Madam Speaker, I thank the House for this opportunity to speak at second reading of Bill C-18.
The bill is a mistake in the making. We are watching a terrible economic mistake unfold before our very eyes. I must admit that there is a feeling of helplessness on this side because the Conservatives have chosen to use their majority to ram this change through to the rural prairie economic base without even consulting with farmers or allowing them the vote that they are guaranteed through legislation.
I preface my remarks by correcting one thing. The minister would have us believe that the May 2, 2011 general election was a referendum on the future of the Wheat Board. He would also have us believe that by virtue of the fact that the election was won by a majority it satisfies the condition of the Wheat Board legislation that guarantees farmers the right to vote on the future of the Wheat Board. I categorically reject that point of view.
I received telephone calls from prairie farmers in Saskatchewan and Manitoba who told me they had voted Conservative because of some other aspect they liked about the Conservative Party platform, which is their right to do. They also said that just because they elected that government it did not give the Conservatives the right to abolish the Wheat Board. They had understood that through the legislation they had been promised an opportunity to vote on it.
The minister has denied farmers the right to vote on how they would market their grain in the future. Therefore, when the minister stands and says he is giving farmers more marketing choice, if he is serious about letting farmers choose how to market their grain, why in God's name will he not let them vote on the issue? It is their democratic right.
If the minister is confident and believes his own rhetoric that the world would be a better place for farmers if they did away with the single desk monopoly of the Wheat Board, then why will he not put it to farmers for a vote? He claims he has the support of the majority of farmers on this issue. Why is he afraid of putting it to a democratic vote?
There has only been one genuine consultation with farmers on this issue. In the absence of a vote being sponsored by the government, the Canadian Wheat Board hired an independent third party and undertook a properly constructed vote using a fair question and fair methodology. As a result, 22,000 Canadian prairie grain farmers voted in favour of keeping the single desk monopoly. That is 62% of prairie grain producers. I was disappointed as I thought the numbers would be higher. We had estimated that about 75% of prairie grain producers supported the single desk monopoly. Nonetheless, 62% is a clear majority on that question.
There is no other form of consultation that is fair. The minister said that when he goes home and talks to farmers they tell him that they want to get rid of the Wheat Board. That does not constitute a scientific survey of the opinions of prairie farmers.
There is no business case for abolishing the Canadian Wheat Board. If there were it would have been tabled in the House along with the legislation. We are dealing with a notion here. We are dealing with the personal opinion of the Minister of Agriculture, who believes that we should abolish the single desk monopoly. I have empirical evidence to show that his view is that of the minority.
I also have well-documented and independently analyzed empirical evidence which shows that the Canadian Wheat Board has provided the best possible price for Canadian farmers year after year. As well, it has minimized their risks. It has provided both of those functions and many others which I will discuss if time permits.
The minister talked about offering farmers certainty, stability and clarity over the next farming year. In actual fact he is being reckless and irresponsible. At a time of economic uncertainty within the country, he is turning the rural prairie economy upside down on its head. There is no guarantee or certainty that the next farming year will provide a stable marketplace for grain farmers' products. There would be no underwriting and guarantees which are presently associated with the Wheat Board on pricing, on shipping capacity and on marketing capacity. All of that is now up in the air.
The minister would have us believe that farmers were better off in the 1920s when they were being gouged by the robber barons and the railway barons. The very reason farmers pooled together to act collectively was to protect themselves from the abuse of the powers that be, those people who held power over the farmers. That is how the Wheat Board evolved. That is how it graduated to being the largest and most successful grain marketing company in the world. It is a great Canadian institution wholly owned and operated by Canadian farmers. It is a brilliant concept.
It works so well that it irritates the heck out of our American neighbours. For years they have been trying to destroy the Canadian Wheat Board because they know it is a huge advantage for Canadian farmers, so much so that they claim it constitutes an unfair trading subsidy and violates international trade agreements. The U.S. filed 13 separate complaints first with the GATT and then with its successor the WTO. The WTO ruled 13 times that there is nothing unfair about Canadian farmers acting collectively to sell their products and look out for their own interests by commanding the best possible prices.
It is hard enough being a farmer with the droughts, floods, pestilence and all the other challenges farmers face. That is now coupled with the economic uncertainty of the 2011 Canadian economy. It boggles my mind that the minister would follow his own ideology, in spite of the empirical evidence to the contrary, and would throw this spanner into the economy of the three prairie provinces.
It worries me when ideology trumps reason, logic, economics, research and empirical evidence. It is a terrible thing to be setting policy by the notions of a failed ostrich rider. The man does not speak from any authority as a grain farmer; he raises ostriches in North Battleford. He criticizes my colleague for being from the good city of Guelph. He criticizes me for living in the good city of Winnipeg. Only he is being driven by this notion, which is a weak notion at that.
There is a great deal of collateral damage associated with the dismantling of the Canadian Wheat Board. The downtown area of Winnipeg that I represent has become the world centre of excellence for grain. That is not only because of its marketing capacity. It is a $6 billion a year corporation, the head office of which is in my riding. It ships 20 million tonnes of class A, the best grain in the world, from Canada.
It has also created the Canadian International Grains Institute, a satellite campus of grain excellence that does research and development funded by the Canadian Wheat Board. It develops and customizes new strains and product lines to fit the markets where the Wheat Board promotes our grain. The Canadian Grain Commission sets the grain quality standards so that we can continue to enjoy our reputation for having the highest quality grain in the world.
All of that will be lost. We will no longer be the centre of excellence. The big grain companies and private grain companies came Winnipeg because it is the centre of excellence and set up their headquarters next to the Canadian Wheat Board. They will no longer need to keep their head offices in Canada once the Wheat Board disappears, which it will because this notion of a voluntary wheat board with dual marketing is a pure chimera. It is a myth.
As a diversion, I will tell the House why it is plainly a myth. If the initial price for grain offered by a voluntary wheat board was higher than the market price there would be no orders. People would go to the market for grain. If the initial price offered was lower than the market price, it would have all of the orders but would have to sell the grain at a loss. That is a recipe for bankruptcy. It is exactly what happened in Australia.
When Johnny Howard, our Prime Minister's Australian counterpart, had the same brain fart of an idea that the Australian wheat board should be privatized. It lasted exactly three years as a voluntary board once its monopoly was taken away and it went bankrupt. Sure enough, that market share went into the hands of the private grain companies, the multinational agrifood businesses, which wanted to control the food supply system from seed to final retail production. They wanted it all. Believe me, they have been salivating over this market segment for 75 years.
The Conservative government is going to do the Americans' dirty work for them and hand them that market share on a silver platter, without any consideration of the best interests of the very grain producers who it is duty bound and honour bound to represent. It is amazing that the Canadian Wheat Board should finally crash because it has been sabotaged by the minister, a rat in the woodpile. The minister is undermining the very institution that he is honour bound by his office to uphold and be the champion of. He is not supposed to be the saboteur of the Wheat Board; he is supposed to be the champion of the Wheat Board. There is an enemy within. The Canadian farmers have elected an enemy.
The implications are profound for the prairie economy if the Canadian Wheat Board disappears.
I will dwell briefly on the economic impact just for the city of Winnipeg, because it is the area I represent. A PricewaterhouseCoopers study in 2005 estimated the gross output of the CWB impact in Winnipeg at $94.6 million. There are 400 employees in its head office. The spin-off employment of the CWB is estimated at more than 2,000 jobs. At the provincial level, the CWB gross output contribution is another $323 million, with more than 3,000 jobs of a total labour-income impact of more than $140 million. I cannot tell the members how frustrated we are.
I would like to deal with some of the corresponding collateral damage, as I am calling it. For the Port of Churchill, the minister has now come up with $5 million a year for five years to offset the impact on the Port of Churchill. I read that as an acknowledgement that the Wheat Board no longer shipping its grain through Churchill would have a profound impact. However, it begs the question of why he is so eager to abolish the Canadian Wheat Board when it will cost him a minimum of $25 million in impacts that the government otherwise would not have to shell out. It is money it does not have, I might had. It has to borrow every penny that it shovels into this.
As to the closing costs, I asked the minister this question. What would it cost to shut down a $6 billion a year corporation, the most successful and largest grain marketing company in the world? KPMG, an independent authority, estimated as much as $500 million. It would have to pay severance to all the employees. It would have to deal with contracts that had been signed for the delivery of grain, that now would be broken. It would have to dismantle overseas marketing offices.
The average layperson does not understand the marketing network we have established here. It is magnificent and that is why it is so successful. Now the government will borrow $500 million on the open market. I do not know where that kind of money is borrowed from these days. That is just to fulfill this free market flight of fancy of that minister who got into politics specifically to abolish the Canadian Wheat Board.
I remember when he was the assistant to Elwin Hermanson, whom the Conservatives have happily put in charge of the grain commission, again, infiltrating these organizations to destroy them and collapse them from within. The minister has breathed, eaten and slept abolishing the Canadian Wheat Board ever since he came to Ottawa. Now, in spite of reason, logic, economics and empirical evidence, he is hell-bound and determined to do the dirty deed and abolish what we believe is a great Canadian institution.
It would not be paranoid to presume that this is part of a pattern. Every time there is a trade advantage to Canada, those guys feel compelled to sacrifice it and give it up, such as the softwood lumber agreement. When the Americans came breathing down our necks telling us we were enjoying far too much advantage in that industry, we forfeited.
When it comes to the Wheat Board and when it becomes evident that we do it better, what do we do? We give it up and forfeit it. We yield to the bullies in an international trade situation and give up our advantage.
We do not have champions here; we have cowards in giving up so readily, and again, driven by ideology and not by anything else.
As I close, I would like to move an amendment. I move:
That the motion be amended by deleting all of the words after the word “That” and substituting the following:
“this House declines to give second reading to Bill C-18, an act to reorganize the Canadian Wheat Board and to make consequential and related amendments to certain acts, because it:
(a) fails to respect the will of the majority of prairie farmers who have expressed a desire to maintain the current composition and structure of the Canadian Wheat Board;
(b) ignores the fact that the Canadian Wheat Board is funded, controlled, and directed by Canadian farmers and removes their autonomy to maximize prices and minimize risks in the western wheat and barley market; and
(c) makes sweeping decisions on behalf of prairie farmers by eliminating the single-desk system that has provided prairie farmers with strength and stability for nearly 70 years.
