Mr. Speaker, the hon. gentleman's preface made reference to the implications of world trade agreements with respect to Canadian dairy policy. While there are some implications of world trade agreements for Canadian dairy policy, the particular connection that he draws in terms of the dairy subsidy is not a connection at all.
The reductions in the dairy subsidy that have been announced are taking place over a seven-year period, two years of which have already gone by and five years of which are yet to come. We consulted with the dairy industry very closely in terms of the best possible way in which to manage the issue. The phase down approach we have adopted is quite consistent with the advice we received.
As the dairy industry deals with the reductions in subsidies I am hopeful there will be good co-operation between the producers and the processors in terms of how pricing issues and a variety of other issues are handled within the framework of a long term dairy policy.