Mr. Chair, the ongoing crisis in the cattle industry in Canada due to the BSE related border closure has threatened and continues to threaten the very existence of the historic backbone of our Canadian economy. The United States department of agriculture's proposed rule change process and subsequent court challenges by short-sighted groups in the U.S. who are fighting to keep the border closed could very well keep live Canadian cattle out of the U.S. for some time to come.
Softening of testing requirements by countries like Japan should have a positive effect on Canada's situation, but there are no guarantees. The uncertainty that is causing turmoil in this industry continues. In the short time I have, I would like to offer a few suggestions I have heard from producers on actions needed to preserve our cattle industry.
Number one is slaughter capacity. One action that is supported by all sectors of the industry is an increase in Canadian slaughter capacity. Any beef leaving this country should be in a box, not on the hoof. Investors and development groups seeking to build packing plants have done a lot of legwork and research and some of them are ready to proceed to the groundbreaking stage.
These groups, along with their financial backers, need to know exactly what funds are available to them and how these funds can be accessed so construction can start. Without the immediate start of construction to increase capacity, the rest of the government program is meaningless. The set-aside program can only function properly if the animals set aside can go into an orderly marketplace when the set-aside period is over. Beginning construction will send a clear message to both the U.S. government and the U.S.-owned Canadian packers that competition is on the way.
Number two, we need a full court press in the United States. A lobbying effort in the U.S., targeting both elected officials and consumer groups, is absolutely critical and this government should be fully engaged in coordinating these efforts with the resources needed to do the job properly. We need to inform the U.S. consumer that the high prices they are paying for both beef products and dairy products and the loss of jobs due to the closing of slaughter facilities are a direct result of politics and have nothing to do with food safety. Levering and broadening the support for the Canadian industry that already exists in the U.S. is absolutely critical.
Third, NAFTA rules. This government needs to use all the tools at its disposal through our trade agreements to fight this unjust and purely political action. Producers have initiated a chapter 11 challenge on their own and a chapter 20 challenge should be under consideration by this government. Our trading partners use all the legal tools at their disposal and so should we.
Number four is a herd rationalization program. As time passes by and our Canadian herd continues to grow, compounding an already serious problem, rationalization of the size of the herd through a mature animal cull must be considered, albeit as a last resort. Animals over 30 months of age are a problem that we will have to solve separately from our younger animal issues. If we can find a use for some or all of the beef in these older animals, great, but if we cannot, other solutions need to be considered. Using this process to meet our OIE testing requirements is also a definite plus.
Number five is harmonization and recognizing health standards. We must eliminate the issues opponents to an open border are using to argue for restricted access to U.S. markets. Standardization of health protocols is an essential part of eliminating that opposition.
Number six is a rapid response trade dispute resolution mechanism. This is a proposal that our party has raised in the past, one that was included in the Speller report on the state of agriculture. It is a structured cross-border mechanism to look at and head off full-blown trade disputes, a trade arbitration process, so to speak, a process to bring parties together to resolve issues before they get out of hand, with the BSE crisis a case in point.
Number seven is research and risk management. This country should be a leader in the research on animal disease. We have a multi-billion dollar industry in this country and we should protect it with sound science and research. We should have the risk management tools, the information collected by the government, to provide to producers to make decisions.
In conclusion, I firmly believe that this industry, properly handled, can not only survive but can prosper and become stronger and more vigorous. I believe it is possible and necessary to create an atmosphere in agriculture in Canada that will attract our bright young people instead of chasing them away. I only have to think back to yesterday and meeting the wonderful youngsters from the Gem, Alberta 4-H club and their parents to realize there is a potential for a bright future in this industry. It is government's responsibility to secure that future for the next generation.