Mr. Speaker, I welcome the opportunity to speak to Bill C-40. I would like to acknowledge the tremendous work that my hon. colleague from Haldimand—Norfolk has done in providing support for this piece of legislation.
I am having a great deal of difficulty supporting the bill. However, I will support it. Once again the Liberal government has dragged its feet for so long on something that should have been fixed a long time ago, but it will not be the Liberal government that suffers if we do not pass this legislation. It will once again be the taxpayers, and in this case it will be farmers. It is with some disgust that I have to support Bill C-40 in its present condition.
I am glad that the hon. member for Haldimand—Norfolk is recommending an amendment to the bill. It is very critical that we address the fundamental workings of the archaic Canadian Grain Commission which is in place for all of Canada but which certainly plays a leading role in western Canadian grains and oilseeds.
This bill to amend the Canada Grain Act and the Canada Transportation Act would never have come into play if we had taken the recommendations of a study that was done back in the mid-1990s. Justice Willard Estey travelled across the country and consulted with farmers and people in the transportation industry to find out what was wrong with the system.
The Canadian Wheat Board monopoly, not necessarily the Canadian Wheat Board itself but the Canadian Wheat Board monopoly, the single buyer of wheat and barley for human consumption in western Canada, and I emphasize in western Canada alone, was found to be very flawed when Justice Estey put forward his recommendations. These recommendations were backed up by a follow-up process by a very well-respected former deputy minister in many portfolios in the government, Arthur Kroeger. He agreed with all of Justice Estey's findings.
Justice Estey would like to have seen the monopoly gone completely, but his recommendation was that we go to a commercial transportation system where the Canadian Wheat Board took ownership of the grain at port. What a wonderful, novel idea, but would the Liberal government adopt that? No. It chose to maintain the monopoly that provides no benefit to western farmers. The emphasis needs to be placed on the fact that it is western farmers alone who are under the control of the Canadian Wheat Board monopoly.
There have been similar systems around the world. The Australians had a wheat board. They chose to privatize it. Those who want to participate in it buy shares. It is run like a publicly traded company. It works wonderfully. Can we do that in Canada? No. The Liberal government said that farmers should not have control of their own destiny.
There are a lot of things the Liberal government could have changed so we would not be scrambling at the last minute to change a piece of legislation which, if we do not change it, will once again impact western Canadian farmers. Indeed, it probably will impact farmers all across the country if we do not make these changes.
A lot of what the WTO panel ruled on was impacted by the Canadian Wheat Board's monopoly. It was not the first time it had challenged the Wheat Board and it will not be the last time. It will simply tweak the system to make it fit for the present time and I am sure we will be dealing with this again in the future.
I represent the riding of Macleod in Alberta. The majority of farmers in my riding and in fact the majority of grains and oilseeds producers in western Canada are way beyond requiring a monopoly market their own grain. Wheat and barley are only a minor part of production in western Canada. Every other commodity we grow on our farms we market ourselves.
We have heard in the House today about what a wonderful job the Canadian Wheat Board has done by providing excess returns to Canadian farmers. That is not a fact. Our returns have actually been reduced.
We are also faced with the issue of the rail revenue cap. Justice Estey recommended that we move to a commercial system. The reason we have a rail revenue cap is because the Liberal government did not want to adopt the recommendations Justice Estey put in place. Once again we are paying for the ineptness of the government.
As was mentioned previously by the hon. member for Haldimand--Norfolk, the Canadian Grain Commission is an outdated system. I had an opportunity to question the chief commissioner who was before the standing committee a week or two ago, and I asked her why we do not have a Canadian french fry commission if the Canadian Grain Commission is so wonderful? Canada has a huge industry that turns potatoes into french fries, but we do not have a commission to market those french fries. We do not have a commission that grades french fries.
We do have however a grain commission that puts an arbitrary grade on grains. That is part of the reason why we are going to have issues with grain mixing. This piece of legislation attempts to address that problem through our elevator systems.
I need to raise one other concern along these lines. The northern tier states in the United States are captive shippers. There is one railway company that provides delivery for them to the west coast. Their freight rates are not quite double what ours are in Canada, but they are certainly in excess of ours. If we were to include the import of grains, then the way this legislation reads, we would see a huge influx of American grain coming through Canada because it would be cheaper to truck it into Canada, load it on rail cars, and send it to the west coast. What is going to happen to car availability for our western grains?
Farmers in my riding are concerned because their bins are still full from last year. It is a question of whether or not the Wheat Board will actually sell the grain or whether or not we will be able to move it to the coast. Farmers are putting in new crops for this year and yet their bins are still full from last year. We can ill afford to take on a larger capacity of grain to be moved to the west coast.
I wish I had been able to address Bill C-40 as well as the hon. member for Haldimand--Norfolk did. I did want to raise the concerns that farmers in my riding have raised with me. As I have said, we will be supporting this bill, but only with amendments and only with the provision that we take a serious look at the Canadian Grain Commission.