September 18, 1996
Mr. Jake Hoeppner, M.P.
c/o 914 Confederation Building
Ottawa, Ontario
K1A 0A6
Dear Sir:
Re: Bonus Payments to Producers by CWB Agents
You have asked my opinion regarding whether agents
of CWB (whether operating elevators or mills) may pay producers
additional amounts of money per tonne of wheat sold and delivered
through them to the CWB, on top of the among set by regulation under Section
32(1)(b) of the Canadian Wheat Board Act ("the Act").
The elevator operators and millers have apparently
been paying certain producers as much as $54.00 per tonne on top of the
normal initial price. These payments have been for feed wheat, and
have been described as "premiums" or "selection
allowances".
In some cases the "premiums" were shown
on the "certificate" issued for the Board by the agent under
Section 32(1)(d). In other cases, the "selection allowance"
was not disclosed on the Certificate, but was paid by separate cheque.
It is believed the agents then subsequently
"bought back" the grain in question from the CWB - either for
milling or export.
In my opinion, such payments to selected producers
by the CWB and/or its agents, contravenes Section 32 and 33 of the Act.
Section 32(1)(b) sets the initial price the CWB
"shall... pay to producers" at the time of delivery. No
other additional payments at the time of delivery are authorized.
For the CWB or its agents to pay some producers in
a pool more than others to acquire their wheat would be contrary to the
clear obligation imposed on the Board by Section 33(5) to ensure that
"each producer shall receive, in respect of wheat sold and
delivered to the Board during each crop year for the same grade thereof,
the same price basis Thunder Bay or Vancouver..."
Such conduct also amounts to deliberate
deprivation of the less privileged members of the pool of their
entitlement to an "equitable distribution" of the pool's
surplus under Section 32(1)(d) of the Act.
Section 68(2) of the Act makes it a specific
offence to contravene the Act.
Yours truly,
G. Patrick S. Riley
Taylor McCaffrey
Barristers & Solicitors
Winnipeg, Manitoba

November 7, 1996
Mr. Jake E. Hoeppner, MP
Room 914 Confederation Building
House of Commons
Ottawa, Ontario
K1A 0A6
Dear Mr. Hoeppner:
The investigation by Saskatoon Commercial Crime
Section into the premium payments by ROBIN HOOD MILLS to HUDYE FARMS
INC. is complete. Investigators have examined the information
provided by you along with other evidence, including the written opinion
by lawyer Patrick RILEY of Winnipeg.
On consideration of all the evidence and having
consulted the opinion of the Department of Justice, we have concluded
that the practice of premium payments such as the one made to HUDYE
FARMS does not contravene the Canada Wheat Board Act or its
corresponding regulations.
Our investigation into this matter has been
concluded.
Yours truly,
R.K. Leatherdale, Chief Superintendent
Officer in Charge, Criminal Operations
"F" Division
Criminal Operations
Royal Canadian Mounted Police
Regina, Saskatchewan

November 29, 1996
Mr. Jake E. Hoeppner, MP
Room 914 Confederation Building
House of Commons
Ottawa, Ontario
K1A 0A6
Dear Mr. Hoeppner:
This will serve to formally notify you of our
position on your request of November 19, 1996 through Ms. Debbie
Campbell of your office, for a copy of the legal opinion from the
Department of Justice respecting the alleged contravention of the
Canadian Wheat Board Act.
Your request raises the issue of releasing
internal correspondence between the Department of Justice and its client
departments, to third parties. The opinion was provided to our
investigator in confidence and neither the Department of Justice nor the
RCMP are prepared to release it.
Yours truly,
R.K. Leatherdale, Chief Superintendent
Officer in Charge, Criminal Operations
"F" Division
Criminal Operations
Royal Canadian Mounted Police
Regina, Saskatchewan

March 22, 1999
Mr. Butch Harder
Director, District 10
Box 88
Lowe Farm, Manitoba
R0G 1E0
Dear Butch:
As you know, I have been seeking an accounting for
irregularities between the buy-back prices charged to farmers and the
export prices charged to grain companies during the 1993-94 crop
year. The Court of Appeal ruled in September 1997 that I should
seek an accounting from the CWB Advisory Committee and, as a result, I
brought documentation to you personally early in March 1998. To
date, I have not received your response.
For reference, I have enclosed a copy of
information compiled by my Attorney. I have added a 'Tab 12' which
includes the Appeal Court Ruling and an Affidavit of Trevor Magee where
he states that the buy-back price set by the Canadian Wheat Board
remains constant for a 24 hour period and that both individuals and
companies would be quoted the same prices within that time period.
Once again, on behalf of producers, I would
appreciate an explanation and accounting for these pricing
discrepancies.
Sincerely,
Jake E. Hoeppner, MP
Portage - Lisgar

First Appearing
March 4, 2002
National Post
Prairie Injustice
Does the Canadian Wheat Board, with its monopoly
over Prairie grain sales, obtain a higher price than individual farmers
could themselves? That is the only question that really matters to
the tens of thousands of Western grain producers who are obliged by law
to sell their crops to the board. The board says its monopoly,
buttressed by prosecution powers over farmers who go to market themselves,
is the only way to enable it to get higher international sale prices and
guarantee greater returns to all farmers. Yet even after an
investigation by Sheila Fraser, the federal Auditor-General, farmers are
no closer to knowing whether the board's boast is true.
Ms. Fraser, who released her findings in Winnipeg
on Wednesday, claims the board is reasonably well run. "This
is not the Good Housekeeping Seal of Approval," she said of her
report, although she did "find some good practices." In
particular, Ms. Fraser dismissed the superstition that the board hides
large sums of money from farmers. "Financial accounts and
transactions are being properly recorded and reported," she
explained. Money the board raises through sales is passed on to
farmers with reasonable efficiency.
Interesting though this is, it is beside the
central point, which is whether the monopoly justifies itself by
procuring better prices for farmers. And Ms. Fraser was not
permitted to review sales contracts -- the only way of discovering the
truth. Interview she and her staff conducted with academics and
grain industry consultants found that the board has a good reputation as
a tough bargainer, but there are still no numbers to back it up.
We suspect that the merits of the monopoly are
myth, but we may never know the answer, for Ms. Fraser's examination was
a one-time fluke, permitted only because the federal government needed
to make a concession to the board's detractors in order to get amendment
to the Wheat Board Act through Parliament a little more than three years
ago. There is no plan to let the light of day in on the supposedly
impressive sales figures.
It is unconscionable that farmers may not legally
sell the fruits of their labour to whomever they please, regardless of
the wisdom of doing so. But it adds insult to injury that in being
prevented from doing so, they are not even allowed to very the claim
that they are financially compensated for their loss of market freedom.

The National Post
To the Editor
In response to "Prairie
Injustice" of March 4, 2002
I would like to inform you that of February 12,
1999, I asked my lawyer, Patrick Riley, to make available to the then
Auditor General, Denis Desatuels, one hundred and four (104) Export
Licenses and corresponding country sales contracts prior to his audit of
the Canadian Wheat Board. This information should have been
available to Madam Fraser and her staff during the one time CWB audit
and should not have been ignored. I wrote Madam Fraser on April
10, 2002, asking for an explanation why there were no comments in her
report on the variations of the costs of the Export Licenses. To
date, I have had no reply.
The recent Appointment of Ralph Goodale as Public
Works Minister is an indication that the Liberal Party is in a crisis
mode. Mr. Goodale, as Wheat Board Minister, used the RCMP, Customs
Officials, Department of Justice Lawyers and the Courts to cover-up
questionable activities of the CWB.
On June 10, 2002 in Lethbridge, Alberta, five (5)
farmers will go on trial for exporting grain into the USA to protest the
CWB monopoly and the Board's refusal to grant a cost free Export License
as guaranteed by the CWB Act and are readily available to exporters
outside the CWB designated area.
If the Auditor General was denied access to the
CWB Sales Contracts, in my opinion this is incriminating in itself and
needs to be investigated. The neglect by Opposition Parties to
demand an explanation of the government why and who denied the Auditor General
access to these Sales Contracts exposes their shallow support for
agriculture.
Your closing comment in the Editorial, that it is
unconscionable that farmers may not legally sell the fruits of their
labour or verify the claim that they are financially compensated for
their loss of market freedom, is dead-on. The treatment of Western
Canadian Farmers by this Liberal Government is more representative of a
Third World Dictatorship than a compassionate and protective democracy.
Sincerely,
Jake E. Hoeppner
Former MP for Portage - Lisgar