Mr. Speaker, first, I would like to inform you that I will share my time with the member for Charlesbourg—Haute-Saint-Charles.
To be able to truly have a thorough debate on Bill C-18 and the negative implications it will have on prairie farmers, we must first answer some initial questions to learn about the history of the institution at the heart of Bill C-18. Where did the Canadian Wheat Board come from? What was behind its creation? What role did it play in the past in the lives of farmers? What role does it play today in the economy and lives of prairie farmers?
The Canadian Wheat Board, whose future is at stake in Bill C-18, is an organization that markets wheat, durum and barley for prairie farmers. Recognized as the largest and most successful grain marketing organization in the world, the Canadian Wheat Board, which is what Bill C-18 is all about, was created in the 1920s, when farmers in western Canada started to join together to get the best price on the wheat market.
It reminds us of the farmers' fight to protect their interests against powerful foreign companies that tried to crush and destroy them. In 1943, continuing that fight, farmers in western Canada opened a single desk that allowed them to sell their wheat through the board. The pooled sales that began through this single desk gave farmers a powerful voice in grain handling and transportation as well as international trade policy.
The board ensures that farmers get the highest overall returns as they have an effective monopoly on wheat sales since there are no competing sellers of western Canadian wheat. The single desk structure provided financial stability, prudent risk management and certainty of grain supply. In other words, the single desk contributed to progressive marketing of wheat in the interests of farmers, not of large American or other foreign companies.
The single desk continues to play the same role today, as the board is controlled, directed and funded by farmers. It is not a burden on the state and it is not government-funded. It was in this spirit that the act to create the Canadian Wheat Board gave the board the mandate to generate the best possible returns for farmers by taking advantage of the powers given to this single desk.
This organization continues to play an important role for farmers as well as for the economy in the Prairies. It sells grain all around the world and arranges for its transportation from thousands of farms to customers in 70 countries. About 21 million tonnes of wheat and barley are marketed by the Canadian Wheat Board each year. Given that 80% of the wheat grown in western Canada each year is exported overseas, it is easy to understand the major role that the Canadian Wheat Board plays. Yet the Conservatives want to dismantle it to benefit private companies that are more concerned about profit than about farmers, who create jobs for a large number of Canadians. Acting as a marketing agent for farmers, the Canadian Wheat Board negotiates international sales and passes the returns back to farmers, who spend them in Canada.
Clearly, the Canadian Wheat Board has real, tangible benefits for the economy of the Prairies. The Conservatives are attacking those benefits with Bill C-18. I find this completely unbelievable. What is the purpose of Bill C-18, which the Conservatives have brought before this Parliament? Bill C-18 proposes dismantling the Canadian Wheat Board; putting an end to the single-desk marketing of wheat and barley; replacing the board with an interim structure with voluntary membership; and privatizing it or dissolving it completely if, in the coming years, it is not profitable for any private firms.
Bill C-18 is a reflection of the neo-liberalism that underlies economic policy. Dismantling the Canadian Wheat Board would have a devastating effect on prairie farmers.
At a time when the Canadian economy needs measures to get unemployed Canadians back to work, the idea of doing away with the Canadian Wheat Board seems ridiculous and irresponsible.
That is why when prairie farmers—who would be the most affected—were called upon to vote on this government initiative on September 12, 2011, they rejected the idea, even though the government likes to tell anyone who will listen that dismantling the Canadian Wheat Board would be good for farmers. A majority of farmers voted in favour of maintaining the Canadian Wheat Board. Of a total of 38,261 farmers who voted, 62% voted to maintain a single desk for the marketing of wheat and 51% voted for the same for barley. Acting against the will of the majority is undemocratic and we will not accept it.
The NDP believes that in the current sluggish economic context, the dismantling of the Canadian Wheat Board would have an incalculable impact on the lives of farmers as well as on the economy of the Prairies, given the role that the Canadian Wheat Board has played and continues to play. Passed without any clear analysis of the repercussions it could have on farmers in western Canada, the measure to dismantle the Canadian Wheat Board will be ruinous for them. The bill serves the interests of major American grain companies by allowing them to lower the market price for wheat and undermine the security of our own farmers.
If the Canadian Wheat Board is dismantled, Prairie farmers will sell as individuals, which could result in some farmers losing their farms to huge foreign companies.
Western Canadian farmers might experience the same fate their Australian counterparts did when they lost their single desk. Right now, the price of Australian wheat, which once commanded $99 a tonne over American wheat, has dropped, in just three years, to $27 a tonne below U.S. wheat. As a result, 40,000 Australian farmers who were running their own grain marketing system became customers of one of the largest agribusiness corporations, which is privately owned and based in the United States. Since 2006, Australia's national wheat sales have dropped from 100% to 23%. Meanwhile, 25 other corporations are competing to see how to make a profit on the discrepancy between buying and selling prices.
Let us make responsible decisions. Let us avoid putting our western Canadian farmers in a situation similar to that of their Australian counterparts.
I would like to remind the House that the Canadian Wheat Board sells Canadian farmers' grain products in 70 countries. All the profits from these sales—between $4 billion and $7 billion per year—go to the farmers. In 2009-10, the Wheat Board's revenue was estimated at approximately $5.2 billion and its administrative costs were approximately $75 million.
This is revenue that we will lose if we dismantle the Canadian Wheat Board. By reducing the benefits that farmers receive from the Wheat Board by virtue of the fact that it is the sole seller of western Canadian wheat and barley, the Wheat Board's demise will no doubt affect the Port of Churchill and the farmers who deliver grain through the port, because the Wheat Board is the primary user of this port. Generally speaking, Wheat Board shipments account for 95% of the cargo that goes through the port. In a free market, private grain companies will have no incentive to use the Port of Churchill, since they have port facilities on the west coast, in Thunder Bay and along the St. Lawrence.
The demise of the Wheat Board will also affect producer car shippers and short-line railways in that farmers who load their own cars will save from $1,000 to $1,500 in preparation and cleaning fees per car that is shipped.
The demise of the Wheat Board will also have financial repercussions on Winnipeg and Manitoba. In fact, studies have shown that the Wheat Board contributes $94.6 million to Winnipeg's gross output.
In conclusion, dismantling such an institution in the name of blind neo-liberalism means sacrificing prairie Canadians to benefit foreign grain companies. We cannot support such a bill, which would mean supporting government control over the Canadian Wheat Board.