J. Weisgerber: I want to raise a number of
Peace region issues today, particularly related to the grain industry.
As the minister is well aware, we had the wettest fall in history
last year. About 65 percent of the crops remained in the fields
over winter; those that were harvested were harvested on incredibly
wet field. That resulted in a lot of soil damage which needs to
be repaired before a crop can be planted again. The loss to farmers
and to the community is in the tens of millions of dollars. The
value of the crops left in the field was estimated in the area
of $45 million -- a significant part of the community's income.
[2:45]
The response from government has been to provide $1.2 million
in a ten-year fund for agricultural
diversification. One should never, I suppose, be critical of money
that comes into the area. But, quite obviously, it was an inappropriate
and inadequate response at the time, and it continues to be.
I was quite forthright in my assessment of that at the time the
offer was made, and there's been
nothing that's happened since then that would change my mind.
About six weeks ago I had the
opportunity to sit in the minister's office with a number of officials
to discuss the possibility of a spring that was not conducive
to an early harvest and to replanting of fields harvested. It
was suggested at that time that I was being pessimistic.
My pessimism was not misplaced. The wettest fall in history has
been followed by an incredibly wet, late, cold spring. Most of
the grain remains unharvested; most of the fields remain unplanted.
So the $45 million loss that we saw last year is going to be further
compounded this year because, in fact, the grain hasn't been harvested
in many cases. The grain that was harvested was harvested too
late for farmers to be able to replant their crops, and in many
cases even fields that were harvested last year have ruts left
in them and have been too wet to allow for any cultivation, never
mind planting of spring crops.
So having kind of laid out the situation as I believe it is today
-- and I haven't for a moment
exaggerated the situation; the situation is at least as bad as
I've described it over the last couple of
minutes -- I would like to start discussions around the ministry's
response to this situation by hearing from the minister his analysis
of the situation, his understanding of the crisis that exists
in the grain community in the Peace, perhaps to hear from the
minister what response he sees the ministry
making in light of the very unsatisfactory results of this very
cold, wet spring.
The very pessimistic "what if" that I laid out in his
office six weeks ago has indeed happened. Where do we go from
here? I was told six weeks ago: "Let's wait and see; maybe
we'll get a warm, hot, dry spring, and all the crops will come
off and be replanted." Well, it hasn't happened, so I now
look to the minister for a response to the "what if"
question.
Hon. C. Evans: Firstly, just sort of for the
record, I think it's true what the hon. member says.
Somebody might have said his view is pessimistic, but he knows
it wasn't me. I didn't say it and
didn't suggest that it was. I just thought, in case this turned
out to be a mailer, I'd make that point.
Secondly, the reason why the hon. member had a meeting in my office
-- and we've talked both here and in the Peace in the last year
-- is because we have been attempting, I think, to address this
issue with some coordination between representatives of the area
and this ministry.
The hon. member asks for the minister's view of the situation
and for my response. Firstly, the view
of the situation is largely as the member describes it, although
somewhat worse in two respects. Last year, for the first time
in a long time, both prices and soil conditions in the spring
were suggestive of a bumper crop saleable at a price that would
make money. That led many people who had seen drought conditions
and low prices in recent years -- in fact for a long time -- to
make a business plan for last year that suggested that they seed
and fertilize, with heavy input costs, in the hope of recouping
some losses that they had experienced earlier in this decade.
It was a logical assumption and led lots of people to acquire
credit for those input costs, which is rumoured to be payable
at the time of harvest or to be contracted at 30 percent interest
in case of failure to pay it at the time of harvest.
The weather then deteriorated -- and here it's sort of hard to
describe, because we're not there and
it's hard to imagine. It deteriorated in such a way that, while
the crop did in fact mature, ground
conditions made it impossible to harvest the crop without destroying
the land or destroying the
machinery. In order to make that point, growers there supplied
me with a video to show me what
working the mud looked like, but they also took me to see brand-new
machinery -- machinery that
ought to have lasted ten years -- partially wrecked within a season
in an attempt to remove a crop
from land too soggy to work.
Now, the necessity to remove the crop was because so much was
riding on it. That's in terms of
people's ability to make the kind of investments that they'd had
to make for the future and also
because of the kinds of investments they had made, either in machinery
or input costs, based on the
crop.
The adequacy of the government's response is hard to measure.
There's an irony going on here, I
think, in that it appeared to me that people who voted for the
hon. member in the Peace tended to
think that the government's response was reasonable, and people
who voted for me in the Peace
tended to think that government's response was totally inadequate.
I think both things are true.
If you interpret the government's appropriate response as being
the state intervening to assist a
region in time of disaster and make them whole, then the government's
response was wholly
inadequate. If you assume that the correct government response
is to be an agent of change -- to
attempt to assist people to make different decisions in future,
more appropriate to the market or to
the weather conditions or to their own decisions -- then the government
response was appropriate
and maybe even creative. I tend to be of the former camp, and
yet I am minister in an era when the
latter decision is more appropriate to the fiscal situation that
government experiences.
Also, as the hon. member knows, I am minister at a time when the
response in the Peace is actually
pretty much in keeping with our response around the province to
similar issues in this fiscal year. I
would cite greenhouses on Vancouver Island, floods in Creston
in my own constituency, the crash of the biggest potato grower
in the interior in my own constituency -- all due to outrageous
weather
conditions, and all situations in which the government has been
unable to respond in the traditional
government way of making the farm community whole again.
In terms of the hon. member's question about what we do with this
spring situation, given that his
pessimism may in fact come true -- farmers may not be able to
harvest last year's crop. . . . Firstly,
as the member knows, we did not go to the Peace with our $1.2
million in isolation; we went to the
Peace to encourage federal and municipal governments to work with
us within the context of their
fiscal ability and their responsibility to contribute, as well.
That resulted in the federal government
deciding to make arrangements for unharvested grain last fall.
It also meant that the federal
government operated other programs with which it is involved in
a way, to attempt to respond to the crisis. I actually think that,
in the main -- at least until recent months, when the federal
government began to run for office rather than govern -- last
fall the federal government did as well as they could at assisting.
The net result was that a good deal of money was pumped into the
Peace at a time of travail.
I should back up and say that we had quite an intense meeting
-- the kind that you don't have in
Victoria but you do have in a rural hall somewhere -- in a college
in the Peace, largely on the issue of crop insurance. The government,
of course, provides crop insurance in order to allow farmers to
make a business decision to insure against situations exactly
like this. So when I sat up and said, "We provide crop insurance,"
the farm community was articulate in saying to me: "Yes,
you provide crop insurance, and the nature of that insurance is
actually so lousy that only about 3 percent of us buy it."
Is that right -- 3 percent? No, 30 percent buy it.
Interjection.
Hon. C. Evans: That's right. That's why I'm not
the Minister of Finance. At least, I have the sense
to ask, however.
So we put a whole bunch of energy, between last fall and this
spring, into trying to fix what the
farmers told me was broken, resulting in a situation where this
year more than twice the number of
grain farmers are buying crop insurance. We also expect that last
year's program may very well pay
out $3.5 million against last year's crop.
[3:00]
The other concern expressed to me was that the way that crop insurance
is administered might result in people being forced to harvest
last year's crop at the moment that they're required to be on
the land putting in this year's crop, leading them to suffer two
losses in a row instead of one. We went to the advisory committee
for crop insurance in the Peace and asked them for an appropriate
cutoff date for people to purchase this year's crop insurance
and to get the crops in -- and to actually pick the target date
in discussions with the people. I instructed our staff to make
sure that our inspectors on the ground made subjective decisions
in terms of those folks that have to write the crop off -- writing
it off and allowing it to be burnt in time to get next year's
crop in the ground.
That's a long answer, because I actually think that we made a
fairly complex response. But if the
question inherently is, "How come you didn't come forward
with $45 million -- or some substantial
part of $45 million -- to make the people whole?" there's
a very short answer, which is that
government doesn't have $45 million. As inadequate as that may
sound here, in the hall in the Peace
there wasn't a soul there who would have doubted that government
didn't have $45 million. In fact, I would suggest that while the
people there were really articulate in their desire to say to
me, "We
need the money," they were more articulate than anyone who
works here at saying: "We also know
you don't have it."
J. Weisgerber: First of all, let me assure the
minister that I'm far more interested in finding a
resolution to the difficulties of the farmers and the difficulties
faced by the Peace River community
than I am in developing a mailer. So my purpose in coming here
is entirely focused on the needs of
the people that I represent. Whether they voted for me or didn't
vote for me makes not a whit of
difference to me after the election. So when farmers who are known
supporters of mine come and
take one point of view and those who voted for the party which
you represent take another, I feel
obliged to represent the interests of farmers generally, and I
genuinely try not to differentiate between those.
We're going to talk about this for a little while, I think, and
I don't want to spend a lot of time
dwelling on last year. I think that the response from government
was inappropriate, and we disagree with that. The question that
is front and centre with me now is that we are at the sixth day
of June. The crops mostly have not been planted. Twenty percent
of the crops have been planted at a date when most farmers believe
they've reached the cutoff for all except possibly canola or grain
feed. So the possibilities that were discussed in your office
have in fact come to happen. So now the question is. . . . Rather
than wait until this fall or next spring when the crunch will
hit, I'm suggesting -- and I want to do it in an open and amicable
way if we can -- that we say that the problem we saw last year
is going to be exacerbated by the time farmers are faced with
planting a crop in 1998.
If only 20 percent of the crops are planted, regardless of how
good the crops are or how good the
prices are this year, most farmers are going to be facing a far
more difficult situation in terms of cash
flow and the ability to plant a crop next year.
I'm now trying to move forward, to think about the issues that
happen next year, and I know from
my years around here that if we don't start moving in that direction
today, the answer will be
precisely the same as it was last year: "Well, there's nothing
in the budget for it." I'm suggesting to the minister that
there is a problem now. That's not a speculation as to whether
there's going to be a
financial crisis in the Peace, whether or not that's going to
occur. With the loss of last year's crop, in
large measure, and the fact that crops have not been planted in
any significant way, it suggests to me that that's already occurred.
The minister suggests that he sees the new role of government
as being an agent of change, and I
have some sympathy with that approach. But when the minister was
in the Peace, one of the things
he did was go to meet with the group organized during the 1992
drought crisis -- the PRASPS
organization -- to tell them that there was no more funding for
them. So these agents of change don't seem to have the kind of
horizon or the kind of vision that perhaps one would look for
in an
administration that was seeking to fundamentally change the direction.
There's no doubt that the
money -- the $1.2 million that I referred to earlier -- will very
likely be used in large measure for field trials, variety trials,
etc. That's a useful enterprise and no doubt a productive enterprise,
but that's not going to be an agent of significant change; that's
not going to change the face of farming. It may change the variety
of wheat or oats or barley or canola that a farmer chooses to
plant, but I suspect that's a bit less dramatic than what is perhaps
envisioned in making change.
The minister cited a number of examples of crises in other areas
of the province -- other industries
and other sectors. Let me say for the record that the government's
response to Evans Forest
Products was quite dramatically different than the government's
response to the farmers in the Peace. If the minister wants to
argue with that, I'd be happy to listen to the argument. But I'll
tell you, I believe -- and all of those very sober, wise farmers
that he met with at the college believe -- that the government
had a far different set of standards for the people of Golden
and Evans Forest Products than they had for their industry. If
you want to dispute that, fine.
For the greenhouses, for the flooding, at least there's a provincial
emergency program. Again,
perhaps the response was inadequate. But I'll tell you, I think
the response in terms of dollars in the
pocket for losses suffered was significantly more in each of the
examples that the minister used
compared to the example of a farmer in the Peace country.
Again, I want to underline that I think the second shoe has fallen.
When we met with the farmers at
the college, one of the things that we both came away with was
the fact that most farmers said: "I'm
okay this year. I'm going to make it. I'm going to be able to
get myself through this fall '96 crisis."
And that was an observation that anyone would make. I would suggest
to you that those same folks are going to find it much, much more
difficult to sustain two years in a row, either with crops left
in the field or significant acreages unplanted.
Finally, before I look to the minister for a response, I think
that while officials in the area and perhaps officials within
the ministry recognize. . . . The Peace and this issue are not
homogenous. It's not 20 percent of the crops in every community
and in every section of land that remains unharvested. It's not
only 20 percent of the crops across the Peace that are planted.
There are areas -- north Rolla, Doe River -- where the crops were
harvested and in large measure replanted. There were other areas
to the west of Dawson Creek -- Sunrise Valley, Sunset Prairie,
Groundbirch -- where almost no crop was harvested last year and
almost no crop will be planted this year.
It's a disservice to the people, the individual farm families,
to think that you can simply statistically line these things out
and say: "Gosh, they got half their crop off. They've managed
to get 20 or 30
percent of their acreages planted again. They're going to be eating
hamburger instead of steak this
winter, but they're all going to make it through." That's
just not the way that weather patterns and soil conditions in
the Peace have caused the hurt to be distributed. It's not evenly
distributed across the region. There are communities in the area
that have been incredibly seriously hit, and there are others
that have suffered hurt, but to a far lesser degree.
So I do believe that something more than a contribution to diversification
will be required before the
1998 crops are planted again if we are going to see a farm grain
industry in the Peace that continues to have the kind of strength
that it has exhibited over the last 40 or 50 years. This is a
once-in-50-years occurrence at the very best.
Hon. C. Evans: First I'll respond to the question
about PRASPS. The member is correct that there
was $100,000 left in PRASPS to spend and that the government took
the money back. Government does that. I've observed that government
does that a lot. That's the exact reason why it seemed to me that
the $1.2 million in actual money that people could put in the
bank and draw down on their own, and that the people controlled
so government couldn't fail to deliver it, or change its mind,
or run upon hard times, was probably ten times more valuable than
the annual budgetary promise that PRASPS represented. In fact,
I kind of figured, since the PRASPS decision was made before the
$1.2 million, that the $1.2 million was an effort to address precisely
that anomaly -- that unfortunate anomaly.
Now, the second issue is: what are we going to do about the land
that doesn't get planted? Well, 70 percent of the farmers have
actually applied for crop insurance, and it's my understanding
that crop insurance will pay out -- in the case of the disaster
that the member described -- $20 an acre for land unplanted, if
the land is unplanted because of the inability to get on the land.
I don't really want to suggest that that's a panacea either, although
it does recognize that the function of crop insurance is to allow
people to make business decisions to protect themselves against
crises.
So that's bit of an answer, or at least a structural answer, to
what the government's response is to the other shoe dropping.
The member is correct that he and I both heard people say. . .
. On more than one occasion, individual farmers would say: "Well,
actually I'm all right. I had some money saved in NISA; I have
a job on the side; I actually got some of my crop in. My debt
levels will absorb this. But my neighbour or my friend. . . .
I know people who will lose their farm."
What I hear the hon. member saying is that this year, there's
a possibility that it will stop being a
third-party concern, where everybody knows somebody that's in
a jam and move to be a situation
where the people themselves are in crisis. So I guess what I'd
like to do is ask you, so that I can
consider your thoughts on the subject: what did you come here,
as the representative, to propose
that I do? Surely your constituents have said to you, regardless
of what they thought of our response last year: "Here's what
we think you ought to do." And I'd like to hear it.
[3:15]
J. Weisgerber: I'm going to suggest to you a
number of solutions that we both heard last year. One was that
money would be made available on either a prime or a no-interest
basis for replanting
crops, because I think that may well be an issue that has to be
addressed in the spring of 1998.
I'm coming to the minister to suggest now that the budget process
start to consider and accommodate the needs that are going to
be very clearly identified for next spring. I'm suggesting: "Let's
look at what's going to be necessary in order to make sure that
farmers next year -- recognizing that this year is going to be
a serious crisis in terms of planting, harvesting, sales, etc.
. . ."
We heard a number of suggestions. The minister has heard it; the
minister's staff have heard it. I can
spend some time here trying to recall some of the precise programs,
but I would suggest to the
minister most specifically that he start now to look at having
the money available for an appropriate
response next spring. Ten months from now, farmers are not, in
large measure, going to have the
money necessary to plant a crop and to buy the inputs, this fertilizer,
the seed and those things that
go with it. That's a prediction that I believe is based not only
on supposition but on the reality of
where the Peace country is on June 6 or June 7 -- whatever day
it happens to be.
Maybe I'll let the minister respond to that, because I do want
to get on to the crop insurance. That
was the next item that I wanted to talk about. If the minister
is asking what I propose, I'm not
proposing a bunch of grants, a bunch of handouts. I don't think
anybody has ever asked for that. But I do believe that there is
going to be a credit crisis in the Peace next year, and I'm hoping
that the minister will start now. I don't expect him to make an
undertaking other than to do whatever it is he is prepared to
commit to attempt to do or to undertake to do. I don't want to
have us say in April of 1998: "Well, gee, the budget has
already come down and we didn't plan for the fact that we're going
to need this money, so of course our budgetary process didn't
accommodate it." I'm attempting to use what little experience
I have to say that this time around you have a ten-month lead
on what you need to have available come budget time next year.
Hon. C. Evans: I would be pleased to work on
that idea with you between now and next spring. I
don't think either of us have any idea of whether or not we would
be successful, but I felt when I was in the Peace that the issue
of input credits was the largest single impediment to people being
able to solve the problems themselves. When you have to solve
the problem yourself at 30 percent interest, it's basically like
gambling for a living. So I think your idea is good, and I'd be
pleased to work on it with you.
J. Weisgerber: Well, I think that's as good a
response as not only I but also the farmers could hope for today.
I want to clarify now about crop insurance, because I think there
are some misconceptions around
crop insurance. I think it's an area where statistics can tend
to be a bit misleading. I don't suggest that someone is deliberately
misleading; it's just that the crop insurance has changed quite
dramatically.
The basic crop insurance is very inexpensive. I think it's in
the neighbourhood of $100 to $150 per
farm or $150 per crop, a commodity -- something like that. It's
relatively inexpensive, and one
would predict a major increase in participation in that program.
But the reality is also that that basic
coverage provides for 60 percent of production to be insured at
80 percent of the projected market price. So what you're really
talking about is coverage to a maximum of 48 percent of crops.
And that is. . . . It's a basic coverage, and I guess it's not
a bad coverage for $100 or $175. But, at the end of the day, it
isn't going to provide the kind of insurance that we might anticipate
having on our automobile or on our home to provide us with protection
against the loss.
I want to get clarification, before I get too far into that issue
of coverage, about the statement the
minister made earlier about crop insurance paying $20 an acre
if weather prevents planting. I wonder if, perhaps before we get
into these other things about premiums on crop insurance, etc.,
if the minister can clarify for my benefit -- I'm sure the farmers
understand it -- how that crop insurance works, and how it would
be applied in the situation we're discussing with respect to the
Peace country this year.
Hon. C. Evans: First, I want to say that the
hon. member can certainly be excused if he doesn't
understand it. It took me three minutes of asking questions to
make sure I had it right, but exactly
what I said is true. Tier 1, which is basic insurance, which is
$100 per crop per farm. . . . You pay
your $100 and by March 15 in a given year, you have to declare
to crop insurance how many acres you intend to seed. Now, if you
say that you're going to seed ten acres and pay your crop insurance
by March 15, and then are unable to seed that ten acres and the
date by which you can seed anything passes and crop insurance
comes and certifies that in fact you couldn't because of weather
conditions, then you have $200 coming.
Now that I've just said that to the hon. member, I'm going to
turn around and ask staff to nod yes or no. Is that exactly right?
That's generally right, which is as close as I get.
There are a couple of other things that I need to say. Firstly,
the hon. member pointed out that you're getting 60 percent of
80 percent and it's really 48 percent. We're talking basic crop
insurance here, and the biggest criticism. . . . I'm in the front
of the room, and there are 200 people in the room and they're
all saying to me: "The thing is broken because it's crop
insurance, not disaster insurance, and here in the Peace, we need
disaster insurance. We need insurance that all of us can afford
-- not just the richer of us or the more gambling of us, but that
everybody can afford -- that will kick in in case nothing happens,
in case we are wiped out, so that we don't lose our farm."
They interpreted crop insurance to be a product that you go buy;
you go take it off the shelf.
You know, the hon. member talked about car insurance. That's right.
You go buy your car
insurance; you want to cover your whole car. But you make that
decision. When you buy basic car
insurance, you just cover the other driver. You have the option
to buy various kinds of car insurance. Well, that's what the farmers
think crop insurance is. It's an entrepreneurial thing. "I'm
a business person. I get to decide. I get to get off the shelf
the kind of insurance I need to cover the kind of crop I want
to grow."
But disaster insurance is something that we can all afford and
that will cover us all. Hon. member,
those are exactly the kinds of changes we made over the course
of the winter so that we would
come to March 15 this year, with people being able to buy in at
a very nominal cost in case the
second shoe fell.
J. Weisgerber: Just to add to the confusion,
in reviewing the press release announcing the crop
insurance -- the December 3, 1996, press release -- it suggests
that there would be a premium of
$100, plus $75 for each crop. So it goes on and on in terms of
being a program. . . . I'm not being
critical at all. It's just that crop insurance is very, very complicated,
and I guess it will remain so.
I don't want the minister to think I was being critical of the
basic coverage. What I was drawing to
the attention of anyone who might read these debates is that to
say that last year 30 percent of the
farmers had crop insurance and that this year 70 percent have
basic crop insurance, and therefore
we've more than doubled the participation in crop insurance, is
not a very good comparison to
make. That's the only point I wanted to make with respect to basic
crop insurance.
I will ask one other question. Given this experience, I would
expect that in future, if I were a farmer, I would be very optimistic
in March about the number of acres that I was going to plant if
I lived in the Peace. I wonder if that is just a feature of the
program. Are you limited in any way to
declaring. . . ? Is there something that would inhibit someone
from being particularly optimistic about their spring planting?
Hon. C. Evans: The hon. member might be right,
but there are two things here mitigating against
manipulating the program. Firstly, $20 is nothing; $20 is a very
small amount of money. No one
would not seed an acre of ground in order to make $20. Secondly,
we have people who go out and inspect crop damage or disasters.
They have to be able to take somebody out and show them that,
in fact, they didn't seed this acre. This acre isn't making them
any money, because of some reason on the ground, and the inspector
has to be able to see it. If every single year, you listed 100
percent of your acreage that you intended to seed in order to
make the $20, that would be fine, but then you'd have to be able
to take the inspector out and show them the 50 acres you couldn't
seed because it was too wet.
J. Weisgerber: That's fair enough. I raise the
point for this reason. Time and time again, we've
heard from farm organizations, individual farmers and ministry
officials that one of the reasons crop
insurance doesn't work is that people start to farm for crop insurance
rather than for their products,
and therefore farm insurance becomes increasingly expensive, premiums
go up, and then people
don't buy the coverage, because their neighbour is farming crop
insurance -- as the saying goes. So
whenever I see a new program, I start to wonder how someone would
go about farming this
particular program. So I ask the question, and I have an answer.
I guess there's no point in me
belabouring that.
What I want to do now is talk about the so-called plus coverage
-- that is, a farmer, having decided to buy the basic insurance
now has the choice, as the minister so eloquently described, or
the opportunity to come in and buy additional coverage. As I understand
it, one of the changes in crop insurance is that the premium for
the additional coverage is now payable on filing of the
seeded-acreage report on June 21, whereas previously an application
for insurance was included
when the seeded-crop report was made, but the premium wasn't payable
until such time as the
farmer harvested the crop and had the cash available to pay the
premium.
[3:30]
So one of the changes to crop insurance is to move the premium
payment on the additional coverage up from harvest time to planting
time. Of course, given the conversation we've just had, that change
couldn't have come at a worse time for farmers in the Peace. I'm
wondering. . . . I know that the minister has been lobbied by
B.C. Grain Producers and others to extend the payment, and even
to offer to finance at government rates, rather than at some usury
rates, the payment of that premium until there was some cash flow
in the fall. Has the minister responded?
Hon. C. Evans: Well, first, let's make it clear
that I think the member and I are talking about the
same thing. The $100 per farm and $75 per crop basic coverage
is not what the member is worried about, because pretty much everybody
can afford that out of their grocery bill, or something like that.
So we're covering off this basic $20 an acre at a cost that everyone
can afford. The issue the member is raising is the various kinds
of coverage that you can buy by choosing to cover individual crops
or to cover a higher percentage around your farm or to cover against
hail. Indeed, we ask for them to pay for it up front.
Now, let me tell you my experience as minister before they ever
made this change. One of the
biggest issues I dealt with in crop insurance was an individual,
actually in my own constituency, with
a history of signing up for crop insurance and not paying for
it if he got the crop off, and then
changing the name of the crop insurance applicant next year to
another member of his family,
applying for crop insurance and not paying for it if he got the
crop off.
In your previous question, the hon. member pointed out that people
tend to denigrate the program if the program supports people who
farm the program instead of farming the ground. Since insurance
is really a product that covers you from the time you put it in
the ground to the time you harvest it, and you don't need it after
that -- you harvest the crop, you don't need that product. So
what we've really said is that you're buying something that's
for a period of time, so maybe you should pay for it during that
period of time, instead of actually waiting until the year when
you crash and then saying: "Well, okay, I'll pay for this
year's crop insurance, because I actually intend to collect on
it this year, never mind the previous five years."
Hon. member, we're not saying: "You put it in the ground,
and you're going to have to pay us on the day you put it in the
ground." We're saying that the government's rate, far from
being usurious, is 90 days interest free -- which is almost to
the fall before we even start charging you interest. So I would
suggest that you're at least 50 percent of the way through the
period of time that you're trying to cover before you actually
have to pay us anything. Not only that, the farmers themselves,
I think. . . . You're right, people are saying: "Well, why
don't you change the program and make it more like the old way?"
But those very same people go to the coffee shop and say: "You
know, Jack here is farming the program instead of farming the
crop." We're trying to change the program so you can't do
that. You actually have to farm the ground.
J. Weisgerber: Well, if there's 90 days, that
takes you through to September 20, I think -- July,
August, September 20. The grain producers are suggesting that
October 31 is a more likely date at
which they will have harvested. I mean, September 20 just takes
them to the middle of harvest at the very best. So I'm looking
for and hoping that there will be some response to the grain producers
saying: "Well, you're going to have 90 days free interest
-- if that's what the deal is -- and for the next 45 days we're
going to carry you at 5 or 6 percent or something like that."
I don't think you'd find anybody argue very vigorously with you
over that.
[S. Orcherton in the chair.]
I think there are ways to deal with the kinds of problems the
minister describes. The crop insurance
could certainly be a charge against the land, and you simply don't
get insurance until you've paid the
last premium. I'm not particularly interested in that debate,
if the minister wants to pursue it. I'm just
saying that given that the next 24 months in the Peace is probably
the worst possible time to change
the payment date for crop insurance, if you can find some way
with 90 days interest-free and a
nominal interest charge through to November 1, I expect that we'll
hear a very good, very positive
response from the people in the Peace.
I assume by the lack of response that that's what we can anticipate
will happen.
Two issues I want to cover with you. One is the issue of what
is referred to by the Peace River
regional district as endemic weed control. I don't know if that's
exactly the way I would put the
words together, but the problem that exists here is that the province
owns road allowances, hydro
rights-of-way -- although I think it's a problem to a lesser degree
-- road rights-of-way, Crown
lands, riparian lands along rivers, etc., that are infested with
weeds. They are infested to the degree
that none of the agencies would permit a private landowner to
maintain their lands in the condition
with respect to weeds that public lands are maintained.
The province has said to the regional district: "Well, we're
not going to look after them anymore.
That's your problem." Effective 1998 we simply are not interested,
as I understand it, in participating in weed control on the lands
we own. At the same time, legislation permits the regional district
to hire somebody to go in with a swather and take out a crop,
if the farmer doesn't control those same weeds on their property.
So it seems to me quite an incredible double standard that government
takes with respect to weed control, and I wonder if the minister
has any response.
Hon. C. Evans: Staff think the percentage of
the total cost in the Peace that used to be contributed
by the province is approximately 16 percent. The province has
withdrawn that 16 percent. We've
withdrawn our funding to the regional district to deliver the
program.
First, let me say in complete sympathy that that's an unfortunate
event. Secondly, the hon. member
suggests that the Crown is operating under a double standard here
-- I think those might even have
been his words -- because there are weeds growing on Ministry
of Highways rights-of-way and the
like, and the ministries aren't looking after their land.
If that's the case, then I think it's highly unfortunate. The
way the regional district operates, they can
go and spray your land if they have to, and then they can get
the money off your taxes, but since the
Ministry of Highways doesn't pay taxes, they can't do that. If
in fact there's a double standard with
provincial ministries not looking after land that the provincial
ministries are responsible for in the
Peace, exacerbating that 16 percent into a much higher number,
then I would ask the hon. member
to go home, take some photographs and come back, and you and I
will go visit each and every one
of those ministers and make the point that their ministry has
to be looking after their land at least as
well as municipalities and private landowners are being asked
to.
J. Weisgerber: I appreciate the undertaking.
I'll take the minister up on it.
Just to reinforce the urgency, the Peace River regional district
has adopted a resolution to abandon
noxious weed control in 1998 unless there is participation from
government. So once again, if that
happens, the group of people that will pay the price are the adjacent
landowners. No matter how
hard they try to keep their land weed free, weed seeds will simply
blow in out of the ditches, etc.
What we will have succeeded in doing as government, in the larger
sense, is moving the responsibility from the province to the regional
government and back to the individual, who has the misfortune
-- or the good fortune in the Peace -- to have a road running
past their property. As people look at the roads, they may well
start to view them as misfortunes, rather than the traditional
good fortunes. But the minister is giving me an undertaking, and
I will follow up on that.
The final issue that I want to touch base with the minister on.
. . . Over the last number of years,
probably almost as many years as I've been in Victoria, I've had
a discussion with the Minister of
Agriculture around the forage seed initiative.
Hon. C. Evans: Before we get to forage seed,
I just want to address this question about the
municipality abandoning their spraying program.
It is thoroughly appropriate that municipalities be involved in
weed control. In fact, that's the way it is all the way across
western Canada. We are not the only agrarian economy in western
Canada, and in all the other provinces there is a municipally
driven program. In the main, I think it's even 100
percent. Is that true? They nod. Yes, that's true.
What isn't okay is if the municipality walked away from the program.
I think that would be the
anomaly. That would be the only place in western Canada where
municipalities decide not to have
some responsibility for what's going on.
What I'm committing to is that the province has to behave like
a good landlord. We ask the
municipalities to do so; we have to do so. We have to look after
our rights-of-way so that the
problem doesn't move as weeds from government land onto private
land. But to unilaterally walk
away from the private land issue would be creating a whole other
problem.
J. Weisgerber: I just want to make a point, and
I know the member for Shuswap would like to get into the debate,
because I suspect this covers far more than the Peace region.
The only response I would have for the minister is that my suspicion
is that the province -- whether it be Alberta, Saskatchewan or
Manitoba -- makes contributions to municipal programs, and regional
governments in turn supply the service, if you like. I don't believe.
. . . I will find out -- and I'm sure the minister will before
we go at this again -- how much each province contributes to their
municipalities for the purpose of weed control, because that's
the real issue.
In looking at a related issue in Alberta, municipal or regional
governments -- county governments --
provide road services, but they provide them with money that comes
by way of a grant from the
ministry of transportation and highways. The regional district
in the Peace region -- and, I expect, in
others -- provides weed control programs. They just feel that
the 16 percent the province was
contributing was insufficient to cover weed control on public
lands owned by the province and to
withdraw from that entirely was unfair. I think the minister has
agreed with that.
[3:45]
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