Mr. Speaker, thank you for allowing me to speak on the debate on Bill C-49.
My colleague, the parliamentary secretary to the minister of agriculture, has spoken about the department's relationship in the agri-industry. I would like to discuss another important aspect of this bill, its recognition of agriculture and agri-food's role in research and development.
When the department of agriculture was first established the minister was given responsibility for experimental farm stations whose research concentrated on crops and livestock. Since then the role of the department has greatly expanded. The proposed legislation simply reflects today's realities.
AAFC's research efforts are still involved with crops and livestock but they have been taken far beyond the farm gate. The department is now committed to helping not just farmers but also the entire agri-food sector become more competitive here and abroad.
The department is working on non-food uses in agricultural products. For example, it is looking at new pharmaceuticals and grain based fuels like ethanol. It is also trying to develop and promote environmentally sustainable practices in agriculture and the agri-food industry such as biological pest controls.
What does this mean for the average Canadian? Let me put it in perspective. Many people do not realize that they owe their daily bread quite literally to Agriculture Canada research. Virtually all the varieties of wheat grown in this country were developed by scientists employed by the federal government of agriculture. They are constantly working to improve our plant and animal varieties and because of their work we enjoy plentiful, wholesome and certainly some of the least expensive food in the world.
Perhaps the most spectacular success story for government and universal research is that of rapeseed, known today as canola. In World War II rapeseed oil was used as a marine lubricant. Nobody thought of putting it on salad at that time. Government scientists working with universities saw the potential of rapeseed and worked to breed out the toxic elements in rapeseed and create a new strain of nutritious properties. Canola is now the most valuable single crop, worth one billion dollars a year.
The department continues to do outstanding work in plant and animal breeding. It is now exploiting some of the possibilities of new techniques in genetic engineering and biotechnology.
We have all heard of the human genome project whose goal is to identify and record every element in our DNA. On a some-
what smaller scale, our agricultural scientists are trying to decipher the DNA pattern of the common oat. AAFC's Ottawa based plant research centre is working with Quaker Oats of Canada and three American universities on this gene mapping project. Once we know what the oats are made of we can make even better ones.
In the agri-food sector innovative research is not a luxury. In a world of rapidly evolving markets technology is giving farmers and food companies new ways to meet their customers' needs. New foods and food processing techniques could stimulate economic growth and create many more jobs for Canadians.
The Canadian agri-food industry must remain technologically competitive. Continuing high quality research is fundamental to keeping Canada a world leader in agriculture and agri-food.
AAFC is managing to maintain a strong R and D capability even in the face of budgetary restraint. Increasing the government's budget for agri-food R and D may not be possible, but at least we can keep what we have.
The Minister of Agriculture and Agri-food has made it clear that his strong commitment is to research. However, we need to reallocate some of the funding. To do this, AAFC intends to reduce costs and spend smarter. It will ensure that research priorities are driven by market opportunities, in other words, by doing research that pays.
A good example of this is sunola, a hardy miniature sunflower developed by the Saskatoon Research Centre. Royalties from certified seed sales will go back to the station's budget and it will form more joint ventures with the private sector. The department is working to ensure its research meets market needs. Input from industry helps the research branch set its priorities. Government scientists are encouraged to attend market focus workshops. At one of these events last year AAFC's research branch, eastern region, unveiled 13 potential new technologies; of these 11 were judged to have great market potential.
The agri-food industry has become an increasingly active partner in research since Treasury Board allowed the department to take outside money, including financial support, retention of revenues and royalties. Industry investment in federal government agri-food research has been moved up from $5 billion in 1989 to approximately $18 billion today.
During the past year the department has run a pilot project called the matching investment initiative. The department matched every dollar the private sector was willing to put into agri-food research. Two million dollars in federal funding was put into this pilot project this year and this amount could grow substantially in coming years.
Obviously the industry would not make this kind of investment unless it thought research well worth while. When the results come in, the department does not have to waste its time looking for a buyer, because the results are pre-sold. That is why public-private joint ventures can turn theoretical knowledge into practical applications, and much more quickly and easily.
Agri-food research brings many kinds of benefits. Scientific breakthroughs in our laboratories not only add to the store of human knowledge but also help to raise our standard of living both economically and environmentally.
Consider the case of ethanol. It could be a miracle fuel of the 21st century. It is based on a renewable resource, our surplus grain stocks, and it is cleaner burning than conventional gasoline thus less harmful to the environment. Ethanol and other biomass fuels could be the nucleus of a whole new industry and a tremendous economic boost for rural Canada. AAFC scientists are helping to make this happen. Some day, thanks to them, we may export both ethanol and ethanol technology to an energy hungry world.
This is not a fantasy. There are promising projects in biotechnology under way right now in AAFC's research labs that would have been dismissed a few years back as science fiction.
Would you believe that our molecule biologists are working on a natural sweetener called stevioside that is 300 times more powerful than sugar? That AAFC's scientists are using discarded crab shells to create a truly biodegradable packing material? Genetically engineered enzymes from the stomachs of cows may be used some day instead of toxic chlorine for bleaching fabrics and paper. Not to mention the custom-made micro-organisms that AAFC is introducing for the use as natural insecticides and fertilizers.
Experience has shown that agriculture R and D is one of the best investments we can make. A number of studies done in Canada have shown that return on investment in agri-food research can exceed 50 per cent. Findings in the U.S. show similar high rates of return. It is an engine of growth in every sense and we must take advantage of that opportunity.
With the help of our partners in the private sector we should capitalize on many more such opportunities in the future.
