Representatives of Canada’s municipal governments hit a stone wall last week when they appealed to the federal government for immediate financial aid to the beef industry.
Agriculture minister Lyle Vanclief insisted help would come through the stalled agricultural policy framework or not at all.
A delegation of municipal leaders led by Gatineau, Que., mayor and Federation of Canadian Municipalities president Yves Ducharme appealed to Ottawa for an immediate cash advance program for cattle producers affected by bovine spongiform encephalopathy.
Vanclief insisted they should simply pressure provincial governments to sign the APF so it can become the vehicle for cash advances.
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“It’s disappointing,” Jack Hayden, president of the Alberta Association of Municipal Districts and Counties, said during an Oct. 7 news conference after separate meetings with Vanclief and U.S. ambassador Paul Cellucci.
“He did talk about the APF and encouraged us to see it as the solution but our difficulty is that it is not in effect and it cannot react quickly enough.”
The municipal leaders, including Stu Briese from the Association of Manitoba Municipalities and Neal Hardy from the Saskatchewan Association of Rural Municipalities, were in Ottawa to argue that the beef industry crisis has had a serious impact on local governments across Canada and their ability to provide services.
“This is an economic crisis for hundreds of municipalities,” Ducharme said in an Oct. 8 interview.
“A lot of farmers can’t pay their taxes and a lot of municipalities are facing a situation where they can’t fund programs. This is a crisis across Canada.”
Larry McDermott, chair of the FCM rural caucus and mayor of the Ottawa-area municipality of Lanark Highlands, said 150 Canadian municipalities have declared an economic disaster because of BSE.
“This is having a tremendous impact.”
Hayden said many municipalities in Alberta have delayed tax collecting to the end of the year, hoping the American border is open by then and cattle producers have some cash.
“This is having a devastating effect on many municipalities,” he said. “Municipal governments and all the people who depend on our services are affected. We will continue to press for a cash advance now. “
The municipal leaders reminded Vanclief that while their programs need funding now, the APF will not take effect until at least one more major agricultural province signs. Rural governments and their taxpayers need help now.
Hayden, from a province that has signed the APF and is eligible for producer advance payments, noted that major provinces like Saskatchewan and Ontario have not and therefore are not eligible for advances.
“I think if we rely just on the APF, there will be inequities created between provinces,” he said.
Vanclief was unmoved by those arguments.
“He gave us lots of time and I think he understood our arguments but he did not accept our idea of a cash advance program separate from what else is proposed,” said Ducharme. “He promoted his own program, which does not meet this immediate need. It is disappointing.”
