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“Three years ago the Canadian Wheat Board was valued at $1 billion. Today it’s being given away to a U.S. multinational and Saudi Arabian government,” said James Clancy, NUPGE National President.
Ottawa (22 April 2015) — The terms of the deal for privatizing the Canadian Wheat Board mean that it has been given away to the Saudi Arabian government and a U.S.-based multinational.
Canadian Wheat Board sold to international G3 Global Grain Group
Under the terms of the deal, G3 Global Grain Group, which is jointly owned by a multi-billion dollar agribusiness corporation called Bunge Canada and the Saudi Agricultural and Livestock Investment Company, will acquire 50.1 percent of the Canadian Wheat Board. In exchange, they will invest $250 million to expand the Canadian Wheat Board’s operations.
None of the purchase price is going to farmers or the federal government — even though it was the hard work of farmers and federal government resources that built the Wheat Board.
“Three years ago the Canadian Wheat Board was valued at $1 billion. Today it’s being given away to a U.S. multinational and Saudi Arabian government,” said James Clancy, National President of the National Union of Public and General Employees (NUPGE).
$170 million of public funds spent promoting privatization
But giving away a national asset that was valued at $1 billion three years ago isn’t enough for the federal government. $170 million in public funds was given to the Canadian Wheat Board to help promote privatization.
Farmers lose control of Canadian Wheat Board
Before the federal government started trying to privatize the Canadian Wheat Board, 10 of the 15 directors were elected by farmers. In elections for directors, farmers supported candidates who wanted to keep the Canadian Wheat Board as a publicly controlled body with a sole responsibility for marketing Canada grain internationally.
Farmers support for keeping the Canadian Wheat Board as a public monopoly was confirmed in 2011, when 62 per cent of farmers voted against the changes the federal government was proposing.
With privatization, farmers lose control of the Canadian Wheat Board. The so-called Farmer Equity Plan is little more than a customer loyalty program. Farmers won’t receive shares in the Canadian Wheat Board. That leaves them without a voice in how the Canadian Wheat Board is run. And the value of their equity is capped at $250 million, no matter how well the company performs.
Secrecy around privatization reaches new depths
Preventing the public from finding out how much they’re paying for privatized services or what obligations privatized services must meet has become routine. “Commercial confidentiality” is used to justify keeping key details secret.
But the privatization of the Canadian Wheat Board reached a new low when it came to secrecy. Even financial information from when it was public is being kept secret. The federal government has refused to release an audit of Canadian Wheat Board assets.
“Even after years of bad deals where a blinkered ideological commitment to privatization means the public gets taken for a ride, the Canadian Wheat Board privatization looks awful,” said Clancy.
NUPGE
The National Union of Public and General Employees (NUPGE) is one of Canada's largest labour organizations with over 340,000 members. Our mission is to improve the lives of working families and to build a stronger Canada by ensuring our common wealth is used for the common good. NUPGE