Mr. Speaker, I am very happy to speak in the House today as part of a debate that, in my opinion, is critical to the future of western Canadian farmers.
The legislation that we are discussing today has been a long time coming. It gives western Canadian durum and barley farmers a right they have called for and richly deserve, and that is the right to choose how best to market the grain they grow.
As the House reviews this legislation, it is important to keep in mind why Canada has a reputation for the quality of our wheat, durum and barley. The answer is quite straightforward and it has nothing to do with the Canadian Wheat Board. Our grains are second to none because the farmers who produce them are committed to quality.
Organizations like the Canadian International Grains Institute and the Canadian Grain Commission play a big role in ensuring the quality of our world class grain handling system. CIGI and the CGC have always operated independently from the CWB and will continue to do so.
We encourage the Canadian Wheat Board to work with us in order to ensure a smooth transition toward marketing freedom in the best interest of the industry. We hope that the Wheat Board will continue to work with the many other stakeholders, such as brokers, buyers, sellers, inland terminals, export elevators, and the ports, not to mention the very large marketing network.
However, regardless of whether the Canadian Wheat Board participates, as we move toward marketing freedom, our government will continue to make every effort to ensure that everything is clear and certain for farmers and for the entire value chain during the transition period.
Our government is aware that the town of Churchill, which depends on the Canadian Wheat Board's grain shipments, may be affected by the industry's transition to an open market.
Our government understands the importance of the port of Churchill as a valuable asset, and has demonstrated its support and commitment to the north.
As part of the ongoing commitment to farmers and the importance of the port as the Prairies-Arctic gateway to the world, our government will provide an economic incentive of up to $5 million per year over the five year transition period to support shipments of grain, including oilseeds, pulses and special crops through the port.
The government will also provide support through funding of up to $4.1 million over three years to sustain infrastructure improvements and maintenance of the port during the transition period.
In addition, the deadline will be extended to 2015 for projects to be funded through an agreement with the Churchill Gateway Development Corporation. We are looking at a number of initiatives to continue to diversify the economy of Churchill.
We are also working with stakeholders across the agriculture industry, as well as other industries, to explore development opportunities for the port. We recognize that this major change brings with it not only many benefits, but also some challenges, and we do not shy away from these challenges. We share Canadians' concerns about job loss, the port of Churchill, and our short line railways and producer cars.
Mike Ogborn, managing director of OmniTRAX, the company which owns the Churchill port facility and the Hudson Bay Railway Company, told The Western Producer on July 14 that OmniTRAX is optimistic about the future of Churchill's port and railway. OmniTRAX understands how the change to an open market may be a challenge. But more significantly, the company sees it as an opportunity for economic diversity and for growth.
Our government is confident that Canadian grain companies will continue to use the port as long as it remains a competitive method of transporting their grain. Our government is also committed to improving rail service for agriculture shippers through the rail service review.
Further, the right to producer cars is protected in the Canada Grain Act. Currently, the CWB manages the marketing of grain shipped in producer cars, so that shipments are related to a sale.
Under the new rules, producers and short lines will be able to make commercial arrangements with grain companies or the voluntary CWB to market their grain. Short line railways are expecting some adjustments as they will have more options of marketing partners for the grain volumes they can attract from producers.
While we see some job losses for Manitoba initially, the future looks very bright. We can expect more processors to start up new businesses in that province, which is my home province, and across western Canada.
Milling firms will be able to purchase directly from the farmer of their choice, at whatever price they negotiate. Entrepreneurs will have the option of starting up their own small specialty flour mills and pasta plants. Just over the border from Manitoba in North Dakota many new pasta plants have sprung up and created jobs that should have been created in the Prairies. This, along with increased trade, has the potential to create many jobs.
Our government is confident that farmers will make marketing choices based on what is best for their own businesses. We want to put the farmers back in the driver's seat so that they can continue to drive our economy. We think an open, competitive grain market has room for a viable, voluntary pooling option. We are ready to work with the Canadian Wheat Board to chart the way forward.
Marketing freedom was a cornerstone of our election platform from day one and was included in last spring's Speech from the Throne. Grain farmers in western Canada want the same marketing freedom and the same opportunities as other farmers in Canada and the rest of the world. With this freedom, grain farmers will be able to sell their products based on what is best for their own businesses.
I am proud that we are keeping our long-standing promise to give western Canadian grain farmers the freedom to market their own grain.
I urge hon. members to give this bill some serious thought and to keep in mind that its timely enactment will help give farmers the certainty they need to plan for next year. What is more, it will give our clients here in Canada and in the rest of world the assurance that they can still count on the regular supply of high-quality Canadian wheat and barley.
I welcome any questions from my colleagues.