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Date: April 6, 2015

To: Bryan Walton, National Cattle Feeders’ Association Casey Vander Ploeg, National Cattle Feeders’ Association

From: Cathy Jo Noble & Peter Brackenridge

Parliamentary Update

The House of Commons and Senate sat last week and now head into a two week Easter break. As highlighted below, several key questions of interest were posed in Parliament.

Also of note, Finance Minister announced this week that the federal budget will be tabled April 21. Oliver pushed back at critics who have accused the government of delaying the budget for political reasons. However, he had little to say about what can expect in the budget, beyond promising that it will be balanced.

On March 30th, the following exchange took place on the topic of government agricultural loans.

Mr. Larry Maguire (Brandon – Souris, Conservatives) Mr. Speaker, farmers know that one of the most useful short-term loan programs that they have is the advanced payments program. The program provides all farmers, whether they have grain or oilseed, livestock or horticulture businesses, the ability to borrow $400,000 from the federal government and up to $100,000 of that being interest free on an annual basis.

These dollars are used to cover production costs before crops get an opportunity to go to market. I would like to ask the Parliamentary Secretary for Agriculture to please inform the House and farmers what the government is doing to improve this program.

Mr. Gerald Keddy (Parliamentary Secretary to the Minister of Agriculture) Mr. Speaker, today the Minister of Agriculture announced that as of April 1 our government is improving the advanced payments program. Farmers can now get multi-year loan arrangements, use new security to guarantee the loan and repay it with cash on hand. It is easier for farmers than a co-operative, or for farmers who have incorporated, to access the program.

We have removed the monopolies of the program administrators and now they have to compete for farmers' business with lower rates and advances suited to the needs of the farmer. This is another example of how our government is creating the conditions for economic growth and prosperity in Canada.

On April 1st, the topic of temporary foreign workers was centre-stage.

Mrs. Sadia Groguhe (Saint-Lambert, NDP) Mr. Speaker, thousands of temporary foreign workers have to quit their jobs and leave the country because their work visas are expiring. Nobody knows how many workers will have to go back home. Nobody knows how many of them got a reprieve or why. Nobody has assessed the consequences of these departures for businesses. Will the minister finally do something about this and fix the countless serious problems that his government has caused?

Mr. Costas Menegakia (Parliamentary Secretary to the Minister of Citizenship and Immigration) Mr. Speaker, the temporary foreign worker program is just that: temporary. Employers and foreign workers have been aware of the four-year limit since 2011, when this policy was announced. The real question is this: what is the NDP's position? Today it is saying we should keep the door wide open to a huge number of temporary foreign workers. A few weeks ago, however, it was saying that we did not introduce our reforms soon enough. The NDP's wishy-washiness on this issue and all immigration policies is worrisome.

Ms. Jinny Jogindera Sims (Newton-North Delta, NDP) Mr. Speaker, today thousands of people who came to this country looking for a better life are being kicked out, all because the government made a mess of the temporary foreign worker program. Many were on the verge of gaining

permanent residency. Many were cheated out of their savings by unscrupulous consultants. Some will go underground, desperate to stay but denied any pathway to citizenship by the current government. Meanwhile, employers are losing employees. What are the Conservatives going to do to fix the mess they have made?

Mr. Costas Menegakia (Parliamentary Secretary to the Minister of Citizenship and Immigration) Mr. Speaker, the purpose of the temporary foreign worker program is to find employees where a Canadian cannot be found to fill that job. The member speaking today said this on April 24, 2014: The bottom line is, there are people living in Canada who are being laid off or having their hours cut to facilitate the use of foreign workers. Today, they are asking something completely different. The incoherence on the part of the opposition and the member for Newton— North Delta on this file, and in fact on Canada's immigration policies more broadly, is startling.

Also on April 1st, the safety of Canada’s food system was the focus of the following exchange.

Ms. Ruth Ellen Brosseau (Berthier-Maskinonge, NDP) Mr. Speaker, the Conservatives are missing in action when it comes to protecting Canadians' health. Twenty-two people died from listeriosis in 2008 after having consumed contaminated meat. However, under the Conservatives, one-third of the food inspector positions at the Canadian Food Inspection Agency remain unfilled. These inspectors are responsible for overseeing the meat processing factories in northern Alberta. Why are the Conservatives putting Canadians' lives at risk with these completely irresponsible cuts?

Honourable (Minister of Health) Mr. Speaker, let me say what Dr. Sylvain Charlebois, who is a food safety expert from the University of Guelph said about these allegations from the union. He said that the Canadian Food Inspection Agency method is “the 'right way' to approach inspections”. Keith Warriner, who is also a director of food safety and quality assurance program, to these union allegations said that the suggestion that meat sold in Canada is unsafe is “...scare-mongering”. In fact The Conference Board of Canada rates our food safety system number one against

17 OECD countries, including the U.S. The union's portrayal of this issue is inaccurate and it is irresponsible. Food safety is number one to CFIA.

Mr. Malcolm Allen (Welland, NDP) Mr. Speaker, one of the key tasks of any government is to keep Canadians safe and yet the government has cut funding to priorities and planning. The book actually tells us that. It has left us with a two-tiered system. We had it once before and now it is back. It seems to be that meat that goes into the U.S. is inspected one way and meat that comes to Canadian tables is inspected a different way. In fact what we see in Alberta is 100% for American meat product going to the south and 60% for Canadian product. Canadians need to know that the food is safe, so why has the minister created a two-tiered food inspection system for Canadians?

Honourable Rona Ambrose (Minister of Health) Mr. Speaker, let me again repeat that the Conference Board of Canada rates our food safety system in Canada as number one against 17 OECD countries, including the United States, which the union alleges is incorrect. In fact, the suggestion that meat sold in Canada is unsafe is “...a little bit of scare- mongering”, said the director of the food safety and quality assurance program at the University of Guelph. Of course, the member knows full well, as does the union, that the differences in procedures for international products are trade- related, not safety-related.

On April 2nd in the Senate, there was also a lengthy exchange regarding the safety of Canada’s food system. The full exchange in noted below in the Appendix.

Throughout the week in the House of Commons, as in past weeks, various MPs presented petitions calling on the government to respect the rights of small family farms to store, trade and use seeds.

Comment: Noblepath will complete for NCFA an analysis of the federal budget upon its tabling on April 21.

Committee Update

The House of Commons Agriculture Committee did not meet last week. On March 31st, the Senate Agricultural Committee heard from the following witnesses during its study of “International market access priorities for the Canadian agricultural and agri-food sector”:

• Cam Dahl, President (Cereals Canada) • Matthew Holmes, Executive Director (Canadian Organic Trade Association) • Susan Powell, President (Canadian Food Exporters Association)

The government provided an official response last week to the House of Commons Agriculture Committee. After CETA negotiations concluded, the Committee added an additional recommendation to their original report on Canadian Agriculture and CETA. The additional recommendation called for a balance between the interests of agriculture exporters and the maintenance of the supply management system. The government’s response (found in the link below) confirmed its support for supply management and reinforced its commitment to monitor and compensate for the potential impact on the sector of the new cheeses tariff rate quota negotiated under CETA. http://www.parl.gc.ca/Content/HOC/Committee/412/AGRI/GovResponse/RP791 7398/412_AGRI_Rpt07_GR_PDF/412_AGRI_Rpt07_GR_PDF-e.pdf

Comment: FYI

Announcements of Interest

Harper Government Improves Cash Advance Program for 2015: Producers to benefit from reduced red tape, ease of access, and flexible repayment options March 30, 2015 – Saskatoon, –Agriculture Minister Gerry Ritz today highlighted major enhancements to the Advance Payments Program (APP) designed to improve and streamline administration, provide greater flexibility and more repayment options, and ease access to the program for producers.

On February 27, 2015, the Government announced the coming into force of the Agricultural Growth Act which makes improvements to the Advance Payments Program (APP). The Act modernizes and strengthens federal agriculture legislation, supports innovation in the Canadian agriculture industry and enhances global market opportunities.

Many of the changes implemented under the Act will take effect on April 1, 2015, for the 2015 Program Year, in time to help producers plan for the new production year. The new Act also allows for further improvements to be implemented once amendments to the related regulations are completed.

New Online Tool and Enhancements to Environmental Programs for Farmers and Ranchers April 1, 2015 – Regina, Saskatchewan - Today, the federal and provincial governments announced a new web portal for Saskatchewan's Environmental Farm Plan (EFP) program. The portal allows farm owners to create, review and update their EFPs online and at their own pace.

As well, the Ministry has enhanced the Beneficial Management Practices (BMPs) available through the Farm Stewardship Program. There are now 24 BMPs under seven categories, including five new BMPs and enhancements to seven existing BMPs. The Farm Stewardship Program helps Saskatchewan farmers and ranchers implement practices that maintain or improve the quality of the environment.

March 31st CFIA Statement Response to Concerns around Inspection Activities in Canada

Earlier today, the Agriculture Union representing the Canadian Food Inspection Agency's (CFIA) inspectorate voiced several concerns about the quality of meat inspection in Canada.

Through the work of the CFIA, the Agency is committed to protecting the health and safety of Canadians.

First and foremost, food safety is the top priority for CFIA and since 2008 the Agency's overall spending has increased significantly because of increased investments in food safety programs.

CFIA field inspection staff has grown by 19 per cent since 2007, though the number of Field Inspection Staff can fluctuate due to changes in demand for service, such as opening and closures of federally registered establishments. As a result, the Agency's complement of Field Inspection Staff may vary throughout the year by as much as five per cent or 150 to 200 field inspection staff.

The CFIA is a science-based agency that takes a modern, risk-based, outcome based approach to all its activities, operating with the first priority to be food safety. Inspection work focuses on areas of highest risk first, the areas of focus may change during the year based on emergencies and shifting priorities.

As these decisions are made, the effective delivery of the CFIA's food safety programs and the overall health and safety of our food system is always top of mind.

There may be some differences in the inspection procedures of each country, the meat inspection systems of both the U.S. and Canada are similar and both countries have earned reputations as world leaders in food safety. It is important to note that differences in inspection procedures are trade related but not food safety related. In fact, the Conference Board of Canada rates Canada's food safety system number one out of 17 Organisation for Economic Co-operation and Development (OECD) countries.

The CFIA has increased its focus on prevention, preparedness and response to minimize risks to human, animal and ecosystem health. The Agency is undertaking a series of major initiatives focused on legislative, regulatory and inspection renewal and modernization. These initiatives will allow the Agency to deliver inspections more efficiently, achieve greater industry compliance with food safety requirements and better protect consumers.

April 1st CFIA Statement Canada Has A Strong Food Safety System

The Agriculture Union representing the Canadian Food Inspection Agency's (CFIA) inspectorate is unnecessarily undermining Canadians' confidence in their food safety system. Claims that food safety activities have been cut in Northern Alberta are false.

The CFIA is proud of the Conference Board of Canada rating Canada's food safety system number 1 out of 17 OECD countries including the United States.

Differences in meat inspection systems between the US and Canada are related to trade standards - not food safety. These include additional activities that certify labelling and meat cut classifications.

The Agency's overall spending has increased significantly to the highest levels in Canadian history due to the government's increased investments in food safety.

The Government of Canada has invested over $517 million in various food safety initiatives, since 2008. More recently, in Budget 2014, the Government has provided $153.6 million over five years to strengthen the CFIA's preventive food safety oversight programs.

The Agriculture Union is aware that the number of Field Inspection Staff in regions fluctuates due to changes in demand for service and the nature of inspection work focusing on areas of highest risk which can include regional emergencies and enforcement action.

Whether it's federal or industry staff, a food safety inspector is on the ground at all times in every federally-registered meat slaughter plant in Canada. A comprehensive system of inspection tasks are routinely carried out in federally- registered meat processing plants. The CFIA continues to ensure that all of these tasks are met in every establishment. Everyone has a role to play – the CFIA's is to provide oversight and ensure federally registered facilities are complying with Canada's strict food safety rules.

Industry is expected to ensure that Canada's strict food safety rules and regulations are met across Canada at all times.

The CFIA will continue to work to ensure the food on Canadian tables remains safe and continuously improve our strong food safety system.

Comment: FYI