Why?????????

[carebear300]

I see that the wheat board has requested an increase in the initial price for wheat. Why should it take six to eight weeks to get approval? I thought that the wheat board had taken responsibility for financing the initial payments. If that is the case why should they need gov't approval? Charlie have patience just don't undeerstand. Have a Happy Easter everyone.

[charliep]

Please consider the following an explanation, not justification.

Because the federal government/taxpayer is on the line for any deficit in the CWB pools, every recommendation for CWB payments (initial, adjustment, interim, final) has to be approved by the government/feds. The process is the CWB highlights the need to Ottawa. Ottawa then turns its market analysts loose on it to make sure the increase is warranted and based on their recommendation, the federal cabinet then allows the CWB to make the change. The process has being going on since the beginning of time (or at least the birth of the CWB) and takes 6 to 8 weeks. Could it be done faster? Yes but not with the current checks and balances.

Did go to CWB district meetings and one of the themes was the loss of government guarantees via commitments that have already been made under WTO. A positive for the CWB in the new world of no government guarantees and therefore no responsibility back to the taxpayer will be the ability for the CWB board of directors and operations to make these decisions on their own. The question is then what type of a contingency fund including how, where the money comes from and finally, what changes are made so the CWB can manage pooling risk better (shorter pooling periods, cash pricing, etc.).