Mr. Speaker, I am pleased to speak today on Bill C-38, the farm debt mediation act. The purpose of the bill is to change the farm debt review legislation and replace this decade old legislation with a review board system which involves a mediation type service for farmers who are facing seizure of their property by creditors.
First I will discuss the legislation currently in place and then the changes that have been made to it. After that I will discuss issues related to the farm debt review bill. The main provisions of this legislation put in place a review of a farmer's financial affairs, as there was in the old act and the provision of mediation between farmers and creditors to replace the old system which was far more adversarial. I am very familiar with that system. I have worked through it with some farmers.
The bill puts in place an order temporarily suspending the right of creditors to continue proceedings against farmers. The intent of this legislation more than anything else is to hold off creditors that are knocking at the door if the farmers and the board feel there is a possibility of working out a deal that will be beneficial to the creditors and the farmer involved. That is the purpose of the act.
The new system would replace the appointed panel members with mediators who would be hired after a bidding process. It allows a farmer facing insolvency to apply for up to a 30-day stay of proceedings. Then a farmer could renew this 30-day stay of proceedings for up to a total of 120 days.
In complicated cases, an expert on debt and the reorganization of debt could be hired to prepare an assessment of the farmer's situation. That was done under the old system as well.
The main change in the process is to move to a system which involves more mediation. In fact I know from personal experience that in many of the cases under the old system it did work more like a mediation process. In a way this formalizes the process that was being used before this change to the act.
The appeal board is made up of farmers who are considered to be financial experts and would be available to hear complaints about decisions and to grant, extend or to terminate proceedings. That is what this legislation is about.
The Reform Party's policy, even before the last election, supports measures by government to give farmers the instruments necessary to create more self-reliance. Farmers have used these instruments. Some have been available for some time. Farmers have used them extremely well and are far more capable now of working through complex financial situations, the reorganization of debt and situations like that, than they were a few years ago.
Unfortunately part of the reason they have become so good at reorganizing debt is that some of them have had to do it several times. Agriculture has gone through extremely tough times. Unfortunately, governments-it is not just this Liberal government but the Conservative government before as well-have put in place legislation and programs which have damaged farmers immeasurably.
It is very unfortunate that we even need legislation that is geared to helping farmers reorganize debt or geared to finding some way
of working with creditors so they have something left should they have financial failure and should the creditors come to collect. I put the blame for that clearly at the feet of governments and again, not just this government. Certainly past Conservative governments have put in several programs which have made things much worse for farmers and which have distorted the market so badly that farmers really do not have the opportunity to work within a free enterprise market situation. Instead they have had to work under the framework laid out by these various government programs. That has harmed the competitive ability of Canadian farmers immeasurably.
Liberal governments before the Conservatives were in power and this current Liberal government have to share some of the blame for those programs which have replaced the market situation which would be much healthier for farmers.
While this legislation makes some improvements to the farm debt review board act, it does not solve the main problem that farmers face today. The main problem that farmers face today directly stems from governments becoming too involved in the agriculture industry. I am not just talking about the Canadian government, although the Canadian government is certainly guilty of this and has been for the past 20 to 30 years. I am also talking about foreign governments. The European governments have dumped completely unfairly on markets around the world that under a competitive situation, under a fair trade situation, would have been markets for Canadian farmers.
In the grain industry, for example, the American government with its export enhancement program depressed world markets around the world. Canadian governments, Liberal, Conservative and now Liberal again, have put in place programs that make it difficult for farmers to do business. That is what they want to do. Farmers have no choice with the present trade agreements.
We have moved to some extent back to the free enterprise system that farmers want, but we have a long way to go and the government certainly has not helped to accommodate that change. It should be chastized for that.
I mentioned in my opening remarks that I know how the old Farm Debt Review Act works. I have seen how the panels work. In some cases it has helped farmers work through some very difficult situations. Unfortunately in most cases it involves the farmers going out of business. At least in some cases they can go out of business without having to carry debt beyond the end of their farming business.
In other cases there have been successes. Some farmers who have used the farm debt review board have managed to keep their farms. In some cases they rent the land from the Farm Credit Corporation, which became the owner as a result of the farm debt review board process. The farmers were able to farm the land. In some cases they were able to buy the land from the Farm Credit Corporation and other creditors.
The old Farm Debt Review Act worked in some cases. It was good for some farmers. At the same time it considered what the creditors wanted. It succeeded in getting farmers and creditors together to try to work out a deal which would be beneficial to both.
On the other hand, this program involves a lot of overlap with provincial programs which are already in place. I have personal experience. I was hired as a consultant by Alberta agriculture to work with farmers. I know the Farm Debt Review Act duplicated the services which were offered by the province and by the private sector. The duplication was completely unnecessary. Unfortunately that will continue with the new act. In many cases it puts the federal government into provincial jurisdiction.
The services that the mediator and others in the process offer to farmers to work out a deal with creditors are being provided by private consultants and provincial governments. The provinces have hired farmers on a contract basis to do the work. There is a lot of duplication.
Ten years ago when the Farm Debt Review Act was put in place it served a purpose. However, the provinces were fulfilling that role much better than the federal legislation. In the late 1980s farmers were being forced out of business as a result of government involvement in markets, which was depressing the prices at alarming rates.
I believe there was a role for provincial governments. Private consultants were not available and they certainly were not trained to the level which would allow them to help farmers work through their problems. For provincial governments to get involved made sense back then. They provided a service.
I worked for Alberta agriculture. I worked with dozens and dozens of farmers as a business management consultant. I helped them work through their difficult situations.
I have often worked with creditors just as a go between to try to work out a deal, sometimes very successfully but in many cases unfortunately completely unsuccessfully in terms of saving the business. However, often the farmers who were leaving the business because they were being forced out ended up with something. They had a little something to help them.
I think that was a useful service. I really wonder about the necessity of duplicating that service. I now know that private consultants are far better trained, are there and are quite willing to help farmers to work through these very difficult situations and, more important, to work with farmers before the situations become
so desperate that they go to the farm debt review board or to this new farm mediation system.
I do think there are some improvements in this legislation. For some of the reasons I mentioned earlier this legislation does provide a better framework. However, I have some specific concerns on the amount of money involved. My first concern is that the budget for this process is way too high. It is not just an arbitrary judgment that I make. Right now the Saskatchewan farm debt review board handles about half of all the cases in Canada and the cost is $700,000. Yet the budget for this new new farm debt board is $2.2 million. It leads one to ask if this government is anticipating that the load of farmers needing this service will increase dramatically. There has to be a reason for a budget being much higher than would seem to make sense when one considers the current budget.
One has to ask whether this government really does anticipate that more farmers are going to end up in serious financial trouble and will need the services of this act to work through financial difficulty, which usually ends in farmers being forced out of business and losing, in many cases, all their assets but at least not having to carry debt beyond the termination of their business.
As members would know, many Reform MPs are farmers or were before they got into this business. Of 52 members of Parliament, we have somewhere between 14 and 17 members who have a farming background, own farms or have worked in the agriculture industry. That is a real high number for a caucus of 52. When we have meetings dealing with agricultural issues it is not unusual, as we have had many times in the past, to have 14 to 16 Reform MPs at these meetings. The interest in agriculture certainly cannot be equaled in any caucus. The level of expertise on agriculture certainly cannot and is not equalled in any other caucus in the House.
The importance that the Reform caucus places on agriculture, on farmers, on ranchers and on others in agricultural business is not equalled by any other caucus in this country. We have shown a commitment to farmers and we are going to continue to do that. We ask farmers, as we ask all other Canadians going into the election, which seems certain to be coming quite soon, to look at everyone's platforms. We ask them to take a good look at the platforms that are being offered in agriculture and in other areas by all the political parties. I then ask them to look at the Reform platform and compare it to the platforms offered by others in the agriculture area and other areas.
Let us have the election fought on issues, not on labels that one party tries to pin on another. Let us not have an election with name calling and dirty politics. I invite any other political party to compare what we offer in agriculture and in the the rest of our platform to theirs. If that comparison takes place during the election campaign, Reform will form the government after the election.
All I ask is that the political parties compare platforms so that Canadians can compare platforms and vote for whomever has the best ideas, the best policies, the best people to carry them out and the best leader. I believe it will prove to be the Reform Party.
Another problem with the legislation is that there is too much political patronage. That should not be a big surprise because members throughout the day have been pointing out Liberal patronages one after the other; all Liberals appointed to the Senate since they came to office. It is unbelievable.
Even under the Mulroney government there was an elected Senator, Stan Waters of Alberta. He happened to be a Reform member. But what is important is that he was elected to the Senate. A precedent was set.
British Columbia has legislation to accommodate elected senators. The premier of British Columbia has asked that senators be elected. Albertans and the Government of Alberta have asked for elected senators. And what do we get? Every senator since the election has been replaced by patronage appointees by the Prime Minister. That is completely unacceptable. That is just the start of the list of patronage appointments. It goes on and on. I am not going to get into the list because I do not have time in my presentation today.
This legislation just sets up space for more patronage appointments. That is completely unacceptable. That alone is reason enough to not support the bill. We do not want to support anything which would allow more spots to be filled by patronage appointments.
This legislation is a minor one, acknowledged. It makes minor changes to the existing Farm Debt Review Act. It is really dealing with a small issue in terms of how many people it affects and it should be dealing with important issues. At least it does offer some changes to improve the existing Act.
I want to congratulate the government for those particular changes. On the other hand, as I have said, there a lot of other things that should have been changed but were not. There is $2.2 million in the budget, but if we could trust that the government had any ability to forecast accurately, I think farmers should be very concerned because the budget is way beyond what should be required when we consider the present costs.
Instead of dealing with this legislation just before an election, the government should be dealing with some serious legislation to improve grain transportation which would allow competition in the grain transportation system, allow some recourse for farmers to make the railways and grain handlers accountable. But it is not
doing that. The government should be dealing with legislation that would get rid of the wheat board monopoly and instead improve the wheat board to make it accountable to farmers and to give farmers an option to either market their products through the wheat board or a grain company or on their own. The government did not do that, therefore we are debating this legislation. Much more important legislation should have been debated than this. For that reason I will not take any more time on this legislation.