Mr. Speaker and hon. members of the House of Commons, I am pleased to have the opportunity to speak on this group of motions with respect to Bill C-4.
Even though I am not a western producer or a member of Parliament from western Canada, I am a producer from Ontario. I did have the privilege of travelling with the committee when we had hearings out west regarding the Canadian Wheat Board.
The motion in this group proposes a number of alternatives with respect to the governance of the Canadian Wheat Board. Under Bill C-4, a 15 member board of directors would be created with 10 directors elected by the producers, four directors appointed by the governor in council and the president and CEO appointed by the governor in council. The governor in council would appoint the president based on the minister's recommendation after the minister consulted with the rest of the board of directors.
The intention of this legislation is to put the decision making power into the hands of the producers and I certainly attest to that. However, the federal government does have substantial interests at stake.
It will continue to provide the Canadian Wheat Board with substantial financial guarantees. That is taxpayers' money. It will guarantee the initial payments. It will guarantee sales made under the credit grain sales program. It will continue to guarantee the Canadian Wheat Board's $5 billion to $6 billion in day to day borrowings.
The Canadian Wheat Board will also continue to perform public policy functions such as issuing export licences. For this reason the government must maintain a direct role by appointing the president as well as a minority of members of the board of directors.
Let me emphasize that the government realizes the importance of a CWB which is accountable to the producers.
Bill C-4 already specifies that the board of directors with a two-thirds majority elected by farmers would set the remuneration of the president. The legislation also makes it clear that the minister cannot appoint a president without first consulting with the board. The board will be able to review the president's performance and recommend his or her dismissal if board members feel that performance is inadequate.
Bill C-4 reserves the final decision concerning dismissal of the president for the governor in council. However it is clear that the board of directors would have several means for making its displeasure known and it is difficult to see how a president could continue in office without the support of the board.
In short, the government's power to appoint and dismiss does not take away the board's influence over the CEO.
There is another reason for having the government make some appointments to the board. It is in keeping with good corporate practice that some outside directors should have corporate experience in areas such as management, finance and marketing. This can be accomplished by having the governor in council appoint a minority of the directors. It is important to realize that all directors whether elected or appointed have equal status and the same responsibilities and duties.
One can understand the desire to have candidate expenditure limits on elections for the board of directors and to set out more specifics in regard to the voting rules. However these are items which would more properly be handled through the regulations, not legislation. Enshrining these points in legislation would mean that the issue would come back to Parliament each time a modification was required, such as increasing candidate expenditure limits. Regulations can be updated and changed to meet current circumstances with much greater ease.
At this time I would like to bring to the attention of the House a few questions which have been brought constantly to the attention of the committee, whether when the committee was sitting in Ottawa or whether when the committee was travelling out west.
One of the questions that was most frequently asked was: Will the Canadian Wheat Board become more accountable to farmers? The answer is yes. For the first time in history the Canadian Wheat Board will be run by a board of directors. There will be 15 directors in total.
The farmers will take control over their marketing agency by directly electing 10 of their directors, a two-thirds majority. The elected directors will reflect the views of farmers and Canadian Wheat Board decision making will be where it should be. They will be expected to demonstrate accountability to producers. Ultimately if the producers are not satisfied with what the Canadian Wheat Board is doing, they can change the directors in subsequent elections.
Another question which was frequently posed was: Will the directors have complete access to all Canadian Wheat Board information? Here again the answer is yes. All directors will be entitled to complete disclosure of all Canadian Wheat Board facts and figures, including but not limited to fully audited financial statements. They will be able to examine the prices at which grain is sold, the price premiums achieved, all operating costs and whether the Canadian Wheat Board is running efficiently.
With their full knowledge of the Canadian Wheat Board and its global competition, the directors would be in the best position to assess information that should be made public or that for commercial reasons should remain confidential.
Bill C-4 would empower farmers with more say in future decisions over their marketing system and provide a mechanism through which producers can implement many different marketing innovations. That is important to note. I repeat that it would empower farmers with more say in future decisions over their marketing system and provide the farmers, not bureaucrats, with a mechanism through which producers can implement many different marketing innovations.
Unfortunately, the amendments in this group will not contribute to this objective and therefore cannot receive the government's support.