Vol. 140, No. 21 — October 18, 2006

Registration
SOR/2006-247 October 5, 2006

CANADIAN WHEAT BOARD ACT

Canadian Wheat Board Direction Order

P.C. 2006-1092 October 5, 2006

Her Excellency the Governor General in Council, on the recommendation of the Minister of Agriculture and Agri-Food, pursuant to subsection 18(1) (see footnote a) of the Canadian Wheat Board Act, hereby directs The Canadian Wheat Board to conduct its operations under that Act in the following manner:

(a) it shall not expend funds, directly or indirectly, on advocating the retention of its monopoly powers, including the expenditure of funds for advertising, publishing or market research; and

(b) it shall not provide funds to any other person or entity to enable them to advocate the retention of the monopoly powers of The Canadian Wheat Board.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Order.)

Description

The Canadian Wheat Board Act (CWB Act) provides for the constitution and powers of the Canadian Wheat Board (CWB). The CWB is a shared-governance corporation with the object of marketing in an orderly manner, in interprovincial and export trade, grain grown in Canada.

This Direction Order directs the CWB to conduct its operations under theCWB Act in the following manner:

number	descriptions
(1)	It shall not expend funds, directly or indirectly, on advocating the retention of its monopoly powers, including the expenditure of funds for advertising, publishing or market research.
(2)	It shall not provide funds to any other person or entity to enable them to advocate the retention of the monopoly powers of the CWB.

A commitment was made during the 2006 federal election campaign to give western Canadian wheat and barley producers the option of participating voluntarily in the CWB. The CWB has taken a public position opposing marketing choice. It is important that the CWB, as a shared-governance entity, not undermine government policy objectives. This Governor in Council order directing the CWB not to spend money on advocacy activity will ensure that the CWB carries out its operations and duties in a manner which is not inconsistent with the federal government's policy objectives. Direction Orders of this type may be made pursuant to the authority found in section 18 of the CWB Act.

Alternatives

The alternative would be to allow the CWB to spend funds towards advocating publicly against the policy goal of the federal government to give western grain producers the freedom to make their own marketing and transportation decisions, and to allow them to participate voluntarily in the CWB.

Benefits and Costs

As the funds available to the CWB are the funds of producers, some of whom favour marketing choice, those funds should not be used for a campaign which is aimed at preserving the monopoly. Producers who are in favour of marketing choice will support action to protect producers' funds from being used to advocate for retention of the monopoly. Producers who support the continuation of the monopoly and the CWB can be expected to oppose the Direction Order. The Direction Order will ensure that the Canadian values of conducting votes that are fair and democratic and that provide equal opportunity to all positions, are respected by the CWB during the consultation process for determining the future direction of the CWB.

The Direction Order does not prevent the CWB from spending funds to carry out its object of marketing grain in an orderly manner nor does it infringe on the rights of individual directors or CWB staff to make statements in public in their own name and without financial support from the CWB. It would, however, prohibit the spending of funds by the CWB for the purpose of advocating the retention of its monopoly powers and would prohibit the CWB from funding third parties for that purpose.

Consultation

No consultations, prior to final approval of the Direction Order, are necessary.

Compliance and Enforcement

Subsection 18(1.2) of the CWB Act specifies that "Compliance by the Corporation with directions is deemed to be in the best interests of the Corporation".

Subsection 3.12(2) of the CWB Act also specifies that "The directors and officers of the Corporation shall comply with this Act, the regulations, the by-laws of the Corporation and any directions given to the Corporation under this Act".

Contact

Harold A. Hedley
Director
Grains and Oilseeds
Agriculture and Agri-Food Canada
Sir John Carling Building
930 Carling Avenue
Ottawa, Ontario
K1A 0C5
Telephone: (613) 759-7704
FAX: (613) 759-7476

Footnote a

S.C. 1998, c. 17, s. 28

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