Farm Products Agencies Act (R.S.C., 1985, c. F-4)

Short Title

Marginal note:Short title

1 This Act may be cited as the Farm Products Agencies Act.

Interpretation

Marginal note:Definitions

2 In this Act,

agency

agency means

• (a) for the purpose of Part I, a marketing agency or a promotion-research agency,

• (b) for the purpose of Part II, a marketing agency, and

• (c) for the purpose of Part III, a promotion-research agency; (office)

Council

Council means the National Farm Products Council established by section 3; (Conseil)

farm product

farm product means

• (a) for the purpose of Part I, any natural product of agriculture, whether processed or unprocessed, and any part of any such product,

• (b) for the purpose of Part II,

  • (i) eggs and poultry, and any part of any such product, and

  • (ii) any other natural product of agriculture and any part of any such product in respect of which the Governor in Council is satisfied, as a result of declarations by provincial governments following plebiscites, or otherwise, that the majority of the producers thereof in Canada is in favour of the establishment of a marketing agency with powers relating to that product, and

• (c) for the purpose of Part III, any natural product of agriculture, whether processed or unprocessed, and any part of any such product; (produit agricole ou produit de ferme)

marketing

marketing, in relation to any farm product that is not a regulated product, includes selling and offering for sale and buying, pricing, assembling, packing, processing, transporting, storing and any other act necessary to prepare the product in a form or to make it available at a place and time for purchase for consumption or use and, in relation to a regulated product, includes only such of the above acts as are specified in the marketing plan or promotion and research plan, as the case may be, relating to the regulated product; (commercialisation)

marketing agency

marketing agency means an agency established pursuant to subsection 16(1); (office de commercialisation)

marketing plan

marketing plan means a plan relating to the promotion, regulation and control of the marketing of any regulated product in interprovincial or export trade that includes provision for all or any of the following:

• (a) the determination of those persons engaged in the growing or production of the regulated product for interprovincial or export trade and the exemption of any class of persons so engaged from the marketing plan or any aspect thereof,

• (b) the specification of those acts that constitute the marketing of the regulated product and of those persons engaged in its marketing, as so specified, in interprovincial or export trade, and for the exemption of any class of persons so engaged from the marketing plan or any aspect thereof,

• (c) the marketing of the regulated product on a basis that enables the agency that is implementing the plan to fix and determine the quantity, if any, in which the regulated product or any variety, class or grade thereof may be marketed in interprovincial or export trade by each person engaged in the marketing thereof and by all persons so engaged, and the price, time and place at which the regulated product or any variety, class or grade thereof may be so marketed,

• (d) the pooling of receipts from the marketing of the regulated product or any variety, class or grade thereof in interprovincial or export trade and the operation of pool accounts including provision for a system of initial, interim and final payments to producers and deduction from the pool of the expenses of the operation thereof,

• (e) a system for the licensing of persons engaged in the growing or production of the regulated product for, or the marketing thereof in, interprovincial or export trade, including provision for fees, other than fees related to the right to grow the regulated product, payable to the appropriate agency by any such person in respect of any licence issued to such person and for the cancellation or suspension of any such licence where a term or condition thereof is not complied with, and

• (f) the imposition and collection by the appropriate agency of levies or charges from persons engaged in the growing or production of the regulated product or the marketing thereof and for such purposes classifying those persons into groups and specifying the levies or charges, if any, payable by the members of each group; (plan de commercialisation)

Minister

Minister means the Minister of Agriculture and Agri-Food; (ministre)

promotion and research plan

promotion and research plan means a plan respecting the promotion of the marketing or production of any regulated product for the purposes of interprovincial, export or import trade and respecting research activities related to the regulated product that includes provision for all or any of the following:

• (a) the determination of those persons engaged in the growing, production, processing or importation of the regulated product for interprovincial, export or import trade and the exemption from the plan or any aspect thereof of any class of persons so engaged,

• (b) the specification of those acts that constitute the marketing of the regulated product and of those persons engaged in its marketing, as so specified, in interprovincial or export trade, and for the exemption from the plan or any aspect thereof of any class of persons so engaged, and

• (c) the imposition, collection and refunding by the appropriate agency of levies or charges from persons engaged in the growing, production or importation of the regulated product or the marketing thereof and for such purposes classifying those persons into groups and specifying the levies or charges, if any, payable by the members of each group; (plan de promotion et de recherche)

promotion-research agency

promotion-research agency means an agency established pursuant to section 39; (office de promotion et de recherche)

regulated product

regulated product means

• (a) for the purpose of Part II, any farm product grown or produced

  • (i) anywhere in Canada, if a marketing agency is authorized to exercise its powers in relation to any such product grown or produced in Canada, or

  • (ii) in any region of Canada designated in the proclamation that authorizes a marketing agency to exercise its powers in relation to any such product grown or produced in that region, or in any such region and anywhere in Canada outside that region for shipment into that region in interprovincial trade and not for export where the proclamation that authorizes the marketing agency to exercise its powers in relation to such product so provides, and

• (b) for the purpose of Part III, any farm product in relation to which a promotion-research agency is authorized to exercise its powers in interprovincial, export or import trade as specified in the proclamation that authorizes the agency to exercise its powers in relation to such product; (produit réglementé)

research

research includes development. (recherche)

PART INational Farm Products Council

Establishment

Marginal note:Council established

• 3 (1) There is established a council, to be known as the National Farm Products Council, consisting of not less than three and not more than seven members to be appointed by the Governor in Council to hold office during pleasure.

• Marginal note:Primary producers

  (1.1) At least fifty per cent of the members of the Council, not taking into account the chairman thereof, shall be primary producers at the time of appointment.

• Marginal note:Chairman and vice-chairman

  (2) The Governor in Council shall designate one member of the Council to be the chairman thereof and another member to be the vice-chairman thereof, one of whom shall be a primary producer.

• Marginal note:Regional representation

  (3) In making appointments under this section, the Governor in Council shall try to ensure equal representation from the four Western provinces, the two Central provinces and the four Atlantic provinces.

• Marginal note:Eligibility

  (4) A person who has reached the age of seventy years is not eligible to be appointed a member of the Council and a member thereof ceases to hold office on reaching the age of seventy years.

• Marginal note:Temporary substitute members

  (5) If a member of the Council, other than the chairman, is absent or unable to act, the Governor in Council may appoint a temporary substitute member on such terms and conditions as the Governor in Council prescribes.

Marginal note:Chairman to preside

4 The chairman of the Council shall preside at meetings of the Council but in the event of the absence or incapacity of the chairman, or if the office of chairman is vacant, the vice-chairman of the Council shall act as chairman for the time being.

Marginal note:Salaries and fees

• 5 (1) A member of the Council who is not employed in the federal public administration shall be paid a salary to be fixed by the Governor in Council.

• Marginal note:Expenses

  (2) Each member of the Council is entitled to be paid any travel and living expenses incurred by them in the performance of their duties under this Act that are provided by by-law of the Council made under paragraph 12(c).

Duties and Powers

Marginal note:Duties of Council

• 6 (1) The duties of the Council are

  • (a) to advise the Minister on all matters relating to the establishment and operation of agencies under this Act with a view to maintaining and promoting an efficient and competitive agriculture industry;

  • (b) to review the operations of agencies with a view to ensuring that they carry on their operations in accordance with their objects set out in section 21 or 41, as the case may be; and

  • (c) to work with agencies in promoting more effective marketing of farm products in interprovincial and export trade and, in the case of a promotion-research agency, in promoting such marketing in import trade and in connection with research and promotion activities relating to farm products.

• Marginal note:Additional duties

  (2) In carrying out its duties, the Council shall consult, on a continuing basis, with the governments of all provinces having an interest in the establishment or the exercise of the powers of any one or more agencies under this Act or with any body or bodies established by the government of any province to exercise powers similar to those of the Council in relation to intraprovincial trade in farm products.

Marginal note:Powers of Council

• 7 (1) In order to fulfil its duties, the Council

  • (a) on receipt of a written request from one or more associations representing a significant number of persons engaged in the growing or production of any farm product in Canada or if directed to do so by the Minister shall, or on its own initiative may, inquire into the merits of

    • (i) establishing an agency in respect of the farm product and vesting it with all or any of the powers set out in section 22 or 42, as the case may be, or

    • (ii) broadening the authority of an existing agency by vesting it with all or any of the powers set out in section 22 or 42, as the case may be, in relation to any farm products that are additional to the farm products in respect of which it was established,

    and report its recommendations to the Minister, including the terms of an appropriate marketing plan or promotion and research plan where, in its opinion, it is appropriate that an agency be vested with power to implement such a plan in relation to the farm products to which the inquiry relates;

  • (b) shall review any amendment to a marketing plan or promotion and research plan that is submitted to it by the agency charged with the implementation of the plan, review any proposed marketing plan or promotion and research plan that is submitted to it by an agency that is not vested with power to implement such a plan, and consider all representations submitted to it in relation to the proposed amendment or plan and report its recommendations thereon to the Minister;

  • (c) shall review the operations of agencies and report thereon annually to the Minister or, in any case where in its opinion the circumstances warrant, on a more frequent basis;

  • (d) shall review all orders and regulations that are proposed to be made by agencies and that are of a class of orders or regulations to which the Council, by order, provides that this paragraph is applicable and, where it is satisfied that the orders and regulations are necessary for the implementation of the marketing plan or promotion and research plan that the agency proposing to make the orders or regulations is authorized to implement, the Council shall approve the orders and regulations;

  • (e) shall review all orders and regulations that are made by agencies and that are not of a class of orders or regulations to which paragraph (d) is made applicable, and, where it is satisfied that the orders or regulations are necessary for the administration of the marketing plan or promotion and research plan that the agency that has made the orders or regulations is authorized to implement, the Council shall approve the orders or regulations and, where it is not so satisfied, the Council may, by order, set aside in whole or in part any such orders and regulations;

  • (f) shall make such inquiries and take such action within its powers as it deems appropriate in relation to any complaints received by it from any person who is directly affected by the operations of an agency and that relate to the operations of the agency;

  • (g) may conduct studies of, and on its own initiative or on the direction of the Minister research into, any matter relating to the marketing or promotion of a farm product in interprovincial or export trade or research activities related thereto;

  • (h) may, for the purpose of implementing any marketing plan, require persons engaged in the production of a farm product for, or the marketing of a farm product in, interprovincial or export trade

    • (i) to register with the Council or the appropriate agency,

    • (ii) to maintain books and records in relation to the production or marketing of the farm product by them in such form and containing such information as the Council requires pursuant to this paragraph, and

    • (iii) to submit to the Council or the appropriate agency such information relating to the production or marketing of the farm product by them as it may reasonably require;

  • (i) may, when in its opinion it is necessary to do so for the purpose of determining the advisability of establishing an agency in respect of a farm product or of vesting an agency with power to implement a marketing plan, require persons engaged in the production of a farm product for, or the marketing of a farm product in, interprovincial or export trade to submit to the Council or the appropriate agency such information relating to the production or marketing of the farm product by them as it may reasonably require;

  • (j) may, for the purpose of implementing any promotion and research plan, require persons who are engaged in the production or importation of a farm product for, or the marketing of a farm product in, interprovincial, export or import trade

    • (i) to register with the Council or the appropriate agency,

    • (ii) to maintain books and records in relation to the production, marketing or importation of the farm product by them in such form and containing such information as the Council requires pursuant to this paragraph, and

    • (iii) to submit to the Council or the appropriate agency such information relating to the production, marketing or importation of the farm product by them as it may reasonably require;

  • (k) may, when in its opinion it is necessary to do so for the purpose of determining the advisability of establishing an agency in respect of a farm product or of vesting an agency with power to implement a promotion and research plan, require persons who are engaged in the production or importation of a farm product for, or the marketing of a farm product in, interprovincial, export or import trade to submit to the Council or the appropriate agency such information relating to the production, marketing or importation of the farm product by them as it may reasonably require; and

  • (l) may do all such other things as are incidental or conducive to the fulfilment of its duties.

• Marginal note:Idem

  (2) The Council, in reporting to the Minister under subsection (1), shall not recommend the establishment of an agency in respect of one or more farm products or the broadening of the authority of an existing agency by vesting it with powers in relation to one or more farm products unless it is satisfied that

  • (a) in the case of a marketing agency, the majority of the producers of each of those farm products, in Canada or in the region of Canada to which the recommendation relates, is in favour of that action; or

  • (b) in the case of a promotion-research agency, the majority of the aggregate of the producers or, where the import trade in one or more farm products is to be included, the majority of the aggregate of the producers and importers, of all those farm products, in Canada or in the region of Canada to which the recommendation relates, is in favour of that action.

Public Hearings

Marginal note:Where hearing to be held

• 8 (1) A public hearing shall be held by the Council

  • (a) in connection with an inquiry into the merits of establishing an agency or of broadening the authority of an existing agency to cover any additional farm product or farm products;

  • (b) where the Council has under review a proposed marketing plan or promotion and research plan; or

  • (c) in connection with any other matter relating to its objects if the Governor in Council or the Minister directs the Council to hold a public hearing in connection with such matter.

• Marginal note:Where hearing may be held

  (2) A public hearing may be held by the Council in connection with any matter relating to its objects where the Council is satisfied that such a hearing would be in the public interest.

• Marginal note:Hearing by two or more members

  (3) The chairman of the Council may direct that a public hearing under this section be held on behalf of the Council by two or more members thereof designated by the chairman, and the members so designated have for the purpose of the hearing the powers of the Council set out in subsection (5) and shall report to the Council on the hearing.

• Marginal note:Hearings throughout Canada

  (4) A public hearing under this section may be held at such place in Canada or at such places in Canada by adjournment from place to place as the Council may designate.

• Marginal note:Powers in relation to hearings

  (5) The Council has, in respect of any public hearing under this section, all the powers of a commissioner appointed under Part I of the Inquiries Act.

Marginal note:Public notice

9 The Council shall give notice of any public hearing under section 8 and of the matters to be considered thereat in the Canada Gazette and in one or more newspapers and farm journals in general circulation throughout all of Canada and in particular in those areas of Canada where, in the opinion of the Council, there are persons who are likely to be interested in the matters to be considered thereat.

Marginal note:Rules of procedure

10 The Council may make rules respecting the conduct of public hearings under section 8 and generally respecting the conduct of business of the Council in relation thereto.

Organization

Marginal note:Head office

11 The head office of the Council shall be in the National Capital Region described in the schedule to the National Capital Act or at such other place in Canada as may be designated by the Governor in Council.

Marginal note:By-laws

12 The Council may make by-laws

• (a) respecting the calling of meetings of the Council;

• (b) respecting the conduct of business at meetings of the Council and the establishment of committees thereof, the delegation of duties to those committees and the fixing of quorums for meetings of the Council and any committee thereof;

• (c) subject to the approval of the Treasury Board, fixing the travel and living expenses to be paid to the members of the Council; and

• (d) generally for the conduct and management of the affairs of the Council.

Marginal note:Staff

13 Officers and employees necessary for the proper conduct of the business of the Council shall be appointed in the manner authorized by the Public Service Employment Act.

Marginal note:Superannuation

14 Any member of the Council who, under the terms of their appointment, is required to devote the whole of their time to the performance of their duties as a member is deemed to be employed in the public service for the purposes of the Public Service Superannuation Act and to be employed in the federal public administration for the purposes of the Government Employees Compensation Act and any regulations made under section 9 of the Aeronautics Act.

Annual Report

Marginal note:Report to Parliament

15 The Council shall, within three months after the end of each fiscal year, submit to the Minister a report in such form as the Minister may direct on its activities for that fiscal year and the Minister shall cause the report to be laid before Parliament within fifteen days after the receipt thereof, or, if Parliament is not then sitting, on any of the first fifteen days next thereafter that either House of Parliament is sitting.

PART IIFarm Products Marketing Agencies

Establishment

Marginal note:Establishment of agencies

• 16 (1) The Governor in Council may, by proclamation, establish an agency with powers relating to any farm product or farm products the marketing of which in interprovincial and export trade is not regulated under the Canadian Dairy Commission Act if the Governor in Council is satisfied that a majority of the producers of the farm product or of each of the farm products in Canada is in favour of the establishment of an agency.

• Marginal note:Plebiscites

  (2) The Governor in Council, in order to determine whether a majority of producers of a farm product are in favour of establishing an agency, may request that each province carry out a plebiscite of those producers.

• Marginal note:Agencies to be bodies corporate

  (3) Every agency established pursuant to this Act is a body corporate.

Marginal note:Contents of proclamation

• 17 (1) A proclamation establishing an agency shall

  • (a) designate the farm product or farm products in relation to which the agency may exercise its powers and indicate whether those powers may be exercised in relation to

    • (i) any such product or products to the extent that it is or they are grown or produced anywhere in Canada, or

    • (ii) any such product or products to the extent that it is or they are grown or produced in any region of Canada designated in the proclamation, or in any such region and anywhere in Canada outside that region for shipment into that region in interprovincial trade and not for export;

  • (b) designate any of the powers set out in section 22 that are not vested in the agency;

  • (c) set out the terms of any marketing plan that the agency is empowered to implement;

  • (d) state the corporate name of the agency and the place within Canada where the head office of the agency is situated; and

  • (e) fix the number of members of the agency, which shall be not less than three and not more than sixteen at least a majority of whom shall be primary producers, and provide for the manner of appointment of members and temporary substitute members and the term of their appointment if the manner and term are to be other than as provided in subsection 18(1).

• Marginal note:Alteration

  (2) The Governor in Council may, by proclamation,

  • (a) designate any farm product or farm products, in respect of which the Governor in Council is authorized under subsection 16(1) to establish an agency, as an additional product or products in relation to which an agency previously established under that subsection may exercise its powers and indicate whether those powers may be exercised in relation to

    • (i) any such product or products to the extent that it is or they are grown or produced anywhere in Canada, or

    • (ii) any such product or products to the extent that it is or they are grown or produced in any region of Canada designated in the proclamation, or in any such region and anywhere in Canada outside that region for shipment into that region in interprovincial trade and not for export;

  • (b) vest in an agency any powers set out in section 22 that were withheld from it at the time it was established, and where the proclamation vests in the agency the power to implement a marketing plan, the terms thereof shall be set out in the proclamation;

  • (c) amend the terms of a marketing plan that an agency is empowered to implement or withdraw any of the powers set out in section 22 that were previously vested in the agency;

  • (d) change the name of an agency or the place within Canada where the head office of the agency is situated;

  • (e) increase or decrease the number of members of an agency but not so as to increase the number above sixteen or decrease it below three; or

  • (f) provide for the manner of appointment of members and temporary substitute members of an agency and a term of appointment of those members that varies from the manner and term provided in subsection 18(1) or from the manner and term provided in the proclamation establishing the agency.

• Marginal note:Limitation

  (3) A proclamation referred to in subsection (1) or (2) that designates a farm product other than tobacco, eggs or poultry or any part of tobacco, eggs or poultry shall not set out as a term of the marketing plan that an agency is empowered to implement any term that would enable the agency to fix and determine the quantity in which any regulated product could be marketed in interprovincial or export trade by persons engaged in the marketing thereof.

Membership of Agencies

Marginal note:Appointment

• 18 (1) The members of an agency shall be appointed by the Governor in Council to hold office during pleasure, or in such other manner including election by producers, and for such term as is provided in the proclamation establishing the agency or in a proclamation issued under subsection 17(2) in respect of the agency.

• Marginal note:Chairman and vice-chairman

  (2) The Governor in Council shall designate one member of an agency to be the chairman thereof and another member to be the vice-chairman thereof, or may provide for the manner of such designation in the proclamation establishing the agency.

• Marginal note:Eligibility

  (3) A person who has reached the age of seventy years is not eligible to be appointed a member of an agency and a member thereof ceases to hold office on reaching the age of seventy years.

• Marginal note:Temporary substitute members

  (4) If a member of an agency, other than the chairman, is absent or unable to act, the Governor in Council may, unless otherwise provided in the proclamation establishing the agency, appoint a temporary substitute member on such conditions as the Governor in Council prescribes.

Marginal note:Chairman

19 The chairman of an agency shall preside at meetings of the agency but in the event of the absence or incapacity of the chairman, or if the office of chairman is vacant, the vice-chairman of the agency shall act as chairman for the time being.

Marginal note:Salaries and fees

• 20 (1) A member of an agency who devotes the whole of their time or a portion of their time on a continuous basis to the performance of their duties as a member shall be paid by the agency a salary to be fixed by the Governor in Council on the recommendation of the Council, and the other members of the agency shall be paid by the agency any fees for attendances at meetings of the agency or any of its committees that are provided by by-law of the agency made under paragraph 25(c).

• Marginal note:Expenses

  (2) Each member of an agency or of a consultative or advisory committee of an agency is entitled to be paid by the agency any travel and living expenses incurred by them in the performance of their duties under this Act that are provided by by-law of the agency made under paragraph 25(c).

Objects and Powers

Marginal note:Objects

21 The objects of an agency are

• (a) to promote a strong, efficient and competitive production and marketing industry for the regulated product or products in relation to which it may exercise its powers; and

• (b) to have due regard to the interests of producers and consumers of the regulated product or products.

Marginal note:Powers

• 22 (1) Subject to the proclamation by which it is established and to any subsequent proclamation altering its powers, an agency may

  • (a) purchase any regulated product in relation to which it may exercise its powers and any farm product, wherever grown or produced that is of the same kind as the regulated product in relation to which it may exercise its powers, and package, process, store, ship, insure, export or sell or otherwise dispose of any such product purchased by it;

  • (b) implement a marketing plan the terms of which are set out in the proclamation establishing it or in any subsequent proclamation issued under subsection 17(2) in respect of it;

  • (c) prepare and submit to the Council

    • (i) a marketing plan, if it is not empowered to implement a marketing plan, or

    • (ii) any amendments to the marketing plan that the agency is empowered to implement,

    that it considers appropriate for the attainment of its objects;

  • (d) undertake and assist in the promotion of the consumption and use of any regulated product in relation to which it may exercise its powers, the improvement of the quality and variety thereof and the publication of information in relation thereto;

  • (e) designate bodies through which any regulated product in relation to which it may exercise its powers or any variety, class or grade of any such product shall be marketed in interprovincial or export trade;

  • (f) where it is empowered to implement a marketing plan, make such orders and regulations as it considers necessary in connection therewith, but all such orders and regulations shall, in the case of orders and regulations that are of a class to which paragraph 7(1)(d) is made applicable, be submitted to the Council before the making thereof, and in any other case, be submitted to the Council either before or after the making thereof and

    • (i) any order or regulation that is submitted to the Council before the making thereof and that is thereafter made before the Council approves the order or regulation is of no force or effect, and

    • (ii) any order or regulation that is submitted to the Council after the making thereof and that is set aside by order of the Council thereupon ceases to be of any force or effect;

  • (g) by order, require any person designated by it who is engaged in the marketing of any regulated product in relation to which it may exercise its powers, or any person who is a member of a class of persons designated by it and who is so engaged, to deduct from any amount payable by that person to any other person engaged in the production or marketing of the regulated product any amount payable to the agency by the other person by way of licence fees, levies or charges provided for in any marketing plan that the agency is authorized to implement and to remit all amounts so deducted to the agency;

  • (h) purchase, lease or otherwise acquire and hold, mortgage, hypothecate, sell or otherwise deal with any real property or immovable;

  • (i) establish branches or employ agents or mandataries in Canada or elsewhere;

  • (j) expend any money received by it through the conduct of its operations, whether by way of licence fees, levies or charges paid by persons engaged in the production or marketing of any regulated product in relation to which it may exercise its powers or otherwise;

  • (k) invest any money in its possession or control that in its opinion is not immediately required for the purposes of its operations, in securities of or guaranteed by the Government of Canada and sell any securities so acquired by it and reinvest the proceeds thereof or any part thereof in like manner;

  • (l) borrow money on the credit of the agency and on the security of any regulated product or other property held by it;

  • (m) undertake to advertise and promote and do research into new markets for the establishment of greater sales; and

  • (n) do all such other things as are necessary or incidental to the exercise of any of its powers or the carrying out of any of its functions under this Act.

• Marginal note:Additional powers in intraprovincial trade

  (2) An agency may perform on behalf of a province any function relating to intraprovincial trade in any regulated product in relation to which it may exercise its powers that is specified in an agreement entered into pursuant to section 31.

• Marginal note:Delegation of powers

  (3) An agency may, with the approval of the Governor in Council, grant authority to any body, authorized under the law of a province to exercise powers of regulation in relation to the marketing locally within the province of any regulated product in relation to which the agency may exercise its powers, to perform on behalf of the agency any function relating to interprovincial or export trade in the regulated product that the agency is authorized to perform.

Marginal note:Where marketing plan makes allocation

• 23 (1) A marketing plan, to the extent that it allocates any production or marketing quota to any area of Canada, shall allocate that quota on the basis of the production from that area in relation to the total production of Canada over a period of five years immediately preceding the effective date of the marketing plan.

• Marginal note:Idem

  (2) In allocating additional quotas for anticipated growth of market demand, an agency shall consider the principle of comparative advantage of production.

General

Marginal note:Employment of staff

24 An agency may employ such officers and employees as it considers necessary for the proper conduct of its activities.

Marginal note:Agency may make by-laws

25 An agency may make by-laws

• (a) respecting the calling of meetings of the agency;

• (b) respecting the conduct of business at meetings of the agency and the establishment of committees thereof, the delegation of duties to those committees and the fixing of quorums for meetings of the agency and any committee thereof;

• (c) subject to the approval of the Council, fixing the fees to be paid to members of the agency other than any members who are paid salaries, for attendances at meetings of the agency or any committee thereof, and the travel and living expenses to be paid to the members of the agency and the members of any consultative or advisory committee of the agency;

• (d) subject to the approval of the Council, respecting the establishment, management and administration of a pension fund for the members, officers and employees of the agency and their dependants, the contributions thereto to be made by the agency and the investment of the pension fund moneys thereof;

• (e) respecting the duties and conduct of the members of the agency;

• (f) prescribing the duties of officers and employees of the agency and the terms and conditions of their employment including the remuneration to be paid to them by the agency;

• (g) for the establishment of consultative or advisory committees consisting of members of the agency or persons other than members or both; and

• (h) generally for the conduct and management of the affairs of the agency.

Marginal note:Not agent of Her Majesty

26 An agency is not an agent of Her Majesty, and the chairman and the other members of an agency and the officers and employees thereof are not part of the federal public administration.

Financial

Marginal note:Conduct of financial operations

27 Subject to subsection 28(1), an agency shall conduct its operations on a self-sustaining financial basis without appropriations therefor by Parliament.

Marginal note:Payment by Minister of Finance

• 28 (1) The Minister of Finance may, out of the Consolidated Revenue Fund, on the requisition of the Minister, make grants to an agency not exceeding in the aggregate one hundred thousand dollars to enable the agency to meet initial operating and establishment expenses.

• Marginal note:Limitation

  (2) The aggregate amount of grants made under subsection (1) shall not exceed one million dollars.

Marginal note:Audit

29 The accounts and financial transactions of each agency shall be audited annually by an auditor appointed by the Governor in Council and a report of each audit shall be made to the appropriate agency, the Council and the Minister.

Annual Report

Marginal note:Report to Parliament

30 An agency shall, within three months after the end of each fiscal year, submit to the Council and the Minister a report in such form as the Minister may direct on its activities for that fiscal year and the Minister shall cause the report to be laid before Parliament within fifteen days after the receipt thereof, or, if Parliament is not then sitting, on any of the first fifteen days next thereafter that either House of Parliament is sitting.

Agreements

Marginal note:Federal-provincial agreements

31 With the approval of the Governor in Council, the Minister may, on behalf of the Government of Canada, enter into an agreement with any province providing for the performance by an agency on behalf of the province of functions relating to intraprovincial trade in a regulated product or products in relation to which the agency may exercise its powers and for such other matters relating thereto as may be agreed on by the Minister and the government of the province.

Marginal note:Competition Act not to apply

32 Nothing in the Competition Act applies to any contract, agreement or other arrangement between an agency and any person or persons engaged in the production or marketing of a regulated product where the agency has authority under this or any other Act, under a proclamation issued under this Act or under an agreement entered into pursuant to section 31 of this Act to enter into such an arrangement.

Inspectors

Marginal note:Inspectors

33 The Minister, on the recommendation of an agency, may designate any qualified person as an inspector for the purposes of this Act.

Marginal note:Powers of inspectors

• 34 (1) An inspector may at any reasonable time enter any place that the inspector believes on reasonable grounds is occupied, other than a dwelling-house or any part of a place that is designed to be used and is being used as a permanent or temporary dwelling-house, and in which the inspector believes on reasonable grounds there is any regulated product produced for, or intended to be marketed in, interprovincial or export trade and examine any books, records or other documents in that place that the inspector believes on reasonable grounds contain any information relating to the regulated product and make copies thereof or take extracts therefrom, and may require any person to produce, for inspection, or for the purpose of obtaining copies thereof or extracts therefrom, any books, records or documents relating to that product that are located in any other place.

• Marginal note:Certificate to be produced

  (2) An inspector shall be furnished with a certificate of designation and on entering any place referred to in subsection (1) shall, if so requested, produce the certificate to any person in charge thereof.

• Marginal note:Assistance to inspectors

  (3) The owner or person in charge of any place referred to in subsection (1) and every person found in that place shall give an inspector all reasonable assistance to enable the inspector to carry out their duties and functions under this Act and shall furnish the inspector with any information with respect to any regulated product found in that place that the inspector may reasonably require.

Marginal note:Obstruction of inspectors

• 35 (1) No person shall obstruct or hinder an inspector engaged in carrying out their duties and functions under this Act.

• Marginal note:False statements

  (2) No person shall knowingly make a false or misleading statement, either orally or in writing, to an inspector engaged in carrying out their duties and functions under this Act.

Recovery of Debts Due an Agency

Marginal note:Licence fees, levies and charges

36 Where a marketing plan provides for licence fees or levies or charges payable by persons engaged in the production of a regulated product, or the marketing thereof, and any such licence fee, levy or charge remains unpaid after the time provided in the plan at which it was due and payable to an agency, the licence fee, levy or charge constitutes a debt payable to the agency and may be sued for and recovered as such by the agency in any court of competent jurisdiction.

Offences and Punishment

Marginal note:Contravention of Act, regulation, etc.

• 37 (1) Every person who

  • (a) contravenes any provision of this Act or of a marketing plan that an agency is authorized to implement,

  • (b) fails to comply with a requirement of the Council under paragraph 7(1)(h) or (i) that is applicable to that person, or

  • (c) contravenes any order or regulation made by an agency under paragraph 22(1)(f) or (g) that has been approved by the Council,

  is guilty of an offence and liable on summary conviction to a fine not exceeding five thousand dollars.

• Marginal note:Offence by employee, etc.

  (2) In any prosecution for an offence under this section, it is sufficient proof of the offence to establish that it was committed by an employee, or an agent or a mandatary, of the accused whether or not the employee, or agent or mandatary, is identified or has been prosecuted for the offence, unless the accused establishes that the offence was committed without knowledge or consent of the accused and that the accused exercised all due diligence to prevent its commission.

• Marginal note:Limitation period

  (3) Any proceedings by way of summary conviction in respect of an offence under this section may be instituted at any time within but not later than one year after the time when the subject-matter of the proceedings arose.

• Marginal note:Evidence as to geographical origin

  (4) In any prosecution for an offence under this section,

  • (a) the act or omission complained of in respect of which the prosecution was instituted shall, unless the contrary is established, be deemed to relate to the production or marketing of a farm product in interprovincial or export trade or to the duties of a person engaged in the production or marketing thereof; and

  • (b) any farm product referred to in the information laid in respect of the offence shall, unless the contrary is established, be deemed to have been grown or produced in Canada or in the particular province or region in Canada, if any, alleged in the information.

Winding-up of Agencies

Marginal note:Winding-up of an agency

38 The Governor in Council may order any agency established pursuant to this Act to wind up its affairs and may by proclamation dissolve any agency in respect of which such an order has been made, but an order or proclamation under this section becomes effective only on the expiration of ninety days after the date of publication thereof in the Canada Gazette.

PART IIIFarm Products Promotion and Research Agencies

Establishment

Marginal note:Establishment of agencies

• 39 (1) The Governor in Council may, by proclamation, establish a promotion-research agency with powers relating to one or more farm products, where the Governor in Council is satisfied that the majority of the aggregate of the producers or, where the import trade in one or more farm products is to be included, the majority of the aggregate of the producers and importers, of all those farm products, in Canada or in the region to which the proclamation relates, is in favour of the establishment of such an agency.

• Marginal note:Plebiscites

  (2) The Governor in Council, in order to determine whether the majority referred to in subsection (1) is in favour of establishing an agency with powers relating to one or more farm products, may request that each province concerned carry out a plebiscite of the producers or the producers and importers, as the case may be.

• Marginal note:Agencies to be bodies corporate

  (3) An agency established pursuant to this Part is a body corporate.

Marginal note:Contents of proclamation

• 40 (1) A proclamation establishing an agency shall

  • (a) designate the farm products in relation to which, and, where applicable, the region of Canada within which, the agency may exercise its powers;

  • (b) designate any of the powers set out in section 42 that are not vested in the agency;

  • (c) set out the terms of any promotion and research plan that the agency is empowered to implement;

  • (d) state the corporate name of the agency and the place in Canada where the head office of the agency is to be situated; and

  • (e) subject to subsections (2) to (4), fix the number of members of the agency and provide for the manner of appointment of members and temporary substitute members and the term of their appointment if the manner and term are to be other than as provided in subsection 18(1).

• Marginal note:Number of members of agency

  (2) The number of members of an agency shall be not less than three and not more than sixteen.

• Marginal note:Majority of members of agency

  (3) Where an agency is authorized by proclamation to exercise its powers in relation to one or more farm products in import trade, the majority of the members of the agency shall be comprised of representatives of the following groups, namely,

  • (a) primary producers of those farm products, and

  • (b) importers of those farm products,

  and the number of representatives of each such group within that majority shall, subject to there being at least one of each group, be in proportion to the share of each such group in the aggregate of the total intraprovincial, interprovincial and import trade in all of those products and, where the agency is authorized by proclamation to exercise its powers in relation to one or more farm products in export trade, the export trade in all of those farm products.

• Marginal note:Idem

  (4) Where an agency is not authorized by proclamation to exercise its powers in relation to at least one farm product in import trade, the majority of the members of the agency shall be primary producers.

Marginal note:Object

41 The object of an agency is to promote a strong, efficient and competitive industry for the regulated products in relation to which it may exercise its powers by promoting the marketing and production of the products and by conducting and promoting research activities relating thereto, having due regard to the interests of producers and consumers and, where applicable, importers of the regulated products.

Marginal note:Powers

• 42 (1) Subject to the proclamation by which it is established and any amendment thereto, an agency may

  • (a) implement a promotion and research plan the terms of which are set out in the proclamation;

  • (b) prepare and submit to the Council

    • (i) a promotion and research plan, if it is not empowered to implement a promotion and research plan, or

    • (ii) any amendments to the promotion and research plan that the agency is empowered to implement,

    that it considers appropriate for the attainment of its object;

  • (c) undertake and assist in the promotion of the consumption and use of any regulated product in relation to which it may exercise its powers, the improvement of the quality and variety thereof and the publication of information in relation thereto;

  • (d) where it is empowered to implement a promotion and research plan, make such orders and regulations as it considers necessary in connection therewith, but all such orders and regulations shall, in the case of orders and regulations that are of a class to which paragraph 7(1)(d) is made applicable, be submitted to the Council before the making thereof, and in any other case, be submitted to the Council either before or after the making thereof, and

    • (i) any order or regulation that is submitted to the Council before the making thereof and that is thereafter made before the Council approves the order or regulation is of no force or effect, and

    • (ii) any order or regulation that is submitted to the Council after the making thereof and that is set aside by order of the Council thereupon ceases to be of any force or effect;

  • (e) by order, require any person designated by it, or any person who is a member of a class of persons designated by it, who is engaged in the marketing or importing of any regulated product in relation to which it may exercise its powers to deduct from any amount payable by that person to any other person engaged in the production, marketing or importation of the regulated product any amount payable to the agency by the other person by way of levies or charges provided for in any promotion and research plan that the agency is authorized to implement and to remit all amounts so deducted to the agency;

  • (f) refund, in accordance with the promotion and research plan, any amount remitted to the agency under an order made under paragraph (e);

  • (g) undertake research activities with respect to, and advertise and promote in any other manner, the regulated products in relation to which it may exercise its powers;

  • (h) purchase, lease or otherwise acquire and hold, mortgage, hypothecate, sell or otherwise deal with any real property or immovable;

  • (i) establish branches or employ agents or mandataries in Canada or elsewhere;

  • (j) expend any money received by it through the conduct of its operations, whether by way of levies or charges paid by persons engaged in the production, marketing or importing of any regulated product in relation to which it may exercise its powers or otherwise;

  • (k) invest any money in its possession or control that in its opinion is not immediately required for the purposes of its operations in securities of or guaranteed by the Government of Canada and sell any securities so acquired by it and reinvest the proceeds thereof or any part thereof in like manner;

  • (l) borrow money on the credit of the agency and on the security of any regulated product or other property held by it; and

  • (m) do all such other things as are necessary or incidental to the exercise of any of its powers or the carrying out of any of its functions under this Part.

• Marginal note:Additional powers in intraprovincial trade

  (2) An agency may perform on behalf of a province any function relating to intraprovincial trade in any regulated product in relation to which it may exercise its powers that is specified in an agreement entered into pursuant to section 31.

• Marginal note:Delegation of powers

  (3) An agency may, with the approval of the Governor in Council, grant authority to any body, authorized under the law of a province to exercise powers of regulation in relation to the marketing locally within the province of any regulated product in relation to which the agency may exercise its powers, to perform on behalf of the agency any function relating to interprovincial, export or import trade in the regulated product that the agency is authorized to perform.

Marginal note:Application of certain provisions of Part II

• 43 (1) Sections 18 to 20, 24 to 27, 29 to 31, 33 to 35 and 38 apply in respect of this Part.

• Marginal note:Modification for purpose of application

  (2) For the purposes of subsection (1), a reference in any of those sections to “agency” shall be deemed to be a reference to “promotion-research agency”.

Marginal note:Levies and charges

44 Where a promotion and research plan provides for levies or charges payable by persons who are engaged in the production or importation of a regulated product, or the marketing thereof, and any such levy or charge remains unpaid after the time provided in the plan at which it was due and payable to an agency, the levy or charge constitutes a debt payable to the agency and may be sued for and recovered as such by the agency in any court of competent jurisdiction.

Marginal note:Offences and punishment

• 45 (1) Every person who

  • (a) contravenes any provision of this Part or of a promotion and research plan that an agency is authorized to implement,

  • (b) fails to comply with a requirement of the Council pursuant to paragraph 7(1)(j) or (k) that is applicable to that person, or

  • (c) contravenes any order or regulation made by an agency under paragraph 42(1)(d) or (e) that has been approved by the Council,

  is guilty of an offence punishable on summary conviction and liable to a fine not exceeding five thousand dollars.

• Marginal note:Limitation period

  (2) Any proceedings by way of summary conviction in respect of an offence under this section may be instituted at any time within but not later than one year after the time when the subject-matter of the proceedings arose.

Marginal note:Information obtained under Customs Act

46 An agency may authorize any person or person within a class of persons to receive customs information as defined in subsection 107(1) of the Customs Act and, subject to any conditions that the agency may specify, a person so authorized is legally entitled to the information.