Ralph Goodale

[Grain Transportation, September 27th, 1994]

Mr. Speaker, since May 16 I have been meeting on a very regular basis with not only representatives of the railroads but also their unions, the grain companies and all the governmental institutions involved in the transportation of western grain in order to ensure the backlog problems that occurred in the last crop year are minimized and hopefully avoided altogether in the current crop year and for the future.

Those meetings through the spring and the summer have identified a range of actions, including the solution to the back haul problem that the hon. gentleman refers to, plus the matter of demurrage and storage charges on rail car, plus improvements

in the efficiencies of the system, plus the addition of private cars to the fleet and so forth.

All those measures are going forward and, as promised in the spring, those which require either a legislative framework or a regulatory framework to allow them to be implemented will be proceeded with in the House this fall.

[Grain Transportation, September 27th, 1994]

Mr. Speaker, in dealing with the situation pertaining to the railways to which the question refers, the hon. gentleman will know that while there are provisions in the Western Grain Transportation Act that deal with the performance standards of the railways, under the previous government the appropriate regulatory regime required under those legislative provisions was never implemented or enacted.

We have the draft regulations being prepared at the moment so that those provisions of the Western Grain Transportation Act pertaining to railway performance can be implemented and utilized in appropriate circumstances. The hon. gentleman can rest assured that there is no double standard.

[Canadian Wheat Board Act, September 27th, 1994]

moved that Bill C-50, an act to amend the Canadian Wheat Board Act, be read the second time and referred to a committee.

Madam Speaker, last October the government was elected based on a comprehensive plan for Canada known as the red book, which was our platform. In that red book we made a number of commitments to the people of Canada. I am very pleased that within our first 11 months in office we have made considerable headway on a number of fronts.

As Minister of Agriculture and Agri-food it is my great pleasure to speak today about one of these initiatives, namely the government's commitment to research and development specifically in the context of Bill C-50.

I recall attending my very first meeting with producers as a new minister. It was a meeting of the Manitoba pool elevators last November in Winnipeg. There were a number of issues on the minds of delegates at that meeting. They wanted to talk about GATT and about trade issues. They wanted to discuss transportation and safety nets. All of these issues have been moving forward at a very rapid pace and some of them with much public fanfare and media interest.

I also recall at that meeting another important issue that was raised by one of the delegates, one which received less fanfare and less public attention. The question was about research. I told the delegates at the Manitoba pool convention what I have been telling farmers and farm organizations across the country throughout the course of this past year. I believe agricultural research is an extremely important issue, one where we must continue to focus our resources.

My department already has a very good track record in selecting research and development projects with a high return for Canada. We are continually reviewing our research priorities and programs to ensure that we are getting the best possible value for every research dollar. We are also nurturing our partnership approach to industry responsive research by inviting our industry, academic and producer partners to take responsibility with us.

We are placing a strong emphasis on matching funding and joint projects with stakeholders in all facets of our operations. This allows us to use the market for direction.

Some might say this approach reduces the federal commitment to research or that my department may use the check-off proposed in Bill C-50 as an excuse to reduce expenditures in wheat and barley research. While it is likely that overall government spending will decline as we battle against the deficit, as we must, I want to emphasize that innovation and a strong research program are essential to Canadian agriculture and will be a priority for my department.

I make no apologies for sharing the responsibility of the future of agriculture with our industry and producer partners. Some members may have heard me talk about the matching investment initiative which we have launched this past year. Under this program we will spend some of our existing R and D dollars in a new way. Where industry identifies research projects that are of commercial interest we will match industry's investment dollar for dollar. This is not new money but money we have redirected from lower priority activities.

This approach makes sense and allows us to move forward on research while maintaining fiscal responsibility to Canadians. Producers have told me they want to play an important role in research since the results of research directly affect their operations and ultimately their livelihoods. This shared approach gives us the best of both worlds.

Good research is not a frill or an ivory tower pursuit to be thrown aside in tough times. Dedicated and focused research is a necessity for survival particularly in tough times. Dedicated and focused research supplies the technology that creates opportunities for market development and new exports which are so vital to the sustainability of our industry.

One of the most important initiatives with significant long term implications for the future of agriculture generally and the grains industry in particular is in plant breeding. Today we are considering Bill C-50 which is legislation that will lead to an additional $4.7 million in annual investments in plant breeding research.

This investment has the potential in about 10 years to translate into a $400 million increase in gross returns to prairie farmers annually. It is an investment which will cost wheat producers about half a cent a bushel or about 20 cents a tonne. I think any investor would be more than just a little interested about such an attractive rate of return.

What I am talking about today is a research partnership, the result of a proposal put forward by producers through the Western Grains Research Foundation. The proposal calls for a voluntary producer levy or a check-off program to support plant breeding research programs for wheat and barley. The federal

government is acting on this recommendation from the foundation.

For the past several months my department has been working very closely with the Western Grains Research Foundation to develop a check-off program which will enable grain producers themselves to supplement existing research budgets. To make this happen we require some legislative amendments. That is why I am recommending that the act which governs the Canadian Wheat Board be amended to allow voluntary levies to be deducted for the explicit purpose of supporting plant breeding research. Such deductions are simply not possible under the existing Canadian Wheat Board Act.

I bring this legislation to the House today and I am asking members to support it based on the knowledge that this program is a joint effort among government, industry and the research community. This check-off plan has been developed in close consultation with producer groups as well as with scientists from universities and from my department.

As I stated earlier I am a firm believer that the best way we can accomplish our research objectives is for both industry and government to invest in research in a partnership approach. This effort before you, this specific check-off plan, is supported by the Canadian Wheat Board and has already received strong support from a majority of farm organizations. And well it should since the concept has been a producer initiative from day one, an initiative which we have been working on with producers to make it a reality.

This program will generate additional research funds through the voluntary levies on wheat and barley sales. The levies will be deducted from Canadian Wheat Board final payments to producers. They will apply to board sales of most wheat in the four western provinces and the sales of barley in Saskatchewan, Manitoba and B.C. Alberta sales of soft white wheat and barley would not be subject to this levy as producers of those commodities already have check-offs in place provincially.

Some people might point to reduced wheat acreages and suggest that producers will not want to support a so-called declining crop. To these people I would say that despite ongoing diversification of crops, wheat is still a major crop for many producers on the prairies. Last year it contributed $2.7 billion to the Canadian economy.

Despite the recent and dramatic surge in the importance of canola as a crop in Canada, with better world prices in the last number of weeks wheat may have regained its rank as our most valuable crop. It is important to remember also that wheat is not one crop but actually is seven. Some varieties such as durum, extra strong, and white prairie spring are gaining acreage and gaining market share.

I would like to provide the House with a bit of background about why research levies are needed and what we hope to achieve with them. I would like to explain how the grain producers on the prairies in partnership with government came to the decision that such levies are a necessary and important key to the future of prairie agriculture and the grains industry in Canada.

The Western Grains Research Foundation is a federally chartered public organization with a proven track record in supporting effective pure research. It was established just over 10 years ago to allocate research funds. Its economic base came from the interest earned on $9 million left over from the prairie farm assistance act when it was repealed.

Currently the foundation distributes about $900,000 a year in interest funds. It has done some very good work with that money. It has focused on vital issues such as the problem with fusarium head blight in Manitoba. The foundation is quick in its reaction time and it is targeted on vital issues.

The foundation is run by a board of directors representing its member producer organizations and includes a representative from the research branch of my department. What this means is that the research decisions of the Western Grains Research Foundation are made by producers and the foundation is accountable for those decisions to all of its producers as well as the federal government.

To carry out its new research objectives the foundation will establish two research advisory committees, one for wheat breeding and one for barley breeding. These committees will be responsible for developing operational plans and co-ordinating research programs designed to achieve our plant breeding objectives. They will decide which research projects to fund in western research centres and the emphasis will be on funding work that will meet a future market need.

Western plant breeding centres receiving funding will report on their progress annually to the Western Grains Research Foundation. This progress will be reviewed by the advisory committees who will make decisions about continued support. Furthermore the foundation will report annually to all prairie permit book holders giving an accounting of the money received and how it has been used to accomplish the research goals.

The role of the Canadian Wheat Board in all of this is purely administrative. All major decisions will be the responsibility of the Western Grains Research Foundation which is ultimately accountable to its producers and to the Government of Canada. I feel very comfortable with the accountability process which the Western Grains Research Foundation has established for itself under this proposed program.

In supporting these amendments to the Canadian Wheat Board Act hon. members of the House will be in very good company. They will in fact be joining a team of supporters from

12 prairie farm organizations which make up the Western Grains Research Foundation.

Those member organizations are: United Grain Growers; Western Canadian Wheat Growers Association; Manitoba Pool Elevators; Prairie Canola Growers Council; Flax Growers of Western Canada; Saskatchewan Wheat Pool; Keystone Agricultural Producers; Western Barley Growers Association; Oat Producers of Alberta; Alberta Wheat Pool; Canadian Seed Growers Association; and the Unifarm organization of Alberta. There are recent indications that other groups and organizations wish to join this team of research oriented and progressive farm organizations.

These organizations are key players in the Canadian grains industry. All of them have backed the voluntary check-off proposal and they have consulted with their producer members. It was the decision of these organizations that dedicated research funds be collected and applied explicitly to plant breeding research.

What we have here is a program that producers want. It is one we will be supporting through the legislative amendments to the Canadian Wheat Board Act now before the House in the form of Bill C-50. Simply put, the program will enable producers to do what they have asked for: to invest a portion of their own money into the future of their crops, their industry and their very livelihoods.

Canada's grains industry is highly dependent on exports. Today's grain customers are demanding both a stable supply and a high quality product that meets their end use requirements. I have consistently maintained that we must be able to respond quickly to changing market conditions if we are to remain competitive in those vital global markets.

The proposal before the House will help us to improve our competitive advantage while also improving farm incomes. New varieties of wheat and barley will be developed. New varieties will lead to improved field performance, higher yield potentials, increased resistance to disease and insect pests, earlier maturity and reduced harvest losses, all improvements which will reduce per tonne production costs for farmers.

The development of new varieties with specific qualities required by the marketplace will improve sales through the development of new market opportunities. This will keep Canada on the fast track in meeting marketplace demands.

For example, Canada must be able to respond rapidly to new demands for varieties of wheat suitable for specific uses such as frozen bread dough, Asian type noodles, or new varieties of malting barley that are needed in markets like Korea and China. In fact we do have a variety of wheat that is suitable for the frozen bread dough requirement, but so far it is not grown in large enough quantities.

Meeting the demands of these changing trends in food consumption preferences could mean significant new market potential and increased profits for western producers. Sound investments in crop research will pay off in better market returns to farmers in the future.

Will Canada be ready when opportunity knocks in terms of these new markets? With the benefit of research initiatives such as this voluntary check-off proposal contained in Bill C-50, I firmly believe Canadian farmers will be in a better position to compete in that very tough and demanding international marketplace.

As I said earlier, the program has the potential to bring plant breeding research almost $5 million in additional funding each year. The House will note that I used the word additional. This is important. I know concern has been expressed in some quarters that governments might take advantage of the contributions made by producers under this program to reduce the government spending on wheat and barley breeding programs.

We all know that cuts have occurred throughout government and that overall spending reductions are likely to be a fact of life in government for the foreseeable future. My department will not target wheat and barley research for special reductions just because of the contributions made by farmers under the program. Funding levels for wheat and barley research will be held in proper proportion to the amount being spent on research for other grain crops within the Department of Agriculture and Agri-Food Canada.

Here is how this voluntary check-off will be implemented. It will work in the simplest form possible through deductions from Canadian Wheat Board final payments before that money is distributed to farmers. When I say "as simple as possible" I mean just that.

There are no huge administrative costs or red tape. I would suggest that the administrative costs proposed in Bill C-50 will be lower than the costs of other similar types of programs already in place in some provinces.

Annual operating costs are estimated to be in the order of $106,000 a year or about 2 per cent of revenues. That amount will be deducted from the total amount of levies collected. Western producers of wheat and barley would pay levies of 20 cents per tonne on wheat and 40 cents per tonne on barley. The barley levy is higher to partially offset the lower volume of barley deliveries.

The amount to be levied will be fixed by order in council. The levies will be deducted from Canadian Wheat Board final payments beginning with those for the 1993-94 crop year and those final payments in the ordinary course of events for 1993-94 would be made in January 1995.

The funds collected, beginning in the coming year and in subsequent years, will be automatically transferred by the Canadian Wheat Board to special accounts set up and administered by the Western Grains Research Foundation.

This program is not intended to duplicate or replace current check-off programs already in place in some provinces. Producers who choose not to participate may opt out if that is their preference. Any farmer wishing to opt out of the levy on an annual basis can do so by a simple notice in writing.

However early indications are that we can anticipate a participation rate in this check-off program in the order of 90 per cent. We have confidence in that participation rate because this program has been initiated by producers and producer organizations. It has had their keen support throughout its developmental stages to the point now where legislation is ready in the House of Commons.

Research and development spending cannot be simply turned on and turned off like a tap. Such an attitude toward research only results in inadequate and inconsistent support and missed opportunities. Inaction on the research front would negate the day to day efforts of hardworking farmers across the prairies and Canada would risk losing its competitive edge in wheat and barley markets. We absolutely cannot run the risk of our wheat and barley breeding programs falling behind those of our competitors. For years now our major competitors like Australia, the United States and the European Union have been taking a direct role in renewing public plant breeding programs in wheat and barley. Incidentally, much of their research has been implemented as a result of producer funded programs. A check-off or a producer levy in Canada is required to keep up with that international competition.

I am pleased to bring forward this producer initiative to increase funding for plant breeding research in Canada. The proposed wheat and barley check-off is a very good example of how producers and government can work constructively together to achieve something that will benefit the industry as whole and will translate into benefits for future Canadians.

I recommend that the House approve Bill C-50 amending the Canadian Wheat Board Act to allow voluntary levies to be deducted in support of this important research program. I am anxious to hear the comments and remarks of members of the House who I hope will indicate their support for this particular direction.

I would draw to the attention of the House, this being Tuesday morning, that I have a commitment in cabinet to which I must attend. I regret not being able to stay to listen to the remarks that will be offered by other members in the course of the debate.

I am very pleased that the secretary of state for agriculture and agri-food and my parliamentary secretary will both be here and listening to the remarks of hon. members. I suspect they will be participating in the debate. I very much look forward to the reaction of members to this important bill.

[Agriculture, September 26th, 1994]

Mr. Speaker, in response to a question in the House last week pertaining to marketing systems for Canadian wheat, I indicated that I would be providing a forum later on this fall at which the differing views on the subject can be expressed.

It is true to say that there are farmers in western Canada who hold profoundly different opinions on the question of the appropriate marketing system to have in place for their grain. I think it is appropriate that they should be provided with a forum within which the different sides of that particular debate can be aired so that when any future decisions are made they are based on facts and solid information and not merely on innuendo.

[Agriculture, September 26th, 1994]

Mr. Speaker, it would not be appropriate for any member of the House of Commons to comment on an RCMP investigation. The question should be directed to the Solicitor General or to the Minister of National Revenue.

On the policy issue that is involved there are obviously laws in place in Canada today dealing with the appropriate procedure by which grain may be exported. In a civilized and democratic society it is important that all of the laws be obeyed, not just those with which we may selectively agree or disagree.

[Montreal Economy, September 23rd, 1994]

Mr. Speaker, the infrastructure program commenced by the government in literally the first few hours after we took office last November has been a remarkable success story with the mayors, municipalities and provincial governments virtually everywhere across the country.

The minister responsible for infrastructure could add more detail. However, as far as I know without exception it has been heralded as a good and successful program. It is serving a very good purpose in establishing jobs for Canadians in the short term period while that program is in place over a span of about two years.

More important, that program will renew and refurbish the physical underpinning of infrastructure in every province and in most communities from coast to coast in the country, giving us a modern infrastructure base upon which to build economic development for the future.

The benefit of the program is being felt in the city of Montreal, just as it is in my home city of Regina and in all communities in between. That was the first major initiative of the government with respect to economic growth and job creation for the future.

As the hon. member will know, we have many other plans in the development process at the present time. I think he will find as those plans come to fruition that communities such as the city of Montreal and all others in Canada will be able to feel the positive impact.

[Social Program Reform, September 23rd, 1994]

Mr. Speaker, the government's entire objective is to create economic growth and with that new jobs for Canadians.

It bears noting that since last November we have been successful in assisting in the creation of 275,000 Canadian jobs, including 79,000 in the province of Quebec.

[Social Program Reform, September 23rd, 1994]

Mr. Speaker, as the Minister of Human Resources Development pointed out on many occasions in the House, the objective of the reform process upon which he has embarked is to transform the Canadian system into one that prepares Canadians for the changing requirements of the job market.

Rather than acting just as a net to catch people when they need special assistance, it is transformed into a system to help them reintegrate into the workforce and be fully prepared for the job opportunities that must exist in the future.

[Social Program Reform, September 23rd, 1994]

Mr. Speaker, I have a couple of points to make in response to the hon. member's question on behalf of my colleague, the Minister of Human Resources Development.

It needs to be pointed out, as the minister did yesterday in some remarks, that the report of the Canadian Council on Social Development covered a period of time that ended in 1991. Therefore some of its statistical information is more than three years old.

To be fully accurate any report on poverty must take into account the rapidly changing labour market, which I think is implied in the hon. member's question, and the need to direct young people into developing job sectors that have long term potential.

I am sure the hon. member will have noted, not only in our red book proposals from the election campaign of last year but also in the throne speech, in the budget and in all the activities of the Minister of Human Resources Development, that the entire focus was upon the growth of the Canadian economy and the creation of jobs for Canadians.

The statistics would show that in the first nine or ten months of our administration a very substantial beginning has been made. It is not nearly enough yet, but there has been very good progress at the beginning of the term of the government.

[Department Of Agriculture Act, September 23rd, 1994]

moved that Bill C-49, an act to amend the Department of Agriculture Act and to amend or repeal certain other acts, be read the second time and referred to a committee.

Mr. Speaker, I am pleased to rise today to begin the debate on Bill C-49, an act to amend the Department of Agriculture Act and to make related amendments to other acts.

In some ways this bill is a reflection of the kinds of changes the Canadian agriculture and agri-food industry has undergone in recent years and can anticipate in future years.

The amendments add the word "agri-food" to the department's name, reflecting a recognition that the department's mandate extends far beyond the farm gate. This change also reflects a recognition that what happens on the farm and beyond the farm gate are intimately linked together. The strength of primary agriculture depends to a great extent on the strength of all those downstream in the food chain who process and use agricultural products.

The bill also defines more precisely the department's responsibilities for research. The existing act only mentions research indirectly through a reference to experimental farm stations. This bill broadens the definition to cover research related to agriculture and products derived from agriculture, including the operation of experimental farm stations.

This clarification of the mandate of the department in no way takes away from this government's commitment to Canadian farmers as primary producers. In fact it strengthens it by ensuring that the importance of maintaining and nurturing the health and prosperity of the entire agriculture and agri-food industry is upheld.

Farmers are and will always be at the centre of the agriculture industry. As such the department will continue to devote a very large amount of its resources to farmers. In addition, there is a growing need to be aware of the products of Canadian agri-food processors. More and more we must be aware that market development is important not just for raw commodities but increasingly for value added products.

There are opportunities for the agriculture industry to provide ingredients for pharmaceuticals, cosmetics, paints and energy products, in addition to food products. More and more we must be assured that the systems are in place to produce those products and to ensure they reach their market destinations.

Before that process even begins we must ensure that the kinds of crops and livestock demanded by these markets are being produced and we must ensure that the research and technology are there to transform those crops and livestock into the processed products in demand worldwide. That is where the department's research function comes into play, both in developing the commodities that form the basis of the industry and in pioneering new uses for them.

The research branch of the department has been conducting research to the benefit of both the primary and secondary agriculture industries for many, many years and with great distinction. The changes in this bill merely reflect that ongoing work in the definition of the department's responsibilities for research.

It is fitting to be talking about the mandate of the Department of Agriculture and Agri-food at this time. As we approach the beginning of a new century it is time to take a look at where we would like Canada's agriculture and agri-food industry to be in the years 2000, 2005 and 2010.

This industry is a very important one to this nation. It represents 8 per cent of Canada's gross domestic product and accounts for 1.8 million Canadian jobs. That is 15 per cent of all of the employment in this country. Agricultural and agri-food exports equal more than $13 billion annually. In 1992 farm inputs valued at $10.5 billion translated into farm products worth $20 billion. That translated into a further $44 billion worth of processed food and beverage products.

The agriculture and agri-food sector enhances the quality of life in both rural and urban Canada. It ensures a safe, high quality food supply. Because of Canada's agriculture and agri-food sector, in comparison to the rest of the world Canadians spend the second lowest proportion of their disposable incomes on food.

It is important to ensure that the success of this industry so vital to all Canadians continues. Canada's agriculture and agri-food industry must be able to compete in a rapidly changing world. A common vision is needed, shared by government and industry, to take the agriculture and agri-food sector into the 21st century. In that way we will together be able to make the kinds of decisions necessary to secure our future.

The world in which Canada's agriculture and agri-food industry does business is not the same today as it was 25 years ago or 10 years ago or even 5 years ago. For example, in the grains and oilseeds sector alone markets for Canadian products have changed dramatically. It was not all that long ago that we depended upon traditional billion dollar bulk grain markets in places like the former Soviet Union and China.

Many of those markets have been replaced by more varied and somewhat smaller and more individual markets. Customers now more and more are buying to exacting specifications. Our U.S. market has grown to almost 60 per cent of agri-food exports so far this year.

By the year 2010 rural population is expected to increase by another two billion people. Over the next five years incomes in regions like Asia and the Pacific are expected to rise by 6 per cent to 12 per cent per year. Incomes are also expected to rise in areas such as Africa, Latin America and the Middle East.

With these increases in income and the changes in the quality of life that it brings, there will be a shift in global consumption patterns to more animal protein products and more highly processed food products than ever before. At the same time, key export markets such as the United States remain crucial to the continued growth and development of our industry here in Canada.

On the domestic side we are also confronted with changing marketplaces and fiscal constraints on federal and provincial budgets. Is the Canadian agriculture and agri-food sector ready to respond to changing demands internationally? Is it ready to respond to changing imperatives on the domestic front?

The industry is strong in a great many ways. The value of agricultural output continues to increase by about 2 per cent annually. Productivity growth rates are high by international standards. Many processing firms are shifting to focus more and more on world markets.

Canada's agriculture and agri-food industry has a solid basis in abundant natural resources and sound environmental practices, is productive in skilled human resources, has a well developed infrastructure and institutions and a reasonably stable operating environment. However, there are areas where we must do better.

Right now Canada has higher processing and marketing costs and less private sector research than many of our major competitors. Although Canada is exporting more of our higher valued agri-food products to the United States, our imports are growing faster than our exports and we are missing opportunities for marketing higher valued agri-food products. There is little growth in our exports of higher valued products to countries other than the United States, in particular to Asian markets where standards of living and demand are growing rapidly.

In 1993 our agricultural private sector, supported by federal and provincial ministers of agriculture, set a target for agriculture and agri-food exports of $20 billion by the year 2000. To achieve that goal, industry and federal and provincial governments will need to work harder to meet the challenges of the global marketplace.

Right now our growth rate in agri-food exports is not sufficient to meet that target of $20 billion by the year 2000. Change is needed if the Canadian agriculture and agri-food industry is to grow and prosper into the next century.

If we look at the grains and oilseeds sector as an example, it is clear that change is beginning to take place. Farmers are beginning to diversify out of traditional crops such as wheat and into more new crops such as mustard seed, canary seed, lentils and especially canola.

Acreage of specialty crops grew almost 130 per cent in the period from 1988 to 1994. At the same time acreage of wheat fell by about 15 per cent. With farmers beginning to diversify out of traditional crops, new demands and challenges are being placed on our grain handling and transportation system as these different crops are moved into export position.

In the last crop year, as we all know, we experienced some very serious problems with moving grains and oilseeds partly due to a rail car shortage and a number of other factors that conspired together at the same time. Those issues, as I have discussed in the House on other occasions, are being dealt with so that the kinds of problems experienced in the last crop year can be avoided to the largest extent humanly possible in the current crop year and into the future.

The whole experience with our grain handling and transportation system brings into focus the question of whether the system in Canada is sufficiently equipped to meet the demands of a rapidly changing international marketplace.

On another front we have to look at technology and we have to ensure that Canada is not being left behind. For example, non-food uses for grains, oilseeds and other agricultural products are expected to rise dramatically in the years immediately ahead. Forecasts in the United States and Europe predict that up to 50 per cent of raw agricultural materials will be used in the future for non-food industrial purposes.

Is Canada investing sufficiently in the kinds of research required to develop new products from our grains, our oilseeds and our other agricultural output?

There are many other issues on the agenda with respect to the renewal of our supply management systems, with respect to our red meat sector, with respect to horticulture issues and with respect to challenges affecting the broad spectrum of Canadian agriculture.

Clearly, as we face all the issues and challenges that provide us at the same time with enormous opportunity, we must develop a common vision to ensure the decisions taken today and the initiatives undertaken in the future are part of a comprehensive long term plan for a progressive, competitive and successful agriculture and agri-food sector.

I believe such a vision for the future must include at least five key elements. First it must be founded on economic reality. If the base is artificial then the plan will soon collapse.

The fundamental reality is the marketplace. We must produce what the world wants to buy. We must do it cost effectively. We must diversify. We must be good managers and world class marketers. We must build strategic alliances internally and internationally. We must ensure that the benefits flow fairly among all our regions and all the players in that complicated food chain.

Second, our vision must recognize that rural Canada is not a backwater. It can in fact be the location of wealth generation, economic growth and new jobs.

Diversification on and off the farm, value added processing, and niche marketing including exports, are all part of the equation for rural Canada, as are research and development and information technology to link the kitchen table in Sedley, Saskatchewan, to Toronto and Vancouver and indeed Osaka and Hong Kong.

A third requirement for our vision is financial security. I have not met a farmer yet who tells me that he or she wants subsidization. What they want is a decent marketplace with a decent return.

Well managed farms should expect a reasonable rate of return even though in some cases it may be supplemented by some amount of off farm income. The weather and other production and marketing risks will always necessitate a farm safety net program, but federal and provincial tax dollars are scarce and support in the form of safety nets must not distort production or marketing signals.

Fourth, we must achieve resource and environmental sustainability. We need a sensitive and sensible balance among social, economic and environmental considerations founded on enhancing our resource base, maintaining surrounding ecosystems, and developing, adapting and marketing new technologies to protect our environment. Our environmental stewardship could become a unique new Canadian export opportunity.

The fifth and final element in this vision that I would mention at the moment is the maintenance of a safe and secure food supply. That is really the foundation upon which everything else rests. Food safety has been and must continue to be a priority in and for Canada. Our reputation for safety and quality is vital to our domestic consumers and is a critical advantage in the international marketplace.

We must reduce our inspection costs while not impairing but rather enhancing our inspection system overall. That can be achieved by a national, non-duplicative system tuned to market requirements and international standards with alternative delivery options.

What I have mentioned in the last few moments is a framework in which I believe we can structure a sound and solid game plan for the Canadian agriculture and agri-food sector. It is not yet all inclusive and it is certainly not cast in stone, but I think it is a basis upon which to begin.

We cannot foretell the future. Neither can we forestall it. What we must do is define our best case scenario, where we really want to get to, and set out the steps needed to make that outcome most likely. I hope we can do it with the largest degree of consensus and teamwork.

I close by saying I am extremely confident about Canada's agri-food sector and I am very ambitious about its future. There are no guarantees but as Wayne Gretzky once said, you will miss 100 per cent of the shots you never take. We need to start shooting the puck at the net and we need to score. That is what this vision for the future of Canadian agriculture is intended to achieve.

With a strong market orientation and the careful use of scarce tax dollars, with diversification, innovation and value added, with thoughtful stewardship of our natural resources, with the enhancement of our human resources, with a sharp focus on rural Canada and local communities, with high international standards and a cohesive team Canada attitude we can meet the objectives outlined in our red book last year about growth, jobs and security. Agriculture and agri-food can play a very large role.