Mr. Speaker, I am pleased to have the opportunity to address some of the myths regarding our government's actions and our commitment for marketing freedom.
Western Canadian farmers gave our government a strong mandate to provide that marketing freedom. I want to point out, for all my colleagues in the House who will ask questions later, that the mandate is very loud and clear, particularly in central Alberta.
The legislation we are proposing would bring an end to the monopoly of the Canadian Wheat Board. It would give western Canadian wheat and barley farmers the marketing freedom they want and they deserve. It has been a well-known plank of our platform for years and western Canadian rural ridings continue to support our government by electing representatives who believe in marketing freedom.
Some critics may say that we are ignoring the law and the Canadian Wheat Board Act, which is hogwash, and that the act calls for a plebiscite before the Minister of Agriculture introduces a bill to add or remove a grain from the monopoly provisions of the act. However, Parliament created the Canadian Wheat Board Act and Parliament is able to amend or repeal it. In fact, even the NDP member for Winnipeg Centre agrees with us on one thing, which is that he has said that the government has the right to change the legislation.
Some will say that farmers will be devastated by this change. In fact, farmers in western Canada are very well able to manage their own affairs and market to the buyer of their choice. We see that all the time in the non-board commodities. They have built growing canola and pulse industries without a monopoly marketer in place. Why should western farmers not enjoy the same marketing freedom as other farmers in Canada?
As well, we have heard some critics say that we have a handful of grain multinationals controlling the world trade in wheat and other cereals and that Canadian farmers will simply be at the mercy of these huge companies. Our government does not buy into those scare tactics.
Farmers in western Canada deal with grain companies when they market their canola, pulses and non-board commodities, and they do so successfully. In fact, canola and pulses are actually up in numbers compared to wheat. Those industries are growing steadily and they are attracting investment in value-added activities such as canola crushing.
We trust farmers to make their marketing choices based on what is best for their own business needs. Farmers have the skills, the information and the tools to put themselves in the driver's seat, and we are here to help ensure they can achieve all of that potential.
Agriculture has played a major role in keeping Canada's economy on solid ground through some challenging times and when other economies are faltering. Ours is not a government that sits on its hands when the people it represents see new opportunities for themselves to succeed. We are a government that has consulted with farmers since the very beginning and we are continuing to consult with them on this matter.
The Minister of Agriculture has asked department officials to meet with the industry and stakeholders, including the Canadian Wheat Board itself, throughout the past summer in order to assist in developing a transitional plan for opening the market. Our government has always said that it is open to seeing the continuation of the Canadian Wheat Board as a voluntary marketing option for producers. That has been the campaign commitment and that is the campaign promise that will be kept.
The board has some very bright and effective employees and should be able to operate in this new environment. If farmers choose to support the new model, they will have every opportunity to succeed.
Peter Phillips, a public policy professor at the University of Saskatchewan, believes that the board can and should have a long-term future. He points out that 60% of the producers say that they like to use the board, so that is a pretty good client base to start with right there.
Our government is committed to creating an open market for western Canadian grain farmers that attracts investment, encourages innovation, creates value-added jobs and will build a stronger Canadian economy. Canadian farmers and processors are eager to compete in changing world markets and to meet the ever evolving demands of today's consumers.
Over the past five years, our government has worked hard with farmers to help grow their businesses, drive Canada's economy and leverage our natural advantages of land and resources. Our most precious resource is the ingenuity, commitment, dedication and hard work of our farmers.
Canada's economic action plan has invested in that natural advantage and delivered real benefits to agriculture across the country in creating jobs in our various communities. We are a government that acts on facts and sound judgment and on the expressed will of Canadian farmers. The 21st century will be a challenging and exciting time for agriculture in Canada. Our farmers deserve the freedom to meet these challenges and opportunities as they see fit. It is a matter of economics, dignity and respect.
In fact, the C.D. Howe Institute released a report entitled, “Pulling the Plug on Monopoly Power: Reform for the Canadian Wheat Board”, dated June 23, 2011. This report takes on the logic of monopoly supporters who argue that, by selling together, western Canadian farmers exert more market power in wheat markets and receive higher returns than if they competed against each other. However, the report underlines that the declining global market shares of Canadian wheat makes it increasingly unlikely that the Wheat Board is able to exert this market power. As a result, reform is needed. This reform includes reconsidering the CWB's monopoly.
I know my colleagues in the opposition are dying to hear the report, which explains the Herfindahl-Hirschman index, which measures market concentration. It illustrates how unlikely it is that the Canadian Wheat Board would exert pricing in the world wheat market. Canada's share of annual production has fallen from 8% in 1962 to less than 4% today. Likewise, Canada's share of the export market has fallen from over 25% to less than 14% in that same time period. Equally, Canadian market share in the world barley export markets has declined from 50% in the early 1980s to less than 10% today. In that sense, the Wheat Board is a price taker in so many of these markets.
The report also supports our government's position that, even without sole buying and selling authority, the Canadian Wheat Board's existing infrastructure, expertise and worldwide distribution of its trading staff would make it an attractive pool for farmers to voluntarily participate in and successfully sell their wheat in world markets. The option also remains available to farmers who prefer to specialize in producing wheat for domestic consumption, rather than trading it on the world markets. The economics are clear.
I invite my colleagues opposite to join us in this exciting new chapter for Canadian agriculture, rather than focusing on the negative rhetoric and all the things that we cannot do. We should focus on this opportunity for change. It is inevitable in all facets of life, and western Canadian wheat and barley farmers deserve the same marketing freedom and opportunities as other farmers, not only in Canada but around the world.
I encourage all members of the House to think this through and show their support for western Canadian farmers as they capitalize on this new opportunity.