Madam Speaker, I would like right off to say hello to a friend of in North Bay, Ontario, named Jean Tanguay. He is perhaps watching, and I wanted not only to indicate his presence, but also to tell him that I cannot right now talk about francophone issues or the problems faced by francophones in Ontario, but am rising to speak to an agricultural issue, Bill C-38.
It is in fact the Farm Debt Mediation Act. I am delighted to see that the Farm Debt Review Act is being spruced up. As you will recall, this act was passed in 1986, ten years ago, when an exceptionally high number of farm families were forced to give up farming, because they could not meet their debt obligations.
Debt review offices were set up in each province at the time. The aim of Bill C-38 is to facilitate mediation between insolvent farmers and their creditors. It is also to amend the Agriculture and Agri-Food Administrative Monetary Penalties Act. Bill C-38 repeals and replaces the Farm Debt Review Act and provides initially for a review of the financial situation of an insolvent farmer and subsequently for financial arrangements with creditors, hence the importance of mediation, and, as appropriate, the suspension of the creditors' right to take proceedings against a farmer in serious difficulties.
Bill C-38 also provides for the Agriculture and Agri-Food Administrative Monetary Penalties Act to apply in the case of contravention.
My party, the Bloc Quebecois, supports the objectives of Bill C-38 in general terms. It is not a controversial bill. It appears to respond satisfactorily to the concerns of farmers, with the exception of financial institutions.
This bill is the result of extensive consultations involving all stakeholders, which showed that despite the need to maintain the stay of proceedings clause and to keep on helping through mediation, changes could be made to improve efficiency and lower costs.
When we look closely at the proposed bill, we find that farmers in financial trouble will no longer qualify. They used to under section 20 of the Farm Debt Review Act.
Now, the way I see it, there will be only two categories of farmers who will qualify. First, commercial farmers, second, insolvent farmers, that is farmers who can no longer meet their obligations when they come due or those whose property, if sold, is not sufficient to pay off all their debts.
Bill C-38, as it now stands, tightens up eligibility criteria. Under those conditions, we must wonder what would happen to farmers in financial trouble. Would they have to wait to be insolvent to qualify for help? I will point out that this is a rather strange kind of medicine. Personally I would choose to help farmers put their financial house in order before they become insolvent. Even though it might be a little late to act, better late than never. We must act while there is still time. This is the reason why I am asking the government to do something so that farmers in trouble might also get some respect from the government.
We are told that the new service will be less costly and cumbersome. However, this is one of the particular aspects of Bill C-38 which bother me. Another one is the entrenchment of mediation in the legislation. Under the Farm Debt Review Act, there was a certain amount of mediation, of course. However, with Bill C-38, mediation will be an integral part of the legislation and will ensure a fair process since the mediator will be the mediator. In other words, the mediator will not be in a position to give advice either to the farmer or to his creditors. His title says so. He must remain a mediator.
Another aspect of this bill which bothers me is the power of the minister to designate administrators, as it is stated in clause 4(a). Let me explain. Bill C-38 abolishes regional offices created by order in council since services will now be rendered by regional administrators responsible for the enforcement of the Farm Debt Mediation Act. These administrators will be appointed according to the Public Service Employment Act.
What bothers me is that the minister will have the power to designate individuals who are not public servants under the terms of the Public Service Employment Act if these persons meet the requirements set by the minister. Are we to understand that some of these regional administrators will be appointed in accordance with criteria determined by the minister? If such is the case, I believe we should debate that point. If the minister can designate administra-
tors in accordance with criteria different from those set out in the Public Service Employment Act, how can we be sure the present minister, or an eventual successor, will not use that clause for partisan purposes?
As far as the choice of mediators is concerned, we just learned that they will be chosen through a bidding process and that a large pool of mediators will be established. There again, we can legitimately question the process for the choice of one or all mediators. Given the actions of this government in several instances, we have every reason to ask if there will be patronage involved. This government is clearly too prone to patronage. At one point, there even was a Tory member and minister, the member for Joliette, the Hon. Roch LaSalle, who said that patronage was a normal part of politics.
This has been shown to be true in many instances. It is not only the case with Pearson airport, but also with Expressvu and others. This government indulges in a lot of patronage, particularly in the contracting out of public works. There is a lot of patronage there, and I daresay I would not want it to extend to agriculture, which is such an important sector for the future of many people. I believe the government, through its minister, must convince and reassure us that this will not happen.
Furthermore, we should pay attention to the standards to be applied to the salary of both regional administrators and mediators. On another level, the program administrator will be able to designate an expert to do the financial assessment or an expert to develop options to be considered in the course of the mediation.
Once again, what are the criteria for the selection of these experts? We are told the government could leave it up to the farmer, by giving him the resources necessary, to hire of the expert or the financial counsellor of his choice. What are the criteria or the requirements? You know, when we say "could", this does not necessarily mean it is an inalienable right.
Moreover, there are the twenty or so members who will at some point sit on the appeal committee. Once again, they would be appointed by the minister. We are told they would come from the farming community as much as possible. Again, this is perhaps only lip service, without any serious guarantee, I believe.