House of Commons Hansard #81 of the 39th Parliament, 2nd Session. (The original version is on Parliament's site.) The word of the day was producers.

Topics

Agriculture and Agri-FoodCommittees of the HouseRoutine Proceedings

12:10 p.m.

Liberal

Wayne Easter Liberal Malpeque, PE

No, they are not surprising.

He is the member who said, either during or prior to the emergency debate on hogs and beef that we had in February, “money is flowing as we speak”. The fact of the matter is, the money was not flowing and the member knows it.

He went on at length about putting Canadian farmers first. When the Government of Canada is allowing a regulatory regime that gives our international competitors a price advantage in the marketplace versus our own producers, is that putting Canadian farmers first? For example, the specified risk material, our inspection fees costs and our total regulatory regime, is that putting Canadian farmers first or is that putting them at a disadvantage? I would like an answer to that question.

The hon. member is the parliamentary secretary to the minister of agriculture. I proposed to him in earlier remarks, and the minister failed to respond to it, but on the circovirus question, the hog industry is in worse shape now than it was prior to the announcement, and I do not even blame the government for this part of it, I will admit, but it actually is.The prices do not look like they will be there as quickly, but the reference margins have to be made to work.

For people especially in the Ontario pork industry that I met with last weekend, who had a disease problem, and I do not want a commitment here today, although I would like one, is the government at least willing to look at factoring out that circovirus disease so that the reference margin would be there as if they would have produced normally? That would make a huge difference to producers.

Agriculture and Agri-FoodCommittees of the HouseRoutine Proceedings

12:15 p.m.

Conservative

Guy Lauzon Conservative Stormont—Dundas—South Glengarry, ON

Mr. Speaker, I am really confused by that member who used to be the parliamentary secretary to the minister of agriculture.

I think the biggest problem with members on that side of the House is their lust for power. They want power desperately. They had power for 13 years. That member and the former Liberal government had all the opportunities in the world for 13 long years to address the problems with agriculture. We heard it repeatedly last night when the minister spoke with grassroots farmers. They had dialogue with the former government. They talked and talked, just like the member for Malpeque continues to talk and talk.

If he really cared about farmers, if he really wanted to help this government move forward and help the Canadian agriculture industry, then instead of sitting down for one-third of the votes, he would stand up and vote for his constituents and for farmers.

Agriculture and Agri-FoodCommittees of the HouseRoutine Proceedings

12:15 p.m.

Liberal

Jean-Claude D'Amours Liberal Madawaska—Restigouche, NB

Mr. Speaker, I am extremely proud to speak to this afternoon's debate on the income crisis in the pork and beef industry.

It is important for me to rise in this House and speak to this matter, as I did in the emergency debate a few weeks ago. Why is it important? Because this situation is so important to my riding of Madawaska—Restigouche. This is a harsh reality for the producers and farmers there.

Often we think this crisis only affects those who live in rural areas, but it affects the entire country. People in my riding and across the country provide very high quality food for the Canadian consumer.

We also have to realize that these farmers and producers are going through a major crisis that can prevent them from providing that very high quality food for the Canadian consumer. For them this crisis is so significant that a number of them are considering simply leaving agriculture, in a wide range of sectors, but mainly in the beef sector.

Why is this happening? People are feeling abandoned by the federal government. They know they have to provide high quality food to the public, but they are facing a number of challenges. One of those challenges is foreign competition. Take the beef industry for example. Beef can be imported into any region of the country, from almost anywhere.

Before I go on, I would like to point out that I will be sharing my time with the hon. member for Saint Boniface, who will certainly have the chance to explain what kind of support people from urban centres would like to see given to producers in rural areas.

As I mentioned, producers are facing a number of challenges. One of those challenges is certainly competition, but there are others. We must help our producers. The wealth of rural areas began with agriculture. The settlement of Canada and all our regions began with agriculture. We must be able to continue to support producers and show them that their federal government will support them not only today, but also in the future. They are currently going through tough times.

Federal government support is so piecemeal that we wonder why the government is acting this way.

Various factors are behind the crisis these people are going through. We know that feed costs are on the rise. Beef producers have to feed their animals and fatten them up. The cost of feed has gone up. The price of gasoline and diesel has also risen.

As I mentioned in the emergency debate, the sky is the limit. We know that the Conservative government is singing the same tune as when it was in opposition. The Conservatives believe that the market should take care of everything. But we need to look closely at the situation. Consumers are not the only ones paying the price. The people at the grassroots level, our farmers, are the most affected by the crisis.

Gasoline is certainly another factor, but there are also energy costs. These are significant costs for producers. For a farmer who heats with oil in winter, costs are going up steadily. It is incredible.

Another factor we have to consider is the rise in value of the Canadian dollar, which is having a detrimental impact on our farmers. At present, the higher Canadian dollar and competition from foreign products are two of the things that are hurting our farmers the most.

Here is the government's response to the report of the Standing Committee on Agriculture and Agri-Food. I will read it in English, if that is all right, because I have the English version here:

In order to return to profitability, the beef and pork sectors will need to adjust to the realities of higher feed grain prices and a stronger dollar.

That is easy to say. Everyone agrees that there would be no problem if producers were able to get better prices for their animals, because of the rising price of grain, the rising prise of gas and the strength of the Canadian dollar. However, that is not the reality.

The government made its response public on April 9, 2008. It was not surprising to hear such remarks. But what was even worse were the comments made by the Prime Minister a few weeks prior to that, specifically because of the strength of the Canadian dollar. The Prime Minister made the comments during a forum he was attending in Toronto. He said that, unlike the opposition parties, he does not believe that every problem that arises requires immediate financial intervention from the government. The Prime Minister maintained that it is a mistake to believe that every problem demands high-cost intervention or subsidization.

How can the parliamentary secretary and the Minister of Agriculture and Agri-Food rise in this House and tell us they are here to support Canadian farmers who are facing a crisis at this time for a number of reasons, including the strong Canadian dollar? Yet only a few weeks ago, rather than saying that things are not going well for the economy, and that the Canadian dollar is one of the problems affecting our economy and our farmers, the Prime Minister turned around and said that the government would not automatically be there to help our citizens and our industries through subsidies.

What is the message? Once again, we are hearing mixed messages, as I said recently. The government stands up in front of Parliament and in front of the cameras and says one thing, but when it comes time to act, it does the opposite.

The proof is that since the Conservatives came to power, we have seen them implement programs here and there and make hasty announcements for farmers because they realize that they have made a mistake. They make another hasty announcement because they realize that they have not necessarily targeted the right group, and they are not actually helping the people who need it in the current circumstances. And yet this has changed nothing. I recently participated in the emergency debate, and afterwards farmers told me that what I said is true—they are in the middle of a crisis, but there is no help for them.

I remember the program that was announced by the Prime Minister on March 9, 2007, again, at the eleventh hour. He said that he would help farmers. During the emergency debate, I gave the example that producers in my area were receiving 26¢ per year for each head of cattle they owned. Does that seem like assistance that will offset the increase in feed costs and the rising Canadian dollar? In any case, with 26¢, these farmers could not even think about putting a litre of gas or diesel in their vehicle.

How do you think they will survive? It is not a matter of coping but of surviving. That is the challenge farmers face today. If we do not want to lose them, as has happened in other industries, we must ensure that the Conservative government finally wakes up and gives our farmers the money they need to make it through this crisis. This will also reassure Canadians about the quality of food they put on the table for their children. This food will be of excellent quality and will meet Canadian standards, compared to foreign products that meet foreign standards, which are often inferior to ours.

Let us help our farmers once and for all. Had the government done its job, we would not be debating this issue, we would not have needed an emergency debate and farmers would not be telling me that they earn 26¢ per head of livestock per year in times of crisis.

The Prime Minister has spoken. He has said that the government does not intervene in a major crisis. He does not believe in subsidies. Yet other countries heavily subsidize their industries and send us goods of inferior quality. Why are our farmers not receiving the help they deserve today from the federal government?

Agriculture and Agri-FoodCommittees of the HouseRoutine Proceedings

12:25 p.m.

Liberal

Anthony Rota Liberal Nipissing—Timiskaming, ON

Mr. Speaker, I listened to my hon. colleague speak and he made many good points. I listened to the members from across the floor and I heard them blame everyone else. They said they have taken some steps, a little here and a little there, but we do not really have a major program in place to support our farmers.

Members from across the floor said they have gone to meet farmers. They talked to them, but they did not listen to them. That is what is missing on the other side of the House.

They also mentioned something else: statistics. Statistics are fine—we can invent all sorts of numbers—until the tragedy strikes us personally, as a Canadian or as a farmer. Only then do we see the difference. Then we are no longer a statistic; we are the ones suffering from the tragedy facing the agricultural sector.

The hon. member also mentioned the price of 26¢ per animal. What a joke. That does not amount to much.

I would like the hon. member to tell me a little about what is happening in his riding. In fact, the situations in New Brunswick and northern Ontario are quite similar. They are similar to what seems to be happening everywhere in rural Canada. Yes, the government is leaving the economy to its own devices, and that is not always the right solution. It is not that easy. If we leave the economy alone, things will not happen on their own. We must help.

What is the hon. member's response?

Agriculture and Agri-FoodCommittees of the HouseRoutine Proceedings

12:25 p.m.

Liberal

Jean-Claude D'Amours Liberal Madawaska—Restigouche, NB

Mr. Speaker, I thank my colleague for that excellent question.

Earlier, I gave examples of what is happening in my riding. There is a problem at the grassroots level. My colleague said it well: is the government listening? No, it is not listening. It may be hearing, but it is not listening. What people say goes in one ear and out the other. Perhaps that is what is happening at present.

What are farmers telling me? First, the process they have to go through to get a little help from the federal government is far too complicated for the money they get in the end. Often, they pay more in accounting fees than they get at year end.

That is s serious problem. It means that the government's program has a structural problem. That is the first thing.

Farmers wonder why they should submit an application. They say that it has become pointless. They waste their time filling out forms and paying people and in the end they get peanuts, like the 26¢ a head I mentioned earlier. So why submit an application? They get discouraged and give up. The federal government winds up keeping that money and does not invest it in farmers or people who need it.

Second, our farmers are saying that they can no longer survive. They are giving up farming and going into something else. Yet we need these people. That is the reality today.

The government just said that it is listening to farmers. How can it say it is listening to farmers when these people are getting 26¢ a head? The government members should sit down with the people in my riding and ask them whether they agree with the program and the money they get from the federal government.

The parliamentary secretary would be surprised to hear the opposite of what he said earlier, when he mentioned that he and the minister had met with farmers. He would be in for a big surprise in my riding. I invite them to take the time to come and meet with the farmers in my riding, and then they can tell me whether 26¢ a head is reasonable.

Agriculture and Agri-FoodCommittees of the HouseRoutine Proceedings

12:30 p.m.

Liberal

Wayne Easter Liberal Malpeque, PE

Mr. Speaker, I know the hon. member has a lot of supply management in his riding. That system is successful and it does provide income for producers in that supply managed system.

The fact of the matter is a chicken costs consumers about $4.99 a kilogram, while the farmer really gets only $1.20 per kilogram. Under that system, it is a system that works. It is so different than the hog and beef sector.

We hear all the rhetoric from the government on supply management. I have met with producers in the member's riding. Do they really trust this government in terms of its alleged support?

Agriculture and Agri-FoodCommittees of the HouseRoutine Proceedings

12:30 p.m.

Conservative

James Bezan Conservative Selkirk—Interlake, MB

Mr. Speaker, I rise on a point of order. We are here debating the crisis in the cattle and hog sector and the member for Malpeque wants to talk about poultry. We are definitely off topic if we are going down the road of poultry. We need to be talking about the difficulties facing our hog and cattle producers across this country.

Agriculture and Agri-FoodCommittees of the HouseRoutine Proceedings

12:30 p.m.

Liberal

Jean-Claude D'Amours Liberal Madawaska—Restigouche, NB

Mr. Speaker, that is unacceptable. That proves that the Conservative member opposite does not understand that the crisis is happening everywhere and that agricultural producers in general, including those who need supply management to survive, do not trust the Conservative government.

Of course the Conservatives do not want anyone to talk about this. When they talk to the media about it, they say that they are protecting producers, but when the time comes to negotiate and to stand up for the interests of producers on the issue of supply management, the government is nowhere to be found. I understand why the Conservative member does not want anyone to talk about it: because the Conservatives are not doing anything to help agricultural producers, period.

Agriculture and Agri-FoodCommittees of the HouseRoutine Proceedings

12:30 p.m.

Liberal

Raymond Simard Liberal Saint Boniface, MB

Mr. Speaker, I am pleased to speak to this motion today.

I do not pretend to be an expert on agriculture. I realize there are people on both sides of the House who are either from farming communities or are farmers themselves who probably know a lot more, and my colleague from Malpeque is one of those people. I have seen him in action as he has gone across the country. He has been to Manitoba and has spoken to people to get better informed on what is going on.

This is not a fixed industry. New changes are always happening. I have heard my colleague from Malpeque offer encouraging support to a lot of these producers, which is why I thought it was important for me to be here today and express my opinion.

Even if I am not from a farming community, I do understand the importance of the agricultural sector to Canada. Members would be surprised at how many people call us in the city of Winnipeg telling us that we should be supporting our agricultural producers. I am sure it is the same thing right across western Canada and probably right across the country. It is important for people to hear from urban members of Parliament on these issues and it is important that we debate these issues in the House.

We all have relatives who have tried to eke out a living in the farming industry over the years. My father-in-law, who was a dairy farmer in Manitoba, worked 18-hour days, like most farmers probably. It is not easy work but, if we were to ask farmers, most farmers would tell us that they enjoy every minute of what they do. They have no regrets despite the hardships, the ridiculous hours and all the worries they go through. It is a way of life for them.

If we were to ask farmers the same question today, I am not sure we would get the same answer. Young people can no longer afford to take over the family farm or they simply do not want to go through what their parents have gone through. Should we blame them? They might actually have a point.

Cattle producers suffered through an absolutely brutal time with the BSE crisis in 2003. They were just starting to recover when the Canadian dollar strengthened and feed prices increased and once again they are facing extremely difficult times.

The cattle and pork industries are in crisis and, unfortunately, what the government is doing is too little too late.

Once farmers lose the will to continue to do something they have loved all their lives, what do we do? I think we are at the point where farmers are starting to give up on a livelihood they have enjoyed for centuries. How many farmers do we know who have kept on doing what they are doing because they love it, even though they just barely make a living?

I think farmers feel they deserve better. They are feeding the world and they deserve to be recognized for the contribution they make. They deserve to do better than just eke out a meagre living and hope to survive until the next year. We are in a crisis because farmers and producers have decided they have had enough. There is no doubt that some very serious structural changes need to take place soon.

Pork producers have been coming to us over the last two years begging for our support. They came to the industry committee and spoke to us about what was happening to them on a daily basis. Producers are losing their farms. They are not able to move their product. They cannot pay their bills. They needed help immediately, not in two months, not in three months, not in six months and not in a year. Farmers needed help when they came to us some time ago.

During the prebudget debates, I argued aggressively that once a hog producer lost his farm, he or she would not come back. People cannot go to their bank looking to start over after they have given everything up. It is not that simple. Once we have lost them, they will not come back, which is something the government has forgotten.

I have been told, but it has not been confirmed, that over 50% of the industry in P.E.I. is already gone. Fifty per cent of a very vibrant industry is gone and will not be coming back.

Yesterday I heard a heart-wrenching story about a family I know very well in rural Manitoba. After generations in the hog producing business, the family went out of business. It was not for lack of trying because they were very smart business people, but they did what they had to do to survive.

I ran into one of the owners a couple of months ago who told me that his family had bought a store in Winnipeg in order to move some of their product. Talk about vertical integration. They were trying everything they could to survive. They are not people who are in the store business, but this is the extent to which they had to go to survive. We just heard this week that the business, which was a huge successful business some years ago in a small community in Manitoba, is closing down.

Those people are not beginners. They have been around for a long time. One can just imagine what will happen to any of the new businesses that may have started in this industry. There are hundreds if not thousands of examples like this across the country and they are not coming back.

The government has allowed a whole industry to be devastated because it did not take it seriously when it said that it needed help. I know the Prime Minister does not like to intervene and thinks that everything will fix itself. He says that we should let the market rule. We have seen the results of that flawed ideology in the manufacturing and forestry industries. W are now picking up the pieces of what is left of the forestry industry and anticipating a further hundreds of thousands of job losses in the manufacturing sector.

It is important to see that our grain sector is holding its own after many years of difficult times. Farmers have been selling their grain product at the same price for years. One of the major reasons they are now able to sell their product at a more reasonable price is because of the demand for biofuels. Unfortunately, this same demand is one of the reasons that the input costs of pork and cattle producers are increasing.

The time has come to analyze the whole structure of the agricultural industry. We cannot continue offering piecemeal solutions. As we have seen so clearly in the biofuels situation, they are interrelated. We cannot deal with one without analyzing the impacts on the whole industry. I believe that over the years we have failed to look at the big picture and, in fact, we have not given the agricultural industry the respect that it deserves. We have not recognized it for the contribution that it makes to our society as a whole.

Another reason that this motion is important is because it also impacts on the whole rural infrastructure. When farmers and producers are going out of business, guess what happens to the small grocery store, the garage, the hotel and the truck dealership in our small towns? The farmers are their lifeblood, so, yes, there is a crisis in the agricultural sector, but there is a very real risk that this crisis expands to the total destruction of our rural infrastructure.

How many small businesses have closed down because farmers are not buying their products? How many young people have moved to the larger urban centres for work? How many rural schools are having a difficult time attracting good school teachers because the towns are no longer interesting or dynamic places to live?

A small town in rural Manitoba has a pork producer who hires over 300 people. We never used to have towns that were, basically, one industry towns, but it is happening to some extent. We can just imagine what will happen to this small town if that producer is forced to close down.

I am not sure if the government has realized the extent of this crisis. We have farmers who no longer want to farm. We have pork and cattle producers going out of business on a daily basis. We have a rural infrastructure already very fragile and unstable because its youth are heading to large urban cities. I am not sure they can take much more.

We should be immediately reviewing and analyzing the agricultural industry as a whole and the impacts on the rural infrastructure. We should take farmers seriously when they say that they need assistance. They are some of the most independent business people in the country and, therefore, a cry for help should be taken seriously.

This new program proposed by the government is, for many farmers, including my friends in rural Manitoba, too little too late.

Agriculture and Agri-FoodCommittees of the HouseRoutine Proceedings

12:40 p.m.

Conservative

Rick Norlock Conservative Northumberland—Quinte West, ON

Mr. Speaker, in his speech, my friend mentioned the issue of biofuels and how that affects agriculture and food prices.

I would like to submit, both for him and for many Canadians, the tremendous good that biofuels will do for not only our farming community but for our environment and for other industries in Canada.

I do not know if many people are aware that in 2007 food prices increased by 4%. While we want to have reasonably priced food, it should not be at the expense of our farming community. I bring that 4% up because oil prices in the past year have jumped nearly 100%. At the same time, the U.S. produced a record amount of ethanol from corn. The U.S. increased its surplus of corn to more than 1.4 billion bushels, and that was in a record ethanol year.

We need to know that farm marketing costs now account for about 80% of the total cost of food. Marketing costs are different between farm value and consumer spending for food at grocery stores and restaurants.

The other evening I was speaking to some folks in the automobile industry when one of the fellows said that what the government was doing with regard to ethanol and the amount of corn and other farm produce going into ethanol, will double the price of breakfast cornflakes. For those who think it will, corn amounts to less than 5% of a box of cornflakes.

I think folks need to realize that ethanol and biodiesel will be of great benefit to our farmers, not a negative, and they will be of benefit to all Canadians.

Agriculture and Agri-FoodCommittees of the HouseRoutine Proceedings

12:40 p.m.

Liberal

Raymond Simard Liberal Saint Boniface, MB

Mr. Speaker, if the member were to look back at my speech, he would see that what I said on biofuels was that I was very pleased that farmers were finally making a living selling their grains at a reasonable price. I think biofuels could be very advantageous in the future.

What I also said was that when we look at the agriculture industry we cannot look at it piecemeal, We need to look at the whole structure. When we fund biofuel projects it impacts on something else.

We have actually taken agriculture for granted for too many years and I think it will come back and bite us, and I think we are there.

On the second issue, the hon. member is right. We should be looking at examining the whole food chain and who is making what money in the whole chain. This is long overdue, and that is exactly what my speech was about. It was about re-examining the whole agriculture industry from A to Z, which I do not think has been done for a long time. I think we are all guilty of that and the time has come to look at that.

Agriculture and Agri-FoodCommittees of the HouseRoutine Proceedings

12:45 p.m.

Liberal

Wayne Easter Liberal Malpeque, PE

Mr. Speaker, the member for Saint Boniface mentioned the difficulty for the producers in Manitoba who have set up a wiener-pig business and are selling it to the United States. With the country of origin labelling coming in the United States, that market has basically dried up.

I believe that many of us in the House, although I am not sure about those on the government side, believe the country of origin labelling is a violation of the trade agreement. People need to euthanize these pigs because they have no barns to house them, no feed to feed them and, if they did feed them, they would be at a loss in this country.

Therefore, the Americans have broken their contract and, we think, have violated the trade agreement. Should the Government of Canada be standing up to the United States and challenging them under the trade agreement? Should they--

Agriculture and Agri-FoodCommittees of the HouseRoutine Proceedings

12:45 p.m.

Conservative

The Acting Speaker Conservative Andrew Scheer

The hon. member for Saint Boniface has about 30 seconds.

Agriculture and Agri-FoodCommittees of the HouseRoutine Proceedings

12:45 p.m.

Liberal

Raymond Simard Liberal Saint Boniface, MB

Mr. Speaker, some farms in Manitoba right now are losing $40,000 a week. If we add the country of origin labelling to this, it will be a disaster.

Therefore, of course we should be doing it and we should be doing it now. We should not wait until the U.S. imposes this and all of a sudden we are reacting to it, because then it will be too late. We will have more closures and more businesses will not be starting up again. Once they close, that will be it. We will have lost them forever.

Agriculture and Agri-FoodCommittees of the HouseRoutine Proceedings

12:45 p.m.

Conservative

James Bezan Conservative Selkirk—Interlake, MB

Mr. Speaker, I am glad we are here today again talking about the crisis facing our livestock industry. We are talking about the cattle and hogs, although the member for Malpeque was talking about poultry. I think he got a little confused because “pork” does refer to itself as “the other white meat”. He has used the term “pigs fly”. Maybe that is why he decided to look at the feather industry.

We are talking about the great difficulties our facing ranchers, cattle feeders, hog producers and everybody in that whole chain. Not only is it hurting these producers, and we have seen people in my riding and across the country close their doors and walk away from their businesses, which are often multi-generational family farms, but it is hurting the local communities and the feed mills. There is no doubt that the entire support system and infrastructure, which is tied to the livestock sector, are going through the same pains and throws. It could actually change the face of agriculture across the country.

My riding has well over 2,500 ranches and a number of hog barns. The provincial government in Manitoba has put a moratorium on more barns being built in our area. This is unfortunate because there are still a lot of advantages, in the right environmental circumstances, to expand the hog industry. However, there is no doubt that its announcement and decision was made at a time when our hog industry was going through some very difficult times.

We have to remember that what has happened has accumulated over a number of years. On the cattle side, it all started off in 2003 with the BSE crisis. My family and operation felt that hurt severely. We seemed to be getting out of that in the last couple of years, when all of a sudden prices started to plummet on our cattle and hogs and grain prices started to increase, which was great news for our grain and oilseed producers across the country.

However, people are trying to make all sorts of excuses on why grain prices are going up. We hear all these concerns raised around the world about the price of food. We have to realize that the whole global marketplace on world grain has changed. We have growing economies in India and China. They definitely are more affluent now and want to buy higher quality foodstuffs. They are buying it up at record levels. On top of that, we have had some very difficult growing conditions across most of the major growing countries.

We know that this year the U.S. wheat crop had a lot of winter wheat killed. They are rating a lot of those fields down there at only 50% good, which is a terrible situation, and that is helping push wheat prices up again. Feed wheat, a major ingredient in hog feeding, is being pushed higher as well.

For three years in a row, there were major droughts in Australia and very difficult harvesting conditions last year in Europe. Even western Canada came in with less than 78% of a normal crop. Therefore, there was not enough grain out there, and these prices are pushed higher.

I do not see grain prices getting softer. World carry-over stocks are at all-time lows. Since they have been calculating how much coarse grains are in the world on inventory, that number has consistently fallen over the last 10 years, and the grain trade, for the most part, ignored it. Now all of a sudden they realize there is increased demand for food products out there and that has pushed the value of these grains through the roof.

People have made the biofuel argument that we have taken food for fuel. As was just pointed out by my colleague, there is a lot of ethanol production in the U.S. The Americans are increasing their output of corn production and exporting more of it. This has been good news for countries that are buying food. They can get more corn from the United States and other countries that have made some major gains in their research and development of new varieties and have enhanced their productivity.

When we look at other products such as rice, and this is the big concern in Asia where prices have more than doubled, people say that it is biofuel. We know rice is not used in biofuel production. We know the land base and the paddock system they have with the rice paddies cannot grow anything else but rice. It is not competition for land; it is that the world population is growing, people are more affluent and they are buying more and more grain.

We also know that in Canada, the big kick in the teeth for us has been the dollar exchange rate. I guess we all have to wait to see how this will play out. As long as the U.S. economy is slumping, as long as commodity-rich countries like Canada are exporting oil, grain and even our beef and pork, we are going to see a lot of people buying Canadian dollars rather than U.S. dollars, and that is really what is driving this exchange rate.

Ideally I would love to see the dollar come back down under 90¢. We are going to have to wait and see if that is ever going to happen.

As chair of the agriculture committee, we have a great group of people from all parties who are sincere and want to ensure we do the right things for agriculture. We put together a great report. We received a response on the impact of the crisis on the livestock sector, and now a really good response from the minister.

One of the things we are looking at and studying right now is high input costs. That is really addressing some of the concerns raised by producers across the country. We are doing the research and hearing from witnesses about why fertilizer prices and fuel prices are going so high. We also want to find out if there has been any price gouging or unnecessary profit-taking in certain areas of the country. We are doing a comparison on what is happening in western Canada versus eastern Canada and the corresponding areas along the Canada-U.S. border, in the U.S. Midwest and in the eastern U.S. as well. We want to find out what is happening so we can make proper policy recommendations to the government.

I hear from producers all the time in my riding. I am meeting with farm organizations and producers from right across the country. One of the things I hear from producers, the ones who are committed to being in the industry and who are hurting, is that they are in it for the long haul and they want to know what the future will be. They all realize we will have to change our status quo.

We may not be able to conduct business the way we have for the last 25 or 30 years, building up our reputation as quality beef and pork producers. which is recognized worldwide.

I have been fortunate in that I have been able to go out and make some announcements on behalf of the government, trying to help the industry along, looking at new opportunities. The beef value chain is one. There is a great round table discussion about how they do a better job marketing, not only in Canada but around the world.

We gave some money to the beef value chain to look at developing an omega-3 beef. It has been very successful in the egg industry and in the fish industry, especially with salmon. Now it is time to look at whether we can take those same good fatty acids, those omega-3s and high linoleic acid, identify them and get them increased in the content of beef. People then would not only buy beef for its great taste and ability to enhance their nourishment at the kitchen table, but because a really good claim could be made on the health side of it. Not only is beef and pork high in iron and B12, but there is also an opportunity here to add omega-3.

We are also looking at different rations. At the Brandon Research Centre, we have put together a project with industry and the provincial government to look at different ways of feeding cattle, trying to cheapen up the rations that we are dependent upon, which right now are really grain-based, and moving away to more forages. Maybe there are other crop residues. There is all the distillers' grains coming out of the ethanol industry as well as all the canola meal and soya meal coming out of the biodiesel industry.

How do we take these new feedstuffs, which are being produced on a larger scale, and cheapen our rations so the rancher who has a cow calf operation and sells his calves on the marketplace can get a good price for his calves that come out of the auction market, as well as improve profitability for the feedlots that finish the calves and bring them to the consumer?

I have been fortunate over the last few years to ensure that I have always been in U.S. courts when R-CALF has tried to shut down the border on Canadian beef. I was at the latest one in February in Sioux Falls, South Dakota. One thing I found interesting was the lawyer for R-CALF, the judge and the USDA lawyers all stated publicly on the record that Canada had a better system for the mitigation and monitoring of BSE than the U.S. has.

One of the reasons R-CALF talks about shutting down the border is because it does not have a good system compared to Canada. It often mentions the enhanced feed ban on our SRM removal techniques and the program we have here as being far superior to what is done in the United States.

R-CALF also talks about the traceability of our animals because we have good animal identification, with radio frequency ear tags, that has helped to improve the entire industry to monitor and move forward with the protection of the consumer, as well as the health of our livestock industry.

We have been talking about the next big challenge, and one is coming up that is going to be incredibly difficult for the cattle and hog industries. It is the country of origin labelling requirements that are coming into effect in the United States. It has created a pile of confusion within the United States market. It is unsure of how it is going to deal with Canadian product, whether it was born here and raised in the United States, or bought here as a market ready animal and taken there to be processed into meat cuts or just buying Canadian product directly from our packers.

There are different terminologies surrounding how it is going to be labelled. I think the U.S. is coming to some decisions on how those labels are going to work. However, because it has taken them so long to define how it will move forward, it has put the whole industry in the lurch. Now we hear from packers and hog finishers in the United States that they will not buy any more Canadian hogs, or piglets or feeder calves. They are concerned that this will not allow them to market their product effectively when they try to sell it to local packers and when it ends up on the retail level in the United States. That segregation and segmentation of the industry is going to be incredibly difficult and detrimental.

I wrote a letter on behalf of the agriculture committee to my counterparts in the United States, the chair of the U.S. agriculture committee, as well as the chair of the U.S. Senate agriculture committee. We also contacted both the House of Representatives and the Senate. We said that we expected the new U.S. farm bill to include that the country of origin labelling had to be trade compliant under NAFTA and the WTO. We wanted to ensure the entire U.S. farm bill, as it ties to subsidies for farmers, would not distort production or the marketplace. We expect the new U.S. farm bill to be WTO and NAFTA compliant as well.

We have taken that stand as a committee. I know the minister, in discussions with his counterpart in the U.S., has carried the same message, that the United States had better ensure that any policies it develops will be compliant. If they are not, when they come into effect, when we can start to take trade action against it, there will be a strong response from the Government of Canada. I can assure everyone of that.

I have had discussions with the hog and cattle producers who have come to my office, who I meet in coffee shops or who are at the various events I attend across my riding. They need some help and they recognize that. The government has provided that help through some of the things we have done through the kickstart program, the previous CITI funding and the changes made to the cash advance program, as well the advances to the old CAIS program and the new agristability program. They have been helpful.

They are still asking for more measures but, at the same time, they want the measures to be trade compliant as well. They do not want to have subsidies thrown at them only to have countervail actions created by the United States, the Europeans, the Australians or the Japanese. I have heard from the other countries that they are watching what we do here in relation to our farm programs and how we help the struggling livestock sector.

The farmers are telling me that they want to make sure they have a future. That future has to be based upon the marketplace and they want that assistance moving forward in developing the marketplace.

I am glad to be part of a government that is signing trade agreements around the world and negotiating more trade agreements, so that we can get that market penetration in countries where they keep their tariffs extremely high on Canadian goods. We want to bring those down, so that we can enhance the opportunity for our hog and cattle producers as well as the packing industry to make money in those more lucrative markets, whether they be in Europe or the Pacific Rim. We are looking at those alternative markets.

We also know that we need to work with industry in developing their market enhancement and brand naming, and taking those things forward.

We are looking forward to all the proposals that have been put forward by the cattle and hog industries, as well as the Canadian Federation of Agriculture. We will try to capitalize on some of these ideas and make sure that those types of initiatives will generate the revenues back to the farm gate.

There has been a lot of work done on this report. It took us quite a bit of time through the fall to put it together. It has been one that was well received in the industry. It is one where I believe the actions taken by the government have largely addressed the concerns that we have raised.

We have to remember that in our actions that we take here that they are often related to not only our partnership with producers but also our partnership with the provinces. Any changes that we make to farm programs impact upon the provinces. Of course, they have a say in how we move forward with the overall agriculture policy framework, with the major one being the AgriStability program.

Agriculture and Agri-FoodCommittees of the HouseRoutine Proceedings

1 p.m.

Conservative

The Acting Speaker Conservative Andrew Scheer

It being 1:05 p.m., it is my duty to interrupt the proceedings at this time and put forthwith the question on the motion now before the House.

Is it the pleasure of the House to adopt the motion?

Agriculture and Agri-FoodCommittees of the HouseRoutine Proceedings

1 p.m.

Some hon. members

Agreed.

Agriculture and Agri-FoodCommittees of the HouseRoutine Proceedings

1 p.m.

Conservative

The Acting Speaker Conservative Andrew Scheer

(Motion agreed to)

Agriculture and Agri-FoodCommittees of the HouseRoutine Proceedings

1 p.m.

Conservative

The Acting Speaker Conservative Andrew Scheer

The House will now resume with remaining business under routine proceedings. We are under the rubric “Motions”.

Budget Implementation Act, 2008--Bill C-50Routine Proceedings

1:05 p.m.

NDP

Olivia Chow NDP Trinity—Spadina, ON

moved:

That it be an instruction to the Standing Committee on Finance that it have the power to divide Bill C-50, An Act to implement certain provisions of the budget tabled in Parliament on February 26, 2008 and to enact provisions to preserve the fiscal plan set out in that budget, into two or more pieces of legislation.

Mr. Speaker, the NDP is determined to take every possible step to stop the Conservatives' irreversibly damaging immigration reforms.

This is the NDP's second attempt to stop the damaging reforms from passing in Parliament and I am proud to stand here again today in the spirit of cooperation to split this bill, and give it the study and amendments it so desperately needs.

A country's immigration policy can build strong communities, an educated and skilled labour force, and a vibrant and sustainable economy. A failed policy, however, can lead to division, resentment and transient communities of single labourers who have no prospects for citizenship, family or community.

Immigration policy that does not integrate immigrants into Canadian society, into our cities, our schools and our economy, undoubtedly leads to division in our society. When kids do not get to play together, the families are not connected and as a result the community is divided.

Canada's immigration policy needs to be much more than just about bringing cheap and skilled labour to Canada. Right now there are two streams. Skilled labour comes into Canada, but then Canadian government wastes their talents by not recognizing their degrees and certificates. As a result they cannot practise the kind of trade or jobs they are trained for. Another stream deals with temporary foreign workers which is basically cheap labour and this is what the bill is designed to do.

The Conservative immigration reforms would: first, give the immigration minister arbitrary powers to move people up or off waiting lists; second, limit immigrants the ability to reunite with overseas family members based on humanitarian and compassionate grounds; and third, let officials prioritize temporary foreign labour over family class and economic class immigrants.

What does this mean for Canada? It means lower wages for working families and it means that we will have divided communities.

It also means that tens of thousands of migrants come to work our land, our farms, wash our dishes, cook our food and pay taxes, but have no prospects of building a life in Canada. They have no prospects for citizenship, no prospect for building a family, a life and prosperous future in Canada.

There are 900,000 prospective immigrants facing really long waits, but the Conservatives' so-called solutions are just wrong. Their solution is to kick people off the waiting list and bring in temporary foreign cheap labour for their friends, especially in the oil sands. After all, the federal government approved over 40,000 temporary foreign workers in Alberta last year alone. That is a 300% jump from only three years ago.

What kind of Canada are we building if we are encouraging the growth of a program that brings to Alberta over 40,000 temporary workers with no rights, no families, and no future here in Canada? I just heard that Tim Hortons in Alberta brought in 100 workers from the Philippines, for example.

While the Conservative government ignores Ontario and Quebec's manufacturing crisis and does nothing to retrain the unemployed across Canada, it is in fact lowering wages and stalling economic prosperity for thousands of families. In manufacturing towns they are facing unemployment, whether they are in northern Ontario, southern Ontario, Quebec, and all across Canada.

Gil McGowan of the Alberta Federation of Labour said recently:

This is essentially a program that has been allowed to grow exponentially without addressing any of the very legitimate concerns that have been raised and without putting any of the necessary safeguards in place.

In an article in the Calgary Herald earlier this month, McGowan said:

The foreign workers program artificially allows employers to keep wages lower when employees are scarce, creates a lower class of worker, and will cause tensions between the temporary workers and local, permanent staff.

We are already seeing it.

Rick Clarke of the Nova Scotia Federation of Labour said yesterday in the citizenship and immigration committee that it is not fair to the workers being brought in, it is not fair for our economy, and it is not fair for those being by-passed because access to this program by employers is far too open. He called the program flawed because it allows employers to hire cheap labour without offering any long term benefits to the employee.

New Canadians make this country strong. Immigrants can either help to build thriving and diverse communities, and a 21st century workforce to compete with the world's best or we can use them, abuse them, and then send them home when we are done with them as the Conservatives' and the Liberals' policy will do.

The NDP said no to Conservatives' backdoor sweeping offensive changes and no to the massive expansion of temporary foreign cheap labour.

Instead, we want to ease backlogs by investing to increase overseas staffing in visa offices, increase immigration levels to 1% of our population, and change the point system, so people of all skills can come to Canada with their families and build inclusive, vibrant, healthy communities and neighbourhoods.

It is time for fairness in our immigration policy. It is time for living wages and family reunification. It is time for strong communities instead of weak, transient, and migrant ones.

However, instead of fairness, we get half truths, spin and a public relations advertising campaign at the taxpayer's expense.

The Conservative government said it is welcoming a record number of newcomers to Canada, but the reality is permanent landed immigrants to Canada dropped by 10,587 people. More shocking still is that while the numbers fell the Liberal and Conservative governments increased their admissions to an extra 24,000 more temporary workers between 2003 and 2006. Of course, we know they do provide cheap labour and drive down wages.

The Conservative government said that there are 925,000 people in the backlog and sweeping immigration reforms in Bill C-50 are designed to ease that. However, the reality is that the legislative changes will not come into effect until after February 28 of this year and will have no impact on the backlog of that said 925,000 applicants.

The Conservative government said that sweeping changes are needed to speed up the processing of applications. The reality is that giving the minister the power to discard applications that meet all immigration requirements is unfair, it is arbitrary, and it is open to abuse.

The Conservative government said that measures are designed to attract and retain foreign students. That is in its PowerPoint presentation, taking it on the road and giving it to everyone who would listen. The reality is that there is no clause in Bill C-50 that addresses foreign students applications.

The Conservative government said that there will be no discrimination as the Charter of Rights and Freedoms will be respected. The reality is that the charter does not help potential immigrants trying to come to Canada.

The minister's instruction is to fast track foreign workers, skilled workers from Mexico as opposed to parents coming from India, the charter cannot prevent--

Suspension of SittingBudget Implementation Act, 2008--Bill C-50Routine Proceedings

1:10 p.m.

Conservative

The Acting Speaker Conservative Andrew Scheer

Order, order. We are going to suspend the sitting of the House right now. It seems like the fire alarm is going off. Members should leave the building and we will come back at an appropriate time.

(The sitting of the House was suspended at 1:14 p.m.)

(The House resumed at 1:38 p.m.)

Sitting ResumedBudget Implementation Act, 2008--Bill C-50Routine Proceedings

1:35 p.m.

Conservative

The Acting Speaker Conservative Andrew Scheer

Order. That was a new one on me.

The hon. member for Trinity—Spadina had the floor when the fire alarm went off. I did not hear anything inflammatory in her remarks.

Sitting ResumedBudget Implementation Act, 2008--Bill C-50Routine Proceedings

1:35 p.m.

Some hon. members

Oh, oh!

Sitting ResumedBudget Implementation Act, 2008--Bill C-50Routine Proceedings

1:35 p.m.

Conservative

The Acting Speaker Conservative Andrew Scheer

I could not resist. She has 10 minutes and 45 seconds left in her remarks. We will resume debate.