CP Rail says it’s ready for a fight to the finish.
Stunned by the news that the Canadian Wheat Board had negotiated a settlement in its level of service complaint against CN Rail, officials with CP said they will ask the Canadian Transportation Agency to dismiss the complaint against CP.
But failing that, they vowed to continue defending themselves against the board’s complaint that the railway failed to provide a reasonable level of service in the winter of 1996-97.
“We think we have a very strong case and we’re prepared to go forward if that is necessary,” said Rick Sallee, CP’s vice-president for agri-products. “We don’t believe that we’re guilty.”
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When the CTA hearings resume April 27, CP will ask that the board’s complaint be dismissed, arguing the unilateral secret settlement between the board and CN makes it impossible for CP to receive a fair hearing.
Sallee said there have never been any serious discussions with the board about a settlement, and declined to comment on whether CP is now interested in negotiating a deal.
“Our bottom line is for dismissal,” he said.
Wheat board commissioner Richard Klassen refused to say whether the board has approached or will approach CP about a deal, but left the door open.
“The board is always looking for other solutions than the CTA and as long as those solutions represent fair value for the costs incurred as a result of the 1996-97 shipping season, then we’re open to them,” he said. “Perhaps opportunities will present themselves.”
CP lawyer Paul Guthrie told the CTA panel that the unilateral, secret settlement is “extremely prejudicial” to CP and puts the railway in an untenable position.
A number of grain industry officials urged CP and the board to negotiate an end to their dispute, so the industry can focus its energies on the Estey review of the grain handling and transportation system.
“I would think there has got to be pressure on CP to also come to a similar conclusion, now that CN has,” said Manitoba Pool Elevators president Charlie Swanson. “It seems to make sense that if one of the railways felt it was in the best interests of all, that the other would also also feel the same way.”
The complaint was filed against both railways, the evidence presented by the board to date has been aimed at both railways, and the two railways have worked together in preparing their defence.
“CP and CN have stood shoulder to shoulder in their response to the complaint,” said Guthrie.
The railways were to present joint panels of experts to discuss issues like weather, avalanches and service to non-grain shippers and had jointly devised strategies for cross-examining wheat board witnesses.
In addition to asking for dismissal, CP wants access to the CN/CWB deal.
Guthrie questioned whether the complaint can legally continue without the contents of the deal being disclosed.
CN spokesperson Jim Feeny declined to say how the railway would respond to such a request.
“We’ll have to see exactly what it is they ask for before we know what we’re going to do,” he said. “It is a confidential agreement between us and the board.”
Sallee said it’s ironic the board has made much about the need for the CTA process to be open and public and that farmers be given access to as much information as possible, and then negotiates a secret deal.
