Mr. Speaker, I rise today to take part in the debate. I represent the downtown area of Winnipeg, which is home to the headquarters of the Canadian Wheat Board. Also coming from a prairie province that depends so much on agriculture and farm income, I felt it was necessary for me to enter the debate.
Let me start by simply saying there is no business case for abolishing the Canadian Wheat Board. It is pure ideological madness. It is an ideological crusade that the Conservative Party has undertaken, really to do the Americans' dirty work for them.
The Wheat Board has been the subject of 11 separate U.S. trade attacks. The board has won every one, something the Americans could not do. Even before the ink was dry in the 1989 free trade agreement, they were gunning for the Canadian Wheat Board. They made no bones about it whatsoever. In fact, the Americans wanted the Wheat Board out of the way. It is a trade irritant just as the softwood lumber deal is a trade irritant. The new Conservative government is dutifully falling in line to do the dirty work of the Americans.
Many people, if they are not in the industry, do not understand how the Wheat Board works. The reason a dual market will not work and the reason it will be the death rattle of the Canadian Wheat Board is very simple. If the open market is higher than the initial payment, the board will not get any deliveries. However, if the initial payment is higher than the market, then it gets all these deliveries, but it has to sell them at a loss. That is why this dual marketing will not work.
I respectfully ask members to think back to the voluntary central selling agency run by the pools in the 1920s and to the voluntary Canadian Wheat Board, which was run in 1935. Both of them had spectacular bankruptcies. They were the greatest business bankruptcies in Canadian history for that simple reason. A voluntary Canadian Wheat Board do not work nor will it survive.
We have had letters from farmers and I want to read one. I know people have questioned the veracity of these letters. These are letters written by individual farmers and signed by them. This one is from a farmer in Richmond, Saskatchewan. He challenges the statements from our current Minister of Agriculture and from the Parliamentary Secretary. He says, “The statement that the majority of farmers support the concept of dual marketing is false”.
I believe it is false as well. I believe if it was put to a plebiscite, if it was put to a fair vote, we would be able to verify that.
He goes on to say, “The statement that the present government has a mandate to end the monopoly of the Canadian Wheat Board is false and the statement that it's not about economics, it's about freedom, which I have heard the minister and others say, is just plain stupid”. That is according to him. I would not say that. “In this case, freedom is just another word for nothing left to lose. Leave the Canadian Wheat Board alone. It's the only support left for western Canadian farmers”.
That brings me to the point of this gag order. The minister says that I called him a Fascist for denying them the right to vote and then imposing this gag order. I did not call the minister a Fascist. I said it was like Fascism to deny them democracy. I said that Mussolini would be proud the way the government introduced this gag order over Canadian farmers because it is an unfair fight. It is an issue of natural justice.
We have misinformation abounding or information with which we disagree. The Canadian Wheat Board claims to have other evidence to the contrary, but it is not allowed to bring it into this public debate about the future of the Wheat Board. How can that be seen to be fair?
Let mention a couple of the facts that we would enter, and I am sure the Wheat Board would make public if it were allowed to. One study found that in 2001 farmers got about $10 per tonne more under single desk selling than they would have otherwise received. That is a study by a Dr. Richard Gray. I would be happy to table that.
Another study, the Kraft-Furtan study in 1997, showed the benefit from single desk selling at $265 million per year. Again, we would like to promote those figures as opposed to the figures we heard from the parliamentary secretary, who said that farmers lost up to $400 million a year by single desk selling, I believe.
Another earlier study by a Dr. Andrew Schmitz showed that marketing through the Wheat Board increased the returns of barley producers by $72 million a year.
The Conservative government would have to admit that there is a body of evidence on the contrary of the position it is tabling. How is it anybody's best interest to deny the Wheat Board what I would see the legitimate right to make its case and to have its argument known. It is a bit like a boxing match where we have one guy with his hands tied behind his back. In nobody's mind could that be viewed as even remotely fair.
There are things that we could challenge about the parliamentary secretary's comments. I have a quote from Hansard where he said, “In fact 60% to 80% of the farmers do support change, I am not sure why 20% to 30% of the farmers should hold the other 70% captive”.
One cannot get away with that kind of thing without being challenged. If the Canadian Wheat Board is being denied a voice, we will be the voice for it. I serve notice right here that we will be dedicating our time, between now and whenever the government plans for the axe to fall, to make the case for the Canadian Wheat Board and to fight the government if it intends to tear down this great prairie institution.
Nobody should want to go back to the bad old days, least of all a party that says that it represents the grassroots farmers. I used to deliver papers in the rich part of Winnipeg when I was a kid. Virtually every one of those mansions was built by the robber barons, the grain barons, who used to systematically rip off the prairie farmer. Those mansions were built on the backs of prairie farmers who could not get a fair price for grain, so they started to act collectively and cooperatively.
Maybe that is what the Conservative Party has in opposition, that it is ideologically opposed to acting collectively. It is against public auto insurance, unions and that kind of action.
Farmers banded together to protect their own interests, and that is a good thing. It was a survival thing and an issue of basic fairness. Since 1943, when the Wheat Board was founded and given it its single desk monopoly, they could get a fair price, compete on the world market and get the prices because its was a superior product.
Also, because I come from the province of Manitoba, the future of the Port of Churchill is in serious jeopardy because the grain will be sold south. It will be mixed with the inferior American product. We will lose the commercial identity of our superior Canadian wheat product, and that will be to our lasting detriment as well.
I am happy the minister stayed to listen to the speeches. I beg the government to reconsider this idea. There are consequences that go far beyond living up to the campaign promise that Conservatives made to their base. Clearly, there is a legitimate pocket of farmers who do want the Wheat Board dismantled, or at least a dual marketing system. However, it is a more complex issue than that.
We remember the bad old days on the Prairies, when an individual farmer had virtually no bargaining strength in terms of trying to sell product to the Paterson's and the Cargill's and whomever would be dominating and controlling these things. Maybe Cargill is a bad example.
In our experience, the Canadian Wheat Board is the best opportunity to get a fair price for the product. I cannot argue enough that we need to defend this great prairie institution for all those compelling reasons.
Let me go back to the directive that the minister put forward, what we are calling a gag order.