YORKTON, Sask. – The provinces and federal opposition parties should take advantage of the weak Liberal minority position in Parliament and Ottawa’s surplus riches to force the federal government to pay more of farm support costs, says Saskatchewan deputy premier Clay Serby.
The former provincial agriculture minister said there are precedents.
By acting together and negotiating tough, provincial premiers extracted billions of dollars in commitments for additional spending on health care and equalization from prime minister Paul Martin during the past 20 months.
“I think the issue of affordability is huge for the provinces and I see the provinces with growing unity on this,” Serby said Sept. 30.
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“I see the provinces getting together on this. With the need in the industry now and the disparity between federal fiscal capacity and provincial, I think it has to happen.”
Federal and provincial agriculture ministers are trying to arrange a late-November meeting to discuss the affordability issue. Federal minister Andy Mitchell first agreed to put the issue on the federal-provincial agenda a year ago but there has been little progress in the discussions.
With the prospect of a federal winter or spring election, and the Martin government clearly willing to spend money to try to increase popularity, Serby said the stars are lined up to pressure the federal government.
“I think the timing couldn’t be better for this kind of discussion,” said the deputy premier and provincial minister in charge of rural issues.
“Mr. Martin has spent a lot of time in Western Canada talking about the disconnect between the West and the centre. This is one way he could begin to address that disconnect.”
The NDP provincial minister said federal New Democratic Party leader Jack Layton is aware of the issue and has leverage in the minority House of Commons.
“I think Jack will have a great deal of influence leading up to the election and I believe this is an issue he will have some questions about,” said Serby.
Although the affordability issue has been led by Saskatchewan, Manitoba and Prince Edward Island, the agricultural and fiscal powerhouses of Ontario, Alberta and Quebec are sympathetic to the cause. However, Serby warned that Alberta is prone to change its position on these provincial unity issues.
The argument is that when the farm economy is suffering, provinces with large agricultural sectors suffer a decline in revenues just as demand for farm aid increases.
In the late 1980s, the federal Progressive Conservative government of the day announced several expensive farm bailout programs that were tied by agriculture minister Don Mazankowski to a demand that provincial governments pay a greater share.
The 60-40 formula evolved, was later endorsed by the Liberals after winning government in 1993 and was incorporated into the federal-provincial agricultural policy framework agreement.
But an extended period of depressed farm incomes has led to record program spending and provincial complaints that they can’t afford it. Ottawa has inflamed the issue by designing and announcing several aid programs without provincial agreement but with encouragement to farmers that they pressure their provincial governments to contribute 40 percent.
Serby said it is an issue Saskatchewan wants to see resolved quickly.
“Our capacity to be able to support the industry gets more difficult all the time,” he said.
“The money is in Ottawa and many of the causes of the farm income crisis are international and clearly within federal jurisdiction.”
