Madam Speaker, the debate to this point has been quite insightful. It tells us a bit about Canada and some of the problems we face. It is interesting that the debate is over something as simple as milking cows. The previous Liberal speaker has been actively involved in the dairy industry. I cannot say the same although I have milked cows.
It is very interesting to see a debate in the House, an argument, a scrap might be the correct word, between the Liberals and the Bloc over milking cows. It was at the point at which they were talking about marriages and divorces over milking cows. We have to wonder, in the marriage or the divorce who is the cow and who is the bull. Maybe we have two bulls, in which case where is the milk?
If we have this kind of debate over milking cows, can we imagine a fight over the future of Canada as to whether we remain a united country? We can imagine how the scrap will intensify. We will not be talking about milking cows, we will be talking about the St. Lawrence seaway, the division of assets, federal buildings across the river in Hull, federal buildings in Montreal and all across Quebec, apportioning the federal debt. We can only imagine the difficulty.
The problem is we have two parties in the House talking about marriage and divorce. It is time to change the parameters of the debate and start talking about life and death. With the parties involved in the debate all I see is the potential of death. They will scrap until someone is killed.
We may be talking about some new life in this issue. When I think about new life I think about Reform because Reform talks about a constructive new way of looking at things. Perhaps both parties need to lay aside their instruments of war and listen to Reformers who talk about a new Canada, the birth of new ideas, a new Confederation with 10 equal provinces working together because they have responsibilities appropriated to each level of government in a manner that will allow us to work co-operatively and lay aside some of these foolish and silly debates like the debate over how we milk our cows.
I farm and I have milked cows, mostly as a young lad. I do not claim to be an expert but I recognize the importance of the industry. Therefore it is a privilege for me to speak this afternoon on Bill C-86 which provides for the replacement of levies with a pooling system of market returns from different classes of milk use, which system maintains producer equity and is consistent with Canada's international trade agreement.
I rise in the House today to talk about an issue that should have been addressed many months ago. While I congratulate the government for finally addressing the issue of supply management, I have many doubts whether the government has the resolve to develop a policy that addresses farmers' concerns for the long term.
Canada's supply management system has provided stability to the dairy industry. In the system farmers are given a reliable means of marketing their product with a consistent price. Consumers are guaranteed in receiving a product of high quality. However, this has come with a hefty price tag for consumers with goods in some cases double what the same product would cost in the United States.
As long as our dollar is relatively low, below 80 cents U.S., it does not create too much of a problem. However, when we see our dollar increase above the 80 cent mark certainly we have cross-border shopping. Any Canadian who goes across the border to shop in the United States will put in their hamper large quantities of dairy products such as cheese, milk and the like. That indicates perhaps there are some fundamental problems and pitfalls ahead with regard to not only the dairy industry but all supply managed areas we need to openly discuss in the House and in the industry.
Recent developments in world trade have signalled the inevitable end of Canada's supply managed systems as we know them. The status quo will go, just as it will go with regard to the squabble between separatists and federalists. The status quo in the supply managed system will have to pass away as well.
As of August 1, 1995 under the Uruguay round of GATT all import quotas must be converted to tariffs. While tariffs may protect supply managed commodities in the short term, it is doubtful they will be a fixture in the long term. Canada will try
to maintain the 85 per cent tariff level until the year 2001 but it is likely the United States will challenge it. Even the parliamentary secretary to the federal minister of agriculture has said publicly this is inevitable.
I quote the MP for Prince Edward-Hastings:
What will likely happen is that the Americans will ask for a NAFTA panel in the very near future. The panel of industry experts is made up of two Americans and a fifth person who is chosen by
a flip of a coin'. The system is somewhat biased, depending on which countrywins the toss of the coin'. That's the way the system works.
The government is confident it can win an American challenge against tariff levels. However, what plan of action has the government developed if the Americans win the challenge? It reminds me that the Liberals said they were sure Canada would win the debate over article XI in the GATT negotiations.
Everyone knows the Liberals were wrong. We have found out the Liberals are wrong a lot of time. We are concerned that they do not always accurately communicate the conditions not only of the dairy industry, but those that many sectors of our economy may face in the future. The Liberals are not being straightforward with the results of the ongoing deficit and increasing debt.
It is about time we started to deal realistically with the issues before us and address in a very direct form the concerns of the dairy industry. For instance, a ruling in favour of the Americans would put the current system in jeopardy. We are reminded that an ounce of prevention is worth a pound of cure. The Reform Party supports the tariff levels which were agreed to under GATT.