Dealer purity is on the minds of legislators in Manitoba and Alberta, due in part to the lobbying efforts of the Canada West Equipment Dealers Association.
Saskatchewan passed legislation in December banning major manufacturers from forcing dealers to sign contracts that prevent them from carrying competing lines of equipment.
With the new legislation, Saskatchewan farm equipment dealers can now sell implements from smaller companies without fear of reprisal.
The equipment dealers association wants similar legislation passed in Manitoba, Alberta and British Columbia.
Ron Lemieux, Manitoba’s consumer and corporate affairs minister, said last week that a review of the province’s farm machinery dealership rules is under way.
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New legislation to address the issue of dealer purity is one possible outcome of that review, said Lemieux. Advice has been sought from the Farm Machinery Board, which is made up of dealers and producers.
“The board has suggested that the province study the implications of the Saskatchewan legislation before taking any further action,” Lemieux said.
Meetings are also being held in Alberta this month. Recommendations from those meetings will be taken to Alberta agriculture minister Ty Lund.
Smaller manufacturers consider dealer purity a threat to their viability. Dealers worry about losing sales.
Merv Tweed, Manitoba’s industry, trade and mines critic, said last week a private members’ bill he plans to introduce in the next session of the legislature would put a stop to the practice.
Tweed said dealer purity must be stopped to ensure the long-term prosperity of Manitoba’s short-line manufacturers and dealers.
“Just as we are encouraging producers to diversify, farm equipment dealers have to do the same.”
