Editorial

Federal minister fuzzy on what's competitive

The federal minister of agriculture’s office has sent out a press release saying that Canadian based food processors can produce for 7.5 per cent less than those in the U.S. The press release went on to say that across the 12 sectors studied in 86 cities cost of competitiveness, along with the federal governments new policy framework, will make Canada the supplier of choice. The study applied only to G7 countries, in other words the most industrialized nations.

"Canada is open for business," he says. But for how long?

Farmers Forum has no idea what the new policy framework is, but we did look up the study on the internet by a consulting company called KPMK. Check out www.competitivealternatives. com.

According to the report, Canada has three distinct advantages. Its corporate income tax is lower than any other nation except the UK. It has the lowest electricity cost of anyone in the study, and a dollar worth about 63 cents in the U.S.

The minister’s use of the report is disturbing, because it appears to be a presentation of half truths that leave us with the impression that everything is going wonderfully. But only 10 days earlier, the minister of finance, Paul Martin, was on television saying our dollar was undervalued on international markets.

To put the country in such a great advantage the government is collecting little tax. Businesses are taking advantage of a natural advantage, an abundant supply of hydro electric power. And international money traders don’t understand the value of the Canadian dollar.

It strikes me that the logical conclusion is this – if the money traders smarten up and the dollar goes up by six or seven per cent the competitive advantage disappears.

The minister’s thinking is based on a house of cards. It’s the same fuzzy type of thinking that is propelling the federal policy on grains and oils. We can’t figure out if the Liberals are bereft of simple logic or dishonest. Either way, the future of farming requires better.

The Editor

Terry Meagher's acerbic wit and bombastic attitude have prompted fellow journalists to call him the "Don Cherry of Farm Reporting." He doesn't mince words and his monthly editorials are not to be missed. A brief biography of Terry Meagher can be found here.