44th Parl. 1st Sess.
June 16, 2022 10:00AM
- Jun/16/22 3:32:10 p.m.
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Mr. Speaker, on behalf of all of my Bloc Québécois colleagues, I, too, wish to salute Mr. Dufresne and congratulate him on his appointment.
In the House, in committee and elsewhere, Mr. Dufresne was the epitome of diligence, honesty and integrity. Whenever we had a question or an interaction with him, we could be sure that he had done his homework, knew his files, and would tell the truth.
I will not speak for very long, but I do want to extend my heartfelt thanks to him for all of the years that he has given to the House and for all of the work that he has done. Like the entire team of legislative clerks, he has worked tremendously hard.
I will end with an anecdote. Shortly before the last election was called, if I am not mistaken, the Standing Committee on Finance was sitting during the weeks of the construction holidays at the initiative of the Hon. Wayne Easter. The government had chosen not to proceed with a bill that had originated with the opposition, but that had received royal assent.
Mr. Dufresne appeared before the committee as an expert witness, and as soon as he finished explaining the role of legislators, the House and the government, that settled the matter and the government went ahead. That is another example of the profound rigour that we know he will certainly continue to bring to his new role as Privacy Commissioner of Canada.
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- Jun/16/22 7:14:16 p.m.
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Madam Chair, I want to commend and congratulate my colleague on his speech.
As my colleague said, the war in Ukraine means that there is less food globally, which is deplorable, hence the explosion that we can already see in food prices. We may be facing a worldwide shortage and famine.
At the same time, we see that our farmers here need fertilizers, which are produced primarily in Russia on a global scale. In many cases, these fertilizers were ordered, purchased and paid for before the war in Ukraine. However, deliveries are arriving now, if not a few weeks or months ago.
The government chose to bring in the 35% tax to punish Russia. However, since the fertilizers were already paid for and ordered before the war, the only ones hit by this tax are local farmers. Obviously, this is going to be reflected in the final cost, at a time of skyrocketing food prices and shortages.
What does my colleague think about this?
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- Jun/16/22 7:23:35 p.m.
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Madam Chair, the economic situation is out of control. People are worried about inflation, and rightly so. For instance, gas is at $2.24 a litre today in my riding, Joliette. This is devastating. The hardest hit are obviously low-income families whose obligations force them to drive a lot. The current reality is also really tough for businesses in certain sectors such as transportation, of course, as well as agriculture. Rising prices will help the energy transition in the long term, but will increase misery in the short term.
The cost of housing is no more encouraging. Finding available affordable housing has become mission impossible. The price of houses and condos has exploded. However, according to experts, rising food prices could soon overtake energy and housing prices by a wide margin. The world is at risk of a food shortage this year, which will lead to skyrocketing prices and a serious global famine.
The current situation is in large part a result of the war in Ukraine. Russia and Ukraine are the world's breadbasket. These two countries account for 30% of global wheat exports and 20% of global corn exports. They also export 65% of the world's sunflower oil. Russia has significantly cut back on its exports so that it can continue to feed its citizens at the same cost. As for Ukraine, its existing reserves are difficult to export, and there is a great deal of uncertainty about potential future harvests.
Food prices in Ukraine are skyrocketing, and Ukrainians could be facing a famine. For example, according to the United Nations Food and Agriculture Organization, or FAO, around half of the wheat reserves and nearly 40% of the rye in Ukraine are in war-affected areas. The damage caused by the war will reduce grain reserves and limit production and cultivated acreage for years to come.
The damage to infrastructure makes it difficult to get humanitarian aid to Ukraine and to transport the resources that can still be saved.
According to the World Bank, global agricultural commodity prices rose 41% between January and May and are still rising. During the same period, the price of corn jumped 54%, and the price of wheat jumped 60%. With its current budgets, the UN World Food Programme cannot feed as many people.
Also according to the FAO, war and climate change are the main causes of global food insecurity, in Ukraine and elsewhere. It predicts that 44 countries will require food aid in 2022, particularly in West and East Africa due to conflicts in those regions, food commodity prices, and crop failures.
Faced with the expected risk of food shortages, several countries have begun halting exports in order to strategically prioritize their own people. For instance, India stopped exporting its wheat, and then Indonesia halted palm oil exports. This food protectionism could trigger a domino effect with even more tragic consequences.
Here, as elsewhere, production costs will soar, because the price of inputs has also exploded. For example, fertilizers come mostly from Russia and Belarus. Their prices had increased even before the war. Now they have doubled or tripled. What is more, this government is still imposing a 35% tax on them, even though they were ordered and paid for before the invasion of Ukraine.
The rising cost of diesel fuel must also be taken into account. When economist Sylvain Charlebois appeared before the House of Commons Standing Committee on Finance last month, the agri-food market expert said that supply chain issues are making it difficult for farmers to plan. Their inputs are not consistently available. He also reminded the committee that last summer, western Canada, the United States and Russia experienced major droughts, while Germany experienced major flooding. The result of all this was that the 2021 crops were so poor that reserves are currently low. They were counting on 2022 to replenish their reserves, but with the war, that will not be possible. The economist also added that it was not possible to increase cropland acreage in the short term. However, he did say that the spring flooding in Manitoba is not expected to have much of an impact on the harvest, as it delayed seeding by only a few weeks.
All that adds up to significantly higher food prices in the coming months, much higher than what we are seeing now. For example, Germany is expecting grocery prices to increase by an average of 50%. Food will be 50% more expensive. It should be less than that in Quebec and Canada. That is how it is likely to play out in rich countries.
People in poor countries will likely face famine, which is why international institutions are calling for greater solidarity, especially seeing as less wealthy countries were encouraged to go into debt to get through the pandemic more easily. As a result, they are now deep in debt and will not likely have the means to import enough food at high prices.
Add to that the fact that many of them are already subsidizing basic foods to make sure their citizens can feed themselves. These countries will have to import food at high prices even as they spend more of their budget on food subsidies. African countries are particularly vulnerable.
A significant portion of crops are now traded on the stock exchange. For example, a future crop can be sold in advance and traded several times on the stock exchange. This practice can drive up the price of commodities for speculative purposes. It is a bit like oil. People take advantage of the context to drive prices up and line their pockets. This situation is a reminder of the limits of using markets.
The situation is such that food will be a major problem this year and for years to come. According to a partner with the firm McKinsey, even with an optimistic view of the crisis, things are unlikely to return to normal before 2024. The food crisis will require an exemplary demonstration of international solidarity. It also reminds us that war always has a greater impact than anticipated. Let us hope that a peaceful resolution will be negotiated to end this war, primarily for the sake of the Ukrainian people, but also to limit the effects of a food crisis that has already begun.
We have an obligation to show solidarity to combat hunger on a global scale. We also need to do more to support our farmers. Finally, we must do more to ensure global peace and do our part to limit climate change. I hope this government is taking notes right now.
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- Jun/16/22 7:32:32 p.m.
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Mr. Chair, the United Nations Food and Agriculture Organization, or the FAO, said that the current global food shortage and the current risk of famine have two root causes: the war in Ukraine and climate change.
We have a collective duty, here in the House as well, to go green as quickly as possible in order to limit upheaval and ensure greater stability over the seasons so that there are fewer crop failures due to drought, as we saw last summer. This is urgent and it is very important. Clearly, this must all take place in an orderly manner with a predictable transition. That is what the government and we, the legislators, must propose and implement.
With respect to the war in Ukraine, yes, there are energy concerns. We are seeing the repercussions in Europe. In the very near term, Canada obviously cannot magically create pipelines or infrastructure to export its natural gas or oil. That would take 10 years.
The Bloc Québécois believes that the next 10 years would be better spent going green. The planet needs it, and we have an increasing number of examples at present.
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- Jun/16/22 7:34:53 p.m.
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Mr. Chair, I thank my colleague for his question. Obviously, more needs to be done to protect our ecosystems. That includes the Great Lakes and the St. Lawrence Seaway, which provide drinking water to many communities in both Ontario and Quebec. More needs to be done. Do we need to do a better job of protecting riparian buffers? We need to consult and listen to the experts.
With respect to fertilizers, we must continue to ramp up research to improve production and quality with the resources we have, while minimizing the negative environmental impacts.
In the short term, however, our farmers are concerned about fertilizers. They ordered and paid for fertilizers from Russia before the war in Ukraine started. Since the war broke out, the Canadian government has imposed a 35% surtax that will penalize them, without penalizing Russia one bit, since it was already paid for and they were only waiting for delivery.
We have been asking the government to find a solution for our farmers. However, the government seems to be too preoccupied with other things, like passports or airports. There is no shortage of issues, but this is an important one and it should be dealt with quickly.
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- Jun/16/22 7:36:53 p.m.
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Mr. Chair, I thank my colleague from Beauce and I commend him for all his work and the positive contribution he makes to the House.
There are many things that can be done. When I tour my riding and I meet with our farmers, I am always very touched. In the agricultural sector, the women and men who put food on our tables are not, in my opinion, given enough credit by the public, by the entire population and by elected members. The first thing to do would be to recognize the essential role they play for all of us here.
If we compare the support the government provides to agriculture, Canada does half as much as the United States and three to four times less than Europe, according to the numbers from my critic colleague. If Canada is able to produce a lot with less support, then that is great, but let us never forget that agriculture is a strategic industry since it meets a basic need: feeding the population.
The sector needs recognition, which could take many forms, including real crop insurance.
The labour shortage is another issue. I was on the phone again today with the Minister of Immigration, Refugees and Citizenship's team, talking about temporary foreign workers. Then there is the tax on Russian fertilizer that was purchased and paid for before the war started in Ukraine. We have a lot to do.
I believe that society as a whole needs to be more involved to better support our farmers, who experience a lot of stress because they are isolated and drowning in work. There is nothing more important to society than the work they do, the critical work of feeding people.
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- Jun/16/22 7:39:38 p.m.
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Mr. Chair, that is a very good question.
In the 1980s, 1990s and 2000s, international institutions, such as the International Monetary Fund and the World Bank, recommended that developing countries that were struggling—the ones with subsistence agriculture that were struggling to feed their people—specialize in growing cotton, for example. They were telling these countries that they would be able to export it, generate revenue and then import their food.
At the same time, the rich countries that properly support their agricultural industries set up aid programs for these countries. When the harvest was good, the rich countries helped them by giving them their surplus crops or selling those crops to them at a low cost.
All of this led to the collapse of local agriculture in developing countries, because they were obviously not able to compete with the rich countries' donations in good years. International institutions encouraged countries to move away from this sector and specialize in export sectors. As a result, these countries have had their subsistence agriculture dismantled.
When the harvest was bad, they did not receive any aid from rich countries. The International Monetary Fund and the World Bank told everyone to grow cotton, so many countries grew cotton. Large corporations were the ones leading it, and the price of cotton collapsed. The do-gooders in rich countries and international institutions thought they were fighting poverty, but they actually made it worse. Who are we to tell those countries what to do?
They knew how to go about it. In order to receive international aid, they had to listen to the rich countries, and this made the situation worse. We have to think about that.
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- Jun/16/22 7:55:08 p.m.
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Mr. Chair, I want to congratulate my colleague on her speech and commend her for her commitment to the cause. It is sincere.
I want to clarify something. When we refer to the price of agricultural inputs, even in the Canadian market, it is all in the perspective of global production and global prices. It is pretty clear that a people at risk of starvation is about as serious as it gets, despite all the other important issues they may face.
My colleague talked about the important commitment to allocate 0.7% of GDP to international aid and the fight against hunger. I completely agree with that commitment. I deplore the fact that the government, regardless of its political stripes, never meets it.
I wonder if the opposition parties would be able to pressure the government to commit to the 0.7%. Are these the kinds of concerns that could be included in a co-operation agreement with the government?
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- Jun/16/22 8:30:12 p.m.
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Mr. Chair, I would like my colleague to elaborate on those examples and tell us how our own expertise can support and develop production in developing countries that are facing food shortages.
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- Jun/16/22 8:50:17 p.m.
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Mr. Chair, I thank the member for his speech.
My question has come up a lot in this evening's debate.
Farmers from here who bought Russian fertilizer, who placed and paid for their orders before the war, will have to pay a 35% tariff that is supposedly meant to punish the Russian economy. We agree with the general principle of punishing Russia's economy for the invasion, but in this case the Russian economy is not being punished at all because the fertilizer was bought and paid for before the war. This government is imposing a 35% tariff on farmers.
Does my colleague think the government should remove the tariff in this specific case?
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- Jun/16/22 9:07:49 p.m.
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Madam Chair, I thank the member for his very interesting speech. I have a twofold question.
I found his approach to the taxation of fertilizer tariffs very interesting. Is he in favour of lifting the tariffs on purchases made before March 2 or even on those made after? That is my first question.
My second question is this: With the expected global food shortage, more and more countries are stopping food exports. That is the case with India with wheat and Indonesia with palm oil. What does my colleague think about this food protectionism?
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- Jun/16/22 9:19:55 p.m.
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Madam Chair, I thank my colleague for his speech.
According to the Food and Agriculture Organization of the United Nations, or FAO, war and climate change are the main causes of global food insecurity.
For example, last summer, droughts in western Canada, the United States and Russia, as well as flooding in Germany, resulted in disastrous harvests. It was hoped that this year, stocks could be replenished. Now, with the war in Ukraine, that will not be possible.
What does my colleague think about that?
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- Jun/16/22 9:29:14 p.m.
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Madam Chair, I am going to come back to the same issue again, because farmers in our ridings keep asking us about it.
The fertilizers were purchased and paid for before the war broke out. They are now paying a 35% tariff that was imposed when the war started. However, the farmers had already paid for their orders. Now they have to add a 35% tax, which goes to the government and does absolutely no harm to Russia.
I want to ask the parliamentary secretary, as a government representative, why has the government still not done anything about this?
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- Jun/16/22 10:20:27 p.m.
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Madam Chair, I thank my friend from Saanich—Gulf Islands for her speech. As I have already told the House, I think it is deplorable that some members do not have as much speaking time as others just because they represent a party with fewer than 12 seats in the House. After all, the voice of the people they represent is just as legitimate and important.
The Food and Agriculture Organization of the United Nations notes that war and climate change are the main causes of food insecurity around the world. I would like my colleague to tell us more about climate change as a cause of food insecurity.
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