Ritz takes swipe at CWB; says plebiscite irrelevant

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WAYNE.GLOWACKI@FREEPRESS.MB.CA Federal Agriculture Minister Gerry Ritz speaks to reporters in Winnipeg Wednesday after his speech.

FEDERAL Agriculture Minister Gerry Ritz took some open-handed swats at the Canadian Wheat Board in a speech to the board members of the Grain Growers of Canada in Winnipeg on Wednesday.

The day after the CWB announced its intention to hold its own non-binding plebiscite, the minister did not hide the fact he was not impressed with the move.

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‘It’s important that the CWB gets negotiating with government and industry partners to become a viable option’ — Stephen Vendervalk, president of the Grain Growers of Canada

Asked how much value he would place on the results of that plebiscite, he said, "Little to none."

Ritz and others members of the Grain Growers let it be known they believe the CWB should be figuring out a strategy for the future in an open market, rather than spending time and money on a plebiscite that is not likely to change any outcomes.

"Again, we ask the board to roll up their sleeves and work with us not only in the best interests of the farmers who want choice, but in the best interests of those who continue to support the board," Ritz said. "Farmers who wish to pool their grain and employees who wish to remain at the board deserve leadership, not defeatism."

Ritz has made it clear the legislation that will end the wheat board's monopoly will be introduced this year.

Current legislation requires a producer plebiscite to make such a change. But Ritz said the Tory majority victory in the last election was indication enough that the government is within its rights to change the legislation so a farmer vote will not be required.

Ritz reiterated his government's contention that there would be a role to play for the wheat board when its monopoly is dissolved.

"But this is not a blank cheque," he said. "Any future entity must present a strong business case that shows mid- and long-term viability."

Later in the day in another part of town, Ralph Goodale, former Liberal minister in charge of the wheat board, along with lone Manitoba Liberal MP Kevin Lamoureux, chimed in with their support for a fair and impartial vote.

They said it was "nonsensical" that the CWB could remain equally available and effective just for those who want to pool their marketing efforts voluntarily.

Ritz and the other supporters of the open market believe the wheat board would still be able to play an important role for Prairie farmers without operating as a monopoly.

Wheat board chairman Allen Oberg has said since it does not retain earnings, it does not have the capital resources necessary to become a competitive force in the grain-handling business.

On Wednesday, Ritz said it would not be out of the question for the federal government to stake the CWB so it could operate independently.

"We would not rule anything out at this juncture," Ritz said. "But it would not be a blank cheque."

The Grain Growers of Canada is an Ottawa-based organization that represents commodity growers' associations from Atlantic Canada to B.C., including the Western Canadian Wheat Growers, who are strident advocates of a free and open market.

It wants the wheat board to figure out a way to stay in business after it loses its monopoly.

Stephen Vendervalk, president of the Grain Growers, said, "We know legislation is coming. It's important that the CWB gets negotiating with government and industry partners to become a viable option."

Blair Rutter, executive director of the Western Canadian Wheat Growers, acknowledged there are farmers on both sides of the debate.

"When we move to a marketing choice environment it should allow those farmers who still want to market collectively the opportunity to do so," he said.

martin.cash@freepress.mb.ca

Gerry Ritz: myth-buster

In a speech to the Grain Growers of Canada, federal Agriculture Minister Gerry Ritz dispelled several myths that he said have been perpetrated by what he calls "the usual suspects":

Myth 1 -- The Canadian Wheat Board was formed in 1943 when farmers were forced by law to sell through the CWB, as opposed to the notion it was formed by voluntary producer action.

Myth 2 -- Some claim the monopoly was put in place by farmers or for farmers. "Last I checked, when I join an organization that represents me, I decide whether to do so," Ritz said.

Myth 3 -- Ritz said it's incorrect to say farmers are the only ones who pay for the CWB. He said the federal government bailed it out to the tune of $80 million in 2003.

Myth 4 -- Contrary to what critics have said, Ritz said he believes the CWB has value outside of the monopoly.

Myth 5 -- Will farmers lose control of the grain trade? Ritz says no, the successful marketing of other agricultural commodities shows that won't be the case.

Myth 6 -- Ritz said there has been fear-mongering over job losses if farmers are given marketing freedom. He said there will still be as much grain grown and other players will need to beef up their staff.

Republished from the Winnipeg Free Press print edition June 30, 2011 B6