Mr. Speaker, I do not know why you should be so lucky or have the luck of the draw to be able to listen to my pearls of wisdom on this bill, but it seems you are always in the House when I get up to speak. Congratulations, Mr. Speaker.
I am extremely disappointed with the motion passed earlier today effectively stopping the democratic voice of not only parliamentarians but the numbers of producers this legislation will affect.
When I came to this House a raw rookie not that many months ago I expected that I would have the opportunity to put forward the views of not only my constituents but constituents who are affected by this legislation. Now I find that the government has decided that the voices of parliamentarians should not be heard and that the voices of western Canadian producers should not be heard. It seems there is an obvious move afoot to have a piece of legislation put through this House without forethought and, quite frankly, the understanding as to how the clauses in this legislation will affect those very producers we represent.
I have put forward an amendment in Group No. 6. Before I go through the amendment, I would like to say that there are a number of excellent amendments that have been put forward to the House but unfortunately they are not being listened to by the drafters of that legislation, the government of this country. In fact, if the government would listen, if it would understand the need for these amendments, I am sure it would appreciate that they should be implemented into this legislation.
On Group No. 6, I have put forward an amendment. I will read the amendment. It states that the corporation may enter into agreements with a producer at the beginning of the crop year authorizing the producer to market independently of the corporation a specified percentage of the wheat or barley produced by that producer in one crop year.
That speaks to options. It speaks to choice. I would like to emphatically state at this point that we are not opposed to the Canadian Wheat Board. That is not what the speakers before me or after me have said. I believe sincerely that the Canadian Wheat Board can compete effectively with other competition that is now in the marketplace.
As examples of that I put up the deregulation of utilities which has happened across this great country of ours in the past numbers of months, the deregulation of gas utilities, the deregulation of telephone utilities. I will give a brief glimpse into the future, the deregulation of hydro or the electricity industry that is going to come to this country. Those corporations did not wither and blow away into the wind. They worked harder to compete for the customer they were serving and have done so in a very efficient manner. It has produced efficiencies for the consumer or in this case it would produce efficiencies for the producer.
That is all we are saying. They can and should compete on the open market. The Canadian Wheat Board in my conservations with it will not even consider this particular tenet of what it should be looking at for the next number of years. Its head is stuck firmly in the sand and firmly with a monopoly situation. It is not going to happen.
With international trade, with the fact that the producers are not going to accept this piece of legislation, they are not going to be satisfied with what is put forward, there is still going to be substantial opposition to this legislation and to the Canadian Wheat Board.
Please, if there is one thing I can plead with the government and with the Canadian Wheat Board, it is put into place now what is necessary for the next year, two years or three years to make choices and options available.
My motion speaks specifically to that. It is a nice little segue into what is going to happen into the future. Let producers have a particular percentage of their product they can now sell on the open market on a cash basis, on a hedge basis, can go to the Chicago exchange and can hedge the type of cashflow they require in order to run their operations. A number of the amendments in this group speak to that very thing which does speak to choice.
Not all the producers, and I accept that, necessarily want to have that choice. But what they would have is the ability still to go to the Canadian Wheat Board under the pillars they are still guaranteed under the Canadian Wheat Board. They then could pool their grain. They could get their initial payments the way they would like to and plan their future in their farming businesses from year to year.
Quite frankly, when it happened in the other utilities a number of those customers stayed with the original utility because there was loyalty, because they wanted to, because it was convenient, because it was simple. If those are the reasons why producers wish to remain with the Canadian Wheat Board, so be it, and let the Canadian Wheat Board compete on that basis.
By the way, I would suggest at that time that the Canadian Wheat Board be able to compete on other commodities, not simply barley and wheat. Let it openly compete with the other commodities at that time, the canola, the flax, the rye and the oats. That is fair. Fair competition is fair for everybody. Let it have that ability. Do not simply have a monopoly for two crops.
The motion put forward by the Reform Party speaks basically to the same amendment I have put forward, perhaps a bit more detailed. It does speak to certain percentages of hedging available to it but in essence what we are simply saying is please allow for the options to be made to the producer.
I would like to speak to NDP Motion No. 39. This motion is to delete the one clause I suppose that gives a little opportunity to producers in this piece of legislation, the cash purchases. Cash purchases have been in place for quite a substantial amount of time, have been used for barley in the past and have been very successful.
I would like to mention a couple of points with respect to my motion once again. There are countless examples of how marketing outside of a monopoly is good for economic efficiency. In the November 13 issue of the Western Producer , the Canadian Wheat Board's chief commissioner, Mr. Lorne Hehn, said: “The growing domestic feed demand and increasing production of malting quality barley probably means that within five to ten years there will not be enough surplus feed barley to operate a predictable export program under the Canadian Wheat Board”.
What is that saying? What it says is that barley is not even going to be needed to be marketed under the Canadian Wheat Board in five to ten years. By the way, I take exception to the five to ten years. I think it will be sooner than that. If Mr. Hehn thinks it is five to ten, he is again sadly mistaken in his forecasting for the Canadian Wheat Board. It is sooner than that. No longer will barley be required to be marketed under the board because there will not be any need to market barley. It is going to be used domestically and only here in Canada for feed.
In March 1996 there was a study on the economics of single desk selling of western Canadian grains by two Ph.D ag-economists, Mr. Carter and Mr. Lyons. They state that a driving force for much of the Canadian Wheat Board activity is equity in treatment of producers rather than economic efficiency among producers. This is self-explanatory.
When oats and barley were removed from the Canadian Wheat Board jurisdiction, the volume of barley and oats exports to the United States increased dramatically. Is this merely a fluke or a strong sign of the Canadian Wheat Board's inefficient marketing practices? Make the choice. If someone wants to market through the board they can. If they want to market on the open market they should be able to.
The truth is that following the removal of oats from the Canadian Wheat Board in 1989 farm gate prices for oats have risen relative to world market levels and marketing costs have fallen by about one-third. When oats were taken off the Canadian Wheat Board prices went up. People still market it through the private sector and their marketing costs have reduced.
I have talked to the people who grow this. I have talked to the people who have oats. They say they would not want to go back into that system.
The motion put forward by me with respect to some options, fairness and choice has to be listened to by this government because that is what the producers are saying. If they do not get it in this legislation they will get it in the next legislation that will be coming not too far in the distant future.
I do hope some of the amendments are listened to honestly, logically and openly by the government.