February 14, 2008

  

Canadian Government plans to end CWB barley monopoly

 

 

The Canadian government plans to move swiftly with legislation to end the Canadian Wheat Board's barley monopoly powers, the agriculture and agri-food minister said Wednesday (February 14, 2008).

 

Agriculture Minister Gerry Ritz said the move follows the CWB's continued refusal to discuss changes to its barley marketing monopoly power in Western Canada.

 

"On Jan. 29, I chaired a meeting which included every link in the barley value chain, western provincial government officials and the Canadian Wheat Board itself," said Ritz, who is also the minister responsible for the CWB, during a media teleconference. "The clear direction from that meeting was that the CWB must come forward with a clear and viable road map to work toward barley marketing freedom."

 

Ritz said after that meeting the CWB asked for another meeting to discuss progress in which the CWB delegation admitted it had no mandate to discuss the barley issue at all.

 

Currently CWB is refusing to discuss any mandates and maintains that it has no ability to offer greater market flexibility for western Canadian barley producers, which the minister said is "blatantly false."

 

As an example, Ritz said the CWB has the power to offer exemptions on export licenses, which they now do on a case- by-case basis.

 

"The CWB has refused to explore any alternatives," he said.

 

He acknowledged that if there is a spring election called, the legislation will be stalled.

 

"If there is an election, that means the CWB has sufficiently stalled the inevitable and will live until after the election when the Conservative government comes back with a majority, at which point there will be major changes," Ritz said.

 

If there is no spring election, he said the legislation will be tabled within the first week parliament resumes sitting after the February break, which would be roughly 10 days from now.

 

Ritz also said the CWB would be able to survive in a dual marketing barley system.

 

"The CWB tells everyone how powerful they are ... so why would they not survive?" he said. "The CWB constantly tells producers what a wonderful job they are doing out there, why would that stop?"

 

The CWB will still have access to western Canadian product and while it may have to pay more, the company will still be able to meet any sales commitments, he said.

 

The Canadian government is appealing a ruling that struck down the Conservatives' attempt to implement marketing choice for western Canadian farmers by a cabinet decree in early 2007. The Federal Court of Appeal tribunal will begin hearing arguments Feb. 26.