Mr. Speaker, on October 30, I asked the President of the Treasury Board the following question:
Farmers are increasingly concerned about the multiple impact cost recovery is having on their ability to survive and prosper.
What economic impact analysis has been and will be done to monitor these impacts and is the minister prepared to redress any serious negative impacts should they result?
The President of the Treasury Board responded by indicating that each department is responsible for the cost recovery programs it administers and responsible for any impact analysis undertaken. He also indicated that the analysis would be undertaken in response to specific concerns raised by stakeholders in the industry.
The role of Treasury Board seems to be to monitor and apparently report on the overall impact of cost recovery programs. My concern is that the cumulative impact of various cost recovery programs which involve more than one department but impact on the individual producer is not being adequately responded to.
For example, an individual producer may not have a direct problem with cost recovery programs of Agriculture Canada, but may have a problem arising out of the impact of cost recovery programs from Health Canada, Transport Canada, et cetera.
It appears to me that an individual who has a problem with the cumulative impact of cost recovery does not have any one place to bring these concerns forward for redress. I would point out that producers have to be assured that they will not be burdened with new costs that will affect their competitiveness, especially now that we are part of the new global environment.
The Canadian Federation of Agriculture has pointed out that the new Pest Management Review Agency will cost recover approximately 60 per cent of its costs while the counterpart agency in the United States has a cost recovery initiative of only 15 per cent. I understand the Minister of Health disputes some of those figures, is reviewing the matter and will come back to the issue.
In the Prince Edward Island Guardian on September 26 under the headline: ``Farmers fear fee hikes'', a very serious matter was raised by Ivan Noonan who is general manager of the P.E.I. Potato Board.
The article pointed out that fee schedules obtained by the Guardian show that the government expects the new fees to more than double the revenue it currently earns from a range of Agriculture Canada services, such as licensing and inspection. Ivan Noonan said: ``It is going to cause a lot more hardship for growers, that is certain. If growers cannot pick up the revenue through better prices or cutting costs per acre, then they will be out of business''.
We must assure producers that that cannot happen. Imagine the cost. Imagine the impact on the macro economy of Prince Edward Island if the multiple impact of cost recovery fees forced some producers out of business.
We cannot allow ourselves to be penny wise and pound foolish. My colleague, the member for Victoria-Haliburton, produced a letter at committee that was sent to him by the vice-president of Pickseed Canada.
In the letter the individual, Mr. Pick, said: "Agriculture and Agri-food Canada now has plans to increase our costs to export to certain countries by as much as four times in 1997. If full cost recovery is passed on, this could rise to as much as 10 times". He concludes by saying: "We simply cannot do business with these costs".
The government must be extremely careful not to allow cost recovery to push producers out of business.