moved:
Motion No. 1
That Bill C-86 be amended by adding after line 43, on page 2, the following new Clause:
"2.1 the Act is amended by adding, after subsection 9(1), the following:
"(1.1) the Commission may exercise the powers described in paragraphs (1)( f ) to (i) only with the agreement of a ) the province where the power is to be exercised, or b ) the Board that has jurisdiction over milk or cream in the province where the power is to be exercised.''''
Mr. Speaker, I am pleased to rise to present an amendment to Bill C-86, which will change the Canadian Dairy Commission Act. I recognize and acknowledge up front that changes are necessary to the act which will allow it to operate within the trade agreements now in place, particularly the NAFTA and the GATT.
While acknowledging that the changes are needed, I have some concerns about Bill C-86. The main concern is that the Canadian Dairy Commission will be allowed to exercise powers which have traditionally belonged to the provinces. Concerns have been expressed by dairy farmers and others in several provinces about the movement into provincial jurisdiction.
While I have concerns about what is in Bill C-86, my larger concern is with the discussions which have taken place since its introduction. What I have heard in the discussions is that the bill will accommodate supply management. It will allow supply management to continue pretty much as it is with some changes. We have heard from the agriculture minister, the parliamentary
secretary to the agriculture minister and dairy groups that because the legislation will accommodate supply management no changes are required. That concerns me. Certainly a lot of dairy farmers who I have spoken to know that changes are coming in supply management. These changes will come not because of legislation passed in Canada but as a result of pressure, particularly from the United States, through the trade agreements NAFTA and GATT.
The discussion surrounding Bill C-86 is that it will fix the problem and allow supply management to continue. Supply management has been working well and this will allow it to continue to work well. As a result of that kind of discussion, many dairy farmers are not aware that change is inevitable. It is important for farmers to acknowledge that, to allow for a reasonable transition period and to move from the present supply management system which will be accommodated under this legislation to a system which will assist them to respond to more competition, particularly through more imports from the United States.
In the discussions the parliamentary secretary to the minister, the minister and even the leaders of some farm groups have said this will help solve an immediate problem but the long term concern is still there because change will come. Many farmers did not get that message. It will mean that the dairy supply managed industry will not have the transition time needed to move from the present system to a system with more competition.
That is my single largest concern surrounding the legislation. The amendment I propose is essential before the bill passes because it will prevent the federal government, once again through its agencies, from interfering in areas of provincial jurisdiction.
I have specific concerns with the bill. I will address those later. My main concern is for the dairy farmers. I am extremely concerned they will not be prepared for the coming changes.
Over the past months I have made trips to different parts of Ontario and I made a point of talking to dairy farmers. This is an area where I feel Reform must do more work. Certainly I need more knowledge in the area. I make a point of talking to dairy farmers about what is going on in their industry. I find from discussing the industry with dairy farmers that different groups of dairy farmers look at the change in different ways.
For example, dairy farmers who are quite close to retirement and maybe plan on farming for five or ten years are asking why the system cannot remain exactly as it is. They do not even want to talk about change. They want us to do everything we can to get the maximum price now and pretend that change is not going to happen. I understand their thinking. Change is intimidating to most people.
These dairy farmers who will only be in business for maybe another five years would do well to keep the system exactly as it is. I understand their concern and acknowledge their view.
Another group of dairy farmers have borrowed a large amount of money to finance quota. They are concerned as we move into a more competitive system. Many are willing to acknowledge it will happen, that change is coming. They do not know whether it will be in five years, ten years, two years or three years. These farmers are concerned because if their quota loses value, which it certainly will when there is more competition allowed into the system, in some cases they will become insolvent. They will not have the equity to back loans. In other cases their retirement, even though it is down the road, is being eroded. This is a concern to them.
Then there are the young farmers coming into the system. Many of them feel they would do well not having to pay for quota at all. That means the competition is not as big a threat to them.
The amendment I have proposed will fix up one of the problems in the bill. It will allow provinces to keep jurisdiction which is rightfully theirs. It does not fix the problems with the change in the industry.
Mammoth changes are coming to the industry. That must be acknowledged. Let us discuss them openly as we discuss this amendment and this bill as it passes through the House.