Mr. Speaker, before I begin the substance of my remarks, I would like to commend those who spoke this evening from the other side and from our side. In particular, I would like to mention the efforts of the Minister of Agriculture and Agri-Food and his parliamentary secretary, who have worked tirelessly, as have their predecessors, on this file since the first case of BSE was discovered. There is no question that all Canadians and parliamentarians want to see this file successfully closed with the opening of the border to live Canadian cattle.
Unfortunately, it remains closed in spite of the best efforts of the U.S. administration, including commitments by U.S. President Bush and matched commitments on the Canadian side to see the border open. Insistent and consistent efforts were made to ensure that a science based solution to the problem was found.
As has been aptly explained by my colleagues, our American friends are seeking a reopening of the border with Japan based on sound science. We ask nothing more and nothing less for our own Canadian producers.
I wish to echo the comments of Canadian producers and others. Canadian producers, be they beef producers or producers of any other commodity are among the best farmers in the world. They manage their farms within one of the safest food systems in the world, and we should be very proud of them. The fact that the government has responded with vigour and with substantial financial assistance should not go unnoticed, which it seems sometimes it has by opposition parties.
The problem with the U.S on softwood lumber is a major problem for my constituents in my northern Ontario riding, as is the problem with beef for beef farmers in northern Ontario. This may be a surprise to my colleagues across the way. My northern Ontario riding in central Algoma, the North Shore area, the Manitoulin Island area and the Highway 11 area from Smooth Rock Falls to Hearst, has a large number of cattle farmers who, like farmers out west, have been very seriously hurt by the closure of the border.
I prefer not to say too much about the Montana district court decision, but I hope a solution can be found for the file on the case of the trade in beef. As we search for solutions in softwood lumber and other commodities, we ask our American neighbours to manage trade based on law, on science and on best practices, not based on regional parochialism.
I am very pleased to join my colleagues tonight to participate in this important debate. The issue of BSE and the continued closure of the U.S. border to Canadian livestock is an issue that is very dear to the hearts of many Canadians, not just those working in the livestock industry.
The government and opposition parties in the House have all taken the opportunity at one time or another in the last two years to focus attention on this important matter, and tonight's debate is another welcome opportunity to address the issue.
It is not the first special emergency debate on this. I recall participating before. I recall the minister staying all evening, not just once, but several times in the past to ensure that the message got out, as it should. The government is working hard on the file and is doing its best.
The livestock industry is part of our proud history as a nation. Looking back, it is an industry that played an important role in the settling of the Canadian prairies more than a century ago. At the same time, the livestock industry is also an intrinsic part of our present and of our future.
As everyone knows, Canadian beef is renowned worldwide for its quality. It is synonymous with top quality.
This industry has been a major component of Canada's foreign trade. In fact, Canada exported more than $4 billion in beef and cattle products in 2002, which makes it the third largest beef exporter in the world. It may be a surprise to a lot of Canadians that Canada is the third largest beef producer in the world. We hear so much about beef from Argentina and other South American countries, as well as Mexican and U.S. beef, but considering the population of Canada is certainly not the third largest in the world, being the third largest beef producer is significant and speaks to the importance of the industry to Canada's economy as a whole.
In fact, as a country Canada actually generated a trade surplus in beef products of $3.2 billion, nearly 6% of its total trade surplus. I believe that was last year. Clearly this is an extremely important industry not just for livestock producers but for all Canadians. It is an industry that has developed an international reputation for excellence.
In light of the reaction of other countries to the discovery of a case of BSE in May 2003, the industry is paying a very high price for events totally beyond its control.
Last September the Minister of Agriculture and Agri-Food worked in close consultation and collaboration with the provinces, territories and the industry and announced a $488 million package to reposition Canada's beef and cattle industry. Restoring Canada's position as a global leader in premium beef exports is a key component of the industry strategy. The government committed $37.1 million in new money as part of a repositioning strategy to intensify our activities dealing with international market access issues related to BSE.
I would like to underline the minister's efforts in not only designing and promoting the repositioning strategy, but it is a strategy that makes a lot of sense regardless of one's perspective. The slaughter capacity, which used to be much higher, over the years for a number of reasons was reduced and it is necessary that it be re-established. We should hit a 30% increase by the end of the year and hopefully much more than that over the next few years. We hope we never experience a closure again once the border is reopened and that we are never so dependent on trade in live cattle with the U.S. again.
With the 2005 budget the Government of Canada announced that an additional $17.1 million will be available within the $488 million strategy to reposition Canada's livestock industry to further increase domestic slaughter capacity through the loan loss reserve program. I believe the minister announced that Farm Credit Canada would be actively engaging itself in that program.
We have taken vigorous action. The Minister of Agriculture and Agri-Food has taken part in trade missions in different parts of the world in an effort to get borders reopened to Canadian cattle.
That is not all. Additional budget initiatives will be of assistance to cattle producers. For example, $104 million over the next four years will go to the Agricultural Marketing Programs Act to expand the cash advance program and to broaden access to include livestock producers. Certainly reopening the U.S. border to Canadian livestock and beef products from animals of any age has been a priority. We intensified our efforts in other parts of the world, particularly Asia. We have seen positive results, for example, in China and Hong Kong.
Again the efforts of the government and the minister to engage existing foreign markets and potential new foreign markets and discussions on diversifying our trade in beef are laudable. They have already gained results. The dividends for those efforts are yet to come. Our efforts have been paying off as more countries come to recognize the efficacy of our science and to reopen their markets to Canadian meat products.
In addition, we have earmarked $80 million over two years to resolve the issue of removing specific risk factors from animal feed.
The United States Department of Agriculture has acknowledged this fact. The President of the United States has acknowledged the fact that Canadian science is good science. We must not lose sight of the fact that Canadian producers and our food safety system is virtually second to none in the world. Unfortunately, science is not the only factor at play in the international decision making process.
Certainly Canadians know our beef is safe. The Canadian food safety and inspection system in place was sufficiently robust that the BSE infected animal was detected and removed before it reached the human food chain.
In an effort to support our livestock producers, beef consumption in Canada rose by 5% when BSE was discovered in 2003.
Canadians have clearly shown their support for our livestock producers. Governments in Canada have also clearly shown their support for our cattle producers.
We can all be sure that these efforts will continue. We must and will continue to support our producers as we move forward to resume trade, strengthen our domestic capacity and ensure that the industry is sustainable for the future.
We must support our producers, and we will continue to do so as we move forward to resume trade, strengthen our domestic capacity and ensure the future sustainability of the industry.
I would like to commend the beef producers again in my riding of Algoma—Manitoulin—Kapuskasing. I have met with many of them since this issue arose back in 2003. They are facing tremendous challenges. The dairy farmers are facing the tremendous challenge of what to do with the cull cows.
I would like to extend to them my fondest hope, which I am sure joins their hope that this issue with our U.S. neighbours will be resolved soon and in a way that will see the full recovery of the industry over as short a term as possible. At the same time, I am sure I share with them the desire that our capacity to process and slaughter our own cattle will be expanded and that that expansion will be achieved over as short a time horizon as is possible.
I will now give up my place on the floor and allow someone else a few minutes before the evening is over. I would again commend all members for their efforts here tonight and other times in showing their support for not only the cattle producers, but for all farmers right across this great country of ours.