Mr. Speaker, I am pleased to speak on behalf of Bill C-4.
The amendments contained in Bill C-4 are based on nearly three years of extensive consultation and discussion with western grain farmers to determine what kind of grain marketing organization they want. Western Canadian grain farmers have asked to retain the Canadian Wheat Board but they also want a more democratic, accountable and responsive Canadian Wheat Board, one that is truly in their hands, allowing them to shape the Canadian Wheat Board to meet their needs.
That is what the proposed changes in Bill C-4 actually provide for. The proposed changes in Bill C-4 would put more power into the hands of producers than they have ever had before throughout the Canadian Wheat Board's 63 year history.
The proposed changes would modernize the governance of the CWB. They would improve the accountability to the producers and through the creation of a producer elected majority board of directors and, most important, the marketing changes proposed in Bill C-4 are enabling. They would give the farmers the tools and the power necessary to shape the CWB's marketing structure to fit their present and their future needs.
I would like to address some of the questions that have been raised to clear up some of the misconceptions that have arisen around Bill C-4 and its proposed amendments to the CWB act.
Some farmers have asked if they would have more control under the new system of CWB governance. The answer is yes. The 15 member board of directors would be comprised of 10 producer elected directors and 5 federal appointees. In essence the farmer elected directors would enjoy a two to one majority on this board. Directors would have effective control of the strategic direction of the new CWB and would be able to reflect the views and the needs of farmers in future operational and marketing decisions.
These elected directors would not be subject to dismissal by the Minister responsible for the Canadian Wheat Board. Only those who elected them would be able to accomplish this through a subsequent election.
Under Bill C-4 all directors would be entitled to complete disclosure of all CWB facts and figures, bar none. That is transparency. They would be able to examine the prices at which grain is sold and the premiums achieved and all the operating costs and whether the CWB is operating effectively. With their full knowledge of the CWB and its global competition the directors would be in the best position to assess what information should be made public and what for commercial reasons should remain confidential.
So why is the board of directors not 100% producer elected? That was another question asked. Under the proposed legislation the government would continue to maintain a substantial financial commitment to the CWB. The government would continue to guarantee the CWB's initial payments, its borrowing and its credit sales made under the credit grain sales program.
This represents a strong case for the government's having a role in appointing some of the members of the board of directors. In addition, the CWB has the public policy responsibilities. For example, the CWB is charged with issuing all wheat and barley export licences for all of Canada, not just the prairies.
I have heard the question why is the CWB not legally obliged to get the best price for farmers' grain. The CWB does seek to obtain the best prices possible. In fact, it is a matter of policy.
However, making this the corporation's legal objective would be difficult because the CWB seeks to obtain the best price for producers jointly through pool accounts. It is not always possible to show, after the fact, if higher returns could have been realized for individual producers because a different set of marketing decisions may have been made. Therefore, to make the CWB legally responsible to achieve the best price for individual farmers would result in countless legal challenges being made to the board's marketing decisions. It would sort of be like dealing with it by 20:20 hindsight.
Looking to the future, the board of directors would be responsible for ensuring that the sales programs would be well managed and that the CWB operated in the best interests of the producers. This would be preferable to taking a legalistic approach.
Why does the CWB need to establish a contingency fund? What would this money be used for? These are more questions which have been asked.
A contingency fund would be developed in order for the CWB to make adjustments to the initial payments during the crop year on its own authority, without the delays involved in getting government approval, to provide for potential losses in cash trading operations and to provide for an early pool cash-out.
The contingency fund would provide the CWB with the ability to adjust the initial payments and to get money into the farmers' hands more quickly. I am a farmer. I know how important that last statement is.
Given the history of adjusted initial payments the related risk would be minimal. It would be less than the related benefits to farmers. It would be up to the board of directors, with its two-thirds producer elected majority, to determine if, when and how the contingency fund should be created. How it is set up will be the responsibility of the board.
Why can the Auditor General of Canada not examine the CWB's books? The CWB currently retains an independent firm of chartered accountants to audit its operations. Through its pool accounts the CWB is managing farmers' money, not government appropriations. Therefore it has always made sense that a private sector auditor, rather than the auditor general, audit the CWB's books.
Under Bill C-4 the CWB would cease to be an agent of Her Majesty and a crown corporation. It would become a mixed enterprise. This would reduce even further the justification for involving the office of the auditor general.
Finally, some of the private sector users of financial reports take comfort in the fact that private sector auditors, unlike the auditor general, are liable under the law for negligence and other professional misconduct.
The proposed changes in Bill C-4 are balance and fair. The government realizes that the changes contained in Bill C-4 cannot hope to satisfy all parties. I think we have all heard that in the House today in what has been a polarized debate among representatives of the western grain producers.
The government, nonetheless, feels that the proposed changes to the CWB would equip farmers with the tools and the power to shape the CWB as they see fit so that it can meet the needs of the farmers of today and the farmers of the future.