Mr. Speaker, I am delighted to stand in the House today and respond to this government's motion in support of Canadian agriculture. To the extent that this is a wide ranging debate, I hope to touch on a number of issues which are directly impacted by federal agricultural policies.
The primary industry in my riding of Lambton-Middlesex is agriculture. Stats show that nearly three-quarters of a billion dollars worth of farm products are produced in Lambton and Middlesex counties and more than half a billion dollars worth of farm supplies and equipment are purchased.
All of us in this House recognize that the production, sale and trade of agriculture produce is becoming more and more subject to both the constraints and opportunities that exist within the highly competitive nature of international trade.
Over the past couple of years more monumental changes have taken place in the field of international agriculture trade, necessitating some fairly radical adjustments to Canada's domestic structures. To that extent I have to say that the farmers of my riding who sell their products under Canada's supply management system were extremely disappointed that Canada was
unable to secure a strengthening and clarification out of article XI at the recent Uruguay round of GATT negotiations.
Canada's unique system of marketing boards, agencies and commissions is arguably the most sophisticated system in the world, ensuring producers a reasonable income and consumers stable quantities of the highest quality food.
Two years ago Canada had a number of impressive allies in her fight to strengthen and clarify article XI of the GATT. However, due to relentless pressure and threats from the United States, our allies fell by the wayside one by one. Unfortunately by the time the deadline approached Canada stood completely alone at the bargaining table. We were faced with a fundamental decision: Do we leave and scuttle seven years of negotiation involving the interests of 116 nations and our own, or do we examine the factors associated with this most comprehensive round of global trade talks in history and work to implement the measures that would ensure the survival of our unique supply management system?
The Government of Canada chose the second option. I am hopeful that Canada's farmers who operate under our current supply management system comprised chiefly of poultry egg and dairy sectors can successfully retain their system through a well regulated conversion process from the original import quota system to one that is to be characterized by initially high levels of tariffication.
Despite recent threats and posturing by the United States, I am hopeful that the Government of Canada will successfully implement this initial set of tariffs of supply managed produce beginning July 1, 1995. My constituents and I find it disturbing to read in the media accounts outlining the possibility of tradeoffs with the Americans in which some of the tariff levels and supply managed commodities may be significantly lowered in return for greater access of Canadian wheat to U.S. market.
While the Government of Canada is still negotiating with the United States to sort out a number of longstanding bilateral issues, I am gratified to have received assurances from the Minister of Agriculture and Agri-Food that in the process of these bilateral negotiations with our American friends there will be no tradeoffs between agricultural sectors.
The farmers in my riding of Lambton-Middlesex tell me that they do not want subsidies, they just want a decent price for their product. As I see it, we need to develop a farm income stabilization program that is regionally flexible, yet one that is also GATT consistent, market neutral, financially sound, affordable and effective.
One program to be looked at is GRIP. It is true that GRIP plays differently in different provinces. For example, in my province of Ontario it is seen as a very successful program. In others, especially Saskatchewan, people have the opposite opinion. Perhaps what is needed then is a set of more regionally sensitive safety net programs that take into account the various agricultural sectors and their producers.
The question of interest free cash advance payments comes to mind. On February 14 of this year I made a statement to the House calling upon the minister of agriculture to reinstate the interest free provisions of the advanced payment for crops act which was removed last June by the previous government.
I would like to take this opportunity to reiterate the same request. While I respect the reality that interest free cash advances have cost about $50 million to $75 million each year and that these moneys would come out of the total budget of $850 million for all income support and safety net programs, I am convinced that it is a well spent investment, especially for our farmers who experience cash flow problems at various times each year. It almost goes without saying that proper stewardship in the form of sustainable agriculture continues to grow in importance.
Canadian agriculture has a proud environmental record and can be attributed to an even greener environment through a greater federal commitment to the development of ethanol as an alternate fuel. As co-chair of the ethanol task force, I have been working with my colleagues diligently over the past number of months in trying to convince cabinet members to take that extra step in providing assurances to the development and flourishing of Canada's fledgling ethanol industry.
Frankly it is an idea whose time is long overdue and I intend to keep advancing this notion at every opportunity. Ethanol as a fuel has come under the microscope more often in the past five years than any other transportation fuel from the standpoint of energy efficiency, environmental and economic benefits, sustainability, farm practices, cost benefit ratio, energy source comparisons and the impact on grain supply.
Can the same be said for the big oil companies that fought changes such as the removal of lead until the public demanded it be removed? Speaking of the public, demand for ethanol is so high in Canada that our small existing ethanol producing facilities have been forced to import ethanol from the United States in order to meet that growing demand. This is nothing short of ludicrous. Canadians have the will, the know-how in the market, both domestic and international, to support a major expansion of our ethanol industry.
The ethanol industry is not looking for an 8.5 per litre federal tax exemption for ethanol blended fuels. It already has its exemption as do alternate fuels. What ethanol manufacturers are seeking is a guarantee of the present commitment by the federal government or a maintenance of the status quo on tax treatment for the next 10 years.
Such a guarantee would ensure private sector investment for potential ethanol manufacturers who would like to create jobs and economic development to benefit the economy through the construction of a $170 million world class ethanol production complex utilizing 20 million bushels of Ontario corn.
The Ontario, Alberta and Saskatchewan governments have all seen fit to help kickstart this renewable industry through long term tax exemptions.
Members of the ethanol tax force and our many supporters both here in the House and in the Canadian agricultural community at large are only asking for similar consideration federally. No subsidies, no loans, no grants, no loan guarantees are requested. If the crude oil increases and/or corn prices decline the ethanol industry is prepared to have a clawback formula.
Ethanol has much to offer Canadians who are environmentally conscious, thirsty for economic recovery and concerned about the sustainability of our agriculture and energy industries.
We do not need any more studies. What we do need is the political will to make the right decision. We all know that Canada produces enough grain to put 10 per cent ethanol in all Canadian gasoline and still be one of the world's top four grain exporters. Moreover, as evidenced by federal and provincial government policy, evaluation of ethanol cannot be assessed only in the context of cost versus gasoline. There are numerous factors that must also be considered.
There is a very positive and undeniable economic benefit to Canada when one thoroughly assesses all the impacts of renewable fuel programs in important areas such as farm income stabilization, rural development, direct Canadian jobs, exports and improved balance of trade, more valuable animal feed stocks, reduction in primary energy use, lower emissions of greenhouse gas. All of these are positive factors which will be the fruits of a courageous and visionary federal ethanol fuel policy.
We have to act and we have to act now or Canada will be left by the wayside. Renewable ethanol is already a large scale business in the United States and it is getting larger as we speak. Over 49 new plants are on the drawing board and 14 existing plants have plans for expansion.
Here in Canada we simply cannot afford to dither any longer. As I said, we simply do not need any more studies by well paid bureaucrats. The beneficial results of the ethanol experiment are already before our eyes south of the border.
Let us not waste any more time. The time for a real federal commitment to ethanol and the positive impact it will have on our environment, our agricultural communities and our economy is now.