Mr. Speaker, my colleague in our party who spoke earlier very clearly indicated that the wheat board is one of the institutions in the agricultural enterprise that is working solely for farmers. It is sharing with the farm community all the benefits of single desk selling at a fraction of the cost of revenues that are earned by that institution.
The Minister of Agriculture and Agri-Food Canada has explained the main objectives of Bill C-72 and I would like to discuss how we arrived at this legislation.
The Canadian Wheat Board has been serving Canadian farmers efficiently and effectively for over 60 years. During that time it has helped our grain sector build an international reputation for quality and reliability and has realized the best possible returns from the market for Canadian farmers. And as my colleague indicated earlier, shipload and boatload after boatload, the consistency is there and it is well received by those who are doing business with us.
The business environment is changing. We are doing business in an increasingly liberalized and competitive international marketplace. At the same time changing customer demands, reducing subsidization, new applications of biotechnology, booming markets for value added food products and a host of other changes mean that today's grain sector must be more innovative, more
self-reliant and market responsive than it was historically in the past.
In that context, the future of the Canadian Wheat Board has for several years been the subject of a sometimes very intense debate among farmers and other stakeholders in the grain sector, particularly in western Canada. As an aside I might indicate that in my riding of Brandon-Souris there have been court cases for those individuals who feel that they need to challenge the very authority of the Canadian Wheat Board Act and, for that matter, the whole method of marketing grain throughout the world.
The purpose of these amendments to the Canadian Wheat Board Act is to respond to some of the chief concerns that have been raised during that debate and to ensure that the Canadian Wheat Board is well positioned to continue as a reliable, responsive, single desk seller of Canadian wheat in the years ahead.
In preparing this legislation our goal has been to ensure that everyone on all sides of this tough issue has had a full and fair opportunity to have their say.
In 1995 the minister established the Canadian Western Grain Marketing Panel to develop recommendations in consultation with all stakeholders in the grain industry. That panel did an excellent job in fulfilling its mandate and in providing a forum for producers and other stakeholders to discuss the future of the Canadian Wheat Board rationally, openly and transparently on the facts rather than on rhetoric.
It was the most extensive consultation regarding western grain in modern history, one which involved a series of town hall meetings in Manitoba, Saskatchewan and Alberta. It was in this forum that farmers and others gave their perspective on the current marketing system for western Canadian grain. Alternative arrangements were also brought forward.
The panel also held 12 days of hearings in Winnipeg, Regina and Edmonton, during which it heard 69 briefs and an additional 78 submissions from individuals and organizations who did not appear before the panel but made submissions for its information.
Following the publication of the panel's report last July, the minister invited interested parties to forward written responses to those recommendations. After the panel submitted its report last summer the minister further distributed a summary of its recommendations to every farmer in western Canada and invited their feedback.
All in all, from that process, 12,000 individuals and organizations responded. I am confident that the legislative changes we are putting forward today represent the views of the vast majority of western farmers and will address many of the key recommendations of the Western Grain Marketing Panel report.
One way or another we are taking action on all points raised by the panel with regard to wheat board governance. One of the major recommendations of the panel in this area was that the Canadian Wheat Board Act be amended to provide for a change in governance of the Canadian Wheat Board and to provide for greater flexibility in its operations and in the services which it provides to farmers. In fact, of all the recommendations contained in the panel's report, this one received the strongest consensus of support among farmers.
Under this legislation the overall governance of the board will be placed in the hands of a board of directors, most of whom will be farmers. To help ease the transition of the new corporate structure, an interim board of directors will be appointed by the government next year and the intention is that by the beginning of 1998 a majority of the directors will be elected by farmers.
The election of directors will have some fundamental impacts on the operations of the board, mainly because the board will be no longer a crown corporation. As much as possible, however, we have tried to minimize those impacts.
For example, as an agent of Her Majesty, the wheat board's borrowings are automatically guaranteed by the Government of Canada. To minimize changes, the Government of Canada will continue to guarantee the board's borrowings. In addition, the government will continue to guarantee initial payments and the Canadian Wheat Board's credit grain sales.
Nevertheless, there are still implications of moving to an elected board of directors that need to be fully examined. That is why the legislation is permissive in this area. Farmers need to be aware of what they have now and compare it to what they will have with an elected rather than an appointed board so they can make an informed decision regarding their ultimate preference in this particular area.
Another major group of amendments relates to more flexible board operations and improved cash flow. Under these amendments the board will be able to, first, make cash purchases of wheat and barley. Second, it will be able to manage adjustment payments during any crop year on an expedited basis. Third, it will be able to terminate pool accounts at any time and pay out farmers returns as soon as possible. Fourth, it will be able to issue negotiable producers certificates. Fifth, it will be able to defray farmers grain storage and/or carrying costs. Finally, it will be able to fully utilize modern risk management tools in dealing with both farmers and customers. In addition, to allow cash purchases and to help the board manage adjustment payments quickly, the wheat board will be allowed to establish a contingency fund.
It is important to note that these amendments do not constitute the Government of Canada's full response to the concerns of Canadian grain producers and the recommendations of the Western Grain Marketing Panel. We are also pursuing many other avenues to address other issues related to grain marketing and transportation. Last November our government introduced legislation to modernize the Canada Labour Code.
Among other things, these amendments stipulate that while grain handlers and their employees will retain the right to strike and lock-out, in the vent of a work stoppage involving other parties in port related activities, services affecting grain shipments must be maintained.
With the amendments to the Canadian Wheat Board Act and many other changes we are making with regard to grain transportation and marketing, the Government of Canada is demonstrating that it is listening to the concerns of grain producers. It is taking actions to address those concerns and to lay the foundation for continuing growth and prosperity in the grain sector and Canada's rural communities into the next century.
I call on all members of the House to lend their support to this important legislation.