I use the term loosely. That is absolutely right.
My colleague from Saskatoon-Dundurn has indicated on numerous occasions that Reformers were not in the House on that particular Sunday to vote. Whether or not that is the truth is irrelevant. Less than a week before that, we had put before this House private members' legislation that would have prevented this. There would have been no need for anyone to be here on that Sunday. It is ludicrous. It is a ridiculous argument and I am ashamed that someone would bring that up before this House.
I want to get to the business before the House today, Bill C-92, an act to amend the Canadian Wheat Board Act. It aims to change the pooling system of the Canadian Wheat Board in order to respond to new market conditions.
Rapidly changing market conditions is the greatest factor affecting the agricultural sector today. There is no question about that. The reality is we live in a modern knowledge based, technologically equipped and economically linked world. This presents many new opportunities for farmers and agri-businesses. It presents opportunities for policy makers and legislators. It presents opportunities for grain companies, farm groups and transportation companies as well. Coupled with the rapidly changing new world of markets, there are two other factors.
The agriculture industry is unique in that we produce a basic and unchanging product for which there will always be a demand, that is food. With a growing world population that is expected to reach 10 billion people by the year 2050, the demand for our products will expand tremendously. This commodity of food that we produce is essential to the life and health of all of us. Our daily bread is the most basic need we have. We have a product for which there will always be a market.
The agriculture industry therefore is a primary resource industry in full transition attempting to keep up with an expanding market and hoping to take full advantage of the opportunities that it presents. We have a good product and we have a market. We must adjust to and take full advantage of these new opportunities. We must be prepared to do this quickly. We must learn to anticipate what the future holds for us and seek to prepare ourselves for it.
All of the stakeholders, the farmers, the processors, the transporters, the marketers, the policy makers, must work in a co-operative way to ensure that we make the transition from the old realities to the new realities in as an effective and efficient way as is humanly possible.
I am pleased this bill is before us today. It is essentially tabled as a response to an expanding and changing market. We will no doubt get into the details of this bill but basically the bill is in response to the fact that our grain products are moving to new markets. When this happens, we need to change our system and our policies in order to respond to those new markets.
More specifically, this bill responds to the fact that in recent times our grain has become more in demand in the Pacific rim countries; more is therefore having to be transported across the Pacific instead of the Atlantic. This change in international market patterns has a direct effect upon our internal shipping ports and our internal transportation system.
Historically western Canadian grain producers have shared some of the costs of shipping grain to our ports. We call this a pooling system. It was established as a simple attempt to distribute the benefits and the costs of our grain industry as equally as possible among all the producers. I want to comment on this principle of benefit and cost sharing in a moment but first, let me speak briefly about the changes in our current pooling system that the new world of markets is causing.
The ports western grain farmers have traditionally used for overseas shipments are Vancouver and Thunder Bay. This is because the world market value of grain in store at these two locations, one going east and the other going west, was effectively the very same. The market demand on the other side of both oceans was about equal, but with larger markets emerging on the other side of the Pacific Ocean, the world market value of grain in Vancouver has increased beyond that which is in Thunder Bay.
To adjust to this new market reality and to keep our grain pooling system intact and fair, it is necessary to move the eastern point of departure from Thunder Bay to ports further east, those along the lower St. Lawrence River. In practical terms, this means that the farmers in Manitoba and eastern Saskatchewan who ship their grain east to an export position at Thunder Bay will now have to absorb the cost of getting their grain to the further eastern ports along the lower St. Lawrence.
For years now farmers in the western prairies have seen the use of Thunder Bay as the Canadian Wheat Board's eastern point
of departure for export sales as adding unfairly to their share of the cost of pooling. Farmers in the eastern part of the prairies have recognized this. In other words, it has been apparent that there was some anomaly and some unfairness in the pooling system.
Eastern prairie farmers under Bill C-92 will now have to pay the higher costs of the movement of their grain to the further eastern ports. They have asked for transition assistance to offset these higher costs. The government announced that partial compensation will be provided to these farmers from the $300 million WGTA adjustment fund. It is meant to facilitate the transition to a deregulated system after August 1, 1995.
There are many specifics to be worked out regarding the changes in the pooling points proposed by the bill. My colleagues and I will be commenting on the specifics of those throughout committee debate, report stage and third reading debate.
How do we as farmers best respond to the changing marketplace? This has to be the basic question. Our markets are changing. Our systems that we set up to deal with old markets must be examined to see if they are adequate to take full advantage of the new markets. Are they helping or are they hindering farmers?
My colleagues and I maintain that when there are such dramatic and far reaching changes at the middle and end points of the industry process, we must go right back to the beginning of the process and examine the principles upon which we are building. This is the area of discussion that presents the most difficulty for large and old organizations such as government and government agencies. The Canadian Wheat Board definitely falls into that category.
Old governments, old parties, old agencies and institutions have difficulty with change. Large and old enterprises can become very inflexible. They take a long time to change, if they can ever change at all. Sometimes it is easier for an old institution to die rather than to change and to be reformed.
In the process of governing a country or managing a grain marketing process, that is why new parties and new institutions arise. If the older parties and institutions cannot change or are unwilling to change, if they are unwilling to re-examine themselves to see if they are doing things the best way, then they will be replaced by new enterprises and new ways of doing things. This has happened throughout the history of government in this country and in other institutions, as surely as day follows night and a new century follows an old one.
Reformers are saying that in order to meet the market challenges of a new world and a 21st century, we must talk about the underlying principles. There are two principles we believe should be the foundation for any changes that we make in our marketing and transportation systems.
Reformers believe that producer organizations, including marketing boards, commissions and co-operatives, should receive their direction from producers who should structure their organizations in any manner which they believe will best serve their interests. In consultation with producers, Reformers will seek to provide for a viable, self-reliant and market driven industry to create an environment in which producers make their own decisions as to how products are marketed.
Specifically this principle means there needs to be some changes to the Canadian Wheat Board. If we are to take full advantage of the new markets, if we are to adjust quickly to them, then we need to, we have to, it is imperative to allow for the democratization of the Canadian Wheat Board.
The present government appointment of Canadian Wheat Board commissioners must be changed to an elected board of directors chosen by producers in a fair and open election process. It is simply the only way we will move from these old dying institutions I talked about a few minutes ago to a new reformed system that is responsive to farmers, to transportation, to the markets and to the new way of doing things. At that point in time, grain producers will be asked to examine their organizational and jurisdictional options, including but not limited to introducing domestic market competition, permitting the Canadian Wheat Board to trade in grains and oilseeds currently excluded from its jurisdiction.
I can think of examples in my own riding. There is a small private flour mill. I was in to see the gentleman at Viscount about three months ago and asked him how his business was. He said it was terrible. He said he had to pay a buy back fee to the Canadian Wheat Board to buy wheat so he can make flour and sell it locally. He is not allowed to go to a neighbour or a friend to contract wheat on an individual basis. It is simply not allowed.