Government legislation to create a right for rail commodity shippers to demand a level-of-service agreement with railways that includes penalties for non-compliance was approved unanimously yesterday.
The legislation is strongly supported by prairie agricultural commodity shippers.
Opposition MPs used House of Commons debate to criticize the government for not making shipper protection stronger.
And the government, for a record 36th time, used its majority to cut off debate after fewer than 10 hours despite the fact that all opposition parties said they would support it but wanted to castigate the Conservatives for being slow in acting and then rejecting shipper proposals to strengthen their power in dealing with the railways.
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Still, when the vote was called in the Commons May 30, all MPs present voted for Bill C-52, the Fair Rail Freight Service Act.
It now goes to the Senate where final approval and proclamation into law is expected by June when Parliament rises for an 11-week break that will include a wrap-up of the current session, likely a cabinet shuffle and the launch of a new parliamentary session with a Throne Speech and a renewed government agenda in late September.
While shippers and the opposition argued that the bill does not go far enough to balance power between two national carriers and many shippers, government MPs and transport minister Denis Lebel said the bill was a compromise between the two sides.
Shippers wanted more and will make their arguments before the Senate but also said the bill as it stands is better than nothing. Railways appeared at Commons committee to argue the bill tries to fix a non-existent problem because rail service has been improving and the heavy hand of regulation is not needed.
Opposition MPs, by voting for the bill, agreed with the shippers that it is better than nothing.
For the first time, the legislation allows shippers facing rail service problems the right to apply for Canadian Transportation Agency arbitration to have a service agreement imposed as long as they have tried and failed to negotiate a commercial agreement with the railways.
If the railway fails to live up to the service level promised or imposed, fines of up to $100,000 for each infraction could be levied. The money would go to the government.
Any damage payments directly to the aggrieved shipper would have to come from a court judgment.
However, Lebel said he hopes the punitive side of the bill never has to be used when railways realize they have to meet service standards or face the consequences.
Rural Ontario MP, farmer and transport committee chair Larry Miller summed up the government position during the final May 30 debate that went past midnight.
“In agreements like this, not everyone gets everything he or she wants but I think everyone would have to admit we came out with a balanced bill,” he said.
