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CAIS reversal irks provinces

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Published: April 13, 2006

Federal agriculture minister Chuck Strahl says he doubts the principles of the controversial CAIS program can form the basis of a new farm income stabilization program, even though provincial agriculture ministers think he recently promised just that.

In an April 10 interview, the new federal minister said he understands provincial ministers want the principles of the Canadian Agricultural Income Stabilization program to be incorporated in whatever program replaces it. They made that clear at a federal-provincial ministers’ meeting in Harrison Hot Springs, B.C., in March when the agreement was to “transform” CAIS rather than replace it.

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However, the Conservatives campaigned on a pledge to replace the program.

“My question always is, how far do you go in transforming before you create something totally new?” Strahl asked.

“I’m not so sure the core principles of CAIS can be salvaged. I just think farmers are very skeptical that our current framework is going to get the job done. I believe something new is what farmers are looking for.”

This dispute has led to Strahl’s first political dispute with the provinces.

Provincial agriculture ministers said last week they had left their meeting with Strahl convinced that the principles of CAIS must be retained, although improvements were needed.

They said they were shocked when they heard Strahl revert April 5 to the position that CAIS will be replaced no later than when the present federal-provincial agreements run out in two years.

Strahl told reporters that farmers should pressure their provincial governments to allow for a CAIS replacement sooner than 2008.

In Regina, minister Mark Wartman was scathing.

“We need to be able to count on when we leave a meeting, and we’ve got agreement, that that agreement is real,” he said. “That would give us confidence with our negotiating and our work with the federal government. To back out without any further consultation with us is inappropriate and not helpful in forwarding a national agenda.”

Ontario minister Leona Dombrowsky told an April 5 news conference she felt betrayed by Strahl’s comments.

“At the end of the meeting (in B.C.), the communiqué was very clear that there is agreement to transform CAIS and to retain its principles rather than to replace it,” she said. “I think the minister’s comments really are irresponsible. It sounds like a flip-flop to me.”

In Edmonton, Alberta minister Doug Horner on behalf of all provincial and territorial ministers issued a statement April 7 complaining that Strahl was acting unilaterally.

The provinces worried that Strahl’s promise to scrap CAIS will make bankers nervous about loaning money to farmers, even though Strahl has said the present program will remain in effect, with improvements if possible, until there is federal-provincial agreement to change it.

The issue of “transform” or “replace” will be central when ministers meet again in late June in Newfoundland.

Canadian Federation of Agriculture president Bob Friesen said both levels of government are delaying action by pointing fingers.

“It’s inappropriate for the agriculture ministers to use the current situation to start blaming each other when they really need to work as a team to help farmers,” he said, adding the provinces like the CAIS principles because they worry a new program might cost more.

Strahl said it is in part a matter of semantics.

Ottawa agreed with the provinces that changes have to be made in CAIS in the short term. But he noted that the federal-provincial communiqué also talked about “replacing the current integrated CAIS program with one that separates disaster relief from income stabilization.”

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