<a
href=http://ca.reuters.com/article/domesticNews/idCATRE7BF0CQ20111
216?pageNumber=2&virtualBrandChannel=0&sp=true"">D oesn't sound
good for the crazy 8 but who knows?</a>
Draconian to suspend Canada Wheat Board law: judge
Fri Dec 16, 2011 6:08pm EST Print This Article [-] Text [ ]
By Rod Nickel and Randall Palmer
WINNIPEG/OTTAWA (Reuters) - Former directors of the Canadian Wheat
Board asked a Manitoba court on Friday to suspend a new law ending
the board's grain marketing monopoly, but faced skepticism from the
judge.
While Agriculture Minister Gerry Ritz celebrated the newly opened market
for sales of western wheat and barley, the CWB's former chairman and
farmer directors pressed ahead with their court challenge.
"You're asking for a fairly draconian remedy," Judge Shane Perlmutter
said of their request to have the law suspended.
The former directors ultimately want the judge to strike down the law on
the grounds that the former legislation governing the Canadian Wheat
Board required Ritz to hold a farmer vote before changing the 68-year-
old marketing monopoly.
Federal lawyer Joel Katz said that in any case, a stay of the law would
only apply in Manitoba and not the rest of Canada, since the appeal was
before a provincial court.
Despite the considerable uncertainty created by the legal challenge,
Canada's biggest grain handler, Viterra Inc, began offering forward
contracts for the next crop year.
The Conservative government bill became law late Thursday, allowing
Ottawa to take control of the board from farmers who oppose its plans to
create an open market, effective next August.
Ritz told a news conference in Saskatchewan that the farmer directors'
roles ceased to exist with the passage of the bill. "They're now on winter
vacation," he said.
The legislation provides for the removal of the eight farmer-elected
directors, leaving the CWB in the hands of five government-controlled
appointees. The CWB formally pulled out of the court case on Friday
morning.
"This feels damn good," Ritz said. "It's been a long time coming."
For the first time since 1943, farmers, grain handlers and millers can sign
forward contracts for next year's western grains without going through the
Wheat Board.
Viterra was quick out of the gate with its offer of forward contracts on
wheat, durum and barley.
"Viterra anticipates that the industry, farmers, customers and the economy
will see significant benefits as further transportation and logistical
efficiencies are realized in this positive new environment," Chief
Executive Mayo Schmidt said.
CWB President Ian White issued a statement saying the board is still in
operation, though in a much different capacity, and would soon be
announcing new pooling and cash programs for the next crop year.
"Amid all the change, one thing remains the same: the CWB will market
farmers' grain. We will work to achieve the best prices for farmers and
superior service for customers in Canada and around the world," White
said.
Canada's second-biggest grain handler, Richardson International Ltd,
will wait until at least after Friday's court appearances to offer forward
contracts, said Jean-Marc Ruest, vice-president of corporate affairs.
In the Manitoba case, the former directors seek to build on a Federal
Court decision last week that said Ritz had breached the law in not
holding a farmers' vote. It did not strike the law down, nor was it asked to
do so.
Judge Perlmutter set new hearings for January 17-18 on whether to
suspend the law while he decides on the broader question of whether the
new law should be struck down.
Late on Friday he was also deciding whether to grant an immediate
suspension of the law until those January hearings.
If suspensions are granted, Ritz said the government would still proceed
with plans for the revamped CWB. Asked later if it was his government's
practice to ignore court decisions, Prime Minister Stephen Harper said:
"No, it is not."
He added that he certainly did not expect such a ruling.
Western farmers have vigorously debated the value of having the CWB's
marketing monopoly for at least 20 years.
"I am personally looking forward to the freedom to choose where I sell my
first load of wheat and barley," said Alberta farmer Stephen Vandervalk,
president of the Grain Growers of Canada.
Others have long said that marketing freedom comes at the cost of
collectively selling grain for the best price through the CWB.
The court case leaves farmers feeling they're in limbo as they plan next
year's crops, said Doug Chorney, president of Manitoba's Keystone
Agricultural Producers.
"There's a lot of concern about the lack of certainty," he said. "Whether
they're for the board or against the board, I haven't heard of anyone
around here signing contracts yet."
(The case is before the Court of Queen's Bench of Manitoba, Winnipeg
Centre, Court File No CI 11-01-75257. It is between Canadian Wheat
Board, Allen Oberg, Rod Flaman, Cam Goff, Kyle Korneychuk, John
Sandborn, Bill Toews, Stewart Wells and Bill Woods; and Attorney
General of Canada.)
(Editing by Peter Galloway, Rob Wilson and Jeffrey Hodgson)
href=http://ca.reuters.com/article/domesticNews/idCATRE7BF0CQ20111
216?pageNumber=2&virtualBrandChannel=0&sp=true"">D oesn't sound
good for the crazy 8 but who knows?</a>
Draconian to suspend Canada Wheat Board law: judge
Fri Dec 16, 2011 6:08pm EST Print This Article [-] Text [ ]
By Rod Nickel and Randall Palmer
WINNIPEG/OTTAWA (Reuters) - Former directors of the Canadian Wheat
Board asked a Manitoba court on Friday to suspend a new law ending
the board's grain marketing monopoly, but faced skepticism from the
judge.
While Agriculture Minister Gerry Ritz celebrated the newly opened market
for sales of western wheat and barley, the CWB's former chairman and
farmer directors pressed ahead with their court challenge.
"You're asking for a fairly draconian remedy," Judge Shane Perlmutter
said of their request to have the law suspended.
The former directors ultimately want the judge to strike down the law on
the grounds that the former legislation governing the Canadian Wheat
Board required Ritz to hold a farmer vote before changing the 68-year-
old marketing monopoly.
Federal lawyer Joel Katz said that in any case, a stay of the law would
only apply in Manitoba and not the rest of Canada, since the appeal was
before a provincial court.
Despite the considerable uncertainty created by the legal challenge,
Canada's biggest grain handler, Viterra Inc, began offering forward
contracts for the next crop year.
The Conservative government bill became law late Thursday, allowing
Ottawa to take control of the board from farmers who oppose its plans to
create an open market, effective next August.
Ritz told a news conference in Saskatchewan that the farmer directors'
roles ceased to exist with the passage of the bill. "They're now on winter
vacation," he said.
The legislation provides for the removal of the eight farmer-elected
directors, leaving the CWB in the hands of five government-controlled
appointees. The CWB formally pulled out of the court case on Friday
morning.
"This feels damn good," Ritz said. "It's been a long time coming."
For the first time since 1943, farmers, grain handlers and millers can sign
forward contracts for next year's western grains without going through the
Wheat Board.
Viterra was quick out of the gate with its offer of forward contracts on
wheat, durum and barley.
"Viterra anticipates that the industry, farmers, customers and the economy
will see significant benefits as further transportation and logistical
efficiencies are realized in this positive new environment," Chief
Executive Mayo Schmidt said.
CWB President Ian White issued a statement saying the board is still in
operation, though in a much different capacity, and would soon be
announcing new pooling and cash programs for the next crop year.
"Amid all the change, one thing remains the same: the CWB will market
farmers' grain. We will work to achieve the best prices for farmers and
superior service for customers in Canada and around the world," White
said.
Canada's second-biggest grain handler, Richardson International Ltd,
will wait until at least after Friday's court appearances to offer forward
contracts, said Jean-Marc Ruest, vice-president of corporate affairs.
In the Manitoba case, the former directors seek to build on a Federal
Court decision last week that said Ritz had breached the law in not
holding a farmers' vote. It did not strike the law down, nor was it asked to
do so.
Judge Perlmutter set new hearings for January 17-18 on whether to
suspend the law while he decides on the broader question of whether the
new law should be struck down.
Late on Friday he was also deciding whether to grant an immediate
suspension of the law until those January hearings.
If suspensions are granted, Ritz said the government would still proceed
with plans for the revamped CWB. Asked later if it was his government's
practice to ignore court decisions, Prime Minister Stephen Harper said:
"No, it is not."
He added that he certainly did not expect such a ruling.
Western farmers have vigorously debated the value of having the CWB's
marketing monopoly for at least 20 years.
"I am personally looking forward to the freedom to choose where I sell my
first load of wheat and barley," said Alberta farmer Stephen Vandervalk,
president of the Grain Growers of Canada.
Others have long said that marketing freedom comes at the cost of
collectively selling grain for the best price through the CWB.
The court case leaves farmers feeling they're in limbo as they plan next
year's crops, said Doug Chorney, president of Manitoba's Keystone
Agricultural Producers.
"There's a lot of concern about the lack of certainty," he said. "Whether
they're for the board or against the board, I haven't heard of anyone
around here signing contracts yet."
(The case is before the Court of Queen's Bench of Manitoba, Winnipeg
Centre, Court File No CI 11-01-75257. It is between Canadian Wheat
Board, Allen Oberg, Rod Flaman, Cam Goff, Kyle Korneychuk, John
Sandborn, Bill Toews, Stewart Wells and Bill Woods; and Attorney
General of Canada.)
(Editing by Peter Galloway, Rob Wilson and Jeffrey Hodgson)
Comment