Hon. Harry Enns (Minister of Agriculture): Madam Speaker, I have a statement for the House.

Madam Speaker, it is with pride I rise today to bring some tremendous news to the House and to the people of Manitoba. This morning, my Premier (Mr. Filmon), the honourable Minister of Industry, Trade and Tourism (Mr. Downey) and officials of Maple Leaf Foods announced a major economic development project for Brandon and all of Manitoba.

Maple Leaf has committed to building a state-of-the-art pork processing plant in Brandon, which will put Brandon and Manitoba in the forefront of the pork industry in Canada, and around the world it will make Manitoba the centre of pork production in Canada.

Maple Leaf has announced the new plant will be of world-class standing and provide competition for processors all over the world. This project will provide thousands of jobs. The plant alone will employ over a thousand people in its initial phase. Construction jobs, jobs in the production of hogs and spin-off service and related agri-food industry jobs will all come as a result of this announcement. Brandon was the successful community after an exhaustive search by Maple Leaf which included 42 communities in both Canada and the United States.

Madam Speaker, on behalf of my government and the people of Manitoba, I offer my congratulations to Mayor Reg Atkinson and the people of Brandon for their diligent work in making this dream become a reality. Brandon, and all of western Manitoba, can look forward to expansion and growth as a result of this initiative. To quote from this morning's announcement, this is probably the most significant event in the hog industry in Canada and will make Maple Leaf the single largest employer in western Manitoba.

This is truly great news for Manitoba, and it is a major illustration of what can be accomplished when we all work together. My ministry and my government set an ambitious goal not so very long ago, a goal to take something Manitoba did well and expand on it to become the best in the field. That is exactly what has happened here. By providing the investment climate, the marketing options and working in partnership with producers and processors, my government has set the stage for a promising future. This announcement would not have occurred without introducing marketing options for Manitoba hog producers. Let me say that again, Madam Speaker. The decision we made to introduce flexible marketing to the Manitoba pork industry played a key role in the decision to locate this plant in Manitoba.

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Madam Speaker, I want to pay a special tribute to Mr. Gerry Moore, Professor Clay Gilson and Dr. Dave Donaghy who studied the issue and reported Manitoba could turn expansion of the industry into a major expansion of our economy. They showed how Manitoba could take advantage of the elimination of the Crow rate and turn it into an opportunity as part of an overall strategy for the success of the agricultural industry in this province. As a result of that change, Manitoba offers the lowest cost of livestock production, and therefore it is extremely attractive for investments of the sort we are speaking today.

I also want to say, Madam Speaker, this announcement is not just good news for those involved in the agricultural industry in Manitoba. It is good news for all the citizens because of the jobs it creates and because of the increase in our tax base which will support my government's efforts to provide the very best health, education and social services possible for Manitoba.

Maple Leaf's proposal to pay U.S. equivalency for hogs in Manitoba will significantly increase the return producers receive on their investment. A major part of this announcement means over one million hogs, which have been shipped to the United States for finishing and processing, will now be processed in Manitoba.

We have participated in trade missions around the world where it seems everyone is eager to learn more about the Manitoba Pork Advantage. At a recent trade show in the Netherlands, our Manitoba booth was the busiest as investors looked at what we had to offer. Manitoba pork is sought after in markets in Asia and throughout North America. This industry works well with our strengths and other initiatives underway in Manitoba such as Winnport and the mid-continent trade corridor. Not only do we have a world-class product, but we have ways of getting it to the world.

Madam Speaker, I have always known that my farmers produced world-class products. Today's announcement is a recognition of the fact that we can all take pride in that. It is also a testimonial to all Manitobans who helped create a world-class province where companies such as Maple Leaf feel comfortable investing, knowing their investment is a good one.

Thank you, Madam Speaker.

Mr. Leonard Evans (Brandon East): Madam Speaker, I want to thank the Minister of Agriculture (Mr. Enns) for this very important announcement and would take this opportunity to congratulate the company and everyone concerned in helping to make this project become a reality and indeed welcome Maple Leaf Foods to Brandon. Mr. Michael McCain, the president and CEO, did fax me a letter this morning about the decision and outlined the extent of the investment, and I thank Mr. McCain for this courtesy.

I have replied to him, congratulating him, not only as the MLA in which the plant will be located but also--

Some Honourable Members: Oh, oh.

Madam Speaker: Order, please. The honourable member for Brandon East was responding to a ministerial statement.

Mr. Leonard Evans: Thank you, Madam Speaker. I might add, located in an industrial park area that was made possible by the expansion of Brandon city boundaries back in 1971 under the Schreyer government.

Madam Speaker, it truly is good news for Manitoba and indeed the whole province. The jobs are badly needed in the area, and certainly this plant will provide a major boost to the local economy, to the Manitoba economy. The city and the province, I know, had been working on this development for some time. They have been working very hard. Indeed, I have had an opportunity to learn the challenges involved leading up to the decision in discussions with many people. I am pleased that, although the company is presently involved in major labour disputes elsewhere, it has acknowledged that the UFCW has successor bargaining rights dating back to 1989 when the Burns plant closed in the city of Brandon. Burns company, of course, was obtained by Maple Leaf Foods. The fact that the company has voluntarily and officially recognized UFCW as the bargaining agency will allow for early good relations between the company and the union. Indeed, I do believe, Madam Speaker, that this has paved the way for an early and satisfactory collective agreement that can be reached between the company and the UFCW before the plant goes into operation in 12 to 18 months from now. Indeed, Manitoba has enjoyed some good labour relations for many years.

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As has been observed by the minister, the plant will have many important economic and social impacts in the province and the Westman area, including indeed a major stimulus to agriculture and to hog production in particular, certainly an increase in the availability of manufacturing jobs which tend to have higher wages than some of the service sector jobs, and certainly it will provide many spin-off benefits to our economy in servicing the plant and its workers. As economists, we call this the multiplier effect. Indeed, there is a very important multiplier effect that will occur that will have--in fact, it is very difficult to estimate the extent to which it will have a positive impact on the economy. So that certainly will be at work. Of course, last but not least, it will give a major boost to the economic development of the city of Brandon, Manitoba's second largest city.

So, in conclusion, Madam Speaker, let me say that I look forward to the development of the project in the next year or two. In fact, I can tell members of the House that I will be able to observe the plant going up out of my living room window, which faces east about half a mile from the proposed facility.

So, on behalf of my constituents and on behalf of the official opposition, let me extend our sincere congratulations to the minister, the government and indeed best wishes to the company and its workers for successful development and operation in the years ahead.