that opinions on this and these issues are sharply divided on the subjects. There have been meetings, rallies and demonstrations on both sides of these issues.
Before the government makes any decision on the future of the board, farmers have a right to carefully consider the situation and together they must decide what represents the best balanced solution for their industry. Bill C-263 represents a very important decision. Its impacts on the Canadian Wheat Board and on western grain growers are potentially far reaching.
It is our duty to act fairly through a transparent forum and to consult farmers before we make any major decision on the future of the Canadian Wheat Board.
We know what the majority of farmers want. When we are convinced that the procedure to get their views has been fair, impartial and equitable and does represent what the majority wants, then and only then will this government be ready to approve changes to existing legislation.
Until then I urge members of this House to respond to Bill C-263 with a clear and strong message that we are not yet ready to make major changes without understanding the consequences and most important without consulting with its users, the prairie farmers.
There is still a lot of work to be done and there is still much consultation to go through before we can come to a definitive decision on the future of the wheat board.
In conclusion, I would ask the members of this House not to support Bill C-263 as it relates to the Canadian Wheat Board.