Mr. Speaker, it is an unfortunate turn of events here in the opposition moving that amendment. I will be discussing this in a little bit, but I would like to present the government position regarding Bill C-13.
I am very pleased to express my support for Bill C-13, An Act to amend the Canada Grain Act. This bill illustrates the government's unwavering commitment to put our farmers first, by eliminating costly regulations and the inevitable, pointless problems currently facing Canada's grain industry.
Over the past few years, the grain sector in western Canada has undergone considerable transformation. The grain market has evolved, and it centres more and more on niche markets, livestock feed and biofuels, as well as other value-added opportunities.
Despite the ever-changing nature of the industry, the Canada Grain Act has not been significantly modified in nearly 40 years. Strictly speaking, the activities of the Canadian Grain Commission, the body that maintains standards of quality for grain and regulates grain handling in Canada, do not reflect the needs of producers and the modern industry. Before explaining any further the proposed changes to the Canada Grain Act, I would like to provide a few basic facts.
In 2005, an amendment to the Canada Grain Act was passed, thereby requiring an independent review of that act and the Canadian Grain Commission.
COMPAS Inc. was hired by the Department of Agriculture to conduct the independent review. Its recommendations were presented to Parliament in 2006. The COMPAS report was referred to the Standing Committee on Agriculture and Agri-Food, which consulted stakeholders and recognized a need for changes to the Canada Grain Act and the Canadian Grain Commission.
The amendments are based on the recommendations made by the Standing Committee on Agriculture and Agri-Food in its report to the government in 2006.
Throughout these reviews, stakeholders were consulted extensively, including eight public meetings held across the country by COMPAS Inc. Hence, these proposed changes reflect the needs and the will of grain producers and the industry.
This government is proposing to clarify the mandate of the Canadian Grain Commission in the Canada Grain Act. The clarification will stress that the Canadian Grain Commission protects the interests of producers with respect to deliveries to licensees, determination of grade and dockage, and allocation of producer cars.
That said, there have been extensive changes within the Canadian grain industry over the years and the Canadian Grain Commission must reflect that evolution. The number of primary elevators in western Canada has dwindled. Grain companies have consolidated their operations and now much of our grain is shipped from primary elevators to port terminals owned by the same company. Currently, the Canadian Grain Commission must inspect and weigh all grain received by terminal and transfer elevators.
To keep up with the changing environment, the government strongly believes that producer interests are best served by limiting costs and fostering a competitive, efficient grain handling system. Consequently, the government proposes to eliminate mandatory inward inspection and weighing requirements. The bill would reduce unnecessary mandatory costs from the grain handling system and would work to build a lower cost, more effective and innovative grain sector. We are reducing the regulatory burden with this initiative. As all costs in the system eventually work their way to farmers, this would result in a less costly system for farmers, too.
Nevertheless, inward inspection and weighing do provide value to producers, in some circumstances. The government has proposed amendments to the Canada Grain Act that would facilitate private sector delivery of inward services when requested. Thus, the elimination of inward inspection and weighing would create business opportunities for private sector service providers. It is best left to the shippers themselves to determine when and at what level these services are provided.
As an important and ongoing check on this new arrangement, producers and industry would be able to apply to the Canadian Grain Commission for binding grade arbitration when they are not sure that the right grade has been assigned. The proposed changes would not reduce the capacity to ensure a dependable commodity to buyers of Canadian grain. What is more, international buyers of Canadian grain could rest assured that every vessel load would continue to receive the Canadian Grain Commission's certification of grade and weight.
On another topic, the Canadian Grain Commission producer payment security program has been the subject of debate in the grain sector. Currently, all licensed grain handlers must provide financial security to the Canadian Grain Commission. If a licensed grain handler fails to pay for the grain it has purchased, the Canadian Grain Commission steps in to compensate producers.
Unfortunately, this security program is flawed as it is not 100% effective and it adds costs to the Canadian grain handling system. These costs negatively affect the competitiveness of the Canadian grain sector.
As part of the move away from kernel visual distinguishability, or KVD, the Canadian Grain Commission must be equipped with tools it can use in a post-KVD environment. This is why this government proposes that the Canada Grain Act be brought under the Agriculture and Agri-Food Administrative Monetary Penalties Act. This proposed reform follows a Standing Committee on Agriculture and Agri-Food recommendation to use monetary penalties to help enforce a declaration system upon grain delivery. The Canadian Grain Commission must be equipped with penalties to protect the quality of Canadian grain.
With respect to the impact on jobs at the Canadian Grain Commission, the commission will be working with staff over the duration of the legislative process to assess the full impacts of the proposed changes. We understand this process may have a significant impact on the lives of the affected public servants, and we are committed to working with them in a clear and transparent manner.
In conclusion, the proposed amendments are merely part of the ongoing transformation of the grain sector in western Canada. Western Canadian grain is increasingly destined for value-added domestic enterprises, and government policy and legislation must adapt to that reality. In this ever-changing environment, the Canada Grain Act and the Canadian Grain Commission must be modernized.
Thanks to these amendments, the Canadian Grain Commission will be in a better position to provide producers with a more cost-effective grain quality assurance system. These amendments are crucial to eliminating unnecessary and costly regulations within the Canadian grain sector. The government is committed to looking out for the interests of our producers, first and foremost.
The integrity of Canada's grain quality assurance system and the reliability of the Canadian brand will be maintained.
Once again, I am honoured to express my support for the government's proposed changes to the Canada Grain Act.
I will now make a few comments about the hoist motion that was raised by the NDP member regarding this bill. I will clarify for Canadians that this is a very unfortunate turn of events. It is my fear that this is being done for partisan reasons. I will explain it as such.
As we know, here in the House we have a process for the passage of bills. We have first reading, where the House and the public are first advised of the government's proposed legislation. We then move into second reading, which is where we find ourselves now, where we enter into healthy debate among ourselves as MPs and among political parties to explain the legislation and the different points of view concerning it. The bill then moves to committee for further review. This is where very important work is done. Witnesses can come before the committee and explain all sides of the issue at hand. The committee normally undertakes the work of listening to witnesses who, for example, would be in favour of changes proposed in the legislation. The committee would also hear of changes that cause concerns. Producers, companies and green terminals would all have participation in this process. Of course, the bill can be modified by committee. The bill then comes back to the House for final debate and vote.
I pointed all that out because there is a process here. I was here for all of the opposition members' speeches and I listened to their concerns with the bill. I understand that they may not be pleased with all aspects of the bill. Personally, I think it is a rather good bill, but I and the government are open to the fact that there will be valuable input obtained, particularly during the committee process, from the opposition members and witnesses.
However, this hoist motion basically kills that process.The hoist motion, as read by my NDP colleague, sounds like he wants to delay the furtherance of this bill. I have Marleau and Montpetit in front of me and I would like to clarify for Canadians and those who are watching the debate exactly what the hoist motion means in reality. Marleau and Montpetit states:
The hoist amendment originated in British practice, where it appeared in the eighteenth century. It enabled the House of Commons to postpone the resumption of the consideration of a bill. It was subsequently agreed that the adoption of such an amendment by the House was tantamount to the rejection of the bill, since the postponement was deliberately set for a date after the end of the session. Normally, if the session went beyond that date, the bill was not placed again on the Order Paper.
Historical events were responsible for the establishment of three or six months as the postponement period. A hundred years ago, sessions rarely lasted longer than six months, and so a six months’ hoist amendment would be proposed at the beginning of a session, and a three months’ hoist in the final weeks of a session. Today, sessions of the House of Commons of Canada are longer, but the length of sessions is neither regular nor fixed in advance.
The adoption of a hoist amendment (whether for three months or six months) is tantamount to the postponement of the consideration of the bill for an indefinite period. Consequently, the bill disappears from the Order Paper and cannot be introduced again, even after the postponement time has elapsed. The bill is accordingly defeated indirectly. It is no longer possible to place the bill back on the Order Paper, because to do so would be ruled contrary to the decision of the House. Members have tried to apply the hoist amendment to a resolution or to include it in the text of a reasoned amendment, but these attempts were ruled out of order.
The key here is that this hoist motion actually kills the bill before it even has a chance to make it to committee. As I pointed out in my speech, this is not the first time that the House has seen this bill. In fact, my colleagues saw this bill in the last Parliament and yet there was no attempt to move forward with a hoist motion. This makes me reflect that this is a partisan motivated motion. We have the three opposition parties working together. They do not care what producers have to say. They do not care what the input is or what kind of feedback we would receive at committee. They only care about some sort of a partisan purpose that they have at hand here and they are working in collusion.
I have tried to work with my colleagues in the other parties in a very constructive manner. We will have an opportunity at committee to hear from all sides of the argument. The opposition critics of agriculture will have ample opportunity, both in committee and in the media, to express their opinions on this important legislation but they do not want any of it. They simply want to kill the bill. They want to work in collusion to the detriment of our grain producers and we need to wonder why.
It is my hope that during this debate on the hoist motion, the opposition members will level with Canadians and make their reasoning for the motion clear. There is no question that the legislation being proposed would be very positive improvements to the Canada Grain Act.
As I mentioned at the beginning of my speech, the last amendments to this act were done 40 years ago. I think we can all agree that farming, agriculture, the handling of grain has changed over the last 40 years. It is reasonable and, I would say, expected of the government to put forward amendments to improve the Canada Grain Act so that it better serves Canadians and our producers. I say this particularly in these challenging economic times. It is not advantageous to our producers to pay the additional costs that are inherent in processes that are redundant or not necessary. If the opposition wants producers to continue to pay costs that are not necessary, I invite them to argue that case. I think it will fall on deaf ears because what we are hearing is that producers, particularly grain producers, want less costs imposed. They want to be able to retain more of their hard-earned money. If we have an opportunity here to simplify the processes, to simplify the legislation by which they are bound, then we should take advantage of that.
I will talk a moment about inward inspections. For example, there was a time when terminals were owned by different companies and the Grain Commission was involved in the inspection between those two different grain terminals owned by two different companies. Now, however, in many instances the terminals are owned by the same company and yet the legislation requires a public inspection of the grain between two terminals owned by the same grain company. It just does not make sense to obligate that inspection, particularly by government inspectors, all at the cost of the producer.
It is quite reasonable, and is actually a very effective and cost-efficient move, to remove the obligation to say that if a company owns both terminals it is possible to have the grain inspected again between the two terminals if it is so desired, but by the private sector. If there happens to be discontent with the final decision on the grading of that grain there is an appeal process in place. One of my colleagues was talking about the appeal process and the changes. We are simply eliminating some of the multi-levels of appeal, but there is still an appeal process and there would be a binding decision made through that appeal process in order to resolve differences.
Once again I must say that I am shocked. I was in the House when the hoist motion was moved by the NDP. I know its members have been working closely behind closed doors. I knew nothing of this. Rather than allowing the bill to be discussed at committee and discussed with producers, they are scuttling everything and killing the bill. They are talking about imposing up to a six month delay. However, it is only fair that Canadians know what is really happening, which is that the bill is being killed right here on the floor during second reading. The opposition owes an explanation, particularly to our producers.
I sit on the agriculture committee where we have had producers in front of us. We are talking about competitiveness. There is some hypocrisy on the behalf of the opposition. Members say that they are concerned about competitiveness. Part of the competitive picture is lowering costs to producers. On the one hand, the opposition says that it is very concerned and want to work in the best interests of producers while on the other hand, it is killing a bill outright, with no chance for producers to have any say in this matter, for some partisan purpose, and that is very unfortunate.
As I mentioned, the opposition parties, particularly the opposition critics, must explain to Canadians why they are working in collusion against the government and against grain producers.