Wheat Board supporters lose key legal battle

Supporters of the Canadian Wheat Board which used to have sole power to market some grains in western Canada lost a legal battle when the Federal Court of Appeal overturned a lower court ruling that said that the Conservative government had broken the law when it took away the monopoly over wheat and barley sales without holding a plebiscite on the issue.

When the Conservatives originally passed legislation stripping the board of its monopoly supporters of the Wheat Board filed a lawsuit claiming that producers had to vote on any such changes. A lower court agreed last December but the government appealed. The Appeal court said there is nothing wrong with the government in effect changing its own law through parliament.

Justice Mainville wrote:"I am of the view that none of the arguments advanced by the respondents or the interveners can sustain an interpretation that would preclude the minister from introducing in Parliament legislation which would fundamentally modify the CWB's mandate or which would lead to the repeal of the CWB Act," This is the final nail in the coffin of the Board. The U.S.and big international grain companies had tried for years to destroy the board using international trade rules but always failed.

Farmers by electing the Conservatives have destroyed an institution that served them well. When the Wheat Board conducted its own survey a majority wanted the powers of the Wheat Board retained. However, Conservatives obtained large majorities in rural areas of the prairies and the Conservatives made it clear and a campaign promise that they would curb the power of the Wheat Board. The donations will come pouring in from the giant international grain traders. For more see this article.

Former Wheat Board directors lose bid to suspend new Wheat Board law

Eight former directors of the Canadian Wheat board lost their bid to suspend the new Conservative law that would end single desk selling by the board. Eight former members dismissed by the Conservative government had asked for an injunction suspending implementation of the law until Canadian courts had ruled on its validity.

The eight former directors argued that a referendum among western grain producers had to be held before the monopoly rule could be changed. They also argue that the changes will hurt Canadian farmers. The U.S. and big grain companies have been fighting to end the monopoly for years.

Otttawa abolished single desk sell in a law passed late last year and wants to have an open market in place for wheat and barley by this crop year. The former directors were elected by farmers but were terminated with the passage of the legislation by the Harper government.

The Wheat Board monopoly has been in place for Prairie Farmers since the 1940s. The Conservatives campaign promises included ending the monopoly even though a majority of farmers in a poll supported the board monopoly. The Conservatives also promised a referendum which was never held. The Conservatives claim their election was the referendum! Ironically the Conservatives have strong support on the prairies. For more see this article.

Canadian Wheat Board: Farmer elected members booted and replaced by government appointees

        After passing legislation that would remove single desk selling from the Wheat Board the Conservative government has now replaced five farmer elected board members with their own appointees. These five immediately voted to discontinue the suit filed against the government. The former Wheat Board sued the government and had won on the grounds that the government was required by law according to the Wheat Board Act to hold a plebiscite among farmers first. NOTE: In single desk selling all wheat and barley in the western prairie provinces is marketed through the Wheat Board. This gives the board the power of a monopsony. The board was formed in the depression by farmers who believed they were at the mercy of large grain companies who bought their grain at prices that were too low.
   The agricultural minister put a familiar spin on what happened. It is all about freedom of choice or marketing freedom. No doubt the large grain companies were cheering as well. Others cheering are the U.S. who filed over a dozen suits against the board claiming that the board gave prairie farmers an unfair advantage. Farmers in the room where agriculture minister Gerry Ritz was speaking apparently cheered his speech.
    The Wheat Board itself had taken a plebiscite on whether farmers wanted to remove the single desk selling monopsony and a majority said they did not. The Conservative government in the last election campaign promised to remove those powers but also said it would hold a plebiscite of farmers. But it did not. It just threw out the elected farmer board and ignore a judgment of a court that their action was illegal. For more see this article.

Canada: Conservative government will go ahead and break the law to end Wheat Board monopoly

    Agriculture minister Gerry Ritz will go ahead with a bill that a federal judge has just ruled breaks the law. Ritz noted that the government of Canada has the sole right to act amend or repeal any piece of  legislation. While that is true it is irrelevant. The situation here is that the government has been found to have broken an existing law. Rather than break that law the government should first repeal it. But this Conservative government has a number of times showed its contempt for parliament, it is now just showing contempt for the law.
    The court ruling found that Ritx broke the law by violating a section of the Wheat Board Act. As interpreted by the judge this requires that the government  consult the Board and hold a plebiscite among farmers to see if they support the changes. The government is appealing the decision but is going ahead with passage of the bill even during the appeal process.
   The Conservative government has been a long time critic of the Wheat Board and is supported by some farmers. However a plebiscite held by the Wheat Board showed a majority actually support keeping the monopoly. Nevertheless the Conservative election platform pledged to remove the monopoly.
   The monopoly was formed in the depression by prairie farmers who felt they were exploited by the big grain companies. It has been the subject of over a dozen complaints by the U.S. that the monopoly is an unfair marketing practice but all were lost. Now the Harper Conservative government has come to the rescue of the big grain companies. Of course this is all in the name of free choice. For more see this article.