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FOR
IMMEDIATE RELEASE [Toronto]—During last week’s Private Members’ Public Business in the Legislative Assembly of Ontario, Ernie Hardeman, MPP Oxford and P.C. Critic to Agriculture and Food, put forward Bill 168, An Act to ensure fairness, to foster competition and consumer choice and to encourage innovation in the farm implement sector for second reading debate. The Bill was debated and carried to go to committee. Bill 168, the Farm Implements Amendment Act, 2005, by short title, follows the lead of the U.S. and the majority of the other provinces in Canada by removing dealer exclusivity in distributor contracts and thereby allowing dealers to sell farm machinery from any distributor or manufacturer. This bill will also protect dealers from contract termination without cause. Finally, with the passage of this legislation, distributors will be discouraged from imposing discriminatory contracts on individual dealers and small distributors that would not let them share warranty costs, parts supply and inventory responsibilities with larger manufacturers. “In 2003, when I introduced these changes to the Farm Implements Act under the Red Tape Reduction Act, it was because I had heard from many stakeholders across the province that the changes would encourage growth, entrepreneurship and innovation in rural Ontario,” said Hardeman. “Anything legislators can do to help agriculture should be on top of everyone’s agenda. The Minister of Agriculture and Food was supportive of this legislation in its previous form and since it has now been written to be even more effective than the original wording, I would think he will support it again.” Small and specialized equipment manufacturers, also known as shortliners, constitute a $240 million industry in rural Ontario, which is 80 percent dependent on dealers for marketing and distribution of their product. About 150 dealers, or 50 percent of the field equipment dealers in the province, sell the products of John Deere, CNH and AGCO Corporation and are affected by dealer purity policies. -30-
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