Mr. Speaker, I rise today to speak on behalf of the Progressive Conservative Party and our wheat board critic, the hon. member for Brandon—Souris, in support of private member's Bill C-283.
I must begin by saying that the bill put forward by the member for Portage—Lisgar addresses some of the most paramount concerns farmers have with the Canadian Wheat Board, which are transparency and accountability. As in any crown corporation or mixed corporation Canadians expect no less.
The Canadian Wheat Board was incorporated by the Canadian Wheat Board Act in 1935 to market interprovincially and to export Canadian wheat and barley for producers.
The wheat board is a monopoly system. If a producer wants to sell wheat or barley outside the CWB he must apply for an export permit. This means he sells his product back to the CWB, obtains the permit, buys the wheat back from the CWB and then sells it on the open export market.
He has to go through the wheat board. He cannot market his wheat without going through the wheat board, a wheat board that generates sales of wheat and barley in excess of approximately $6 billion annually.
The point I am getting at is that farmers do not have a choice but to market through the wheat board and there is a lot of money at stake for the producers. Therefore, why should the Canadian Wheat Board not be accountable and transparent to those very producers?
There have been a lot of changes to the Canadian Wheat Board over the years. It was originally intended by the Right Hon. R. B. Bennett's Progressive Conservative government that the Canadian Wheat Board be a voluntary institution with a mandate to operate in the best interests of producers.
It is unfortunate that the wheat board no longer operates in the way it was originally intended. It eventually became a monopoly and a means of controlling wheat prices for the federal government during World War II.
Its main aim was to limit grain price increases so as to safeguard the government's wage and price controls and control the cost of mutual aid to the allies during the war.
In 1967 the Liberal government of the day made the Canadian Wheat Board's monopoly permanent, a truly sad day for the majority of farmers who today want a voluntary wheat board. Furthermore, when Bill C-4 was passed last June further changes were made.
For the first time in history 10 out of the 15 board of directors were going to be elected by producers. The elections are being held this fall. Hopefully the newly elected board of directors will have some say in the future of the Canadian Wheat Board and will be able to make the necessary changes to ensure that the board truly evolves in the 21st century.
That being said, somewhere along the way the farmers started to mistrust the agency that was supposed to represent their best interests. They started to question its monopoly and their returns compared to a fair market value, and rightly so. They saw farmers south of the border getting more per bushel of wheat than they were receiving for the same grade through the wheat board. In some cases the farmers' suspicions were not unfounded.
That being said, most farmers in western Canada do not want to eliminate the wheat board, they just want the wheat board to be more accountable.
It is no different than the constituents that each individual member of parliament in this House represents. Canadians expect accountability. The last time I checked they expected a lot of accountability and I would suggest that members on the other side of the House take a long hard look at accountability.
I can tell members on the other side of the House who want to enter this debate that accountability will stick to them like scum on a pond and it will not be easy to get off. Canadians expect accountability.
I firmly believe that the bill before us today will only add to the accountability through the transparency of an annual audit by the auditor general.
I must also say that this is an issue that is not new to farmers in western Canada or to this House. During the debates and the committee hearings on the bill previously known as Bill C-4, which eventually passed last June, members of this House questioned the government as to why it was not willing to put forward legislation that would make the Canadian Wheat Board more open and more transparent. In fact, my colleague, the member for Brandon—Souris, put forward similar amendments at the committee level during the study of Bill C-4 that would have given the auditor general the power to audit the Canadian Wheat Board. Unfortunately the Liberal majority of the committee did not recognize these concerns and the amendments were subsequently voted down.
However, the member for Brandon—Souris did not stop there. He pushed for more amendments with his Senate colleagues and eventually the Senate put forward several reasonable amendments, one of which allowed the auditor general to audit the Canadian Wheat Board's books within the first two years after the bill takes effect.
The audit is provided to the board of directors and to the minister. This amendment, along with other Senate amendments, including the elimination of the contentious inclusion clause, were eventually passed when the bill received royal assent June 11, 1998.
This adds further transparency to the Canadian Wheat Board, but there is still an opportunity for more transparency, and I believe we have that opportunity with Bill C-283.
Members on the government side will argue that due to international market sensitivities the government should not reveal the wheat board's secrets. My gracious. That is quite a statement.
The government will also say that there is an annual audit. When the Canadian Wheat Board releases its annual audit, if members opposite actually look at the annual report, they will realize that it has as much depth as the government's vision of Canada.
The government will also say that the professional accounting team of Deloitte & Touche currently audits the wheat board. Yet when my colleague, the hon. member for Brandon—Souris, requested a 1992 managerial audit by the same company he was told it could not be released. He was told it was confidential. That answer is just not good enough for Canadians. They want transparency in their publicly funded institutions and they expect no less.
That being said, the U.S. government formally requested an audit of the wheat board over six months ago. In fact, the Toronto Star reported on January 14, 1998 the federal agriculture minister warning “The U.S. government is poised to demand an audit of the Canadian Wheat Board because American grain growers fear they are victims of unfair trade practices”.
If other foreign governments can request audits of the wheat board it would only make sense that the people of Canada, the farmers whom the wheat board is supposed to represent, are afforded the same rights. The unfortunate thing is that common sense does not always prevail in the benches opposite.
It was probably put best in a January 1998 Globe and Mail article that said “Farmers have no way of knowing whether the wheat board is doing its job, because it operates in secret. And they have no other recourse, such as a mediator or an ombudsman, against apparently incompetent, abusive and fraudulent actions”.
Once again it would only stand to reason that the Canadian Wheat Board be accountable to the farmers it is supposed to represent. It would only stand to reason that an annual audit be allowed to ensure that the Canadian Wheat Board is indeed accountable and transparent to the farmers it is supposed to represent.
The Progressive Conservative Party will support this bill and looks forward to reviewing it when it is sent to the Standing Committee on Agriculture and Agri-Food.