Provincial leaders discussed ways to spend the federal budget surplus last week at the annual premiers meeting in Quebec City.
Funding for struggling agriculture economies figured high on the list of secondary economic priorities, while provincial premiers agreed that “substantial tax cuts” would be their first order for Ottawa.
The federal government will record a $7 to $10 billion surplus this year and provincial leaders changed tactics from last year when they emerged from their annual conference with a single request, money for health care.
This summer, while Ontario and Alberta pursued a tax cut approach to Ottawa, other provinces said that was not enough to bolster economies. A 13-item shopping list was developed despite protests from federal finance minister Paul Martin that a list of demands was not the way to approach the federal government.
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“The premiers and territorial leaders all agreed that the agricultural crisis is a national concern and needs immediate attention,” said Saskatchewan premier Roy Romanow, after the conference.
He said all premiers know the effects of the farm crisis on their provincial economies, and Manitoba and Saskatchewan are not alone in calling for assistance.
Romanow said the meeting was an opportunity to educate other premiers about the difficulties created for farmers by federal policies on international trade and agriculture.
“This problem has been caused by a convergence of low commodity prices, natural disasters, international subsidies and rising input costs,” said Romanow.
“It is a complicated problem and has created a serious situation that must be addressed immediately.”
The communiquŽ from provincial to federal governments included a call for a strong trade position against European and American agriculture subsidies at this fall’s World Trade Organization talks. Failing an agreement there, the premiers asked that Ottawa establish a “comprehensive national policy to address this inequity.”
The request also said prairie producers affected by unprecedented high rainfall should be provided “targeted disaster relief.”
An “integrated and comprehensive” solution to grain handling and transportation reform was called for. That includes freight rate regulation until competition can replace it and using commercial tendering where it benefits farmers.
Request considered
In an interview Friday, federal agriculture minister Lyle Vanclief said Ottawa will review the requests but there are many other demands for federal funding.
He said part of last year’s surplus was used to create the Agricultural Income Disaster Assistance program and he expects it will receive more attention by the federal government this year.
Saskatchewan Wheat Pool president Leroy Larsen said the effort by the premiers to recognize agriculture is appreciated but lobbying by farm groups will have to continue in full force.
“We expect it will take a bit more effort for lobby groups, including ourselves, before Ottawa fully recognizes the problems being faced by our producers,” said Larsen.
Canadian Federation of Agriculture president Bob Friesen agreed. He said the call by the premiers is a good first step, but a “comprehensive, national agriculture policy” is necessary and the federal government must establish one “before things get any worse on the farm.”
