Newsroom
2001
October 3, 2001
Farmers must retain control of the Canadian Wheat Board
Winnipeg -- Farmer control of the Canadian Wheat Board
(CWB) would be undermined by Canadian Alliance plans to transfer
responsibility for its financial borrowings to the federal
government, the chair of the CWB Board of Directors said today.
"Farmers have long demanded control, accountability and financial
openness on the part of the CWB," Ken Ritter said. "Now the federal
Opposition is suggesting they should give up a good chunk of that
control and hand it back to Ottawa."
Ritter was responding to perplexing comments this week from
Canadian Alliance agriculture critic Howard Hilstrom, who has
questioned the amount of CWB borrowings. He said Hilstrom shows
little understanding of the complexities of international trade or
its associated financing.
The CWB's borrowing program is necessary to meet the huge financing
requirements surrounding one of Canada's largest export
commodities. The spread on financing activities also results in
millions of dollars in interest earnings each year. These earnings
are put directly into the hands of farmers through the CWB pool
accounts. All CWB borrowings are made through domestic and
international commercial markets.
Ritter noted the Western Canadian Wheat Growers Association had
acknowledged that farmers benefit financially from the system.
However, he was dismayed that the group then resorted to
ill-informed comments about CWB use of its "financial clout" to
"subsidize" customers.
"It is regretful to see a group which purports to represents
Prairie farmers parroting the unfounded claims of the North Dakota
Wheat Commission in their latest trade challenge of the CWB," he
said. "Such rhetoric can only work against farmers' interests."
Farmers have been electing 10 of the 15 members of the CWB Board of
Directors for three years as part of ongoing efforts to ensure that
farmers control the organization, not the federal government,
Ritter added.
"To now say that farmers would be better off with the federal
government keeping their books defies all logic," he said. "I
suggest the Canadian Alliance needs to be careful that they are
advocating the best course of action for Prairie producers - and
basing their opinions on a true understanding of the issues."
Controlled by western Canadian farmers, the CWB is the largest
wheat and barley marketer in the world. As one of Canada's biggest
exporters, the Winnipeg-based organization sells grain to more than
70 countries and returns all sales revenue, less marketing costs,
to Prairie farmers.