The Conservative Canadian Wheat Board legislation introduced to Parliament March 3 went further than the promise to remove malting and export barley from the CWB monopoly.
It caught critics by surprise by proposing to add a dispute resolution section to the Canadian Wheat Board Act that would allow grain companies or producers to demand arbitration if they object to board activities “respecting any commercial transaction or proposed commercial transaction relating to grain.”
The board could not “unreasonably” refuse arbitration and within 10 days of consent to arbitration, an arbitrator would be selected. The board would pay part of the costs.
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The background explanation for the legislation offered by the government was vague about what type of commercial arrangements would be subject to arbitration requests and agriculture minister Gerry Ritz’s office did not respond to a request for clarification before deadline March 3.
Liberal agriculture critic Wayne Easter noted that it specified complaints about grain and not just barley.
He speculated that this could be the way the Conservatives will allow the wheat board to be undermined by an avalanche of complaints about monopoly powers and pricing on both wheat and barley by companies or hundreds of individual producers demanding arbitration.
The government’s explanation gave little detail.
“Farmers and grain elevator companies have alleged that the CWB sometimes uses its bargaining position to demand unreasonable terms and conditions in its commercial arrangements with other parties,” it said. “Requirements for commercial dispute resolution between the CWB and other parties would give farmers and grain elevator companies an opportunity to voice their concerns before an impartial arbitrator or panel of arbitrators.”
It referred to “certain commercial transactions” without defining them.
The process would require the CWB to respond within five business days to a request for arbitration. An arbitrator would be chosen within 10 days. Any judgment would be binding.
