August 19, 2004

Liberals place Canadian cattle industry in U.S. politicians’ hands

Two months ago voting Canadians made it clear to the Liberal Party that the way Paul Martin’s government conducted itself before the election was simply unacceptable. Unacceptable behaviour in regards to the sponsorship scandal; unacceptable spending in regards to the gun registry; and unacceptable effort in regards to our cattle producers ravaged by the lone BSE finding. Nowhere was that message more evident than in Saskatchewan and Alberta where only three Liberal M.P.s were sent to Ottawa. Despite the huge loss of seats suffered by Mr. Martin and the Liberal Party and a vow to “do better”, nothing has changed. The crisis in the cattle industry has become a catastrophe.

Cattle producers and others who also have had their livelihoods threatened by that May 2003 BSE case have been struggling to survive month after month – many have been forced out of the only way of life they know. The Liberals, however, have sat back, waiting for the Americans to open the border to live cattle exports. There is no sense of urgency by the federal Liberal government to find a solution to the problem or to realize the catastrophic consequences this wait-and-see approach is going to have over the next couple of months. We can wait no longer.

Since the government has been relying on the hope that cattle exports would resume to the United States, there has been no plan put in place to deal with the volume of calves expected to hit the markets this fall. Cattle producers held onto cows which would have normally been sold last fall, and they allowed those cows to become pregnant. This was all done with the presumption that the United States would re-open the border and that the flow of cattle would be at least near the level it was prior to May 20, 2003. Those cows have since had their calves, and producers are going to need to get rid of that extra stock before winter. There simply will not be enough room or feed for producers to hold onto their calves throughout the winter months. While the flood of calves onto the market will have a horrible effect in terms of prices -- which are already at rock bottom -- there is also no place for those calves to go.

Why doesn’t our government have a strategy to deal with the BSE crisis? Many suggestions have been made. For example, for a full year, leaders in the cattle industry have been calling for an increase in federally-regulated slaughter and processing facilities, and they have been asking the federal government to assist in that increase. Offering financial support or loan guarantees to smaller facilities to help them become federally regulated would certainly be something this government could do to help our producers right now. Again, the Liberal government has ignored these cries for help, believing the slaughter and processing increase would be unnecessary if the border re-opened.

Also, Conservatives, a year ago, called for at least $1 billion in extra assistance to cattle ranchers. Alternative markets should be developed even if it means more inspections of cattle. We need to develop a much better relationship with our trading partners. This must be a priority for a country that is dependant on export markets and international trade.

Our cattle producers are so desperate for an end to this crisis that many are taking matters into their own hands. Some have had to sell off entire herds and their operations, while others are seeking legal and financial advice to decide whether to keep going. A group from Alberta has even launched a lawsuit against the American government with the hope others will follow suit thereby pressuring the U.S. to re-open the border. There is, however, a fear that this approach may have the reverse effect by involving the courts.

All the while, the Liberal government continues to remain a non-player in this issue. We heard briefly from the new federal Agriculture Minister, Andy Mitchell, upon his appointment by the Prime Minister in late July, but virtually nothing since. Why not?

Canadians have supported the cattle industry as never before, demanding Canadian beef be put on their plates both at home and in restaurants. Why is it then that the federal government, which represents all Canadians, is so unwilling to show the same support?

Our cattle producers need to see that there is hope on the horizon. They need to see that this government has a plan to save the industry. It is my sincere hope that the Liberal government still has cards yet unseen in their hands and that a course of action can still be put in place to help our cattle producers. Unfortunately, it is more likely that Mr. Martin and company have placed the fate of the Canadian cattle industry in the hands of American politicians.