Court slams Ottawa over attempt to break up Wheat Board monopoly

by DAWN WALTON — August 1, 2007

A court has issued a strong rebuke to the federal government, which is aiming to dismantle the Canadian Wheat Board's monopoly on grain sales, on the eve of what was supposed to be the Conservative's first step in opening the market on barley.CALGARY -- A court has issued a strong rebuke to the federal government, which is aiming to dismantle the Canadian Wheat Board's monopoly on grain sales, on the eve of what was supposed to be the Conservative's first step in opening the market on barley.

Federal Court Judge Dolores Hansen, who last night rushed out her decision on the future of barley sales, ruled that Ottawa overstepped its power when it pledged to remove the crop sales from the single-desk marketing system as of today.

In her 20-page ruling, Judge Hansen concluded that Agriculture Minister Chuck Strahl was wrong to simply introduce a regulation that would allow Western Canadian farmers to market barley to any customer they choose.

Instead, she found, the federal act that governs the wheat board requires a vote in Parliament.

The board successfully argued that farmers, not the government, were given control of the board when Parliament amended the Canadian Wheat Board Act in 1998.

Board chairman Ken Ritter was pleased with the decision, but said the organization is not going to carry on as if it is "business as usual."

"We will work hard to find new ways to create marketing choices for farmers without stripping away the marketing power of their single desk," he said in a statement.

Indeed, this may just be a temporary victory for the board, which is the largest marketer of wheat and barley in the world, but it is on the federal government's hit list for change.

Prime Minister Stephen Harper has long promised to allow Western farmers more choice in marketing. Some farmers have become increasingly agitated by being forced to market their wheat and barley through the board when their counterparts in Eastern Canada have the luxury of finding their own buyers.

Some producers were calling August 1 "barley freedom day" in anticipation of the opportunity to handle their own sales.

Emotions ran high outside the court proceedings in Calgary last week as farmers both for and against the continued existence of a single-desk system voiced their views.Some farmers believe they could get higher prices for their crops if they found their own customers. Others are worried that the creation of a dual-marketing system would doom all farmers because customers may not believe that they are receiving the same quality of product.

Mr. Strahl said he is "disappointed" and "surprised" by the decision.

"Barley freedom day isn't going to happen" as scheduled, he said.

Mr. Strahl said he will ask the government's legal team to look at the ruling and decide "as quickly as possible" what steps to take, including whether to file an appeal or put the issue to a vote in Parliament.

A court has issued a strong rebuke to the federal government, which is aiming to dismantle the Canadian Wheat Board's monopoly on grain sales, on the eve of what was supposed to be the Conservative's first step in opening the market on barley.

Source:The Globe and Mail