Cattle lobby faces major downsizing from new Alberta law
Cattle lobby faces major downsizing from new Alberta law
Tory bill allows ranchers 'to vote with their dollars'
By Jason Markusoff, with files from Jason Fekete, Calgary Herald, Calgary Herald;May 6, 2009 7:19 AM
CALGARY - The group that markets Alberta's beef to the world stands to be drastically downsized by new provincial legislation that would let ranchers demand refunds for their mandatory levies.
Alberta Beef Producers, the province's main cattle lobby, takes in $13 million a year through a $3 charge every time a head of cattle is sold within Alberta.
It's democratic to let the province's 28,000 ranchers to decide whether they're happy with how Alberta Beef Producers use their dollars by giving them the right to get refunds, Agriculture Minister George Groeneveld said. "It gives them a chance to vote with their own dollars, so to speak, and as a Conservative government and myself, I think that's where we should be," he said.
The bill, which was introduced this week and would take effect in 2010, also covers levies to the much smaller Alberta Lamb Producers, Alberta Pork Producers and Potato Growers of Alberta.
The minister brushed off suggestions that the same logic could apply to non-refundable civic or provincial taxes, reasoning that in other sectors businesses aren't forced to join and pay into an organization.
Alberta Beef, which backed the provincial government through the trade crisis brought on by mad cow disease, has reacted with fury.
Its leaders worry its budget for re-search, advocacy and promotion pro-grams will be plunged into jeopardy --or at least uncertainty--since it's impossible to know what proportion of its 28,750 member farms will want their levies refunded.
"Alberta government ignores democracy," the headline of the group's news release said. The Tories should have let organization members decide by plebiscite, about 15 years after the last vote narrowly supported a non-refundable levy, Alberta Beef chairman Rick Burton said.
He expects a chain reaction of large-scale producers and others trying to avoid the levy costs but still freeloading and reaping the benefits of Alberta Beef's promotion and advocacy.
"Once one big player pulls his out, then the next big player is obligated to because he's at a competitive disadvantage," Burton said
"Then all the small and medium operators are paying the cost for everybody and others are reaping the benefit of the activities of the organization but paying none of the cost."
The refund would save southeastern Alberta rancher Harold Halvorson about $900 to $1,200 every year.
"Ours would be big enough that would be worthwhile getting," Halvorson said as he finished up a day of calving at his farm near Foremost.
"And how many times does the same critter go through the sale ring, eh?They get paid each time it goes through."
Edzo Kok, executive director for the 120-farmer potato group, said few would likely want fee refunds, but said that any losses will be difficult and cause divisions among growers.
"If we didn't have the funding we have today, we might have to look at cutting some of the services to them, depending on how much our shortfall was," he said.
Main cattle associations in Saskatchewan, Manitoba and Brit-ish Columbia allow members to seek levy refunds, but not for the $1 of it that goes to national groups such as the Beef Information Centre and influential Calgary-based lobby firm Canadian Cattlemen's Association.
Under the new bill, Alberta's levy refunds would include the national portion. That could spell trouble for those federal groups, since 40 per cent of Canada's cattle herd are in this province.
Groeneveld said another referendum would further divide the beef sector, and that a provincial survey found a nearly 50-50 split on the issue.