The federal government is projecting budget cuts of $186 million at Agriculture Canada and the Canadian Food Inspection Agency in the fiscal year beginning April 1.
It would be almost a five percent reduction in spending at the department and agency.
In spending estimates tabled in Parliament last week, the government projected cuts in business risk management spending, the frequency of meat inspection for listeria contamination and export market development and on-farm environmental program funding.
The projected spending cuts include assumptions of savings in business risk management funding because of strong commodity prices but also reductions in AgriFlexibility funding to transfer more money into science, innovation and adaptation programs.
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The projected Agriculture Canada budget cuts, which can be supplemented as needs arise throughout the year, coincide with the deficit-cutting target set by treasury board president Tony Clement for each government department.
The department made no official connection between projected spending cuts and government deficit-reduction targets of at least five percent in each department.
However, overall projections of government spending do not come close to the deficit-reduction goal. More news of government cutbacks are expected March 29 when finance minister Jim Flaherty presents his 2012 budget in the House of Commons.
Opposition agriculture critics expect more cuts then, as well as details in May when departments table their “priorities and planning” reports for the next fiscal year.
“I absolutely see this as where the budget is heading, so stay tuned,” NDP critic Malcolm Allen said.
“I think we will see cuts that directly affect farmers and food safety programs.”
He noted the decision to cut a $28.7 million program set up several years ago to help meat packers deal with higher costs because of specified risk material disposal rules, as well as a $30 million cut that will end increased meat inspection that was started following the 2008 listeria outbreak that killed 24 Canadians and sickened hundreds more.
Part of the funding for increased inspection was aimed at keeping the U.S. market open by accepting an American demand for increased inspection of meat heading south.
“I’m not sure how they plan to sunset that increased inspection because it’s an export program in part, and the Americans have not withdrawn their requirement that it be inspected heading out of the country,” said Allen.
