OTTAWA – The federal government must increase its compensation and stretch out the adjustment period for some farmers moving to a new Seaway pooling system, a Manitoba Pool spokesman told MPs last week.
“Eastern prairie farmers will be severely affected by the proposed pooling changes and therefore must receive fair and adequate compensation,” Manitoba Pool Elevators vice-president Ken Edie told the Commons agriculture committee June 14.
He didn’t give an alternate number when he said the government proposal to pay out $100 million in compensation over three years is not adequate.
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Beginning Aug. 1, farmers in Manitoba and eastern Saskatchewan will begin to pay more of the cost of moving grain through the Seaway, shifting to a full user-pay system by 1998. Until now, costs east of Thunder Bay have been paid by all prairie grain shippers out of Canadian Wheat Board pool accounts.
Edie, speaking for Manitoba and Saskatchewan pools, said eastern producers are expected to pay $50 million more in freight costs next crop year alone because of the pooling change.
“We would feel this would be a bare minimum for compensation.”
He also argued that the term of compensation should be increased to at least four years from three. Edie told Bloc QuŽbecois MP Jean-Guy ChrŽtien he would support a BQ proposal that the government pay compensation for five years.
Edie said farmers affected by the pooling change need a quick commitment from Ottawa on how much compensation they will get and for how long. Affected farmers “are entitled to and urgently require” solid information from Ottawa, he told MPs.
