Mr. Speaker, it is a pleasure to respond to the hon. member's comments. I only regret that it is two minutes and not twenty, because I think I could help him understand. I am sure in the end he would understand and appreciate the action we have taken.
The hon. member is suggesting that the elimination of the Crow will have a damaging effect on the prairie economy. In fact, this government is certainly committed to restoring the economy in western Canada to its full potential. The document that has been put forth for discussion purposes, and I stress that, would see approximately half or about $800 million of the $1.6 billion ex gratia capital payment going to Saskatchewan.
The share will be representative of Saskatchewan's share of prairie grain movement. Farmers will also benefit from the capital gains tax advantage.
The government's assistance however is not limited to that. There will also be a share in the $300 million adjustment fund. That will be available for some areas in Saskatchewan as well.
These initiatives are only part of this government's plan to restore the prairie economy and help make this region an integral economic force in an increasingly competitive global marketplace. Changes with respect to freight rates have the potential to encourage diversification and value added production throughout the west.
I might interject here. I just got off the phone with a friend in a riding next to mine whose company is in the livestock industry. It had three orders from pork producers in western Canada today to increase and make some changes in those operations because of what this is going to do. It is indeed going to follow up on diversification.
Only days after the announcement, and the above is a good example, that potential is being recognized. Industry groups are already talking about moving into other crops and diversifying their operations.
It is not only farmers who are adjusting. Transportation industries ranging from trucking companies to seaports are closely examining the services they offer in order to increase
their efficiencies. Some are already offering suggestions for alternate commodities based on the transportation costs of these products.
These activities, coupled with the government's assistance to help farmers adjust to the short term impact of the loss of the WGTA will inevitably lead to long term economic growth in the prairies.
I ask the hon. member not to underestimate the skills and resources of all those involved in the prairie economy. These factors along with the financial assistance being provided will ensure a rapid adjustment to changes in the WGTA and the long term economic benefits for the prairies and for all Canadians.