OTTAWA — The Harper government is moving ahead with plans to shut down the Canadian Wheat Board, even before the results of a plebiscite on the agency's future are known.
A posting on a government contracting website shows Agriculture Canada is looking for an auditor to crunch the costs associated with closing the so-called "single-desk" marketing agency.
It announces the government intends to seek an auditor to check the books and "provide reasonable assurance of the total financial impact of the repeal of the Canadian Wheat Board Act and the dissolution or winding up of the CWB after the final pooling periods (expected to be July 31, 2012)."
The contract value for the auditing work is projected at $500,000 to $1 million and only pre-qualified suppliers are eligible to bid on the work.
Agriculture Minister Gerry Ritz announced in May the government's intention to shutter the board by August of next year — a move that will require passing legislation in the House of Commons.
The non-binding plebiscite on the board's future, run by the Wheat Board, is underway now with the results to be revealed Sept. 9.
But the notice of proposed procurement posting suggests the government is proceeding regardless of the results.
Allen Oberg, chairman of the Wheat Board, says the board has already done its own analysis of the costs of shutting down using accounting firm KPMG.
"The Wheat Board doesn't cost the government of Canada anything," he said. "Now, the government is going to be stuck for costs of wind up, in the hundreds of millions."
The costs, he says, would be typical of closing any large corporation — penalties for cancelling contracts, employee severance and payments for outstanding pension liabilities.
Who ultimately pays for the closure — whatever the costs are determined to be — is an open question. Oberg says that federal government is obligated to pay.
Although he doesn't know the results of the plebiscite, he says he's heard very strong support for the board from farmers.
"The wind-up costs might be more justified if it was farmers themselves who are asking for changes."
The auditing contract requires the supplier to compile a lists of the board's assets and liabilities, determine that all potential liabilities and contractual obligations are documented and review termination clauses for staff.
Agriculture Canada said it was unable to provide a comment Thursday.
Read more: http://www.ottawacitizen.com/news/Auditors sought crunch closing costs Wheat Board/5243436/story.html#ixzz1Un00cUUH
A posting on a government contracting website shows Agriculture Canada is looking for an auditor to crunch the costs associated with closing the so-called "single-desk" marketing agency.
It announces the government intends to seek an auditor to check the books and "provide reasonable assurance of the total financial impact of the repeal of the Canadian Wheat Board Act and the dissolution or winding up of the CWB after the final pooling periods (expected to be July 31, 2012)."
The contract value for the auditing work is projected at $500,000 to $1 million and only pre-qualified suppliers are eligible to bid on the work.
Agriculture Minister Gerry Ritz announced in May the government's intention to shutter the board by August of next year — a move that will require passing legislation in the House of Commons.
The non-binding plebiscite on the board's future, run by the Wheat Board, is underway now with the results to be revealed Sept. 9.
But the notice of proposed procurement posting suggests the government is proceeding regardless of the results.
Allen Oberg, chairman of the Wheat Board, says the board has already done its own analysis of the costs of shutting down using accounting firm KPMG.
"The Wheat Board doesn't cost the government of Canada anything," he said. "Now, the government is going to be stuck for costs of wind up, in the hundreds of millions."
The costs, he says, would be typical of closing any large corporation — penalties for cancelling contracts, employee severance and payments for outstanding pension liabilities.
Who ultimately pays for the closure — whatever the costs are determined to be — is an open question. Oberg says that federal government is obligated to pay.
Although he doesn't know the results of the plebiscite, he says he's heard very strong support for the board from farmers.
"The wind-up costs might be more justified if it was farmers themselves who are asking for changes."
The auditing contract requires the supplier to compile a lists of the board's assets and liabilities, determine that all potential liabilities and contractual obligations are documented and review termination clauses for staff.
Agriculture Canada said it was unable to provide a comment Thursday.
Read more: http://www.ottawacitizen.com/news/Auditors sought crunch closing costs Wheat Board/5243436/story.html#ixzz1Un00cUUH
Comment