With little more than a week left before negotiators hope to finalize the federal-provincial farm aid package, Ottawa continues to insist there will be no special agreement to reduce Saskatchewan’s share of the cost.
Preliminary figures suggest Saskatchewan farmers could be eligible for up to $200 million in the first year of the two-year income disaster program.
The federal government says it will fund no more than 60 percent of that, $120 million. Cheques from Ottawa could start to flow in June.
If Saskatchewan farmers are to receive the same level of help as producers in other provinces, the remainder would have to come from Regina.
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Saskatchewan has been pleading for special consideration because of its large farm base and the impact the income drop is having on provincial tax revenues.
Last week, acting assistant deputy agriculture minister Doug Hedley said in an interview there is no inclination by federal politicians to vary from the 60:40 funding rule imposed by Ottawa.
“None whatever,” said Hedley. “I cannot find any give on that at all.”
In Regina, the federal deputy minister Frank Claydon said after meeting with his provincial counterpart Terry Scott that the two levels of government continue to negotiate.
Earlier, Saskatchewan premier Roy Romanow vowed to continue the fight for a federal concession.
“Right now, the federal proposal … places a disproportionately high per capita expenditure on the farmers of Saskatchewan than on any other farmers in any other province by two or three country miles,” he told reporters in Regina.
“It is simply not fair and we are going to negotiate a very hard approach.”
But despite some speculation that a refusal by the province to pay its share would mean Saskatchewan is out of the program, Hedley said federal dollars will flow to all provinces once details are worked out.
He said Ottawa has no choice if the aid package is to meet international trade rules.
“To keep this program (trade) green, we have to treat every producer in every province the same as a federal government,” he said. “So if Saskatchewan doesn’t join, it doesn’t matter. We will go ahead with 60 percent of the payment that individual farmers would be due, under the program.
“In Quebec’s case, for every 60 cents the federal government spends, Quebec is spending $1.80 or $1.90,” Hedley said. “Alberta is 53 cents or 54 cents.”
British Columbia and Prince Edward Island also have farm income disaster programs.
Meanwhile, as Liberal MPs gathered in Ottawa last week for a pre-Parliament caucus, rural MPs faced farm lobby demands that government speed up and enrich the process of getting money to farmers. They called in some senior bureaucrats to get a rundown on how negotiations are progressing.
“I know there are criticisms and these things never happen quickly enough, but I think we came out of it being quite happy with what we heard,” said Larry McCormick, an Ontario MP and Liberal rural caucus chair. “Progress is being made and things are coming together.”
