Mr. Speaker, it is really frustrating to see how Liberal MPs are twisting the entire meaning of this debate. We have an opportunity today to tell the agricultural producers of the country that we are not only concerned about their plight, but we are willing to do something about it. This motion to provide added financial support to our struggling farmers is not about politics or party policy. This motion is about ensuring that the primary producers of Canada are given the same opportunities as other sectors of the economy.
Last night on our government funded public broadcaster, there was a report about the amount of subsidies Canadian farmers receive. The CBC reported that in 1999 this country's producers received 57% of their income from the government. They project that by the end of this year a farmer will have received 75% of his income from the government. The CBC is crediting these numbers to Statistics Canada. Common sense would tell us that if these numbers are true then our farmers are in bigger trouble because their incomes are so low. The reason we are really in a crisis today is that the government puts so little into agriculture in Canada compared to what other nations do.
The tone of the report gives a completely false picture and it only serves to make the government look good. The figure the CBC is using is not an accurate portrayal of farm subsidies in Canada. The Organization for Economic and Co-operative Development, known as the OECD, which is the authority in determining agriculture subsidy levels, stated that in 1999 only 20% of a Canadian farmer's income came from government. That is quite a difference from the 57% reported by the CBC. Why is there that difference?
The OECD is actually taking into account the entire farm receipts received. Statistics Canada figures use the net farm numbers. When we use the net farm numbers it appears as though our producers are receiving some great subsidies, because a farmer's expenses will have been removed from the figure. If we use the net farm numbers, we are in effect counting the government subsidy level twice. If we count the government subsidy level once on the gross farm numbers and then when we eliminate the farm expenses and compare the subsidy level again, we come up with the preposterous figures that were delivered on the CBC last night.
Inaccurate reports from our publicly funded broadcaster are inexcusable and hurt the very people forced to pay for them. This irresponsible reporting is one of the main reasons we are here today. This type of misinformation gives the impression to our city cousins that farmers are receiving some type of huge payout from the government. However, that is far from the truth. If farmers were receiving 75% of their income from the government, does anyone think we would even be here today?
I hope that after hearing today's debate our national broadcaster will correct last night's report and accurately reflect the level of farm income support in the country.
Our minister of agriculture was on a CBC show this weekend. He made the comment that farmers should be treated like any other business. I could not agree with him more. Unfortunately, the minister and the government do not treat farmers like other businesses.
Let us look at how they are not treated fairly. The most obvious difference is the treatment at the international bargaining table. In 1986, Canadian wheat producers received about 45% of their income from the government. Since that time, support for our primary wheat producers has been reduced to the point where it is only about 11% from government. This would be fine if our competitors would have reduced their subsidy levels, but that did not happen.
In fact, the United States in 1986 had its wheat farmers receiving about 49% of their income from government. In 1999, a U.S. wheat producer received 46% of his income from the government. In the last year, that level of support has gone higher.
The inequality in subsidization is the reason we are here today. Subsidies distort the marketplace and have resulted in overproduction of grains, which in turn has forced the price for these commodities downward.
Our farmers in many cases are growing these crops below the cost of production. By doing that, they continue to subsidize consumers in our cities and keep food prices low. People shopping in our supermarkets today should understand that one of the main reasons a loaf of bread is not $4 is that our farmers continue to produce this product cheaply and efficiently.
When our food prices start to rise substantially, then there is going to be a public outcry. Will the government then realize it should have supported our agricultural sector? Unfortunately, then our family farms will be gone and it will be too late.
There are many examples of government preparing for problems within different sectors, but when it comes to agriculture, the planning is not there.
Back in the mid 1990s, when the government was balancing its books on the backs of farmers, it removed the Crow rate subsidy. At that time Reformers told the government that eliminating this program did not remove government from having to support farmers. We explained that even though times were good then, commodity markets would come down and the government had better be prepared to help when it happened.
In fact, we told the Liberals to take 80% of the money in the Crow and put it into a trade distortion adjustment program to be used when farmers needed it. Did the government listen? No. We would not be here today making this motion if it had done what we asked. If the government had listened to our suggestion, by 1998, when this crisis started to become apparent, there would have been over $4 billion to help farmers.
The fact the government was not willing to plan for the future relates to my main theme, in that government does not treat agriculture like other sectors of the economy. The government will plan for the future when looking at other sectors and industries, but when it comes to agriculture there is no long term agriculture policy.
Let us look at the Bombardier issue. This is a company that made $700 million in profits last year. It was competing with a Brazilian company for a $3 billion contract to build airplanes. The Brazilian company was receiving subsidies from its national government to give it a competitive advantage. Canada's response to this was an industry minister who said Canada could no longer afford to be the Boy Scout of the international trade world. This statement was also combined with a $1.5 billion loan guaranteed to help Bombardier compete against Brazil for a contract.
Here we have the government supporting a business that is being forced to compete against unfair foreign subsidies. Does this not sound familiar?
For the last four years we have been explaining to the government how our farmers are competing against unfair foreign subsidies, yet we do not have an industry minister or an agriculture minister who is willing to back up our farmers by making the same commitment that was made to Bombardier.
This is why I am saying agriculture is not being treated like other businesses or industries by the government. There are two sets of standards here and it has to stop.
Another example of the government preparing other sectors for problems down the road is our Canada infrastructure program. The government has committed $2.65 billion to deal with the need to replace aging infrastructure in communities. This is a prime example of how government can provide support to a sector by looking ahead, determining a need and addressing that need.
I cannot understand why the agriculture department is not doing the same thing. It has used ad hoc programs to address the current crisis. The programs are not working and the department still has not prepared long term solutions to help support agriculture. This is not treating agriculture like other sectors.
Let us look at grain transportation. It is not treated like other industries. The government promised $178 million in savings when it rammed its new transportation bill through the House of Commons last spring. After talking to grassroots producers, I can tell members that there have been little or no savings in transportation. Without implementing a commercial and competitive grain handling system, the savings will never be achieved. By government overregulating and not ensuring competition among the railways and grain companies, farmers continue to lose out.
The MP for Hastings—Frontenac—Lennox and Addington said farmers should be allowed to be entrepreneurs and I agree, yet when I talk to backbench Liberals they have no idea of how the wheat board works.
There is one glaring difference between prairie grain producers and other businesses: farmers cannot sell their wheat and barley to whomever they want. Producers are forced to sell their wheat and barley to the Canadian Wheat Board. They cannot process their own product and sell it to consumers without going to the CWB.
Other sectors of the economy are not treated like this. I do not know of any other industry that has to sell its product to a government controlled bureaucracy and then buy it back at a higher price before it can reap additional profits through processing. If another profession or industry would not stand for this, why should our farmers be forced to accept this type of approach? The government once again does not treat agriculture like other businesses.
Here we are, asking the government to approve an additional $400 million in support for our agriculture producers. This is not some cap in hand payment. This is treating our farmers like any other business in the country. When other businesses are sold out at the international bargaining table, there is an obligation to stand behind them. Why not agriculture? We have to put our political ideologies to the side and look at what is needed for our agricultural sector.
Members from all political parties in the House have expressed concern for the primary producers of the country. Now is our chance to not only talk the talk but walk the walk. This action would provide some immediate relief to producers to help them through this cropping season.