OTTAWA – Prairie farmland owners have until Sept. 15 to apply for a share of the $1.6 billion Crow Benefit buy-out, according to federal legislation introduced to Parliament.
Budget implementation legislation tabled by finance minister Paul Martin divides the money among those who owned farmland on the morning of Feb. 28.
While prairie farmers debate who should receive the money, and agriculture minister Ralph Goodale encourages farmers to believe distribution terms are up for negotiation, the legislation sets out detailed plans about who gets the money.
Farm groups likely will have a few weeks in April or May to appear before a parliamentary committee to make their case for changes to the bill.
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It is to be approved by Parliament by the end of June.
Under government plans for the end of the Crow Benefit rail freight subsidy, maximum tariff rates will apply for the next three years, until 1998-99.
The legislation sets the maximum tariff at a range between $14.35 per tonne on a trip of 325 miles (523 kilometres) or less to port, to $59.30 per tonne for a trip of more than 2,176 miles (3,503 kms) to port.
As part of the government’s deregulation plan, branchlines that had been guaranteed a life to the year 2000 will be reviewed and abandonment will be made easier.
Branchlines that could be viable short-line operations will be offered for sale. Otherwise, the railways will be able to abandon the lines with little delay, once a review committee has identified the lines least likely to be profitable in future.
The legislation identifies 2,880 miles (4,637 kms) of CN grain-dependent branchline and 3,221.6 miles (5,186.8 kms) of CP grain-dependent lines that will be reviewed by the committee.
It also requires that for every mile of branchline abandoned, $10,000 must be deducted from the railway’s cost base when determining the maximum freight rate for 1995-96.
