Madam Speaker, you have such a good memory that you probably remember that, last Tuesday, I put a question to the Minister of Agriculture. I was not very pleased with the answer, that goes without saying. That is why I want to take advantage of these Adjournment Proceedings to revive the debate; I am ready to listen to the answer of the Parliamentary Secretary to the Minister of Agriculture, who is currently in Japan to promote Canadian exports.
My question is quite simple. Pursuant to the agreement we signed three years ago with GATT, now known as the WTO, the 118 signatory states agreed to reduce direct farm subsidies in their own countries.
Canada is preaching by example. Of course, it is benefiting from all this since it is saving money on the backs of farmers, who will, of course, pass on higher prices to all consumers.
Let me give you an example. Here, in Canada, over a three year period, the government has, under the helm of the Minister of Finance, reduced direct farm subsidies by 21 per cent, or more than one fifth, compared to 23 per cent for our neighbours south of the border.
Some members will say: "Yes, but Jean-Guy, that is 2 per cent more". Yes, I agree, but these cuts are being implemented over seven years instead of three, which is more than twice as long. All things considered, the cuts in Canada are more than twice what they are in the United States. Our farmers are directly affected.
The most striking example is without any doubt the total elimination of subsidies to industrial milk producers over the next five years.
To keep their income at the level it was two years ago, farmers must raise the selling price of industrial milk. And you know as well as I do that each time the price of butter goes up, consumption goes down.
We are in a dilemma and our milk producers are able to increase dairy production by 5 to 10 per cent fairly easily. But if we raise the price, we will have to reduce the quotas. Thus, we are in a catch 22 situation with this government.
For example, the Western Grain Transportation Act was suddenly abolished in the West. That meant $860 million each year. Sure, since that was in western Canada, this good government of ours gave almost $3 billion as a bonus to farmers, while there was no bonus to the dairy producers when their grant was cut; there is a double standard.
Moreover, the Federation of Dairy Producers of Canada formally asked the agriculture minister to postpone until February 1, 1998 the next 15 per cent cut in the grant to industrial milk producers, which is to take effect on August 1, 1997. It is only a matter of six months. We are waiting for an answer and if you consult the calendar, you will see that there will be an election in June. I suspect our good Minister of Agriculture will make his announcement during the next election campaign, which I for one would find quite dishonest on his part.
We are only four months away from August 1, and I wish the agriculture minister would make that announcement, which would
be most reassuring for our dairy producers, since, according to reports, the income of Quebec dairy producers has fallen every year because of these famous cuts.