Political crisis trips farm plan

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Published: June 6, 2002

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.

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