Madam Chair, I want to congratulate you on your election as Assistant Deputy Chair of Committees of the Whole. It is very interesting to see you fulfill these duties. I know that you will do a good job and that the members of this House will like you. I welcome you.
It is with great pleasure that I have the opportunity tonight to speak on the topic of BSE. Normally I speak in French but tonight I will try my best to speak English, the language spoken by the farmer to whom I spoke the other day.
Yesterday, during Thanksgiving, I took the time to sit down with a farmer. He was cutting his corn. He stopped his machines because he wanted a message to be brought to the House of Commons. I know the farmer, David Whelton, is listening tonight. He lives in Pokeshaw, New Brunswick. He said that he hoped the members of the House of Commons would stop picking at each other and try to find a solution because he was losing his shirt.
He gave me a message to bring to the House of Commons, and it gives me great pleasure to do that. We throw around blame but the end result is what we will do for the farmers.
In August last year I had a press conference in Bathurst, New Brunswick. David and other dairy farmers were with me. Also, my colleague, Dick Proctor, from Moose Jaw, was with me. I remember what David said at the press conference. He asked what was happening between the farmer and consumer. He said that he used to get $1,400 for his beef but was getting between $300 and $500. He said that he went to the super store and it was still the same price for steaks. He asked at the store what was happening to the price between himself and the store. He was told that the store was paying the full price, so David asked to be shown the bills to see how much the store was paying. The person at the store said that he could not do that.
David told me about his financial picture before May 20, 2003. He had a debt of $260,000. He had cattle worth $360,000. He is maybe not a big farmer but he is one of the farmers we love in our area. He had feed valued at $100,000. He said he had no mortgage, no debts and no bills, but he had $200,000 net if he was to sell all his cattle. That was before May 20, 2003.
Now he has $30,000 worth of cattle. He has feed worth about $50,000 to $80,000. He has minus $35,000 in accounts payable and a debt load of $550,000. If we put the $515,000 and the $200,000 that he would have had, it makes a difference of $715,000. Now he must sign a mortgage with the Farm Credit Corporation of Canada to convert $260,000 of debt to a long-term 20-year mortgage at prime plus 3.25%.
He had to borrow from the Royal Bank $350,000 as an operating loan to refill his feedlot to handle 300 head of cattle to start over. The operating loan is guaranteed by the New Brunswick government at 80% in order for the bank to lend the funds. An annual cost guarantee to the provincial government is as follows: an annual payment to the province of New Brunswick of a guaranteed loan will cost him $4,200; an annual interest payment to the farm credit for $260,000 at the prime rate of 3.25%; and an annual payment to the Royal Bank for the $300,000 at prime plus 3.25%. Today to keep his farm, he must take a very large increase in his debt load.
After paying the New Brunswick government, farm credit and the Royal Bank, the chance of making a living with a farm is very slim. Not only will meat packers make money from the mad cow disaster, but the bank and the government will make money from people who are losing their shirts.
Between the farmer and the consumer what is happening? I remember we had to twist the arms of the meat packers to get them to come to the parliamentary committee. Where are we going as a country, when our farmers are going down the drain. What are we doing?
David is very sad today. He had a nice little farm and he had money in the bank. Now he is going broke like many other farmers. I would like to thank David for giving us this story, a real one, one about what people are living today.
He applied for a grant and he got $9,000. It cost him $3,000 for the accounting firm just to fill out the forms. He made $5,000 out of $8,000. It cost him $3,000. He gave me all the forms that he had been filling out for over a year, but he is getting nowhere. Know what the department told him? He was turned down because, by their calculations, he did not lose enough money to trigger the payment. What a shame it is to have a program that is not enough. We believe the meat packers and big super stores are making money. They even are getting the money from the government.
The little farmer is not getting the money. He applied last year and he is still waiting for an answer. He was told he would have to wait another 60 days before something would happen. That will be November 25, 2004, 13 months after his first paperwork was sent to the CAIS program. We have a problem.
My colleague said not too long ago that Parliament had no power over the bureaucrats. If we do not have any power, we have a problem. When we talk about what is happening in the United States, we are being nice. We should punish the United States with our free trade. We have free trade one way, and the Americans find a way to stop us.
We had a problem with chickens from two states. All Canada said was that it would not take chickens from these two states. We did not say that we would stop taking chickens from all states. The BSE incident happened in Alberta and the whole country was stopped from sending its beef to the U.S. It was one case. We have eaten more beef in the last few years than we have ever eaten and no one has died.
I was in Taiwan a couple of weeks ago, and I asked a question. Members from the Conservative Party and the Bloc Quebecois were there also and they asked why they did not buy our beef. The answer was that they had not been convinced technically that it was okay.
Are we doing our job? Did we try to convince them? Did we show them the proof? We told the Taiwan people and the foreign deputy minister that we believed the only reason we were having the problem with the United States was because they did not want our beef, the same way they did not want our softwood lumber. They have been treating us the same way for the last few years, and it is not right.
A member from the Conservative Party has said that we should go to the States and sit there until the Americans understand. They do understand. However, this is not right. We have to look more at how to treat our people.
Maybe I can suggest a solution to the government. Why do we not set up a royal commission? We could find out what is happening in Canada alone. Why is it today our farmers get $500 or $600 for a beef, yet when we go to the store, we still pay the same price? Why is the steak still $11.50 per pound, but the farmer is losing his shirt, a guy like David who was working late yesterday. It is the same thing with the one in Alberta, the one in Winnipeg, the one in Edmundston, New Brunswick, the one in Sussex, New Brunswick , the one Nanaimo and the one in St. George, B.C. I think it is important. I think the people and farmers are sick and tired too that we are having these discussions. While we are having these discussions, for over a year they have been losing their shirts. That is not right.
I hope we do more than just talk among ourselves. I hope we find a solution for the farmers. There is a solution, but we have to do the right thing. We are together here to find the solution for our farmers.