Agriculture minister Lyle Vanclief has prepared a farm policy funding
package for the federal cabinet that would send more than $1 billion in
temporary aid to farmers over the next two years and add hundreds of
millions of dollars annually to the existing $1.1 billion safety net
base.
But last weekend’s Liberal party leadership crisis that saw finance
minister Paul Martin removed from cabinet in a power struggle with the
prime minister has thrown the package’s timing and content into doubt.
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Government officials say the finance department may use the delay to
try to trim the size of the package.
Vanclief was supposed to take the package to cabinet June 4, hoping for
a quick decision that would allow him to announce it this week.
Cabinet discussion of the plan has been delayed by at least a week.
Liberal sources say it would have included:
- Funding for the proposed agricultural policy framework of at least
$1.6 billion annually and perhaps more, compared to the current $1.1
billion.
- A package that includes improvements to crop insurance, Net Income
Stabilization Account and other existing programs in a clear backing
away from the much-criticized national program concept of earlier
versions.
- A two-year “bridge financing” package that would send more than $1
billion in federal funding to farmers. Provinces would be expected to
top up the package.
Rather than being a “trade injury compensation program” as advocated by
farm groups and provinces, it would be described as a general economic
hurt offset program aimed at recognizing low prices, drought and other
problems.
Detailed discussions would be required with provinces to figure out how
to distribute the fund.
It would be a two-year program, rather than an open-ended compensation
plan and would be in place until price-distorting foreign subsidies
end.
“We simply cannot open up the Pandora’s box of trade injury offset or
foreign policy injury offset because there are so many potential
claimants,” said one Liberal involved in the package negotiations.
“Lumber, steel, airplanes, whatever. Where would it end?”
In an interview, Vanclief said the government recognizes the need for
bridge funding to help farmers survive until the stability of the
long-term agricultural policy framework is established.
“I’ve been to cabinet earlier on the agricultural policy framework with
some numbers around that to build on where we are at the present time,
to have increased funding,” he said May 30. “We need to get help (for)
our industry to get there.”
He also said the provinces must share the costs.
His farm policy proposal was bumped from the cabinet agenda after
deputy prime minister John Manley replaced Martin on June 2. Next week
when cabinet meets, Vanclief will be in Rome leading Canada’s
delegation to the United Nations Food and Agriculture Organization
world food summit and not available in Ottawa to defend the package.
Vanclief had already passed through one cabinet committee, felt he had
the support of prime minister Jean Chrétien and figured he would win
approval June 4.
“I’m not unhappy with the momentum,” the minister said late last week.
The weekend cabinet shuffle and political crisis changed the dynamic.
It scuttled, at least temporarily, Vanclief’s plan to be able to signal
to provinces this week how much Ottawa will commit to funding a new
long-term agricultural policy.
He has promised they will know in June so they can travel to a June
27-28 federal-provincial ministers’ meeting in Halifax with their own
commitments.
It will now be mid-June at the earliest before federal commitments are
known.
