Mr. Chair, it is a pleasure to rise tonight and represent the constituents of Battlefords--Lloydminster in this ongoing contest we have with how we keep farmers on the land.
Mr. Chair, I will be splitting my time with the member for Bruce—Grey—Owen Sound and I would ask that you let me know when I am getting close to the end of my time.
Agriculture has been the backbone of every civilization for 6,000 years. In the last century technology has propelled Canadian agriculture from a subsistence activity to the point that each farmer can now feed 130 people. Our total output has increased by 350%. There will always be a Canadian agricultural sector. We are going through some really rough times but we are resilient. We will survive.
What is the key to our future in which we draw younger generations who will want to participate and present generations can make a decent living and ensure growing prosperity? One major strategy that has been talked about is the move from low cost high volume commodities to the production of high valued goods derived from agricultural products. Crops can now be made into fuel, industrial compounds, building materials, plastics, pharmaceuticals or a multitude of products we have not yet imagined.
Canada must use this opportunity to move to the production of high value speciality products either as food, fuel or pharmaceuticals. The future of Canadian agriculture in part lies in making that shift to a biobased economy. Biomass production addresses three consumer concerns: health, energy security and environmental sustainability. Studies show some pulse crops and flax can reduce the risks of heart disease, diabetes and cancer.
The government has committed $3.2 million into Pulse Canada's pulse innovation project. The idea is to kickstart a partnership of industry, producer research and government to bring new and better products to our domestic and foreign markets. We are offering the same support for soybeans, potatoes, dairy and even maple syrup.
We can no longer afford to commit a million dollars on paper and find at the other end that the producer only saw 40¢ on the dollar or that some lawyers or consultants got fat contracts while researchers spent two years trying to get six months worth of grants on their own.
The government is prepared to streamline processes, direct real money to the source and let the producers, innovators and marketers take their ideas all the way to that production line. If Canada had committed to ethanol and biodiesel when we talked about it years ago we would of course been that much further ahead. Countries like Brazil that started in the mid-seventies are now light years ahead of us.
We must take the approach that the marketplace be flexible and innovative, that the government is there to facilitate, not dictate.
The International Energy Agency predicts that the world will need 50% more energy by 2020. We know that India and China can certainly use access to cleaner burning fuels as they develop their economies.
The government has pledged to ensure that all motor vehicle fuel in Canada will contain an average of 5% renewable fuel content such as ethanol and biodiesel by 2010. This will require 8 million tonnes of grains and oilseeds.
Not only can we reduce emissions but there is a positive energy balance in that situation. Combusting ethanol produces nearly twice the energy required to produce it and biodiesel is even higher than that. By 2010 the production of 1.4 billion litres of ethanol will displace 1.2 billion litres of petroleum based gasoline. That is great for the environment.
The new Conservative government faces many unresolved issues of the recent past and many choices for the immediate future. We will support research, facilitate market access, open up opportunities and relieve many regulatory burdens for producers.