Canada Gazette

The purpose of the Plant Protection Act is to protect plant life (environment) and the agricultural and forestry sectors of the Canadian economy by preventing the importation, exportation and spread of plant pests such as insects and diseases. The Minister may order the treatment or disposition of plants to control or eradicate plant pests in cases where he or she determines that it is necessary and cost-justifiable to do so.

Plum Pox Virus (PPV), also known as Sharka disease, is a serious disease of plum, peach, apricot and nectarine trees (Prunus spp.). In those countries where it has become established, PPV affects fruit yields. There is no chemical measure which can be used to control the disease. The only possible control is the removal of infected trees.

In May 2000, the Canadian Food Inspection Agency (CFIA) detected PPV on nectarine trees in the Niagara region of Ontario and later confirmed its presence in four other isolated areas in Ontario and in two isolated sites in Nova Scotia. A three-year PPV program was established in 2001 to contain, eradicate and acquire knowledge about PPV in Canada. As part of that program, the Plum Pox Virus Compensation Regulations (SOR/2001-211) were made under the Plant Protection Act. These Regulations (PPVCR) were published on June 20, 2001, and expired at the end of 2003. The PPVCR compensated growers who received a notice from the CFIA for the treatment and disposal of trees. The PPVCR also provided compensation for the replanting of replacement trees.

In April 2004, the Minister of Agriculture and Agri-Food announced an investment of $85 million over a seven-year period for the purposes of eradicating PPV and supporting affected industries. This seven-year program is designed to eradicate PPV using sampling, testing and, where necessary, tree removal. After reviewing the original three-year program (2000-2003) and assessing the current situation, international and Canadian experts believe that PPV can be eradicated in Canada over the next several years.

As part of this seven-year program, commercial growers who have trees removed may receive compensation similar to that provided under the PPVCR. The purpose of the new Regulations (PPVCR, 2004), therefore, is to provide compensation to affected growers beyond 2003.

The following list presents the principal differences between the PPVCR and the PPVCR, 2004:

The PPVCR cover only the three-year period from 2000 to 2003. The PPVCR, 2004 will cover the seven-year period from 2004 to 2010. This means that a grower who has received a notice to dispose after January 1, 2004, will be eligible to apply for compensation under the PPVCR, 2004. However, the PPVCR will not be immediately repealed given that a grower may still apply for compensation within a two-year period after receiving a notice.

The PPVCR allow for compensation to be paid for the treatment of trees. Treatment is no longer required by the seven-year PPV eradication plan; therefore, this category of compensation has not been included in the PPVCR, 2004.

The PPVCR, 2004 provide compensation only for the disposal of those trees for which compensation has not already been provided under other programs, including the PPVCR or insurance contracts.

If, under the PPVCR, 2004, a grower applies for compensation to replace a tree that has been ordered disposed of under the Plant Protection Act or Regulations between 2004 and 2010, the grower, if he or she decides to replace the tree with a Prunus spp. tree, is required to do so with a tree tested or certified to be free of PPV. This new requirement will help reduce the risk of PPV being re-introduced into orchards through the planting of infested nursery stock.

Under the PPVCR, growers were required to provide an income tax return confirming that they had farm income. Under the PPVCR, 2004, this requirement can be satisfied by either forwarding a Statement of Farming Activities (Form T2042) or a Statement A — CAIS Program Account Information and Statement of Farming Activities for Individuals (Form T1163), whichever form was submitted by the grower with their income tax return.

The amounts for tree replacement, for tree disposition and for soil preparation have been raised given the increase in farming expenses and the extra costs associated with obtaining tested or certified trees. For example, the amount of compensation for the replacement of an apricot tree is approximately 30 percent more under the PPVCR, 2004 than it was under the PPVCR.

The PPVCR do not allow for compensation past 2003. Growers who have received notices after 2003 would not be eligible for compensation even though they had suffered similar losses.

This option would provide compensation to growers beyond 2003; however, it may create administrative difficulties. If the PPVCR were amended, there would be a need to distinguish between when notices were issued, when tree planting must occur and which compensation levels would apply. This would likely result in confusion on the part of growers and administrative difficulties for the CFIA.

The introduction of the PPVCR, 2004 will translate into a lesser administrative burden for both growers and the CFIA. The PPVCR, 2004 will apply only to growers who have received notices after January 1, 2004. It will be obvious to growers under which regulations they are eligible to apply.

The estimated amount of compensation that will be paid under the PPVCR, 2004 is between $5.6 million and $6 million. This type of compensation is an income transfer and, as such, does not constitute a social cost.

Additional costs for administering the compensation program will be absorbed by the CFIA.

The main benefit of the proposed compensation is to support the implementation of the eradication measures by providing funds for the disposal of host trees and for the re-planting of tested and certified trees.

The compensation is necessary to support the stone-fruit industry in Canada which is endangered by this virus.

Since the May 2000 discovery of PPV in Niagara, extensive consultation on all aspects of the eradication programs (including the compensation components) has been ongoing with industry stakeholders, including tender fruit growers, processors and nursery operators. The CFIA has received strong support from the following groups to continue the eradication efforts to rid Canada of PPV:

These groups have been key partners with the CFIA in its efforts to enhance detection methods and to prevent the spread of PPV to other parts of Canada.

Tender fruit growers and other stakeholders were consulted on the proposed compensation and other aspects of the new eradication program at a meeting hosted by the CFIA, Agriculture and Agri-Food Canada, and the Ontario Ministry of Agriculture and Food on October 6, 2004, in St. Catharines, Ontario. The Regulations reflect the input received from stakeholders at this meeting and the advice of the National PPV Task Force and the International Expert Panel.

Compliance will be obtained through a thorough review of applications received, inspection of replanted trees to ensure certified or tested status and recovery of funds if growers are found to be ineligible for compensation.

Enforcement will be tied to the continuation of the issuance of the notice for disposal to remove trees tested positive.

Cameron Duff, Acting Director, Plant Health Division, Canadian Food Inspection Agency, 59 Camelot Drive, Ottawa, Ontario K1A 0Y9, (613) 225-2342 (extension 4347) [telephone], (613) 228-6628 (facsimile).

Notice is hereby given that the Governor in Council, pursuant to paragraph 47(q) of the Plant Protection Act (see footnote a), proposes to make the annexed Plum Pox Virus Compensation Regulations, 2004.

Interested persons may make representations with respect to the proposed Regulations within 15 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be sent to Mr. Cameron Duff, A/Director, Plant Health Division, Canadian Food Inspection Agency, 59 Camelot Drive, Ottawa, Ontario K1A 0Y9 (tel.: (613) 225-2342, ext. 4347; fax: (613) 228-6628; e-mail: duffc@inspection.gc.ca).

(a) the requirements set out in a document referred to as D-83-44 that was prepared by the Food Production and Inspection Branch of Agriculture Canada and dated December 21, 1983, which document is available in both official languages from the Canadian Food Inspection Agency on request; or

"tested tree" means a tree propagated from budwood and clonal rootstock that originated from plants tested annually by the Canadian Food Inspection Agency and found negative for the presence of plum pox virus. (arbre testé)

"tree" means an apricot, nectarine, peach or plum tree that is planted in an orchard for commercial production of tender fruit. (arbre)

2. (1) Subject to subsection (4), the Minister may order that compensation be paid under subsection 39(1) of the Plant Protection Act to a person who has received a notice, issued by an inspector under that Act or the Plant Protection Regulations between January 1, 2004 and December 31, 2010, to dispose of one or more trees as a result of the presence of the plum pox virus, if the person

(i) removal and disposition of the tree or trees,

(ii) preparation of soil for the planting of a tree of a type set out in column 1 of the schedule to replace a tree that has been disposed of, or

(iii) replacement of trees that have been disposed of if the replacement trees have been or will be planted in the same location or in another location that the person owns or has the possession, care or control of;

(b) has reported farm income for tender fruit sales in the year immediately preceding the year in which the notice was issued, the year in which the notice was issued or the year in which the loss occurred; and

(2) The person may amend an application for compensation at any time before the end of the period referred to in paragraph (1)(c).

(3) A person may submit an application after the end of the period referred to in paragraph (1)(c) if

(a) there were exceptional circumstances beyond the person's control that prevented the person from submitting an application during that period; and

(b) the application is submitted within 14 days after the day on which those circumstances cease to exist.

(4) No compensation shall be paid for a loss referred to in paragraph (1)(a) for which compensation has already been paid under these Regulations or has been paid or is payable under

(a) any other program or measure, under any federal or provincial law, for the purpose of compensating for losses resulting from the presence of the plum pox virus;

(a) for the removal and disposition of a tree of a type set out in column 1 of the schedule, the applicable amount set out in column 2;

(b) for the preparation of soil for planting a tree of a type set out in column 1 of the schedule to replace a tree that has been disposed of, the applicable amount set out in column 3 of the schedule in respect of the replacement tree, if the preparation has been done by the applicant or the applicant has undertaken to do it in the undertaking required by paragraph 4(h); and

(c) for the replacement of a tree that has been disposed of by a tree of a type set out in column 1 of the schedule, the amount from column 4 of the schedule that corresponds to that type of replacement tree, if the applicant has planted the replacement tree or has undertaken to plant it in the undertaking required by paragraph 4(h).

4. An application for compensation must be on a form provided by the Minister and signed by the applicant and must include the following information and documents, together with any other information and documents that are necessary for the Minister to determine whether the application meets the requirements of these Regulations:

(a) the applicant's name, address and telephone number and facsimile number and e-mail address, if any;

(c) whether the applicant is a sole proprietorship, corporation, partnership, cooperative, association or organization and the names, addresses and telephone numbers of the owners or directors, as applicable;

(d) a copy of the Statement of Farming Activities (Form T2042) or Statement A — CAIS Program Information and Statement of Farming Activities for Individuals (Form T1163), whichever form was submitted with the applicant's income tax return for one of the following years for which the applicant reported farm income for tender fruit sales, namely, the year immediately preceding the year in which the notice referred to in subsection 2(1) was issued, the year in which the notice was issued or the year in which the loss occurred;

(e) evidence to substantiate the number of trees, the type or types of trees and the number of trees per tree type that were required to be disposed of;

(i) copies of all documents received by the applicant that relate to the disposition of the trees,

(ii) evidence to substantiate the numbers of trees of each type set out in column 1 of the schedule that have been planted to replace the trees that were required to be disposed of and the location where the replacement trees were planted, and

(iii) evidence to substantiate that the replacement trees were tested trees or certified trees;

(g) if the applicant has ordered a replacement tree that has not yet been delivered to the applicant, evidence to substantiate the number of trees ordered and the location from which the trees were ordered; and

(h) with respect to compensation for the preparation of soil for the planting of a tree of a type set out in column 1 of the schedule that will be planted to replace a tree that was disposed of, an undertaking by the applicant

(i) that the applicant will prepare the soil and plant the replacement tree within three years after the date of the notice referred to in subsection 2(1) that required the disposition of the tree that was disposed of,

(ii) that the applicant will notify the Minister without delay after the planting of the replacement tree that the soil has been prepared and the tree has been planted and of the location where the tree was planted, and

(iii) that specifies the number of replacement trees of a type set out in column 1 of the schedule that will be planted, the location at which the trees will be planted and the type of each tree that will be planted.

5. The payment to an applicant of compensation ordered in accordance with these Regulations is subject to the following conditions:

(a) the applicant must comply with any undertaking referred to in paragraph 4(h) that the applicant has given;

(b) the applicant must keep books and records, accompanied by supporting documents, that are necessary to substantiate the information contained in the application for at least three years after the date on which the replacement trees of a type set out in column 1 of the schedule are planted; and

(c) the applicant must make those books, records and supporting documents available on request, within the period during which they must be kept, for inspection or audit.

6. An applicant may fulfil an undertaking to prepare soil and plant replacement trees during the period referred to in subparagraph 4(h)(i) by preparing the soil and planting the replacement trees after the end of that period if

(a) there were exceptional circumstances beyond the applicant's control that prevented the applicant from purchasing tested trees or certified trees during that period; and