Supply management: dairy producers are partially reassured by Duhaime’s speech

MONTREAL | If they take power, the Conservatives will pass a law requiring the government to find a dollar in savings for every dollar spent, a measure that is inflexible in the eyes of an economist.

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“We don’t want to change the current system. There is nothing in our program or in our platform that wants to change the current system. It’s the status quo in this regard,” said the Conservative leader in response to questions from journalists who asked him if he would commit to defending supply management.

“I’ve had personal opinions in the past, but that’s not party policy in any way,” he added. However, the health crisis would have changed his perspective due to the return of “protectionist reflexes”. However, the health crisis would have changed his perspective due to the return of “protectionist reflexes”.

A few moments earlier, Éric Duhaime had delivered a speech to members of the Union des producteurs agricole. The latter were obviously aware of the former radio host’s sentiment towards supply management, which he once described as “a cartel defending the hard fat producers of the system”, and they told him asked if they would be ready to go to the barricade to defend the national agricultural policy framework.

Accompanied by two candidates who are themselves dairy producers, the Conservative leader argued that supply management is a federal government responsibility, and that his party’s platform does not contain any element on this subject.

Dissatisfied with the response, the president of Quebec dairy producers, Daniel Gobeil, returned to the charge a few minutes later.

“The Government of Quebec still has a legislative role to oversee the regulatory framework for the management of agricultural markets on joint plans. I would like the government to commit to respecting these frameworks (…). Yes, it’s federal, but it still requires a commitment from Quebec,” said Mr. Gobeil.

Éric Duhaime let his Côte-du-Sud candidate, Frédéric Poulin, answer for him. “We have to make arrangements so that we are consistent and allow production to be maintained,” said the latter.

Doubts

After the meeting, Daniel Gobeil said he was “reassured” by the presence of two dairy producer candidates alongside Éric Duhaime, and by the Conservative leader’s commitment to “not touch” supply management.

But he would have liked Éric Duhaime to go a step further, as supply management represents 40% of Quebec’s farm receipts. “You can’t put it all back on the role of the federal government, it takes respect for Quebec law,” he noted. The provincial government must show leadership and defend this system, otherwise it will collapse.”

“Basically, if there is a Canadian agreement, it is because there is a Quebec law on marketing, with a management. If the government of Quebec does not support the maintenance of this system, the rest will fall (…) For example, the retail price of milk is determined by the management of the agricultural market, which is Quebec, ” added Charles-Félix Ross, the general manager of the Union of Agricultural Producers (UPA).

Lack of flexibility

According to some economists, measures aimed at fixing any increase in government spending often lack flexibility.

“What matters is not so much government spending in terms of dollars,” said Florian Mayneris, professor in the economics department at UQAM. It would be better to say that government expenditure should not exceed more than a certain proportion of GDP.”

The government must retain the leeway to spend when needed, for example for emergencies, as provided for in the Conservatives’ proposal, or for infrastructure projects. The question of what the government would do in a situation of budget surplus also arises, according to Mr. Mayneris.

“Why always force the government to save and reduce the debt? If tomorrow, growth in Quebec is significant and the state has more revenue, why couldn’t it spend part of this additional revenue to provide better services to citizens?” he wonders.


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