SASKATOON – Ten minutes into a day-long parliamentary hearing on ways to reduce the deficit and improve Canada’s economy, the word agriculture had been mentioned for the last time.
National Farmers Union executive secretary Stuart Thiesson was the first in a long line of presenters to speak to the House of Commons standing committee on finance during its stop in Saskatchewan.
As expected, Thiesson talked about agriculture’s contribution to the national and regional economy and warned against major cuts in programs like the Crow Benefit, farm safety nets and agricultural research.
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And that was the end of any discussion of agriculture spending.
No other farm groups were on hand to make a presentation, none of the presenters that followed raised the subject and none of the MPs on the committee had any questions for Thiesson. It wasn’t a surprise to the veteran NFUer.
Agriculture in the shadows
“I think it shows that agriculture is just a residual interest in government,” he said in an interview. “I don’t think that they really are that concerned about agriculture as a source of turning around the economy.”
In his presentation, Thiesson said that while cutting the deficit is a worthy objective, the federal government is showing a “slash and burn” attitude that may do more harm than good not only to agriculture, but to the economy as a whole.
He said the demise of the annual Crow Benefit subsidy would inflict “irreparable” damage on the prairie grain economy, taking hundreds of millions of dollars directly out of grain producers’ pockets.
“Does the government have any concept of the impact this would have on the prairie economy and farm families,” he said, rejecting arguments that those losses to grain growers would be offset by gains in the livestock sector.
He said both the Canadian Wheat Board and the supply management system for dairy and poultry should be maintained. He also urged the government to spare agricultural research and food inspection programs in its budget-cutting efforts.
The federal government’s finance committee is traveling across the country with a mandate to ask Canadians where, not whether, the government should cut spending.
Several of the presenters appearing at the Saskatoon session took issue with those terms of reference. Some said the government should also be looking for ways to increase revenue by increasing taxes on corporations and closing tax loopholes for high income earners.
Labor and co-operative groups told the committee that social programs aren’t responsible for the deficit and shouldn’t be the target of major cuts. They emphasized job creation, lower interest rates and a more fair tax system.
Business groups disagreed. The rich are already heavily taxed, they said, and increasing corporate taxes will drive corporations and jobs out of the country. They said if the deficit isn’t brought under control, social programs will be at greater risk.
The committee met with Winnipeg business and community groups later in the week. There the Keystone Agricultural Producers urged the federal government to view agricultural safety nets and support for education as long-term economic development tools.
