Mr. Speaker, I find very interesting the position that the Reform Party has taken over whether an elected person from this House can speak about the western grain situation. I wonder if they would take the very same position if we talked about the auto pact, that no one from the west should be able to speak about the auto pact or no one from the west should be able to talk about other factors that affect this nation.
There is absolutely no question that Ontario produces a tremendous amount of grain. In my riding I would suggest to you that that grain is produced and the certificates from that grain have to be confirmed by the Canadian Wheat Board. The Canadian Wheat Board, without question, has a tremendous effect on the grain farmers in Ontario.
The new law now before Parliament is based on many months of consultation with farmers, including public hearings across the prairies. This proposed legislation embodies the biggest changes in western grain marketing in a half century. Throughout its history, the Canadian Wheat Board has been governed by a small group of commissioners appointed by the government and legally responsible only to the government. But in today's dynamic change in this marketplace the producers will have a clear voice in what will be happening. The producers will be accountable and the sales will be accountable to the producers.
Under the new law, it is the first time the Canadian Wheat Board will be run by a board of directors. There will be 15 directors in total and two-thirds of them, 10 of the 15 directors, will be directly elected by prairie farmers. They will take office at the earliest possible date in 1998 once the new law is passed by Parliament.
All the powers of the Canadian Wheat Board will be in the hands of the directors and because two-thirds of them will be elected, they will be directly accountable to producers for how they manage the Canadian Wheat Board's business.
In addition to the power to run the affairs of the Canadian Wheat Board, the directors will have specific authority to select their own chairperson; to set the salaries of directors, the chairperson and president; to review the performance of the president and to recommend his or her dismissal, if necessary.
To ensure farmers are getting value for their money, the directors will be legally entitled to have full disclosure of all facts and figures by the Canadian Wheat Board operations, including all financial audited statements. The directors will be able to examine the prices at which grain is sold, the price premiums achieved, all operating costs, and whether the wheat board is truly efficient.
Through these elected directors the Canadian Wheat Board will gain practical expertise in the real producers. If the directors are not satisfied with how the Canadian Wheat Board deals with the farmers or its sales strategy or the way it does business, they can make the necessary changes.
The new law will require the directors and officers of the Canadian Wheat Board to act honestly and in good faith, exercising all reasonable care and diligence. If they fail their duty, they will be exposed and have legal consequences.
Despite the structural changes, the Government of Canada will continue to provide the Canadian Wheat Board with financial guarantees. They will cover not only the initial payments set at the beginning of each pooling period and the Canadian Wheat Board's credit sales program but also all of the general borrowings. Since the Canadian Wheat Board is a multibillion dollar enterprise, the amount outstanding under these guarantees is very large.
For this reason, there is continuing need for the government to have a window on the Canadian Wheat Board in addition to the new accountability directly to farmers.
Such a window is also necessary because the Canadian exporter of wheat and barley, whether on the prairies or elsewhere, requires a Canadian Wheat Board export permit. This safeguarding of public interest will be achieved by the government appointing a minority of directors, five in total.
All of the directors, whether elected, the ten or five who are appointed, will have the same powers, duties and functions. The farmers will hold two thirds of that majority. The new law will put farmers in the driver's seat when it comes to any future changes in the Canadian Wheat Board.
If farmers want to remove some type of grain from the Canadian Wheat Board's current single desk system, that can be done subject to three conditions. The directors must make it a recommendation, the Canadian Grain Commission must approve an identity preservation system to protect the quality standards and, if proposed exclusion is significant to all the farmers, the farmers must vote for that approval.
If farmers want to add votes, rye, flax, canola to the Canadian Wheat Board's existing mandate, that too can be done subject to three conditions. The farm organization that represents the producers of that commodity must make a written request, the Canadian Wheat Board's directors must recommend it and there must be a vote among the farmers to approve it.
These new provisions are balanced and fair in both ways for either exclusions or inclusions. In either case, the authority is where it belongs, in the hands of themselves.
The Canadian Wheat Board is going to be more flexible. It will give to farmers more options in how they are paid and how their grain is moved through the system. It will make cash purchases of wheat and barley, increase initial payments quickly whenever market conditions warrant, close and pay out pool accounts at any time, provide an early pool and cash out option, fully use modern risk management tools, issue negotiable producer certificates, offset producers' grain storage and/or carrying costs, facilitate deliveries on condos' storage systems and receive grain through on-farm mobile elevators.
The Canadian Wheat Board is a very effective marketer of Canadian grain. It has the support of the majority of western farmers. They want realistic and sensible Canadian Wheat Board changes but they do not want a scenario that would lead inevitably to the board's destruction.
Just how valuable overall has the scheme of things been? It sells some $5 billion of grain per year at marketing costs of a few pennies per bushel. It retains no profit margin. All the rest goes to farmers. It is one of Canada's most significant business enterprises, doing business in more than 70 countries around the world.
It is our fifth largest exporter and our largest net earner for foreign exchange. It has earned, for itself and Canada, a positive reputation in the eyes of global customers. It is very important to the Canadian economy.
The board targets to extract maximum premiums but very important, the quality, cleanliness and consistency and our technical support are long-term, dependable, for the customer, the consumer from which we sell grain.
The Canadian Wheat Board has been rated as number one in the world.
These characteristics, coupled with the size of the board, its global reach and the market clout, result in Canada having roughly 20% of the share of the world market. The Government of Canada believes that it is worth preserving.
I am very pleased with the principles put forth in the bill. I am certain it will enhance our grain sales in the future.