Hon. Robert Black: Honourable colleagues, I rise today to applaud the innovative and progressive work of Canada’s agriculture and processing sectors, and to highlight the red tape limiting industry’s innovations.

I recently met with representatives of Dairy Distillery, the producers of Vodkow. Many of you may be aware of this amazing and great-tasting vodka produced using dairy processing by-products. This Almonte, Ontario, business is well-known throughout Canada for its excellent spirits, but also for pivoting from making Vodkow during the COVID-19 pandemic to producing hand sanitizer, a significant amount of which they donated throughout the region and province.

This organization has taken an innovative approach to waste reduction by using dairy permeate surplus to produce ethanol. It’s innovative, progressive and an excellent addition to Canada’s economy. However, fellow senators, the government’s lack of support for innovation is clearly apparent for the Dairy Distillery and many other companies across Canada. Due to the lack of commitment to small businesses and the ever-growing changes, rules and regulations placed on Canadian business, known as red tape, Dairy Distillery has been forced to move to produce ethanol in the United States, and they are using U.S. dairy permeate surplus to produce this ethanol.

The current U.S. administration has offered significant subsidies under the Inflation Reduction Act, which now is costing Canadian innovation and ingenuity. Though Dairy Distillery has acknowledged there are Canadian markets to establish an ethanol production operation here in Canada, it simply cannot find a competitive avenue to exist in this country. So they’ve settled in Michigan.

Senators, I’m concerned about the current government practices. Valuable businesses like the Dairy Distillery worked to support Canadians in times of crisis — they produced hand sanitizer for us. Now, in the climate crisis, they’re producing 2.2 million gallons of cleaner ethanol each year in partnership with a dairy co-op, which is calculated to displace 14,000 tonnes of carbon. That would mean a 5% reduction in the amount of carbon produced by that co-op. The plant will be powered by methane produced in the ethanol production process as well.

This eco-friendly process aligns with the green ambitions of this country and this government, yet they are forced to move across the border, and the U.S. will reap the benefits of the 2.2 million gallons of ethanol.

Colleagues, we must continue to foster the interests of green enterprise. Climate change is real, and the Canadian government needs to take priority action to encourage businesses to establish within our country.

I thank the Dairy Distillery for its hard work for Canadians, and hope that soon there will be equal opportunity for them to innovate here in Canada. Thank you. Meegwetch.

Hon. Robert Black, Chair of the Standing Senate Committee on Agriculture and Forestry, presented the following report:

Thursday, June 1, 2023

The Standing Senate Committee on Agriculture and Forestry has the honour to present its

ELEVENTH REPORT

Your committee, which was authorized by the Senate on Tuesday, April 26, 2022, to examine and report on the status of soil health in Canada, respectfully requests supplementary funds for the fiscal year ending March 31, 2024.

The original budget application submitted to the Standing Committee on Internal Economy, Budgets and Administration and the report thereon of that committee were printed in the Journals of the Senate on February 16, 2023. On February 16, 2023, the Senate approved the release of $36,220 to the committee and on May 16, 2023, the Senate approved an additional release of $128,620 to the committee.

Pursuant to Chapter 3:05, section 2(1)(c) of the Senate Administrative Rules, the budget submitted to the Standing Committee on Internal Economy, Budgets and Administration and the report thereon of that committee are appended to this report.

Respectfully submitted,

ROBERT BLACK

Chair

(For text of budget, see today’s Journals of the Senate, Appendix A, p. 1758.)

Hon. Robert Black: My question is for the Honourable Senator Gold, the Government Representative in the Senate.

[English]

Senator Gold, earlier in the chamber I mentioned the great entrepreneurship and charity of organizations like Dairy Distillery. Not only are they supporting and growing Canada’s economy, they are giving back in times of need and pitching in to support the greening of Canada. Despite their hard work, the company continues to be inhibited by red tape and the lack of governmental support in expanding their work.

As a result, Dairy Distillery has begun construction on an ethanol production facility using dairy permeate to produce some of the greenest ethanol in North America. For every tonne of permeate they process into ethanol, they displace 1.2 tonnes of carbon. They’ve identified 50,000 tonnes of available permeate in Eastern Canada that, if converted to ethanol, would offset 60,000 tonnes of carbon a year.

[Translation]

The thing is, they’ll be building their plant in the state of Michigan.

[English]

This Canadian company has had little government support or any level of regulatory assistance, and could only financially succeed in the United States with support from programs like the Inflation Reduction Act.

[Translation]

If Canada can’t be competitive for its small businesses, we will lose Canadian businesses to the United States.

[English]

My question, Senator Gold, is: How will the Canadian government continue to support Canadian businesses that are competing with companies in the U.S. being supported by the American Inflation Reduction Act, and what will your government do to reduce regulatory red tape that forces Canadian companies out of the country, taking innovative progress and countless jobs with them? Thank you, meegwetch.

[Translation]