Federal agriculture minister Bob Speller has asked the Competition Bureau to investigate the performance of the packing industry during the BSE crisis, but he insists he is not taking sides.
An acrimonious debate has developed over whether the pain of the BSE-related price collapse has been equally shared throughout the beef and food industry.
Critics insist cattle producers have borne the pain while packers have been profiting.
Speller told the Senate agriculture committee March 11 it is important that those issues be investigated.
But it is not his role.
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“My role now, and where I see it, is not to separate these groups, the farmers, the processors, the retailers, on this issue,” he said. “My role is to try to work in a co-ordinated fashion with them to get that border open and I will do that. What I am trying to do is draw them together, not separate them or to get into the battles that might be there.”
Saskatchewan senator Herb Sparrow said there has been too much emphasis on finding culprits. He said if consumers believe undue profits are being made, they might reduce their support of the beef industry.
“I am somewhat concerned that the nation is trying to find culprits in the industry,” said Sparrow, the longest-serving senator. “I do not believe that the people of Canada, consumers, are being robbed. I’m afraid that we are looking for culprits and that will discourage the consumers. They will say they are being robbed and will not buy beef anymore.”
Nova Scotia Liberal senator Terry Mercer took a more skeptical view.
He said there are “large discrepancies” between prices paid to farmers for their animals and prices paid by consumers. Customers are happy to support farmers but “there is not a lot of empathy for the other people in the middle, the retailers or the packers.
“My question to you really is, with all those statistics in mind, can you give us some insight into what you are doing?” Mercer asked Speller. “Can you provide the committee with exactly where the money went and to whom, or do we have to wait for the report you have asked for from the Competition Bureau?”
Speller said lots of other groups, including the House of Commons agriculture committee, are trying to trace the money.
“For my part, I believe it is important to spend all my efforts to get these groups working together towards getting that border open,” replied the agriculture minister.
“Through the standing committee, I think you will get most of the answers you want.”
