Alberta’s new brand inspection agency may have to borrow money to start doing business Nov. 1.
The privatized agency needs about $1.3 million to pay for office staff, brand inspectors and equipment. It also needs cash for operating capital until accounts like brand inspection fees are paid. The government will provide some start-up funds but the rest will have to be borrowed.
“It was a possibility we had considered but it wasn’t our first choice,” said interim chair Dale Wilson.
Initiated by the province’s beef cattle groups, the Livestock Inspection Agency was supposed to start operating this summer. That was delayed until Nov. 1 as the government makes the necessary regulatory changes.
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There is also a dispute over $8 million collected over the last five years from people who bought lifetime brand registrations at $220 per brand.
“It was some money we were hoping to get started,” said Wilson.
The money went into pro-vincial government coffers. Agriculture minister Ed Stelmach told cattle producers at the recent ACC semi-annual meeting that the money is not coming back because it has already been spent.
“The $8 million went into general revenue,” said Stelmach.
Agency general manager Ken Weir said the $8 million question is still under negotiation with the government. The amount of money available to the agency determines the kinds of programs it can offer.
Weir wants the agency to take a strong lead in the way the cattle industry treats health, food safety and environmental issues in terms of traceback and animal identification.
The Western Stock Growers Association argues the government should provide the $8 million so the agency does not have to borrow.
The board of directors represents the Alberta Cattle Commission, Alberta Cattle Feeders’ Association, Alberta Livestock Dealers Association and Western Stock Growers Association.
