MEAGAN MURDOCH (Agriculture and Agri-Food Canada): Hello, everyone.Thanks for joining us on such short notice. My name’s Meagan. I’m going to be the moderator for today’s call. On the phone line, we have Minister Ritz who will take a few minutes to deliver some remarks ontoday’s legal challenge announced by Minister Oberg. Then we’ll have time to take just a few questions because as you know,the Minister will be heading into question period very quickly. So Minister, I’ll turn the phone line over to you to give your brief remark.
GERRY RITZ (Canada’s Agriculture Minister): Thank you, Meagan. Goodafternoon, everyone. Today some of the directors of the Canadian Wheat Board put forward areckless and baseless legal challenge quite literally against farmers who want the choice in how they market their grain. It’s obvious that Mr. Oberg refuses to let go of the past and work towards building astrong future for a voluntary Canadian Wheat Board. It’s apparent thathe and his elected directors will go to any length, regardless of the damage it may cause to suit only their own ideology. The actions of Mr. Oberg are tearing down any future opportunities of a voluntary board, harming the reputation of Western Canadian farmers and creating unnecessary confusion within the industry, all of which will ultimately cost farmers money. Not only does our government have the right to change legislation, but we have the responsibility to deliver on our promises and give farmers the right to market their own grain. There’s nothing new in thearguments brought forth by the Wheat Board directors to date. Section 47-1 simply covers the commodities sold by the Board under themonopoly, not the existence of the single desk monopoly itself. Let me repeat that: Section 47-1 simply covers the commodities sold by theBoard under the monopoly, not the existence of the single deskmonopoly itself. The government maintains its view that the Parliament of Canada alone has the supremacy to enact, amend or repeal any piece of legislation, including the Wheat Board Act. This is an essential feature of Canadian democracy. That democratic feat of freedom should never be taken away from farmers. Even the NDP agree. Their critic Pat Martin said, and I quote: Our legal opinions have it that it’s a very remote possibility that a court challenge would succeed because you’re challenging one of the fundamental tenets of Parliamentary democracy. He continued by adding: Parliament has the right to overturn legislation put in place byprevious governments. The Harper government remains focused on doing what is best for our economy, and that means creating a stronger agricultural industry. To do that, the Harper government has made it very clear that marketingfreedom was a cornerstone of our many platforms. We already know that marketing freedom and an open market will attract investments,encourage innovation and create value-added jobs. On May 2nd we were elected strongly by Western Canadians on a promiseto give farmers marketing freedom. We are delivering on that promise. We tabled the Marketing Freedom for Grain Farmers Act last week, andwe remain steadfast on passing it very quickly to ensure certainty andclarity for the agricultural sector. Farmers and our economy will bebetter off because of this government’s actions. Even Mr. Oberg’s own directors are resigning because of this reckless misguided action. Sadly, today was Mr. Vos’s breaking point. Mr. Henry Vos, director of District 1, driven by a lifetime of commitment toagriculture, has been forced to step down and speak out against Mr.Oberg and these actions. Mr. Vos has said that he can no longer serve his constituents and Western Canadian grain farmers from within thisorganization. Farmers and our government thank him for his tirelesswork to improve the Board’s programs and services for the benefit offarmers. It’s unfortunate that Mr. Vos felt that his only way forward was outfrom under Mr. Oberg’s control, which he characterized as, and I quote: ideological bullying. He called the CWB’s decision this week to launch a legal challenge simply wrong. Mr. Oberg claims that he wantsto give farmers choice, whereas in fact he only wants to give the farmers who support his overbearing monopoly choice. Our government will give every single farmer in Western Canada choice.We will ensure Western Canadian farmers the freedom to choose the timing, buyer and price that suits their business plan. We will extendto Western Canadian farmers the same rights as their cousins in Ontario. We will underscore Western Canadian farmers’ right to choose whether they market their grain through a voluntary Wheat Board or individually. And we will work with the Canadian Wheat Board to makensure that a voluntary entity is a viable option for these farmers. Our government also believes that Mr. Oberg’s actions are a disservice to not only the farmers who want change, but also the farmers who wantto continue marketing through a voluntary board, to say nothing of thefarmer-centred staff at the Canadian Wheat Board itself. Our government will continue to work with those at the Canadian WheatBoard who are focused on the future and the best overall interests of Western Canadian farmers and the Canadian economy. Thank you, and I look forward to your questions.
MEAGAN MURDOCH: Great. Operator, we have time for just a couple ofquestions, so if I could get the first one, please.
OPERATOR: Certainly. The first question is from Andrew Mayeda fromBloomberg News. Please go ahead. ANDREW MAYEDA: Hi, Minister. I just wanted to ask you, do you see any risk because of this legal challenge and any other legal challenge that you might be knocked off of your August 1st timeline?
GERRY RITZ: Well the government maintains the view that the Parliament of Canada alone has the supremacy to enact, amend or repeal any pieceof legislation, including the Wheat Board Act. That’s an essentialfeature of democracy. It’s unfortunate that the directors have saw it fit to do that, as I outlined in my talking points leading up to this. They’re certainly putting a lot of other people at risk.
ANDREW MAYEDA: And just quickly as a follow-up, can you give us an update on how quickly you think the legislation will be passed andwhat tools you might use to do that? GERRY RITZ: Well the next step is to move it to a legislative committee, which will be struck in the next day or so. We’re just waiting for the opposition to come forward with the names of people that will serve on that. We are set and ready to go. We’re hopeful that we could get that in play late this week. If that doesn’t happen,it’ll be up and running next week.
MEAGAN MURDOCH: Great. Thank you very much. Operator, we’ll take another question, please.
OPERATOR: Thank you. The next question is from Harry Siemens fromSiemensSays.com. Please go ahead.
HARRY SIEMENS: Mr. Ritz, did I hear you say that the chance of avoluntary board succeeding now are greatly diminished after this challenge in the courts? GERRY RITZ: Well as you know, Harry, time is of the essence, and for avoluntary board to be up and ready to, you know, contract and offer futures and hedging and all those great things, they need to be in play sooner rather than later. As you well know, farmers spend a lot of the winter months planning the final, making the final plans onwhat they’re going to seed, how they’re going to market it, andlooking to hedge themselves. So the longer this is delayed then theless chance there is, and this is probably part of the scorched earth philosophy of the eight directors. That’s very unfortunate. MEAGAN MURDOCH: Great. Thank you very much, Minister. We have time for one more question, Operator. The Minister does have to get into the House. OPERATOR: Thank you. The next question is from Rod Nickel from Reuters. Please go ahead.
ROD NICKEL: Minister, you mentioned that your government is still working with those parts of the Wheat Board that want to develop this model. How much communication has there been between your department and CEO Ian White and the appointed directors of the Board on themodel itself?
GERRY RITZ: Well, not a lot at this point, Rod. Of course, Mr. White has his hands full in continuing to operate the Board as a marketing agency the way it’s struck. I know there are a number of people with in the Board itself that are looking forward to the day that they can continue on their jobs under the voluntary flag. We will work with them just as quickly as possible. That’s part of the problem with these legal challenges is it delays us so that we end up with less time to put this new entity in play. That’s unfortunate for all Western Canadian farmers. All of us agree that a voluntary Canadian Wheat Board can be a strong marketing agent, can be a tremendous option for Western Canadian farmers.
ROD NICKEL: So just to pick up on Andrew’s question if I can, is the time concern now that the voluntary model, sorry, the voluntary pool might not have time to get off the ground, or could it actually push back the August 1st implementation date? GERRY RITZ: I have no intention for this to change the August 1st implementation date. What it does is put in jeopardy the very viability of a voluntary entity. As I said earlier, I think this is part of the scorched earth policy that Mr. Oberg is pushing. ROD NICKEL: Thank you. MEAGAN MURDOCH: Great. Thank you very much, everyone, for joining ustoday on this phone call. Minister Ritz does have to get into Parliament, so thank you very much, Minister Ritz, for your timetoday.
GERRY RITZ: Thank you all.
OPERATOR: Thank you. The conference has now ended. Please disconnect your lines at this time. And we thank you for your participation.
GERRY RITZ (Canada’s Agriculture Minister): Thank you, Meagan. Goodafternoon, everyone. Today some of the directors of the Canadian Wheat Board put forward areckless and baseless legal challenge quite literally against farmers who want the choice in how they market their grain. It’s obvious that Mr. Oberg refuses to let go of the past and work towards building astrong future for a voluntary Canadian Wheat Board. It’s apparent thathe and his elected directors will go to any length, regardless of the damage it may cause to suit only their own ideology. The actions of Mr. Oberg are tearing down any future opportunities of a voluntary board, harming the reputation of Western Canadian farmers and creating unnecessary confusion within the industry, all of which will ultimately cost farmers money. Not only does our government have the right to change legislation, but we have the responsibility to deliver on our promises and give farmers the right to market their own grain. There’s nothing new in thearguments brought forth by the Wheat Board directors to date. Section 47-1 simply covers the commodities sold by the Board under themonopoly, not the existence of the single desk monopoly itself. Let me repeat that: Section 47-1 simply covers the commodities sold by theBoard under the monopoly, not the existence of the single deskmonopoly itself. The government maintains its view that the Parliament of Canada alone has the supremacy to enact, amend or repeal any piece of legislation, including the Wheat Board Act. This is an essential feature of Canadian democracy. That democratic feat of freedom should never be taken away from farmers. Even the NDP agree. Their critic Pat Martin said, and I quote: Our legal opinions have it that it’s a very remote possibility that a court challenge would succeed because you’re challenging one of the fundamental tenets of Parliamentary democracy. He continued by adding: Parliament has the right to overturn legislation put in place byprevious governments. The Harper government remains focused on doing what is best for our economy, and that means creating a stronger agricultural industry. To do that, the Harper government has made it very clear that marketingfreedom was a cornerstone of our many platforms. We already know that marketing freedom and an open market will attract investments,encourage innovation and create value-added jobs. On May 2nd we were elected strongly by Western Canadians on a promiseto give farmers marketing freedom. We are delivering on that promise. We tabled the Marketing Freedom for Grain Farmers Act last week, andwe remain steadfast on passing it very quickly to ensure certainty andclarity for the agricultural sector. Farmers and our economy will bebetter off because of this government’s actions. Even Mr. Oberg’s own directors are resigning because of this reckless misguided action. Sadly, today was Mr. Vos’s breaking point. Mr. Henry Vos, director of District 1, driven by a lifetime of commitment toagriculture, has been forced to step down and speak out against Mr.Oberg and these actions. Mr. Vos has said that he can no longer serve his constituents and Western Canadian grain farmers from within thisorganization. Farmers and our government thank him for his tirelesswork to improve the Board’s programs and services for the benefit offarmers. It’s unfortunate that Mr. Vos felt that his only way forward was outfrom under Mr. Oberg’s control, which he characterized as, and I quote: ideological bullying. He called the CWB’s decision this week to launch a legal challenge simply wrong. Mr. Oberg claims that he wantsto give farmers choice, whereas in fact he only wants to give the farmers who support his overbearing monopoly choice. Our government will give every single farmer in Western Canada choice.We will ensure Western Canadian farmers the freedom to choose the timing, buyer and price that suits their business plan. We will extendto Western Canadian farmers the same rights as their cousins in Ontario. We will underscore Western Canadian farmers’ right to choose whether they market their grain through a voluntary Wheat Board or individually. And we will work with the Canadian Wheat Board to makensure that a voluntary entity is a viable option for these farmers. Our government also believes that Mr. Oberg’s actions are a disservice to not only the farmers who want change, but also the farmers who wantto continue marketing through a voluntary board, to say nothing of thefarmer-centred staff at the Canadian Wheat Board itself. Our government will continue to work with those at the Canadian WheatBoard who are focused on the future and the best overall interests of Western Canadian farmers and the Canadian economy. Thank you, and I look forward to your questions.
MEAGAN MURDOCH: Great. Operator, we have time for just a couple ofquestions, so if I could get the first one, please.
OPERATOR: Certainly. The first question is from Andrew Mayeda fromBloomberg News. Please go ahead. ANDREW MAYEDA: Hi, Minister. I just wanted to ask you, do you see any risk because of this legal challenge and any other legal challenge that you might be knocked off of your August 1st timeline?
GERRY RITZ: Well the government maintains the view that the Parliament of Canada alone has the supremacy to enact, amend or repeal any pieceof legislation, including the Wheat Board Act. That’s an essentialfeature of democracy. It’s unfortunate that the directors have saw it fit to do that, as I outlined in my talking points leading up to this. They’re certainly putting a lot of other people at risk.
ANDREW MAYEDA: And just quickly as a follow-up, can you give us an update on how quickly you think the legislation will be passed andwhat tools you might use to do that? GERRY RITZ: Well the next step is to move it to a legislative committee, which will be struck in the next day or so. We’re just waiting for the opposition to come forward with the names of people that will serve on that. We are set and ready to go. We’re hopeful that we could get that in play late this week. If that doesn’t happen,it’ll be up and running next week.
MEAGAN MURDOCH: Great. Thank you very much. Operator, we’ll take another question, please.
OPERATOR: Thank you. The next question is from Harry Siemens fromSiemensSays.com. Please go ahead.
HARRY SIEMENS: Mr. Ritz, did I hear you say that the chance of avoluntary board succeeding now are greatly diminished after this challenge in the courts? GERRY RITZ: Well as you know, Harry, time is of the essence, and for avoluntary board to be up and ready to, you know, contract and offer futures and hedging and all those great things, they need to be in play sooner rather than later. As you well know, farmers spend a lot of the winter months planning the final, making the final plans onwhat they’re going to seed, how they’re going to market it, andlooking to hedge themselves. So the longer this is delayed then theless chance there is, and this is probably part of the scorched earth philosophy of the eight directors. That’s very unfortunate. MEAGAN MURDOCH: Great. Thank you very much, Minister. We have time for one more question, Operator. The Minister does have to get into the House. OPERATOR: Thank you. The next question is from Rod Nickel from Reuters. Please go ahead.
ROD NICKEL: Minister, you mentioned that your government is still working with those parts of the Wheat Board that want to develop this model. How much communication has there been between your department and CEO Ian White and the appointed directors of the Board on themodel itself?
GERRY RITZ: Well, not a lot at this point, Rod. Of course, Mr. White has his hands full in continuing to operate the Board as a marketing agency the way it’s struck. I know there are a number of people with in the Board itself that are looking forward to the day that they can continue on their jobs under the voluntary flag. We will work with them just as quickly as possible. That’s part of the problem with these legal challenges is it delays us so that we end up with less time to put this new entity in play. That’s unfortunate for all Western Canadian farmers. All of us agree that a voluntary Canadian Wheat Board can be a strong marketing agent, can be a tremendous option for Western Canadian farmers.
ROD NICKEL: So just to pick up on Andrew’s question if I can, is the time concern now that the voluntary model, sorry, the voluntary pool might not have time to get off the ground, or could it actually push back the August 1st implementation date? GERRY RITZ: I have no intention for this to change the August 1st implementation date. What it does is put in jeopardy the very viability of a voluntary entity. As I said earlier, I think this is part of the scorched earth policy that Mr. Oberg is pushing. ROD NICKEL: Thank you. MEAGAN MURDOCH: Great. Thank you very much, everyone, for joining ustoday on this phone call. Minister Ritz does have to get into Parliament, so thank you very much, Minister Ritz, for your timetoday.
GERRY RITZ: Thank you all.
OPERATOR: Thank you. The conference has now ended. Please disconnect your lines at this time. And we thank you for your participation.
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