Mr. Speaker, I am tempted to say “here we go again”. The House is once more dealing with legislation to patch up the grain handling and transportation system in western Canada. Just about a year ago, we were doing exactly the same thing.
Back then, it was called Bill C-52 and it was legislation to create service level agreements between shippers and railways. Just about everybody told the government at the time that Bill C-52, as originally presented, would not work, but the Conservatives refused to listen to any of that advice. They refused each and every amendment. They voted them down. They basically told farmers and others to get stuffed. They put on the whips and they voted against every single idea that was presented to the standing committee to try to make Bill C-52 useful. They forced it through with absolutely no change.
Sure enough, as everybody predicted at the time, it failed. Not a single service level agreement was ever completed under the useless Bill C-52.
That is one of the reasons the grain industry is now in such chaos. Grain shipments are months and months and millions of tonnes behind. Piles of crops are stranded on farms across the prairies. Some are now spoiling. Feed users and domestic processors cannot get the supplies they need. Terminals are half empty. Ships are waiting. Demurrage charges are horrendous.
Many sales have been lost outright; others have been deferred, and the prairie price is now down by 35% or 40% compared to where it was last year. Good customers like the Japanese are simply going elsewhere to buy the grain that they would normally come to Canada to get. World grain conferences are talking incessantly about the “unreliable” Canadian grain system. Some farmers have not had any income since last year. They are rolling last year's debt into next year's debt.
When all that is added together, and by the government's own calculations as specified in its March 7 order in council, the impact of this disaster is now in the range of some $8 billion in costs and losses. That is $8 billion scooped out of the prairie farm economy, most of it taken directly from the pockets of farmers.
The problem has been dragging on for very nearly six months now, and the best the government can forecast is that it will take another six long and painful months to clear the backlog that now exists.
Grain companies are going to have a banner year. The deductions that they are taking off farmers' cheques have never been higher. Railways are going to have a banner year. In fact, they have gone to New York and boasted to their shareholders that this year's grain problem is just a “modest” little thing. They tell their shareholders not to worry, because grain shippers are captive shippers anyway, and there is no other way to move the product. There are no serious financial penalties for not moving it, so eventually the railways will get paid in full.
The only ones here who are out of pocket for that $8 billion are the farmers. Crisis legislation is obviously necessary. Indeed, it is long overdue.
How did this mess arise? Everyone blames everyone else. They blame the weather and the big crop that came from the bumper harvest last year. It is always somebody else's fault. No one is responsible and no one is accountable for the failure and the damages.
However, let us think of the painfully damaging message this sends to prairie farmers. Of all of the participants in the grain system, the farmers are the ones who did their jobs very well last year. They produced maybe the best crop in history. Now the system is telling them not to dare do that again, because the rest of the system cannot handle anything more than just an average crop. Neither do we have the will to give grain any sense of priority, so the farmers are being told to just be content with mediocrity.
That is what the system is saying to farmers through the massive failure this past year.
That is simply not good enough.
The system failed farmers this past year. It failed badly. There is responsibility all around: for the railways, for the grain companies, and maybe even a bit for the cold winter. But if the system failed, then this is the question that must be asked: who designed the system? Who put it in place? Who set it up for failure? Who has imposed $8 billion in costs and losses on prairie farmers?
The unequivocal answer to that question is this: the current Government of Canada. This disastrous system, the one that has failed so badly, is the one that was designed and implemented over the past three years by the current government. That is where the buck has to stop.
So, we are faced will Bill C-30.
I think one thing in the bill that almost everyone, except the railways, would applaud is the change with respect to inter-switching. That would, possibly, simulate competition at a great many more delivery points across the Prairies. That would be a good thing. I note that some of the farm organizations are welcoming this move. They are also describing it as a modest improvement. However, it is an improvement and we all hope that it will work.
The legislation would also re-legislate the order in council from March 7, the one that ordered the railways to move a certain volume of grain in a certain timeframe. Significantly, however, the legislation would not improve upon the order of March 7. The railways would not be asked to do significantly better than they would otherwise have done anyway, with the onset of spring.
The question is, why not? That is the question being asked so eloquently by the minister of agriculture in the Province of Saskatchewan. He is a very practical, businesslike, down-to-earth minister. He is a no-nonsense kind of guy. He would not propose a volume or a penalty system that was outlandish, outrageous, or impossible to achieve.
The Province of Saskatchewan, through the minister, has asked for about an 18% increase in the volumes to be shipped, and for penalties to be at the rate of $250,000 a day instead of $100,000 a day. He has looked at it, he has examined it carefully as someone who knows the system, and he is saying, “Why not?” That would help, too, if the government could have a positive answer for Minister Stewart.
The rest of Bill C-30 would largely enable legislation to authorize the creation of future regulations. There would be no immediate action. It would simply be a matter of future hypotheticals if regulations were ultimately to be forthcoming.
We ask the question: why are there no legislative guarantees for farmers? A regulation could be changed by the stroke of a pen in the middle of the night. Right now, no one knows what those regulations might say. It would be very helpful if the government would table the draft regulations before the standing committee so it would know what those regulations would likely do when they finally come in.
For example, would there be comprehensive monitoring from one end of the system to the other to measure, analyze, and report publicly on grain marketing transportation and handling and the outcomes the system is actually generating?
Would there be complete transparency?
Would there be regulation on the basis calculations and the deductions that come off farmers' grain cheques and go into the pockets of grain companies? That basis spread, today, has never been wider in Canadian history, meaning that the grain companies are getting a lot of money and the farmers are getting less.
Would there be any sensible busines-like coordination of grain handling and transportation logistics to replace the absolutely chaotic free-for-all that exists today? No one is out there directing traffic, so we have a snarled mess.
What about short lines? What about producer cars? These were the issues raised by the Parliamentary Secretary to the Minister of Foreign Affairs.
What about servicing domestic customers, like the feed grain users in the Fraser Valley and the cereal manufacturers in eastern Canada?
Would there be a full costing review to track all revenues and costs to follow the money in the grain system to see how the efficiency gains have been shared or not shared over the past 22 years when then there was the last costing review?
Would there be any new capacity or surge capacity in those service level agreements? Would there be any precise definition about what service the railways must provide? How would performance be measured, and would farmers get liquidated damages when the system fails? Penalties paid to the government do not help farmers. The damages need to be paid to the farmers who have incurred the losses.
Why has all of this been left out of Bill C-30? It has been left to be done by regulation, maybe sometime. Why were these specific amendments voted down when they were last considered by the government a year ago in the context of Bill C-52? When will farmers get to see any of those proposed draft regulations? I think it would be very wise for the government to make sure that farmers and all of us have a chance to review those regulations before the standing committee is called upon to vote on Bill C-30.
Finally, will the government accept common sense amendments to try to fix the mess in grain handling and transportation, in the interests of farmers who, I repeat, are the ones and the only ones who are picking up the tab for all of this disaster?
Concerns about the inadequacy of Bill C-30 have obviously been expressed by many members of Parliament on all three sides of the House, and concern is coming from others as well: I mentioned the Minister of Agriculture in the Province of Saskatchewan; the Saskatchewan Association of Rural Municipalities has expressed concern; the Saskatchewan Canola Growers Association; and of course, the parliamentary secretary.
As the bill goes speedily through second reading today, which I think it should, and into the Standing Committee on Agriculture and Agri-Food for detailed consideration, the government needs to ensure that all of those who have these concerns, all of those who are going to be vitally affected for better or for worse by the outcome of Bill C-30, have the opportunity to be heard.
There are only about four meetings of the committee normally scheduled between now and when the House would adjourn at Easter. This matter has to be resolved before the Easter break. It would be very important for us to hear from all parties today, saying explicitly that, whatever extra hours or extra meetings of the agriculture committee may be required to make sure all the witnesses are heard, those meetings and hours will be added to the committee's agenda, so we can have a full ventilation of this subject. No one will feel they have been shut down or cut off, and we can all be assured that, when the final decisions are taken, the full information was before the committee and the decision is taken with full knowledge of what the circumstances are.
On behalf of the Liberal Party, I can say we are more than happy to have as many meetings as it takes to make sure everyone is heard. I think that is what I heard from the deputy agriculture critic for the NDP, and I hope the government would give us that assurance before the end of the afternoon, so we can all make sure that the agriculture committee does its job properly.
