Mr. Speaker, I would like to congratulate you on your appointment to the Chair. I have watched over the past eight years and have seen how well you follow parliamentary procedure and how good you are in that area. I know that you will be a bonus to the House and that you will administer your job in an extremely good manner. Congratulations.
The motion before us is to delete clause 31 of the agricultural marketing programs bill. The deletion of clause 31 in effect deletes part III which deals with the government purchases program. This part provides the authority that is currently contained in the Agricultural Products Board Act. The only amendment being made to that act is the removal of the board to administer the act.
The government purchases program gives the government the flexibility to deal with special purchases, but only with governor in council approval. Authority of this nature is not available in other pieces of legislation. The authority would cover the following:
To sell Canadian grown agricultural products to other governments or government agencies. This authority is very important when making trade deals with countries that are not comfortable in dealing with private industry within another country. Such marketing opportunities will be lost without this flexibility. The deletion of this authority will eliminate sales made to central planned economies and other countries where for various reasons the intergovernmental sales are required. For example, in 1990 and 1991, $16.5 million of pork was sold to the USSR under this act.
To remove the surplus product from a depressed market generally caused by unusually large production, to be sold back into the market at a later date when market stability has returned. For example in 1993 due to unusual weather conditions a large surplus of juice apples were processed into apple concentrate and sold into a different market through this act, allowing the apple juice market to stabilize.
To provide emergency food aid to countries not named under the Canadian International Development Act. The act was used for this purpose as recently as 1990-91 and again in 1991-92.
Under the act the government cannot sell the product for a lower price than the purchase price plus costs, without the approval of governor in council. Since there is no such budget attached to this part of the act, ministers through GIC approval would have to approve any funds for this part.
The major changes and liberalizations in international and domestic trade still leave a need for programs of this nature to facilitate international transactions and to help stabilize domestic markets where unusual conditions exist. Therefore it is the recommendation of myself and the government to defeat this motion.
With regard to the motion to delete clause 36, this clause describes the penalties that result from failure to provide information under the government purchases program. For the proper administration of this program, it is essential that the government be provided with sufficient accurate information to be able to determine the need to use this program in any particular circumstance. This clause is essential to ensure the provision of this information.
Clause 36 is linked to clause 31. The arguments for keeping clause 31 apply equally to the retention of this clause. It is therefore the recommendation of the government to defeat the motion.
I want to correct a point that was made by my hon. colleague across the way when he introduced his motion. It was on the emergency funding of $25,000. That emergency funding would be rolled into the $50,000 under the present act and would well support any emergency dollars, plus give the benefit that is equal under the act consistent to all farmers in the country. I think a very great misinterpretation has been given to that aspect of the act. Quite frankly, I am not clear why the member did that.