The Canadian Grain Commission has decided to end inspection services at prairie primary elevators this summer, close three prairie service centres and reduce staff.
In a letter circulated to the industry last week, CGC chief commissioner Elwin Hermanson said the commission has decided to focus more resources on its core mandate.
“The transition away from on-site inspection services means that the CGC will no longer provide official grading and weighing on grain shipments from the Prairies to terminal facilities nor for export shipments to the United States or domestic mills,” he wrote.
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“The decision to transition away from on-site service delivery will result in a more effective allocation of resources where CGC services are currently mandated.”
The result will be closure of service centres in Brandon, Melville, Sask. and Moose Jaw, Sask., and a beefing up of centres in Calgary, Saskatoon, Weyburn and Winnipeg.
Hermanson said the service reductions and reallocations “will not adversely impact the grain quality assurance system.”
Producers will still be able to send samples for evaluation. Grain companies will be able to hire private companies for on-site testing if they want.
Remi Gosselin, a commission communications official, said the decision was taken because of a Conservative government directive that priority be placed on services that the CGC must provide under legislation rather than on optional services such as testing at primary elevators. He said the changes had nothing to do with proposals in new Canada Grain Act legislation tabled in the last Parliament and reintroduced Feb. 23.
“This is not connected at all to proposed changes to the legislation,” he said.
“It’s basically from the direction the government has given to the grain commission. We have to put the focus on mandatory services.”
He said the reduction in prairie service will inevitably result in job losses, although he would not estimate how many.
“We want to talk to our employees before talking publicly about a specific number in employment impact.”
The CGC and the Public Service Alliance of Canada (PSAC) already are at loggerheads over a projected 200 job losses that would result from proposed amendments to the Canada Grain Act.
Meanwhile, the Conservative government didn’t impress the opposition when it reintroduced its Grain Act amendments.
Liberals, New Democrats and the workers’ union vigorously opposed the previous legislation, and Liberal critic Wayne Easter said the opposition will continue with the new legislation that is the same as the old.
Agriculture minister Gerry Ritz said in a statement the amendments will reduce costs and make the system more efficient.
They would end mandatory inward inspection and weighing of grain moving from a primary elevator to a terminal elevator and end the need for a buyer to be bonded to protect producers delivering grain.
“They will contribute to building a lower-cost, more effective and innovative grain sector,” he said.
Easter countered that the amendments would continue deregulation of the sector, undermine farmer protection and put the grain export business at risk.
“I am shocked they came back with exactly the same amendments and we will fight them,” said Easter. “From my own conversations, I know that there even are concerns about the wording of this among the Conservative caucus members. They had months to make this better and they didn’t. It will be a huge battle.”
Grain Growers of Canada executive director Richard Phillips said his group has concerns about farmers being less protected when delivering grain to unbounded buyers.
“But I recognize the bonding is a cost in the system and I am hoping both government and opposition MPs work together to see if there is an alternative to the producer payment security program that would work,” he said.
