Contingency Fund

[LWeber]

Should the Minister of Agriculture send in the Auditor General to review the 2007/08 CWB financial reports?

Go vote:

http://fertilizerbuddy.blogspot.com/

[TOM4CWB]

Charlie,

I note the $20M from cash trading barley as another income source.

There is a real problem here.

THE BASIS.

I believe you will find the basis benefit from volumes traded through PPO contracts... are going through the pool instead of as part of PPO contracts. The CWB clearly admits the basis gains were notable... because we are required to lock in a basis... that is created out of thin air... and has been very profitable for the CWB.

Where is the accounting for the basis gains the CWB gets from PPO contracts?

If the CWB 'gives' away basis value... to grain purchasers... in a manner that is not competitive to export from the US... of DNS that is of the same intrinsic value... this needs to be resolved.

We should also know the total value of futures traded... to see just how active the CWB is... what % of the exchange trade they command... and benchmark performance.

It is a package deal... and transparency if key to understanding what is going on.

How much of the 'discretionary losses' were attributable to PPO contracts?

Does anyone have a clue?

Why exactly should PPO contractors pay for CWB 'discretionary losses'?

I wouldn't trust the CWB to be fair or equitable for a millisecond... on the proper risk management and basis accounting on these systems.

The CWB theory... of 'single desk' premiums... takes basis gains for the pools... because they believe the whole North American wheat market is at a premium BECAUSE of the CWB 'single desk'.

[Fransisco]

<b>BUSTED!!</b>

[Fransisco]

BTW- Great work chaff!

[Fransisco]

Follow up question: So what are the consequences to violating an act of parliament? If they are indeed doing things contrary to the act I would guess that would make these activities "illegal".

Maybe the Mounties should be accompanying the Auditor General.

[parsley]

One of the problems with the auditor general doing the review is that she "asks" the experts for advice on the CWB, which in the matter of the Wheat Board, means asking the CWB themselves. Beeen there and done that.

She heads straight for the CWB experts. And boy, do they give her the information they want her to follow, and ends up writing a report hand in hand with the CWB.

Several have mentioned an "outside report" might be better.

I will post on the blog hopefully tommorow and I will call you tommorow Red Baron,.. I forgot to tell you in my email reply.

Parsley

[chaffmeister]

Concerning an audit, the CWB hired a consultant a while back to review the PPOs and advise how to improve them. Apparently they hired Ron Gibson who used to work for the CWB.

Hmmmmmm - do you think we'll ever see that report?

I like the idea of an outside review - a review of the program and a review of Gibson's report.

[Fransisco]

A review is fine, I guess, but with the kind of money we're talking about here, year after year, heads should roll. The phrase "fire them all" comes to mind. The reality is they all got pay raises again this year for doing such a wonderful job. The term "clueless" also comes to mind.

But really, I want out. Time and again the Board has abused it's monopoly position and everyone a pile of money. This past year is just the latest and possibly the most egregious example.

The incompetence will not change until it has to compete. Prime Minister Ignatieff," ...tear down that wall".

(Does anybody really think Harper's still in charge)

[Fransisco]

oops, that should have read" and cost everyone a pile of money"

[TOM4CWB]

Fransisco,

Prime Minister Ignatieff," ...tear down that wall".

Who exactly, do you believe, controls CWB policy?

Goodale?

Layton?

Duceppe?

Easter?

This is a coalition government... we need cooperation in the Senate to get to square one on new legislation to change this mess.

We need Mike Duffy, Pamala Walin, Pana Merchant, the whole crew in the senate on side... to pass go and be allowed fair prices for our produce.

[Fransisco]

The only man who could get it done right now is Ignatief. If he says voluntary wheat board is the way to go, snap, it would happen.

[Fransisco]

Here is some interesting reading.

http://laws.justice.gc.ca/en/showdoc/cr/SOR-2000-69///en?page=1


(1) Subject to subsections (2) and (3), the Corporation may deduct an amount from any amount it receives in the course of its operations under the Act and credit the amount so deducted to the contingency fund established under paragraph 6(1)(c.3) of the Act, including

(a) any amount referred to in subsection 8(1) or section 33.01 of the Act;

(b) payments received from grain sold during a pool period;

(c) interest that accrues in respect of sales of grain on credit; and

(d) gains from the activities of the Corporation under section 39.1 of the Act.

(2) The Corporation may not make a deduction of an amount referred to in subsection (1) if, as a result of the deduction, a loss would be paid out of moneys provided by Parliament under subsection 7(3) of the Act.

(3) The Corporation may not deduct an amount referred to in subsection (1) and credit it to the contingency fund if, as a result of the credit, the balance of the fund would exceed $60,000,000.


Looks like from day one we were told one thing (that the pools and the PPO's would be completely separate) and the Board set it self up to do something completely the opposite.

Who enjoys being lied to? Monopoly supporters the question is directed to you guys.