Mr. Speaker, I am pleased today to be able to speak to Bill C-4, the amendments to the Canadian Wheat Board.
I am proud to serve the area of Palliser. It is an area of Saskatchewan that includes all of Moose Jaw, a portion of Regina and a good swath of farming country that surrounds those two fine cities.
The constituency of Palliser is named in honour of a former British army captain, Captain John Palliser, who was sent out 140 years ago in 1857 on an expedition to southern Saskatchewan to see whether the climate was hospitable for agriculture. Captain Palliser became famous, or perhaps infamous, for saying that the region was “unfit for human abode”.
Captain Palliser was wrong. There have been developments in agricultural technology that he could not possibly have foreseen. The Regina plains he found so inhospitable that many years ago have now become one of the best grain growing regions in the world.
The climate can be as harsh as he described it, but people in Palliser and throughout the prairies have used the tools of community and co-operation to overcome the obstacles of climate and distance. The Canadian Wheat Board is one of those tools of co-operation. It has served western farmers well since 1935 and they made it clear in the barley plebiscite last February that they want to keep the Canadian Wheat Board as a single desk seller for their grain.
The minister in charge of the wheat board introduced amendments to the act in December of last year. Those amendments were sent quickly to the agriculture committee. In fact our caucus at that time in the 35th Parliament believed that the reference to committee was too hasty. We did not understand the minister's great hurry and we thought there should have been more opportunity for debate in the House prior to the referral. Len Taylor, our former agriculture critic from The Battlefords—Meadow Lake, made known his and our party's unhappiness with the government's procedure at that time.
I note that in Bill C-4 the minister is once again making the same speedy reference to committee and again we are concerned about that. We feel that members of the House would have valuable contributions to make in the debate prior to the legislation being referred to committee. We do not understand the minister's undue haste.
In any event, today the wheat board legislation is back before the House as Bill C-4. Our caucus has looked carefully at the bill and we are pleased to see that it makes some important concessions based on amendments proposed by the agriculture committee that I referred to earlier. I want to review the most important of those changes and to indicate where our caucus can support them and where we feel further amendments are required.
Most important, Bill C-4 contains an inclusion clause. That means that grains can now be added or included as opposed to what was in Bill C-72 when they could only be deleted or excluded. This is a major change and a concession on the minister's behalf. It was the wise course to take and the right thing to have done.
We do however have some concerns about how the process to achieve the inclusion of a new grain would be triggered. It is not clear to us which farm organizations would have the right to ask for such an inclusion. I flag this for the minister to suggest that we do have questions and that we may have suggestions to offer.
Second there are also some welcomed changes in governance. Bill C-4 stipulates as the minister said that 10 of the 15 members of the board of directors are to be elected by farmers with the minister naming the remaining five. The directors will now choose their own chair rather than leave that power with the minister. These are improvements over Bill C-72 but we do not believe that they go far enough yet. We have no problem with the government naming some members to the board of directors.
The government will continue after all to guarantee the wheat board's initial price on grain purchased from farmers. Our caucus insisted that the government continue these financial guarantees and we are pleased that they have been maintained. If the government is going to have considerable financial exposure, then it is only reasonable that it have some window into the board's operations.
However under Bill C-4 the minister maintains the authority to choose the president of the board of directors, a person who will double as the wheat board's chief executive officer. Our caucus opposes this. We believe this gives the government too much control over a board of directors that should really be accountable ultimately to the farmers and it gives the government too much control over the day to day operations of the wheat board itself.
In contrast to the proposal, we believe that the board of directors should have the authority to choose the president and chief executive officer and we urge the minister to make this amendment. We believe that the federal government will have enough influence by its appointment of one-third of the 15 members of the board of directors.
There are those who insist that the government should have no participation on the board of directors. Too often these are the same people who would like to sever all connections before the government and the board. This is a cynical exercise using the rhetoric of democracy as a tool to do away with the wheat board itself.
We believe that the minister has addressed an important issue on the inclusion of grains and has made some improvements on the issue of governance. However there is a third area of concern to us in which the minister has made no concession and that is in the area of cash purchases of grain.
For decades the Canadian Wheat Board has earned the confidence of farmers because they knew that they would all be treated equitably in the purchase of their grain. The board bought grain from farmers at similar prices and under similar conditions. This practice known as price pooling has been the bedrock on which the Canadian Wheat Board was built.
Both Bill C-72 and now Bill C-4 the son of C-72, would give the board the ability to buy grains from anyone, anywhere at any time. This in effect undermines the principle of price pooling. We believe that it would also undermine the farmers' confidence in the board and thereby diminish the board's credibility and effectiveness.
The minister argues that these arrangements would allow the board to adapt more quickly to market developments especially when the board needs a certain grain quickly and supplies are not immediately forthcoming. While there is logic in this reasoning, we fear that the board could in the search for short term flexibility undermine its longer term credibility with farmers. At the very least we would want the legislation to be quite specific as to when the board could resort to cash buying.
We in this caucus believe that it is time to end the uncertainty which has surrounded the Canadian Wheat Board. This uncertainty has been foisted onto the board and onto western farmers by the actions of some of our trading competitors, but what is even more damaging are the activities of that vocal minority of farmers who would do away with the board altogether.
Although the Leader of the Opposition did not refer to what his party is going to propose, undoubtedly it will be a form of dual marketing. We suggest that dual marketing is no more a solution in the agricultural area than two tier health care is in the medicare field.
Despite our lingering concerns about this government's longer term trade agenda, we believe it is best to get on with Bill C-4. This bill makes some important concessions and improvements from its previous incarnation based on amendments proposed by the agriculture committee in the last Parliament. Our caucus supports Bill C-4 in principle but we reserve the option of making further amendments to this legislation in committee.