OTTAWA, ONTARIO, CANADA - In our Northern neighbor Canada’s House of Commons, MP Scot Davidson’s Private Member’s Bill C-280, the Financial Protection for Fresh Fruit and Vegetable Farmers Act, was tabled for second reading debate. Several trade associations in Canada have voiced their support for this legislation, including Canadian Produce Marketing Association’s (CPMA) Ron Lemaire.
“We are very grateful to MP Scot Davidson for his hard work in bringing this important piece of legislation to the House of Commons,” said CPMA President Lemaire. “We know this is a busy time of the year on Parliament Hill, so we call on MPs to ensure its swift passage through the House. Consumers are very concerned about rising food costs right now, and Bill C-280 would contribute to more stable fruit and vegetable prices because it helps give produce sellers a financial backstop.”
Other associations voicing their support include the Fruit and Vegetable Growers of Canada (FVGC) and the Fruit and Vegetable Dispute Resolution Corporation (DRC). These associations have called on all MPs to carefully consider the positive impact Bill C-280 would have on the fruit and vegetable sector and vote in favor of this bill.
According to the release, this is a critical opportunity for the government to support the fresh produce sector and safeguard Canadian food security. Bill C-280 would establish a critical financial protection mechanism, a deemed trust, for fresh produce sellers in Canada to help secure payment in the case of a buyer bankruptcy.
The deemed trust would operate similarly to the United States model and would not impose any additional cost to the government. Rather, it would help to ensure that fresh produce sellers can continue to support local economies across the country and provide Canadians with safe, nutritious fruit and vegetable products.
“Our members across the country are strong supporters of Bill C-280 and look forward to this bill being passed at second reading and moved on to [the] committee stage for further discussions, debate, and analysis,” said Rebecca Lee, FVGC’s Executive Director.
The perishability of fresh produce, as well as the common industry payment terms, make it impossible for sellers to recoup money lost when a buyer goes bankrupt, continued the release. The recent example of Lakeside Produce in Leamington, Ontario, demonstrates why a financial protection tool is needed to protect our essential sector and food security in Canada.
Visit the Protect Produce Sales website here to learn more about Bill C-280.
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