EDMONTON – Alberta’s canola producers have voted to support a controversial report that recommends the federal government sell its grain hopper cars to rail companies for $100 million.
“I’m still not sure whether this is the way to go. The cost will end up being transferred back to the farmer,” said Greg Porozni, of the Alberta Canola Producers Commission, who made the motion during the annual meeting.
Dave Lemke, an association director said: “I feel we should get on with this. If we fiddle faddle with it, it could end up being worse than the Crow and we could end up paying (more.)
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“Ownership is not an issue that is a striking process. The goal is to work with the allocation process. As a grower that is more important than who owns the cars,” said the Eckville, Alta., farmer.
Senior executive officers representing a cross-section of grain industry interests, put together a proposal recommending the federal government’s grain cars be sold to the railways for $100 million, which would mean an additional $1 a tonne charge to farmers on freight rates over the next five years. They also recommended the cars stay in service for western Canadian farmers.
The producers at the convention voted 23 to 6 in favor of the resolution.
Tom Jackson, a Sherwood Park producer, said he has problems with the $100 million price tag and the report. He said a discount price would have the same impact as a subsidy and encourage American operators to use Canada’s grain transportation system.
“Until we know what their report says, I don’t think anyone can dream of supporting it.”
