Speaking in Parliament last week about the Harper government’s legislation to kill the Canadian Wheat Board (CWB), I listed four reasons why I would vote against it:
1. It eliminates democratic producer control over the CWB. It fires all producer-elected directors. The Board will be run by 5 hand-picked Conservatives. There is no accountability to farmers, no right to vote on anything.
2. It cripples the CWB in going after higher prices in premium markets. All sellers of Canadian wheat will have to settle for the lowest common denominator everywhere as determined by an open-market in which multiple-sellers naturally push prices down. The loss to farmers is estimated at about $500 million a year.
3. It gives complete control over grain handling and transportation to the railways and grain companies. No one has a mandate to stand-up for farmers on issues like producer-cars, short-line railways, producer-owned terminals, deficient rail service or excessive freight rates.
4. It hands a huge freebie to the United States. The Americans have always hated the CWB because it beats them in most markets. But now it will be gone, and Canada gets nothing in return – no guaranteed access to the US market, no end to country-of-origin labeling, no exemption from US protectionism, nothing. Canada has unilaterally disarmed!
Now, here’s another reason.
Existing Canadian grain companies naturally want to take over the $6 billion business the CWB used to run. That’s normal corporate behavior. They will “enhance shareholder value” for their owners (not farmers).
And then what will happen?
Humongous international grain corporations (Cargill, ADM, Con Agra, etc.) will make corporate takeover bids.
Company executives in Canada will get generous bonuses and golden handshakes, while total control shifts to places like Minneapolis, Minnesota and Decatur, Illinois. And Canada’s “brand” in the grain business will be gone.
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