Food aid agencies like the Canadian Foodgrains Bank can now use 50 percent of their federal funding to purchase grain from developing countries. Prior regulations allowed only 10 per cent of these funds to be used for foreign grain. The announcement was heralded by CFBG executive director Jim Cornelius.
"This is a welcome change," said Cornelius in a statement. "There will still be a lot of instances when it will make good sense to purchase Canadian products, but in many of our projects we can serve our beneficiaries better if we purchase food in the region where they live. This allows us to support local markets, deliver the food quickly and save on expensive freight charges."
The long-awaited decision, which received Cabinet approval in September, is something CFGB had been encouraging for seven years. It argued that the old system limited the flexibility to help those in need and could actually harm those waiting for help.
The Record reported on this debate in February, when Canadian aid agencies were frustrated by the government's restrictions while trying to assist countries ravaged by the tsunami. Funds given by CFGB (of which the Presbyterian Church is a member) are matched at a ratio of 4:1 by the Canadian International Development Agency. Thanks to the new regulation, donations made by Presbyterians will have an even greater effect, enabling more of the matched funds to be used in a more efficient and economical way.
still lags behind Australia, which allows up to 67 per cent of food aid to be purchased locally, and the European Union which permits nearly unlimited purchase of local foods in specific situations. – AM with files from CFGB
