The federal government introduced its much-anticipated Fair Rail for Grain Farmers Act today.
Bill C-30 includes amendments to both the Canada Transportation Act and the Canada Grain Act that the government says will improve the entire grain transportation system.
The proposed amendments to the grain act would enable the regulation of mandatory grain contract provisions and give the Canadian Grain Commission the authority to regulate compensation paid by a grain company to a farmer if the delivery dates in a contract are not honoured. The CGC will be able to arbitrate or direct arbitration.
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B.C. ostrich owner condemns violence near embattled farm
One of the owners of Universal Ostrich near Edgewood, B.C. condemned the alleged assault and arson against one of the farm’s neighbours said to have been committed by a protestor. The farm is in a legal battle with federal authorities over a cull order of the farm’s ostriches, which contracted avian influenza.
Key provisions in the CTA amendments include authorizing the transport and agriculture ministers to set minimum volume requirements. Both CN and CP will be required to move a minimum 500,000 tonnes of grain each week between April 7 and Aug. 3 to address the current backlog.
The CTA will be responsible to recommend minimum volume levels to the transport minister as this year’s harvest becomes clearer. The recommendations will be based on information from stakeholders, including the railways. The legislation does not provide for corridor-specific movement.
CTA amendments will extend the interswitching distance from 30 kilometres to 160 km in the three prairie provinces for all commodities.
Senior government officials said that under the current system, only 14 primary elevators could pick up cars from a shipper and transfer them to another carrier. The changes means 150 elevators would be served by more than one railway.
The amendments did not make service level agreements mandatory but do give the CTA the authority to regulate prescribed elements in arbitrated SLAs.
A review of the CTA, scheduled to begin by June 2015, will begin sooner, the officials said.
