Madam Speaker, pursuant to Standing Order 43(2), I will be sharing my time with the member for Gatineau-La Lièvre.
Madam Speaker, I am delighted to speak in this debate on agriculture, since it is a subject of vital importance to my constituency of Vaudreuil, which is largely rural. Most of my constituents earn most of their living from agriculture: dairy farming and grain farming.
Overall, agriculture in Canada and in Quebec is modern and efficient, very much thanks to the partnership established by the government and the agricultural community. These structures are the results of adaptation. In a context of ongoing change, this sector must continue to adapt. In its policies and programs, the Canadian government will continue to help this sector adapt to new market conditions and improve its competitiveness.
Our government will maintain and even increase its strategic investments in research, infrastructure development and skills development. Partnership with the farming community and the provinces will help us determine the best way to use these resources. Partnership is essential if the industry as a whole is to take full advantage of the opportunities the new trade agreements offer.
The agri-food industry is a pillar for the Canadian economy. All Canadians and Quebecers profit from investments in this industry. Our government is committed to helping farmers in every region of Canada, but we must recognize that this kind of support comes in many different ways.
The federal government's intention is to act in the best interests of the agri-food sector. This commitment applies just as well to farms in Quebec and in the prairies, for they are all essential elements in the whole Canadian agri-food system.
Statistics do not reveal the whole picture and can often be deceiving. We must look beyond the numbers and the columns. Government support in the agri-food sector cannot be evaluated solely on direct payments to producers through various different programs. We must take into account indirect transfers such as research or market development and those governed by controls such as border control for quotas.
Canada is recognized world-wide as a healthy and high quality agri-food producer and exporter. Agricultural producers across Canada profit from this fine reputation. Quebec's agri-food sector holds a predominant place within the Canadian economy. This is a very tangible factor, one which many regions seek to emulate.
On average a Quebec producer earns the highest net income in the country. In 1993 the income produced by agriculture activities reached $3.8 billion. This represents 16 per cent of total Canadian revenues, while manufacturing brought in $11 billion. In the last 12 years in financial terms, the global income of Quebec farmers has increased 67 per cent.
In 1993 the value of Quebec's agri-food imports reached $1.2 billion or 9 per cent of the total Canadian export market proceeds. Quebec's hog industry holds 32 per cent of the Canadian market and is the number one seller abroad. In 1992 it accounted for $294 million or 40 per cent of all Canadian exports in this sector.
I am not taking into account the enormous potential of world-wide commercial markets. The hon. minister of agriculture has seen it himself when he recently travelled to Asia. Some of Quebec's industrial leaders such as the president of the Union des producteurs agricoles, Mr. Pellerin, and the president of the Coopérative fédérée de Québec, Mr. Massicotte, were part of the commercial delegation travelling with the hon. minister of agriculture.
There are 38,000 farms in Quebec; they help supply over 1,000 processing plants and 12,000 food stores. Quebec agriculture and the Quebec agri-food industry account for 15 per cent and 21 per cent respectively of Canada's gross domestic product in those sectors. Hundreds of thousands of jobs-415,00 jobs-depend on the Quebec agri-food sector: that figure represents 22 per cent of jobs in Canada's agri-food industry, and 14 per cent of all jobs in Quebec.
In the processing sector, the Quebec food and beverage industry accounts for 25 per cent of the Canadian market. That is a vital market. Among Quebec manufacturing industries, the processing sector is in first place in terms of value added and deliveries, and in second place in terms of direct jobs.
The processing sector has grown by 24 per cent in seven years. Nearly one-third of deliveries from the Quebec agri-food industry are destined for the rest of Canada. Agri-food sales to the provinces are three times higher than exports of the same products on world markets.
It must be recognized that this success of Quebec's agriculture is the result of the work of the people in the agricultural community. The performance I have just highlighted, however, was made possible by the support of public administrations. Indeed, the two levels of government have been intimately linked to that prosperity. And, whatever the Opposition may say, the federal government plays a role of the utmost importance in the agri-food sector. It carries out its mandate in a fair manner, taking into account the special needs of each region in the country. We provide energetic support for the expansion of industry by working in partnership with the provinces, the sectors of this industry, and the farmers.
Our income security programs, our research initiatives, our agreements with the provinces, our food inspection program, and our commitment to rural regions and to the environment are designed to ensure the vigour and growth of this industry. Our government works with the industry and the provinces in order to ensure long-term stability for producers. Together, we shall develop an income protection system that will meet the basic needs of all sectors without distorting market signals, a system that will allow farmers to make enlightened decisions based on co-operative advantage, not government programs.
The agri-food sector is an important source of jobs and economic activity. That is not the result of chance, after all! The federal government is a key player.
We have a role to play and we will play it, now and in the future. We will continue to help the industry to grow by setting up programs to promote the development of new products and new markets and improve productivity, programs to help processors, programs to promote training and programs to provide easier access to credit.
As far as GATT is concerned, the rules may have changed somewhat, but the Canadian government has successfully negotiated an agreement that protects supply management and its foundations. The Canadian economy and the economy of Quebec will benefit substantially under the agreement concluded at the GATT talks, and it is also a good agreement for Canadian and Quebec agriculture. In the course of the GATT negotiations, the Canadian government was able to obtain tariff levels that will ensure not only the survival of supply management, as I men-
tioned earlier, but also its future prosperity. The tariffs will be in effect long enough to provide a stable and secure framework for producers in the industry.
The case of our trade relations with the United States is a good example of this government's determination to defend the interests of the Canadian agri-food industry. Our firm response to the Americans and their threats of trade sanctions against Canadian wheat was praised by the industry. If necessary, we will react as promptly and vigorously in any other sector. We will not play off one region against another or one group against another group.
The Department of Agriculture and Agri-Food has 1,400 employees in Quebec. At the national level, 23 per cent of the department's employees are francophones, and the federal government invests an average of $360 million annually in the agri-food industry in Quebec.
Madam Speaker, I will share my time with the hon. member for Gatineau-La Lièvre. He will need a little less time, and I will now start my concluding remarks, since I have about a minute or two left.
I would like to quote very briefly a number of revealing figures: Federal investments worth $42 million annually in the food inspection sector whose 850 employees are spread throughout Quebec's regions, and $27 million annually plus 415 jobs in research. Incidently, Agriculture and Agri-Food Canada has had a network of research establishments in Quebec since the beginning of the century. We are everywhere: Saint-Hyacinthe, Lennoxville, La Pocatière, Sainte-Foy and Normandin, to name only a few.
The federal department also spent $65 million in recent years on building or updating its research facilities in Quebec. The federal government also finances many research and marketing projects under the Canada-Quebec agreement on agri-food development and the agreement on regional development. The list of programs and agreements is a long one, representing tens of millions of dollars, and this does not include the dairy subsidy, $107 million for Quebec in 1992-93, and the fact that the agri-food sector in Quebec benefits from research carried out elsewhere in Canada, and vice-versa. Research funding provided by Agriculture Canada benefits all Canadians and all Quebecers.
In closing, our mission is quite clear. Under the auspices of consultations and through a policy of dialogue the welfare of all Canadians will be served by maintaining the wholesomeness and the marketing value of agri-food products, by developing the region's potential and diversity and by protecting agriculture resources and the environment.
Yes indeed, the agri-food industry is facing great challenges but we will meet them together. We will carry out our program in a spirit of partnership and respect for provincial jurisdictions.
