Agriculture minister Gerry Ritz had the first word as he opened debate Oct. 19 on government legislation that will abolish the 68-year-old Canadian Wheat Board monopoly Aug. 1, 2012.
It was low-key.
“I welcome this opportunity on behalf of western Canadian farmers to open debate on the bill … that would give them marketing freedom very similar to what farmers have been enjoying in Ontario already for some years,” Ritz said.
After questions for Ritz from opposition MPs, Winnipeg New Democrat Pat Martin had the second word. His downtown riding houses the CWB head office and he was less low-key.
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“The bill is a mistake in the making,” he said. “We are watching a terrible economic mistake unfold before our very eyes. I must admit there is a feeling of helplessness on this side.”
So began what will be a short debate on the historic legislation. After just two opposition MPs spoke, the government said it would cut short debate after two more days, ending it Oct. 24, forcing a vote in a Conservative majority Parliament and sending it to a special parliamentary committee for fast consideration.
Ritz has vowed to get it through all parliamentary stages and into law by mid-December.
The most unexpected clause in the legislation is the one that eliminates the positions of the 10 elected CWB directors when it takes effect, possibly before the end of the year. Instead, the interim CWB will be run by five government appointees including president Ian White.
Bill C-18, An Act to Re-organize the Canadian Wheat Board, sets out a series of steps that will end the wheat and barley monopoly Aug. 1, 2012, abolish the CWB Act that day, provide financial support for the interim voluntary CWB through federal back-stopping of initial payments and board borrowings and create voluntary research checkoffs at point of sale.
Business plan approval required
Board directors will have to create a business plan by 2016 or sooner on how the CWB can morph into a voluntary private grain company without government support.
Government officials last week did not rule out a business plan that includes a proposal to sell the board business to an existing domestic or international grain company.
The CWB will be dissolved by 2017 if the minister of the day does not approve the plan.
Ritz also promised that Ottawa will cover most or all “transition” costs such as penalties for cancelled contracts or employee severance so producer pools are not affected.
Government officials and Ritz said Ottawa believes CWB estimates of closedown costs of up to $500 million can be reduced.
Although it is not in the legislation, the government also promised that it will spend almost $30 million during the next five years to help the Port of Churchill upgrade and continue to be an agricultural commodity export port during the transition.
The government acknowledged that the northern Manitoba port will be affected because the existing CWB has accounted for up to 90 percent of its traffic.
The bill says that the voluntary board will be able to acquire property such as elevator and storage facilities during the transition period, but only if the agriculture minister approves. The board is not being offered guaranteed access to facilities owned by future competitors.
The legislation says other than the president, directors appointed by the government will be part time and for a four-year term and a maximum of 12 years.
The voluntary board would be able to handle all grain and special crops rather than just the wheat and barley for export and domestic human consumption thatis in its current mandate.
