OTTAWA – Federal planning to slash Agriculture Canada by more than 20 percent during the next three years was an exercise in trying to spread the pain.
The big spending areas – research, inspection and safety nets – were hit heavily in the search for $445 million to cut from the department by 1997-98.
Seven smaller research stations were closed and despite agriculture minister Ralph Goodale’s promise to protect research at all costs, the budget will take a $30 million hit over three years.
Stations at Regina, Vegreville, Alta., Prince George, B.C., Thunder Bay and Smithfield, Ont., La Pocatiere and l’Assomption, Que. will be closed.
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As a balance for the loss of the Crow Rate rail transportation subsidy on the Prairies, the federal dairy subsidy will be cut 30 percent to $159.6 million from $217.2 million. Quebec separatists have threatened to make any cut in the subsidy an issue in the upcoming Quebec referendum.
The feed freight assistance program also will be cancelled this year, with a promise of $60 million over the next decade to help develop agriculture on the east and west coasts and in the north – areas now served by the freight subsidy program.
Export credit
And the government is creating a $1 billion export guaranteed credit program to be used by the Canadian Wheat Board or other traders in sales to foreign governments or private buyers.
The department also will spread the staff cuts across the country.
Of the more than 2,000 staff positions to be eliminated, 560 will come out of Ottawa, 250 out of Manitoba, 150 each out of Saskatchewan and Alberta, 140 out of British Columbia, 260 out of Quebec, 280 out of Ontario and 150 out of Atlantic Canada.
The genetic improvement program of Agriculture Canada will be sold to the private sector.
Responsibility for the showcase herds will be transferred to the national Museum of Science and Technology.
The Livestock Feed Bureau will be abolished and users of the inspection and grading service will be expected to pay up to $70 million in user fees by 1997-98.
One of the very few areas of new spending announced in the budget is a $60 million annual Adaptation Fund to be used to finance farm business management training, rural development and environment protection.
Martin announced that over two years beginning in 1996-97, postal subsidies for books, magazines and rural publications will be cut eight percent from a base of $77 million.
As recently as 1989, the postal subsidy cost Ottawa $220 million.
