Speech for Hon. Chuck Strahl, Minister of Agriculture and Agri-Food and Minister for the Canadian Wheat Board
Dawson Creek Chamber of Commerce
Dawson Creek, British Columbia
January 19, 2007, 12:00 p.m.
Check against delivery
I am delighted to be here today - speaking to members of the Chamber of Commerce, to the people who make Dawson Creek a better place to work, live and invest.
Business people who are members of chambers are entrepreneurs -- they are bustling with energy, they are building their businesses, hiring people, they are creating employment, taking risks, investing and reinvesting or doing the job of putting their own hard-earned money at risk to better their businesses and better their communities.
And all they really ask of governments is to stay out of the way so they can do what they do best.
We came to office - pretty close to a year ago -- with a mandate to help you do that - to fundamentally change the way we do business in this country.
We have had a very focused agenda. It's been a very busy time working on a list of things to do in a minority Parliament.
We've had some good success.
We tabled our first budget last spring and we brought in tax relief in virtually every area. Measures that will put more money into the pockets of all Canadians - including rural families.
We lowered the GST from 7 to 6 per cent; and in our economic update in November, we showed how we will reduce it even further to 5 per cent.
In the budget, we gave tax breaks to small businesses, to corporations and to individuals. And we announced further reductions in EI premiums, to help both employers and employees.
We've put forward other tax and spending initiatives since taking office.
More money for families with pre-school children. More for university students and their families.
A record $16.5-billion infrastructure package. We provided help for apprentices and those who hire them. Money for research and development, money for aboriginal housing, both on and off reserve.
We are now proposing income splitting for seniors and also for seniors more and bigger personal tax deductions.
All this while trimming $1 billion from federal spending and retiring over $13 billion of federal debt, saving taxpayers over $650 million a year, in each and every year going forward.
We gave tax breaks to small businesses, to corporations and to individuals and levelled the playing field between income trusts and corporations, which was a difficult decision, but one that was necessary for the long-term impacts on both taxation and economic growth.
Last year alone, over $70 billion had moved into income trusts and it became increasingly obvious that the balance between corporate and individual taxation was being lost, so we took action and corrected that imbalance.
In November's financial fiscal update, we promised that every single dollar of surplus will go to retire the debt and we will apply the savings from that to income tax reductions for all Canadians.
So we're all going to have a vested interest in making sure we retire more of the debt.
We've worked hard to spend less of your money, and to leave more money in your pockets.
Because we believe fundamentally that a dollar left in the hands of an entrepreneur or a student or a homemaker or a farmer is more productive than that same dollar sent to Ottawa to go into programming or to special interest groups that you're not part of, or in programming that you never asked for or don't seem to be able to access.
We believe that that dollar left in your hands is essential.
We've also been busy making Canada and Canadians more secure by rebuilding our military and by introducing a package of crime-fighting legislation.
Canadians are rightly proud of the good work done by the Armed Forces, and they can count on our government to stand with them as they do that good work at home and around the world.
Our government is also delivering on its commitment to get tough on crime and give our law enforcement agencies the resources they need to help keep Canadians and their communities safe and secure.
That is why the Prime Minister announced in August that the Government of Canada is upgrading the RCMP Training Academy in Regina and hiring 1,000 new RCMP personnel.
This was a commitment in the budget, for a total investment of nearly $200 million over the next two years.
When it comes to justice issues, far too often I think it's an example of what people tell me, which is that Ottawa is like five square miles surrounded by reality.
People talk about it but they just don't seem to understand that if you're going to do serious crime, then you should do some serious time.
We introduced legislative reforms to strengthen the laws against alcohol- and drug-impaired drivers.
The Government also introduced Bill C-9, which is dealing with conditional sentencing. That means the end of house arrest and the start of real jail time for repeat and violent offenders.
Then there's Bill C-10, setting out mandatory minimum penalties to instruct judges to put serious criminals in jail where they belong.
We've also introduced street racing legislation and developed a DNA databank. We're raising the age of consent from 14 to 16. And we're changing the dangerous offender legislation so that violent and sexual predators with three convictions can be locked up to protect society.
All of this because we believe that when the so-called rights of the criminals come up against the rights of law-abiding citizens, we come down on behalf of law-abiding folks every single time.
We're urging the opposition parties to quit stalling the bills in committee. Quit gutting them and bring them back to the House of Commons as good, tough bills, because we think that Canadians are saying that it's time to see our injustice system become a justice system once again. So that's a big priority for us and we've made some good headway.
We're also have a comprehensive environmental agenda, which includes Canada's Clean Air Act, support for public transit users, a comprehensive Chemicals Management Plan and action on renewable fuels. Prime Minister Harper recently announced the creation of a new Cabinet Committee on the Environment and Energy Security which will pursue practical and effective solutions to decrease Canada's greenhouse gas emissions, reduce pollution and improve the health and well-being of Canadians.
Now, speaking directly to our action on agriculture, we added $1.5 billion to agriculture in last year's budget. That's triple our original commitment but it was much needed and much appreciated.
Our first act out of the gate was to announce that we were expediting payments under the $755-million Grains and Oilseeds Payment program.
We also brought in a program to help low-income farmers.
We've doubled the amount of interest-free money available to farmers through cash advance programs.
In May, I announced a $50-million contribution to the Cover Crop Protection Program to help Canadian farmers restore and protect farmland that was damaged due to spring flooding in 2005 and 2006.
In November, I announced an additional $40-million investment in the program.
This program has been very successful and obviously very necessary. To date, we have delivered financial assistance to nearly 14,000 farmers under the program.
With this additional contribution, we are ensuring that all Canadian farmers eligible for assistance will receive a payment under Cover Crop.
Drought has been a significant problem for producers in this region and several others on the Prairies and in Ontario.
In December, I announced tax deferrals for livestock producers who were forced to sell all or part of their herds last year due to drought conditions affecting feed and water supplies.
And here in the Peace Region of B.C., producers are dealing with the aftermath of a second consecutive year of drought. Production Insurance and the Canadian Agricultural Income Stabilization program have or will provide assistance to help cover production and income losses that resulted from the dry conditions.
Forage and grain and oilseed producers in this area will receive an estimated $5.0 million dollars through PI for the 2006-7 year. And since the beginning of CAIS, producers in B.C. have received over $142 million in assistance to help them manage income shortfalls.
However, we recognize the considerable hardship livestock producers have faced this year as a result of drought and we will continue to work with producers and provinces to determine what else can be done to address the situation.
Farmers in this province and across the country tell us in no uncertain terms that they want simpler, more responsive programs that are predictable, transparent and bankable.
We are taking action, as promised, on replacing CAIS with a new suite of disaster relief and income stabilization programming.
We're taking steps to do that.
We have taken action on fixing the inventory valuation system, which farmers told us just didn't cut it.
We've invested $950 million to fix the inventory valuation system and to improve negative margin coverage.
Also in response to producer concerns, we got rid of the CAIS deposit and we introduced disaster advances.
So over the past year we have made significant progress on moving to a new suite of business risk management programs.
We established also, at our last federal-provincial-territorial meeting in November, agreement in principle to implement a new agriculture disaster relief framework that I am convinced will get help to farmers who need it in a hurry for all kinds of reasons.
We're also moving and working with the provinces to develop and expand coverage under production insurance to livestock and additional horticultural crops.
But there is still more work to be done. At our meeting in Calgary in November, my provincial and territorial colleagues and I agreed more work needs to be done to identify and address gaps in the programming and make improvements in the business risk management system.
And we want farmer input on how to do that. A week ago in Abbotsford, I attended one of several consultation meetings we are holding with farmers on risk management to ensure farmers have a voice.
Discussions on the long-term prosperity of the industry need to be part of the consultations on the next generation of agriculture and agri-food policy. The second round of consultations start Monday in Prince George and continue across the country through February. There will be a session next Wednesday - on January 24 in Fort St. John and I encourage all of you to attend and make your voices heard.
Issues related to innovation, markets and trade, food safety and animal health will become much more important if industry is to be successful in its efforts to adapt to its changing competitive position and we'll be making sure that there is the federal investment necessary to make that happen.
For the ag sector overall, we are putting renewed emphasis on science as a key to creating new opportunities for producers.
I believe that the science strategy I announced last year will be key to helping the ag sector transition from a heavy dependence on low-cost bulk commodities where the price pressure is intense, to more profitable, integrated and exciting value-added industries.
That is why the Government has taken concrete action to combat climate change by announcing it will regulate the use of renewable fuels in Canada and deliver $355 million to assist farmers and rural communities in seizing new market opportunities in the agricultural bioproducts sector.
The Government intends to regulate an annual average renewable content of five percent in gasoline by 2010 and intends to regulate a two percent requirement for renewable content in diesel fuel and heating oil by 2012.
This is a win-win situation. Canadians will reap the environmental benefits, our farmers and rural communities will profit and by continuing to work toward a viable domestic biofuels industry we will secure Canada's place in the growing bio-economy.
Biofuels are good news, I believe, for farm families, for small communities, and for the environment.
They have the potential to create jobs and spur economic development throughout Canada.
That is why in July, I announced a federal investment of $10 million in the Biofuels Opportunities for Producers Initiative.
This program was a first step to enable agricultural and rural communities to seize opportunities to participate in and benefit from increased Canadian biofuels production.
The next step was the $345 million announcement, which I announced in December. With this funding, we are introducing two new agriculture programs that will help bolster the development of biofuels and other bioproducts.
The $145 million Agricultural Bioproducts Innovation Program and the $200 million Capital Formation Assistance Program for Renewable Fuels Production are designed to create new market opportunities for Canada's agricultural producers.
Advancing Canada's bio-based economy is a priority for Canada's government. These programs are an important step in achieving the Government's objective of renewable content in transportation fuels, while also creating new economic opportunities for our farmers and agricultural sector.
I believe this is the start of an exciting new chapter in agriculture.
There will be new opportunities in bio-energy, bio-plastics, bio-composites and food products that enhance human health. We will be working closely with partners and science and innovation specialists to help realize some of this tremendous potential.
This is the way forward, I believe: New products, new uses, and new markets for agriculture biomass will position the Canadian ag sector for long-term sustainability and profitability.
Now, as everyone in this room is aware, we have also committed to create marketing choice for Western wheat and barley producers.
We committed to this during the campaign. We're moving forward in an orderly and transparent fashion. There are no surprises here. No hidden agenda.
We campaigned openly about it and we want to move ahead with it.
The election results here in Western Canada gave us a resounding mandate for change.
We're holding a vote on the marketing of barley, and, as I announced last week, voting will take place between January 31 and March 6.
We are working on developing the voters' list and the wording of the question. I'll have more news on that fairly soon.
Again, this vote is on barley only.
Let me emphasize that the Canadian Wheat Board will remain in place and will continue to market. In fact, those who are planning on growing wheat and durum this spring should count on marketing that wheat crop through the Wheat Board as usual. Right now, the only thing that's in the window is a plebiscite on barley.
So what's our rationale for change?
Well first, we campaigned on marketing choice. We said we wanted to have marketing choice. We campaigned on it. It was front and centre on our election brochures and we want to move ahead with it.
Second - many producers tell us that the current system is suffocating innovation and stifling entrepreneurship.
Farmers are independently minded. That's why they have chosen the path they're on. They're entrepreneurial businesspeople like you. They want to call their own shots, and decide for themselves what to plant, when to harvest and how to market.
Canadian agricultural producers want and need the chance to succeed and the freedom to make their own choices on how they produce and market their crops.
We do not think they should be thrown in jail for that, as they have been in the past.
Farmers want the ability to add value to their crops and capture more profits beyond the farm gate.
They take all the risks and make all the investment.
They deserve to have the opportunity to seek out the best possible return for their own product -- just as they would with canola or pulse crops or apples or cattle or any number of other farm products from across the country.
Now for most of the past seven decades, Western Canadian wheat and barley growers have not had that choice.
The Wheat Board monopoly on wheat and barley was imposed by Parliament because of a variety of dynamics and reasons 70 years ago.
The system was essentially designed to collect the grain produced by thousands of small farmers, at small country elevators, market it around the world as a uniform commodity, and divide the returns from this process among all the producers who delivered the grain.
Today, those dynamics have changed and our approaches and structures need to change with them.
The idea of simply or only selling one uniform commodity made much more sense in the days when a few countries dominated the grain export market and large quasi-government buyers negotiated long-term supply contracts on a national level.
Today, there are numerous new or growing exporters, in South America, the former Soviet Union and other regions around the globe.
As well, in the buying side of the market, it's moved away from the commodity procurement of the past to a situation in which a large number of mainly private buyers would select a range of quality attributes for particular market segments.
In other words, people are getting picky. They want high-quality products which Canadians produce, but they want it delivered at a certain time, in a certain way, in a manner that often farmers are best able to meet.
But make no mistake: Farmers and this government see a future in the grain industry but they and we are looking for new, value-added revenue streams and greater marketing flexibility.
Currently, by law, Western Canadian wheat and barley growers are fenced off from that. They're prevented from having the same rights as every other producer in the country about where to sell their products.
Starting a pasta plant, for instance, or a value-added organic grains business, or supplying wheat to an ethanol plant down in the States.
These are only examples. Every producer and every situation is unique. The best person to decide the right production and marketing options for their farm is the person who makes the decisions, takes the risk and lives with the consequences.
Ladies and gentlemen, our vision for the Canadian Wheat Board is this: A strong, voluntary, and viable wheat board - one that can offer farmers a viable marketing choice.
In dollars and cents, the right to choose comes down to this….an Ontario wheat grower selling hard red spring wheat with 13.5% protein would get about $5.50 per bushel right now in the spot market. A grower on the Prairies selling #1 Canada Western Red Spring with 13.5% protein through the Canadian Wheat Board is currently forecast to receive about $4.40 per bushel as a final pool return, $1.10 less than received by the Ontario farmer, and this projection can change. Not only would the Prairie grower receive less, but he or she would have to wait for months to find out how much less.
Now, there are some out there who would say let's get rid of the Wheat Board. I'm not one of them. Nor is our government. We want a Wheat Board. We want it to be strong. We want it to be in a marketing choice world.
In a marketing-choice environment, I expect that many producers will choose to continue to sell their wheat and barley through the Canadian Wheat Board. It meets their business model. They want to pool their risks and their resources and if they think they get a good bang for the buck, then by all means they should use the Wheat Board.
We want to give them that option and that's why we want a strong Wheat Board in the years to come. We believe the Wheat Board can continue to function and be a strong force in the international and domestic grain market.
At the same time, there will be others who choose to do their own marketing.
We believe they should have the freedom to do that as well - just as producers across Canada have the freedom to choose their own marketing systems.
Farmers want to know where we are going as a Government. We have a plan. We're offering farmer consultation through our plebiscite vote on the marketing of barley. We're moving forward just on barley at this time. We believe that the future for grains, generally, is very bright here in the Peace Region and across Western Canada.
But to get there, we must meet producers' needs and maximize their returns, maximize their choices and give them the options they deserve.
Agriculture -- and rural Canada as a whole -- has played a vital role in the formation of our nation. You really can't talk about sovereignty as a nation if we don't have a strong and viable agriculture sector.
Our New Government will continue to stand up for agriculture here and around the world.
We will continue to stand up for a strong, vibrant farm sector that provides security of income to families dependent on farming, and food security for all other Canadian families.
I must tell you, I'm very optimistic about the economic opportunities and prospects ahead for the Canadian agriculture and agri-food sector.
I believe we've turned a corner on agriculture. Prices are coming up. Demand is on the rise. Government programming is changing to respond to that. And we're encouraging more diversity and opportunities for farmers.
We are on the threshold, I believe, of the best years yet for agriculture and it's a great time to be Minister.
Thank you very much for having me.