House of Commons Hansard #116 of the 35th Parliament, 2nd Session. (The original version is on Parliament's site.) The word of the day was billion.

Topics

Excise Tax ActAdjournment Proceedings

6:55 p.m.

Bloc

Jean-Guy Chrétien Bloc Frontenac, QC

Mr. Speaker, last week I questioned the Minister of Agriculture about the Pest Management Regulatory Agency, or PMRA. This agency is being created from services in three departments: Health, Agriculture and Environment.

The Minister of Agriculture and Agri-Food, or his colleague at Health Canada, wants to recover 60 per cent of the costs from the sales of pesticides. Our American neighbours only recover 15 per cent of the costs, which means that Canadian companies will move to the United States to develop their products in that country or that farmers will buy their chemicals directly in the United States, because they will cheaper there, probably much cheaper. With such a cost recovery level, the price of herbicides, insecticides and fungicides is going to increase dramatically.

Let us now look at the services provided by the PMRA. Il will test product safety and also product effectiveness. Companies already test the effectiveness of their products, but the government wants to redo the testing. The results must show an 80 per cent effectiveness over two crop seasons. This type of test was not carried out before, but the government now claims that it will improve public safety. Does it mean that the public is not safe at the present time?

Farmers believe that it is up to the market to determine whether a given product is effective or not.

If a product is known to be ineffective, it will be quickly eliminated from that market because of a lack of consumers. The PMRA also wants to reassess every two to five years all the products that it has already certified and not only those that require certification. Thus, the PMRA will do costly audits that are not really necessary. Producers never asked for such measures and these will entail major costs for the agency.

Moreover, this 60 per cent cost recovery will be difficult to apply to industries that develop low volume consumers' products. Consequently, my estimation is that between 21 and 30 per cent of products used in pest management will no longer be available to agricultural producers if the PMRA goes ahead as expected with its cost recovery policy, that is, 60 per cent of the costs.

I just outlined very briefly the most important elements of the PMRA issue, particularly as it pertains to cost recovery. Thus, in light of all the available data, the PMRA will function less quickly than its American counterpart. It will cost more, will be less efficient, will perform more audits than necessary and there will be less products available on the market. Thus, there may be job losses and our producers will be less competitive.

For the sake of fairness for agricultural producers in Canada and Quebec, I challenge the government, particularly the ministers of health, environment and agriculture, to review the way the agency recovers costs associated with the certification of pest control products.

Excise Tax ActAdjournment Proceedings

7 p.m.

Eglinton—Lawrence Ontario

Liberal

Joe Volpe LiberalParliamentary Secretary to Minister of Health

Mr. Speaker, the government made the commitment to reform the pest management regulatory system to make it more responsive to stakeholder needs while at the same time protecting the health and environment of Canadians. We are doing so.

The fact that cost recovery would be used to implement the reformed program was agreed to by the industry and farmers as long ago as 1990.

I want to inform the member that although the United States system appears to cost less, this is quite frankly not the case. All states, except Alaska, charge fees on top of the federal fees charged.

California alone for example recovers about $27 million based on $1.2 billion in pesticide sales. In contrast, the PMRA plans to charge $15.3 million for $1.4 billion in pesticide sales. That is almost half as much or put differently, there is $1 for every $93 of sales in Canada as opposed to $1 for every $44.50 worth of sales in California.

The member will be pleased to know that the cost of the reformed pest management regulatory system in Canada is very competitive with the costs of other countries such as the United States and Britain. The Canadian cost per registered product is 15 per cent less than in the United States and 30 per cent less than in the United Kingdom.

The member should be aware of the own use import program. This program allows farmers to import products for their own use when they consider the registered products on the Canadian market to be uncompetitively priced by manufacturers.

We are putting in place an efficient regulatory system to serve the needs of all Canadians wherever they reside in Canada.

Excise Tax ActAdjournment Proceedings

7 p.m.

The Deputy Speaker

The motion to adjourn the House is now deemed to have been accepted. Accordingly, the House stands adjourned until tomorrow at 10 a.m.

(The House adjourned at 7.05 p.m.)