Mr. Speaker, I appreciate the opportunity to comment on the question of the member for Frontenac.
Yes, the annual $560 million western grain transportation subsidy is being completely eliminated on August 1. However I point out to the hon. member-and I know he realizes it-that the dairy subsidy is only being reduced by 15 per cent this year and 15 per cent next year. As of August 1, 85 per cent of that support will still be there.
Eliminating the so-called Crow subsidy addresses a longstanding equity concern that has been raised by eastern farmers. The adjustment package reflects the potential impact of eliminating a 96-year old commitment to the western grain sector.
In addition to the $1.6 billion, a multi-year adjustment package of $300 million is being put in place to facilitate the transition to a more efficient transportation system. The amount is not excessive. It is necessary to help grain producers adapt to the change and to compete effectively in international markets against subsidized foreign competition.
It is important to note the dairy industry does not face international competition because of supply management for 90 per cent of its production. Equally important, this government package of reforms to grain transportation is consistent with the position set out by the Quebec coalition on the WGTA.
The package of reforms is fair and balanced with respect to the different situations in different regions and different sectors. Everyone has done his or her share in contributing to deficit reduction. The government does not have a double standard as the hon. member for Frontenac has suggested. It is not true.
Rather, through the budget we offered all Canadians a single standard to strive for that will ensure future growth of the agriculture sector and maintain our competitiveness on the global field.