Resolution Title: | CGC Payment Protection Fund |
Year: | 2016 |
Resolution #: | G&O10-2016AGM |
Resolution: | WHEREAS the Canadian Grain Commission’s bond-based system for payment protection has failed to adequately protect producers against payment default, in some cases only paying out 14 cents on every dollar owed; WHEREAS a fund based approach like the Ontario Grain Financial Protection Fund offers a simpler, more cost-effective and transparent alternative to the bond based payment security system; WHEREAS a fund based approach requires the fund to “build up” before it can provide full protection at minimal costs to producers; WHEREAS the Canadian Grain Commission is anticipating a surplus of over $90 million in accumulated user fees by 2018 and will be consulting with industry about where to direct these funds; BE IT RESOLVED that APAS support the concept that the CGC accumulated surplus should be used to establish a payment protection fund to provide producers with transparent and cost effective protection against payment default. |