The Manitoba government is raising millions of dollars for increased cattle slaughter in the province.
But it isn’t all taxpayer money. Half of it will come from a $2 per head levy charged on every bovine sold at auction in Manitoba, something that has ticked off a lot of producers who will have to pay it, says the president of the Manitoba Cattle Producers Association.
“They’re kind of off-side on it,” said Ken Crockatt about the new $2 per head levy that will be applied to all cattle auction sales.
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“They think it’s another expense to them. They’re calling it a backdoor tax.”
Don Masson, owner of the Ste. Rose Auction Mart, said cattle producers want to raise money for a new slaughter plant in Dauphin, but can’t afford another charge on their already thin margins.
“She’s going to have a hell of a lot of people mad at her, and they’re going to be upset,” said Masson about agriculture minister Rosann Wowchuk.
“She’s forcing it down our throats, whether we like it or not.”
The $2 per head levy will be matched by the provincial government for the next three years, at which point it will be reviewed.
The province has created a Manitoba Cattle Enhancement Council to manage the money raised and has already forwarded it the first $1 million in matching funds and a $10 million advance for start-up funds.
“Producers have told us they don’t want government to own slaughter facilities, but they do want us to be at the table as partners in expanding the province’s slaughter capacity,” said Wowchuk.
“This partnership approach will facilitate producer participation in the industry and will give projects the financing help they need.”
Fund raising has been under way to build a slaughter plant in Dauphin, but so far it has fallen short of the money it needs to be launched.
Crockatt said the MCPA did not directly oppose Wowchuk’s plan, but suggested there were better ways of boosting slaughter capacity in Manitoba. The group suggested providing tax incentives for any new slaughter capacity projects and weakening the environmental regulations that often slow down slaughter plant construction.
Crockatt said the MCPA also suggested Wowchuk hold a vote by cattle producers on the auction sale levy, but she did not agree to that.
The MCPA did not condemn the levy decision outright because that was Wowchuk’s area of responsibility, not the association’s, said Crockatt.
“We couldn’t take a stand on it because it’s her doing, not ours,” said Crockatt.
