Madam Speaker, it is my great pleasure to rise once again in the defence of our dairy producers.
It seems that government after government is taking pleasure in making their lives difficult.
I must admit that I am very frustrated by the fact that we are still talking about this issue. There has been consultation, and once again, no action on the part of the Liberal government.
Two years ago, I introduced a motion in this House that was unanimously adopted. Past Conservatives promised to compensate producers for the concessions they made in the agreement with the European Union. In this agreement, the Conservatives gave away 17,000 tonnes of new cheese import quotas to the Europeans. These 17,700 tonnes are on top of the 13,000 tonnes the Europeans can now sell to our supermarkets. This crack in our supply management system will cost our producers millions and millions of dollars.
A similar situation happened in October when the Conservatives negotiated the TPP in secret and gave away 3.25% of our dairy producers' market share. This is another attack and crack in the system, which hurts our producers. Being good players, they said that they were open to both agreements as long as other industries were not potentially profiting at their expense.
As the NDP and all parties voted in favour of the motion, the producers believe that they should be adequately compensated for their losses under CETA and TPP.
Negotiating and signing these trade agreements has created uncertainty for the industry, which continues to see negative impacts. What is more, while the Conservatives had announced compensation for those agreements, the current Liberal government has backtracked and has made more uncertainty for the industry.
The Minister of International Trade said that she did not feel bound by the plan the Conservatives announced and wanted to hold consultations.
After more than seven months in power, the Liberals still have announced nothing, apart from consultations. The minister prefers to announce that she is focusing on the coming into effect of the comprehensive economic and trade agreement, CETA, between Canada and the European Union in 2017, instead of reassuring producers with a compensation plan.
By and large, since coming to power, the Liberals have only compounded the uncertainty for the dairy industry. They are of course profuse in their use of the word of the year, “consultation”. They say they are defending supply management, but when one looks at the tangible measures they have taken for the dairy industry, the real impression is that they want to put an end to supply management. They are only aggravating the situation with their inaction.
I will always be here to remind the government of the importance of the dairy industry and need for our supply management system to function smoothly. For two years, our supply management system and the producers who work under it have been threatened by another type of breach.
Supply management is supported by three pillars. The first pillar is production management or discipline, which means that the quantity produced is regulated by quota. Producers agree to produce what Canadians need, and if they overproduce, they are responsible for those costs. The second pillar is producer pricing, negotiated based on production costs. Last but not least, the final pillar is one entirely in the government's hands, which is control over imports.
Based on these three pillars, supply management is like a three-legged table or chair. If one leg is unstable, the entire system is unstable. That is exactly what is happening.
For more than two years, the government has not been playing its role of import controller, and a milk product known as diafiltered milk has been pouring across our borders. This product was created for the sole purpose of circumventing the tariff rules, and in 2015 it was responsible for losses of over $220 million for Canadian producers. From what the industry is saying, the losses in 2016 will be even more substantial.
In response to the industry’s appeal during the election campaign, the NDP and the Liberal Party pledged to resolve the problem quickly, once they were in power. We all know the October results. I know that we are debating this issue in the House, but I would still like to offer a little history on it.
Since last December, I have been hounding the government to tell us when it will finally resolve the problem of diafiltered milk. The inaction of this new government has forced us to remind it of its commitment and the importance of acting on this matter for the vitality of our dairy industry and the proper operation of our supply management system.
At first, the Liberals said that they wanted to consult the industry and they were abreast of the file. In February, there was a little glimmer of hope for our producers when the minister told them there had never been any question of diafiltered milk being used as milk in the cheese compositional standards. In fact, it must be remembered that at present, in Canada, diafiltered milk has a dual identity, courtesy of the Conservatives, and now courtesy of the Liberal Party as well. This product crosses our borders as duty-free milk protein concentrate, making it advantageous for processors. Then it is considered as milk by the Canadian Food Inspection Agency, even though it is nothing like the milk we pour on our cereal.
As a result, processors have no specific limits in their use of diafiltered milk, in contrast with other milk protein concentrates. That explains the growth in imports over the last few years. Furthermore, remember that the Americans do not use diafiltered milk in their products. It was designed specifically and exclusively to get around the Canadian rules.
Let us now get back to where I was today on this issue.
In February the minister told us that diafiltered milk should not be used like milk and he was going to make sure that all processors were made aware of that.
At the standing committee on agriculture, we heard representatives from across the dairy industry who, for the most part, believe that diafiltered milk should be considered as a dairy protein concentrate rather than milk. After that the minister repeatedly stated in interviews that diafiltered milk should not be used as milk.
Based on those statements, the producers and I were at least a bit reassured that the government would understand that the ideal solution would be to consider diafiltered milk as DPC and to have the cheese compositional standards apply to all processors.
We naturally remained concerned about how quickly the government would move to finally apply this solution, which did not seem to be a step in the right direction. Unfortunately, a few weeks later, as we have come to expect from the Liberals since the start of their mandate, they changed position overnight. Another complete 180-degree turn from the Liberal Party of Canada. Now the Minister of Agriculture and Agri-Food and the government went back to square one by launching consultations again, as if they didn’t know the solution. Indeed, I do not like the word “solution” because applying its own standards to everyone is not a solution. It is the least one can do; it is simple common sense.
In other words, having said that they were making sure the standards were clear for everyone and they would apply to everyone, the Liberals backtracked once again. They began giving us the same response again and again: they were protecting supply management, they were in discussions with the dairy industry, and they were aware of the problem they had inherited from the previous Conservative government.
After weeks and weeks of hearing this in the House, to ensure the well-being of the industry and to protect our family farms, my party and I decided to debate this issue of diafiltered milk another time, on an opposition day. The motion I tabled on that day asked the government to resolve the problem immediately by enforcing its cheese compositional standards, while recognizing that every day it did not do its job, producers were suffering substantial financial losses and many family farms were disappearing.
We know the rest of the story. The Liberals voted down our motion. They promised to consult the industry in the next 30 days to find a long-term solution. Yes, that is right: more consultations to buy more time. Now it was a matter of finding a long-term solution for the entire industry. These are fine words, but on paper and in real life, their search for a long-term solution is leading to the disappearance of many family farms and the loss of thousands of dollars for our Canadian dairy producers.
These producers are losing between $15,000 and $20,000 on average a year. That is shameful. Meanwhile, U.S. producers are getting rich at the expense of Canadian producers. It seems to me that U.S. producers are already well subsidized by their government and that they do not need additional help from the Canadian government.
The search for a long-term solution led more than 3,000 producers to protest on Parliament Hill last week. They wanted to remind the Liberal government that it has sole control of one of the pillars of supply management and that, at present, it is not doing a good job of controlling imports of diafiltered milk under the duties relief program.
Over the course of one year, dairy producers have been forced to protest on Parliament Hill twice because the Liberal government has not shown them any respect, as was the case with the previous Conservative government.
During the House debate on our motion and on the Facebook pages of several Liberal MPs, some have said that the solution lies in investing in processing facilities. Others have even said that enforcing the current standards would simply be a Band-Aid solution. However, not one of them could explain what was preventing the government from enforcing the standards and then looking forward to another long-term solution.
The same applies to investing in processing facilities. This would not prevent or control the quantity of diafiltered milk coming into Canada. Nothing is preventing the government from considering diafiltered milk as DPC and enforcing cheese standards, while also investing in processing facilities. Nothing is stopping that. I know the Liberals have not always been unanimous on supply management, and there sure has been a lot of discontent and dissent, but I simply do not understand why it is taking the government so long to act and stand up for family farms, unless it just does not want to do it at all.
What I have to say is even more troubling. Why are the Liberals not being honest with Canadians and producers and telling them what is really going on? There is no difference between the Liberals and the Conservatives with respect to producers. They keep them in the dark and in limbo until the last minute. If the Liberals have a good reason for not addressing the problem of diafiltered milk, why will they not explain that to producers? Why will they not explain that to us in the House? Why are they not fully compensating producers for their losses? This would not be the first time the Liberal government has sacrificed the dairy industry for another sector, but at least our producers could get on with their lives and make do with this compensation.
Perhaps the government would come to its senses more quickly if it realized just how many farms have disappeared. To make sure that I have made myself understood I will repeat that the NDP continues to believe that the law is the law and that it applies to everyone.
The classification of diafiltered milk as a milk protein concentrate by the Canadian Food Inspection Agency and the application of cheese compositional standards to all processors is the solution that we would have implemented within 100 days, had we become the government.
I am really tired of watching as our producers close their doors. I am discouraged for dairy producers. I tell myself that perhaps the government would be open to compensating producers for its inaction because we should remember that, right now, the producers are paying the price for the Liberal Party's poor management and the government's irrational decisions.
If the government does not do something quickly, the future of many farms, our region's economies and, even worse, the supply management system will all be at risk.
Considering what is happening around the world, I am lucky that there is a supply management system in Canada. I sincerely hope that the Liberals will keep their election promises, stop spouting empty rhetoric and will take action on behalf of Canadian producers.