HomeMy WebLinkAboutThe Huron Expositor, 1989-04-26, Page 21Z:C e k ff ° e reduced in :program
'T hefeheelnoiffeeforthe Livestock Finan- 116 claims, -worth over$1.5 millionasince-the
Mal Fund has been reduced to program=started.
five eents per bead nand contributions "Thesepayments indicate the importance
;have been ,eliminated. 'This additional of this self-financing program to Ontario
Teduetion in ees, which went into effect producers," Mr. Riddell said.
April 4,ds$hetesult of a continuing effort: by The board has also recovered nearly
the Industry to =streamline operations and $580,000 from defaulting dealers since the
still provide reasonable, lmcost•protection program began.
to producers," said Ontario Minister of The Financial Protection Fund Board is
Agricultureand Food Jack Riddell. made up of representatives from the On -
"When the fund was established in 1982, , ;tario Cattlemen's Association, Canadian
both :buyers and sellers contributed. Fees -Meat Packers Council, Ontario Livestock
have been slashed from an original level of Auction Market Association, the Toronto
20 cents for each party involved in the tran- Livestock Exchange and the Ministry of
section, to 10 cents when the fund reaehed$2 Agriculture and Food.
million in 1984, down to .the five cents per
head -announced today.
The Ontario Beef Cattle Financial Protec-
tion Program created the fund, designed to
compensate sellers in case of non-payment
by a licensed dealer. The fund is established
through deductions on sales of slaughter
cattle or cattle and calves that require fur-
ther feeding. At the end of the 1989 fiscal
year, there was more than $4 million in the If there is any doubt about whether a
fund. dealer is licensed or if payment has not been
The Financial Protection Fund Board, received, sellers are advised to call the
which administers the fund, investigates Livestock Commissioner, collect, at (416)
and adjudicates claims and has are-eas,i 3263554.
By law, all beef cattle buyers are required
to have a license. License holders must
demonstrate financial responsiblaty and pay
promptly for cattle purchases. Approx-
imately 485 dealers are licensed yearly.
Producers should sell only to licensed
dealers and cash cheques within five bank-
ing days of receiving them.
OFA terminates membership
The Ontario Cattlemen's Association
(OCA) has been notified that it no longer
holds membership in the Ontario Federa-
tion of Agriculture (OFA). The termination
of membership stems from an OFA request
in mid 1988 that OCA pay a membership fee
of $26,000. The OCA Board referred the re-
quest to the 1989 Annual Meeting and asked
that all county/district Cattlemen's
Associations seek producer input at their
respective annual meetings in January and
early February.
Delegates to the OCA Annual Meeting in
February set aside the resolution proposing
that a membership fee of $26,O0D be paid and
in its place debated and approved a resolu-
tion that membership in OFA be continued
at a membership fee to be negotiated at a
level "satisfactory to both organizations".
The OCA Board of Directors confirmed an
offer of $10,000 which had been made by the
Executive Committee. The OFA Board
refused to accept less than $20,000and gave
the OCA two weeks to commit that amount.
Jim Magee, OCA President stated, "In
my discussions with the OFA President, I
tried to convey the view that the emphasis is
on negotiating a fee satisfactory to both par-
ties and that we were willing to continue
negotiations. I pointed out to the OFA Presi-
dent that five of the 11 county associations
submitting resolutions to the OCA Annual
Meeting proposed a fee much lower than our
offer of $10,000, while only three county
associations proposed a fee of $20,000 or
more with the remainder proposing a
negotiated settlement. With the views that
our Board members had received from the
grassroots level, they felt that the offer of
$10,000 for 1989 and a proposal to the 1990
OCA Annual Meeting of $15,000 was a fair of-
fer. Even after the OFA Board had demand-
ed a fee of at least $20,000, I offered to go
back to my Board to see if they would accept
a fee in the middle ground if the OFA Presi-
dent would do the same. My offer was
declined."
Contrary to statements by OFA, the OCA
Board had not budgeted $26,000 for member-
ship in OFA. However, the 1989 preliminary
budget showed $26,090 as being the max-
imum exposure because the decision on
OFA membership had been referred to the
1989 Annual Meeting. Other items in the
preliminary budget were also shown at
maximum exposure pending the decision by
delegates on resolutions at the, Annual
Meeting.
Mr. Magee concluded "Our office will con-
tinue to co-operate with the OFA office just
as it has in the past where we have issues of
mutual concern. I think it is unfortunate
that our organizations were unable to reach
a negotiated fee settlement, but then an
ultimatum seldom achieves that end."
Call Heather or Neil
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Arnold J.'Sttnreissen
THE HURON EXPOSITbR, 084
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