Madam Speaker, I appreciate the comments of both members this morning. I will address this bill on the basis that I agree with some points and feel very negative about others.
The Canada Grain Act is administered by the Canadian Grain Commission which is the agency mandated to establish and maintain grain quality and regulate the Canadian grain handling system.
I can support the main intentions of this bill as it aims at making our grain industry more competitive. We all want to see Canada build on its reputation as a producer and supplier of quality grain to the world.
It is important to remember that there are many important components that make up the grain industry and we should be sure that they are all working in top form to ensure the health and viability of this sector.
For example, last year we had problems caused by disruptions in the grain transportation system. This year it looks like we are going to experience some of the same problems which are disastrous and detrimental to our industry. Clearly we have to learn to start taking problems for what they are and try to solve them from past experiences without jeopardizing the future or the well-being of the industry.
Turning to the bill, I will outline some of its provisions. The Canadian Grain Commission will no longer be required to set maximum tariffs charged by grain elevators. Over time it is hoped that this will allow elevator operators to be more flexible and competitive in pricing their services while encouraging capital investment. This will also give grain buyers more authority to penalize people who put grain into terminals but do not move it quickly enough.
This amendment may solve a problem that was evident last year when the Canadian Wheat Board plugged elevators with grain for which there was not immediate buyers.
With the current legislation, terminals do not have to wait for boards to sell. They can legislate increased premiums or tariffs. This will probably have a positive effect on the system. Cabinet through governor in council will have the power to reverse these amendments. It remains to be seen whether this amendment will give terminals any real power or whether the Canadian Wheat Board will continue to be protected by the government through the undemocratic governor in council process.
I also wonder if the government in the future will invoke governor in council provisions to give more power to the Canadian Wheat Board and further regulate the industry.
The legislation states that after the maximum tariffs are eliminated the role of the Canadian Grain Commission will be that of a conciliator in resolving tariff disputes. This raises the question that if there is a need to further define this role, how will this be accomplished? Will it be through legislation or through governor in council?
The legislation allows for free movement within the western jurisdiction and within the eastern jurisdiction but not between the two jurisdictions. I wonder why there are these restrictions on interprovincial trade within Canada. As hard as it may be to believe, there are more barriers to trade between provinces in Canada than there are between countries in the European community. I really question the rationale that says there should be restrictions for grain movement within Canada.
This summer we saw the first ministers sign an interprovincial trade agreement that actually did very little to promote free trade. It surprised me that when they had an opportunity to solve a problem that has to be resolved, they accomplished little, especially in the area of agriculture. This is all the more surprising when one considers that these restrictions are not imposed by us, by foreign governments or international regulations. These are pitfalls that we have set up for ourselves and which we have to be more determined to remove.
By eliminating internal trade barriers we can remove the distortions in our markets and ensure that producers in this country have more control in setting prices instead of having a system where internal trade barriers ensure that trade prices are artificially inflated.
This bill will also remove the requirement that only public carriers can transport grain interprovincially. This is a good idea that will hopefully allow producers to reduce their marketing costs by giving them more transportation options.
The amendments in Bill C-51 also attempt to provide increased protection for grain producers. These include giving the Canadian Grain Commission authority to act against companies which illegally use Canada Grain Act grade names; requiring licensed grain dealers to use Canada Grain Act grade names in all their transactions with producers; specifying the way in which grade, dockage and moisture content are determined and recorded at the county elevator; authorizing the Canadian Grain Commission to suspend the licences of primary elevators where overages exceed allowable limits, which is very preferable; confirming the authority of the Canadian Grain Commission to require operators to fully insure the grain in their elevators; and, requiring prospective licensees to provide specific financial data which demonstrates their financial viability.
Certainly increased protection for producers is something that should be pursued but there is always a danger that by adding more regulation the system is being weighed down more and more. We have to find ways to get protection for producers without getting into the way of how they conduct their businesses.
There are also aspects of these amendments that will hopefully result in increased protection for taxpayers. Under the bill producers will have 90 days to seek payment for their grain after delivery to a licensee. If producers do not seek payment within that time period they will not be eligible to be paid out of the licensee's posted security. Then the companies go bankrupt.
The farmer would also be required to inform the Canadian Grain Commission within 30 days of a failure to be paid by grain companies. The onus will be on farmers to determine if the companies they are dealing with are licensed by the Canadian Grain Commission.
Since licensed companies must post security with the Canadian Grain Commission, claims will not be valid if farmers are dealing with unlicensed companies. The Canadian Grain Commission will be limited on its liability to the amount of the security posted by the licensee. It is intended to be similar to the limits placed on what the government will guarantee depositors if a financial institution fails.
These are some of the bylaws I can support. As the House knows, I am no great friend of the Canadian Transportation Agency or the Canadian Grain Commission. Why is that so? I would like to remind the House that as a farmer and as a politician today I like to deal fairly with every individual.
In May of this year the Manitoba Co-Operator published an article that read: ``Double standard claimed. The Canadian Grain Commission, guardian of the quality control system that makes Canadian grain exports the best in the world, tells farmers to do one thing but one of its assistant commissioners has been practising another. This commissioner has grown unregistered wheat for a whole year before it was internally licensed''. If that is not a double standard, if that is protecting the Canadian farmer, I cannot agree with the bill.
When questioned one Domain area farmer said: "How political was the decision not to register Grandin grain or how political was the decision to bring it in?" When the wheat board commissioner, Mr. Murta, replied to it, he said: "It is an indication of a system that almost got ahead of itself and you can see the result".
We were to have a grain commission to protect the quality of our grain and what did it do? It illegally allowed one of its assistant commissioners to bring in grain.
When another farmer was asked how he felt about it, he replied: "Although the first Grandin wheat came into the prairies illegally, one of the first farmers to import it says Agri-Canada officials told us how to do the paperwork. They told us we didn't have to use variety name. We could use lot number".
Is this the type of grain commission we want? Not I, not as a farmer. It bothers me when I see there will be no limits on storage costs. Will it really increase competition or will it allow big grain companies to fill their terminals and then charge farmers through the wheat board for these costs? There is no incentive for the wheat board to move that grain because I pay the costs, not the wheat board.
One prime example is the situation at Churchill to date. As of Monday there were two ships sitting and waiting for grain. There is no grain available. Elevators in southern parts of the provinces are plugged. Boxcars are sitting idle. We do not need hopper cars to go to Churchill. Boxcars are sitting idle. Transportation costs to Churchill are from $10 to $20 per tonne cheaper than either to the west coast or to the east coast. There is no incentive for the grain companies to move grain to Churchill because the terminal is owned by the government.
Last July I went to investigate the port, to have a look at it. A ship was due for arrival that took on 40,000 tonnes. That terminal with the capacity to store five million bushels had 4,000 tonnes in it. Are those the regulations we are debating? Is that the type of system that is protecting farmers? I feel we are getting shafted.
Why should we be worried? I received a letter last week from a seed cleaning plant which does not come under the rules of the Canadian Grain Commission. Through its expertise and incentive it developed a market for special crops. The seed plant was notified that it would have to become a grain dealer or an elevator with a licence. It would have to put up bonds. It would have to put on insurance. There will be extra costs for the small seed cleaning plant, of which there are hundreds in rural parts of the prairies. The operator told me point blank: "If that is enforced upon me I will be shut down. There is no way I can compete with a UGG or a pool cleaning system. No way will I survive".
Is that increasing competition? I think it is decreasing it. Why are we doing it? Why are we continually allowing bureaucrats and government to enforce regulations or stipulations that hurt the small person?
I would like to go a little further. I noticed in his opening remarks the hon. minister indicated that they wanted to save taxpayers' money. That is one thing Reform is always pushing for. We could very easily do so by removing some wheat board commissioners who were politicians, are drawing a gold plated pension plan and are still drawing a wage more than that of an MP in the House. If that is looking after the small guy, I do not want to be looked after. These grain board commissioners are lifetime appointments.
I read in the new bill that the age limit will be removed. Why? Is 65 not old enough? Why would we want to increase the age until these grain commissioners finally die? That is the only way we will ever remove them and get people to represent farmers.
It is not only that. Further in the bill I read that we are going now to give the commissioners the authority to set their own wage scale. They will not have to go to the cabinet or use an order in council. If that is saving taxpayers' money, I do not think I want to support the bill.
How do I feel about the bill? It reminds me very much of a chicken farmer who is trying to protect his flock in the hen house. He is looking for a guard dog and finally somebody camouflages a fox and says: "Here is a good guard dog. Set him in front of your door". Not only are we being brainwashed or whitewashed with the guard dog; we are throwing him into the chicken coop and closing the door. The guard dog will have his meals any time; he will have any one of the chickens he desires. I cannot support legislation like this.
When I look at section 84 that deals with transportation of grain I see that it is to be deregulated. It will now require not only an export permit from the wheat board to move grain from province to province. It will also require documentation from the Canadian Grain Commission allowing farmers to transport their own grain. Does it make sense? To me it is more regulation, not deregulation.
As a farmer and a new politician I did not think I would see democracy at the point I see it this morning. When I am told as a member of the House that I must accept what the government wants to do and I had better like it or else I will have nothing to say, I get very upset.
I remind hon. members on the other side that come the next election this farmer-politician will not forget those kinds of actions. He will continually remind western farmers that this was how we were treated by hon. members across the way.
We are going to go to our graves physically healthy. We can spend millions and millions in building pools and supporting hockey rinks, but we cannot support a grain transportation system; we do not have the funds.
The other day I saw a news release stating that $4 million was to be spent in the city of Winnipeg for recreation by the government, but we cannot afford to upgrade the line to Churchill. We are going to starve healthy.