AGRI Committee Report

DISSENTING OPINION BY DICK PROCTOR FROM THE NEW DEMOCRATIC PARTY

It is stated in the Committee's Report, on page 8, that "Canada cannot compete with the U.S. or EU treasuries." The New Democratic Party disagrees completely with this statement. Canada certainly does have the financial resources to compete with the United States and Europe. Rather, the Canadian government has decided it does not want to compete.

At a time when signatories to the Uruguay Round of GATT were asked to lower their support payments to agriculture by 20%, Canada chose to reduce its support to Canadian agriculture by more than 60%. Government officials have told this Committee that Canada could increase its support by more than $2 billion without risking any form of retaliation from other countries.

Given these facts, it is obvious that the statement "Canada cannot compete with the U.S. or EU treasuries" is unsustainable.

The estimated budget surplus for this year alone is forecast to be $10 billion. The federal Finance Minister forecasts a $95 billion surplus over the next 5 years.

It is a matter of priorities. Governments in the United States and Europe have decided that food security and a viable agricultural sector are critically important to the economies, social security and stability of their countries.

The Government of Canada has decided, however, that our surplus should be spent on priorities other than supporting agriculture at an adequate level.

The argument that a country like Italy, for example, has the financial resources to support its farmers, but Canada does not, is simply illogical. According to OECD figures, Italy's debt in 1998 was 107.5% of its GDP, compared to Canada's 60.9%. Further, the federal government's own 1999 Economic and Fiscal Update forecasts that Canada's debt will decline to 46.5% of GDP by 2004-05. This is close to the G-7 average. With a $95 billion surplus on the horizon, and our debt to GDP ratio declining, we certainly can afford the $1.3 billion that the provinces of Manitoba and Saskatchewan are requesting in trade equalization payments.

Canada could compete if our government had the will. By the government's own figures, we have the money. What the government does not have is the will.

By saying that Canada cannot compete with the EU and U.S. treasuries, is the Committee not conceding that it therefore falls to Canadian farmers to compete with these treasuries?

In conclusion, there is no evidence presented in this report to substantiate the phrase "Canada cannot compete with the U.S. or EU treasuries" on page 8. Consequently, because the phrase is completely unsupportable, it must be removed.