Newsroom
2007
Let evolution of CWB continue, board of directors urges
May 23, 2007
Winnipeg – The CWB’s farmer-controlled board of directors says the federal government should allow the CWB to continue to evolve, free from political interference. The board made the appeal as part of its response to the Regulations Amending the Canadian Wheat Board Regulations and Regulatory Impact Analysis Statement, published April 21.
“Our comments centre on the notion of farmer control, which is critical to understanding the current CWB and our position on the government’s actions,” said CWB board chair Ken Ritter. “It is our position that that the 1998 amendments to the CWB Act were clearly intended to prevent the CWB’s single-desk marketing mandate from being altered by the government of the day acting on its own.”
Since 1998, the board has been moving steadily towards greater producer flexibility and control over marketing decisions through Producer Payment Options. “We want to continue to evolve without sacrificing the strength of the single desk,” Ritter said.
The CWB’s submission notes that the government has presented no detailed economic analysis of the impacts of its proposed changes, nor of the benefits of an open market, calling this “an unusual omission” for such a significant policy initiative.
“Aside from the legal concerns related to the government’s regulation-making authority, [the amendments] have been put forward without an adequate foundation, plan or policy to support their premise that this move towards an open market environment will, in fact, benefit the farmers of Western Canada,” it reads.
Accordingly, the CWB is requesting that the government:
- defer implementation of the proposed amendments until at least Aug. 1, 2008;
- proceed immediately to obtain a court ruling on the validity of the proposed amendments;
- meet with the CWB board of directors to review the means by which further commercial harm to farmers and the industry can be avoided or mitigated;
- meet with the CWB and the industry to establish appropriate compensation for the losses that have been and will be caused by the government’s actions.
The submission also addresses the critical issue of ensuring that farmers do not shoulder the financial burden of industry uncertainty created by the government’s announcement. The CWB’s liability is not separate from farmers’ liability if barley contracts with maltsters are broken due to the sudden change, the submission notes.
“The CWB’s financial interests are farmers’ interests. Farmers pay all of the bills at the CWB and, if and when the CWB is named in legal actions because contracts go unfulfilled, farmers themselves will pay,” it reads.
The submission points out that the government’s actions have created uncertainty that put current barley sales in jeopardy, ignoring the fact that the CWB must continue to operate as a single-desk seller until the law is changed. Valuable sales opportunities continue to be lost as a result. The full document can be viewed at www.cwb.ca .
Controlled by western Canadian farmers, the CWB is the largest wheat and barley marketer in the world. One of Canada’s biggest exporters, the Winnipeg-based organization sells grain to over 70 countries and returns all sales revenue, less marketing costs, to farmers.
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For more information, please contact:
Maureen Fitzhenry
CWB media relations manager
Tel: (204) 983-3101
Cell: (204) 227-6927