Madam Speaker, I am delighted to rise in the debate on the motion by the member for Kindersley-Lloydminster in this opposition day.
First, we should stress the importance the Reform caucus appears to be giving to the Canadian Wheat Board, since last week there was a full dress debate in this House, a very technical one, however, on the operation and the internal workings of this para-public organization.
We are forced to acknowledge that the spirit of this motion transcends the confusion and incoherence reigning within the Reform Party, which is even hoping to form the government at the time of the next elections. It is rather distressing to see what the Reform members in their efforts to defend the interests of the people in the west. It is a bit like having a member for Quebec or Ontario demanding an end to supply management in the case of eggs, poultry or milk.
The member for Lisgar-Marquette last week tabled a bill to change the internal audit system of the Canadian Wheat Board. Overall this bill was in response to an obvious need for the CWB to be transparent and efficient to the thousands of farmers it represents and who depend primarily on its actions and marketing expertise.
So here we have one of his fellow party members introducing a motion that nullifies the member's commendable efforts to directly help farm producers, who simply swallow the decisions made by the Canadian Wheat Board more often than not.
We are well aware that this organization's basic aim is to promote Canadian wheat in the international marketplace and thus obtain the best possible prices. In these terms, the direct effect of today's motion would be to cause greater damage to producers wanting to make their own way in this jungle of grain speculation, more than it would be to really provide profitable wheat and barley marketing opportunities, as the member for Kindersley-Lloydminster would have us believe.
The motion undoes, after many long and difficult years, the considerable efforts put out by the industry to maximize profits in the sale of Canadian wheat with the simple aim of maintaining production standards. The reforms proposed for the internal operation of the Canadian Wheat Board bear witness to the desire of all interested parties to find a better commercial niche for wheat producers.
I have a question: would it really benefit producers to free up the market so that each of them could go as far as their ambitions would take them? Knowing the vulnerability of this industry personally, and particularly all the factors outside of simple grain production, I can only say that this measure would mean financial suicide for any individual wanting to go it alone.
How can we consider making a special provision whereby producers could choose not to have their crops marketed by the CWB for a two-year period, when this marketing is the board's essential function? How will we explain the return to the collective of farmers who, having tested the market, recognize that the real profits to be made arise from the marketing efforts of the Canadian Wheat Board?
This alternative defies understanding. It would allow producers to compete, to a certain extent, with their colleagues, until such time as they understand that the real financial advantage lies in agricultural and commercial union. Is this morally acceptable? I strongly doubt it.
If we looked for a different image to express the same idea, the first one to come to mind would likely be the parable of the prodigal son, for this situation is rooted in the frustrations of a number of producers operating businesses along the Canada-US border. The temptation to sell their harvest directly to local mills is strong, given the attraction of on-the-spot payment in American dollars.
This practice is completely acceptable in a period of prosperity and economic growth. But what would become of this mercenary attitude if, overnight, the price of wheat fell dramatically?
It is important to remember that this situation is entirely plausible and that one of the reasons the Canadian Wheat Board was created was to play a stabilizing role. The Canadian Wheat Board's monopoly on the sale of wheat creates a significant balance for producers, who can thus count on an income that is constant and independent of market fluctuations.
During prosperous periods, it is legitimate to question the relevance and benefit of remaining within an organization governing all areas of production, which, to make matters worse, do not correspond to current modern practice. However, it is becoming essential to take a much more moderate, and often much less dramatic, approach to the issue. And, while we are on the topic, I would like to reiterate my scepticism regarding the rationality of such an initiative. The financial security of many grain producers is involved, without mentioning the impacts that will result from the coming passage of Bill C-38 on mediation in the case of farm debt. We will see a tightening of conditions of eligibility for government support in cases of debt. We should not mistakenly plunge farmers into a situation that could drive them to bankruptcy.
For the benefit of farmers and members of the public in Quebec, I would like to give a brief overview of the Canadian Wheat Board, because it has authority over four provinces only, three in their entirety and one partially.
Grain producers in Manitoba, Saskatchewan, Alberta and some parts of British Columbia are affected and governed by the Canadian Wheat Board.
The board exports 23 per cent of all world exports. 23 per cent of world exports of wheat and barley are governed and exported by the Canadian Wheat Board and have passed through its hands. It is the granary of the world.
The objectives of the Canadian Wheat Board are important and are comparable to those of the Canadian Dairy Commission, which is well known to everyone in Quebec. It is the Canadian Dairy Commission which is responsible for marketing and buying all the industrial milk produced in Quebec, which represents 47.4 per cent of Canada's total production.
The primary purpose of the Canadian Wheat Board is therefore to maximize the revenues of 130,000 grain producers, whose harvest it sells.
The Canadian Wheat Board obviously needs certain powers, and is, for example, the sole marketing agency for wheat and barley destined for export or for human consumption. Clearly, this means that each bushel of wheat Canada exports must go through the CWB. Bushels of wheat destined for human consumption in Canada must go through the CWB. Therefore, wheat and barley that will be fed to animals, for example, is not governed by the Board.
Sales, to put this in context, vary between 3 and 6 billion dollars annually, so the Board is an important economic power.
The Board's composition upsets me a bit, because of the notorious political appointments. You know how these go. Members of the board of referees of your local CEC, or members of the unemployment insurance office, now the employment insurance office, are political appointees. Usually they are good friends of the regime. The Board is composed of a chairman, a vice-chairman and three commissioners appointed by the government through an order in council.