June 9, 1999 For Immediate Delivery
Canadian Wheat Board Minister Ignores Value-Added Industry in Saskatchewan
"Ralph Goodale will not support farmers involvement in value added processing"
Ottawa – Garry Breitkreuz, Official Opposition Agriculture Critic, was extremely disappointed with the comments from Canadian Wheat Board Minister, Ralph Goodale, during a meeting June 8, 1999 with the House of Commons Standing Committee on Agriculture. Goodale came before the committee to discuss the Canadian Wheat Board’s role in value-added processing in Western Canada. "Mr. Goodale failed to recognize that the Canadian Wheat Board’s policy is hurting the expansion of value-added processing on the prairies, as is the case with the Prairie Pasta Producers," stated Breitkreuz.
The Prairie Pasta Producers is a farmer owned co-operative that wants to establish a pasta processing plant in Western Canada; however, the policy of the CWB is holding up the expansion of this $125 million operation. Under the current CWB policy the Prairie Pasta Producers would have to go through a buy back scheme that would force this co-operative to buy durum wheat at an inflated price.
When questioned by Breitkreuz, about the Canadian Wheat Boards affect on the development of value-added industry in Saskatchewan, Minister Goodale blamed the lack of development on the provincial government. Here is the direct quote from Ralph Goodale: Obviously, Saskatchewan is, indeed, lagging behind. That has to do with a variety of factors that have chronically plagued the agricultural sector within Saskatchewan and I think it is a very legitimate question as to why there has been this surge in Manitoba, surge in Alberta and a lesser improvement in Saskatchewan. That discrepancy is an area, that I think, does demand serious attention. I think it's significant to note that federal policies across all three provinces are the same. There may well be some provincial deviations that are particularly the root of that problem.
"Mr. Goodale never addressed the direct concern that the CWB is hurting a farmer’s ability to get involved with value-added processing on the prairies. He continually deflected the problem to the CWB Board of Directors who do not have the authority to change the legislation that would allow for closed co-operatives like the Prairie Pasta Producers to be exempt from the jurisdiction of the CWB. Goodale and the federal government are responsible for changing the legislation that deals with the Canadian Wheat Board. For Goodale to say that it is the board of directors’ responsibility is a cop-out," concluded Breitkreuz.
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