- Member of Parliament
- Caucus Chair
- NDP
- Cowichan—Malahat—Langford
- British Columbia
- Voting Attendance: 66%
- Expenses Last Quarter: $140,733.69
- Government Page
Madam Speaker, I am extremely proud to be standing in the House on behalf of the fruit and vegetable farmers in my region of Cowichan—Malahat—Langford. My region and the Cowichan region have a long and storied history in agriculture. I would like to remind all members that the Cowichan Valley is in fact Canada's only Mediterranean climatic zone. The Halkomelem language is the language of the Quw'utsun; the Cowichan name is the anglicized version of that, and it roughly translates into the “warm lands”.
We are an agricultural powerhouse in the Cowichan region. I have been proud to call that area my home for over 30 years, and I am proud to be standing in this House in support of Bill C-280. This is a measure that has long been talked about in this very chamber, and we now have an opportunity to actually change the law. As many colleagues have pointed out, this is going to be of no cost but of huge benefit to the people it directly concerns.
I want to thank the people who have spoken before me: the sponsor, the member for York—Simcoe; the member for Kings—Hants; and the member for Berthier—Maskinongé. I have the pleasure of serving with two of those colleagues on the Standing Committee on Agriculture and Agri-Food. I have been the proud agricultural critic for the NDP since January 2018, so I know this subject very well. This is my third Parliament on the agriculture committee, and this subject has come up time and time again.
I do not want to delve too much into the details. We know that this issue matters because of the nature of the product we are talking about. Fruits and vegetables only have a tiny bit of shelf life before they have no more value. This is a unique product, and that is why we need to have this kind of a deemed trust.
It is not as though farmers, who are taking all the risk, can recoup losses by taking the product back; it is perishable in nature. We know that farmers deal with high costs. They have high input costs. It is expensive to buy machinery and erect greenhouses. In fact, almost all farmers' money is tied up in infrastructure, whether that is machinery or land. They are, in other words, land rich but cash poor.
This is a business model that is based on the tightest of margins, and anything the Parliament can do to ease up and make the payment process more guaranteed is something we should look at seriously. I am happy to say Bill C-280 would do that.
I would argue that, instead of this being just a Conservative bill, this bill is expressly non-partisan. I know the NDP has been fighting for this, as part of our electoral promise to Canadians, since 2015. Moreover, it is non-partisan by virtue of the fact that the second reading of this bill was unanimous. It sailed through committee. We had three meetings; we heard from a variety of witnesses. However, we decided as a committee to report this bill back to the House without amendments. It has the committee's stamp of approval, and I hope members in this chamber take note of that and seek to give it rapid passage.
This bill has been the subject of many committee studies. I have almost lost count of how many times, at different committees and different parliaments, we have seen a recommendation for this type of measure to be enacted by the House of Commons.
The time is now. I would like to see this bill pass through third reading, get to the Senate and start getting the traction it needs. The Fruit and Vegetable Growers of Canada, the Canadian Produce Marketing Association and the thousands of people they represent are watching us. They are waiting for action.
I will conclude my remarks by proudly saying that I will be supporting this bill, along with the NDP caucus. We look forward to its speedy passage to the other place; hopefully, it will eventually find its way to the Governor General's desk and receive the royal assent it deserves.
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Madam Speaker, I thank the member for York—Simcoe for the bill. It is clearly important that we establish this kind of financial protection for our fruit and vegetable growers.
In the agriculture committee, we learned during a recent study that oil and gas profits had climbed by over 1,000% over the last three years. Would my hon. colleague agree with me that changing the law in this way and offering fresh fruit and vegetable growers this kind of financial protection would help them stand up against the price gouging that oil companies are putting on citizens of Canada?
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Mr. Speaker, I am pleased to rise today to give a few of my thoughts on Bill C-280, which was introduced by the member for York—Simcoe. I would like to thank him for introducing this important bill.
Of course, Bill C-280 is an important bill that is going to amend both the Bankruptcy and Insolvency Act, which we will hereafter call the BIA, and the Companies’ Creditors Arrangement Act, the CCAA. Ultimately, the bill is seeking to create a deemed trust for perishable fruits and vegetables.
Let me go into a bit of background on why this particular issue is so important. For the people who are growing, harvesting, packing and marketing fruits and vegetables, we have to understand that this industry comes with a number of risks. First, there are very high costs. Second, the capital in that industry is often tied up in the farmland, the buildings, the machinery and the overhead, so we can look at the value of the company and can see that it is what is commonly termed as “land-rich, cash-poor”.
Furthermore, the challenges are exacerbated because any returns made from the selling of their produce are often delayed until that product has been sold and payment is collected all the way up the supply chain, which can be long after the farmer or another seller has passed on the product. In that whole system, there is no financial protection from losses because of buyers who have become insolvent, which adds a tremendous amount of risk to this business model. The perishability of fresh produce and the common industry payment terms make it impossible for sellers to recoup money that has been lost when a buyer goes bankrupt, and we have seen a recent example in Ontario with Lakeside Produce in Leamington.
Prior to 2014, Canada was the only country in the world that enjoyed preferential access with our largest trading partner, the United States, under its Perishable Agricultural Commodities Act, also known as PACA. That was a dispute resolution mechanism in the United States, which basically meant that Canadian produce sellers were treated on par with their American counterparts when selling to a U.S. buyer. Unfortunately, and this continues to this day, the United States removed our country's preferential access to that system because we did not have reciprocal protection here in Canada.
It has to be clearly underlined that the fresh fruit and vegetable industry has been calling for a statutory deemed trust for payment protection from losses due to buyers defaulting on payment obligations. They have been calling for this for a long time, to make sure that we are on par with what our American counterparts enjoy, and they want us to do this so that our amazing producers can be on a level and competitive playing field with our closest trading partner.
I want to say from the outset that the NDP absolutely fully supports this initiative in Bill C-280. In fact, we have been campaigning on this particular change to the law since 2015, and we have continued to support it ever since then. The very first mention of it was in our 2015 election platform. When we boldly stepped out and made that commitment, we got praise from both the Canadian Produce Marketing Association and what was then called the Canadian Horticultural Council, which really praised us for taking a strong position on the issue.
Again, in the 2019 election, Rebecca Lee, the executive director of what is now the Fruit and Vegetable Growers of Canada, stated:
Canada's fruit and vegetable farmers are facing financial risks that threaten their competitiveness at a crucial time when consumers want to make healthy food choices and are being encouraged by their government to consume more fruits and vegetables. It is important that all parties recognize this, and we applaud the NDP for their commitment to making a payment protection program for produce growers finally a reality.
It is not just from our election commitments. This has been the subject of parliamentary committees, two in particular, the Standing Committee on Agriculture and Agri-Food, of which I have been a proud member since 2018, and the Standing Committee on Finance, in the 42nd Parliament, the first Parliament in which I was a member in the House.
Both of those committees, which were, at the time, comprised of a majority of Liberal members, made the recommendation that our country move toward a PACA-like system to protect our produce growers. Unfortunately the Liberal government said they would not consider it at the time.
Again, in this current Parliament, as here we are in the 44th Parliament, with regard to the Standing Committee on Agriculture, in our recent report, entitled, ”Feeding the World: Strengthening Canada's Capacity to Respond to Global Food Insecurity”, recommendation 7 of that report makes a very clear recommendation to make a statutory deemed trust.
Again, the Standing Committee on Finance, in this Parliament, in its recent pre-budget consultations, also called for the creation of a limited statutory deemed trust.
We have had multiple committees look at this issue and make those recommendations. It is time for the government to take that ball and run with it and finally put this into action. I think we are actually going to see some movement on this, thanks to Bill C-280.
Let me read into the record the stakeholder feedback. We have positive responses from the Canadian Produce Marketing Association, the Fruit and Vegetable Growers of Canada and the Fruit and Vegetable Dispute Resolution Corporation. They are all calling on members of Parliament to consider this bill and to send it off to committee for further study.
I believe that this is a critical opportunity for all members of Parliament to demonstrate our support for this sector and to safeguard Canadian food security. I want to also give an honourable mention to the Ontario Federation of Agriculture. It has also been an important voice in calling for this change.
Going forward, we are only at the second reading stage, in principle. The government has raised some concerns about this bill. It believes that no other commercial creditor has a deemed trust for unpaid claims. It thinks that this bill would favour sellers of fresh produce over sellers of other perishable products. It believes that fresh produce sellers could demand immediate payment, that this bill would benefit large retailers, that the existing dispute resolution corporation already has a mechanism or that the BIA already has provisions that adequately protect growers.
I think this will come through a committee: each one of those arguments has been thoroughly refuted and they will be coming up at committee, where we can finally put them to rest through important witness testimony and feedback.
I have seen both the CPMA and the Fruit and Vegetable Growers of Canada respond to each of those points with evidence to the contrary and I look forward to that information coming forward in committee so that we can properly make a report back to the House.
I just want to say that Canadian farmers are essential workers and they need and deserve to stay in business. They work so hard on our behalf, putting in those long hours, working in a very uncertain market and with very thin margins. The least that we can do as parliamentarians is to set up policy and laws that help them compete on a level playing field.
I believe that if we go forward with this bill, we will have a number of positive impacts. We will help reduce the number of Canadian farm bankruptcies by extending key financial protection toward them. It will encourage timely transport of produce to market, because it is going to make it more worth the transporter's money and time to ship it.
I believe, ultimately, that a deemed trust is going to provide important stability in a very volatile food price inflation market.
For that reason, and as the NDP's proud critic of agriculture and agri-food, I am looking forward to voting on this bill tomorrow, to sending it to my committee and giving it the proper examination that it deserves.
I would like thank the member for York—Simcoe for bringing forward this important bill.
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