July 9, 1999
(Forest Resources and Agrifoods)

Newfoundland and Labrador asks for increased funds under the Safety Net Agreement

Federal, provincial and territorial agriculture ministers closed their annual meeting after spending two intense days examining the farm safety net system and also how Canada's trade policy can play a critical role in improving farm incomes.

Kevin Aylward, Minister of Forest Resources and Agrifoods, noted that it was an excellent conference with a lot accomplished. "We had the opportunity to speak on important issues related to the next round of the World Trade Organization (WTO) talks and future funding levels for the agriculture industry of Newfoundland and Labrador," said the minister.

Preparations for the upcoming round of World Trade Organization talks were a high priority during the Prince Albert meeting. Ministers recognized the impact of low commodity prices and the need for a more open international trading environment. To that end, they exchanged views on Canada's initial negotiating position in the upcoming WTO talks, scheduled to begin in November.

"It was important for us to stress our position on WTO, more particularly, that the supply management system is an important sector of our province and that it must be maintained in its present form," said Mr. Aylward "Seventy per cent of our agriculture industry's gross sales are related to the supply management commodities. The federal government must not weaken its resolve on this issue."

Ministers discussed the current farm income situation, resulting from low prices and adverse weather, that is affecting many parts of the agriculture industry across the country. Ministers reviewed preliminary assessments of the various programs under the current farm safety net system and discussed at length the need for a long-term disaster assistance program. They set a firm timetable for next steps.

"In November, the provincial ministers will analyze the future direction of the national safety net system. These will be discussed fully with industry. A decision will be made, at that time, on a mechanism for funding allocations among provinces. The implementation of a national five-year program will be determined in February 2000.

"I was very pleased with results of discussions for safety nets. In the record of decision, Newfoundland and Labrador was highlighted for special consideration for increased allocation. It is fair to say that due to our province's greater needs for agriculture development funding that the federal government and the other provinces will support our bid for increased funding levels," stated Minister Aylward.

Contact: Cynthia Layden-Barron, Communications, (709) 729-6183.

1999 07 09 4:20 p.m.