Mr. Speaker, it gives me great pleasure to rise to speak to the upcoming changes for the FCC. I am speaking on behalf of our agricultural critic, the hon. member for Palliser, who unfortunately could not be with us today.
Also a special hello and thanks to the dozens of farmers in my riding of Musquodoboit Valley. They are some of the best producers in the entire country. I am very proud to stand in the House to represent them and quite proudly say to them that I and my party support the thrust of this bill, although there are always a couple of cautions that need to be addressed.
Overall, we thank the government for these much needed changes. Similar to our colleague from the Bloc, we hope they pass fairly quickly. Above all we hope the constant consultation and dialogue with the main producers and with those people directly affected by the legislation continues. That dialogue is extremely important for the future.
Who could forget the crisis in the agricultural industry over the last few years? Many of us were at farm rallies on the Hill and at rallies held throughout the country, especially in the prairie provinces. Statistics show that over the last two years 22,000 families in the western provinces alone have left the farm. If that does not constitute a crisis in the industry, I am not sure what does.
Being a fairly new MP, going into my fourth year in this place, I always felt that it should be up to the Government of Canada, irrespective of one's political leanings, to look after our agricultural industry. If we do not do this to the best of our ability then unfortunately we will seriously neglect what I consider the most important industry in Canada.
When members had breakfast this morning and when they have dinner tonight, I hope they appreciate the people who are willing to get up at all hours of the day to sow the seeds so our families can be nourished. I think I speak for all members of parliament when I say we are extremely proud of the Canadian agriculture industry. We are very proud of the thousands of farmers and their families who toil in the fields and factories so we can provide nourishment to our families on an ongoing basis. Above all they do it fairly cheaply.
Food costs in Canada as compared to other countries are relatively inexpensive. People who suffer through tight financial times always worry about the cost of putting food on the table. When we look at the overall picture of what it costs to put food on our table compared to other items which we purchase such as shelter, clothing, home heating oil et cetera, food is relatively inexpensive. Therein lies one of the problems we are facing today.
The price that producers get for their product is very low. This is one of the crises we have. Wheat is made into bread and the bread is sold in the stores but the price of that generally goes to the middle man; the marketers, store owners and so on. If a loaf of bread cost $1, I believe the primary producer may get about 6 cents. That has to change so our primary producers who feed us and export to other countries get better value for the work they do.
The FCC is a wonderful institution for farmers when they need to diversify or when they need to purchase new equipment in order to ascertain future funding so they can carry on their business.
A young man from Saskatchewan with his family and many other farmers appeared before our caucus a few months ago to describe the scene on the family farm. I asked this young man, who was about 12 years old, if he was going into farming like his father and grandfather. He said no. I asked if there was anybody else in his classroom who was thinking about taking up agriculture as a livelihood. The young man again said no. That begs this question: Who are going to be the farmers of tomorrow? We know who the farmers are today, and many of them are going through a crisis because they are not sure if they will be able to make out the year.
Nobody likes to go from crisis to crisis year in and year out. Farmers know very well that historically there have been great years and poor years. They have always got through those years. However a tremendous number of farmers from coast to coast, not just in the prairies but in Ontario, Quebec and Atlantic Canada, are going through a very difficult time. Anything the federal government can do to assist them should be done very quickly.
It appalls me at times when I hear the federal government say that it has a new aid package based on provincial funding and that it will give $6 out of every dollar for aid but the provinces have to come up with the other $4. Nova Scotia is going through a pretty severe debt and deficit situation right now. It simply does not have additional funding to give to its farmers.
Nova Scotia rightfully says that if the federal government is swimming in billions of dollars of taxpayer money then at least it should assist those provinces and others with more funding for farmers, at least to get them through this crisis stage so they can set up long term arrangements for the future.
I know the federal agriculture minister from Ontario is a decent fellow, but he made a comment regarding P.E.I. potato farmers that I am sure he will live to regret for the rest of his days. He said that maybe those potato producers should grow something else because of the recent battle with the United States.
That is easy for someone to say, but P.E.I. grows some of the best potatoes on the entire planet. They have diversified in potato farming. The infrastructure, the machinery, the plants and the workers were set up for that. Then the federal agriculture minister turns around and says that the battle with the United States is pretty tough so maybe they should grow something else.
If the federal minister honestly believes that, which I am sure he probably does not, then P.E.I. potato producers should say “Okay, Mr. Minister, if we are to diversify, what should we diversify into? Is the federal government going to provide the funding for us to diversify?” If that is indeed the case, the minister should back it up with dollars and then maybe some of those producers will grow something else. If the minister is suggesting that they need to grow something else after they already grow the number one potato product in the country—at least that is my biased opinion, coming as I do from Atlantic Canada—then he should at least back it up with some dollars.
Overall the changes in the FCC are positive, as long as the FCC continues to focus on the primary producer. That is essential. The Canadian Federation of Agriculture has indicated to us that it has no overall objections to the legislation. Credit Union Central of Canada, representing credit unions across the country, formed a committee to study this legislation. During the consultation process it fully supported the proposal as long as credit unions could participate in some of the services, equity financing and partnerships. This of course would include the caisses populaires of Quebec.
This aspect of it is extremely important. Bill C-8, the financial restructuring act, is now going through the House. It has gone through this place and is on its way to the Senate, ready for royal assent. It will create great change in the financial sector in the country. When all those changes happen it will be extremely important to ensure that agencies such as credit unions and caisses populaires, which play vitally important roles in our country, especially in rural Canada where most of our farms and primary producers are based, have an important say and a role in the future of how FCC does its business. If they do, they will continue to have our support.
The National Farmers Union is concerned that the FCC may soften its focus on family farms and primary production. The government and the FCC have made a commitment that farming and the primary producer would continue to be the main focus of the corporation. That is essential.
In order to maintain the so far lukewarm support of the National Farmers Union, which represents a tremendous number of farmers across the country, it is imperative that the government and whatever party is in government years down the road continue that important dialogue with groups such as the National Farmers Union to ensure that primary producers rural communities and those family farms are indeed integral to any decisions made.
The best way to do that is with open and transparent consultation. The federal government has been blamed many times—I think of the Sea King operation for example—for hiding behind its words, for other concerns it tries to hide from, and for not being completely open and transparent. I beg the government to ensure that it does not do this with our agricultural concerns. That would be a very sad thing.
The corporation's main focus would continue to be small and medium sized operations that contribute to local communities. We have to take the government and the directors of the FCC at their word. If indeed that is correct, they will have our support and the support of many family farms throughout the country.
However, again I would like to remind the government and those in opposition right across the country that it is imperative to maintain that and not lose sight of the main focus in years to come.
In fact, the FCC has only a handful of accounts with businesses that have revenues over $5 million. The majority of its day to day business is indeed with small and medium sized family farms. That is extremely important.
Another concern in regard to a lot of family farms these days is lease financing. Under the new legislation the FCC would offer lease financing directly to or in partnership with agricultural operators. There is a growing need for lease financing in the agricultural industry for operators who want to manage cash flows with increased flexibility. The 1993 act does not prevent FCC from offering lease financing. However, the new amendments clarify the scope of the corporation's service in that area. More important, with a more flexible financial structure the FCC will be able to create subsidiaries to partner with other organizations in offering more comprehensive financial packages.
With Bill C-8 and the concentration of our financial institutions, it is very important, at least in my mind, that farmers and primary producers have the option and flexibility to look for the best rates when it comes to their lending needs. The corporation would have access to additional financial management tools to secure its portfolio and offer expanded services to agricultural operations. A more flexible financial structure contributes to the viability of the FCC and its ability to serve agriculture in the long term. That is definitely what is needed.
The country deserves and demands an agricultural policy from A to Z that really meets the needs of the family farm and medium sized producers and ascertains and tells Canadians once and for all that in this country we will be able now and in the future to feed ourselves. An awful lot of people are concerned that we as a country may be losing our agricultural sovereignty. We simply cannot allow that.
I could not help but notice that one of the greatest fighters for the family farm, a gentleman from Ontario, is in the House today. I thank him for his personal efforts in bringing the issue of the family farm to the House of Commons and to his own government. He should be complimented for his work in creating awareness of the crisis on the family farm.
There are other concerns throughout the country. We would like to ensure that the family farm issue is not just not a debate in the House and is then forgotten. We would like the family farm issue to continue in the House and we would like to ensure that when changes need to occur we can meet those changes along the way.
It gives me great pleasure every September and October when I come to Ottawa to bring with me about 100 pounds of Annapolis Valley apples of various descriptions. I hand them out.