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FEDERAL BUDGET | APPROVAL<br />

Changes to grain act proceed<br />

Budget goes to Senate | Canadian Grain Commission funding to decline<br />

BY BARRY WILSON<br />

OTTAWA BUREAU<br />

<strong>The</strong> government’s mammoth budget<br />

bill, with its changes to the Canadian<br />

Grain Commission, was<br />

approved and sent to the Senate in a<br />

raucous House of Commons vote last<br />

week.<br />

Final approval could happen as<br />

early as this week before Parliament<br />

adjourns for a Christmas break that<br />

stretches into late January.<br />

<strong>The</strong> Senate agriculture committee<br />

already has completed and endorsed<br />

proposed changes to the Canada<br />

Grain Act, and the overall budget bill<br />

of more than 400 pages is expected to<br />

pass quickly in the Conservativedominated<br />

chamber.<br />

<strong>The</strong> bill sets up the grain industry<br />

for higher user fee charges while ending<br />

traditional mandatory services,<br />

including inward inspection<br />

between prairie elevators and terminals.<br />

Government funding for the grain<br />

commission will decline sharply and<br />

most of its funding will come from<br />

industry service payments.<br />

<strong>The</strong> system to guarantee grain handler<br />

payments to producers will<br />

switch from the current bonding<br />

system to a mandatory insurance<br />

model.<br />

Chief commissioner Elwin Hermanson<br />

told the Commons agriculture<br />

committee Dec. 5 that the commission<br />

changes are part of an historic<br />

grain sector policy overhaul that<br />

includes ending the CWB single<br />

desk.<br />

“<strong>The</strong> grain sector is at a pivotal<br />

juncture when public policies and<br />

regulatory structures need to keep<br />

pace with rapid changes in the marketplace,”<br />

he told MPs a day after the<br />

budget vote, which led to swearing<br />

and near fisticuffs on the floor of Parliament.<br />

<strong>Western</strong> Canadian Wheat Growers<br />

Association chair Gerrid Gust said<br />

that while recognizing the regulatory<br />

victories, the organization now has<br />

its sights set on other changes that are<br />

needed to help industry efficiency.<br />

He told MPs the government<br />

should follow these steps:<br />

• Outlaw strikes and lockouts in the<br />

railway system. “In our view, rail<br />

services should be deemed an<br />

essential service.”<br />

• End union rules at the Port of Vancouver<br />

that stop workers from<br />

loading grain if it rains more than<br />

five millimetres in a day. It is considered<br />

a safety hazard and delays<br />

loading of waiting ships. “We<br />

understand that ships load grain in<br />

the rain in Portland, Oregon, and<br />

around the world,” Gust said.<br />

“<strong>The</strong>re is no need for Canadian<br />

farmers to be put at a competitive<br />

disadvantage.”<br />

• Introduce tough legislation,<br />

expected this week, to force railways<br />

to meet service standards for<br />

shippers.<br />

Meanwhile, Hermanson warned<br />

against arguments from some<br />

lobby groups that outward inspection<br />

at terminals sending grain to<br />

export should also be made voluntary.<br />

Unlike inward inspection, outward<br />

inspection helps guarantee customers<br />

of the quality and identity of the<br />

grain they are buying, he said.<br />

Outward inspection fees charged to<br />

the industry must increase as part of<br />

cost recovery, he added, but that is<br />

not a reason to make them voluntary<br />

at industry discretion.<br />

Several prairie grain groups that<br />

support deregulation said industry<br />

should have a choice about whether<br />

they want the service.<br />

Hermanson said mandatory outward<br />

inspection was cancelled in the<br />

United States in the 1970s, “and they<br />

had a wreck.” Mandatory U.S. outward<br />

inspection was reinstated.<br />

NEWS THE WESTERN PRODUCER | WWW.PRODUCER.COM | DECEMBER 13, 2012<br />

“We just have to be very cautious<br />

that we don’t tamper with what has<br />

given us our Canada brand at the current<br />

time,” he told MPs.<br />

He said the commission is now sifting<br />

through the results of consultations<br />

on the proposed new fee structure,<br />

which will be implemented<br />

Aug. 1. <strong>The</strong> new rules will be<br />

announced soon.<br />

Many interveners said the government<br />

proposal to cover only $5 million<br />

of the commission budget as a<br />

public good should be sharply<br />

increased to lower industry costs.<br />

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15

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