Wednesday, August 01, 2007

Knew it!

Wheat Board's Barley Monopoly Stands
Wednesday, August 1, 2007
By Larry Kusch
Winnipeg Free Press
Page A3

A Federal Court judge Tuesday night struck down a cabinet order - mere hours before it was to take effect - that would have ended the Canadian Wheat Board's monopoly on barley marketing.

Justice Dolores Hansen ruled that the Harper government exceeded its authority in June when it attempted to create an open market for Western Canadian barley by issuing an order in council when it should, instead, have sought the approval of Parliament.

Ottawa's proposed changes were to have taken effect today, the beginning of the grain industry's crop year.
The judge's decision - released at nearly 8 p.m. Ottawa time - means that the Winnipeg-based Wheat Board will continue to control the marketing of Prairie barley destined for export or used domestically for human consumption.

Reached Tuesday night while en route to Edmonton, the Wheat Board's Chairman, Ken Ritter, said he was delighted with the ruling.

"We're obviously very pleased with the results of this decision," said Ritter, saying it confirmed what the CWB has been telling the government all along - that changes to the agency's powers could only be made through a well-defined process that included the approval of Parliament.

Agriculture Minister Chuck Strahl said in an interview late Tuesday night that he was "very disappointed" with the court's decision, adding that "I won't be alone in that."

He said that, arguably, a majority of Prairie farmers wanted more marketing choice for barley.

Strahl said the government would review the decision closely over the next few days. It has the option of appealing the ruling to the Federal Court of Appeal.

Tuesday's Federal Court ruling was a blow for the Harper government, which had been hell-bent on ending the CWB's single-desk powers.

After vowing to give farmers more freedom over grain marketing during the last federal election, the Conservatives fought hard to keep that promise - going so far as to sack a Wheat Board President who refused to toe the government line.

Now the Conservatives, who are a minority in the House of Commons, may be faced with passing legislation to achieve their goal - a daunting task considering all opposition parties are against ending the wheat board's monopoly without a clear indication that most farmers support that.

Justice Hansen heard arguments from the government, the Wheat Board and other interested parties in Calgary last week.

She had promised to try to deliver her ruling before the beginning of the new crop year today - and Tuesday night politicians, grain industry officials and farm group leaders anxiously awaited her decision well into the evening. The Wheat Board and an organization called Friends of the Canadian Wheat Board had both appealed to the Federal Court to strike down the federal order in council.

One supporter of the government's plans to create an open market for barley called the judge's ruling "a stumbling block," but said she was optimistic that the Wheat Board's monopoly would end one day.

"Things are going to happen a little slower than what we wanted to, but there's no doubt in my mind that this is going to happen," said Cherilyn Jolly-Nagel, president of the Western Canadian Wheat Growers Association.
She said with market prices for barley now sky-high, the wheat board will "have to do a lot of spin-doctoring" if farmers aren't able to cash in over the next year.

The government's supporters were so confident that Ottawa would defeat the court challenge to its marketing order that they organized a special "Barley Freedom Day" celebration at Portage la Prairie farmer Jim Pallister's spread for today.

Strahl's parliamentary secretary, Saskatchewan MP David Anderson, was scheduled to appear, and Prime Minister Stephen Harper was sending greetings to the group.

Pallister said Monday, however, that if his side lost the legal challenge, the gathering would go ahead as "Barley Freedom Fighters Day."

This isn't the first time a Conservative government has sought to strip the wheat board of its barley-marketing monopoly through an order in council.

Fifteen years ago, the Mulroney government attempted to remove the CWB's monopoly over barley sales within North America. But six weeks after the launch of the continental barley market a judge declared that the order was invalid. The Wheat Board is expected to announce initial payments for wheat and barley for the new crop year as early as today.

Ritter, the Wheat Board Chairman, said the CWB realizes that with its court victory comes the obligation to address farmers' concerns over the delivery and pricing of malting barley.

These concerns had led to calls in some quarters for farmers to have a choice over how they marketed their barley.

larry.kusch@freepress.mb.ca

Today's web poll question:

Do you agree with a federal judge's decision allowing the Canadian Wheat Board to keep its monopoly on barley marketing?

Cast your vote at www.winnipegfreepress.com THE BACKGROUND: The federal government passed an order in council in June ending the Canadian Wheat Board's monopoly on barley sales effective Aug. 1.

The Wheat Board and a group calling itself Friends of the Canadian Wheat Board then took the government to court, saying that Ottawa wasn't within its rights to change the Board's marketing powers through cabinet decree.

WHAT HAPPENED TUESDAY? Federal Court Justice Dolores Hansen ruled in favour of the Wheat Board and its supporters, striking down the federal order in council.

WHAT'S NEXT? The Wheat Board continues to be the sole marketer of Prairie barley for export sale and for domestic human consumption in Canada. Ottawa is reviewing the decision and could challenge the ruling in the Federal Court of Appeal. The Conservatives could also try to introduce legislation to change the Wheat Board's powers, but they are in a minority in both the House of Commons and Senate.

Larry Kusch
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Anders Bruun
www.campbellmarr.com
abruun@campbellmarr.com

Knew it! Ran into Anders this past weekend who had just returned from a grueling three day Federal Court of Canada trial representing Friends of the Wheat Board. Several years ago when Brian Mulroney was Prime Minister he acted for the Canadian Wheat Board in a similar case. Therefore, Justice Hansen had case precedence upon which to rely.

This sets the table for the next looming battle - the marketing of wheat in Canada.

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