I welcome this opportunity, Mr. Speaker, to speak on the motion put forward by the hon. member for the Reform Party, who persists in advocating a provision that would allow producers to opt out of the Canadian Wheat Board for two years.
What baffles me, however, is the fact that my hon. colleague still does not understand plain common sense. I recall speaking on this issue in this House on June 19. The hon. member for the Reform Party was probably away on that day. And he obviously does not read Hansard .
For the last time, I sincerely hope that the Reformers will realize that it is not a good idea to allow Canadian wheat and barley producers to opt out for a period of two years. This is not the first time that the Reformers have taken a stand against the Canadian Wheat Board. I talked about this on June 19. This is starting to look like sheer stubbornness.
The Reformers are at such a loss for new issues to make political hay with that they are rehashing an old matter that has already been debated in this House. It was discussed last June. Why are they coming back with this two-year opting-out proposal or provision for western producers? I can understand that the Reformers feel that a general election is coming and realizing that they are not very popular. They are trying to make political hay with this clause.
The Canadian Wheat Board is the institutional embodiment of a marketing system developed to help producers. The pooling of resources through the Canadian Wheat Board ensures that producers receive the same initial payments year round. As for the final payment, it is designed to reflect the value set by the market during a given crop year. This means that the pool price is representative of the price variations.
There is a whole system in place to calculate prices depending on the grain category, thereby easing-fortunately for western produc-
ers-fluctuations, some of which are linked to foreign competition. The hon. members of the third party have short memories. In the 1980s, western grain producers definitely benefited from the Canadian Wheat Board.
After certain pools accumulated huge deficits, the federal government came to the rescue. Now some producers are smelling business opportunities. I realize that some want to market their products themselves, outside the board's jurisdiction, because they want to get more. However, when times become hard again, they will be happy to be part of the Canadian Wheat Board.
In a way, Reformers want to eliminate a system which works relatively well, for the benefit of a small group of western producers. Producers that would elect to take advantage of this opting out provision would be allowed to leave the Canadian Wheat Board for a period of two years. However, after this two-year period, will producers be able to rejoin or, for that matter, will they have to rejoin the Canadian Wheat Board? Who will monitor the process and how? This new system would make it very difficult for the board to fulfill its mandate.
The objective is to stabilize prices and set a median price, in spite of market cycles. Everyone is looking for stability, but the Reformers would turn the whole thing into a big mess. It would indeed be the case, should the Canadian Wheat Board disappear, because western producers would suffer major losses of income. They would no longer have any protection.
As you know, no one can predict the future. Who can say what the supply and demand in a given region of the world will be? The proposal of the hon. member for Wild Rose would undermine the principles of price pooling and risk reduction, while creating a parallel marketing system.
The Reform member and his colleagues will probably insist that they are following up on the producers' request. In my opinion, this is only a small group of producers who are either dissatisfied or who want to make more money. It is tempting for producers located along the Canada-U.S. border to sell their crops directly to the Americans and to get paid immediately.
Indeed, it is very tempting and this is why some producers want to go it alone. However, the wind might turn. Economic conditions, fluctuations and many other factors can, at any time, change the whole situation. Going that route would be tantamount to playing Russian roulette, and the consequences could be just as tragic.
The Canadian Wheat Board must be maintained, because it is a good instrument for western producers. The board has already demonstrated its usefulness. It may not be perfect, but nothing keeps us from improving it. For example, producers could be granted more control over the board's operations, or the board could be given more room to maneuver.
The proposal by the member for Wild Rose would undo many years of work by the industry towards maximizing profits from the sale of wheat. The introduction of a provision allowing producers to opt out of the marketing system for two years would seriously undermine the Canadian Wheat Board.
The board has been in existence for 61 years. Over that period of time there have obviously been many changes and marketing has undergone a considerable transformation. However, the fundamental task continues to be one of selling a quality product and offering clients outstanding service, while maximizing profits for western producers. One thing remains unchanged, and that is that grain marketing is just as risky a venture today as it was in 1935 when the Canadian Wheat Board was set up.
Back then, producers had to contend with price fluctuations caused by World War II, while today's producers, like all their fellow producers, have no influence over world prices.
The Canadian Wheat Board continues to provide producers with a means of managing risk and a system for ensuring equity among grain producers. The approach is the same as that used in other agricultural sectors.
Once again, the motion by the member for Wild Rose must be rejected, and I hope members of the Reform Party will change their minds.
I think it would make more sense if we talked about creating jobs. Has any thought been given to the jobs that could be created with the money that would be saved by abolishing the Senate? I hope that my colleagues in this House are finally going to talk about the real problems, and about job creation. The dignity of thousands of the young and the not so young is at stake.
Many of the inhabitants of my riding are looking for jobs. Many have looked in vain. As recently as yesterday, November 17, one of my constituents said that his unemployment insurance benefits had melted away like snow on a warm day, leaving him with little choice but to go on welfare, although he is in good health and wants to work.
I am sure I am not the only member who hears from people looking for work. This is a situation affecting a good many Quebecers and Canadians.
I trust that we will move on to the topic of jobs in this House in the very near future. In the meantime, I thank you for your attention.