The Rural Voice, 1983-05, Page 25BILL C-653
SPARKS
CONTROVERSY
Perth County farmers, along with some
from Huron and a few from as far away as
Bruce, are obviously interested in Liberal
MP Ralph Ferguson's controversial pri-
vate member's farm Bill C-653. About 100
of them showed up at Mitchell April 5 for
an information meeting sponsored by the
Perth Federation of Agriculture on the
proposed legislation, which deals with
farm bankruptcies.
OFA executive committee member Brigid
Pyke explains the ins and outs of Bill
C-653, proposed legislation dealing with
farm bankruptcies.
Ontario Federation of Agriculture ex-
ecutive member Brigid Pyke went
through the bill clause by clause and
explained some of its background,
shedding some light on just what the
proposed bill is and what it isn't.
It isn't an easy out for the financially
strapped farmer, she cautioned. It won't
be easy to use the proposed legislation
frivolously. Ferguson's bill is an exten-
sion of the Farmers' Creditors Arrange-
ment Act of 1935 and involves a system
whereby a farmer facing bankruptcy can
file a written proposal with the court for a
composition, extension of time or a
scheme of arrangement. After the pro-
posal is filed the farmer is out of the
driver's seat. The court appoints an
official receiver to act as a trustee for the
farm and protect the interests of both
farmer and creditors. Bill C-653 is similar
to Bill C-12 introduced in 1980, but the
latter concerns itself more with Canadian
businesses.
IN THE NEWS
Some bankers aren't keen on Fer-
guson's proposal but Pyke feels they
have over -reacted because the rights of
secured creditors as well as the farmer
are stressed in the proposed legislation,
which has passed second reading and is
now in committee.
"Farmers have been a good credit risk,
not like, say the student loans program,"
Pyke said.
Still, as a rhetorical question from the
floor put it, how eager would anybody be
to lend money to someone if a Bill like
C-653 enabled the person who borrowed
it to give only 80 per cent back. This
worries some. Will farm credit become
tighter for farmers as a result of such
legislation?
Pyke doesn't think so, but the jury is
still out.
She said the OFA supports Bill C-653
and the association is monitoring am-
mendments. However this support is not
carved in stone, she added:
"If there is something you don't like,
tell your directors.
Gregor Campbell
GROWING
PROFITS
NUTRITE
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V Specific fertilizer programs
for each crop
if Modern spreading equipment
if Competent agronomic service
There's more to it than
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For more information
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Elmira
or a dealer in your area.
THE RURAL VOICE, MAY 1983 PG. 23