Friday, July 8, 2011
In the CWB’s new document, “Dismantling the Canadian Wheat Board: what's at stake”, it talks about how CWB operations are made possible by federal government guarantees:
“The guarantees underwrite initial payments for farmers and the organization's financial borrowings. The CWB and its investors have never had to call upon the borrowing guarantee. The guarantee on initial payments is rarely used. Taxpayers do not fund the CWB.”
So, the government guarantee (taxpayers) covers deficits in the pool accounts that occur when the CWB miscalculates and ends up paying farmers more than what was generated in sales.
In a recent letter to farmers, CWB Chairman Allen Oberg explained why he and others on the CWB board believe that farmers should decide on the future of the CWB:
“...we pay for the CWB, we run it through the farmer-controlled board of directors, and we should decide its future.”
Put another way, “taxpayers don’t fund the CWB”, and those that “pay” for the CWB, get to vote in the CWB’s survey that they like to call a plebiscite.
BUT did you know...
Since 1968, the CWB has had a total of 12 individual pool deficits totaling $1.349 BILLION.
Let me say it again, with a different spin.
Canadian taxpayers from Newfoundland to BC have paid $1.349 BILLION to the Canadian Wheat Board because it made a few mistakes in pricing to farmers.
Still want to say taxpayers don't fund the CWB? Still want to say only farmers pay for the CWB?
Posted by John De Pape at 2:22 PM