Mr. Speaker, it is a pleasure for me to rise again today at this time to address Bill C-26, an act to amend the Canada Grain Act and the Agriculture and Agri-Food Administrative Monetary Penalties Act and to repeal the Grain Futures Act.
Before I get into exactly what Bill C-26 does and why the official opposition is opposed to this legislation, I wish to express my appreciation to all members involved in the decision that took place last Thursday when Bill C-26 was last before the House.
I was unavoidably committed elsewhere on that day. At first it appeared that I would not be able to have a final chance to address this particular legislation, but with unanimous agreement from all the parties it was decided to bring the bill back today and that allows me the opportunity to speak. I appreciate that decision, particularly on the part of the government.
Bill C-26 will accomplish three distinctly different objectives. First, in repealing the Grain Futures Act, Bill C-26 paves the way for the Manitoba government to regulate the Winnipeg Commodity Exchange rather than having the exchange fall under federal jurisdiction, the Canadian Grain Commission to be specific, which it does at present.
It is my understanding that the exchange wants to offer trading of non-grain contracts, especially hogs, and the repeal of the Grain Futures Act will facilitate that.
As I noted previously during second reading and at report stage, having the province of Manitoba assume responsibility through the Manitoba Securities Commission to regulate the Winnipeg Commodity Exchange is a positive step and one which we support.
Second, Bill C-26 will bring the Canada Grain Act under the umbrella of the Agriculture and Agri-Food Administrative Monetary Penalties Act, thereby permitting fines for violations of the Canada Grain Act and its regulations to be levied by the Canadian Grain Commission. Because this legislation has a wider range of enforcement options which will allow greater flexibility, we view this as a positive step and therefore one which we support.
This brings me to the third item which Bill C-26 accomplishes.
Because this government once more has failed to listen to the farmers and their representatives who appeared before the standing committee on agriculture, we find ourselves in opposition.
Bill C-26 began with the establishment of the special crops rural initiative program committee. This SCRIP committee is made up of producers and processors from the three prairie provinces and is assisted by a representative from the Canadian Grain Commission.
Since 1993 the committee has consulted with stakeholders and in April of 1996 it drafted a report called the “Special Crops Rural Initiative Program” upon which this bill is loosely based.
Many of the recommendations made by the SCRIP committee are not included in Bill C-26, but will be laid out in regulations which do not undergo scrutiny by parliament.
While it would be impractical to set out specifics such as levy rates and deductibles in legislation, it would be more reassuring for farmers if certain limits were set out. For example, the legislation could have ensured that the levy rate not exceed 1% of the gross value of the grain sale proceeds. This would provide comfort in the years to come that the levy would not simply skyrocket to an unreasonable level.
The government likes to wax poetic about the success of the consultative process through SCRIP, but we saw very early on that SCRIP recommendations were overruled by the Canadian Grain Commission when the levy was set at a higher level than recommended by the committee. That is a rather ominous start and a cause for concern for farmers of special crops.
The farmers who will be affected by this bill will be those producing beans, buckwheat, corn, fababeans, lentils, mustard seed, peas, safflower seed, soybeans, sunflower seed and triticale.
The production of those products or commodities is on the increase all across western Canada. As a farmer myself, as someone who has farmed close to 20 years in the Peace River country, I can tell members that farmers are increasingly looking at these special crops as a way in which to diversify, as a way in which to try to spread their risk and as a way in which to try to increase their profitability.
That is why there is a great concern about this bill and how it is being brought in, and more specifically, how the levy will be structured and administered.
As for the licensing insurance scheme created under this legislation, there is an alarming lack of competition. Even the parliamentary secretary confirmed that the Canadian Grain Commission developed this bill. So there is indeed a high level of self-interest since the commission will also administer the plan.
At present buyers and dealers are free to shop around for the best price on their bond. I brought this issue up when the bill was before the committee and representatives of the Canadian Grain Commission were appearing as witnesses. Under the present system there is a certain competitiveness. The dealers, if they are licensed and are required to put up a bond, can shop around amongst the various agencies in order to purchase that bond. Under this new system they will not have that option. They will not have that freedom of choice.
As well, special crops producers are free to shop around for the best price for their product. In doing so they have to recognize the potential risk if they choose to deal with an unlicensed, unbonded dealer. If the buyer was to go into bankruptcy prior to them receiving payment for their delivery, they obviously would not be covered. That option is available to the producer. If he or she can see that there is a potential for a higher return for the product, they may indeed be willing to accept that risk.
All dealers will be licensed and insured with the Canadian Grain Commission acting as the agent and the Canadian Export Development Corporation becoming the single insurer.
There was a suggestion by the government that sometime in the future one or both of these tasks could be contracted to the private sector. I do not think I will hold my breath. Without such a goal outlined in legislation I see no real hope that the Canadian Grain Commission will be willing to release its grip on the plan so that it can eventually be transferred to the private sector. It is the farmers' money and they should run the insurance plan, not the bureaucrats. We have learned time and time again that the bureaucracy is not very good at running programs and plans such as this, where the expertise, capabilities and resources already exist in the private sector.
While Bill C-26 does provide some positive developments for producers of special crops, it also reminds me of a runaway train that is increasingly getting beyond the control of the farmers.
I would like to digress for a moment and refer the viewing audience at home to some other examples of legislation where this government has increasingly shown open disdain to listen to farmers, the people who will be affected by this legislation. In some ways there is a trend here. There is a similarity with Bill C-19. the labour legislation.
We had a number of producers and farm groups who suggested that because Bill C-19 takes a small step forward under section 87.7 in ensuring that the standard grains will continue to flow, even in the case of a pending labour disruption at the ports, and that ships will continue to be loaded that we should support Bill C-19. But the point we have repeatedly made is, why is it that this government will not listen to farmers and amend legislation? Why is it that it will not listen to opposition members and amend legislation to improve it? We have to settle for second best. We have to make do. We have to simply say that there is some good in the legislation.
In defence of the government, there is some good in the majority of legislation that goes through this House. The government is not bringing forward legislation just because it has nothing else to do. I am sure that it is bringing it forward with the best of intentions. However, the fact remains that almost all legislation, certainly all the legislation that I can think of that goes through this House, could be improved if only the government and its members were willing to listen, and in this case listen to the farmers.
It also reminds me of legislation that is going to come back before the House next week, Bill C-4, the amendments to the Canadian Wheat Board Act. Here again the government has shown a tendency not to listen to the farmers and act upon their recommendations.
Let us look at what we had to give up to get this plan.
Farmers will be forced to pay for the insurance plan up front whether or not they want to participate. They will then have to write to ask for their hard earned money to be returned to them. It is like a tax in that sense. If they are lucky they will get a refund at the end of the year. It is modelled on negative option billing which I recall the government repeatedly hailed as an unfair way in which to do business.
Criticism of this aspect of Bill C-26 was abundant during witness testimony when the legislation was considered by the Standing Committee on Agriculture and Agri-Food. During the month of April besides the Canadian Grain Commission we heard from representatives of the Manitoba Pulse Growers Association, Saskatchewan Farmer Consultations for SCRIP, the Western Canadian Marketers and Processors Association, the Western Canadian Wheat Growers Association, the Alberta Pulse Growers Association, the Saskatchewan Pulse Growers Association and the Western Barley Growers Association.
We had an opportunity to appear before the committee even though the time was shortened and the bill was hastened through the process. There was not a lot of time to hear from them about their presentations or for members, be they government or opposition, to cross-examine the witnesses to probe deeper into their concerns about the pending legislation. We had the opportunity to have a substantial number of farm groups appear before the committee.
We were very fortunate to have had the opportunity to hear from all these witnesses. It is one of the best tools of parliamentarians to accurately determine the will of the people. As a result of their opinions the Reform Party moved a number of amendments at both committee stage and report stage to reflect that feedback.
Unfortunately, as I have said, it appears the government does not value the opinion of farmers and defeated our amendments that would have made Bill C-26 an improved piece of legislation in the opinion of special crops producers.
In the time that I have remaining I would like to go over a few of the amendments the government has chosen to defeat. At committee stage some Liberal government amendments to the bill were put forward and passed which Reform supported. If I recall correctly they were supported by all the parties. Some of them were technical in nature. One amendment to clause 7 was to ensure that a producer's contribution to the insurance plan would be reimbursed after withdrawal from the plan in a more timely manner at the end of the season.
We heard repeatedly from farm representatives about negative option billing where everybody is in the levy. They cannot opt out as it were. They cannot say up front “No, do not collect this. Every time I haul a load of one of the designated crops to the elevator I do not want that taken off my cheque”. They cannot do that. It is taken off anyway. They were also concerned that they would have to keep track of it throughout the year.
I note even with the amendment that it is unclear at this point just exactly how it will operate and how cumbersome the administration will be for individual farmers. That concern was pretty unanimous in the farm representations we heard.
Another Liberal amendment was basically an exclusion amendment which we certainly supported and applauded. A concern was expressed by a number of farm groups representing western producers of special crops. Even the Canadian Grain Commission said that at some point in the future perhaps this levy, this insurance and licensing scheme, could be expanded to include the six standard grains: wheat, oats, barley, rye, canola and flax. A lot of concern about that was expressed by farmers.
When the government brought forward this amendment to very clearly state that those grains would be excluded we supported it.
As well motions were put forward by the other parties. What we heard really came down to two main contentions with respect to the legislation.
We heard that farmers were concerned about the way in which the levy would be collected. They were concerned that like the GST it would be foisted on them. They would have to keep track of it as they went along. Then, if they did not want to have their crops insured with the dealer, they would have to keep track of the levy, which is 38 cents per $100 of sales, how much over the year had been taken off their cheques, and then apply for it. This would create additional bookkeeping they were not too interested in.
They were also concerned about the lack of freedom of choice. They felt once more that government was intervening in the marketplace, in their freedoms as business people, and that if they wanted to accept the risk of selling their product to an unlicensed, unbonded and uninsured dealer or buyer it should be their choice. Once more they saw government intervening and telling them the way in which they should run their business.
We brought forward a number of amendments at report stage to address this last issue. The farmers were also concerned that the advisory committee the minister would be required to set up to advise on the administration of the insurance plan would have no power. Under the legislation it does not have any power despite the fact that all administration costs and the costs of the insurance would be borne entirely by farmers through the levy.
They were telling us the advisory board should be a board of directors that would administer and oversee the insurance plan and decide themselves. It would be farmers looking after their own money since it is their money and dealing with it as best they could.
The official opposition brought forward amendments dealing with all those concerns and the government chose to defeat them. In light of the fact that the government consistently ignores the concerns and desires of western producers and western Canadian farmers, whether it is Bill C-4, Bill C-19 or Bill C-26, the official opposition, the Reform Party of Canada, cannot support Bill C-26 even though as I said earlier there is a lot of good in it. The government will not amend or improve the legislation. Shame on the government. We cannot support it.