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CWB chair addresses legislative committee

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    CWB chair addresses legislative committee

    Prepared remarks from Allen Oberg to the House of Commons Legislative Committee on Bill C-18

    Nov. 2, 2011

    Good evening. I thank you for the opportunity to address this committee. I will make some introductory remarks and then Stewart [Stewart Wells, farmer elected director for District 3, also in attendance] and I would be pleased to answer any of your questions.

    Since this committee is supposed to be focusing on the technical aspects of this legislation, I think I'll focus my remarks on Part 1 of Bill C-18, Sections 2 through 6 and Section 12, which removes the farmer-elected directors and Part 2 of the bill, which strips the CWB of its single desk.

    Let me begin by providing some context.

    Besides serving as the elected representatives for farmers in Districts 3 and 5, and myself serving as chair of the CWB board of directors, Stewart and I are also farmers. With my brother, I run a 6,500 acre mixed grain and cattle farm near Forestburg, Alberta. Like Stewart's farm, near Swift Current, and indeed like all Prairie grain farmers, the Oberg family farm is focused on quality, on producing the food that feeds the world. We are also entrepreneurial, innovative and market savvy. I am telling you that not to be immodest, but because the back story to this legislation that you are examining is that Ottawa is telling successful farmers like Stewart, my brother and me that we don't need the Canadian Wheat Board anymore, while ignoring the wishes of the majority of western Canadian grain farmers, who voted to retain the single desk. According to our minister of agriculture, the internet has somehow done away with the benefits we get through marketing together in a global grain system dominated by a small handful of giant companies.

    I know. It sounds ridiculous when you put it like that. But really, that is the argument in a nutshell. That, and if even one wheat or barley farmer doesn't want to market through a single desk system, than that system should be abolished, regardless of what the majority of those farmers want. Of course, the same "free market rules" view doesn't apply equally to all farmers. Dairy, chicken and turkey farmers can have marketing boards, fully supported by this government - for now. I say for now not to try and scare my colleagues in supply management but simply to reflect the reality that what this government promises and what it does are two different things.

    The Conservatives have won a majority and have decided this gives them the right to go ahead and make irreversible changes to Canada's grain industry without consulting farmers as they promised. For example, AAFC issued a news release on Jan. 16, 2007, in which then-minister Chuck Strahl stated: "I am announcing today that Canada's New Government will hold a further plebiscite on the marketing of wheat at an appropriate time. Western Canadian farmers have the Government's commitment that no changes will be made in the Canadian Wheat Board's role in the marketing of wheat until after that vote is held."

    Minister Ritz made a similar promise to a group of farmers in western Manitoba in March of this year, when he said the Harper government "respects the vote" of farmers who have consistently elected a majority of CWB directors who favour the single desk. There wouldn't be any attempt to impose dual marketing on the CWB unless a majority of producers voted for it, he told them, in what was described by media as a campaign-style speech. "Until farmers make that change, I'm not prepared to work arbitrarily," he said. "They [farmers] are absolutely right to believe in democracy. I do, too."

    How ironic that those who first entered federal politics on a platform of direct democracy, plebiscites and reform are now calling for the very opposite. Who needs direct democracy and rule of law when according to the government, the May 2 general election was all the consultation with farmers that was necessary. I would argue, respectfully, to this committee that a majority government does not bestow absolute power. Parliament is sovereign, but not even Parliament can disregard the law of the land because it doesn't suit a particular agenda.

    The Harper government broke the law when it introduced Bill C-18 on Oct. 18. It broke the law because it did not first conduct a vote among affected producers, as required by Section 47.1 of the Canadian Wheat Board Act, which is still the law. Ignoring Section 47.1 means the Harper government has denied all farmers their legal right to have a say on the future of the CWB - whether those farmers are big or small, young or old, organic or conventional.

    Because the government refused to hold a vote among farmers, we held our own plebiscite this summer. Almost 40,000 farmers participated. A majority of them chose to retain the single-desk marketing system for wheat and barley. Why? Because the single desk system puts more money in their pockets, it's as simple as that. You can spin this issue as much as you want, you can compare spot and pooled prices, you can shout until you are blue in the face, but nothing can change the simple economic fact that one seller of a product will always be able to command a higher price for that product than multiple sellers. That is why farmers voted to retain the single desk. But the government refuses to listen to farmers.

    I'd like to talk specifically about Part 1 of Bill C-18, Sections 2 through 6 and Section 12.

    These provisions terminate the 10 elected directors who, along with five government appointees, lead the CWB. These provisions effectively end farmers' ability to have direct control over the organization they pay for. These provisions turn back the clock to a time of complete government control. Far from putting farmers first, as this government says it is committed to doing, it puts farmers last, sidelining them in their own industry. These provisions erase all the advances the CWB has made since becoming a farmer-controlled organization.

    Parliamentary Secretary Anderson was quoted in a recent media report saying the purpose of this committee is to "focus on the future rather than go over what we've already heard".

    Well, the one thing that has not been heard by this government during this sham of a debate is the voice of farmers. I'm not talking about the special interest groups which are funded by big agri-business, who represent only a small number of farmers, but happen to have the ear of this government,. No, I'm talking about the voice of all farmers, the voice that has spoken and would speak again through a plebiscite on a clear and simple question about what they want. We held our own plebiscite and 57 per cent of farmers participated - roughly the same amount who voted in the last federal election. This turnout comes despite a concentrated effort to have farmers boycott the process. However, farmers voted in our plebiscite in record numbers and their decision is the only real mandate on the CWB, and it is a clear and strong mandate to maintain the single desk.

    This government has repeatedly attacked the process and the results but really, what they have been attacking is farmers' right to a voice. If the problem was with our process, then surely this government would have obeyed the law and lived up to its previous commitments to prairie farmers and held its own plebiscite.

    I'll conclude by asking you all to consider the future, as per Mr. Anderson's wishes. Consider a future grain industry in which farmers are reduced to bit players in a global supply chain. A future in which farmer control and farmer influence is a thing of the past. A future in which farmers' voices are silenced. A future in which farmers will not be able to re-establish a single desk wheat marketing board if they want to, because once the single desk is gone, it is gone forever.

    Stewart and I now welcome your questions.

    #2
    Oberg goes on about the govenment breaking the law. At the same time Oberg and the CWB ignore the authoritative directive and the Federal Court ruling which ordered the CWB not to spend any money promoting the monopoly. If the CWB wants to talk about respecting the law they need to demonstate that they are willing to do so. The second thing the CWB Board needs to do is listen to their own legal council, external legal council, Ralph Goodale and Pat Martin and recognize that Parlimant has the right to enact and alter laws including the CWB act.

    Comment


      #3
      <i>"what they have been attacking is farmers' right to a voice."</i>

      but rigging a plebiscite where landlords are given 3 or 4 ballots for every one a farmer gets is OK.

      No plebiscite legitimizes property confiscation, let alone one as rigged as that one.

      Comment


        #4
        What a f***ing asshole he says NO, Im talking about the voice of all farmers. What about the producers that have not produced board grains for a few years. I am sick and tired of the portrayal that cwb is virtuos, yet the private corporation is evil. Please enlighten me how these tactics are constructive.

        Comment


          #5
          Nice to see I F has come back from his EDO for
          organizing the rally on Friday All that hard work
          and no turnout I'm surprised your not on stress
          leave I suppose that will come a few days
          before Ritz kicks your ass to the curb. Enjoy your
          time at the trough I F it's ending soon.

          Comment


            #6
            Before 1998 there was a Barley plebiscite, at that time it was said, majority worshipped the board for barley. In 1998 parliament changed the law of the CWB act to say that a farmers vote is what changes the structure of the board not the gov't. The plebiscite was only for barley but parliament took it upon it's self to included wheat with out a vote of the farmers of western Canada. Now the PCLF's are a screaming and a sueing over parliament and it's power. What a bunch of hypocritical ****'s.

            Comment


              #7
              Its going to get uglier before it gets better. I'm really
              not sure what there actual strategy is. It is very sad.
              There is no reason why there should not be a cwb in
              an open market. Maybe someday I will understand the
              Oberg strategy but currently I am very puzzled.

              Comment


                #8
                It's good that Mr Oberg identified that he and Mr. Wells are actual farmers. Why stop there; why not identify just how many of those who you claim are farmers( voters )actually do farm. Mr Oberg states that a single seller can always do better than multiple sellers. Mr Oberg you are not a single seller of wheat and barley. You seem to imply that buyers will buy canadian wheat regardless of other country prices. I would suggest that countries buy canadian wheat because they can get higher quality for the same price. Better get the board to write you another speech because this one has little creditability

                Comment


                  #9
                  Maybe they should have also mentioned that Stewie has the option to market his grain as he wants, with little interference from the board other than a pittance of a buyback.

                  Comment


                    #10
                    So do you bucket.

                    Comment


                      #11
                      I was pleased to speak before this committee as well, Henry Vos did a great job as well. For those who want to watch it here is the link.
                      http://parlvu.parl.gc.ca/Parlvu/ContentEntityDetailView.aspx?ContentEntityId=8039
                      will note how it was interesting to hear from Ian McCreary, a blast from the past for sure. Also Ken Rosaasen from the U of S.



                      Thank you for allowing me to come and speak with you tonight.
                      I’d like to start by saying that western Canadian grain, oilseed and pulse producers are some of the most innovative, progressive and adaptive people I know. We’ve seen the continued growth and value added in our oilseeds and pulses and other speciality crops and now with finally with the passage of the Marketing Freedom for Grain Farmers Act I know we will see and explore those same opportunities in wheat and barley. By allowing this freedom finally, these producers see a profitable future to their businesses, and with those more prosperous rural communities.

                      But the idea of moving forward, being allowed to be progressive, innovative business operators in our production of wheat and barley, just like canola and pulses, wants to be derailed by the majority of the directors of the CWB.

                      I’d like to speak on a couple of intertwining items
                      Firstly, the total lack of listening to all farmers within the CWB jurisdiction, and what they have been telling the CWB for years, secondly how that lack of listening by a majority of this board has affected the relationship with our federal government
                      And thirdly, how these coupled with a lack of respect of their fellow directors, these single desk directors on the CWB board have grossly disenfranchised themselves from reality.

                      Firstly, failure to listen to western farmers, I’ll quickly back to 2007 when the federally run barley plebiscite results came back in favour of allowing marketing choice. Then Chair Ken Ritter commented;
                      “The results of the barley plebiscite announced today are not overly surprising. The CWB has been surveying farmers every year for the past 10 years and these results appear to be consistent with our annual findings.”



                      I’ve looked back to confirm those comments, and in the past13 years of CWB producers surveys, not once was their support for marketing barley under the single desk. Where was the listening to barley farmers?

                      Our malting sector made it clear in 2007 that there will be no new builds or investment in existing facilitates until the single desk is gone. Yet I’m happy to see that will soon be changing. I was pleased to be at Alix, Alberta yesterday, it was great to hear of RAHR’s expansion plans and their commitment to build long lasting partnerships with producers to ensure quality barley for RAHR and therefore a quality malt product to their customers. Even recent comments from Canadian cattle feeders saying that growth in varietal development, along with clearer market signals in barley will increase usage and acres once the single desk is gone. What’s next for barley? Increased food fractionation for health benefits? Perhaps higher starch varieties for biofuels?
                      I hear durum producers are also excited with a new pasta plant in the west.

                      In our producer surveys we’ve seen a growth in the numbers of younger farmers (those under 45) that want more marketing freedom. Who is going to be the producer of the future? Shouldn’t the CWB be focusing on the needs of those who will be producing the grain in to the future and working to ensure that there is a strong viable future?

                      We’ve seen farms getting bigger, with the majority of those bigger farms supporting an open market. Stats Canada figures that there are about 20,000 commercial grain producers in western Canada. So how come the past summers CWB non verified plebiscite went out to 66,000 producers? A good quote comes from Allen Oberg who was quoted as saying at the senate ag committee in 2006 - if a plebiscite is to be held - “it should be all inclusive the cwb act defines voter eligibility of any producer of the six major grains”.

                      The question of a dual market has been asked for years with results showing majority support the CWB participating in a dual market, honestly folks, farmers know what a dual market means, it means a voluntary CWB. To suggest that we don’t know what a dual market means and not allowing the dual market question on this past summer’s ballot was insulting to all producers.

                      In my three years I’ve seen a constant standoff between the majority of the board and the government of Canada. We’ve seen that with the laker purchase, spending farmer’s money on a non verified non binding plebiscite, a series of so called producer meetings where special interest groups and the Communist party of Canada were allowed to attend and spread their propaganda. And most recently with the legal challenge on bill C-18 spending more of producer’s pool account monies. I’ve seen it go as far as not allowing management to move forward and start to work into the next crop year. All along supporting their special interests, and not representing all producers, I believe these directors breached any sense of good corporate governance.

                      More and more I’ve noticed a clear disconnect between the single desk directors and the rest of the directors. I feel decisions were, in several cases, made at private meetings of these directors - with resolutions brought forth at board meetings. Even with debate and discussion I felt the decision was already made. Working more and more on their own special interests I noticed how this went deep into the organisation as well, as press releases and action plans were prepared in advance just waiting for the boards rubber stamp of approval.

                      In closing, I cannot and will not tell my neighbours how to manage their farm business and what to do with their wheat and barley, and no one should feel they have the right to tell me what to do with my grain on my farm.
                      Democracies don’t work that way.
                      Jeff Nielsen

                      Comment


                        #12
                        Well said Jeff The lack of respect to the views of
                        others has been championed by the board. They
                        chose the path that said there should never be a concession or compromise made to those that didn't
                        share their views. I do believe that that is now coming
                        back to haunt them.

                        Comment

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