Martha Hall Findlay, Executive Fellow at The School of Public Policy, argues that the time has come to dismantle Canada's supply management regime, especially given the acceptance of Canada into the ...
Author Martha Hall Findlay Says Politicians Have Little to Fear
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OTTAWA, June 22, 2012 /CNW/ - At a media conference held today by The
School of Public Policy, Martha Hall Findlay, former Liberal MP, issued
a ringing economic and political challenge to supply management in
Canada. In a report published by The School and focusing on dairy,
Hall Findlay called supply management "byzantine", a stumbling block to
Canada's full participation in international free trade arrangements,
and grossly unfair to Canadian consumers and farmers alike. Hall
Findlay's analysis finds that as a result of supply management,
Canadians pay 2-3 times as much for milk as do consumers in the United
Further, she describes how Canada's insistence on this protection makes
it difficult to open access to international markets. This means that
all other Canadian enterprises that rely on trade—including most of the
farmers in the non-supply-managed sectors—are often denied lucrative access to some of the
world's largest and rapidly growing markets.
Canadian politicians have refused to address the supply management issue
because the politics have been deemed toxic - votes are perceived to be
However, Hall Findlay's report goes beyond economic analysis and
examines the electoral implications of challenging supply management.
She finds that despite every effort on the part of the dairy lobby to
promote fear, political concerns are no longer valid. Since 1971 (when
supply management in dairy started), the number of Canadian dairy farms
has dropped by a staggering 91%.
"Based on electoral analyses of the ridings where these last few dairy
farms are concentrated, even if dismantling supply management
negatively swayed dairy stakeholder votes, there are few, if any,
ridings where this would be enough to plausibly swing
elections—particularly compared to the votes of all those in those same
ridings who would actually benefit. Even if such a worst-case scenario
had happened in 2011, we'd still have a Conservative majority," said
Martha Hall Findlay.
"More importantly, though," she added, "dismantling supply management is
not something that should be feared by the dairy sector. It is possible
to dismantle supply management in a way that not only works well for
dairy farmers, but which can leave them even stronger."
The author recommends a plan based on a model used by Australia,
involving compensation and transition funding for farmers for 8-10
years. Funding would come, not from government coffers, but from a
temporary consumer levy on milk that would still mean retail prices
lower than consumers are paying now, and only during the transition
period. After the transition period, consumers (as well as processors,
restaurants—and the farmers) would benefit from the full free market,
both domestic and international. Done properly it could be a win-win
for consumers, farmers—and even politicians.
The report can be found online at www.policyschool.ucalgary.ca/publications.
Video with caption: "Martha Hall Findlay, Executive Fellow at The School of Public Policy, argues that the time has come to dismantle Canada's supply management regime, especially given the acceptance of Canada into the Trans-Pacific Partnership talks.". Video available at: http://stream1.newswire.ca/cgi-bin/playback.cgi?file=20120622_C3437_VIDEO_EN_15492.mp4&posterurl=http://photos.newswire.ca/images/20120622_C3437_PHOTO_EN_15492.jpg&clientName=University%20of%20Calgary%20%2D%20School%20of%20Public%20Policy&caption=Martha%20Hall%20Findlay%2C%20Executive%20Fellow%20at%20The%20School%20of%20Public%20Policy%2C%20argues%20that%20the%20time%20has%20come%20to%20dismantle%20Canada%27s%20supply%20management%20regime%2C%20especially%20given%20the%20acceptance%20of%20Canada%20into%20the%20Trans%2DPacific%20Partnership%20talks%2E&title=UNIVERSITY%20OF%20CALGARY%20%2D%20SCHOOL%20OF%20PUBLIC%20POLICY%20%2D%20Now%20is%20the%20Time%20to%20End%20Supply%20Management%3A%20Report&headline=Now%20is%20the%20Time%20to%20End%20Supply%20Management%3A%20Report
SOURCE University of Calgary - School of Public Policy
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