AGRI Committee Report

LIST OF RECOMMENDATIONS

RECOMMENDATION 1

The Standing Committee supports a redefined mandate of the CGC as more in line with the practical reality of the Canadian grain industry and it recommends that any eventual bill clearly protect the interests of grain producers.

RECOMMENDATION 2

The Standing Committee recommends modern governance structure for the CGC’s executive level and the appointment of a single President or CEO supported by three Vice-Presidents. The Committee also recommends that the CEO hold office during pleasure for a term of five years.

Furthermore, the Standing Committee recommends that, because of the intrinsic nature of the grain industry, a working knowledge of the industry should be a criterion, in addition to managerial and other skills, to be considered in the appointment process of a CEO.

RECOMMENDATION 3

The Standing Committee recommends the establishment of an independent Office of Grain Farmer Advocacy composed of six Commissioners deployed regionally.

Furthermore, the Standing Committee recommends that the Office be permanent and be funded to perform adequately its role of defending, in the same manner all across Western Canada, the interests of all grain producers in disputes with other stakeholders, including the CGC itself. Finally, the Office should report directly to the Minister of Agriculture and Agri-food,

RECOMMENDATION 4

The Standing Committee is in favour of optional inward inspection, and recommends sufficient funding so that the CGC can maintain efficient and timely services for both producers and smaller handlers who need such services for transactional purposes.

RECOMMENDATION 5

The Standing Committee supports pilot projects in contracting out services for grain inspection, but recognizes the absence of strong factual data on the advantages and the costs,

In that context, the Standing Committee recommends that Agriculture and Agri-Food Canada take advantage of the first three years of the CGC reform to conduct a cost-benefit analysis on contracting out services.

RECOMMENDATION 6

In order to offer a benchmark for a cost-benefit analysis on contracting-out services, the Standing Committee recommends that the Canadian Grain Commission receive adequate funding to improve its services, particularly regarding the flexibility on authorizing overtime when specific delivery conditions are required to satisfy foreign buyers and protect Canada’s reputation.

RECOMMENDATION 7

The Standing Committee recommends that kernel visual distinguishability (KVD) be abandoned, and be replaced by a system based on farmer’s declarations or affidavits supported by science-based mechanisms of quality control. The Committee also recommends that farmers’ declarations be coupled with producer and industry monetary penalties to be introduced in the Canada Grain Act.

RECOMMENDATION 8

The Standing Committee supports the proposed increase, to about $40 million, for R&D funding in the grain industry, and also supports a separate appropriation for the Grain Research Laboratory (GRL). Furthermore, the Standing Committee recommends that the government conduct a study to determine if the GRL would be better located, and become more independent, under Agriculture and Agri-Food rather than under the Canadian Grain Commission.

RECOMMENDATION 9

The Standing Committee recommends that the government review all the CGC infrastructure costs, including costs related to overtime and other individual services necessary for commercial transaction, and establish which ones may deserve to be defrayed by the taxpayers of Canada, so as to ensure the long-term sustainability of these services.

RECOMMENDATION 10

The Standing Committee supports the concept of an independent arbitrator (appointed by the Minister of Agriculture and Agri-Food), and recommends that the government consider amalgamating the functions of the arbitrator in the Office of Grain Farmer Advocacy. Further, the Standing Committee recommends that the government re-evaluate the level of responsibility a reformed CGC should carry in the future. (see chart in recommendation 3)

RECOMMENDATION 11

The Standing Committee recognizes the necessity of contractual security and supports the concept of a clearinghouse, or other models such as the Ontario’s Grain Financial Protection Program. However, the Standing Committee believes that such an important risk management tool requires further investigation and therefore recommends that the federal government report back to the Standing Committee, prior to the tabling of a new grain legislation, on the various models that could be implemented for protecting grain farmers.

RECOMMENDATION 12

The Standing Committee recommends that the Canadian Grain Commission facilitate and maintain access to producer cars, and that CGC’s inward inspection on producer cars be maintained.