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Madam Speaker: Order, please. The hour being 5 p.m., time for private members' hour.
Hon. James McCrae (Government House Leader): Madam Speaker, I think there might be agreement to bring private member's Resolution No. 19, standing in the name of the honourable member for Gladstone (Mr. Rocan), forward for debate today and the others would retain their place on the Order Paper.
Madam Speaker: May I just ask for clarification--and leave the others standing in the same order as they appear? Is that what you said?
Mr. McCrae: Yes, just bring No. 19 up to the top.
Madam Speaker: Is there leave to move Resolution 19 ahead of Resolution 16 and leave the rest remaining in the order listed? [agreed]
Res. 19--Potato Industry in Manitoba
Mr. Denis Rocan (Gladstone): I move, seconded by the honourable member for Pembina (Mr. Dyck),
"WHEREAS the potato industry is one of the most rapidly expanding agricultural sectors in the province of Manitoba; and
"WHEREAS there are 196 commercial potato growers in Manitoba and more than 1,500 Manitobans are employed in processing potatoes and potato products; and
"WHEREAS three decades ago Manitoba's potato crop was worth $2.5 million, in 1996 Manitoba's potato crop was close to $100 million; and
"WHEREAS culled potatoes are used as feed for livestock, hogs and bison in Manitoba; and
"WHEREAS the Province of Manitoba is the second largest producer of potatoes in Canada.
"THEREFORE BE IT RESOLVED that the Legislative Assembly of Manitoba urge the Provincial Government to continue on its current course of helping Manitoba achieve its goal of becoming Canada's new potato capital and thereby become the largest producer of potatoes in Canada."
Motion presented.
Mr. Rocan: It gives me great pleasure today to introduce private members' Resolution No. 19 on Manitoba's potato industry.
As noted today on the front page of the Winnipeg Free Press, Manitoba's potato industry is doing extremely well. Manitoba's potato acreage has steadily increased from 50,000 acres in 1991 to 72,000 acres in 1997. The ever-expanding market for french fries and the initiative of producers to diversify are at the heart of this increase. Respectively, the value of Manitoba's potato crops is growing.
In 1991, the farm gate value of Manitoba's potatoes was $51 million. By 1996, the farm gate value has increased to $110 million, and the value added to this crop is estimated at more than $260 million. What staggering evidence of a healthy, thriving industry. However, even given these truly fantastic numbers, the potato industry in Manitoba is not operating at full capacity. To meet the requirements of the processing industry, it is expected that our potato acreage will increase to over 80,000 acres in the next few years. This will put us in contention to overtake Prince Edward Island as Canada's potato-producing capital.
Right now, approximately 80 percent of Manitoba's potato acreage is for the processing industry which is primarily frozen french fries produced by Midwest Foods at Carberry and McCain Foods at Portage la Prairie. On a smaller scale, Old Dutch Foods in Winnipeg also contracts potatoes for the chip market.
The potato-processing industry provides over 1,500 jobs for Manitobans. Supporting the continued expansion of this industry would lead to the creation of more jobs for Manitobans. The agricultural industry is an integral part of Manitoba's economy. Maintaining a healthy and prosperous potato industry will only contribute to the well-being of the agriculture industry and therefore to Manitoba's entire economy.
Recently, Midwest Foods completed an $18.6-million expansion of their Carberry production facility. The plant is a joint venture of Nestle Canada Inc. and J. R. Simplot Company and produces french fries for McDonald's U.S. restaurants. The expansion is expected to increase Midwest potato purchases to about 6.7 million hundredweight annually. Moreover, Portage is home to the most advanced potato production facility in not only all of Canada but in the world. The McCain Foods french fry processing plant--this plant, if I might mention, in late 1997 produced 1.4 million pounds of potatoes in a 24-hour period, unheralded in any processing facility in the world.
Manitoba does have the capacity and the ability to produce even more potatoes. One key to the continued growth of the potato industry is irrigable land with the proper soil characteristics. Manitoba has a favourable climate for potato growth, but, more importantly, potato producers require a sustainable water supply for crop irrigation.
I believe that in conjunction with the provincial government, potato producers can meet all of these requirements. Soil survey reports covering 28 rural municipalities indicate that there are more than 2.5 million acres rated good to excellent for irrigated potato production. In my opinion, this is an advantage that we need to help our potato producers take advantage of. This capacity for increased production represents jobs waiting to be created. It is estimated that 70 percent of the potato area is now irrigated, and any future increases in potato acreage will require irrigated production.
The Assiniboine Delta Aquifer made the Carberry area extremely lucrative for potato farmers. This water resource has a potential to provide 7,200 acre-feet of water. Along with water supplied by the province's aquifers, the surplus water irrigation initiative, Phase 1, I might add, is providing $6 million over three years to support the development of an additional 1,400 irrigated acres.
The Manitoba government proceeded with this program in 1996-97, and the full program implementation is now underway. In keeping with our government's commitment to our environment, this program ensures that all irrigation development is supported in the context of sustainable development. Along with the capacity to produce more potatoes, there is demand for them from Manitoba's growing agri-food industry which processes the majority of our potato crops.
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Over the past year, agriculture and the agri-food sector have achieved significant success in both diversification and value-added initiatives. Potato production and processing, along with hog production, new crops and nontraditional livestock, are all experiencing phenomenal growth as producers in our province respond to massive changes in transportation and trade and seize emerging opportunities. Just as these opportunities are being seized, we need to ensure that the potato producers across Manitoba have the means to seize the emerging opportunities across the potato producing industry in Manitoba. For example, the Manitoba government has assisted a number of agri-food manufacturers in laying the groundwork for making some of these new expanded plants possible.
More initiatives such as these need to be pursued. Manitoba Agriculture staff were involved in such activities as conducting feasibility studies, reviewing infrastructure requirements and assessing supply needs of manufacturers. Many of the new expanded processing plants will certainly help our agri-food sector. Much of the spinoff investment related to expansion in the potato industry will directly benefit my constituency of Gladstone in terms of increased potato acres and also the storage facilities and employment opportunities for people associated with the potato business.
I must urge all members of the House to support this resolution and thereby support one of the agricultural industry's most lucrative subsectors. In fact, potatoes provide the highest net return per acre of any of the major crops in western Canada these days, because they are being grown for processing. Manitobans, including all of the members in this House, are not ones to pass up a good opportunity when they are presented with one. The potato industry in this province is providing the opportunity for expansion. This expansion would be lucrative for the entire province. Let me tell you, this is a good opportunity. I urge all members of this House to support this resolution, and hopefully within the next few years, we will see Manitoba become Canada's top potato producer.
Ms. Rosann Wowchuk (Swan River): Madam Speaker, I welcome this resolution from the member for Gladstone (Mr. Rocan) who brings forward a very important issue, and that is the growth of the potato industry in this province. It comes at a very timely time when we see an article in today's newspaper talking about Manitoba's spud growers, and the money. It is an important industry to the province. The member indicates that 72,000 acres of potatoes are now in production and that the value of the crop is well over $1 million--[interjection] Well over $100 million.
Madam Speaker, when we look at this, and when I look at the article that we see today, the potato producers are doing well. They are making some of the best money in comparison to other producers in this province, other farmers. Their average income is somewhere in the range of $150,000, of which $117,000 comes from farming. Whereas, if you compare a grain farmer whose average income is $33,000, compared to $43,000 in other parts of the country, Manitoba grain producers are suffering an awful lot, but what we have to look at is that less than one percent of Manitoba farmers are in the potato industry. It is an important industry for a very small part of the province. It is an important industry for value-added jobs, but it is a very small part of the agriculture economy of this province. I would hope that the government would be doing research to look at other parts of the province that might be able to diversify in this area, as well.
There are a couple of areas of concern that have been raised. I remember going on a tour in southern Manitoba, in the southwest part of the province where there is some potato production, and the member for Gladstone (Mr. Rocan) talks about the Assiniboine Delta Aquifer, and people are concerned with the amount of water that is used in potato production. We were in the area southwest of Brandon where there was some potato production, and people talked about the level of wells in the area dropping because of the amount of water that was being taken for potato production. I think we have to take all of this into balance, and we have to ensure that as one industry grows, that another sector of a rural community is not negatively affected. As I say, one of the big concerns that has been raised is the amount of water that is needed.
The other issue that has been raised is the value of the land in those areas. The land is going for $2,000 an acre, and I am told that it could even go as high as $3,000 an acre. When I look at that, I question what is the impact of that kind of value on land for small farmers who want to get started, young farmers who want to get started. These people do not have the resources to pay that kind of a price for land. What you see as a result of this is many people are selling their land off, and the family farm is being absorbed into much larger operations. I have talked to people from the southern part of the province who indicate exactly this. Young farmers are giving up on farming, and selling their land off and it becomes absorbed into a larger operation. The member opposite can say, well, so what, it is money, if we can sell it, good, if that is what they choose to say, but we have to think about the viability of a rural community. Every time somebody sells off a farm and moves out, it is somebody less living in the rural community.
People spend a lot of money educating their children to be involved in the agriculture industry, and if they cannot take part in farming, then it is money wasted, because these people are not being able to actively take part in farming. While we are talking about how great the potato industry is, and it is for certain parts of the province--I say it is great, but I think that we have to think about the consequences of it, too. As the value of land goes higher, who are we putting out of business, and what are we doing to their quality of life in a rural community?
The other thing that I wonder about as well is: what is the future of the prices of the potatoes staying where they are? When I look at this article I read that Larry McIntosh, chief executive officer of Peak of the Market, credits Manitoba's potato success to Manitoba selling its table potatoes on a co-op basis similar to the way the Canadian Wheat Board sells its product.
I am told that only the table potatoes are sold through that market, and that was what I said, table products through the market, but the majority, as the Minister of Agriculture (Mr. Enns) says, are sold on contract. I am told that people south of the border are experiencing some real difficulties with the price of their potatoes as different producers come in. As more people produce potatoes they seem to be having one producer fight against the other, and the price of potatoes is being driven down.
To get into the potato industry is a very big investment, and we have to have some security for the people who are getting into the industry. So I hope that the Minister of Agriculture will consider this and ensure those people who are making major investments will get a fair return for the product.
The Minister of Rural Development (Mr. Derkach) just talks about the grain farmer. The grain farmer is in big difficulty right now, and part of it is because farmers have been abandoned by the federal government. In other countries we have support programs, safety net programs. In Canada our federal government has basically abandoned the farming community.
So I want to say to the member for Gladstone (Mr. Rocan) that we believe that this is an important industry to Manitoba. More research has to be done to look at other parts of the province where there may be the opportunity for that industry to grow as well, but the government also has to be cautious about what is happening to ensure that those people who make major investments will continue to be able to grow a crop. I think their future is much better than the sugar beet growers, who had the company pull out from under them. Their future is a little bit different, but we have to be sure, and the government should be thinking about how it is that we can ensure that steps can be taken so that the bottom does not fall out of these markets.
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Of course I am very much in support of marketing boards and would want the government to consider ways that we could ensure long-term support for those people who chose to get into this industry.
But as well the government has to very much consider what the long-term impacts are on the aquifers and the amount of water that is being used. I think much more has to be done in the area of capturing surface water rather then draining aquifers, that we look at ways to capture surface water that runs off each year and maintain those supplies of water rather than continuing to depend on the aquifers.
So those are the kinds of things that we have to think about. Yes, the industry can grow; yes, it is important for the province, but we cannot just grow cheap potatoes for the factories to provide a product for export. At this point our potato producers are getting a fair return for their product. We have to think long term. Manitoba does have good soil quality in southern Manitoba and we have the ability to produce good quality potatoes.
I am not so interested in taking over from Prince Edward Island on some title as to whether or not we are the biggest potato producer. I am more interested in the quality of life of people who are involved in the industry. I am more concerned in ensuring that what we are doing is done sustainably, and I am interested in the government committing to research that will ensure that we do not face difficulties that other countries have faced when disease affects a crop.
So there are things that the government should be doing, but I do not think that we should just be putting forward a resolution just to pat ourselves on the back. We have to talk about how we can better the quality of life for people and ensure that long-term production increases.
At the same time as we are talking about potato producers, we seriously have to think about what is happening to other producers in this province, such as the cattle producers. I know the Minister of Agriculture (Mr. Enns) made a commitment I think about a year ago that he was going to devote himself to seeing what could be done to improve the livestock industry and the cattle industry in this province. I look forward to suggestions, because those are a challenging group of people, people who have faced big challenges.
The Minister of Industry, Trade and Tourism (Mr. Downey), Madam Speaker, seems to be interested in speaking on this. I can assure him that in a few minutes I will sit down and, if he has comments to add on it, I would be happy to listen to him. He talks about lack of agriculture policy. I can assure the minister that we have very firm agriculture policies and we are quite committed to the farming community and to people involved in the industry. What we have to do is ensure that all sectors of the agriculture industry have an opportunity to make a living.
We have to look at diversification. The potato industry is certainly one that is a way to diversify. We have to look at other opportunities for diversification. But one of the things we have to remember is that we are also exporters of grain and we will always be exporters of grain. There is no way that we would be able to raise enough livestock and cattle or hogs to use all of our grain, whether it is cattle, pigs, chickens, whatever we want to raise. There is always going to be some export and we have to think about those people. If we look at the amount of grain that we produce in this province right now, it would be very difficult for us to put it all through livestock.
There are very interesting challenges facing Manitoba agriculture producers at this time. Research is key to how we deal with it. The growth of the potato industry, as I say, is only a very small part of it, but the challenges that we face are ones that we have to consider very carefully, that what we do does not affect our province in a negative way.
When we have a Minister of Industry, Trade and Tourism (Mr. Downey) who says negative things about people who are involved in the industry as well, that does not help us. For example, things that he said about the poultry industry have not helped the poultry industry, when he talks about how the quality of our chickens in this province is not at the standard that they should be.
So as I say, there are many challenges facing the industry. The potato industry is one of the areas that we can grow, and I thank the member for bringing this resolution forward so that we could have the opportunity to discuss it. It is an industry that has the opportunities to grow, but an industry that is also facing some challenges and one that we want to ensure that the people who are involved in can continue to make a reasonable living and not face difficulties further down the road. I look forward to working with people in this industry.
Hon. Harry Enns (Minister of Agriculture): I certainly want to commend and congratulate the honourable member for Gladstone (Mr. Rocan) for bringing this resolution before the House.
I know that certainly I and other members representing farm and rural constituencies bemoan the fact that we spend very little time talking about agricultural issues in this Chamber. I do not complain. The opposition decides more or less what the subject matters are going to be at Question Period or other times that we debate in the House, but let us not forget that the production of food is still the most important activity, the most important thing that we do. The production of abundant food and food surplus to our needs, so we can help those less fortunate either in direct aid, or as we have increased in earning very important export dollars, for us to carry on the social services of this and any other government. So it is a very important issue.
I just want to speak a few minutes to this resolution. Both members that have spoken--the member for Swan River and the member who introduced the resolution--have spoken eloquently to the issue; potatoes are becoming an increasingly more important crop. The honourable member for Swan River Valley (Ms. Wowchuk) is correct. It is not possible to grow them throughout the province of Manitoba. Only slightly more than 1 percent of our farmers are involved in potato production.
All the more reason that all members of this House should be supportive of the wider diversification programs of this government. Whether it is in beef cattle, whether it is in hogs--I underline hogs--whether it is in chicken, in eggs and/or dairy, we have a different situation facing us as a result of the loss of the Crow, and that has to be addressed.
We need support for some of the other special crops, the nontraditional things that we are doing as in elk ranching, as in bison farming, as in the further diversification and use of special crops, bees, beans, the whole range of pulse crops as we refer to them, the lentil crops. I am hopeful that we can successfully introduce, again on a modest scale, but one never knows how that will go, commercial hemp, for the first time in this province, which can certainly be grown as an alternative crop throughout the province of Manitoba.
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We have conducted, the Department of Agriculture that is, trials for the past three years in growing various four-, five-acre plots of commercial hemp in different parts of the province. We have collected data, and we are now reasonably confident that if we can find a support infrastructure, a company that is prepared to take the product, then on a modest basis, perhaps several hundred acres this year, maybe a couple of thousand acres the following year, we will see the introduction of commercial hemp being grown in this province.
Madam Speaker, I want to also comment on a subject matter that the member for Swan River (Ms. Wowchuk) raised, and she is absolutely right about it, particularly coming back to potatoes and other agriculture uses, the need for dependable water supplies and water supplies that do not denigrate our ground water supplies, our aquifers, so that they can be honestly managed in such a way that they will be there for our children and their children and their children. But we need to do that, and it is becoming a critical thing. I am not an alarmist, I do not have a crystal ball, but there are those who say it is quite possible that we could be entering into a drier period, generally speaking, in Manitoba.
El Nino, you could blame it on. You could blame it on some, if you want to believe it, global warming that this portion of Manitoba could become warmer and drier. Madam Speaker, it behooves us that we now do something about it, and we can do something about it. There are plans that could be readily dusted off if we have the political will to build a substantial, additional reservoir on the Assiniboine River.
The particular sitings of these opportunities are well documented by engineering reports done by both our Water Resource engineers and Canada's group PFRA.
Can you imagine what a reservoir of water three times as high as the Lake of the Prairies that makes my colleague the Minister of Rural Development's (Mr. Derkach) constituency so famous in this province, can you imagine that kind of a reservoir in the middle, in the central part of the country, from which pipeline water could go to all parts of the province? Can you imagine if we looked at lesser streams, like the sewers, and developed them to some of their potential, what we could do in increasing the value of that southwestern portion of the province's agricultural land base which regrettably suffers chronically from shortages of water?
Now that we see opportunities, whether it is hogs, whether it is potatoes, whether it is other special crops, that these opportunities in fairness to past ministers and past governments were not always there as attractive as they are today. It is now in this decade as we move into the new millennium that these opportunities are making themselves known in the province. We as government have a responsibility in creating the infrastructure, the climate for us to take advantage of them.
So I, of course, support this resolution, would like to see the resolution come to a vote right about now, but I attach to it that we really ought to be taking advantage of creating for us and for all time the dependable supplies of water that would help the potato industry and help all other kinds of agricultural users of water, and at the same time, husband our water in a sustainable way. Thank you very much, Madam Speaker.
Mr. Doug Martindale (Burrows): Madam Speaker, I rise on a point of order to ask if you can advise us as to the appropriateness of ministers of the government speaking in private members' hour. I believe this has been questioned in the past. I cannot remember whether there has been a ruling from the Chair or not, but perhaps you could investigate and inform the House, either now or in the future, because it seems to me that the purpose of private members' hour is to let private members debate. I wonder if you could remind us as to the precedence and the rule in the Manitoba Legislature. Thank you.
Madam Speaker: The honourable government House leader, on the same point of order?
Mr. McCrae: Yes, Madam Speaker, I heard some of the words uttered by the honourable member for Burrows (Mr. Martindale) under a point of order, and I must say I would like the honourable member just to withdraw the words and pretend that he had never uttered them in the first place. Because the constituents of Brandon West and the constituents of Arthur-Virden and Roblin-Russell and Lakeside and all of the others represented by ministers of the Crown in this place are not second-class citizens. They are entitled to be represented in this House in private members' hour. In my respectful view, I believe, long held in legislatures and parliaments, private members' time is for private members, of which each and every 56 members of this House happens to be.
I am not sure if I heard all of the things the honourable member for Burrows had to say, but I am pretty sure that, upon reflection, he might like maybe to raise this matter at some other time or in some other way, but to say to members of this House, who happen to be privileged to serve as ministers of the Crown that they have no place in private members' hour, is to the people of Brandon West, at least, an outrage. I hope the honourable member--[interjection]
Well, I think I heard the honourable member say that he questioned whether ministers of the Crown ought to be able to participate in private members' hour. If that is the honourable member's question, I say with as much respect for him as I can muster that think about what you are saying. Come to Brandon West and explain that question to my constituents who, on occasion, need to be represented in this House during private members' hour or any other time. There are no second-class citizens, and there are no second-class members of this House.
Madam Speaker: Order, please. On the point of order raised by the honourable member for Burrows (Mr. Martindale), I think perhaps there is some confusion between members' statements and private members' hour. I have recognized in my duration as Speaker many ministers, and I believe the former Speaker did as well, and there are no rulings or precedents--we have just checked the file--to determine that ministers are not allowed to speak. I believe some of the comments the government House leader made are appropriate, that all members are private members, and this is an hour in which all members may make a contribution.
Members' statements are very different, and our rules are very explicit. A minister of the Crown may not speak to a matter that falls under his or her portfolio as minister of the Crown, but I am afraid that the honourable member for Burrows does not, in my opinion, have a point of order.
First of all, Madam Speaker, I commend the member for Gladstone for having the courage to bring up the word "potato" and put it in writing and get the spelling correct. It is a word that has caused one former Vice President of the United States a little bit of grief in the spelling of potatoes and some embarrassment, so I commend the member for Gladstone for having the courage to bring it forth in such a forthright manner.
Madam Speaker, a great Canadian artist by the name of Stompin' Tom Connors was one who spent some time in his own unique fashion promoting the potato industry in Canada. For Stompin' Tom Connors, it was a matter of promoting the Prince Edward Island potato: the spuds were big in the back of Bud's rig and they're from Prince Edward Island. To compete, maybe, I could suggest that the government maybe consult some Manitoba artists, Manitoba musicians. We do have a lot of them. I think maybe an idea to add in on this resolution was maybe the concocting of an official Manitoba potato song. Maybe we can get the same kind of play nationally as Prince Edward Island did on the back of Bud's rig. If we are going to call ourselves the Potato Capital of Canada, if we are going to shoot to get national recognition, I would suggest that there are many creative ways that this government can go about putting forth some ideas on how to compete with our friends in Prince Edward Island.
Madam Speaker, a dozen years ago or so I was in Prince Edward Island, and I saw first-hand the potato growth, the potato industry. I witnessed first-hand the number of people in Prince Edward Island that are employed in the potato industry, and I saw the good things in that province that have developed because of the growth of the potato industry in P.E.I. There is no reason why we here in Manitoba cannot have a viable, stable potato industry. There is no reason why we would not want that, and I think it is going to be pretty obvious that wherever you go in Manitoba, you will see that there will be support for a strong, diversified farm economy. I think you will see that, within that strong, viable farm economy, people will want a strong potato component within that farm agricultural strength. That is a good thing.
The thing that I want to stress is that the potato industry is part of the overall agricultural economy, and the agricultural economy is again part of the entire provincial economy, and as we from rural Manitoba understand, that is a very important point that we have to keep making over and over and over again until people right across the whole province understand how important agriculture is to our overall economy.
Even though the number of people involved in farming in the province might be a small amount, the Minister of Health--sorry, the Minister of Agriculture (Mr. Enns). Agriculture is a big part of health, too. The Minister of Agriculture keeps reminding us it represents 3 percent of people in the province who were involved in making their incomes through farming. Despite that, despite so few people being involved in agriculture, we still represent a much larger piece of the pie in the overall Manitoba economy. I do not think people give farmers enough credit in this province. Whether they are talking about wheat and grain and oilseed production, whether they are talking about cattle, whether they are talking about any kind of farming including potato farmers, I do not think they get enough credit for the amount of work that they do in this province. The value of their work, I think, is underestimated.
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Madam Speaker, everything I have said in a general way applies, I believe, to what is being put forward to us here by the member for Gladstone (Mr. Rocan) in his resolution dealing with the potato industry in Manitoba. He correctly points out that it is a rapidly expanding industry. Now, whenever you deal with a rapidly expanding sector in a resource-based economy like ours, whenever you deal with something that is rapidly expanding, you have also got to be very aware of the consequences of that rapid expansion.
In this case, as my colleague the member for Swan River (Ms. Wowchuk) pointed out, in the case of potatoes, one of the first things we have to consider is how much water the potato industry is going to soak up as it grows. If it is rapidly expanding, then I would suggest that this government has to be very prudent when it comes to licensing irrigation and when it comes to the amount of water that we take out of the aquifers that feed our potato industry.
Along those lines, a couple of years ago I was fortunate enough to be invited down to southwest Manitoba to tour through some of the areas in which irrigation licences had been given out. I was very pleased to go and take part in a tour throughout the southwest portion of Manitoba in the south of Souris area, south of Virden, Pipestone area, all through that part of the province where hopefully, as we rapidly expand the potato industry, other parts of our agricultural industry will not be pushed to the side. Despite the fact that the Minister of Industry, Trade and Tourism (Mr. Downey), who represents some of these very farmers who were talking to me, despite his assurance that it would never be the case that the potato industry would push others to the side, like cattle producers, his own constituents told me that that is exactly what was happening in the area. They were not very happy that the draw-down on the Assiniboine Delta Aquifer was having a negative effect on the dugouts in their area and the amount of water that is available to the local cattle producers and grain farmers that I talked to two years ago in that area.
Of course, their other worry was that the provincial government has lost control of the number of licences that are being given out for people to go and do the irrigation. The words that the farmers in that area used when they described this to me was illegal irrigation, because they were not licensed.
An Honourable Member: Never.
Mr. Struthers: Now, never would this government do something like that, I am assured by the Minister of Industry, Trade and Tourism, but this is what the farmers in the area were telling me.
If you are going to have a rapid expansion of the potato industry, it would make sense that you would get as much consensus as you could from all the producers who depend on the Assiniboine Delta Aquifer. That just makes good common sense.
Madam Speaker, the member for Gladstone (Mr. Rocan) makes some good points in the resolution that he brings forward, which is why I am glad that he brought it forth today. He pointed out that not only are there almost 200 commercial growers of potatoes, 196 according to the member's resolution, but some 1,500 other Manitobans are employed in the processing of the potatoes right here in Manitoba.
For a lot of years we have talked about adding value to the raw materials that we produce in this province. This is a good example of where you are actually adding some value to a raw product. That, I think, is a good thing. We on this side think that is a good thing. Adding value to a crop along with providing more avenues for farmers to diversify their own particular operations is a good thing.
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The other thing that I commend the member for Gladstone (Mr. Rocan) on is to point out the overall worth of the potato industry within Manitoba. He pegs it at some $2.5 million in 1996. But the one thing that I think we have to keep in mind always, whether you are talking about potatoes or whether you are talking about the hog industry, is that when we do anything quickly, which was what is suggested here with rapid expansion, at the same time, we do not leave common sense behind us in a hell-bound goal of simply providing for development.
Madam Speaker, something that I wanted to point out just in the general context of Manitoba agriculture is where potato production fits in today. Grain and oilseed farmers make up just about 56 percent of Manitoban farmers--this was according to figures in 1996--56 percent were grain and oilseed farmers; cattle farmers represented 23.5 percent; and less than 1 percent of the province's farmers plant potatoes.
So it is all well and fine for this government to key in on 1 percent of agricultural production and try to expand that or try to diversify within that or try to add value to that. That is fine. But what we need to do is expand in lots of other areas. I think what we also need to do is recognize some of those areas in which we can expand.
One thing that I think is a positive step is encouraging farmers to grow hemp. That is something that I think has unlimited opportunities for Manitoba producers from one end of this province to the next. I have always been a supporter of farmers being able to diversify into hemp, and I thought I had a pretty good understanding of all the things that you could produce from hemp until recently when I was approached by some constituents in Dauphin who tripled the number of products that I knew of that could be used from hemp. I think, again, the public out there would be very interested to know all of the uses of hemp, other than the traditional ones that we already know.
So, Madam Speaker, I congratulate the member for Gladstone (Mr. Rocan) for bringing forth this topic for us to debate today, and I will save some time for others who want to put some words on the record as well.
Thank you, Madam Speaker.
Mr. Peter Dyck (Pembina): I, too, would like to put a few comments on the record today in support of the resolution that was brought up by the member for Gladstone (Mr. Rocan). I would just like to bring to mind, to the members opposite and on this side of the House, some of the things that are taking place within southern Manitoba. I believe that it is not really that they were the pioneers; on the other hand, they were some of the first producers of potatoes in the province and doing it in a commercial basis.
It brings to mind Kroeker Farms, a potato company which was in the production of potatoes. They have been in it for many years, and today they are growing 3,800 acres of potatoes on their farm, and, certainly, they have added to the economic thrust within the southern Manitoba area.
I would like to just put a few comments on the record today regarding irrigation. Certainly, irrigation is also something that Kroeker Farms and some of the other companies pioneered in doing it on a commercial basis with potatoes. It is a big investment, getting into the whole area of irrigation. Some of the discussions that I have had with those who are irrigating and who are continuing to expand their acreages with irrigation say that the cost of production, including land, is approximately $4,000 per acre. That is a big amount of money, and, certainly, I recognize what the honourable member for Swan River (Ms. Wowchuk) was saying, that there are some big costs in the production of potatoes, and we need to continue to support the industry in that.
Madam Speaker, in order to be able to irrigate you need to have water. I would like to go on record as promoting a dam to be placed on the Pembina River. I believe that as we are going through the study with the International Joint Commission, they are looking at any of the tributaries that are adding to the flood problems within the Red River and are looking at the Pembina River as a possible area for the retention of water.
Madam Speaker, that, of course, falls within the constituency that I represent and would have many, many added features for the area. As we look at irrigation, certainly there is a lot of water that is needed. Rather than sending all the water south, and then ultimately it goes east and then heads north towards the lakes, if we could retain that water and use it in a staged way throughout the summer for irrigation, it would be a big benefit to our area in southern Manitoba.
Not only would it enhance the area of irrigation, it would also assist in the value-added industries such as hogs and cattle and any other wet industries that would be able to locate within southern Manitoba.
I know that they are looking at the construction of a dam. I know that in 1980 they looked at it and, due to circumstances at that time, they were not able to proceed. But, certainly, I would encourage that we, together with the federal government, and of course the U.S. government because this is an international waterway, but very, very seriously look at the possibility of collecting and holding back some of this water that could be used for irrigation, of course, as potable water, as well.
I also realize as time has been progressing that in southern Manitoba we have been making the man-made dugouts which is a way of retaining water and are using it for irrigation. Again, rather than sending all the water east toward the Red River, we are retaining the water, we are holding it back and using this as a resource for the area in production of potatoes and other irrigation.
Madam Speaker, one other area that I find is really valuable and an economic boost for the area is the fact that the culls are used in feedlots, and I know that all the culls that are presently produced by the potato growers are used as food in feedlot. Of course, this is a value-added commodity as well.
Also, the area of machinery, trucks, repairs, labour, fertilizer, fuel, herbicides, pesticides and the construction industry have certainly benefitted by the expanding potato acreage within our area. Now, I realize that it is not only exclusive to the southern Manitoba area, but certainly has added value and economic benefit to other areas within the province.
So I certainly do support this resolution. It is good to see that we are continuing to expand our acreage within Manitoba. It would be certainly our dream that we become the No. 1 producers of potatoes within Canada, and it would certainly be an economic benefit to the province.
I believe my time is almost up, and I want to thank you for this opportunity.
Madam Speaker: Order, please. When the matter is again before the House, the honourable member for Pembina (Mr. Dyck) will have nine minutes remaining.
The hour being 6 p.m., this House is adjourned and stands adjourned until 1:30 p.m. tomorrow (Tuesday).