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The Trudeau government’s latest assault on transparency is buried in Bill C-69

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From the Macdonald Laurier Institute

By Aaron Wudrick for Inside Policy

The new powers granted to the minister of health under Bill C-69 are considerable. For example, they allow the minister to unilaterally make decisions regarding drug approvals and food safety regulations, effectively pulling products off the shelves of stores without the typical procedural safeguards. This concentration of power in the hands of the minister circumvents much-needed scrutiny and risks politicizing health decisions.

As the Trudeau government scrambles to pass its spring 2024 budget measures through Parliament before the summer recess, most of the media’s focus has centred on the budget’s headline measure, the increase in the capital gains inclusion rate. Unusually, Finance Minister Chrystia Freeland chose not to include that change in its main budget bill, saying she would instead soon introduce those measures in a separate bill.

Meanwhile, the remainder of the budget measures are contained in Bill C-69, an omnibus bill that has attracted little media attention. That is a shame, as it contains provisions that warrant closer scrutiny, particularly the proposed changes to the Food and Drug Act. These amendments grant the minister of health sweeping powers, exacerbating the Trudeau government’s longstanding habit of undermining proper procedural channels when it finds them to be inconvenient.

The new powers granted to the minister of health under Bill C-69 are considerable. For example, they allow the minister to unilaterally make decisions regarding drug approvals and food safety regulations, effectively pulling products off the shelves of stores without the typical procedural safeguards. This concentration of power in the hands of the minister circumvents much-needed scrutiny and risks politicizing health decisions. It is not hard to see how such authority could easily lead to arbitrary or politically motivated actions, further diminishing public trust in a health system battered by the COVID-19 pandemic.

Health Minister Mark Holland defends these new powers by arguing that they are necessary for protecting public health swiftly and effectively and suggests that only a “dishonest” minister would misuse such powers. He fails to mention that governance should not rely solely on the personal integrity of individual ministers but on robust, transparent processes that ensure accountability. It is concerning that Holland advocates bypassing established departmental procedures, which raises questions about the motivations behind these proposed changes.

A more appropriate regulatory approach would trust independent agencies, including Health Canada, to oversee the safety of health products. Establishing clear guidelines and procedures for evaluating and removing unsafe products would ensure consistency, fairness, and transparency in decision-making processes.

Unfortunately, this approach contrasts sharply with the Trudeau government’s preference for consolidating power and limiting oversight.

For instance, the Trudeau government has been criticized for its use of secret orders-in-council, which bypass public scrutiny and reduce transparency. These orders often contain sensitive decisions that the government simply prefers to keep out of the public eye.

The government has also allowed the federal access to information system to atrophy, with frequent delays and heavily redacted documents further undermining the principle of open government.

In 2017, the Trudeau government introduced changes that critics argued would limit the independence and effectiveness of the Parliamentary Budget Officer (PBO). These amendments allowed the government to control the PBO’s work plan and staffing, potentially reducing its ability to hold the government accountable. More recently, the government cut the budget of the Information Commissioner’s office, undermining the capacity of an already overwhelmed independent officer of Parliament to hold the government to account, with the commissioner herself noting that “this reduction in my budget will spell long delays for complainants who are seeking information from government institutions.”

Further examples of this troubling trend include the government’s proposal in the early days of the  COVID-19 pandemic that sought to grant the government extraordinary powers to tax and spend unilaterally – without parliamentary approval – for almost two years. Later in the pandemic, the government faced significant criticism from Auditor General Karen Hogan for the lack of transparency and accountability regarding the allocation and spending of tens of billions in relief funds: “I am concerned about the lack of rigour on post-payment verifications and collection activities,” Hogan said in 2022.

Taken together, a clear pattern emerges of a government that regularly seeks to undermine transparency, limit oversight, and concentrate power within the executive branch, and Bill C-69 is just the latest attempt.

The government should back off and drop these proposed new unilateral ministerial powers. Strong regulatory oversight, coupled with transparency and accountability, won’t impair the government’s ability to regulate health products – all while safeguarding democratic principles and public trust.


Aaron Wudrick is the Director of the Domestic Policy Program at the Macdonald-Laurier Institute.

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Bjorn Lomborg

Climate change isn’t causing hunger

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From the Fraser Institute

By Bjørn Lomborg

Surprisingly, a green, low-carbon world produces less and more expensive food, and makes over 50 million more people hungry by mid-century.

Food scarcity affects many people around the world. Canada can help, as the world’s fifth largest exporter of agricultural goods and the fourth largest exporter of wheat. Indeed, Canada exports so much food that measured in calories it can feed more than 180 million people.

We hear often that carbon cuts are a priority because climate change is causing world hunger and that even Canada will be hit by higher prices and less choice. These alarmist claims are far from true, and the recommended policies are counterproductive.

Over the past century, hunger has dramatically declined. In 1928, the League of Nations estimated that more than two-thirds of humanity lived in a constant state of hunger. By 1970, malnutrition afflicted just one-quarter of all people. Since 2008, the world has seen less than one-in-ten of all people go hungry, although Covid and Russia’s invasion of Ukraine have increased the percentage from a low of just over 7 per cent to 9 per cent in 2023.

This positive trend is because humanity has become much better at producing food, and incomes have risen dramatically. For instance, we have more than quintupled cereal production since 1926, and more than halved global food prices. At the same time, extreme poverty has dropped precipitously, allowing parents to afford to buy their children more and better food.

There is obviously still more to do, but securing food for the vast majority of the world has been an unmitigated success in the human development story.

As we move towards 2050, it is likely incomes will keep increasing, with extreme poverty almost disappearing. At the same time, food prices will likely slightly decline or stay about the same, as even more people switch to higher-quality and more expensive foods. All credible predictions foresee even lower levels of malnutrition by mid-century.

The impact of climate change on food supply is often portrayed as terrible, but in reality, it means that things will get much better slightly slower. It will change conditions for most farmers, making conditions better for some and worse for others. In total, it is likely the net outcome will be worse, but only slightly so. One peer-reviewed estimate shows the climate impact on agriculture is equivalent to reducing global GDP by the end of the century by less than 0.06 per cent.

CO₂ is a plant fertilizer, as is well-known by enterprising tomato producers, who routinely pump CO₂ into their greenhouses to boost productivity. We see a similar impact across the living world. Since the 1970s, the increasing CO₂ concentration has caused the planet to become greener, producing more biomass. Satellites show that since 2000, the world has gotten so many more green leaves that their total area is larger than the entire area of Australia.

In total, models show that without climate change, the global amount of food, measured in calories, produced in 2050 will likely increase 51 per cent from 2010. Even under extreme, unrealistic climate change, it will increase 49 per cent. Across all models and scenarios, the difference in calories per person is one-tenth of a percent.

Deaths from malnutrition chart

The graph shows how many children died each year from malnutrition from 1990 to 2021, with the World Health Organization estimating the impact of climate change up to 2050. Since 1990, the average number of children dying has declined dramatically from 6.5 million to 2.5 million each year. This is an incredible success story.

The WHO expects the decline to continue, with annual deaths halving once again. But in a world with climate change, deaths will still decline but slightly more slowly. Unfortunately, the lower death decline in 2050 created almost all the media headlines from the WHO study, entirely ignoring the dramatic reduction in overall death.

The overarching response from climate campaigners is to demand radical emission cuts to help. But this ignores two important facts. First, trying to affect change through climate policy is the slowest, costliest and least impactful way to help. While even significant climate policy will take over half a century to have any measurable impact and cost hundreds of trillions, it will at best help increase available calories by less than one-tenth of a percentage point. Instead, a focus on increased economic growth is over one hundred times more effective, increasing calorie availability by over 10 per cent. Moreover, it would work in years instead of centuries, and deliver a host of other, obvious benefits.

Second, cutting emissions increases most agricultural costs, like pushing up prices for fertilizer and gas for tractors, along with increased competition for land for biofuels and reforestation. Uselessly, most models just ignore these costs — like the WHO simply imagining a world without climate change. But it turns out that the impact of cutting emissions harms food production much more than climate change does. Surprisingly, a green, low-carbon world produces less and more expensive food, and makes over 50 million more people hungry by mid-century.

While we are being told stories of climate agricultural catastrophes and urged to cut emissions dramatically, the evidence shows that the impact is tiny, making the world improve slightly less fast. The proposed cure is worse than the problem it seeks to fix.

Bjørn Lomborg

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Agriculture

It’s time to end supply management

Published on

From the Frontier Centre for Public Policy

By Ian Madsen

Ending Canada’s dairy supply management system would lower costs, boost exports, and create greater economic opportunities.

The Trump administration’s trade warfare is not all bad. Aside from spurring overdue interprovincial trade barrier elimination and the removal of obstacles to energy corridors, it has also spotlighted Canada’s dairy supply management system.

The existing marketing board structure is a major hindrance to Canada’s efforts to increase non-U.S. trade and improve its dismal productivity growth rate—crucial to reviving stagnant living standards. Ending it would lower consumer costs, make dairy farming more dynamic, innovative and export-oriented, and create opportunities for overseas trade deals.

Politicians sold supply management to Canadians to ensure affordable milk and dairy products for consumers without costing taxpayers anything—while avoiding unsightly dumping surplus milk or sudden price spikes. While the government has not paid dairy farmers directly, consumers have paid more at the supermarket than their U.S. neighbours for decades.

An October 2023 C.D. Howe Institute analysis showed that, over five years, the Canadian price for four litres of partly skimmed milk generally exceeded the U.S. price (converted to Canadian dollars) by more than a dollar, sometimes significantly more, and rarely less.

A 2014 study conducted by the University of Manitoba, published in 2015, found that lower-income households bore an extra burden of 2.3 per cent of their income above the estimated cost for free-market-determined dairy and poultry products (i.e., vs. non-supply management), amounting to $339 in 2014 dollars ($435 in current dollars). Higher-income households paid an additional 0.5 per cent of their income, or $554 annually in 2014 dollars ($712 today).

One of the pillars of the current system is production control, enforced by production quotas for every dairy farm. These quotas only gradually rise annually, despite abundant production capacity. As a result, millions of litres of milk are dumped in some years, according to a 2022 article by the Montreal Economic Institute.

Beyond production control, minimum price enforcement further entrenches inefficiency. Prices are set based on estimated production costs rather than market forces, keeping consumer costs high and limiting competition.

Import restrictions are the final pillar. They ensure foreign producers do not undercut domestic ones. Jaime Castaneda, executive vice-president of the U.S. National Milk Producers Federation, complained that the official 2.86 per cent non-tariffed Canadian import limit was not reached due to non-tariff barriers. Canadian tariffs of over 250 per cent apply to imports exceeding quotas from the European Union, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, and the Canada-United States-Mexico Agreement (CUSMA, or USMCA).

Dairy import protection obstructs efforts to reach more trade deals. Defending this system forces Canada to extend protection to foreign partners’ favoured industries. Affected sectors include several where Canada is competitive, such as machinery and devices, chemicals and plastics, and pharmaceuticals and medical products. This impedes efforts to increase non-U.S. exports of goods and services. Diverse and growing overseas exports are essential to reducing vulnerability to hostile U.S. trade policy.

It may require paying dairy farmers several billion dollars to transition from supply management—though this cartel-determined “market” value is dubious, as the current inflation-adjusted book value is much lower—but the cost to consumers and the economy is greater. New Zealand successfully evolved from a similar import-protected dairy industry into a vast global exporter. Canada must transform to excel. The current system limits Canada’s freedom to find greener pastures.

Ian Madsen is the Senior Policy Analyst at the Frontier Centre for Public Policy.

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