OTTAWA NOTES

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Published: September 4, 1997

While overall federal government spending is falling this fiscal year, agriculture support spending is increasing, finance department figures show.

Government financial results for the first quarter of the year started April 1 indicate that overall spending fell 4.1 percent to $34.1 billion, fueled by cuts in health and welfare spending, employment insurance paring and lower departmental expenses.

In fact, government revenues exceeded expenses in May and June, the first two-month surplus recorded by Ottawa in almost 20 years.

The Agriculture Canada overall budget is part of the cuts.

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An aerial image of the DP World canola oil transloading facility taken at night, with three large storage tanks all lit up in the foreground.

Canola oil transloading facility opens

DP World just opened its new canola oil transload facility at the Port of Vancouver. It can ship one million tonnes of the commodity per year.

Yet agriculture “subsidies and other transfers” increased during those three months by almost 14 percent, from $66 million to $75 million.

An Agriculture Canada official said the spending splurge was not part of a pattern but only a reflection of when some program costs fell in the year.

Food bill went up

The overall price of food for Canadians increased 2.1 percent during the past year, Statistics Canada reported.

Food inflation in July was slightly higher than the general Canadian inflation rate of 1.8 percent.

And the overall food price index was kept low by falling prices for some fruits and vegetables.

The federal agency reported that during the past 12 months, overall meat prices increased 4.3 percent, bakery and cereal products increased 3.1 percent and prices for supply managed dairy and eggs increased 3.4 percent.

About the author

Barry Wilson

Barry Wilson is a former Ottawa correspondent for The Western Producer.

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