National Post
June 23,2008
by Lorne Gunter
The Wheat Board should remain silent
On Friday, a federal court judge ruled unconstitutional a two-year-old ban by the federal government prohibiting the Canadian Wheat Board (CWB) from spending farmer's money advocating for its continued monopoly over western grain sales.
This is a misguided decision.
All farmers from British Columbia's northeastern Peace Country across the vast prairie breadbasket to Lake of the Woods are required to sell their wheat and barley only to the CWB, unless it is destined for animal consumption.
Those who attempt to sell directly to other buyers offering higher prices have been subjected to pre-dawn raids of their farms, seizures of their crops and trucks even imprisonment and repeated strip searches.
In 2006, in an attempt to win Western farmers more freedom to conduct their business as they see fit, the Harper government initiated a number of extra-Parliamentary measures designed to break the CWB's monopoly (which, technically, is a monopsony -- one buyer, many sellers, rather than one seller and many buyers).
Without a majority in the House of Commons to change the CWB law, the Tories tried, instead, to introduce market freedoms through the back door. This was only ever a second-best move, and it was fraught from the start with political and legal risks.
The board decided to oppose the government, even though it is a not-quite arms-length branch of the government, and to spend farmers' money on propaganda efforts on behalf of its own survival.
The Harper government ordered it to stay out of the debate and to refrain from diverting money from grain sales -- money that should have gone into farmers' pockets -- to its self-serving lobbying campaigns.
Mr. Justice Roger Hughes ruled on Friday, however, that because the board is controlled by farmers (an assertion that is only partially true), it was a violation of farmers' Charter rights to forbid the CWB from being an active participant in the national debate over its future.
It is a fallacy that the CWB is "farmer-controlled." Of the 15 members of the board of directors, only 10 are elected by farmers. The other five are appointed by Ottawa.
Over time, if the Conservatives stay in power long enough, they will certainly appoint five directors who favour their pro-market innovations. Those five would then be able to get together with the three or four pro-market directors typically elected by farmers to break the monopoly.
Then just watch the reaction of CWB supporters. Now, while the five federal appointees are mostly pro-board Liberals, the balance works in the board supporters' favour. So they are quick to insist the Harper government cannot change a thing about the monopoly because that board represents the democratic will of farmers. But when the balance shifts against them, they will be the first to cry that the appointed directors are helping to subvert farmers' wishes, even though the board would be no more or less "farmer-controlled" than it is now.
More importantly, though, what of the farmers who wish to be released from bondage to the board, from indentured servitude to the Western wheat masters? What about their Charter rights not to see a substantial portion from the proceeds of their grain sales diverted into ad campaigns and lobbying efforts directed at keeping them shackled to the CWB?
The Harper government issued its gag order against the CWB in part because it recognized that there are at least as many farmers who want out of the board's grasp as there are who want it continued. So board spending on lobbying amounts to robbing those who want out to pay for efforts to keep them in.
"How can the Charter possibly allow a government institution to champion the political views of one group of farmers over another?" asked Mike Bast, chair of the Western Canadian Wheat Growers. Friday's ruling permits the board to use pro-market farmers' funds against them, he explained.
There is an easy solution: Give farmers true control over the CWB, but make participation in it voluntary. Ensure the farmer-controlled board is making decisions in the best interests of farmers, by forcing them to compete for farmers' grain, rather than use government coercion to force farmer participation. Otherwise, self-interested political decisions will always be as high on the board's priority list as maximizing returns for farmers.
The CWB has always claimed it gets more for farmers collectively than they could get for themselves individually. Let it prove it by taking away its monopoly.
lgunter@shaw.ca
June 23,2008
by Lorne Gunter
The Wheat Board should remain silent
On Friday, a federal court judge ruled unconstitutional a two-year-old ban by the federal government prohibiting the Canadian Wheat Board (CWB) from spending farmer's money advocating for its continued monopoly over western grain sales.
This is a misguided decision.
All farmers from British Columbia's northeastern Peace Country across the vast prairie breadbasket to Lake of the Woods are required to sell their wheat and barley only to the CWB, unless it is destined for animal consumption.
Those who attempt to sell directly to other buyers offering higher prices have been subjected to pre-dawn raids of their farms, seizures of their crops and trucks even imprisonment and repeated strip searches.
In 2006, in an attempt to win Western farmers more freedom to conduct their business as they see fit, the Harper government initiated a number of extra-Parliamentary measures designed to break the CWB's monopoly (which, technically, is a monopsony -- one buyer, many sellers, rather than one seller and many buyers).
Without a majority in the House of Commons to change the CWB law, the Tories tried, instead, to introduce market freedoms through the back door. This was only ever a second-best move, and it was fraught from the start with political and legal risks.
The board decided to oppose the government, even though it is a not-quite arms-length branch of the government, and to spend farmers' money on propaganda efforts on behalf of its own survival.
The Harper government ordered it to stay out of the debate and to refrain from diverting money from grain sales -- money that should have gone into farmers' pockets -- to its self-serving lobbying campaigns.
Mr. Justice Roger Hughes ruled on Friday, however, that because the board is controlled by farmers (an assertion that is only partially true), it was a violation of farmers' Charter rights to forbid the CWB from being an active participant in the national debate over its future.
It is a fallacy that the CWB is "farmer-controlled." Of the 15 members of the board of directors, only 10 are elected by farmers. The other five are appointed by Ottawa.
Over time, if the Conservatives stay in power long enough, they will certainly appoint five directors who favour their pro-market innovations. Those five would then be able to get together with the three or four pro-market directors typically elected by farmers to break the monopoly.
Then just watch the reaction of CWB supporters. Now, while the five federal appointees are mostly pro-board Liberals, the balance works in the board supporters' favour. So they are quick to insist the Harper government cannot change a thing about the monopoly because that board represents the democratic will of farmers. But when the balance shifts against them, they will be the first to cry that the appointed directors are helping to subvert farmers' wishes, even though the board would be no more or less "farmer-controlled" than it is now.
More importantly, though, what of the farmers who wish to be released from bondage to the board, from indentured servitude to the Western wheat masters? What about their Charter rights not to see a substantial portion from the proceeds of their grain sales diverted into ad campaigns and lobbying efforts directed at keeping them shackled to the CWB?
The Harper government issued its gag order against the CWB in part because it recognized that there are at least as many farmers who want out of the board's grasp as there are who want it continued. So board spending on lobbying amounts to robbing those who want out to pay for efforts to keep them in.
"How can the Charter possibly allow a government institution to champion the political views of one group of farmers over another?" asked Mike Bast, chair of the Western Canadian Wheat Growers. Friday's ruling permits the board to use pro-market farmers' funds against them, he explained.
There is an easy solution: Give farmers true control over the CWB, but make participation in it voluntary. Ensure the farmer-controlled board is making decisions in the best interests of farmers, by forcing them to compete for farmers' grain, rather than use government coercion to force farmer participation. Otherwise, self-interested political decisions will always be as high on the board's priority list as maximizing returns for farmers.
The CWB has always claimed it gets more for farmers collectively than they could get for themselves individually. Let it prove it by taking away its monopoly.
lgunter@shaw.ca
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