Mr. Chair, thank you for your very capable assistance tonight in making sure that this take note debate is as productive as all members in the House want it to be. It is very important that we take these opportunities to discuss matters of great importance to the country. The crisis facing our beef farmers is pre-eminent among those concerns.
I would like, as so many before me have done on this first occasion, to thank my electors, the electors of Algoma—Manitoulin—Kapuskasing, for having honoured me again in my capacity as a federal member of Parliament so that I may continue serving the vast and beautiful area of northern Ontario. As l have committed to in the past, I continue to commit myself to work hard on their behalf. I would also like to acknowledge some friends and certainly some important family members who may be watching tonight. We certainly look forward to continuing discussions at home as well in support of our beef farmers, who are struggling at this very difficult time.
In addressing the House this evening on this most important matter, we recognize that it affects the lives of tens of thousands of farm families across the country and, directly or indirectly, the lives of each and every Canadian.
The beef and cattle industry is a major economic driver in this country. Exports were over $4 billion in the year 2002 with the lion's share of that going south. That kind of activity cannot be shut down without a severe domino effect right through the economy.
The BSE situation and specifically the U.S. border closure to live cattle is having a serious impact on the beef and cattle industry in Canada, right from farm families through to all the industries that depend on the beef sector. It is also affecting other livestock sectors, including sheep and goats, but especially dairy producers, who have lost markets for their cull cattle and bred heifers.
One might think that in a northern Ontario riding there would not be a dairy or beef industry, but in fact the opposite is true. I am glad to help inform members of this chamber that on Manitoulin Island, in east Algoma, on the north shore of Lake Huron, and indeed in the highway 11 Hearst and Kapuskasing area, there are many dairy and beef producers who have been hit severely. I, in sympathizing with my own constituents, sympathize with beef producers right across this country, whether they are in the west or the east or in central Canada.
I have had occasion to meet with many farmers over the last year and a half, people like Brian, Stan, Beth, Ron, Cathy, Tom, Gail, Doug, Jim, Harold and so many others, either at meetings in Gore Bay or Echo Bay or Bruce Station or individually at so many other locations throughout my large riding. I know they are hurting. I know they want to see this situation resolved. I know the government has stepped up to the plate. I wish we had jurisdiction over the U.S. side of the border, but we do not. What is important for us is that we continue to deal with the science, with regulation and with those issues that will ultimately bring a solution to this problem.
The Government of Canada continues to respond to the situation as it unfolds. In the roughly 17 months since the first native-born case of BSE was discovered, the federal government, along with the provincial governments, has been extremely active in developing a collaborative response to this problem. Since that case of BSE was discovered, the federal and provincial governments have delivered at least $2.5 billion to the beef and cattle industry, which serves to underscore how committed we as the federal government are, both to the industry and to working with our provincial counterparts.
This does not take into account the cattle industry repositioning strategy announced September 10 by the federal Minister of Agriculture and Agri-Food. At this time I would like to commend the efforts of both the present and the past agriculture ministers, who, faced with this very difficult problem, have worked diligently and tirelessly to find a solution. If it were entirely in their hands to find a solution, we would have long since had one.
Unfortunately, we are dealing with a sovereign nation to the south of us. It is a nation that we consider our neighbour and our friend, but nonetheless a nation that we call upon again here tonight in the spirit of non-partisanship to re-open that border to allow for the return of an industry. It is definitely a North American industry. It is an industry that is strong when it is seen from a continental point of view, but the fracturing of that trade by this very serious problem has not helped anyone.
As the minister has explained, the goal of the package is to put the Canadian beef sector on the road to profitability through developing solutions that are truly made in Canada. The various components of the package were developed based on intensive consultations with the provinces and industry.
One of the messages that came through loud and clear was the critical shortage of slaughter capacity in our processing sector. Compounding that is the need, especially on the part of small to medium size packers, for some sort of credit assistance for the new investments that any expansion requires.
As part of that package the minister announced on September 10, there is a federal only investment of more than $66 million to facilitate increases in slaughter capacity of beef and dairy cattle. It is true that industry has already begun to build new capacity and has already invested substantially, but this new capacity will take time to come on stream. What the program will do is help accelerate this growth with a view to putting Canada in a strong position to be able to supply more value added exports while reducing our dependence on live animal exports.
One of the key measures announced is a loan loss reserve. This will go a long way to increasing the comfort level of lenders considering financing expansion proposals, particularly for smaller operations which are having some difficulties in securing the necessary financial support. The decision on whether or not to extend credit will remain with the commercial lender based on a sound business plan put forward by the applicant.
Additionally, the Canadian Food Inspection Agency will work to streamline and expedite reviews and approvals of new plans under the Meat Inspection Act in a manner that does not compromise health and safety. As we know, Canada has an excellent record of food safety. We have had this unfortunate isolated incident, but Canada's reputation worldwide is second to none. With the cooperation that continues among all levels of government and the CFIA, I am sure that we will not only build on that reputation but that we will do so not only for this generation but for generations to come. We will also make sure that the Canadian Food Inspection Agency has the resources it will need to handle the increased inspection activities.
Finally, federal and provincial governments will work together to identify areas where the regulations can be streamlined to allow expansion or construction to begin sooner.
This package sends a strong signal of the government's commitment to the beef and cattle industry and will provide much needed flexibility for the industry to process cattle in Canada.
We do not know when the border will open. In fact, we have no guarantees in this regard. It is important that we have a strategy, and we do have a strategy which will take into consideration all the contingencies.
Going forward, I call upon our U.S. neighbours, as we all do in the House, to consider our history of good cooperation. In terms of the beef industry, we are going through changes here that are necessary in light of what has happened. However, our friends to the south know that they can count on us to do what is needed to minimize the chance that this kind of incident will happen in the future.
I commend the minister and the government for the very proactive steps taken to resolve this issue. I look forward to talking to farmers in my constituency and those who buy groceries at the grocery store, who have no other involvement except as consumers. They, as do members of my family, share a deep concern that our farm families and the industry dependent on the beef sector return to full health soon.