Madam Speaker, the remarks made by the hon. member for Saskatoon-Dundurn and the questions posed by the hon. member for Regina-Lumsden show the conflict that exists in the agricultural sector and the need for reform.
Of course, we are concerned about the changes or budget cuts recently announced by the Canadian Minister of Agriculture and Agri-Food. In its motion, the opposition denounces as unfair to some Canadian farmers the budget cuts recently announced by the Minister of Finance. These people are clearly acting in good faith but I am sure that they are mistaken.
Sometimes, our colleagues opposite do not realize that this country is facing a crisis as a result of the deficit accumulated over the past 15 to 20 years. Our deficit represents 73 per cent of GDP. We can no longer put it off. Whatever difficulties await us in the future, certain problems must be solved, namely bringing public spending under control and introducing sound management for all Canadians without exception.
The Department of Agriculture was asked to cut spending by 19 per cent. Other departments were also required to make sacrifices. The Department of Agriculture met the challenge and found a way to sweeten the pill by ensuring that the cuts are fair to all farmers across Canada.
Breeders in animal feed deficit areas receive feed grain transportation subsidies aimed at reducing the cost of this feed and allowing breeders to compete. Financial help is provided to breeders almost everywhere from the Atlantic provinces to the Yukon, including parts of Eastern Quebec, Northern Ontario and British Columbia. Those are the facts.
A subsidy on which rely the producers in most provinces, including Quebec, is about to disappear, but there is more. The government recognizes that this may not be a popular measure. It also knows that it cannot, and must not, ask producers to drastically change their operations overnight.
Contrary to what some might think, the government is willing to listen. During our post-budget consultations, we learned that
the initial date set for the elimination of the FFAP, the Feed Freight Assistance Program, which was October 1, did not give enough time to the producers and to the industry to adjust to such a major change. Consequently, the government agreed to wait until December 31, 1995, and not reduce the level of assistance provided during that period.
While the government will eliminate the subsidy provided under the FFAP, it will inject $62 million, over the next ten years, in the regions where the FFAP is currently in effect. Part of these funds will be used to make the payments provided under the program, until it expires later this year. The government is also providing financial assistance by giving a lump sum payment to western farmers affected by the repeal of the WGTA. We are receptive to the concerns of producers, while also showing fiscal restraint with the taxpayers' money.
This financial assistance will be provided to affected producers in every province and region in the country. How will that money be spent? As you know, we do not have that answer yet, but we decided to seek the help of experts. The government feels that those who are most qualified to answer that question are the producers, the people in the food and cattle industry, the feed producers and the animal farmers from the regions which will be most affected by the gradual elimination of the FFAP.
This is why the Minister of Agriculture and Agri-Food announced that consultations would be held with the producers, in the coming weeks and months, to look at ways to use the FFAP adjustment fund and the transition fund. Moreover, these people will look at various financing options offered by other programs run by the Department of Agriculture, including the joint investment project in agri-food research.
The government is aware that hard times lie ahead. This is not necessarily the best solution, but under these circumstances, we have to act. However, we would be grateful if the opposition could come up with better solutions. I remind the House that, because of the disastrous economic situation we have inherited from the previous government, we have no other choice but to take rather drastic measures.
National consultation is the only way to establish closer ties with representatives from the agricultural industry. Together, we can find solutions, come up with new ideas and even reach compromises that would ensure that all farmers are treated fairly. This agricultural reform should have been implemented several years ago. Think about what is happening in the area of fisheries and oceans, where the fish stock has been declining for the last ten years, where we are still waiting for changes that should have been made more than 10 years ago, and look atthe results. We do not want the same situation to occur inagriculture.
The whole world is undergoing unprecedented changes and in turn we have to make fundamental changes to preserve our agri-food industry.
Finally, all those who know something about agriculture realize that this industry has been very efficient in the past in Canada. We are one of the most fortunate countries in the world, because our agri-food industry has evolved rather nicely. However, with all the changes that were made in terms of GATT and NAFTA, and with the competitiveness of the United States south of our border, we are under a lot of pressure.
There are times, I must say, when the dealings of the United States on the world market create unfair competition. A country with a tenth of its population is bound to be affected by its actions. This is why the Department of Agriculture must make changes. We do not want the situation to worsen. It could have very disastrous consequences for all of Canada.
So, we must recognize that the measures put forward are not perfect. But nothing is perfect in this world. Any way, the important thing is to act. As the situation evolves, we will make adjustments to ensure that all farmers are treated fairly.